485BPOS 1 c49242e485bpos.txt FORM 485BPOS SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. _____________ [ ] Post-Effective Amendment No. 53 (File No. 333-79311) [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 54 (File No. 811-07355) [X] (Check appropriate box or boxes) RIVERSOURCE VARIABLE ACCOUNT 10 (previously IDS LIFE VARIABLE ACCOUNT 10) (Exact Name of Registrant) RiverSource Life Insurance Company (previously IDS Life Insurance Company) (Name of Depositor) 70100 Ameriprise Financial Center, Minneapolis, MN 55474 (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code (612) 671-2237 Dixie Carroll, 50605 Ameriprise Financial Center, Minneapolis, MN 55474 (Name and Address of Agent for Service) It is proposed that this filing will become effective (check appropriate box) [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [X] on May 1, 2009 pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [ ] on [date] pursuant to paragraph (a)(1) of Rule 485 If appropriate, check the following box: [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. PART A. PROSPECTUS MAY 1, 2009 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITY New RiverSource Retirement Advisor Variable Annuity contracts are not currently being offered. ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10 This prospectus contains information that you should know before investing. Prospectuses are also available for: - AIM Variable Insurance Funds - AllianceBernstein Variable Products Series Fund, Inc. - American Century Variable Portfolios, Inc. - Calvert Variable Series, Inc. - Columbia Funds Variable Insurance Trust - Credit Suisse Trust - Eaton Vance Variable Trust - Fidelity(R) Variable Insurance Products - Service Class - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - Goldman Sachs Variable Insurance Trust (VIT) - Janus Aspen Series: Service Shares - MFS(R) Variable Insurance Trust(SM) - Neuberger Berman Advisers Management Trust - Oppenheimer Variable Account Funds - Service Shares - PIMCO Variable Insurance Trust (VIT) - Putnam Variable Trust - Class IB Shares - RiverSource Variable Series Trust (RVST) - Royce Capital Fund - Third Avenue Variable Series Trust - The Universal Institutional Funds, Inc. Van Kampen Life Investment Trust - Wanger Advisors Trust - Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The contract provides for purchase payment credits which we may reverse under certain circumstances. Surrender charges from contracts with purchase payment credits may be higher than surrender charges for contracts without such credits. The amount of the credit may be more than offset by additional surrender charges associated with the credit. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). Variable annuities are insurance products that are complex investment vehicles. Be sure to ask your financial advisor about the variable annuity's features, benefits, risks and fees. This prospectus provides a general description of the contract. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contract other than those contained in this prospectus or the Fund prospectuses. Do not rely on any such information or representations. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 1 RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to annuity account values. The fees and charges may also be different between each annuity. TABLE OF CONTENTS KEY TERMS.................................... 3 THE CONTRACT IN BRIEF........................ 5 EXPENSE SUMMARY.............................. 6 CONDENSED FINANCIAL INFORMATION (UNAUDITED).. 11 FINANCIAL STATEMENTS......................... 11 THE VARIABLE ACCOUNT AND THE FUNDS........... 11 THE FIXED ACCOUNT............................ 21 BUYING YOUR CONTRACT......................... 21 CHARGES...................................... 23 VALUING YOUR INVESTMENT...................... 27 MAKING THE MOST OF YOUR CONTRACT............. 28 SURRENDERS................................... 36 TSA -- SPECIAL PROVISIONS.................... 36 CHANGING OWNERSHIP........................... 37 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT.................................... 38 OPTIONAL BENEFITS............................ 39 THE ANNUITY PAYOUT PERIOD.................... 43 TAXES........................................ 44 VOTING RIGHTS................................ 47 SUBSTITUTION OF INVESTMENTS.................. 48 ABOUT THE SERVICE PROVIDERS.................. 48 APPENDIX: CONDENSED FINANCIAL INFORMATION (UNAUDITED)................................ 50 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION........ 62
2 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BENEFICIARY: The person you designate to receive benefits in case of the owner's or annuitant's death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB): This is an optional benefit you can add to your contract for an additional charge. It is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. FIXED ACCOUNT: An account to which you may allocate purchase payments. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contract owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV): This is an optional benefit you can add to your contract for an additional charge that is intended to provide additional death benefit protection in the event of fluctuating fund values. OWNER (YOU, YOUR): The person or persons who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM): This is an optional asset allocation program in which you may elect to participate by adding the optional PN program rider for an additional charge. PURCHASE PAYMENT CREDITS: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - Individual Retirement Annuities (IRAs) under Section 408(b) of the Code - Roth IRAs under Section 408 A of the Code - SIMPLE IRAs under Section 408(p) of the Code RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 3 - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code - Plans under Section 401(k) of the Code - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RIDER: You receive a rider when you purchase the EEB, MAV and/or PN. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Consists of separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. 4 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS THE CONTRACT IN BRIEF PURPOSE: The purpose of the contract is to allow you to accumulate money for retirement or a similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the fixed account and/or subaccounts under the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payout of your contract value (less any applicable premium tax). TAX-DEFERRED RETIREMENT PLANS: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions (RMDs). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the potential tax implications to you. FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract. You will receive a full refund of the contract value, less the amount of any purchase payment credits. (See "Valuing Your Investment -- Purchase payment credits.") We will not deduct any other charges. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (Exception: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among any or all of: - the subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "Variable Account and the Funds") - the fixed account, which earns interest at a rate that we adjust periodically. Purchase payment allocations to the fixed account may be subject to special restrictions. (see "The Fixed Account") BUYING YOUR CONTRACT: We no longer offer new contracts. However, you have the option of making additional purchase payments in the future. (see "Buying Your Contract") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the accounts until annuity payouts begin, and once per contract year among the subaccounts after annuity payouts begin. You may establish automated transfers among the accounts. Fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (see "Surrenders") BENEFITS IN CASE OF DEATH: If you or the annuitant die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: This contract offers optional features that are available for additional charges if you meet certain criteria. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (see "The Annuity Payout Period") TAXES: Generally, income earned on your contract value grows tax-deferred until you surrender it or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. However, Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. (see "Taxes") RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 5 EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT ARE PAID WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU PAID AT THE TIME THAT YOU BOUGHT THE CONTRACT AND MAY PAY WHEN YOU SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE (Contingent deferred sales load as a percentage of purchase payment surrendered) The owner selects either a seven-year or ten-year surrender charge schedule at the time of application.*
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7 0 7 4 8 3 9 2 10 0
* The ten-year surrender charge schedule is not available for contracts issued in Oregon. For contracts issued in Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.")
ASSUMED INVESTMENT RATE 3.50% 5.00% Qualified annuity discount rate 4.72% 6.22% Nonqualified annuity discount rate 4.92% 6.42%
THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE $30
(We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) OPTIONAL RIDER FEES (As a percentage of the contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) MAV RIDER FEE 0.15% EEB RIDER FEE 0.30% PN RIDER FEE Maximum: 0.20% Current: 0.10%
6 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value.)
MORTALITY AND EXPENSE RISK FEE FOR NONQUALIFIED ANNUITIES 0.95% FOR QUALIFIED ANNUITIES 0.75%
ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2008, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE ACTUAL FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.55% 4.35%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Account and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AIM V.I. Capital Appreciation Fund, Series I 0.61% --% 0.30% 0.01% 0.92% Shares AIM V.I. Capital Development Fund, Series I 0.75 -- 0.36 0.01 1.12(1) Shares AIM V.I. Global Health Care Fund, Series II 0.75 0.25 0.38 0.01 1.39(2) Shares AIM V.I. International Growth Fund, Series II 0.71 0.25 0.35 0.02 1.33(2) Shares AllianceBernstein VPS Global Technology 0.75 0.25 0.18 -- 1.18 Portfolio (Class B) AllianceBernstein VPS Growth and Income 0.55 0.25 0.07 -- 0.87 Portfolio (Class B) AllianceBernstein VPS International Value 0.74 0.25 0.07 -- 1.06 Portfolio (Class B) American Century VP International, Class I 1.34 -- 0.01 -- 1.35 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class I 0.94 -- 0.01 -- 0.95 Calvert Variable Series, Inc. Social Balanced 0.70 -- 0.22 -- 0.92 Portfolio Columbia Marsico Growth Fund, Variable Series, 0.92 -- 0.04 -- 0.96 Class A Columbia Marsico International Opportunities 1.02 0.25 0.12 -- 1.39 Fund, Variable Series, Class B Credit Suisse Trust - Commodity Return Strategy 0.50 0.25 0.31 -- 1.06(3) Portfolio Credit Suisse Trust - U.S. Equity Flex III 0.70 -- 0.75 -- 1.45(3) Portfolio (previously Credit Suisse Trust - Mid-Cap Core Portfolio) Eaton Vance VT Floating-Rate Income Fund 0.58 0.25 0.37 -- 1.20 Evergreen VA International Equity Fund - Class 2 0.42 0.25 0.25 -- 0.92 Fidelity(R) VIP Contrafund(R) Portfolio Service 0.56 0.25 0.10 -- 0.91 Class 2 Fidelity(R) VIP Growth & Income Portfolio 0.46 0.10 0.13 -- 0.69 Service Class Fidelity(R) VIP Mid Cap Portfolio Service Class 0.56 0.10 0.12 -- 0.78 Fidelity(R) VIP Overseas Portfolio Service Class 0.71 0.10 0.16 -- 0.97 FTVIPT Franklin Global Real Estate Securities 0.80 0.25 0.30 -- 1.35(4) Fund - Class 2 FTVIPT Franklin Small Cap Value Securities 0.52 0.25 0.16 0.01 0.94(5) Fund - Class 2
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 7 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Goldman Sachs VIT Mid Cap Value 0.80% --% 0.04% --% 0.84% Fund - Institutional Shares Goldman Sachs VIT Structured Small Cap Equity 0.75 -- 0.31 -- 1.06(6) Fund - Institutional Shares Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(7) Fund - Institutional Shares Janus Aspen Series Enterprise Portfolio: Service 0.64 0.25 0.03 -- 0.92 Shares (previously Janus Aspen Series Mid Cap Growth Portfolio: Service Shares) Janus Aspen Series Global Technology Portfolio: 0.64 0.25 0.22 -- 1.11 Service Shares Janus Aspen Series Janus Portfolio: Service 0.64 0.25 0.02 0.01 0.92 Shares (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) Janus Aspen Series Overseas Portfolio: Service 0.64 0.25 0.05 -- 0.94 Shares (previously Janus Aspen Series International Growth Portfolio: Service Shares) MFS(R) Investors Growth Stock Series - Service 0.75 0.25 0.10 -- 1.10 Class MFS(R) New Discovery Series - Service Class 0.90 0.25 0.11 -- 1.26 MFS(R) Utilities Series - Service Class 0.72 0.25 0.09 -- 1.06 Neuberger Berman Advisers Management Trust 1.13 0.25 0.21 -- 1.59(8) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service 0.63 0.25 0.02 -- 0.90 Shares Oppenheimer Main Street Small Cap Fund/VA, 0.70 0.25 0.04 -- 0.99 Service Shares Oppenheimer Strategic Bond Fund/VA, Service 0.55 0.25 0.04 0.01 0.85(9) Shares PIMCO VIT All Asset Portfolio, Advisor Share 0.43 0.25 -- 0.76 1.44(10) Class Putnam VT Vista Fund - Class IB Shares 0.65 0.25 0.15 0.01 1.06 Royce Capital Fund - Micro-Cap Portfolio, 1.25 -- 0.07 -- 1.32 Investment Class RVST Disciplined Asset Allocation -- 0.25 0.89 0.69 1.83(11) Portfolios - Aggressive RVST Disciplined Asset Allocation -- 0.25 0.61 0.66 1.52(11) Portfolios - Conservative RVST Disciplined Asset Allocation -- 0.25 0.30 0.68 1.23(11) Portfolios - Moderate RVST Disciplined Asset Allocation -- 0.25 0.36 0.68 1.29(11) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation -- 0.25 0.50 0.67 1.42(11) Portfolios - Moderately Conservative RVST RiverSource Partners Variable 0.77 0.13 0.16 -- 1.06(12) Portfolio - Fundamental Value Fund RVST RiverSource Partners Variable 0.89 0.13 3.33 -- 4.35(12) Portfolio - Select Value Fund RVST RiverSource Partners Variable 0.95 0.13 0.19 0.05 1.32(12) Portfolio - Small Cap Value Fund RVST RiverSource Variable Portfolio - Balanced 0.42 0.13 0.16 -- 0.71 Fund RVST RiverSource Variable Portfolio - Cash 0.32 0.13 0.17 -- 0.62 Management Fund RVST RiverSource Variable 0.44 0.13 0.15 -- 0.72 Portfolio - Diversified Bond Fund RVST RiverSource Variable 0.59 0.13 0.14 -- 0.86 Portfolio - Diversified Equity Income Fund RVST RiverSource Variable Portfolio - Dynamic 0.44 0.13 0.15 0.02 0.74 Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) RVST RiverSource Variable Portfolio - Global 0.66 0.13 0.18 -- 0.97(12) Bond Fund RVST RiverSource Variable Portfolio - Global 0.44 0.13 0.17 -- 0.74(12) Inflation Protected Securities Fund RVST RiverSource Variable Portfolio - High Yield 0.59 0.13 0.17 -- 0.89 Bond Fund RVST RiverSource Variable Portfolio - Income 0.61 0.13 0.18 -- 0.92 Opportunities Fund RVST RiverSource Variable Portfolio - Mid Cap 0.58 0.13 0.17 -- 0.88(12) Growth Fund RVST RiverSource Variable Portfolio - Mid Cap 0.73 0.13 0.18 -- 1.04 Value Fund RVST RiverSource Variable Portfolio - S&P 500 0.22 0.13 0.19 0.01 0.55(12) Index Fund RVST RiverSource Variable Portfolio - Short 0.48 0.13 0.18 -- 0.79 Duration U.S. Government Fund RVST Seligman Variable Portfolio - Growth Fund 0.45 0.13 0.17 0.04 0.79 (previously RVST RiverSource Variable Portfolio - Growth Fund) RVST Seligman Variable Portfolio - Larger-Cap 0.48 0.13 0.67 -- 1.28(12) Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) RVST Seligman Variable Portfolio - Smaller-Cap 0.62 0.13 0.31 -- 1.06(12) Value Fund (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) RVST Threadneedle Variable Portfolio - Emerging 1.15 0.13 0.33 -- 1.61 Markets Fund
8 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES RVST Threadneedle Variable 0.82% 0.13% 0.20% --% 1.15% Portfolio - International Opportunity Fund Third Avenue Value Portfolio 0.90 -- 0.34 -- 1.24 Van Kampen Life Investment Trust Comstock 0.56 0.25 0.04 -- 0.85 Portfolio, Class II Shares Van Kampen UIF Global Real Estate Portfolio, 0.85 0.35 0.37 -- 1.57(13) Class II Shares Van Kampen UIF Mid Cap Growth Portfolio, Class 0.75 0.35 0.31 -- 1.41(13) II Shares Wanger International 0.84 -- 0.18 -- 1.02 Wanger USA 0.85 -- 0.11 -- 0.96 Wells Fargo Advantage VT Asset Allocation Fund 0.55 0.25 0.23 0.01 1.04(14) Wells Fargo Advantage VT International Core Fund 0.75 0.25 0.43 -- 1.43(14) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 -- 1.26(14)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series I shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.30%. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.11%. (2) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.45% of average daily net assets. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.38% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (3) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95% for Credit Suisse Trust - Commodity Return Strategy Portfolio and 1.34% for Credit Suisse Trust - U.S. Equity Flex III Portfolio. (4) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.03%. (5) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent of the Fund's fees and expenses of the acquired fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.93%. (6) The Investment Adviser has voluntarily agreed to waive a portion of its management fee equal to 0.02% of the Fund's average daily net assets. In addition, the Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.114% of the Fund's average daily net assets. The expense reductions may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. After fee waivers and expense reductions, net expenses would be 0.86%. (7) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. After expense reductions, net expenses would be 0.71%. (8) Neuberger Berman Management Inc. ("NBM") has undertaken through Dec. 31, 2012, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.53%. (9) The other expenses in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2008, the transfer agent fees did not exceed this expense limitation. In addition, for Oppenheimer Strategic Bond Fund/VA, Service Shares, the Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82%. (10) PIMCO has contractually agreed through Dec. 31, 2009, to reduce its advisory fee to the extent that the acquired fund fees and expenses attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.42%. (11) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 9 (12) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.99% for RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund, 1.14% for RVST RiverSource Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund, 0.96% for RVST RiverSource Variable Portfolio - Global Bond Fund, 0.74% for RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund, 1.00% for RVST RiverSource Variable Portfolio - Mid Cap Growth Fund, 0.53% for RVST RiverSource Variable Portfolio - S&P 500 Index Fund, 1.04% for RVST Seligman Variable Portfolio - Larger-Cap Value Fund and 1.12% for RVST Seligman Variable Portfolio - Smaller-Cap Value Fund. (13) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursements, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.15% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. The Adviser reserves the right to terminate any waivers and/or reimbursements at any time and without notice. (14) The adviser has contractually agreed through April 30, 2010 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After this time, the net operating expense ratio may be increased only with approval of the Board of Trustees. After fee waivers and expense reimbursements, net expenses would be 1.00% for Wells Fargo Advantage VT Asset Allocation Fund, 1.00% for Wells Fargo Advantage VT International Core Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE CONTRACT WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES*, VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expense of any of the funds. They assume that you select both the optional MAV, EEB and PN**. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA with a ten- year surrender charge schedule $1,415 $2,623 $3,704 $6,039 $615 $1,823 $3,004 $5,839 RAVA with a seven-year surrender charge schedule 1,315 2,523 3,504 5,839 615 1,823 3,004 5,839 QUALIFIED ANNUITY RAVA with a ten- year surrender charge schedule $1,394 $2,566 $3,616 $5,896 $594 $1,766 $2,916 $5,696 RAVA with a seven-year surrender charge schedule 1,294 2,466 3,416 5,696 594 1,766 2,916 5,696
MINIMUM EXPENSES. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA with a ten- year surrender charge schedule $959 $1,292 $1,549 $2,053 $159 $492 $849 $1,853 RAVA with a seven-year surrender charge schedule 859 1,192 1,349 1,853 159 492 849 1,853 QUALIFIED ANNUITY RAVA with a ten- year surrender charge schedule $938 $1,229 $1,442 $1,829 $138 $429 $742 $1,629 RAVA with a seven-year surrender charge schedule 838 1,129 1,242 1,629 138 429 742 1,629
* In these examples, the $30 contract administrative charge is approximated as a .047% charge. This percentage was determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to the contract by the total average net assets that are attributable to the contract. ** Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for the optional rider is reflected rather than the fee that is currently being charged. 10 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information of the subaccounts in the Appendix. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the subaccounts in the SAI. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contract currently offers subaccounts investing in shares of the funds listed in the table below. - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 11 expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract - Portfolio Navigator Asset Allocation Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including expense payments and non-cash compensation. The amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in 2008. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. 12 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 13 UNLESS AN ASSET ALLOCATION PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ----------------------------------------------------------------------------------------------- AIM V.I. Capital Seeks growth of capital. Invesco Aim Advisors, Appreciation Fund, Inc. adviser, advisory Series I Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ----------------------------------------------------------------------------------------------- AIM V.I. Capital Seeks long-term growth of capital. Invesco Aim Advisors, Development Fund, Series Inc. adviser, advisory I Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ----------------------------------------------------------------------------------------------- AIM V.I. Global Health Seeks capital growth. Invesco Aim Advisors, Care Fund, Series II Inc. adviser, advisory Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ----------------------------------------------------------------------------------------------- AIM V.I. International Seeks long-term growth of capital. Invesco Aim Advisors, Growth Fund, Series II Inc. adviser, advisory Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. -----------------------------------------------------------------------------------------------
14 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ----------------------------------------------------------------------------------------------- AllianceBernstein VPS Seeks long-term growth of capital. AllianceBernstein L.P. Global Technology Portfolio (Class B) ----------------------------------------------------------------------------------------------- AllianceBernstein VPS Seeks long-term growth of capital. AllianceBernstein L.P. Growth and Income Portfolio (Class B) ----------------------------------------------------------------------------------------------- AllianceBernstein VPS Seeks long-term growth of capital. AllianceBernstein L.P. International Value Portfolio (Class B) ----------------------------------------------------------------------------------------------- American Century VP Seeks capital growth. American Century Global International, Class I Investment Management, Inc. ----------------------------------------------------------------------------------------------- American Century VP Mid Seeks long-term capital growth. Income is a American Century Cap Value, Class II secondary objective. Investment Management, Inc. ----------------------------------------------------------------------------------------------- American Century VP Seeks long-term capital growth. American Century Ultra(R), Class II Investment Management, Inc. ----------------------------------------------------------------------------------------------- American Century VP Seeks long-term capital growth. Income is a American Century Value, Class I secondary objective. Investment Management, Inc. ----------------------------------------------------------------------------------------------- Calvert Variable Series, Seeks competitive total return through Calvert Asset Management Inc. Social Balanced actively managed portfolio of stocks, bonds Company, Inc., adviser. Portfolio and money market instruments which offer New Amsterdam Partners, income and capital growth opportunity and LLP, subadviser on which satisfy Portfolio's investment and equity portion; no social criteria. subadviser on fixed- income portion. ----------------------------------------------------------------------------------------------- Columbia Marsico Growth Seeks long-term growth of capital. Columbia Management Fund, Variable Series, Advisors, LLC, adviser; Class A Marsico Capital Management, LLC, sub- adviser. ----------------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management International Advisors, LLC, adviser; Opportunities Fund, Marsico Capital Variable Series, Class B Management, LLC, sub- adviser. ----------------------------------------------------------------------------------------------- Credit Suisse Seeks total return. Credit Suisse Asset Trust - Commodity Return Management, LLC Strategy Portfolio ----------------------------------------------------------------------------------------------- Credit Suisse Seeks long-term capital appreciation. Credit Suisse Asset Trust - U.S. Equity Flex Management, LLC III Portfolio (previously Credit Suisse Trust - Mid-Cap Core Portfolio) ----------------------------------------------------------------------------------------------- Eaton Vance VT Floating- Seeks high level of current income. Eaton Vance Management Rate Income Fund ----------------------------------------------------------------------------------------------- Evergreen VA Seeks long-term capital growth and Evergreen Investment International Equity secondarily, modest income. Management Company, LLC Fund - Class 2 ----------------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Portfolio Normally invests primarily in common Research Company (FMR), Service Class 2 stocks. Invests in securities of companies investment manager; FMR whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. -----------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 15
----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ----------------------------------------------------------------------------------------------- Fidelity(R) VIP Growth & Seeks high total return through a FMR, investment manager; Income Portfolio Service combination of current income and capital FMR U.K., FMR Far East, Class appreciation. Normally invests a majority sub-advisers. of assets in common stocks with a focus on those that pay current dividends and show potential for capital appreciation. Invests in domestic and foreign issuers. The Fund invests in either "growth" stocks or "value" stocks or both. ----------------------------------------------------------------------------------------------- Fidelity(R) VIP Mid Cap Seeks long-term growth of capital. Normally FMR, investment manager; Portfolio Service Class invests primarily in common stocks. FMR U.K., FMR Far East, Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. ----------------------------------------------------------------------------------------------- Fidelity(R) VIP Overseas Seeks long-term growth of capital. Normally FMR, investment manager; Portfolio Service Class invests primarily in common stocks FMR U.K., FMR Far East, allocating investments across different Fidelity International countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities. (FIIA) and FIIA U.K., sub-advisers. ----------------------------------------------------------------------------------------------- FTVIPT Franklin Global Seeks high total return. Franklin Templeton Real Estate Securities Institutional, LLC Fund - Class 2 ----------------------------------------------------------------------------------------------- FTVIPT Franklin Small Seeks long-term total return. Franklin Advisory Cap Value Securities Services, LLC Fund - Class 2 ----------------------------------------------------------------------------------------------- Goldman Sachs VIT Mid Seeks long-term capital appreciation. Goldman Sachs Asset Cap Value Management, L.P. Fund - Institutional Shares ----------------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital through a Goldman Sachs Asset Structured Small Cap broadly diversified portfolio of equity Management, L.P. Equity investments in U.S. issuers. Fund - Institutional Shares ----------------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. Equity dividend income. Management, L.P. Fund - Institutional Shares ----------------------------------------------------------------------------------------------- Janus Aspen Series Seeks long-term growth of capital. Janus Capital Management Enterprise Portfolio: LLC Service Shares (previously Janus Aspen Series Mid Cap Growth Portfolio: Service Shares) ----------------------------------------------------------------------------------------------- Janus Aspen Series Seeks long-term growth of capital. Janus Capital Management Global Technology LLC Portfolio: Service Shares ----------------------------------------------------------------------------------------------- Janus Aspen Series Janus Seeks long-term growth of capital in a Janus Capital Management Portfolio: Service manner consistent with the preservation of LLC Shares capital. (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) -----------------------------------------------------------------------------------------------
16 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ----------------------------------------------------------------------------------------------- Janus Aspen Series Seeks long-term growth of capital. Janus Capital Management Overseas Portfolio: LLC Service Shares (previously Janus Aspen Series International Growth Portfolio: Service Shares) ----------------------------------------------------------------------------------------------- MFS(R) Investors Growth Seeks capital appreciation. MFS Investment Stock Series - Service Management(R) Class ----------------------------------------------------------------------------------------------- MFS(R) New Discovery Seeks capital appreciation. MFS Investment Series - Service Class Management(R) ----------------------------------------------------------------------------------------------- MFS(R) Utilities Seeks total return. MFS Investment Series - Service Class Management(R) ----------------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers Management investing primarily in common stocks of Management Inc. Trust International foreign companies. Portfolio (Class S) ----------------------------------------------------------------------------------------------- Oppenheimer Global Seeks long-term capital appreciation. OppenheimerFunds, Inc. Securities Fund/VA, Service Shares ----------------------------------------------------------------------------------------------- Oppenheimer Main Street Seeks capital appreciation. OppenheimerFunds, Inc. Small Cap Fund/VA, Service Shares ----------------------------------------------------------------------------------------------- Oppenheimer Strategic Seeks high level of current income OppenheimerFunds, Inc. Bond Fund/VA, Service principally derived from interest on debt Shares securities. ----------------------------------------------------------------------------------------------- PIMCO VIT All Asset Seeks maximum real return consistent with Pacific Investment Portfolio, Advisor Share preservation of real capital and prudent Management Company LLC Class investment management period. ----------------------------------------------------------------------------------------------- Putnam VT Vista Seeks capital appreciation. Putnam Investment Fund - Class IB Shares Management, LLC ----------------------------------------------------------------------------------------------- Royce Capital Seeks long-term growth of capital. Royce & Associates, LLC Fund - Micro-Cap Portfolio, Investment Class ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with an aggressive level of LLC Portfolios - Aggressive risk. This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. -----------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 17
----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation Portfolios - consistent with a conservative level of LLC Conservative risk. This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a moderate level of risk. LLC Portfolios - Moderate This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a moderate aggressive level LLC Portfolios - Moderately of risk. This is a "fund of funds" and Aggressive seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ----------------------------------------------------------------------------------------------- RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a moderate conservative LLC Portfolios - Moderately level of risk. This is a "fund of funds" Conservative and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital growth. RiverSource Investments, Partners Variable LLC, adviser; Davis Portfolio - Fundamental Selected Advisers, L.P., Value Fund subadviser. ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Partners Variable LLC, adviser; Systematic Portfolio - Select Value Financial Management, Fund L.P. and WEDGE Capital Management L.L.P., sub- advisers. ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Partners Variable LLC, adviser; Barrow, Portfolio - Small Cap Hanley, Mewhinney & Value Fund Strauss, Inc., Denver Investment Advisors LLC, Donald Smith & Co., Inc., River Road Asset Management, LLC and Turner Investment Partners, Inc., subadvisers. ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum total investment return RiverSource Investments, Variable through a combination of capital growth and LLC Portfolio - Balanced current income. Fund -----------------------------------------------------------------------------------------------
18 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum current income consistent RiverSource Investments, Variable with liquidity and stability of principal. LLC Portfolio - Cash Management Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income while RiverSource Investments, Variable attempting to conserve the value of the LLC Portfolio - Diversified investment for the longest period of time. Bond Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and, as RiverSource Investments, Variable a secondary goal, steady growth of capital. LLC Portfolio - Diversified Equity Income Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks capital appreciation. RiverSource Investments, Variable LLC Portfolio - Dynamic Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) ----------------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks high total RiverSource Investments, Variable return through income and growth of LLC Portfolio - Global Bond capital. Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks total RiverSource Investments, Variable return that exceeds the rate of inflation LLC Portfolio - Global over the long-term. Inflation Protected Securities Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high current income, with capital RiverSource Investments, Variable growth as a secondary objective. LLC Portfolio - High Yield Bond Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high total return through current RiverSource Investments, Variable income and capital appreciation. LLC Portfolio - Income Opportunities Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks growth of capital. RiverSource Investments, Variable Portfolio - Mid LLC Cap Growth Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Variable Portfolio - Mid LLC Cap Value Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Variable Portfolio - S&P LLC 500 Index Fund ----------------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and RiverSource Investments, Variable safety of principal consistent with LLC Portfolio - Short investment in U.S. government and Duration U.S. Government government agency securities. Fund ----------------------------------------------------------------------------------------------- RVST Seligman Variable Seeks long-term capital growth. RiverSource Investments, Portfolio - Growth Fund LLC (previously RVST RiverSource Variable Portfolio - Growth Fund) -----------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 19
----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ----------------------------------------------------------------------------------------------- RVST Seligman Variable Seeks long-term growth of capital. RiverSource Investments, Portfolio - Larger-Cap LLC Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) ----------------------------------------------------------------------------------------------- RVST Seligman Variable Seeks long-term capital growth. RiverSource Investments, Portfolio - Smaller-Cap LLC, adviser; Kenwood Value Fund Capital Management LLC, sub-adviser. (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) ----------------------------------------------------------------------------------------------- RVST Threadneedle Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Portfolio - Emerging Threadneedle Markets Fund International Limited, an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ----------------------------------------------------------------------------------------------- RVST Threadneedle Seeks capital appreciation. RiverSource Investments, Variable Portfolio - LLC, adviser; International Threadneedle Opportunity Fund International Limited, an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ----------------------------------------------------------------------------------------------- Third Avenue Value Seeks long-term capital appreciation. Third Avenue Management Portfolio LLC ----------------------------------------------------------------------------------------------- Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust investments in equity securities, including Management Comstock Portfolio, common stocks, preferred stocks and Class II Shares securities convertible into common and preferred stocks. ----------------------------------------------------------------------------------------------- Van Kampen UIF Global Seeks current income and capital Morgan Stanley Real Estate Portfolio, appreciation. Investment Management Class II Shares Inc., doing business as Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. ----------------------------------------------------------------------------------------------- Van Kampen UIF Mid Cap Seeks long-term capital growth. Morgan Stanley Growth Portfolio, Class Investment Management II Shares Inc., doing business as Van Kampen. ----------------------------------------------------------------------------------------------- Wanger International Seeks long-term growth of capital. Columbia Wanger Asset Management, L.P. ----------------------------------------------------------------------------------------------- Wanger USA Seeks long-term capital appreciation. Columbia Wanger Asset Management, L.P. ----------------------------------------------------------------------------------------------- Wells Fargo Advantage VT Seeks long-term total return, consisting of Wells Fargo Funds Asset Allocation Fund capital appreciation and current income. Management, LLC, adviser; Wells Capital Management Incorporated, sub-adviser. -----------------------------------------------------------------------------------------------
20 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS
----------------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ----------------------------------------------------------------------------------------------- Wells Fargo Advantage VT Seeks long-term total return, consisting of Wells Fargo Funds International Core Fund capital appreciation and current income. Management, LLC, adviser; Wells Capital Management Incorporated, sub-adviser. ----------------------------------------------------------------------------------------------- Wells Fargo Advantage VT Seeks long-term total return, consisting of Wells Fargo Funds Small Cap Growth Fund capital appreciation and current income. Management, LLC, adviser; Wells Capital Management Incorporated, sub-adviser. -----------------------------------------------------------------------------------------------
THE FIXED ACCOUNT You also may allocate purchase payments and purchase payment credits or transfer contract value to the fixed account. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of the company. The value of the fixed account increases as we credit interest to the account. Purchase payments and transfers to the fixed account become part of our general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the fixed account is guaranteed for one year. Thereafter, we will change the rates from time to time at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and the RiverSource Life's revenues and expenses. Interests in the fixed account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract - Transfer policies" for restrictions on transfers involving the fixed account.) BUYING YOUR CONTRACT New contracts are not currently being offered. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can become an owner or an annuitant if you are 90 or younger. The contract provides for allocation of purchase payments and purchase payment credits to the subaccounts of the variable account and/or to the fixed account in tenth of a percent increments. We reserve the right to not accept purchase payments allocated to the fixed account for twelve months following: (1) a partial surrender from the fixed account; or (2) a lump sum from the fixed account to the subaccounts. We applied your initial purchase payment within two business days after we received it at our corporate office. However, we will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. When we processed your application, we established the settlement date as the maximum age (or contract anniversary if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities or you selected a date within the maximum limits. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - no earlier than the 60th day after the contract's effective date; and RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 21 - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75, or a date that has been otherwise agreed to by us. (In Pennsylvania, the maximum settlement date ranges from age 85 to 96 based on the annuitant's age when we issue the contract. See contract for details.) FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - for IRAs, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2; or - for all other qualified annuities, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2, or, if later, retires (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. (In Pennsylvania, the annuity payout ranges from age 85 to 96 based on the annuitant's age when the contract is issued. See contract for details.) Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs or TSAs, and in that case, may delay the annuity payout start date for this contract. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit to your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their completed claim. A beneficiary will bear the investment risk of the variable account until we receive the beneficiary's completed claim. If there is no named beneficiary, then the default provisions of your contract apply. (See "Benefits in Case of Death" for more about beneficiaries.) PURCHASE PAYMENTS MINIMUM ALLOWABLE PURCHASE PAYMENTS(1) If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month If paying by any other method: $50 (1) If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in New Jersey. MAXIMUM ALLOWABLE ANNUAL PURCHASE PAYMENTS(2) $100,000 for ages through 85 $50,000 for ages 86 to 90 (2) These limits to annual contributions apply in total to all RiverSource Life annuities you own. We reserve the right to increase maximum annual limits. For qualified annuities the tax-deferred retirement plan's or the Code's limits on annual contributions also apply. Except for TSAs, purchase payments are limited and may not be made after the third contract anniversary in Massachusetts, Washington and Oregon. We reserve the right to not accept purchase payments allocated to the fixed account for twelve months following either: 1. a partial surrender from the fixed account; or 2. a lump sum transfer from the fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 BY SCHEDULED PAYMENT PLAN We can help you set up: - an automatic payroll deduction, salary reduction or other group billing arrangement; or - a bank authorization. 22 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS PURCHASE PAYMENT CREDITS We add a credit to your contract in the amount of: - 1% of each purchase payment received: - if you elect the ten-year surrender charge schedule* for your contract; OR - if you elect the seven-year surrender charge schedule for your contract AND your initial purchase payment to the contract is at least $100,000. - 2% of each purchase payment received if you elect the ten-year surrender charge schedule* for your contract and your initial purchase payment to the contract is at least $100,000. We fund the credit from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief -- Free look period.") * The ten-year surrender charge is not available in Oregon. Contracts purchased in Oregon are only eligible for a 1% purchase payment credit if the initial purchase payment is at least $100,000. To the extent a death benefit or surrender payment includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a lump sum death benefit under this contract; or (2) a request for surrender charge waiver due to Nursing Home Confinement, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits**. Surrender charges under the contract may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated them. Because of higher charges, there could be circumstances where you may be worse off purchasing this contract with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full withdrawal in years five through ten. We pay for the credits primarily through revenue from a higher and longer withdrawal charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. ** For contracts purchased in Oregon, we will not assess a charge equal to the amount of the purchase payment credits upon payment of a death benefit or surrender. LIMITATIONS ON USE OF CONTRACT If mandated by applicable law, including but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values and satisfy other statutory obligations. Under these circumstances, we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or court of competent jurisdiction. CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. We deduct $30 from the contract value on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the fixed account in the same proportion your interest in each account bears to your total contract value. We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the charge at the time of surrender regardless of the contract value or purchase payments made. We cannot increase the annual contract administrative charge and it does not apply after annuity payouts begin or when we pay death benefits. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee. For nonqualified annuities the fee totals 0.95% of the average daily net assets on an annual basis. For qualified annuities the fee totals 0.75% of the RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 23 average daily net assets on an annual basis. This fee covers the mortality and expense risk that we assume. This fee does not apply to the fixed account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge, discussed in the following paragraphs, will cover sales and distribution expenses. MAV RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.15% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. EEB RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you chose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. (1) You may select either the MAV or EEB riders. Or you may select the MAV and the EEB. Riders may not be available in all states. The MAV and EEB are only available if you and the annuitant are 75 or younger at the rider effective date. PN RIDER FEE We charge a fee for this optional feature only if you select it. This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value less any excluded accounts. (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program). The fee will only be deducted from the subaccounts in Washington. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If we allow you to add the rider other than on a contract anniversary, we reserve the right to adjust the rider fee for the number of calendar days coverage was in place. If the rider terminates for any reason other than on a contract anniversary, we reserve the right to deduct this fee at that time and adjust it for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary, we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. 24 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. A surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven or ten years before surrender. You select the surrender charge period at the time of your application for the contract. The surrender charge percentages that apply to you are shown in your contract. You may surrender an amount during any contract year without a surrender charge. We call this amount the Total Free Amount (TFA). The TFA is defined as the greater of: - 10% of the contract value on the prior contract anniversary; or - current contract earnings. NOTE: We determine current contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, or the fixed account. Amounts surrendered in excess of the TFA may be subject to a surrender charge as described below. 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 3. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7 0 7 4 8 3 9 2 10 0
* The ten-year surrender charge schedule is not available in Oregon. For contracts issued in Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary. PARTIAL SURRENDERS For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. The surrender charge percentage is applied to this total amount. We pay you the amount you requested. EXAMPLE: Assume you requested a surrender of $1,000 and there is a surrender charge of 7%. The total amount we actually deduct from your contract is $1,075.27. We determine this amount as follows: AMOUNT REQUESTED $1,000 ------------------------- OR ------ = $1,075.27 1.00 - SURRENDER CHARGE .93
By applying the 7% surrender charge to $1,075.27, the surrender charge is $75.27. We pay you the $1,000 you requested. If you make a full surrender of your contract, we also will deduct the applicable contract administrative charge. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 25 SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate.
ASSUMED INVESTMENT RATE 3.50% 5.00% Qualified annuity discount rate 4.72% 6.22% Nonqualified annuity discount rate 4.92% 6.42%
SURRENDER CHARGE CALCULATION EXAMPLE The following is an example of the calculation we would make to determine the surrender charge on a contract that contains a seven-year surrender charge schedule with this history: - We received these payments: - $10,000 paid on the contract date; - $8,000 paid during the sixth contract year; - $6,000 paid during the eighth contract year; and - The owner surrenders the contract for its total contract value of $26,500 during the tenth contract year and had not made any other surrenders during that contract year; and - The contract value was $28,000 on the ninth contract anniversary.
SURRENDER CHARGE EXPLANATION $ 0 $2,500 is contract earnings surrendered without charge; and 0 $300 is 10% of the prior anniversary's contract value that is in excess of contract earnings surrendered without charge (from above). 10% of $28,000 = $2,800 - $2,500 = $300 0 $10,000 purchase payment was received eight or more years before surrender and is surrendered without surrender charge; and 480 $8,000 purchase payment is surrendered with a 6% surrender charge since there have been 3 completed years from date of purchase payment; and 420 $6,000 purchase payment is surrendered with a 7% surrender charge since there has been 1 completed year from date of purchase payment. ---- $900
WAIVER OF SURRENDER CHARGES We do not assess surrender charges for: - surrenders of any contract earnings; - surrenders of amounts totaling up to 10% of the contract value on the prior contract anniversary to the extent it exceeds contract earnings; - amounts surrendered after the tenth contract anniversary in Massachusetts, Washington and Oregon. - required minimum distributions from a qualified annuity provided the amount is not greater than the RMDs for the specific contract in force; - contracts settled using an annuity payout plan, unless an Annuity Payout Plan E is later surrendered; - amounts we refund to you during the free look period*; - death benefits*; and - surrenders you make under your contract's "Waiver of Surrender Charges for Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 at contract issue. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender if you provide proof satisfactory to us that, as of the date you request the surrender, you or the annuitant are confined to a nursing home and have been for the prior 90 days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Buying your contract -- Purchase payment credits.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). 26 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate the contract administrative and surrender charges. However, we expect this to occur infrequently. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectus for those funds. (See "Annual Operating Expenses of the Funds.") PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. VALUING YOUR INVESTMENT We value your accounts as follows: FIXED ACCOUNT We value the amounts allocated to the fixed account directly in dollars. The fixed account value equals: - the sum of your purchase payments and purchase payment credits and transfer amounts allocated to the fixed account; - plus interest credited; - minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out, - minus any prorated portion of the contract administrative charge; - minus any prorated portion of the MAV rider fee (if selected); - minus any prorated portion of the EEB rider fee (if selected); and - minus any prorated portion of the PN rider fee (if selected). SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payments credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount or we assess a contract administrative charge, surrender charge or fee for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - dividing that sum by the previous adjusted net asset value per share; and - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - additional purchase payments you allocate to the subaccounts; - any purchase payment credits allocated to the subaccounts; - transfers into or out of the subaccounts; RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 27 - partial surrenders; - surrender charges; and a deduction of: - a prorated portion of the contract administrative charge; - a prorated portion of the MAV rider fee (if selected); - a prorated portion of the EEB rider fee (if selected); and/or - a prorated portion of the PN rider fee (if selected). Accumulation unit values will fluctuate due to: - changes in fund net asset value; - fund dividends distributed to the subaccounts; - fund capital gains or losses; - fund operating expenses; and/or - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the fixed account to one or more subaccounts. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. You may not set up an automated transfer if the PN is selected. The potential effect is to lower your average cost per unit. HOW DOLLAR-COST AVERAGING WORKS
By investing an equal number of NUMBER dollars each AMOUNT ACCUMULATION OF UNITS month ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy (ARROW) Mar 100 17 5.88 more units when the Apr 100 15 6.67 per unit market price is low ... May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units (ARROW) Aug 100 19 5.26 when the per unit Sept 100 21 4.76 market price is high ... Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features contact your financial advisor. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts ) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semiannually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in 28 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS numbers no more than one digit past the decimal. Asset rebalancing does not apply to the fixed account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. Different rules apply to asset rebalancing under the Portfolio Navigator Program, (See "Portfolio Navigator Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You may elect to participate in the PN program at any time for an additional charge (see "Charges"). You may cancel your participation in the PN program at any time by giving us written notice. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. You should review any PN program information, including the terms of the PN program, carefully. Your financial advisor can provide you with additional information and can answer questions you may have on the PN program. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investment's role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 29 portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflict of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. POTENTIAL CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. As an affiliate of RiverSource Investments, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Portfolio Funds. In this role RiverSource Investments may, from time to time, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from the fixed account than from other allocation options. We therefore may have an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. Your financial advisor can help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts and/or the fixed account that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Dollar-cost averaging arrangements (DCA) are currently not allowed while you are participating in the PN program. If we choose to allow for DCA arrangements, we will designate one or more subaccounts as "excluded accounts" which are not part of a model portfolio. If an account has been designated as an excluded account and you set up a DCA arrangement, we will 30 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS make monthly transfers in accordance with your instructions from the excluded account into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value according to the updated model portfolio. If you do not want your contract value to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - limit your choice of models based on the amount of your initial purchase payment we accept; - substitute a fund of funds for your current model portfolio if permitted under applicable securities law; and - discontinue the PN program. We will give you 30 days' written notice of any such change. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing or periodic updating of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 31 TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model is in effect. You may transfer contract value from any one subaccount, or the fixed account, to another subaccount before annuity payouts begin. Certain restrictions apply to transfers involving the fixed account. When your request to transfer will be processed depends on when we receive it: - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Subject to state regulatory requirements, we may suspend or modify transfer privileges at any time. For information on transfers after annuity payouts begin, see "Transfer policies" below. TRANSFER POLICIES - Before annuity payouts begin, you may transfer contract values between the subaccounts. You may also transfer contract values from the subaccounts to the fixed account. However, if you made a transfer from the fixed account to the subaccounts, you may not make a transfer from any subaccount back to the fixed account until the next contract anniversary. - You may transfer contract values from the fixed account to the subaccounts once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). - If we receive your request within 30 days before the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the anniversary. - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the valuation date we receive it. - We will not accept requests for transfers from the fixed account at any other time. - Once annuity payouts begin, you may not make transfers to or from the fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT INVEST IN THIS CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - diluting the value of an investment in an underlying fund in which a subaccount invests; - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and, - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. 32 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer requests, if, in our sole judgment, the dollar amount of the transfer request would adversely affect unit values. If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - requiring transfer requests to be submitted only by first-class U.S. mail; - not accepting hand-delivered transfer requests or requests made by overnight mail; - not accepting telephone or electronic transfer requests; - requiring a minimum time period between each transfer; - not accepting transfer requests of an agent acting under power of attorney; - limiting the dollar amount that you may transfer at any one time; - suspending the transfer privilege; or - modifying instructions under an automated transfer program to exclude a restricted fund if you do not provide new instructions. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable account are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 33 - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. 34 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS HOW TO REQUEST A TRANSFER OR SURRENDER 1BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers among your subaccounts or fixed account or partial surrenders from the accounts. You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - Automated transfers from the fixed account to any one of the subaccounts may not exceed an amount that, if continued, would deplete the fixed account within 12 months. - Automated surrenders may be restricted by applicable law under some contracts. - You may not make additional purchase payments if automated partial surrenders are in effect. - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - If a PN program is in effect, you are not allowed to set up automated transfers. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the fixed account) 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and tape recording calls. We will not allow a telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 35 Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request in good order at our corporate office before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, surrender charges, or any applicable optional rider charges (see "Charges"), and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the fixed account in the same proportion as your value in each account correlates to your total contract value, unless you request otherwise. The minimum contract value after partial surrender is $600. RECEIVING PAYMENT 1BY REGULAR OR EXPRESS MAIL - payable to you; - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 2 BY WIRE - request that payment be wired to your bank; - bank account must be in the same ownership as your contract; and - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: - the surrender amount includes a purchase payment check that has not cleared; - the NYSE is closed, except for normal holiday and weekend closings; - trading on the NYSE is restricted, according to SEC rules; - an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or - the SEC permits us to delay payment for the protection of security holders. TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations 36 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS thereunder, unless we have a prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: - you are at least age 59 1/2; - you are disabled as defined in the Code; - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - effective Jan. 1, 2009, the distribution is due to plan termination; or - effective Jan. 1, 2009, you are a military reservist. - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. The change will become binding on us when we receive and record it. We will honor any change of ownership request received in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the MAV or EEB. The terms of the EEB and the MAV will change due to a change of ownership. If either the new owner or the annuitant is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over". We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If either the new owner or the annuitant is older than age 75, the MAV will terminate. If the MAV on the date of ownership change is greater than the account value on the date of the ownership change, we will set the MAV equal to the account value. Otherwise, the MAV value will not change due to a change in ownership. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in a similar capacity, ownership of the contract may be transferred to the annuitant. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 37 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon the earlier of your death or the annuitant's death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner or the annuitant. If you or the annuitant die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If both you and the annuitant are age 80 or younger on the date of death, the beneficiary receives the greatest of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; - purchase payments minus adjusted partial surrenders; or - the contract value as of the most recent sixth contract anniversary, preceding the date of death, plus any purchase payments since that anniversary, minus adjusted partial surrenders since that anniversary. If either you or the annuitant are age 81 or older on the date of death, the beneficiary receives the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. PS X DB -------- ADJUSTED PARTIAL SURRENDERS = CV
PS = the amount by which the contract value is reduced as a result of the partial surrender. DB = is the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU AND THE ANNUITANT ARE AGE 80 OR YOUNGER: - You purchase the contract with a payment of $20,000. - On the sixth contract anniversary the contract value grows to $30,000. - During the seventh contract year the contract value falls to $28,000 at which point you take a $1,500 partial surrender, leaving a contract value of $26,500. We calculate the death benefit as follows: The contract value on the most recent sixth contract anniversary: $30,000.00 plus purchase payments made since that anniversary: +0.00 minus adjusted partial surrenders taken since that anniversary calculated as: $1,500 x $30,000 $28,000 -1,607.14 ---------- for a death benefit of: $28,392.86
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date our death claim requirements are fulfilled. We will determine the contract's value using the next accumulation unit value we calculate on that valuation date. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If you elected any optional contract features and riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - the payout period does not extend beyond the beneficiary's life or life expectancy. QUALIFIED ANNUITIES - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own with the contract value equal to the death benefit that would otherwise 38 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS have been paid or elect an annuity payout plan or another plan agreed to by us. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. If you elected any optional contract features and riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC unless the beneficiary fails to meet the requirements of using this option. OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits and optional living benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you or the annuitant is older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to fixed account values during the time you have amounts allocated to the fixed account. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If both you and the annuitant are age 75 or younger at the rider effective date, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract. We will determine the rider effective date for the MAV added after we issue the contract according to terms determined by us and at our sole discretion. On the first contract anniversary after the rider effective date, we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value if the current contract value is higher. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value less any purchase payment credits, subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders; or - the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 39 TERMINATING THE MAV - You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. EXAMPLE - You add the MAV when your contract value is $20,000. - On the first contract anniversary after the rider effective date the contract value grows to $24,000. - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. We calculate the death benefit as follows: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $ 24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: ($1,500 x $24,000) ------------------ = -1,636 $22,000 -------- for a death benefit of: $ 22,364
IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to keep the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse at the time he or she elects to continue the contract has not yet reached age 76, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides reduced benefits if you or the annuitant is age 70 or older at the rider effective date and it does not provide any additional benefit before the first contract anniversary after the rider effective date. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor whether or not the EEB is appropriate for your situation. If both you and the annuitant are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract. We will determine the rider effective date for the EEB added after we issue the contract according to terms determined by us and at our sole discretion. The EEB provides that if you or the annuitant dies after the first contract anniversary after the rider effective date, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit") or the MAV death benefit amount, if applicable, PLUS - 40% of your earnings at death if you and the annuitant were under age 70 on the rider effective date; or - 15% of your earnings at death if you or the annuitant were age 70 or older on the rider effective date. 40 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB: If the rider effective date for the EEB is the contract issue date, earnings at death is an amount equal to: - the standard death benefit amount or the MAV death benefit amount, if applicable (the "death benefit amount") - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount - MINUS the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date. - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since the rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. EXAMPLE OF THE EEB - You purchased the contract with a purchase payment of $100,000. You add the EEB rider when your contract value is $100,000 and both you and the annuitant are under age 70. You selected the seven-year surrender charge schedule, the MAV and the EEB. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value, or $105,000. You have not reached the first contract anniversary after the rider effective date so the EEB does not provide any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 5% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 41 your prior anniversary's contract value). The remainder of the surrender is subject to a 5% surrender charge because your purchase payment is four years old, so we will surrender $39,500 ($37,525 + $1,975 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $48,025. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 x $110,000) = $105,000$ $57,619 plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58.667. The reduction in contract value has no effect. - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) .40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000
- During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,000. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB (40% of earnings at death, up to a maximum of 100% of purchase payments not previously surrendered that are one or more years old) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000
- During the eleventh contract year the contract value remains $250,000 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,000 - $105,000) = +58,000 -------- Total death benefit of: $308,000
IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If the spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract then he or she may choose to continue the EEB. In this case, the following conditions will apply: - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." 42 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date (less any applicable premium tax). During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - the annuity payout plan you select; - the annuitant's age and, in most cases, sex; - the annuity table in the contract; and - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to the age and, when applicable, the sex of the annuitant. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate Table A results in a higher initial payment, but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan: - PLAN A -- LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only one monthly payout, we will not make any more payouts. - PLAN B -- LIFE ANNUITY WITH FIVE, TEN OR 15 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten or 15 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - PLAN C -- LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. - PLAN D -- JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving annuitant. Payouts end with the death of the second annuitant. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 43 - PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that an annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the payout that would have been made 7 days prior to the date we determine the present value. For qualified annuities, the discount rate we use in the calculation will be either 4.72% or 6.22%, depending on the applicable assumed investment rate. For nonqualified annuities, the discount rate we use in the calculation will vary between 4.92% and 6.42%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take a surrender. (See "Taxes.") ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or - in equal or substantially equal payments over a period not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary; or - over a period certain not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary. IF WE DO NOT RECEIVE INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the annuitant's settlement date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. Contract values that you allocated to the fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you or the annuitant die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay federal income tax until there is a distribution (or deemed distribution) from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. ANNUITY PAYOUTS: Generally, unlike surrenders, the taxation of annuity payouts are subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. 44 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - because of your death or in the event of nonnatural ownership, the death of the annuitant; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if it is allocable to an investment before Aug. 14, 1982; or - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies and annuity contracts, while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment or annuity contract, (2) the exchange of an endowment contract for an annuity contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract exchanged, (3) the exchange of an annuity contract for another annuity contract. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. For exchanges after 2009, a life insurance policy, annuity or endowment contract or a qualified long-term care insurance contract may be exchanged for a qualified long-term care insurance contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. (If certain life events occur between the date of the partial exchange and the RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 45 date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed to you like a surrender and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for Roth IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - the payout is a RMD as defined under the Code; 46 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS - the payout is made on account of an eligible hardship; or - the payout is a corrective distribution. State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - because of your death; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); or - to pay certain medical or education expenses (IRAs only). DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER PURCHASE PAYMENT CREDITS: These are considered earnings and are taxed accordingly when surrendered or paid out. SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 47 - the reserve held in each subaccount for your contract; divided by - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - laws or regulations change; - the existing funds become unavailable; or - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - add new subaccounts; - combine any two or more subaccounts; - transfer assets to and from the subaccounts or the variable account; and - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio -- Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. ("RiverSource Distributors"), our affiliate, serves as the principal underwriter of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. Although we no longer offer the contract for sale, you may continue to make purchase payments if permitted under the terms of your contract. We pay commissions to an affiliated selling firm of up to 5.75% of purchase payments on the contract as well as service/trail commissions of up to 0.25% based on annual total contract value for as long as the contract remains in effect. We also may pay a temporary additional sales commission of up to 1.00% of purchase payments for a period of time we select. These commissions do not change depending on which subaccounts you choose to allocate your purchase payments. From time to time and in accordance with applicable laws and regulations, we may also pay or provide the selling firm with various cash and non-cash promotional incentives including, but not limited to bonuses, short-term sales incentive payments, marketing allowances, costs associated with sales conferences and educational seminars and sales recognition awards. A portion of the payments made to the selling firm may be passed on to its financial advisors in accordance with its internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your financial advisor for further information about what your financial advisor and the selling firm for which he or she works may receive in connection with your contract. We pay the commissions and other compensation described above from our assets. Our assets include: 48 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- the funds"); - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The funds"); and - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part of all of the commissions and other compensation described above indirectly through: - fees and expenses we collect from contract owners, including surrender charges; and - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 49 APPENDIX: CONDENSED FINANCIAL INFORMATION (Unaudited) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each price level is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2008. VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT.
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.03 $0.98 $0.90 $0.85 $0.66 $0.88 $1.16 $1.31 $1.00 Accumulation unit value at end of period $0.65 $1.15 $1.03 $0.98 $0.90 $0.85 $0.66 $0.88 $1.16 $1.31 Number of accumulation units outstanding at end of period (000 omitted) 21,777 30,209 38,671 42,185 44,154 44,599 46,932 49,574 37,379 4,337 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $2.08 $1.89 $1.64 $1.50 $1.31 $0.98 $1.25 $1.37 $1.26 $1.00 Accumulation unit value at end of period $1.09 $2.08 $1.89 $1.64 $1.50 $1.31 $0.98 $1.25 $1.37 $1.26 Number of accumulation units outstanding at end of period (000 omitted) 8,210 11,683 13,834 16,329 18,834 19,915 21,745 23,324 16,977 1,678 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,014 5,881 33,923 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES* (11/01/2005) Accumulation unit value at beginning of period $1.57 $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.57 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 99,290 48,018 1,744 127 -- -- -- -- -- -- *Effective Feb. 13, 2009, Putnam VT International New Opportunities Fund - Class IB Shares was substituted with AIM V.I. International Growth Fund, Series II Shares. ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,750 4,111 14,120 2,021 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.80 $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 84,420 116,725 135,093 149,316 125,010 82,114 43,189 5,550 -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (08/13/2001) Accumulation unit value at beginning of period $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.23 $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 202,780 217,241 203,016 153,107 70,504 34,604 12,313 805 -- -- *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS I (09/15/1999) Accumulation unit value at beginning of period $1.52 $1.30 $1.04 $0.93 $0.81 $0.66 $0.83 $1.19 $1.44 $1.00 Accumulation unit value at end of period $0.83 $1.52 $1.30 $1.04 $0.93 $0.81 $0.66 $0.83 $1.19 $1.44 Number of accumulation units outstanding at end of period (000 omitted) 16,842 22,009 24,450 28,073 28,284 27,256 26,878 25,459 15,533 1,791 ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 54,402 56,815 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,809 13,321 78,916 10,074 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS I* (09/15/1999) Accumulation unit value at beginning of period $1.76 $1.87 $1.59 $1.52 $1.34 $1.05 $1.21 $1.08 $0.92 $1.00 Accumulation unit value at end of period $1.28 $1.76 $1.87 $1.59 $1.52 $1.34 $1.05 $1.21 $1.08 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 28,576 41,125 47,446 53,724 50,678 46,232 43,222 35,248 14,536 3,657 *Effective Feb. 13, 2009, American Century VP Value, Class I was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. -----------------------------------------------------------------------------------------------------------------------------------
50 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.78 $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 18,431 21,893 24,975 23,850 20,551 15,315 9,520 4,490 1,283 -- ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.72 $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 310,527 204,077 121,798 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.27 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.65 $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 41,006 32,112 59,299 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.74 $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,400 17,045 51,380 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - U.S. EQUITY FLEX III PORTFOLIO (09/21/1999) (PREVIOUSLY CREDIT SUISSE TRUST - MID-CAP CORE PORTFOLIO) Accumulation unit value at beginning of period $1.43 $1.29 $1.27 $1.20 $1.07 $0.75 $1.07 $1.29 $1.32 $1.00 Accumulation unit value at end of period $0.87 $1.43 $1.29 $1.27 $1.20 $1.07 $0.75 $1.07 $1.29 $1.32 Number of accumulation units outstanding at end of period (000 omitted) 6,134 7,945 9,789 12,277 14,837 16,665 17,821 20,158 17,825 1,838 ----------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 119,741 111,086 103,830 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 398,515 294,643 244,121 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.15 $1.03 $0.96 $0.92 $0.75 $0.90 $1.00 $1.05 $1.00 Accumulation unit value at end of period $0.74 $1.28 $1.15 $1.03 $0.96 $0.92 $0.75 $0.90 $1.00 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 58,690 78,090 92,368 107,380 122,387 119,334 108,027 103,719 63,414 15,603 ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $3.61 $3.15 $2.82 $2.41 $1.94 $1.41 $1.58 $1.65 $1.24 $1.00 Accumulation unit value at end of period $2.17 $3.61 $3.15 $2.82 $2.41 $1.94 $1.41 $1.58 $1.65 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 44,234 56,323 67,426 72,759 73,206 67,863 63,268 59,393 38,193 5,709 ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.57 $1.35 $1.15 $0.97 $0.86 $0.61 $0.77 $0.98 $1.23 $1.00 Accumulation unit value at end of period $0.87 $1.57 $1.35 $1.15 $0.97 $0.86 $0.61 $0.77 $0.98 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 25,280 33,656 38,789 40,988 42,151 31,628 28,991 27,850 18,802 3,421 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 $1.00 Accumulation unit value at end of period $1.45 $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 62,873 93,100 128,540 139,618 120,456 87,330 59,317 24,477 6,879 885 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 $1.00 Accumulation unit value at end of period $1.58 $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 52,033 66,946 78,886 78,073 59,293 43,978 29,743 10,800 2,846 586 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMPLETON FOREIGN SECURITIES FUND - CLASS 2* (03/01/2002) Accumulation unit value at beginning of period $1.96 $1.71 $1.42 $1.30 $1.10 $0.84 $1.00 -- -- -- Accumulation unit value at end of period $1.16 $1.96 $1.71 $1.42 $1.30 $1.10 $0.84 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,600 12,350 14,587 17,595 15,352 11,165 8,386 -- -- -- *Effective Feb. 13, 2009, FTVIPT Templeton Foreign Securities Fund - Class 2 was substituted with Evergreen VA International Equity Fund - Class 2. -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 51 VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $1.71 $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 97,291 139,637 163,687 174,918 115,616 83,015 56,079 23,748 7,622 1,634 ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED SMALL CAP EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.63 $1.97 $1.76 $1.68 $1.45 $1.00 $1.19 $1.14 $1.13 $1.00 Accumulation unit value at end of period $1.07 $1.63 $1.97 $1.76 $1.68 $1.45 $1.00 $1.19 $1.14 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 4,574 6,389 8,977 10,823 12,173 13,511 14,285 14,153 10,252 1,876 ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.71 $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 131,282 187,585 231,223 248,935 128,074 83,166 71,820 60,343 42,626 8,981 ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES ENTERPRISE PORTFOLIO: SERVICE SHARES (05/01/2000) (PREVIOUSLY JANUS ASPEN SERIES MID CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $0.73 $0.60 $0.54 $0.48 $0.40 $0.30 $0.42 $0.70 $1.00 -- Accumulation unit value at end of period $0.41 $0.73 $0.60 $0.54 $0.48 $0.40 $0.30 $0.42 $0.70 -- Number of accumulation units outstanding at end of period (000 omitted) 23,257 27,632 29,699 34,555 40,872 48,862 52,428 54,805 29,626 -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.52 $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 $1.00 -- Accumulation unit value at end of period $0.29 $0.52 $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 -- Number of accumulation units outstanding at end of period (000 omitted) 23,828 28,860 30,606 32,606 37,258 40,520 37,200 34,767 20,288 -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 238,472 154,650 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) (PREVIOUSLY JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.71 $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $0.81 $1.71 $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 -- Number of accumulation units outstanding at end of period (000 omitted) 69,375 80,158 77,239 72,832 75,760 81,742 81,189 60,527 25,763 -- ----------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.86 $1.37 $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 49,466 69,884 86,802 101,054 90,221 62,349 29,532 15,860 7,958 1,981 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $0.48 $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 63,755 80,158 100,533 117,493 108,239 91,666 69,576 50,212 19,521 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.61 $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 32,039 42,261 51,188 62,995 77,406 74,690 59,272 34,072 12,308 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $1.39 $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 67,989 78,212 71,164 55,870 28,362 18,051 10,543 2,997 -- -- ----------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.57 $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 78,811 64,614 57,067 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.60 $1.52 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.95 $1.60 $1.52 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 36,705 48,173 51,514 33,811 11,540 -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------------------
52 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.40 $1.43 $1.26 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.86 $1.40 $1.43 $1.26 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,205 34,265 34,462 18,592 7,652 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.26 $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.26 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 569,070 536,032 339,587 150,945 22,945 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 228,912 161,214 154,199 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND - CLASS IB SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.22 $0.98 $0.83 $0.74 $0.56 $0.65 $0.92 $1.51 $1.00 Accumulation unit value at end of period $0.78 $1.37 $1.22 $0.98 $0.83 $0.74 $0.56 $0.65 $0.92 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 26,133 34,921 40,790 47,078 55,071 64,872 72,395 78,901 62,964 6,079 *Effective Feb. 13, 2009, Putnam VT International New Opportunities Fund - Class IB Shares was substituted with AIM V.I. International Growth Fund, Series II Shares. ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.59 $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 25,511 33,551 42,808 49,747 57,095 67,224 72,033 74,819 49,764 5,084 ----------------------------------------------------------------------------------------------------------------------------------- ROYCE CAPITAL FUND - MICRO-CAP PORTFOLIO, INVESTMENT CLASS (09/15/1999) Accumulation unit value at beginning of period $3.47 $3.36 $2.80 $2.53 $2.24 $1.51 $1.75 $1.36 $1.15 $1.00 Accumulation unit value at end of period $1.95 $3.47 $3.36 $2.80 $2.53 $2.24 $1.51 $1.75 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 12,388 16,842 20,156 22,799 26,803 26,590 25,593 20,056 8,005 1,228 ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,188 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,487 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,617 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.74 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,958 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,805 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.12 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 183,635 117,605 123,150 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.36 $1.29 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.36 $1.29 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,409 9,188 9,786 10,247 4,730 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) Accumulation unit value at beginning of period $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.22 $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 156,845 148,793 126,637 127,559 90,541 67,609 43,199 6,885 -- -- -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 53 VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.86 $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 61,707 86,628 89,309 92,705 84,704 79,035 64,273 37,760 28,348 5,220 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.22 $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 399,214 286,121 258,492 193,996 187,100 203,753 255,251 243,870 171,785 65,522 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were 0.14% and 0.14%, respectively. ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.30 $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 610,707 599,680 511,100 332,677 221,377 188,939 154,530 83,968 30,783 7,186 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND* (09/15/1999) Accumulation unit value at beginning of period $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.15 $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 530,216 560,416 585,144 408,559 255,776 134,486 86,442 43,328 12,124 3,149 *Effective Feb. 13, 2009, American Century VP Value, Class I was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.56 $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 301,682 383,078 450,207 263,828 130,790 69,981 52,124 26,327 24,003 5,333 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.52 $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 201,728 204,316 169,931 130,135 82,347 51,936 31,133 16,572 8,968 1,552 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.13 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 171,393 147,400 161,490 91,038 2,274 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.03 $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 147,297 218,538 251,768 262,154 242,254 177,150 93,845 58,348 31,722 7,774 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.16 $1.14 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.94 $1.16 $1.14 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 128,653 116,516 109,316 29,477 1,052 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 $1.00 -- -- Accumulation unit value at end of period $0.75 $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,730 50,337 62,826 47,283 53,376 42,780 16,388 2,489 -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.49 $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.49 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,989 71,709 101,239 6,605 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $0.65 $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 100,420 127,010 139,008 154,949 144,039 103,587 64,771 35,957 9,812 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.27 $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 125,698 120,018 125,729 145,087 160,725 155,718 124,866 50,510 16,258 11,135 -----------------------------------------------------------------------------------------------------------------------------------
54 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 $1.00 Accumulation unit value at end of period $0.41 $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 180,650 283,769 326,108 323,849 191,140 192,314 135,693 129,186 97,754 16,891 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.33 $1.34 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.33 $1.34 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,696 7,988 7,937 6,232 3,498 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.03 $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 26,621 38,095 49,721 59,243 61,563 44,627 29,202 22,792 14,830 2,970 ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) Accumulation unit value at beginning of period $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $1.29 $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 -- Number of accumulation units outstanding at end of period (000 omitted) 111,551 89,546 89,672 75,520 22,549 8,256 4,750 1,789 906 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) Accumulation unit value at beginning of period $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.74 $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 55,412 75,421 80,961 77,787 51,446 23,614 20,012 15,821 13,967 2,575 ----------------------------------------------------------------------------------------------------------------------------------- THIRD AVENUE VALUE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $3.14 $3.32 $2.89 $2.54 $2.13 $1.51 $1.70 $1.51 $1.08 $1.00 Accumulation unit value at end of period $1.75 $3.14 $3.32 $2.89 $2.54 $2.13 $1.51 $1.70 $1.51 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 16,209 23,692 28,765 31,916 32,334 31,927 31,335 27,040 8,231 1,873 ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.33 $1.37 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.33 $1.37 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 227,595 224,730 258,223 203,272 36,974 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.61 $1.11 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 88,969 51,109 51,499 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.20 $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.64 $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,546 14,940 37,273 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 $1.00 Accumulation unit value at end of period $1.42 $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 142,736 164,570 186,862 170,230 104,567 66,022 43,554 27,818 18,245 1,234 ----------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.18 $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 176,483 212,646 235,960 241,623 184,961 129,824 78,311 40,791 23,813 2,476 ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.37 $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.96 $1.37 $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,423 37,314 40,046 43,629 41,656 30,948 14,864 3,799 -- -- ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $1.43 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $0.80 $1.43 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,126 7,327 8,088 9,021 10,390 8,227 4,703 1,200 -- -- -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 55 VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,488 35,670 25,726 19,618 22,185 19,289 9,992 2,060 -- -- -----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT.
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $1.13 $1.02 $0.96 $0.89 $0.85 $0.66 $0.88 $1.16 $1.31 $1.00 Accumulation unit value at end of period $0.64 $1.13 $1.02 $0.96 $0.89 $0.85 $0.66 $0.88 $1.16 $1.31 Number of accumulation units outstanding at end of period (000 omitted) 19,004 26,499 33,759 37,608 41,803 44,130 48,704 55,044 46,419 5,160 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $2.05 $1.86 $1.62 $1.49 $1.30 $0.97 $1.25 $1.37 $1.26 $1.00 Accumulation unit value at end of period $1.07 $2.05 $1.86 $1.62 $1.49 $1.30 $0.97 $1.25 $1.37 $1.26 Number of accumulation units outstanding at end of period (000 omitted) 8,402 11,661 14,226 16,359 19,515 20,889 23,015 25,531 19,878 1,892 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,240 3,964 15,226 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES* (11/01/2005) Accumulation unit value at beginning of period $1.57 $1.38 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.92 $1.57 $1.38 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,711 23,729 1,198 107 -- -- -- -- -- -- *Effective Feb. 13, 2009, Putnam VT International New Opportunities Fund - Class IB Shares was substituted with AIM V.I. International Growth Fund, Series II Shares. ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.35 $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.70 $1.35 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,593 2,415 5,609 801 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,105 74,246 84,552 91,924 75,935 54,358 29,770 4,363 -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (08/13/2001) Accumulation unit value at beginning of period $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.21 $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 122,930 135,634 127,479 94,909 44,705 24,114 9,270 790 -- -- *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS I (09/15/1999) Accumulation unit value at beginning of period $1.49 $1.28 $1.03 $0.92 $0.81 $0.66 $0.83 $1.18 $1.44 $1.00 Accumulation unit value at end of period $0.82 $1.49 $1.28 $1.03 $0.92 $0.81 $0.66 $0.83 $1.18 $1.44 Number of accumulation units outstanding at end of period (000 omitted) 17,171 22,876 26,483 30,007 30,595 30,150 31,512 32,127 20,591 2,094 ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.67 $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,504 28,466 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,931 8,170 35,411 4,856 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS I* (09/15/1999) Accumulation unit value at beginning of period $1.73 $1.84 $1.57 $1.51 $1.33 $1.04 $1.20 $1.08 $0.92 $1.00 Accumulation unit value at end of period $1.25 $1.73 $1.84 $1.57 $1.51 $1.33 $1.04 $1.20 $1.08 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 27,547 40,862 47,256 53,403 50,775 49,145 49,161 41,460 21,041 4,775 *Effective Feb. 13, 2009, American Century VP Value, Class I was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ----------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.76 $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 12,240 17,034 19,334 19,301 17,682 14,100 9,832 6,090 1,693 -- -----------------------------------------------------------------------------------------------------------------------------------
56 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.71 $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 176,791 113,001 66,352 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.26 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.65 $1.26 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,849 22,702 32,712 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.74 $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,011 12,631 26,224 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - U.S. EQUITY FLEX III PORTFOLIO (09/21/1999) (PREVIOUSLY CREDIT SUISSE TRUST - MID-CAP CORE PORTFOLIO) Accumulation unit value at beginning of period $1.40 $1.27 $1.26 $1.18 $1.06 $0.74 $1.06 $1.28 $1.32 $1.00 Accumulation unit value at end of period $0.86 $1.40 $1.27 $1.26 $1.18 $1.06 $0.74 $1.06 $1.28 $1.32 Number of accumulation units outstanding at end of period (000 omitted) 5,549 7,584 9,967 12,660 15,543 17,844 20,303 24,697 22,624 2,872 ----------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 79,727 71,987 59,159 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 237,020 166,815 127,364 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.26 $1.14 $1.01 $0.95 $0.91 $0.74 $0.90 $1.00 $1.04 $1.00 Accumulation unit value at end of period $0.73 $1.26 $1.14 $1.01 $0.95 $0.91 $0.74 $0.90 $1.00 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 55,844 75,513 89,221 108,101 127,378 125,390 117,223 119,736 77,558 18,137 ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $3.56 $3.11 $2.79 $2.38 $1.93 $1.40 $1.57 $1.64 $1.24 $1.00 Accumulation unit value at end of period $2.13 $3.56 $3.11 $2.79 $2.38 $1.93 $1.40 $1.57 $1.64 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 41,030 52,936 63,504 70,537 72,884 69,808 68,203 67,132 48,251 6,945 ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.54 $1.33 $1.14 $0.96 $0.86 $0.60 $0.77 $0.98 $1.23 $1.00 Accumulation unit value at end of period $0.86 $1.54 $1.33 $1.14 $0.96 $0.86 $0.60 $0.77 $0.98 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 24,686 32,307 37,262 40,363 43,553 34,462 33,063 32,758 22,910 3,612 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 $1.00 Accumulation unit value at end of period $1.42 $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 39,491 59,503 81,589 88,911 80,587 63,047 44,591 19,803 6,181 683 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 $1.00 Accumulation unit value at end of period $1.55 $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 36,256 46,935 55,078 55,521 44,541 34,639 23,553 9,584 2,897 590 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMPLETON FOREIGN SECURITIES FUND - CLASS 2* (03/01/2002) Accumulation unit value at beginning of period $1.94 $1.69 $1.41 $1.29 $1.10 $0.84 $1.00 -- -- -- Accumulation unit value at end of period $1.14 $1.94 $1.69 $1.41 $1.29 $1.10 $0.84 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,247 12,682 15,475 18,421 15,951 12,608 9,570 -- -- -- *Effective Feb. 13, 2009, FTVIPT Templeton Foreign Securities Fund - Class 2 was substituted with Evergreen VA International Equity Fund - Class 2. ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $1.68 $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 65,990 96,413 112,452 117,932 84,473 65,106 47,539 24,711 10,265 2,023 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 57 VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED SMALL CAP EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.60 $1.94 $1.74 $1.66 $1.44 $1.00 $1.18 $1.14 $1.13 $1.00 Accumulation unit value at end of period $1.05 $1.60 $1.94 $1.74 $1.66 $1.44 $1.00 $1.18 $1.14 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 5,064 7,429 9,981 12,490 14,537 16,300 17,792 18,974 14,809 2,665 ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.70 $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 87,685 126,734 160,736 168,697 108,140 80,350 75,489 71,185 55,239 9,951 ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES ENTERPRISE PORTFOLIO: SERVICE SHARES (05/01/2000) (PREVIOUSLY JANUS ASPEN SERIES MID CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $0.72 $0.59 $0.53 $0.48 $0.40 $0.30 $0.42 $0.70 $1.00 -- Accumulation unit value at end of period $0.40 $0.72 $0.59 $0.53 $0.48 $0.40 $0.30 $0.42 $0.70 -- Number of accumulation units outstanding at end of period (000 omitted) 15,191 18,083 20,670 24,803 30,043 36,658 42,883 51,500 33,689 -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.51 $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 $1.00 -- Accumulation unit value at end of period $0.28 $0.51 $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 -- Number of accumulation units outstanding at end of period (000 omitted) 16,671 19,559 22,668 24,131 27,479 30,159 31,354 34,050 22,949 -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 128,192 72,177 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) (PREVIOUSLY JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.68 $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $0.80 $1.68 $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 -- Number of accumulation units outstanding at end of period (000 omitted) 54,116 64,174 61,879 59,325 61,390 68,389 74,111 64,147 29,251 -- ----------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.35 $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.84 $1.35 $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 36,022 51,659 62,992 73,982 66,844 53,159 28,853 19,727 10,774 2,504 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 $1.00 -- Accumulation unit value at end of period $0.48 $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 44,360 58,819 73,300 84,506 78,223 74,564 62,663 51,051 21,973 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.60 $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 22,831 31,915 38,120 48,503 60,214 61,988 53,383 36,822 15,060 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $1.37 $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,832 51,479 45,869 35,163 18,264 12,519 7,093 2,778 -- -- ----------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.57 $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 41,079 30,611 26,517 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.59 $1.51 $1.30 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.94 $1.59 $1.51 $1.30 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 24,950 32,187 34,962 20,721 6,121 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.39 $1.42 $1.25 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.39 $1.42 $1.25 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,861 23,107 22,606 12,037 4,085 -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------------------
58 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.25 $1.15 $1.08 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.06 $1.25 $1.15 $1.08 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 395,298 360,480 226,000 94,657 11,924 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 131,661 82,318 76,067 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND - CLASS IB SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.35 $1.21 $0.97 $0.82 $0.73 $0.56 $0.65 $0.92 $1.51 $1.00 Accumulation unit value at end of period $0.77 $1.35 $1.21 $0.97 $0.82 $0.73 $0.56 $0.65 $0.92 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 22,217 30,296 36,740 43,047 51,671 62,780 74,769 90,196 80,679 8,200 *Effective Feb. 13, 2009, Putnam VT International New Opportunities Fund - Class IB Shares was substituted with AIM V.I. International Growth Fund, Series II Shares. ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.58 $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 20,077 26,405 34,609 42,680 51,579 63,075 73,930 87,722 68,407 7,245 ----------------------------------------------------------------------------------------------------------------------------------- ROYCE CAPITAL FUND - MICRO-CAP PORTFOLIO, INVESTMENT CLASS (09/15/1999) Accumulation unit value at beginning of period $3.41 $3.32 $2.76 $2.50 $2.22 $1.50 $1.74 $1.35 $1.15 $1.00 Accumulation unit value at end of period $1.92 $3.41 $3.32 $2.76 $2.50 $2.22 $1.50 $1.74 $1.35 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 11,919 16,534 20,055 22,867 27,132 27,838 27,063 23,583 11,880 1,886 ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,115 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,436 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,034 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,299 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,524 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.08 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.11 $1.08 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 98,708 55,721 57,963 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.28 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $1.34 $1.28 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,807 5,203 5,724 5,777 2,540 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) Accumulation unit value at beginning of period $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.21 $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 85,345 79,474 69,587 72,463 57,581 44,918 28,099 6,314 -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.85 $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 51,095 74,966 74,221 77,525 74,540 73,310 64,613 53,096 39,810 6,539 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 59 VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.20 $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 290,095 247,870 211,744 147,452 148,915 178,580 228,237 265,455 203,922 87,424 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.06%) and (0.06%), respectively. ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.28 $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 430,993 408,270 351,043 257,273 190,125 176,013 159,405 106,760 43,920 11,675 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.13 $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 329,220 363,274 383,460 278,737 181,318 99,776 67,958 41,299 14,227 3,441 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.55 $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 180,807 242,876 290,744 144,230 94,730 45,599 34,956 26,779 22,159 3,227 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 $1.00 Accumulation unit value at end of period $1.49 $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 142,773 141,675 123,834 102,876 72,702 54,100 36,626 23,970 14,137 2,368 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.12 $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.12 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,444 88,734 95,224 51,906 1,504 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.01 $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 125,862 186,775 221,767 237,711 236,566 197,358 122,784 88,813 52,655 10,137 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.16 $1.14 $1.06 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.16 $1.14 $1.06 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,770 65,977 61,812 18,068 783 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 $1.00 -- -- Accumulation unit value at end of period $0.74 $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,504 35,043 43,939 31,419 35,498 29,450 12,145 2,238 -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.48 $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.48 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,362 43,555 54,642 4,982 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $0.64 $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 73,795 92,416 104,302 122,070 117,372 91,398 65,011 40,575 14,084 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.24 $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 108,778 104,637 108,222 121,249 130,386 135,202 116,147 56,966 24,654 12,796 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 $1.00 Accumulation unit value at end of period $0.41 $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 116,110 186,447 216,237 212,229 135,373 147,485 118,986 130,764 106,410 13,813 -----------------------------------------------------------------------------------------------------------------------------------
60 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED)
YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.32 $1.34 $1.13 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.79 $1.32 $1.34 $1.13 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,900 4,152 4,707 3,594 2,030 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.01 $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 18,734 28,329 38,372 46,718 51,057 39,709 29,341 24,346 16,349 3,029 ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) Accumulation unit value at beginning of period $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $1.27 $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 -- Number of accumulation units outstanding at end of period (000 omitted) 61,879 50,491 51,867 44,244 16,315 6,501 3,888 1,542 693 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.73 $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 42,730 58,762 64,541 61,793 40,351 21,462 19,189 18,664 15,670 2,173 ----------------------------------------------------------------------------------------------------------------------------------- THIRD AVENUE VALUE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $3.08 $3.27 $2.85 $2.51 $2.12 $1.50 $1.69 $1.50 $1.08 $1.00 Accumulation unit value at end of period $1.72 $3.08 $3.27 $2.85 $2.51 $2.12 $1.50 $1.69 $1.50 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 15,600 23,616 28,313 32,580 33,905 34,897 35,110 31,848 11,524 2,043 ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.32 $1.36 $1.18 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $1.32 $1.36 $1.18 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 120,656 113,380 130,395 96,755 18,714 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.22 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.61 $1.11 $1.22 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 50,326 29,814 27,318 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.20 $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,266 9,199 17,529 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 $1.00 Accumulation unit value at end of period $1.39 $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 88,899 108,613 122,718 114,381 79,981 56,466 42,309 30,297 21,844 1,343 ----------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.16 $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 117,299 145,262 164,257 169,886 140,320 108,046 72,853 46,456 29,881 2,723 ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.35 $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.95 $1.35 $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,992 28,981 29,215 32,466 31,201 22,278 11,859 3,224 -- -- ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $1.41 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $0.79 $1.41 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,897 5,538 6,052 6,690 7,049 5,248 2,781 1,031 -- -- ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $0.76 $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,000 23,653 17,655 14,334 16,103 13,800 7,655 2,230 -- -- -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 61 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts.............. p. 3 Rating Agencies.......................... p. 4 Revenues Received During Calendar Year 2008................................... p. 4 Principal Underwriter.................... p. 5 Independent Registered Public Accounting Firm................................... p. 5 Financial Statements
62 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 63 THIS PAGE LEFT BLANK INTENTIONALLY 64 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 65 THIS PAGE LEFT BLANK INTENTIONALLY 66 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 67 THIS PAGE LEFT BLANK INTENTIONALLY 68 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY -- PROSPECTUS 69 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C) 2008-2009 RiverSource Life Insurance Company. All rights reserved. S-6467 N (5/09) PROSPECTUS MAY 1, 2009 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) - BAND 3 INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITY FOR: - current or retired employees of Ameriprise Financial, Inc. or its subsidiaries and their spouses (employees), - current or retired Ameriprise Financial, Inc. financial advisors and their spouses (advisors), and - individuals investing an initial purchase payment of $1 million (other individuals). NEW RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 CONTRACTS ARE NOT CURRENTLY BEING OFFERED. ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10 This prospectus contains information that you should know before investing. Prospectuses are also available for: - AIM Variable Insurance Funds - AllianceBernstein Variable Products Series Fund, Inc. - American Century Variable Portfolios, Inc. - Calvert Variable Series, Inc. - Columbia Variable Insurance Trust - Credit Suisse Trust - Eaton Vance Variable Trust - Fidelity(R) Variable Insurance Products Funds - Service Class - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - Goldman Sachs Variable Insurance Trust (VIT) - Janus Aspen Series: Service Shares - Lazard Retirement Series, Inc. - MFS(R) Variable Insurance Trust(SM) - Neuberger Berman Advisers Management Trust - Oppenheimer Variable Account Funds - Service Shares - PIMCO Variable Insurance Trust (VIT) - Putnam Variable Trust - Class IB Shares - RiverSource Variable Series Trust (RVST) - Royce Capital Fund - Third Avenue Variable Series Trust - The Universal Institutional Funds, Inc. Van Kampen Life Investment Trust - Wanger Advisors Trust - Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). Variable annuities are insurance products that are complex investment vehicles. Be sure to ask your financial advisor about the variable annuity's features, benefits, risks and fees. This prospectus provides a general description of the contract. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contract other than those contained in this prospectus or the Fund prospectuses. Do not rely on any such information or representations. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 1 RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to your annuity account values. The fees and charges may also be different between each annuity. TABLE OF CONTENTS KEY TERMS.............................................. 3 THE CONTRACT IN BRIEF.................................. 5 EXPENSE SUMMARY........................................ 6 CONDENSED FINANCIAL INFORMATION (UNAUDITED)............ 12 FINANCIAL STATEMENTS................................... 12 THE VARIABLE ACCOUNT AND THE FUNDS..................... 12 THE FIXED ACCOUNT...................................... 21 BUYING YOUR CONTRACT................................... 22 CHARGES................................................ 23 VALUING YOUR INVESTMENT................................ 25 MAKING THE MOST OF YOUR CONTRACT....................... 26 SURRENDERS............................................. 33 TSA -- SPECIAL PROVISIONS.............................. 34 CHANGING OWNERSHIP..................................... 35 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT.... 35 OPTIONAL BENEFITS...................................... 37 THE ANNUITY PAYOUT PERIOD.............................. 40 TAXES.................................................. 42 VOTING RIGHTS.......................................... 45 SUBSTITUTION OF INVESTMENTS............................ 46 ABOUT THE SERVICE PROVIDERS............................ 46 APPENDIX: CONDENSED FINANCIAL INFORMATION (UNAUDITED).. 48 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION.................. 54
-------------------------------------------------------------------------------- 2 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BENEFICIARY: The person you designate to receive benefits in case of the owner's or annuitant's death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB): This is an optional benefit you can add to your contract for an additional charge. It is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. FIXED ACCOUNT: An account to which you may allocate purchase payments. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contracts owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV): This is an optional benefit you can add to your contract for an additional charge that is intended to provide additional death benefit protection in the event of fluctuating fund values. OWNER (YOU, YOUR): The person or persons who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM): This is an optional asset allocation program in which you may elect to participate by adding the optional PN program rider for an additional charge. QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - Individual Retirement Annuities (IRAs) under Section 408(b) of the Code - Roth IRAs under Section 408A of the Code - SIMPLE IRAs under Section 408(p) of the Code - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 3 - Plans under Section 401(k) of the Code - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RIDER: You receive a rider when you purchase the EEB, MAV and/or PN. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Consists of separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. -------------------------------------------------------------------------------- 4 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THE CONTRACT IN BRIEF PURPOSE: The purpose of the contract is to allow you to accumulate money for retirement or a similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the fixed account and/or subaccounts under the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payout of your contract value (less any applicable premium tax). TAX-DEFERRED RETIREMENT PLANS: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions (RMDs). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the potential tax implications to you. FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract. You will receive a full refund of the contract value. We will not deduct any charges. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (Exception: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among any or all of: - the subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "The Variable Account and the Funds") - the fixed account, which earns interest at a rate that we adjust periodically. Purchase payment allocations to the fixed account may be subject to special restrictions. (see "The Fixed Account") BUYING YOUR CONTRACT: We no longer offer new contracts. However, you have the option of making additional purchase payments in the future. (see "Buying Your Contract") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the accounts until annuity payouts begin, and once per contract year among the subaccounts after annuity payouts begin. You may establish automated transfers among the accounts. Fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (see "Surrenders") BENEFITS IN CASE OF DEATH: If you or the annuitant die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: This contract offers optional features that are available for additional charges if you meet certain criteria. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (see "The Annuity Payout Period") TAXES: Generally, income earned on your contract value grows tax deferred until you surrender it or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. However, Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. (see "Taxes") -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 5 EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT ARE PAID WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU PAID AT THE TIME THAT YOU BOUGHT THE CONTRACT AND MAY PAY WHEN YOU SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES
SURRENDER CHARGE 0%
SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will vary between 3.50% and 5.00% depending on the applicable assumed investment rate. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.") THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE
$30
(We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) OPTIONAL RIDER FEES (As a percentage of the contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.)
MAV RIDER FEE 0.15% EEB RIDER FEE 0.30% PN RIDER FEE Maximum: 0.20% Current: 0.10%
ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value.)
MORTALITY AND EXPENSE RISK FEE 0.55%
-------------------------------------------------------------------------------- 6 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2008, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE TOTAL FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.55% 4.35%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Account and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AIM V.I. Capital Appreciation Fund, Series I 0.61% --% 0.30% 0.01% 0.92% Shares AIM V.I. Capital Development Fund, Series I 0.75 -- 0.36 0.01 1.12(1) Shares AIM V.I. Global Health Care Fund, Series II 0.75 0.25 0.38 0.01 1.39(2) Shares AIM V.I. International Growth Fund, Series II 0.71 0.25 0.35 0.02 1.33(2) Shares AllianceBernstein VPS Global Technology 0.75 0.25 0.18 -- 1.18 Portfolio (Class B) AllianceBernstein VPS Growth and Income 0.55 0.25 0.07 -- 0.87 Portfolio (Class B) AllianceBernstein VPS International Value 0.74 0.25 0.07 -- 1.06 Portfolio (Class B) American Century VP International, Class I 1.34 -- 0.01 -- 1.35 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class I 0.94 -- 0.01 -- 0.95 Calvert Variable Series, Inc. Social Balanced 0.70 -- 0.22 -- 0.92 Portfolio Columbia Marsico Growth Fund, Variable Series, 0.92 -- 0.04 -- 0.96 Class A Columbia Marsico International Opportunities 1.02 0.25 0.12 -- 1.39 Fund, Variable Series, Class B Credit Suisse Trust - Commodity Return Strategy 0.50 0.25 0.31 -- 1.06(3) Portfolio Credit Suisse Trust - U.S. Equity Flex III 0.70 -- 0.75 -- 1.45(3) Portfolio (previously Credit Suisse Trust - Mid-Cap Core Portfolio) Eaton Vance VT Floating-Rate Income Fund 0.58 0.25 0.37 -- 1.20 Evergreen VA International Equity Fund - Class 2 0.42 0.25 0.25 -- 0.92 Fidelity(R) VIP Contrafund(R) Portfolio Service 0.56 0.25 0.10 -- 0.91 Class 2 Fidelity(R) VIP Growth & Income Portfolio 0.46 0.10 0.13 -- 0.69 Service Class Fidelity(R) VIP Mid Cap Portfolio Service Class 0.56 0.10 0.12 -- 0.78 Fidelity(R) VIP Overseas Portfolio Service Class 0.71 0.10 0.16 -- 0.97 FTVIPT Franklin Global Real Estate Securities 0.80 0.25 0.30 -- 1.35(4) Fund - Class 2 FTVIPT Franklin Small Cap Value Securities 0.52 0.25 0.16 0.01 0.94(5) Fund - Class 2 Goldman Sachs VIT Mid Cap Value 0.80 -- 0.04 -- 0.84 Fund - Institutional Shares
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 7 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Goldman Sachs VIT Structured Small Cap Equity 0.75% --% 0.31% --% 1.06%((6)) Fund - Institutional Shares Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(7) Fund - Institutional Shares Janus Aspen Series Enterprise Portfolio: Service 0.64 0.25 0.03 -- 0.92 Shares (previously Janus Aspen Series Mid Cap Growth Portfolio: Service Shares) Janus Aspen Series Global Technology Portfolio: 0.64 0.25 0.22 -- 1.11 Service Shares Janus Aspen Series Janus Portfolio: Service 0.64 0.25 0.02 0.01 0.92 Shares (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) Janus Aspen Series Overseas Portfolio: Service 0.64 0.25 0.05 -- 0.94 Shares (previously Janus Aspen Series International Growth Portfolio: Service Shares) MFS(R) Investors Growth Stock Series - Service 0.75 0.25 0.10 -- 1.10 Class MFS(R) New Discovery Series - Service Class 0.90 0.25 0.11 -- 1.26 MFS(R) Utilities Series - Service Class 0.72 0.25 0.09 -- 1.06 Neuberger Berman Advisers Management Trust 1.13 0.25 0.21 -- 1.59(8) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service 0.63 0.25 0.02 -- 0.90 Shares Oppenheimer Main Street Small Cap Fund/VA, 0.70 0.25 0.04 -- 0.99 Service Shares Oppenheimer Strategic Bond Fund/VA, Service 0.55 0.25 0.04 0.01 0.85(9) Shares PIMCO VIT All Asset Portfolio, Advisor Share 0.43 0.25 -- 0.76 1.44(10) Class Putnam VT Vista Fund - Class IB Shares 0.65 0.25 0.15 0.01 1.06 Royce Capital Fund - Micro-Cap Portfolio, 1.25 -- 0.07 -- 1.32 Investment Class RVST Disciplined Asset Allocation -- 0.25 0.89 0.69 1.83(11) Portfolios - Aggressive RVST Disciplined Asset Allocation -- 0.25 0.61 0.66 1.52(11) Portfolios - Conservative RVST Disciplined Asset Allocation -- 0.25 0.30 0.68 1.23(11) Portfolios - Moderate RVST Disciplined Asset Allocation -- 0.25 0.36 0.68 1.29(11) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation -- 0.25 0.50 0.67 1.42(11) Portfolios - Moderately Conservative RVST RiverSource Partners Variable 0.77 0.13 0.16 -- 1.06(12) Portfolio - Fundamental Value Fund RVST RiverSource Partners Variable 0.89 0.13 3.33 -- 4.35(12) Portfolio - Select Value Fund RVST RiverSource Partners Variable 0.95 0.13 0.19 0.05 1.32(12) Portfolio - Small Cap Value Fund RVST RiverSource Variable Portfolio - Balanced 0.42 0.13 0.16 -- 0.71 Fund RVST RiverSource Variable Portfolio - Cash 0.32 0.13 0.17 -- 0.62 Management Fund RVST RiverSource Variable 0.44 0.13 0.15 -- 0.72 Portfolio - Diversified Bond Fund RVST RiverSource Variable 0.59 0.13 0.14 -- 0.86 Portfolio - Diversified Equity Income Fund RVST RiverSource Variable Portfolio - Dynamic 0.44 0.13 0.15 0.02 0.74 Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) RVST RiverSource Variable Portfolio - Global 0.66 0.13 0.18 -- 0.97(12) Bond Fund RVST RiverSource Variable Portfolio - Global 0.44 0.13 0.17 -- 0.74(12) Inflation Protected Securities Fund RVST RiverSource Variable Portfolio - High Yield 0.59 0.13 0.17 -- 0.89 Bond Fund RVST RiverSource Variable Portfolio - Income 0.61 0.13 0.18 -- 0.92 Opportunities Fund RVST RiverSource Variable Portfolio - Mid Cap 0.58 0.13 0.17 -- 0.88(12) Growth Fund RVST RiverSource Variable Portfolio - Mid Cap 0.73 0.13 0.18 -- 1.04 Value Fund RVST RiverSource Variable Portfolio - S&P 500 0.22 0.13 0.19 0.01 0.55(12) Index Fund RVST RiverSource Variable Portfolio - Short 0.48 0.13 0.18 -- 0.79 Duration U.S. Government Fund
-------------------------------------------------------------------------------- 8 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES RVST Seligman Variable Portfolio - Growth Fund 0.45% 0.13% 0.17% 0.04% 0.79% (previously RVST RiverSource Variable Portfolio - Growth Fund) RVST Seligman Variable Portfolio - Larger-Cap 0.48 0.13 0.67 -- 1.28(12) Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) RVST Seligman Variable Portfolio - Smaller-Cap 0.62 0.13 0.31 -- 1.06(12) Value Fund (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) RVST Threadneedle Variable Portfolio - Emerging 1.15 0.13 0.33 -- 1.61 Markets Fund RVST Threadneedle Variable 0.82 0.13 0.20 -- 1.15 Portfolio - International Opportunity Fund Third Avenue Value Portfolio 0.90 -- 0.34 -- 1.24 Van Kampen Life Investment Trust Comstock 0.56 0.25 0.04 -- 0.85 Portfolio, Class II Shares Van Kampen UIF Global Real Estate Portfolio, 0.85 0.35 0.37 -- 1.57(13) Class II Shares Van Kampen UIF Mid Cap Growth Portfolio, Class 0.75 0.35 0.31 -- 1.41(13) II Shares Wanger International 0.84 -- 0.18 -- 1.02 Wanger USA 0.85 -- 0.11 -- 0.96 Wells Fargo Advantage VT Asset Allocation Fund 0.55 0.25 0.23 0.01 1.04(14) Wells Fargo Advantage VT International Core Fund 0.75 0.25 0.43 -- 1.43(14) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 -- 1.26(14)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series I shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.30%. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.11%. (2) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.45% of average daily net assets. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.38% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (3) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95% for Credit Suisse Trust - Commodity Return Strategy Portfolio and 1.34% for Credit Suisse Trust - U.S. Equity Flex III Portfolio. (4) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.03%. (5) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent of the Fund's fees and expenses of the acquired fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.93%. (6) The Investment Adviser has voluntarily agreed to waive a portion of its management fee equal to 0.02% of the Fund's average daily net assets. In addition, the Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.114% of the Fund's average daily net assets. The expense reductions may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. After fee waivers and expense reductions, net expenses would be 0.86%. (7) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. After expense reductions, net expenses would be 0.71%. (8) Neuberger Berman Management Inc. ("NBM") has undertaken through Dec. 31, 2012, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.53%. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 9 (9) The other expenses in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2008, the transfer agent fees did not exceed this expense limitation. In addition, for Oppenheimer Strategic Bond Fund/VA, Service Shares, the Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82%. (10) PIMCO has contractually agreed through Dec. 31, 2009, to reduce its advisory fee to the extent that the acquired fund fees and expenses attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.42%. (11) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. (12) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.99% for RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund, 1.14% for RVST RiverSource Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund, 0.96% for RVST RiverSource Variable Portfolio - Global Bond Fund, 0.74% for RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund, 1.00% for RVST RiverSource Variable Portfolio - Mid Cap Growth Fund, 0.53% for RVST RiverSource Variable Portfolio - S&P 500 Index Fund, 1.04% for RVST Seligman Variable Portfolio - Larger-Cap Value Fund and 1.12% for RVST Seligman Variable Portfolio - Smaller-Cap Value Fund. (13) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursements, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.15% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. The Adviser reserves the right to terminate any waivers and/or reimbursements at any time and without notice. (14) The adviser has contractually agreed through April 30, 2010 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After this time, the net operating expense ratio may be increased only with approval of the Board of Trustees. After fee waivers and expense reimbursements, net expenses would be 1.00% for Wells Fargo Advantage VT Asset Allocation Fund, 1.00% for Wells Fargo Advantage VT International Core Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. -------------------------------------------------------------------------------- 10 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE CONTRACT WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES*, VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. This example assumes the maximum fees and expenses of any of the funds. It assumes that you select both the optional MAV, EEB and PN**. Although your actual costs may be higher or lower, based on this assumption your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS $574 $1,708 $2,826 $5,550
MINIMUM EXPENSES. This example assumes the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. It assumes that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS $118 $366 $635 $1,400
* In these examples, the $30 contract administrative charge is approximated as a .047% charge. This percentage was determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to this contract by the total average net assets that are attributable to the contract. ** Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for the optional rider is reflected rather than the fee that is currently being charged. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 11 CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information for the subaccounts in the Appendix. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the subaccounts in the SAI. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contract currently offers subaccounts investing in shares of the funds listed in the table below. - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, -------------------------------------------------------------------------------- 12 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of your Contract -- Portfolio Navigator Asset Allocation Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue, including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including expense payments and non-cash compensation. The amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in 2008. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 13 - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. -------------------------------------------------------------------------------- 14 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS UNLESS AN ASSET ALLOCATION PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- AIM V.I. Capital Seeks growth of capital. Invesco Aim Advisors, Appreciation Inc. adviser, advisory Fund, Series I entities affiliated with Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Capital Seeks long-term growth of capital. Invesco Aim Advisors, Development Fund, Inc. adviser, advisory Series I Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Global Seeks capital growth. Invesco Aim Advisors, Health Care Fund, Inc. adviser, advisory Series II Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Seeks long-term growth of capital. Invesco Aim Advisors, International Inc. adviser, advisory Growth Fund, entities affiliated with Series II Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Global Technology Portfolio (Class B) ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Growth and Income Portfolio (Class B) ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS International Value Portfolio (Class B) ----------------------------------------------------------------------------------------
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---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- American Century Seeks capital growth. American Century Global VP International, Investment Management, Class I Inc. ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Mid Cap Value, secondary objective. Investment Management, Class II Inc. ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. American Century VP Ultra(R), Investment Management, Class II Inc. ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Value, Class I secondary objective. Investment Management, Inc. ---------------------------------------------------------------------------------------- Calvert Variable Seeks competitive total return through Calvert Asset Management Series, Inc. actively managed portfolio of stocks, bonds Company, Inc., adviser. Social Balanced and money market instruments which offer New Amsterdam Partners, Portfolio income and capital growth opportunity and LLP, subadviser on which satisfy Portfolio's investment and equity portion; no social criteria. subadviser on fixed- income portion. ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management Growth Fund, Advisors, LLC, adviser; Variable Series, Marsico Capital Class A Management, LLC, sub- adviser. ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management International Advisors, LLC, adviser; Opportunities Marsico Capital Fund, Variable Management, LLC, sub- Series, Class B adviser. ---------------------------------------------------------------------------------------- Credit Suisse Seeks total return. Credit Suisse Asset Trust - Commodity Management, LLC Return Strategy Portfolio ---------------------------------------------------------------------------------------- Credit Suisse Seeks long-term capital appreciation. Credit Suisse Asset Trust - U.S. Management, LLC Equity Flex III Portfolio (previously Credit Suisse Trust - Mid-Cap Core Portfolio) ---------------------------------------------------------------------------------------- Eaton Vance VT Seeks high level of current income. Eaton Vance Management Floating-Rate Income Fund ---------------------------------------------------------------------------------------- Evergreen VA Seeks long-term capital growth and Evergreen Investment International secondarily, modest income. Management Company, LLC Equity Fund - Class 2 ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Normally invests primarily in common Research Company (FMR), Portfolio Service stocks. Invests in securities of companies investment manager; FMR Class 2 whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks high total return through a FMR, investment manager; Growth & Income combination of current income and capital FMR U.K., FMR Far East, Portfolio Service appreciation. Normally invests a majority sub-advisers. Class of assets in common stocks with a focus on those that pay current dividends and show potential for capital appreciation. Invests in domestic and foreign issuers. The Fund invests in either "growth" stocks or "value" stocks or both. ----------------------------------------------------------------------------------------
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---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Mid Cap Portfolio invests primarily in common stocks. FMR U.K., FMR Far East, Service Class Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Overseas invests primarily in common stocks FMR U.K., FMR Far East, Portfolio Service allocating investments across different Fidelity International Class countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities. (FIIA) and FIIA U.K., sub-advisers. ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks high total return. Franklin Templeton Global Real Institutional, LLC Estate Securities Fund - Class 2 ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks long-term total return. Franklin Advisory Small Cap Value Services, LLC Securities Fund - Class 2 ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term capital appreciation. Goldman Sachs Asset Mid Cap Value Management, L.P. Fund - Instituti- onal Shares ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital through a Goldman Sachs Asset Structured Small broadly diversified portfolio of equity Management, L.P. Cap Equity investments in U.S. issuers. Fund - Instituti- onal Shares ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. dividend income. Management, L.P. Equity Fund - Instituti- onal Shares ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital. Janus Capital Management Series LLC Enterprise Portfolio: Service Shares (previously Janus Aspen Series Mid Cap Growth Portfolio: Service Shares) ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital. Janus Capital Management Series Global LLC Technology Portfolio: Service Shares ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital in a Janus Capital Management Series Janus manner consistent with the preservation of LLC Portfolio: capital. Service Shares (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital. Janus Capital Management Series LLC Overseas Portfolio: Service Shares (previously Janus Aspen Series International Growth Portfolio: Service Shares) ---------------------------------------------------------------------------------------- MFS(R) Investors Seeks capital appreciation. MFS Investment Growth Stock Management(R) Series - Service Class ----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 17
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- MFS(R) New Seeks capital appreciation. MFS Investment Discovery Management(R) Series - Service Class ---------------------------------------------------------------------------------------- MFS(R) Utilities Seeks total return. MFS Investment Series - Service Management(R) Class ---------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers investing primarily in common stocks of Management Inc. Management Trust foreign companies. International Portfolio (Class S) ---------------------------------------------------------------------------------------- Oppenheimer Seeks long-term capital appreciation. OppenheimerFunds, Inc. Global Securities Fund/VA, Service Shares ---------------------------------------------------------------------------------------- Oppenheimer Main Seeks capital appreciation. OppenheimerFunds, Inc. Street Small Cap Fund/VA, Service Shares ---------------------------------------------------------------------------------------- Oppenheimer Seeks high level of current income OppenheimerFunds, Inc. Strategic Bond principally derived from interest on debt Fund/VA, Service securities. Shares ---------------------------------------------------------------------------------------- PIMCO VIT All Seeks maximum real return consistent with Pacific Investment Asset Portfolio, preservation of real capital and prudent Management Company LLC Advisor Share investment management period. Class ---------------------------------------------------------------------------------------- Putnam VT Vista Seeks capital appreciation. Putnam Investment Fund - Class IB Management, LLC Shares ---------------------------------------------------------------------------------------- Royce Capital Seeks long-term growth of capital. Royce & Associates, LLC Fund - Micro-Cap Portfolio, Investment Class ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with an aggressive level of LLC Portfolios - Agg- risk. This is a "fund of funds" and seeks ressive to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a conservative level of LLC Portfolios - Con- risk. This is a "fund of funds" and seeks servative to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate level of risk. LLC Portfolios - Mod- This is a "fund of funds" and seeks to erate achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 18 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate aggressive level LLC Portfolios - - of risk. This is a "fund of funds" and Moderately seeks to achieve its objective by investing Aggressive in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate conservative LLC Portfolios - - level of risk. This is a "fund of funds" Moderately and seeks to achieve its objective by Conservative investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital growth. RiverSource Investments, Partners Variable LLC, adviser; Davis Portfolio - Fund- Selected Advisers, L.P., amental Value subadviser. Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Partners Variable LLC, adviser; Systematic Portfolio - Sele- Financial Management, ct Value Fund L.P. and WEDGE Capital Management L.L.P., sub- advisers. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Partners Variable LLC, adviser; Barrow, Portfolio - Small Hanley, Mewhinney & Cap Value Fund Strauss, Inc., Denver Investment Advisors LLC, Donald Smith & Co., Inc., River Road Asset Management, LLC and Turner Investment Partners, Inc., subadvisers. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum total investment return RiverSource Investments, Variable through a combination of capital growth and LLC Portfolio - Bala- current income. nced Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum current income consistent RiverSource Investments, Variable with liquidity and stability of principal. LLC Portfolio - Cash Management Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income while RiverSource Investments, Variable attempting to conserve the value of the LLC Portfolio - Dive- investment for the longest period of time. rsified Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and, as RiverSource Investments, Variable a secondary goal, steady growth of capital. LLC Portfolio - Dive- rsified Equity Income Fund ----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 19
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST RiverSource Seeks capital appreciation. RiverSource Investments, Variable LLC Portfolio - Dyna- mic Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks high total RiverSource Investments, Variable return through income and growth of LLC Portfolio - Glob- capital. al Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks total RiverSource Investments, Variable return that exceeds the rate of inflation LLC Portfolio - Glob- over the long-term. al Inflation Protected Securities Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high current income, with capital RiverSource Investments, Variable growth as a secondary objective. LLC Portfolio - High Yield Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high total return through current RiverSource Investments, Variable income and capital appreciation. LLC Portfolio - Inco- me Opportunities Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Growth Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Value Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Variable LLC Portfolio - S&P 500 Index Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and RiverSource Investments, Variable safety of principal consistent with LLC Portfolio - Short investment in U.S. government and Duration U.S. government agency securities. Government Fund ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC Portfolio - Grow- th Fund (previously RVST RiverSource Variable Portfolio - Grow- th Fund) ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Larg- er-Cap Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Kenwood Portfolio - Smal- Capital Management LLC, ler-Cap Value sub-adviser. Fund (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) ----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 20 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Portfolio - Emer- Threadneedle ging Markets Fund International Limited, an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks capital appreciation. RiverSource Investments, Variable LLC, adviser; Portfolio - In- Threadneedle ternational International Limited, Opportunity Fund an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ---------------------------------------------------------------------------------------- Third Avenue Seeks long-term capital appreciation. Third Avenue Management Value Portfolio LLC ---------------------------------------------------------------------------------------- Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust investments in equity securities, including Management Comstock common stocks, preferred stocks and Portfolio, Class securities convertible into common and II Shares preferred stocks. ---------------------------------------------------------------------------------------- Van Kampen UIF Seeks current income and capital Morgan Stanley Global Real appreciation. Investment Management Estate Portfolio, Inc., doing business as Class II Shares Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. ---------------------------------------------------------------------------------------- Van Kampen UIF Seeks long-term capital growth. Morgan Stanley Mid Cap Growth Investment Management Portfolio, Class Inc., doing business as II Shares Van Kampen. ---------------------------------------------------------------------------------------- Wanger Seeks long-term growth of capital. Columbia Wanger Asset International Management, L.P. ---------------------------------------------------------------------------------------- Wanger USA Seeks long-term capital appreciation. Columbia Wanger Asset Management, L.P. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Asset Allocation adviser; Wells Capital Fund Management Incorporated, sub-adviser. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, International adviser; Wells Capital Core Fund Management Incorporated, sub-adviser. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Small Cap Growth adviser; Wells Capital Fund Management Incorporated, sub-adviser. ----------------------------------------------------------------------------------------
THE FIXED ACCOUNT You also may allocate purchase payments and transfer contract value to the fixed account. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of the company. The value of the fixed account increases as we credit interest to the account. Purchase payments and transfers to the fixed account become part of our general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate for your fixed account is guaranteed for 12 months from the contract issue date. Thereafter, we will change rates from time to time at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 21 annuities, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and the RiverSource Life's revenues and expenses. Interests in the fixed account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract - Transfer Policies" for restrictions on transfers involving the fixed account.) BUYING YOUR CONTRACT New contracts are not currently being offered. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can become an owner or an annuitant if you are 90 or younger. The contract provides for allocation of purchase payments to the subaccounts of the variable account and/or to the fixed account in tenth of a percent increments. We reserve the right to not accept purchase payments allocated to the fixed account for twelve months following: (1) a partial surrender from the fixed account; or (2) a lump sum from the fixed account to the subaccounts, We applied your initial purchase payment within two business days after we received it at our corporate office. However, we will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. When we processed your application, we established the settlement date as the maximum age (or contract anniversary if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities or you selected a date within the maximum limits. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - no earlier than the 60th day after the contract's effective date; and - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75 or a date that has been otherwise agreed to by us. (In Pennsylvania, the maximum settlement date ranges from age 85 to 96 based on the annuitant's age when we issue the contract. See contract for details.) FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - for IRAs, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2; or - for all other qualified annuities, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2, or, if later, retires (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. (In Pennsylvania, the annuity payout ranges from age 85 to 96 based on the annuitant's age when the contract is issued. See contract for details.) Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs and TSAs, and in that case, may delay the annuity payouts start date for this contract. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit to your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their completed claim. A beneficiary will bear the investment risk of the variable account until we receive the beneficiary's completed claim. If there is no named beneficiary, then the default provisions of your contract will apply. (See "Benefits in Case of Death" for more about beneficiaries.) PURCHASE PAYMENTS MINIMUM ALLOWABLE PURCHASE PAYMENTS(1) If paying by installments under a scheduled payment plan: -------------------------------------------------------------------------------- 22 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS $23.08 biweekly, or $50 per month If paying by any other method: $50 (1) Installments must total at least $600 in the first year. If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in New Jersey. MAXIMUM ALLOWABLE ANNUAL PURCHASE PAYMENTS(2) $100,000 for ages through 85 $50,000 for ages 86 to 90 (2) These annual contribution limits apply in total to all RiverSource Life annuities you own. We reserve the right to increase maximum limits. For qualified annuities the tax-deferred retirement plan's or the Code's limits on annual contributions also apply. We reserve the right to not accept purchase payments allocated to the fixed account for twelve months following either: 1. a partial surrender from the fixed account; or 2. a lump sum transfer from the fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 BY SCHEDULED PAYMENT PLAN FOR EMPLOYEES/ADVISORS ONLY We can help you set up: - an automatic payroll deduction, salary reduction or other group billing arrangement; or - a bank authorization. LIMITATIONS ON USE OF CONTRACT If mandated by applicable law, including but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values and satisfy other statutory obligations. Under these circumstances, we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or court of competent jurisdiction. CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. We deduct $30 from the contract value on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the fixed account in the same proportion your interest in each account bears to your total contract value. We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the charge at the time of surrender regardless of the contract value or purchase payments made. We cannot increase the annual contract administrative charge and it does not apply after annuity payouts begin or when we pay death benefits. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee and it totals 0.55% of the average daily net assets on an annual basis. This fee covers the mortality and expense risk that we assume. This fee does not apply to the fixed account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 23 owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. MAV RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.15% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. EEB RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you chose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. (1) You may select either the MAV or EEB riders. Or you may select the MAV and the EEB. Riders may not be available in all states. The MAV and EEB are only available if you and the annuitant are 75 or younger at the rider effective date. PN RIDER FEE We charge a fee for this optional feature only if you select it. This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value less any excluded accounts (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). In Washington the fee will only be deducted from the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If we allow you to add the rider other than on a contract anniversary, we reserve the right to adjust the rider fee for the number of calendar days coverage was in place. If the rider terminates for any reason other than on a contract anniversary, we reserve the right to deduct this fee at that time and adjust it for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary, we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. SURRENDER CHARGE There is no charge if you surrender all or part of your contract. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will vary between 3.50% and 5.00% depending on the applicable assumed investment rate. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value -------------------------------------------------------------------------------- 24 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (waived in case of death or disability). POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate the contract administrative and surrender charges. However, we expect this to occur infrequently. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectuses for those funds. (See "Annual Operating Expenses of the Funds.") PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon the state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you make purchase payments or when you surrender your contract. VALUING YOUR INVESTMENT We value your accounts as follows: FIXED ACCOUNT We value the amounts you allocated to the fixed account directly in dollars. The fixed account value equals: - the sum of your purchase payments and transfer amounts allocated to the fixed account; - plus interest credited; - minus the sum of amounts surrendered and amounts transferred out; - minus any prorated portion of the contract administrative charge; - minus any prorated portion of the MAV rider fee (if selected); - minus any prorated portion of the EEB rider fee (if selected); and - minus any prorated portion of the PN rider fee (if selected). SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge, or fee for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - dividing that sum by the previous adjusted net asset value per share; and - subtracting the percentage factor representing the mortality and expense risk fee from the result. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 25 Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - additional purchase payments you allocate to the subaccounts; - transfers into or out of the subaccounts; - partial surrenders; and/or a deduction of: - a prorated portion of the contract administrative charge; - a prorated portion of the MAV rider fee (if selected); - a prorated portion of the EEB rider fee (if selected); and/or - a prorated portion of the PN rider fee (if selected). Accumulation unit values will fluctuate due to: - changes in fund net asset value; - fund dividends distributed to the subaccounts; - fund capital gains or losses; - fund operating expenses; and - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the fixed account to one or more subaccounts. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. You may not set up our automated transfer if the PN is selected. The potential effect is to lower your average cost per unit. HOW DOLLAR-COST AVERAGING WORKS
NUMBER By investing an equal AMOUNT ACCUMULATION OF UNITS number of dollars each month... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy Mar 100 17 5.88 more units when the per unit (ARROW) Apr 100 15 6.67 market price is low ... May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units Aug 100 19 5.26 when the per unit (ARROW) Sept 100 21 4.76 market price is high ... Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features contact your sales representative. -------------------------------------------------------------------------------- 26 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts ) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semiannually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in numbers with no more than one digit past the decimal. Asset rebalancing does not apply to the fixed account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. Different rules apply to asset rebalancing under the Portfolio Navigator program (see "Portfolio Navigator Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You may elect to participate in the PN program at any time for an additional charge (see "Charges"). You may cancel your participation in the PN program at any time by giving us written notice. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. You should review any PN program information, including the terms of the PN program, carefully. Your financial advisor can provide you with additional information and can answer questions you may have on the PN program. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investment's role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 27 We identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflict of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. POTENTIAL CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. As an affiliate of RiverSource Investments, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Series Trust funds. In this role RiverSource Investments may, from time to time, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from the fixed account than from other allocation options. We therefore may have an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. Your financial advisor can help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. -------------------------------------------------------------------------------- 28 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts and/or the fixed account that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Dollar-cost averaging arrangements (DCA) are currently not allowed while you are participating in the PN program. If we choose to allow for DCA arrangements, we will designate one or more subaccounts as "excluded accounts" which are not part of a model portfolio. If an account has been designated as an excluded account and you set up a DCA arrangement, we will make monthly transfers in accordance with your instructions from the excluded account into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value according to the updated model portfolio. If you do not want your contract value to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - limit your choice of models based on the amount of your initial purchase payment we accept; - substitute a fund of funds for your current model portfolio if permitted under applicable securities law; and - discontinue the PN program. We will give you 30 days' written notice of any such change. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 29 Quarterly rebalancing and periodic updating of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing or periodic updating of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model is in effect. You may transfer contract value from any one subaccount, or the fixed account, to another subaccount before annuity payouts begin. Certain restrictions apply to transfers involving the fixed account. When your request to transfer will be processed depends on when we receive it: - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Subject to state regulatory requirements, we may suspend or modify transfer privileges at any time. For information on transfers after annuity payouts begin, see "Transfer policies" below. TRANSFER POLICIES - Before annuity payouts begin, you may transfer contract values between the subaccounts. You may also transfer contract values from the subaccounts to the fixed account. However, if you made a transfer from the fixed account to the subaccounts, you may not make a transfer from any subaccount back to the fixed account until the next contract anniversary. - You may transfer contract values from the fixed account to the subaccounts once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). - If we receive your request within 30 days before the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the anniversary. - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the valuation date we receive it. - We will not accept requests for transfers from the fixed account at any other time. - Once annuity payouts begin, you may not make transfers to or from the fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU. -------------------------------------------------------------------------------- 30 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - diluting the value of an investment in an underlying fund in which a subaccount invests; - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and, - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer requests, if, in our sole judgment, the dollar amount of the transfer request would adversely affect unit values. If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - requiring transfer requests to be submitted only by first-class U.S. mail; - not accepting hand-delivered transfer requests or requests made by overnight mail; - not accepting telephone or electronic transfer requests; - requiring a minimum time period between each transfer; - not accepting transfer requests of an agent acting under power of attorney; - limiting the dollar amount that you may transfer at any one time; - suspending the transfer privilege; or - modifying instructions under an automated transfer program to exclude a restricted fund if you do not provide new instructions. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 31 FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable account are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers among your subaccounts or fixed account or partial surrenders from the accounts. You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - Automated transfers from the fixed account to any one of the subaccounts may not exceed an amount that, if continued, would deplete the fixed account within 12 months. - Automated surrenders may be restricted by applicable law under some contracts. - You may not make additional purchase payments if automated partial surrenders are in effect. - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - If a PN program is in effect, you are not allowed to set up an automated transfers. -------------------------------------------------------------------------------- 32 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the fixed account) 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and tape recording calls. We will not allow a telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request in good order at our corporate office before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, or any applicable optional rider charges (see "Charges"), and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the fixed account in the same proportion as your value in each account correlates to your total contract value, unless you request otherwise. The minimum contract value after partial surrender is $600. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - payable to you; - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 33 2 BY WIRE - request that payment be wired to your bank; - bank account must be in the same ownership as your contract; and - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: - the surrender amount includes a purchase payment check that has not cleared; - the NYSE is closed, except for normal holiday and weekend closings; - trading on the NYSE is restricted, according to SEC rules; - an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or - the SEC permits us to delay payment for the protection of security holders. TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations thereunder, unless we have prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: - you are at least age 59 1/2; - you are disabled as defined in the Code; - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - effective Jan. 1, 2009, the distribution is due to plan termination; or - effective Jan. 1, 2009, you are a military reservist. - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. -------------------------------------------------------------------------------- 34 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. The change will become binding on us when we receive and record it. We will honor any change of ownership request received in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the MAV or EEB. The terms of the EEB and the MAV will change due to a change of ownership. If either the new owner or the annuitant is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over". We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If either the new owner or the annuitant is older than age 75, the MAV will terminate. If the MAV on the date of ownership change is greater than the account value on the date of the ownership change, we will set the MAV equal to the account value. Otherwise, the MAV value will not change due to a change in ownership. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in a similar capacity, ownership of the contract may be transferred to the annuitant. BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon the earlier of your death or the annuitant's death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner or the annuitant. If you or the annuitant die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If both you and the annuitant are age 80 or younger on the date of death, the beneficiary receives the greatest of: - contract value less any applicable rider charges; - purchase payments minus adjusted partial surrenders; or - the contract value as of the most recent sixth contract anniversary, preceding the date of death, plus any purchase payments since that anniversary, minus adjusted partial surrenders since that anniversary. If either you or the annuitant are age 81 or older on the date of death, the beneficiary receives the greater of: - contract value less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. PS X DB ADJUSTED PARTIAL SURRENDERS = -------- CV
PS = the amount by which the contract value is reduced as a result of the partial surrender. DB = is the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU AND THE ANNUITANT ARE AGE 80 OR YOUNGER: - You purchase the contract with a payment of $20,000. - On the sixth contract anniversary the contract value grows to $30,000. - During the seventh contract year the contract value falls to $28,000 at which point you take a $1,500 partial surrender, leaving a contract value of $26,500. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 35 We calculate the death benefit as follows: The contract value on the most recent sixth contract anniversary: $30,000.00 plus purchase payments made since that anniversary: +0.00 minus adjusted partial surrenders taken since that anniversary calculated as: $1,500 x $30,000 ---------------- = -1,607.14 $28,000 ---------- for a death benefit of: $28,392.86
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date our death claim requirements are fulfilled. We will determine the contract's value using the next accumulation unit value we calculate on that valuation date. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If you elected any optional contract features and riders your spouse and the next annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - the payout period does not extend beyond the beneficiary's life or life expectancy. QUALIFIED ANNUITIES - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own with the contract value equal to the death benefit that would otherwise have been paid or elect an annuity payout plan or another plan agreed to by us. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. If you elected any optional contract features and riders your spouse and the next annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC unless the beneficiary fails to meet the requirements of using this option. -------------------------------------------------------------------------------- 36 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you or the annuitant is older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to fixed account values during the time you have amounts allocated to the fixed account. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If both you and the annuitant are age 75 or younger at the rider effective date, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract. We will determine the rider effective date for the MAV added after we issue the contract according to terms determined by us and at our sole discretion. On the first contract anniversary after the rider effective date, we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value if the current contract value is higher. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value less any applicable rider charges; or - purchase payments minus adjusted partial surrenders; or - the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. TERMINATING THE MAV - You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. EXAMPLE - You add the MAV when your contract value is $20,000. - On the first contract anniversary after the rider effective date the contract value grows to $24,000. - During the second contract anniversary the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 37 We calculate the death benefit as follows: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $24,000 ---------------- = -1,636 ------- $22,000 for a death benefit of: $22,364
IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to keep the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse at the time he or she elects to continue the contract has not yet reached age 76, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides reduced benefits if you or the annuitant is age 70 or older at the rider effective date and it does not provide any additional benefit before the first contract anniversary after the rider effective date. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor whether or not the EEB is appropriate for your situation. If both you and the annuitant are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract. We will determine the rider effective date for the EEB added after we issue the contract according to terms determined by us and at our sole discretion. The EEB provides that if you or the annuitant dies after the first contract anniversary after the rider effective date, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit") or the MAV death benefit amount, if applicable, PLUS - 40% of your earnings at death if you and the annuitant were under age 70 on the rider effective date; or - 15% of your earnings at death if you or the annuitant were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB: If the rider effective date for the EEB is the contract issue date, earnings at death is an amount equal to: - the standard death benefit amount or the MAV death benefit amount, if applicable (the "death benefit amount") - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount -------------------------------------------------------------------------------- 38 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - MINUS the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date. - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since the rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. EXAMPLE OF THE EEB - You purchased the contract with a purchase payment of $100,000 and both you and the annuitant are under age 70. You selected the MAV and the EEB. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value, or $105,000. You have not reached the first contract anniversary after the rider effective date so the EEB does not provide any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- During the third contract year the contract value remains at $105, 000 and you request a partial surrender of $50,000. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 x $110,000) = $57,619 ---------------------- ------- $105,000
plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The reduction in contract value has no effect. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 39 - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000
- During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,000. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000
- During the eleventh contract year the contract value remains $250,000 and the "new" purchase payment is one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,000 - $105,000) = +58,000 -------- Total death benefit of: $308,000
IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If the spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract then he or she may choose to continue the EEB. In this case, the following conditions will apply: - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date (less any applicable premium tax). During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - the annuity payout plan you select; - the annuitant's age and, in most cases, sex; - the annuity table in the contract; and - the amounts you allocated to the accounts at settlement. -------------------------------------------------------------------------------- 40 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to the age and, when applicable, the sex of the annuitant. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate Table A results in a higher initial payment, but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan: - PLAN A -- LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only one monthly payout, we will not make any more payouts. - PLAN B -- LIFE ANNUITY WITH FIVE, TEN OR 15 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten or 15 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - PLAN C -- LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. - PLAN D -- JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving annuitant. Payouts end with the death of the second annuitant. - PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that an annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the payout that would have been made 7 days prior to the date we determine the present value. For qualified annuities, the discount rate we use in the calculation will be either 4.72% or 6.22%, depending on the applicable assumed investment rate. For nonqualified annuities, the discount rate we use in the calculation will vary between 4.92% and 6.42%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take a surrender. (See "Taxes.") ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 41 certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or - in equal or substantially equal payments over a period not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary; or - over a period certain not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary. IF WE DO NOT RECEIVE INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the annuitant's settlement date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. Contract values that you allocated to the fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you or the annuitant die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay federal income tax until there is a distribution (or deemed distribution) from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. ANNUITY PAYOUTS: Generally, unlike surrenders, the taxation of annuity payouts is subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, including withdrawals under any optional withdrawal benefit rider, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, including surrenders under any optional withdrawal benefit rider, we may deduct federal, and in some cases state, withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. -------------------------------------------------------------------------------- 42 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - because of your death or in the event of nonnatural ownership, the death of the annuitant; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if it is allocable to an investment before Aug. 14, 1982; or - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies and annuity contracts, while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment or annuity contract, (2) the exchange of an endowment contract for an annuity contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract exchanged, (3) the exchange of an annuity contract for another annuity contract. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. For exchanges after 2009, a life insurance policy, annuity or endowment contract or a qualified long-term care insurance contract may be exchanged for a qualified long-term care insurance contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. (If certain life events occur between the date of the partial exchange and the date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed to you like a surrender and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 43 When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for Roth IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, including surrenders under any optional withdrawal benefit rider, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - the payout is a RMD as defined under the Code; - the payout is made on account of an eligible hardship; or - the payout is a corrective distribution. State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - because of your death; -------------------------------------------------------------------------------- 44 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); or - to pay certain medical or education expenses (IRAs only). DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: - the reserve held in each subaccount for your contract; divided by - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 45 SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - laws or regulations change; - the existing funds become unavailable; or - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - add new subaccounts; - combine any two or more subaccounts; - transfer assets to and from the subaccounts or the variable account; and - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio - Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. ("RiverSource Distributors"), our affiliate, serves as the principal underwriter of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. Although we no longer offer the contract for sale, you may continue to make purchase payments if permitted under the terms of your contract. We pay commissions to an affiliated selling firm of up to 1.15% of purchase payments on the contract as well as service/trail commissions of up to 0.25% based on annual total contract value for as long as the contract remains in effect. We also may pay a temporary additional sales commission of up to 1.00% of purchase payments for a period of time we select. These commissions do not change depending on which subaccounts you choose to allocate your purchase payments. From time to time and in accordance with applicable laws and regulations, we may also pay or provide the selling firm with various cash and non-cash promotional incentives including, but not limited to bonuses, short-term sales incentive payments, marketing allowances, costs associated with sales conferences and educational seminars and sales recognition awards. A portion of the payments made to the selling firm may be passed on to its financial advisors in accordance with its internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your financial advisor for further information about what your financial advisor and the selling firm for which he or she works may receive in connection with your contract. We pay the commissions and other compensation described above from our assets. Our assets include: - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- the funds"); - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The funds"); and - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. -------------------------------------------------------------------------------- 46 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part of all of the commissions and other compensation described above indirectly through: - fees and expenses we collect from contract owners, including surrender charges; and - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 47 APPENDIX: CONDENSED FINANCIAL INFORMATION (Unaudited) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each price level is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2008.
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.05 $0.99 $0.91 $0.86 $0.67 $0.89 $1.17 $1.31 $1.00 Accumulation unit value at end of period $0.67 $1.16 $1.05 $0.99 $0.91 $0.86 $0.67 $0.89 $1.17 $1.31 Number of accumulation units outstanding at end of period (000 omitted) 335 310 380 910 866 867 1,024 1,358 1,343 185 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES (09/15/1999) Accumulation unit value at beginning of period $2.12 $1.92 $1.66 $1.52 $1.32 $0.98 $1.26 $1.38 $1.27 $1.00 Accumulation unit value at end of period $1.12 $2.12 $1.92 $1.66 $1.52 $1.32 $0.98 $1.26 $1.38 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 118 134 212 283 298 274 302 394 318 4 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.14 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.14 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 73 115 1,114 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES* (11/01/2005) Accumulation unit value at beginning of period $1.58 $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.58 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,794 1,479 105 5 -- -- -- -- -- -- *Effective Feb. 13, 2009, Putnam VT International New Opportunities Fund - Class IB Shares was substituted with AIM V.I. International Growth Fund, Series II Shares. ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 49 61 653 144 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.81 $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 452 1,081 1,374 1,186 726 969 310 136 -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (08/13/2001) Accumulation unit value at beginning of period $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.24 $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,352 3,600 3,592 2,607 984 472 606 210 -- -- *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS I (09/15/1999) Accumulation unit value at beginning of period $1.54 $1.32 $1.06 $0.94 $0.82 $0.66 $0.84 $1.19 $1.44 $1.00 Accumulation unit value at end of period $0.85 $1.54 $1.32 $1.06 $0.94 $0.82 $0.66 $0.84 $1.19 $1.44 Number of accumulation units outstanding at end of period (000 omitted) 20 155 352 594 675 517 634 781 532 9 ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,327 1,710 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.20 $1.00 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.20 $1.00 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 72 187 2,939 618 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS I* (09/15/1999) Accumulation unit value at beginning of period $1.79 $1.89 $1.61 $1.54 $1.35 $1.06 $1.21 $1.08 $0.92 $1.00 Accumulation unit value at end of period $1.30 $1.79 $1.89 $1.61 $1.54 $1.35 $1.06 $1.21 $1.08 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 524 578 747 1,037 1,067 904 766 506 435 59 *Effective Feb. 13, 2009, American Century VP Value, Class I was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ----------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 24 21 18 5 54 8 8 6 5 -- -----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 48 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.72 $1.20 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,506 5,466 2,834 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.27 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.65 $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 730 772 2,194 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 506 677 1,600 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - U.S. EQUITY FLEX III PORTFOLIO (09/21/1999) (PREVIOUSLY CREDIT SUISSE TRUST - MID-CAP CORE PORTFOLIO) Accumulation unit value at beginning of period $1.45 $1.30 $1.29 $1.21 $1.08 $0.75 $1.07 $1.29 $1.32 $1.00 Accumulation unit value at end of period $0.89 $1.45 $1.30 $1.29 $1.21 $1.08 $0.75 $1.07 $1.29 $1.32 Number of accumulation units outstanding at end of period (000 omitted) 18 28 86 281 378 431 421 467 891 17 ----------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,025 2,116 2,567 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.21 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.21 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,518 7,443 6,582 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.30 $1.17 $1.04 $0.97 $0.92 $0.75 $0.91 $1.00 $1.05 $1.00 Accumulation unit value at end of period $0.75 $1.30 $1.17 $1.04 $0.97 $0.92 $0.75 $0.91 $1.00 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 226 676 754 1,103 1,370 1,249 1,172 1,090 764 445 ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $3.68 $3.20 $2.86 $2.43 $1.96 $1.42 $1.59 $1.65 $1.24 $1.00 Accumulation unit value at end of period $2.21 $3.68 $3.20 $2.86 $2.43 $1.96 $1.42 $1.59 $1.65 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 492 591 664 915 1,023 984 862 781 616 102 ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS (09/15/1999) Accumulation unit value at beginning of period $1.59 $1.37 $1.16 $0.98 $0.87 $0.61 $0.77 $0.99 $1.23 $1.00 Accumulation unit value at end of period $0.89 $1.59 $1.37 $1.16 $0.98 $0.87 $0.61 $0.77 $0.99 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 48 92 298 605 429 144 82 114 116 25 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 $1.00 Accumulation unit value at end of period $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 262 688 836 667 487 349 205 211 148 4 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 $1.00 Accumulation unit value at end of period $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 465 576 738 593 414 242 282 150 9 2 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMPLETON FOREIGN SECURITIES FUND - CLASS 2* (03/01/2002) Accumulation unit value at beginning of period $1.98 $1.73 $1.43 $1.30 $1.11 $0.84 $1.00 -- -- -- Accumulation unit value at end of period $1.18 $1.98 $1.73 $1.43 $1.30 $1.11 $0.84 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 171 272 283 357 348 232 182 -- -- -- *Effective Feb. 13, 2009, FTVIPT Templeton Foreign Securities Fund - Class 2 was substituted with Evergreen VA International Equity Fund - Class 2. ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 $1.00 Accumulation unit value at end of period $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 1,060 2,008 2,339 1,930 834 639 450 200 15 8 ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED SMALL CAP EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.66 $2.00 $1.79 $1.69 $1.46 $1.01 $1.19 $1.15 $1.13 $1.00 Accumulation unit value at end of period $1.09 $1.66 $2.00 $1.79 $1.69 $1.46 $1.01 $1.19 $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 11 12 114 119 150 104 87 97 100 41 -----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 49
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,128 1,678 2,499 3,019 1,522 735 694 943 577 170 ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES ENTERPRISE PORTFOLIO: SERVICE SHARES (05/01/2000) (PREVIOUSLY JANUS ASPEN SERIES MID CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $0.74 $0.61 $0.54 $0.49 $0.41 $0.30 $0.42 $0.70 $1.00 -- Accumulation unit value at end of period $0.41 $0.74 $0.61 $0.54 $0.49 $0.41 $0.30 $0.42 $0.70 -- Number of accumulation units outstanding at end of period (000 omitted) 30 51 125 125 144 215 246 280 343 -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 $1.00 -- Accumulation unit value at end of period $0.29 $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 -- Number of accumulation units outstanding at end of period (000 omitted) 22 37 180 200 333 426 343 202 310 -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,240 5,448 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) (PREVIOUSLY JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $0.82 $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 -- Number of accumulation units outstanding at end of period (000 omitted) 275 272 231 250 132 295 875 606 556 -- ----------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.40 $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.87 $1.40 $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 277 1,072 1,291 1,238 1,236 2,397 636 253 57 8 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 260 317 481 640 522 874 785 913 533 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 92 130 243 558 576 622 485 548 352 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $1.41 $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 821 765 1,065 588 211 139 139 138 -- -- ----------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.05 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.57 $1.07 $1.05 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,971 2,116 1,957 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.62 $1.53 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.96 $1.62 $1.53 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 777 1,099 1,309 756 158 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.41 $1.44 $1.26 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.87 $1.41 $1.44 $1.26 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 646 676 773 643 432 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.27 $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.08 $1.27 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,498 9,223 6,331 3,173 403 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,628 4,555 4,105 -- -- -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 50 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL NEW OPPORTUNITIES FUND - CLASS IB SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.40 $1.24 $0.99 $0.84 $0.75 $0.56 $0.66 $0.92 $1.52 $1.00 Accumulation unit value at end of period $0.80 $1.40 $1.24 $0.99 $0.84 $0.75 $0.56 $0.66 $0.92 $1.52 Number of accumulation units outstanding at end of period (000 omitted) 56 99 131 507 592 707 914 1,347 1,802 87 *Effective Feb. 13, 2009, Putnam VT International New Opportunities Fund - Class IB Shares was substituted with AIM V.I. International Growth Fund, Series II Shares. ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.60 $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 221 370 429 374 375 431 525 1,092 1,330 183 ----------------------------------------------------------------------------------------------------------------------------------- ROYCE CAPITAL FUND - MICRO-CAP PORTFOLIO, INVESTMENT CLASS (09/15/1999) Accumulation unit value at beginning of period $3.53 $3.41 $2.83 $2.55 $2.26 $1.52 $1.75 $1.36 $1.15 $1.00 Accumulation unit value at end of period $1.99 $3.53 $3.41 $2.83 $2.55 $2.26 $1.52 $1.75 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 81 358 405 539 591 516 453 344 193 19 ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.70 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 547 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.13 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,641 3,570 3,666 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.37 $1.30 $1.13 $1.13 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.86 $1.37 $1.30 $1.13 $1.13 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 74 115 77 235 182 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) Accumulation unit value at beginning of period $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.24 $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,353 3,487 2,495 2,068 860 982 627 411 -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 $1.00 Accumulation unit value at end of period $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 602 372 459 623 257 221 120 296 145 10 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 $1.00 Accumulation unit value at end of period $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 10,988 11,779 8,286 4,504 2,098 447 3,911 5,658 6,615 2,266 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were 0.34% and 0.34%, respectively. ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 8,140 9,540 7,272 3,619 2,145 1,691 762 985 410 47 -----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 51
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND* (09/15/1999) Accumulation unit value at beginning of period $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 $1.00 Accumulation unit value at end of period $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 8,565 9,289 9,434 5,165 3,041 1,239 1,262 281 218 23 *Effective Feb. 13, 2009, American Century VP Value, Class I was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 $1.00 Accumulation unit value at end of period $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,397 1,682 2,453 3,121 1,484 172 202 291 266 872 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 2,861 3,115 2,645 1,377 741 714 251 249 4 3 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.06 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.13 $1.06 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,307 2,713 2,959 1,455 5,004 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 713 1,605 1,925 2,397 2,886 4,230 1,480 1,549 1,186 48 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.17 $1.15 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.95 $1.17 $1.15 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,233 2,599 2,358 493 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 -- -- Number of accumulation units outstanding at end of period (000 omitted) 242 268 450 655 523 578 328 38 -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.50 $1.37 $1.20 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.82 $1.50 $1.37 $1.20 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,658 1,406 2,575 115 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 $1.00 -- Accumulation unit value at end of period $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 1,447 1,022 1,170 2,054 1,958 1,381 973 770 285 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 $1.00 Accumulation unit value at end of period $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,394 817 493 688 870 1,097 1,275 592 1 10 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 $1.00 Accumulation unit value at end of period $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,601 3,768 6,049 6,193 2,153 1,664 1,064 1,285 1,762 401 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.34 $1.35 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.34 $1.35 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67 67 184 92 65 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 113 214 333 514 779 660 393 378 286 28 -----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 52 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) Accumulation unit value at beginning of period $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 $1.00 -- Accumulation unit value at end of period $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 -- Number of accumulation units outstanding at end of period (000 omitted) 2,437 1,993 2,144 1,491 475 115 277 3 1 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 1,080 1,307 1,343 1,252 848 143 488 65 81 133 ----------------------------------------------------------------------------------------------------------------------------------- THIRD AVENUE VALUE PORTFOLIO (09/21/1999) Accumulation unit value at beginning of period $3.19 $3.37 $2.92 $2.57 $2.15 $1.52 $1.71 $1.51 $1.08 $1.00 Accumulation unit value at end of period $1.79 $3.19 $3.37 $2.92 $2.57 $2.15 $1.52 $1.71 $1.51 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 123 175 287 371 347 311 279 314 70 120 ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.38 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.34 $1.38 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,700 3,639 4,892 3,642 641 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.62 $1.12 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,961 1,463 1,473 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.21 $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.64 $1.21 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 270 140 1,068 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 $1.00 Accumulation unit value at end of period $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 2,433 2,932 3,471 2,814 1,701 1,136 1,484 769 599 112 ----------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 3,272 3,659 3,852 2,709 1,415 1,250 847 820 990 125 ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.98 $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4 7 31 355 91 66 29 8 -- -- ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $1.45 $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $0.81 $1.45 $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1 5 5 82 84 4 144 1 -- -- ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $0.79 $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 258 231 84 35 10 10 6 2 -- -- -----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 53 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts.............. p. 3 Rating Agencies.......................... p. 4 Revenues Received During Calendar Year 2008................................... p. 4 Principal Underwriter.................... p. 5 Independent Registered Public Accounting Firm................................... p. 5 Financial Statements
-------------------------------------------------------------------------------- 54 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 55 THIS PAGE LEFT BLANK INTENTIONALLY -------------------------------------------------------------------------------- 56 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 57 THIS PAGE LEFT BLANK INTENTIONALLY -------------------------------------------------------------------------------- 58 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 59 THIS PAGE LEFT BLANK INTENTIONALLY -------------------------------------------------------------------------------- 60 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 61 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C)2008-2009 RiverSource Life Insurance Company. All rights reserved. S-6477 N (5/09) PROSPECTUS MAY 1, 2009 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT(R) VARIABLE ANNUITY INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITIES New contracts are not currently being offered. ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10 This prospectus contains information that you should know before investing in the RiverSource Retirement Advisor Advantage Variable Annuity (RAVA Advantage) or the RiverSource Retirement Advisor Select Variable Annuity (RAVA Select). Prospectuses are also available for: - AIM Variable Insurance Funds - AllianceBernstein Variable Products Series Fund, Inc. - American Century Variable Portfolios, Inc. - Calvert Variable Series, Inc. - Columbia Funds Variable Insurance Trust - Credit Suisse Trust - Eaton Vance Variable Trust - Evergreen Variable Annuity Trust - Fidelity(R) Variable Insurance Products - Service Class 2 - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - Goldman Sachs Variable Insurance Trust (VIT) - Janus Aspen Series: Service Shares - MFS(R) Variable Insurance Trust(SM) - Neuberger Berman Advisers Management Trust - Oppenheimer Variable Account Funds - Service Shares - PIMCO Variable Insurance Trust (VIT) - Putnam Variable Trust - Class IB Shares - RiverSource Variable Series Trust (RVST) - The Universal Institutional Funds, Inc. Van Kampen Life Investment Trust - Wanger Advisors Trust - Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The contracts provide for purchase payment credits which we may reverse under certain circumstances. Expenses and surrender charges from contracts with purchase payment credits may be higher than those for contracts without such credits. The amount of the credit may be more than offset by additional charges associated with the credit. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). Variable annuities are insurance products that are complex investment vehicles. Be sure to ask your financial advisor about the variable annuities' features, benefits, risks and fees, and whether the variable annuity is appropriate for you, based upon your financial situation and objectives. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 1 This prospectus provides a general description of the contract. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contract other than those contained in this prospectus or the fund prospectuses. Do not rely on any such information or representations. RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to annuity account values. The fees and charges may also be different between each annuity. TABLE OF CONTENTS KEY TERMS.............................................. 3 THE CONTRACT IN BRIEF.................................. 5 EXPENSE SUMMARY........................................ 7 CONDENSED FINANCIAL INFORMATION (UNAUDITED)............ 15 FINANCIAL STATEMENTS................................... 15 THE VARIABLE ACCOUNT AND THE FUNDS..................... 15 THE FIXED ACCOUNT...................................... 26 BUYING YOUR CONTRACT................................... 26 CHARGES................................................ 29 VALUING YOUR INVESTMENT................................ 33 MAKING THE MOST OF YOUR CONTRACT....................... 34 SURRENDERS............................................. 42 TSA -- SPECIAL PROVISIONS.............................. 43 CHANGING OWNERSHIP..................................... 44 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT.... 44 OPTIONAL BENEFITS...................................... 46 THE ANNUITY PAYOUT PERIOD.............................. 49 TAXES.................................................. 51 VOTING RIGHTS.......................................... 55 SUBSTITUTION OF INVESTMENTS............................ 55 ABOUT THE SERVICE PROVIDERS............................ 55 APPENDIX A: EXAMPLE -- SURRENDER CHARGES............... 58 APPENDIX B: EXAMPLE -- OPTIONAL BENEFITS............... 59 APPENDIX C: CONDENSED FINANCIAL INFORMATION (UNAUDITED).......................................... 63 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION.................. 86
2 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BENEFICIARY: The person you designate to receive benefits in case of the owner's or annuitant's death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB) AND ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. You can elect to purchase either the EEB or the EEP. FIXED ACCOUNT: An account to which you may allocate purchase payments. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contracts owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV): This is an optional benefit you can add to your contract for an additional charge that is intended to provide additional death benefit protection in the event of fluctuating fund values. OWNER (YOU, YOUR): The person or persons who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. PORTFOLIO NAVIGATOR ASSET PROGRAM (PN PROGRAM): This is an optional asset allocation program in which you may elect to participate by adding the optional PN program rider for an additional charge. PURCHASE PAYMENT CREDITS: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 3 QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - Individual Retirement Annuities (IRAs) under Section 408(b) of the Code - Roth IRAs under Section 408A of the Code - SIMPLE IRAs under Section 408(p) of the Code - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code - Plans under Section 401(k) of the Code - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax-deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RIDER: You receive a rider when you purchase the EEB, EEP, MAV and/or PN. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Consists of separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. 4 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS THE CONTRACT IN BRIEF This prospectus describes two contracts. RAVA Advantage offers a choice of a seven-year or a ten-year surrender charge schedule and relatively lower expenses. RAVA Select offers a three-year surrender charge schedule and relatively higher expenses. The information in this prospectus applies to both contracts unless stated otherwise. PURPOSE: The purpose of each contract is to allow you to accumulate money for retirement or a similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the fixed accounts and/or subaccounts under the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payouts of your contract value (less any applicable premium tax). It may not be advantageous for you to purchase this contract in exchange for, or in addition to, an existing annuity or life insurance policy. Generally, you can exchange one annuity for another in a "tax-free" exchange under Section 1035 of the Code. You also generally can exchange a life insurance policy for an annuity. However, before making an exchange, you should compare both contracts carefully because the features and benefits may be different. Fees and charges may be higher or lower on your old contract than on this contract. You may have to pay a surrender charge when you exchange out of your old contract and a new surrender charge period will begin when you exchange into this contract. If the exchange does not qualify for Section 1035 treatment, you also may have to pay federal income tax on the exchange. You should not exchange your old contract for this contract, or buy this contract in addition to your old contract, unless you determine it is in your best interest. TAX-DEFERRED RETIREMENT PLANS: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions (RMDs). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the potential tax implications to you. FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract. Under RAVA Advantage you will receive a full refund of the contract value, less the amount of any purchase payment credits. (See "Valuing Your Investment - Purchase payment credits.") We will not deduct any other charges. Under RAVA Select you will receive a refund of your contract value less the value of the purchase payment credit. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (Exception: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among any or all of: - the subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "The Variable Account and the Funds") - the fixed account, which earns interest at a rate that we adjust periodically. Purchase payment allocations to the fixed account may be subject to special restrictions. (see "The Fixed Account") BUYING YOUR CONTRACT: We no longer offer new contracts. However, you have the option of making additional purchase payments in the future. (see "Buying Your Contract") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the accounts until annuity payouts begin, and once per contract year among the subaccounts after annuity payouts begin. You may establish automated transfers among the accounts. Fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (see "Surrenders") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 5 BENEFITS IN CASE OF DEATH: If you or the annuitant die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: These contracts offer optional features that are available for additional charges if you meet certain criteria. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (see "The Annuity Payout Period") TAXES: Generally, income earned on your contract value grows tax-deferred until you surrender it or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. However, Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. (see "Taxes") 6 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT ARE PAID WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU PAID AT THE TIME THAT YOU BOUGHT THE CONTRACT AND MAY PAY WHEN YOU SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE FOR RAVA ADVANTAGE (Contingent deferred sales load as a percentage of purchase payment surrendered) You select either a seven-year or ten-year surrender charge schedule at the time of application.*
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF NUMBER OF COMPLETED YEARS COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7 0 7 4 8 3 9 2 10 0
* The ten-year surrender charge schedule is not available for contracts issued in Oregon. For contracts issued in Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary. SURRENDER CHARGE FOR RAVA SELECT AND TEXAS CONTRACTS ISSUED PRIOR TO 11/7/2002 (Contingent deferred sales load as a percentage of purchase payment surrendered)
YEARS FROM SURRENDER CHARGE CONTRACT DATE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE FOR RAVA SELECT IN TEXAS CONTRACTS ISSUED ON OR AFTER 11/7/2002 (Contingent deferred sales load)
SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 1 2 3 THEREAFTER 1 8% 7% 6% 0% 2 8 7 0 3 8 0 Thereafter 0
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 7 SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.")
ASSUMED INVESTMENT RATE 3.50% 5.00% Qualified annuity discount rate 4.72% 6.22% Nonqualified annuity discount rate 4.92% 6.42%
THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE $30
(We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) OPTIONAL RIDER FEES (As a percentage of the contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) MAV RIDER FEE 0.25%* EEB RIDER FEE 0.30% EEP RIDER FEE 0.40% PN RIDER FEE Maximum: 0.20% Current: 0.10%
* For contracts purchased before May 1, 2003, the MAV rider fee is 0.15%. ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value)
MORTALITY AND EXPENSE RISK FEE: RAVA ADVANTAGE RAVA SELECT For nonqualified annuities 0.95% 1.20% For qualified annuities 0.75% 1.00%
8 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2008, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.55% 4.35%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Account and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE AND RAVA SELECT* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AIM V.I. Capital Appreciation Fund, Series II 0.61% 0.25% 0.30% 0.01% 1.17% Shares AIM V.I. Capital Development Fund, Series II 0.75 0.25 0.36 0.01 1.37(1) Shares AIM V.I. Dynamics Fund, Series I Shares 0.75 -- 0.47 -- 1.22 AIM V.I. Financial Services Fund, Series I Shares 0.75 -- 0.48 0.01 1.24(2) AIM V.I. Global Health Care Fund, Series II 0.75 0.25 0.38 0.01 1.39(1) Shares AIM V.I. International Growth Fund, Series II 0.71 0.25 0.35 0.02 1.33(1) Shares AIM V.I. Technology Fund, Series I Shares 0.75 -- 0.41 0.01 1.17(2) AllianceBernstein VPS Global Technology Portfolio 0.75 0.25 0.18 -- 1.18 (Class B) AllianceBernstein VPS Growth and Income Portfolio 0.55 0.25 0.07 -- 0.87 (Class B) AllianceBernstein VPS International Value 0.74 0.25 0.07 -- 1.06 Portfolio (Class B) American Century VP International, Class II 1.24 0.25 0.01 -- 1.50 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class II 0.84 0.25 0.01 -- 1.10 Calvert Variable Series, Inc. Social Balanced 0.70 -- 0.22 -- 0.92 Portfolio Columbia Marsico Growth Fund, Variable Series, 0.92 -- 0.04 -- 0.96 Class A Columbia Marsico International Opportunities 1.02 0.25 0.12 -- 1.39 Fund, Variable Series, Class B Credit Suisse Trust - Commodity Return Strategy 0.50 0.25 0.31 -- 1.06(3) Portfolio Eaton Vance VT Floating-Rate Income Fund 0.58 0.25 0.37 -- 1.20 Evergreen VA Fundamental Large Cap Fund - Class 2 0.61 0.25 0.19 0.01 1.06 Evergreen VA International Equity Fund - Class 2 0.42 0.25 0.25 -- 0.92 Fidelity(R) VIP Contrafund(R) Portfolio Service 0.56 0.25 0.10 -- 0.91 Class 2 Fidelity(R) VIP Growth & Income Portfolio Service 0.46 0.25 0.13 -- 0.84 Class 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 0.56 0.25 0.12 -- 0.93 Fidelity(R) VIP Overseas Portfolio Service Class 0.71 0.25 0.16 -- 1.12 2
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 9 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE AND RAVA SELECT* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES FTVIPT Franklin Global Real Estate Securities 0.80% 0.25% 0.30% --% 1.35%((4)) Fund - Class 2 FTVIPT Franklin Small Cap Value Securities 0.52 0.25 0.16 0.01 0.94(5) Fund - Class 2 FTVIPT Mutual Shares Securities Fund - Class 2 0.60 0.25 0.13 -- 0.98 Goldman Sachs VIT Mid Cap Value 0.80 -- 0.04 -- 0.84 Fund - Institutional Shares Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(6) Fund - Institutional Shares Janus Aspen Series Global Technology Portfolio: 0.64 0.25 0.22 -- 1.11 Service Shares Janus Aspen Series Janus Portfolio: Service 0.64 0.25 0.02 0.01 0.92 Shares (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) Janus Aspen Series Overseas Portfolio: Service 0.64 0.25 0.05 -- 0.94 Shares (previously Janus Aspen Series International Growth Portfolio: Service Shares) MFS(R) Investors Growth Stock Series - Service 0.75 0.25 0.10 -- 1.10 Class MFS(R) New Discovery Series - Service Class 0.90 0.25 0.11 -- 1.26 MFS(R) Utilities Series - Service Class 0.72 0.25 0.09 -- 1.06 Neuberger Berman Advisers Management Trust 1.13 0.25 0.21 -- 1.59(7) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service 0.63 0.25 0.02 -- 0.90 Shares Oppenheimer Main Street Small Cap Fund/VA, 0.70 0.25 0.04 -- 0.99 Service Shares Oppenheimer Strategic Bond Fund/VA, Service 0.55 0.25 0.04 0.01 0.85(8) Shares PIMCO VIT All Asset Portfolio, Advisor Share 0.43 0.25 -- 0.76 1.44(9) Class Putnam VT Global Health Care Fund - Class IB 0.70 0.25 0.16 0.01 1.12 Shares (previously Putnam VT Health Sciences Fund - Class IB Shares) Putnam VT International Equity Fund - Class IB 0.75 0.25 0.12 0.01 1.13 Shares Putnam VT Vista Fund - Class IB Shares 0.65 0.25 0.15 0.01 1.06 RVST Disciplined Asset Allocation -- 0.25 0.89 0.69 1.83(10) Portfolios - Aggressive RVST Disciplined Asset Allocation -- 0.25 0.61 0.66 1.52(10) Portfolios - Conservative RVST Disciplined Asset Allocation -- 0.25 0.30 0.68 1.23(10) Portfolios - Moderate RVST Disciplined Asset Allocation -- 0.25 0.36 0.68 1.29(10) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation -- 0.25 0.50 0.67 1.42(10) Portfolios - Moderately Conservative RVST RiverSource Partners Variable 0.77 0.13 0.16 -- 1.06(11) Portfolio - Fundamental Value Fund RVST RiverSource Partners Variable 0.89 0.13 3.33 -- 4.35(11) Portfolio - Select Value Fund RVST RiverSource Partners Variable 0.95 0.13 0.19 0.05 1.32(11) Portfolio - Small Cap Value Fund RVST RiverSource Variable Portfolio - Balanced 0.42 0.13 0.16 -- 0.71 Fund RVST RiverSource Variable Portfolio - Cash 0.32 0.13 0.17 -- 0.62 Management Fund RVST RiverSource Variable Portfolio - Diversified 0.44 0.13 0.15 -- 0.72 Bond Fund RVST RiverSource Variable Portfolio - Diversified 0.59 0.13 0.14 -- 0.86 Equity Income Fund RVST RiverSource Variable Portfolio - Dynamic 0.44 0.13 0.15 0.02 0.74 Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) RVST RiverSource Variable Portfolio - Global Bond 0.66 0.13 0.18 -- 0.97(11) Fund RVST RiverSource Variable Portfolio - Global 0.44 0.13 0.17 -- 0.74(11) Inflation Protected Securities Fund RVST RiverSource Variable Portfolio - High Yield 0.59 0.13 0.17 -- 0.89 Bond Fund RVST RiverSource Variable Portfolio - Income 0.61 0.13 0.18 -- 0.92 Opportunities Fund RVST RiverSource Variable Portfolio - Mid Cap 0.58 0.13 0.17 -- 0.88(11) Growth Fund RVST RiverSource Variable Portfolio - Mid Cap 0.73 0.13 0.18 -- 1.04 Value Fund
10 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE AND RAVA SELECT* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES RVST RiverSource Variable Portfolio - S&P 500 0.22% 0.13% 0.19% 0.01% 0.55%((11)) Index Fund RVST RiverSource Variable Portfolio - Short 0.48 0.13 0.18 -- 0.79 Duration U.S. Government Fund RVST Seligman Variable Portfolio - Growth Fund 0.45 0.13 0.17 0.04 0.79 (previously RVST RiverSource Variable Portfolio - Growth Fund) RVST Seligman Variable Portfolio - Larger-Cap 0.48 0.13 0.67 -- 1.28(11) Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) RVST Seligman Variable Portfolio - Smaller-Cap 0.62 0.13 0.31 -- 1.06(11) Value Fund (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) RVST Threadneedle Variable Portfolio - Emerging 1.15 0.13 0.33 -- 1.61 Markets Fund RVST Threadneedle Variable 0.82 0.13 0.20 -- 1.15 Portfolio - International Opportunity Fund Van Kampen Life Investment Trust Comstock 0.56 0.25 0.04 -- 0.85 Portfolio, Class II Shares Van Kampen UIF Global Real Estate Portfolio, 0.85 0.35 0.37 -- 1.57(12) Class II Shares Van Kampen UIF Mid Cap Growth Portfolio, Class II 0.75 0.35 0.31 -- 1.41(12) Shares Wanger International 0.84 -- 0.18 -- 1.02 Wanger USA 0.85 -- 0.11 -- 0.96 Wells Fargo Advantage VT Asset Allocation Fund 0.55 0.25 0.23 0.01 1.04(13) Wells Fargo Advantage VT International Core Fund 0.75 0.25 0.43 -- 1.43(13) Wells Fargo Advantage VT Opportunity Fund 0.73 0.25 0.20 0.04 1.22(13) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 -- 1.26(13)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.45% of average daily net assets. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.36% for AIM V.I. Capital Development Fund, Series II Shares, 1.38% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (2) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series I shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.30%. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.23% for AIM V.I. Financial Services Fund, Series I Shares and 1.16% for AIM V.I. Technology Fund, Series I Shares. (3) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95%. (4) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.03%. (5) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent of the Fund's fees and expenses of the acquired fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.93% (6) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. After expense reductions, net expenses would be 0.71%. (7) Neuberger Berman Management Inc. ("NBM") has undertaken through Dec. 31, 2012, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.53%. (8) The other expenses in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2008, the transfer agent fees did not exceed this expense limitation. In addition, for Oppenheimer Strategic Bond Fund/VA, RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 11 Service Shares, the Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82%. (9) PIMCO has contractually agreed through Dec. 31, 2009, to reduce its advisory fee to the extent that the acquired fund fees and expenses attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.42%. (10) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. (11) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.99% for RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund, 1.14% for RVST RiverSource Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund, 0.96% for RVST RiverSource Variable Portfolio - Global Bond Fund, 0.74% for RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund, 1.00% for RVST RiverSource Variable Portfolio - Mid Cap Growth Fund, 0.53% for RVST RiverSource Variable Portfolio - S&P 500 Index Fund, 1.04% for RVST Seligman Variable Portfolio - Larger-Cap Value Fund and 1.12% for RVST Seligman Variable Portfolio - Smaller-Cap Value Fund. (12) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursements, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.15% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. The Adviser reserves the right to terminate any waivers and/or reimbursements at any time and without notice. (13) The adviser has contractually agreed through April 30, 2010 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After this time, the net operating expense ratio may be increased only with approval of the Board of Trustees. After fee waivers and expense reimbursements, net expenses would be 1.00% for Wells Fargo Advantage VT Asset Allocation Fund, 1.00% for Wells Fargo Advantage VT International Core Fund, 1.07% for Wells Fargo Advantage VT Opportunity Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. 12 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THESE CONTRACTS WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES*, VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expense of any of the funds. They assume that you select the optional MAV, EEP and PN**. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT CONTRACT OR IF YOU SELECT AN THE END OF THE APPLICABLE TIME ANNUITY PAYOUT PLAN AT THE END OF PERIOD: THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE With a ten-year surrender charge schedule $1,434 $2,677 $3,786 $6,171 $634 $1,877 $3,086 $5,971 RAVA ADVANTAGE With a seven-year surrender charge schedule 1,334 2,577 3,586 5,971 634 1,877 3,086 5,971 RAVA SELECT 1,361 2,651 3,200 6,151 661 1,951 3,200 6,151 RAVA SELECT - TEXAS 1,461 2,551 3,200 6,151 661 1,951 3,200 6,151 IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT CONTRACT OR IF YOU SELECT AN THE END OF THE APPLICABLE TIME ANNUITY PAYOUT PLAN AT THE END OF PERIOD: THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE With a ten-year surrender charge schedule $1,413 $2,620 $3,698 $6,031 $613 $1,820 $2,998 $5,831 RAVA ADVANTAGE With a seven-year surrender charge schedule 1,313 2,520 3,498 5,831 613 1,820 2,998 5,831 RAVA SELECT 1,341 2,595 3,114 6,015 641 1,895 3,114 6,015 RAVA SELECT - TEXAS 1,441 2,495 3,114 6,015 641 1,895 3,114 6,015
MINIMUM EXPENSES. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT CONTRACT OR IF YOU SELECT AN THE END OF THE APPLICABLE TIME ANNUITY PAYOUT PLAN AT THE END OF PERIOD: THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE With a ten-year surrender charge schedule $957 $1,288 $1,542 $2,040 $157 $488 $842 $1,840 RAVA ADVANTAGE With a seven-year surrender charge schedule 857 1,188 1,342 1,840 157 488 842 1,840 RAVA SELECT 884 1,271 982 2,129 184 571 982 2,129 RAVA SELECT - TEXAS 984 1,171 982 2,129 184 571 982 2,129
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 13
IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT CONTRACT OR IF YOU SELECT AN THE END OF THE APPLICABLE TIME ANNUITY PAYOUT PLAN AT THE END OF PERIOD: THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE With a ten-year surrender charge schedule $937 $1,226 $1,436 $1,815 $137 $426 $736 $1,615 RAVA ADVANTAGE With a seven-year surrender charge schedule 837 1,126 1,236 1,615 137 426 736 1,615 RAVA SELECT 864 1,208 876 1,910 164 508 876 1,910 RAVA SELECT - TEXAS 964 1,108 876 1,910 164 508 876 1,910
* In these examples, the $30 contract administrative charge is approximated as a .035% charge for RAVA Advantage, a .049% charge for RAVA Select and a .049% for RAVA Select - Texas. These percentages were determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to each contract by the total average net assets that are attributable to that contract. ** Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for the optional rider is reflected rather than the fee that is currently being charged. 14 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information for the subaccounts in Appendix C. We do not include any condensed financial information for subaccounts that are new and did not have any activity as of the financial statement date. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the subaccounts in the SAI. The SAI does not include audited financial statements for subaccounts that are new and did not have any activity as of the financial statement date. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contract currently offers subaccounts investing in shares of the funds listed in the table below. - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 15 variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue, including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including expense payments and non-cash compensation. The amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates. RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in 2008. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. 16 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 17 UNLESS AN ASSET ALLOCATION PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- AIM V.I. Capital Seeks growth of capital. Invesco Aim Advisors, Appreciation Inc. adviser, advisory Fund, Series II entities affiliated with Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Capital Seeks long-term growth of capital. Invesco Aim Advisors, Development Fund, Inc. adviser, advisory Series II Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Dynamics Seeks long-term capital growth. Invesco Aim Advisors, Fund, Series I Inc. adviser, advisory Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Seeks capital growth. Invesco Aim Advisors, Financial Inc. adviser, advisory Services Fund, entities affiliated with Series I Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ----------------------------------------------------------------------------------------
18 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- AIM V.I. Global Seeks capital growth. Invesco Aim Advisors, Health Care Fund, Inc. adviser, advisory Series II Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Seeks long-term growth of capital. Invesco Aim Advisors, International Inc. adviser, advisory Growth Fund, entities affiliated with Series II Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Seeks capital growth. Invesco Aim Advisors, Technology Fund, Inc. adviser, advisory Series I Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug.1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Global Technology Portfolio (Class B) ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Growth and Income Portfolio (Class B) ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS International Value Portfolio (Class B) ---------------------------------------------------------------------------------------- American Century Seeks capital growth. American Century Global VP International, Investment Management, Class II Inc. ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Mid Cap Value, secondary objective. Investment Management, Class II Inc. ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. American Century VP Ultra(R), Investment Management, Class II Inc. ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 19
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Value, Class secondary objective. Investment Management, II Inc. ---------------------------------------------------------------------------------------- Calvert Variable Seeks competitive total return through Calvert Asset Management Series, Inc. actively managed portfolio of stocks, bonds Company, Inc., adviser. Social Balanced and money market instruments which offer New Amsterdam Partners, Portfolio income and capital growth opportunity and LLP, subadviser on which satisfy Portfolio's investment and equity portion; no social criteria. subadviser on fixed- income portion. ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management Growth Fund, Advisors, LLC, adviser; Variable Series, Marsico Capital Class A Management, LLC, sub- adviser. ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management International Advisors, LLC, adviser; Opportunities Marsico Capital Fund, Variable Management, LLC, sub- Series, Class B adviser. ---------------------------------------------------------------------------------------- Credit Suisse Seeks total return. Credit Suisse Asset Trust - Commodity Management, LLC Return Strategy Portfolio ---------------------------------------------------------------------------------------- Eaton Vance VT Seeks high level of current income. Eaton Vance Management Floating-Rate Income Fund ---------------------------------------------------------------------------------------- Evergreen VA Seeks capital growth with the potential for Evergreen Investment Fundamental Large current income. Management Company, LLC Cap Fund - Class 2 ---------------------------------------------------------------------------------------- Evergreen VA Seeks long-term capital growth and Evergreen Investment International secondarily, modest income. Management Company, LLC Equity Fund - Class 2 ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Normally invests primarily in common Research Company (FMR), Portfolio Service stocks. Invests in securities of companies investment manager; FMR Class 2 whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks high total return through a FMR, investment manager; Growth & Income combination of current income and capital FMR U.K., FMR Far East, Portfolio Service appreciation. Normally invests a majority sub-advisers. Class 2 of assets in common stocks with a focus on those that pay current dividends and show potential for capital appreciation. Invests in domestic and foreign issuers. The Fund invests in either "growth" stocks or "value" stocks or both. ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Mid Cap Portfolio invests primarily in common stocks. FMR U.K., FMR Far East, Service Class 2 Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. ----------------------------------------------------------------------------------------
20 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Overseas invests primarily in common stocks FMR U.K., FMR Far East, Portfolio Service allocating investments across different Fidelity International Class 2 countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities. (FIIA) and FIIA U.K., sub-advisers. ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks high total return. Franklin Templeton Global Real Institutional, LLC Estate Securities Fund - Class 2 ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks long-term total return. Franklin Advisory Small Cap Value Services, LLC Securities Fund - Class 2 ---------------------------------------------------------------------------------------- FTVIPT Mutual Seeks capital appreciation, with income as Franklin Mutual Shares Securities a secondary goal. Advisers, LLC Fund - Class 2 ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term capital appreciation. Goldman Sachs Asset Mid Cap Value Management, L.P. Fund - Instituti- onal Shares ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. dividend income. Management, L.P. Equity Fund - Instituti- onal Shares ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital. Janus Capital Management Series Global LLC Technology Portfolio: Service Shares ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital in a Janus Capital Management Series Janus manner consistent with the preservation of LLC Portfolio: capital. Service Shares (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital. Janus Capital Management Series Overseas LLC Portfolio: Service Shares (previously Janus Aspen Series International Growth Portfolio: Service Shares) ---------------------------------------------------------------------------------------- MFS(R) Investors Seeks capital appreciation. MFS Investment Growth Stock Management(R) Series - Service Class ---------------------------------------------------------------------------------------- MFS(R) New Seeks capital appreciation. MFS Investment Discovery Management(R) Series - Service Class ---------------------------------------------------------------------------------------- MFS(R) Utilities Seeks total return. MFS Investment Series - Service Management(R) Class ---------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers investing primarily in common stocks of Management Inc. Management Trust foreign companies. International Portfolio (Class S) ---------------------------------------------------------------------------------------- Oppenheimer Seeks long-term capital appreciation. OppenheimerFunds, Inc. Global Securities Fund/VA, Service Shares ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 21
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- Oppenheimer Main Seeks capital appreciation. OppenheimerFunds, Inc. Street Small Cap Fund/VA, Service Shares ---------------------------------------------------------------------------------------- Oppenheimer Seeks high level of current income OppenheimerFunds, Inc. Strategic Bond principally derived from interest on debt Fund/VA, Service securities. Shares ---------------------------------------------------------------------------------------- PIMCO VIT All Seeks maximum real return consistent with Pacific Investment Asset Portfolio, preservation of real capital and prudent Management Company LLC Advisor Share investment management period. Class ---------------------------------------------------------------------------------------- Putnam VT Global Seeks capital appreciation. Putnam Investment Health Care Management, LLC Fund - Class IB Shares (previously Putnam VT Health Sciences Fund - Class IB Shares) ---------------------------------------------------------------------------------------- Putnam VT Seeks capital appreciation. Putnam Investment International Management, LLC Equity Fund - Class IB Shares ---------------------------------------------------------------------------------------- Putnam VT Vista Seeks capital appreciation. Putnam Investment Fund - Class IB Management, LLC Shares ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with an aggressive level of LLC Portfolios - Agg- risk. This is a "fund of funds" and seeks ressive to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a conservative level of LLC Portfolios - Con- risk. This is a "fund of funds" and seeks servative to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate level of risk. LLC Portfolios - Mod- This is a "fund of funds" and seeks to erate achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ----------------------------------------------------------------------------------------
22 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate aggressive level LLC Portfolios - - of risk. This is a "fund of funds" and Moderately seeks to achieve its objective by investing Aggressive in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate conservative LLC Portfolios - - level of risk. This is a "fund of funds" Moderately and seeks to achieve its objective by Conservative investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital growth. RiverSource Investments, Partners Variable LLC, adviser; Davis Portfolio - Fund- Selected Advisers, L.P., amental Value subadviser. Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Partners Variable LLC, adviser; Systematic Portfolio - Sele- Financial Management, ct Value Fund L.P. and WEDGE Capital Management L.L.P., sub- advisers. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Partners Variable LLC, adviser; Barrow, Portfolio - Small Hanley, Mewhinney & Cap Value Fund Strauss, Inc., Denver Investment Advisors LLC, Donald Smith & Co., Inc., River Road Asset Management, LLC and Turner Investment Partners, Inc., subadvisers. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum total investment return RiverSource Investments, Variable through a combination of capital growth and LLC Portfolio - Bala- current income. nced Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum current income consistent RiverSource Investments, Variable with liquidity and stability of principal. LLC Portfolio - Cash Management Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income while RiverSource Investments, Variable attempting to conserve the value of the LLC Portfolio - Dive- investment for the longest period of time. rsified Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and, as RiverSource Investments, Variable a secondary goal, steady growth of capital. LLC Portfolio - Dive- rsified Equity Income Fund ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 23
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST RiverSource Seeks capital appreciation. RiverSource Investments, Variable LLC Portfolio - Dyna- mic Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks high total RiverSource Investments, Variable return through income and growth of LLC Portfolio - Glob- capital. al Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks total RiverSource Investments, Variable return that exceeds the rate of inflation LLC Portfolio - Glob- over the long-term. al Inflation Protected Securities Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high current income, with capital RiverSource Investments, Variable growth as a secondary objective. LLC Portfolio - High Yield Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high total return through current RiverSource Investments, Variable income and capital appreciation. LLC Portfolio - Inco- me Opportunities Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Growth Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Value Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Variable LLC Portfolio - S&P 500 Index Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and RiverSource Investments, Variable safety of principal consistent with LLC Portfolio - Short investment in U.S. government and Duration U.S. government agency securities. Government Fund ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC Portfolio - Grow- th Fund (previously RVST RiverSource Variable Portfolio - Grow- th Fund) ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Larg- er-Cap Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) ----------------------------------------------------------------------------------------
24 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Kenwood Portfolio - Smal- Capital Management LLC, ler-Cap Value sub-adviser. Fund (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Portfolio - Emer- Threadneedle ging Markets Fund International Limited, an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks capital appreciation. RiverSource Investments, Variable LLC, adviser; Portfolio - In- Threadneedle ternational International Limited, Opportunity Fund an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ---------------------------------------------------------------------------------------- Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust investments in equity securities, including Management Comstock common stocks, preferred stocks and Portfolio, Class securities convertible into common and II Shares preferred stocks. ---------------------------------------------------------------------------------------- Van Kampen UIF Seeks current income and capital Morgan Stanley Global Real appreciation. Investment Management Estate Portfolio, Inc., doing business as Class II Shares Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. ---------------------------------------------------------------------------------------- Van Kampen UIF Seeks long-term capital growth. Morgan Stanley Mid Cap Growth Investment Management Portfolio, Class Inc., doing business as II Shares Van Kampen. ---------------------------------------------------------------------------------------- Wanger Seeks long-term growth of capital. Columbia Wanger Asset International Management, L.P. ---------------------------------------------------------------------------------------- Wanger USA Seeks long-term capital appreciation. Columbia Wanger Asset Management, L.P. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Asset Allocation adviser; Wells Capital Fund Management Incorporated, sub-adviser. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, International adviser; Wells Capital Core Fund Management Incorporated, sub-adviser. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Opportunity Fund adviser; Wells Capital Management Incorporated, sub-adviser. ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 25
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Small Cap Growth adviser; Wells Capital Fund Management Incorporated, sub-adviser. ----------------------------------------------------------------------------------------
THE FIXED ACCOUNT You also may allocate purchase payments and purchase payment credits or transfer contract value to the fixed account. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of the company. The value of the fixed account increases as we credit interest to the account. Purchase payments and transfers to the fixed account become part of our general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the fixed account is guaranteed for one year. Thereafter, we will change the rates from time to time at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and RiverSource Life's revenues and expenses. Interests in the fixed account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract -- Transfer policies" for restrictions on transfers involving the fixed account.) BUYING YOUR CONTRACT New contracts are not currently being offered. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can become an annuitant if you are 90 or younger. The contract provides for allocation of purchase payments and purchase payment credits to the subaccounts of the variable account and/or to the fixed account in tenth of percent increments. For contracts issued on or after July 1, 2003, we reserve the right to limit the amount of any purchase payment allocated to the fixed account to 30% of the purchase payment although currently we allow more than 30% of a purchase payment to be so allocated to the fixed account. We applied your initial purchase payment and purchase payment credits to the fixed account and subaccounts you selected within two business days after we received it at our corporate office. We will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. When we processed your application, we established the settlement date as the maximum age (or contract anniversary if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. 26 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - no earlier than the 60th day after the contract's effective date; and - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75, or a date that has been agreed to by us. FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - for IRAs, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2; or - for all other qualified annuities, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2, or, if later, retires (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs or TSAs, and in that case, may delay the annuity payout start date for these contracts. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit to your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their complete claim. A beneficiary will bear the investment risk of the variable account until we receive the beneficiary's complete claim. If there is no named beneficiary, then the default provisions of your contract will apply. (See "Benefits in Case of Death" for more about beneficiaries.) PURCHASE PAYMENTS MINIMUM ALLOWABLE PURCHASE PAYMENTS* If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month
RAVA ADVANTAGE RAVA SELECT If paying by any other method: initial payment for qualified annuities $1,000 $ 2,000 initial payment for nonqualified annuities 2,000 10,000 for any additional payments 50 50
* Installments must total at least $600 in the first year. If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in Illinois and New Jersey. MAXIMUM ALLOWABLE ANNUAL PURCHASE PAYMENTS** based on the age of you or the annuitant, whoever is older, on the effective date of the contract:
RAVA ADVANTAGE RAVA SELECT through age 85 100,000 100,000 for ages 86 to 90 50,000 50,000
**These annual contribution limits apply in total to all RiverSource Life annuities you own. We reserve the right to increase maximum limits. For qualified annuities the tax-deferred retirement plan's or the Code's limits on annual contributions also apply. Purchase payment amounts and purchase payment timing may vary by state and may be limited under the terms of your contract. For RAVA Advantage, except for TSAs, purchase payments are limited and may not be made after the third contract anniversary in Massachusetts, Washington and Oregon. Subject to state law limitations, we reserve the right to not accept purchase payments allocated to the fixed account for twelve months following either: 1. a partial surrender from the fixed account; or 2. a lump sum transfer from the fixed account to a subaccount. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 27 HOW TO MAKE PURCHASE PAYMENTS 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 BY SCHEDULED PAYMENT PLAN We can help you set up: - an automatic payroll deduction, salary reduction or other group billing arrangement; or - a bank authorization. PURCHASE PAYMENT CREDITS FOR RAVA ADVANTAGE: we add a credit to your contract in the amount of: - 1% of each purchase payment received: - if you elect the ten-year surrender charge schedule for your contract*; OR - if you elect the seven-year surrender charge schedule for your contract AND your initial purchase payment to the contract is at least $100,000. - 2% of each purchase payment received if you elect the ten-year surrender charge schedule for your contract* AND your initial purchase payment to the contract is at least $100,000. To the extent a death benefit or surrender payment includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a lump sum death benefit under this contract; or (2) a request for surrender charge waiver due to Nursing Home Confinement, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits.* Surrender charges under RAVA Advantage may be higher and longer than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, there could be circumstances where you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full surrender in years five through ten. We pay for the credits under RAVA Advantage primarily through revenue from a higher and longer surrender charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. FOR RAVA SELECT: we add a credit to your contract in the amount of 1% of each purchase payment received in the first contract year if your initial purchase payment to the contract is at least $250,000. To the extent a death benefit or surrender payment includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a lump sum death benefit under this contract; or (2) a request for surrender charge waiver due to Hospital or Nursing Home Confinement, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits.* The amount we pay to you under these circumstances will always equal or exceed your surrender value. Expenses under RAVA Select may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, you may be worse off purchasing this contract. We pay for the credits under RAVA Select primarily through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. We fund all credits from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. 28 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS * The ten-year surrender charge under RAVA Advantage is not available in Oregon. Contracts purchased in Oregon are only eligible for a 1% purchase payment credit if the initial purchase payment is at least $100,000. For contracts purchased in Oregon, we will not assess a charge equal to the amount of the purchase payment credits upon payment of a death benefit or surrender. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief -- Free look period.") We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. LIMITATIONS ON THE USE OF CONTRACTS If mandated by applicable law, including, but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values or to satisfy other statutory obligations. Under these circumstances we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or a court of competent jurisdiction. CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. We deduct $30 from the contract value of RAVA Advantage or RAVA Select on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the fixed account in the same proportion your interest in each account bears to your total contract value. We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the charge at the time of surrender regardless of the contract value or purchase payments made. We cannot increase the annual contract administrative charge and it does not apply after annuity payouts begin or when we pay death benefits. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee, which is a percentage of their average daily net assets, on an annual basis as follows:
RAVA ADVANTAGE RAVA SELECT For nonqualified annuities 0.95% 1.20% For qualified annuities 0.75% 1.00%
This fee covers the mortality and expense risk that we assume. This fee does not apply to the fixed account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge, discussed in the following paragraphs, will cover sales and distribution expenses. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 29 MAV RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.25%(2) of your contract value of RAVA Advantage or RAVA Select on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date, and it does not apply after annuity payouts begin or when we pay death benefits. EEB RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.30% of your contract value of RAVA Advantage or RAVA Select on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. EEP RIDER FEE We charge a fee for the optional feature only if you select it(1). If selected, we deduct an annual fee of 0.40% of your contract value of RAVA Advantage or RAVA Select on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. (1) You may select any one of the MAV, EEB or EEP riders. Or you may select the MAV and either the EEB or the EEP. However, you cannot select both the EEB and the EEP. Riders may not be available in all states. The MAV, EEB and EEP riders are only available if you and the annuitant are age 75 or younger at the rider effective date. EEP is only available on contracts purchased through a transfer or exchange. (2) For contracts purchased before May 1, 2003, the MAV rider fee for RAVA Advantage and RAVA Select is 0.15%. PN RIDER FEE We charge a fee for this optional feature only if you select it. This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value, less any excluded accounts (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). In Washington the fee will only be deducted from the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If we allow you to add the rider other than on a contract anniversary, we reserve the right to adjust the rider fee for the number of calendar days coverage was in place. If the rider terminates for any reason other than on a contract anniversary, we reserve the right to deduct this fee at that time and adjust it for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary, we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. For RAVA Advantage, a surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven or ten years before surrender. For RAVA Select, a surrender charge applies if you surrender all or part of your purchase payments in the first three 30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS contract years. You select the surrender charge period at the time of your application for the contract. The surrender charge percentages that apply to you are shown in your contract. You may surrender an amount during any contract year without a surrender charge. We call this amount the Total Free Amount (TFA). The TFA is defined as the greater of: - 10% of the contract value on the prior contract anniversary, and - current contract earnings. NOTE: We determine current contract earnings by looking at the entire contract value, not the earnings of any particular subaccount or the fixed account. Amounts surrendered in excess of the TFA may be subject to a surrender charge as described below. SURRENDER CHARGE UNDER RAVA ADVANTAGE: For purposes of calculating any surrender charge under RAVA Advantage, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 3. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
TEN-YEAR SCHEDULE* NUMBER OF COMPLETED YEARS SEVEN-YEAR SCHEDULE FROM DATE SURRENDER CHARGE NUMBER OF COMPLETED YEARS FROM SURRENDER CHARGE OF EACH PERCENTAGE DATE OF EACH PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7 0 7 4 8 3 9 2 10 0
* The ten-year surrender charge schedule under RAVA Advantage is not available in Oregon. For contracts issued in Massachusetts, Oregon and Washington, we waive surrender charges after the tenth contract anniversary. SURRENDER CHARGE UNDER RAVA SELECT (IN TEXAS RAVA SELECT CONTRACTS ISSUED PRIOR TO 11/7/2002): For purposes of calculating any surrender charge under RAVA Select, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 31 2. Next, if necessary, we surrender purchase payments. We do assess a surrender charge on these payments during the first three contract years as follows:
CONTRACT YEAR SURRENDER CHARGE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE UNDER RAVA SELECT CONTRACTS ISSUED IN TEXAS ON OR AFTER 11/7/2002: For purposes of calculating any surrender charge under RAVA Select in Texas, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We surrender amounts from the oldest purchase payments first. We do assess a surrender charge on these payments during the first three contract years as follows:
SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 1 2 3 THEREAFTER 1 8% 7% 6% 0% 2 8 7 0 3 8 0 Thereafter 0
PARTIAL SURRENDERS UNDER RAVA ADVANTAGE AND RAVA SELECT For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. The surrender charge percentage is applied to this total amount. We pay you the amount you requested. For an example, see Appendix A. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate.
ASSUMED INVESTMENT RATE 3.50% 5.00% Qualified annuity discount rate 4.72% 6.22% Nonqualified annuity discount rate 4.92% 6.42%
WAIVER OF SURRENDER CHARGES We do not assess surrender charges for: - surrenders of any contract earnings; - surrenders of amounts totaling up to 10% of the contract value on the prior contract anniversary to the extent it exceeds contract earnings; - For RAVA Advantage, amounts surrendered after the tenth contract anniversary in Massachusetts, Washington and Oregon; - required minimum distributions from a qualified annuity provided the amount is no greater than the RMDs for the specific contract in force; - contracts settled using an annuity payout plan, unless an Annuity Payout Plan E is later surrendered; - amounts we refund to you during the free look period*; - death benefits*; and - surrenders you make under your contract's "Waiver of Surrender Charges for Hospital or Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 on the date that we issue 32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS the contract. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender. Under RAVA Advantage, you must provide proof satisfactory to us that, as of the date you request the surrender, you or the annuitant are confined to a nursing home and have been for the prior 90 days and the confinement began after the contract date. Under RAVA Select, you must provide proof satisfactory to us that, as of the date you request the surrender, you or your spouse are confined to a nursing home or hospital and have been for 90 straight days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Buying your contract -- Purchase payment credits.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate the contract administrative and surrender charges. However, we expect this to occur infrequently. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectuses for those funds. (See "Annual Operating Expenses of the Funds.") PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. VALUING YOUR INVESTMENT We value your accounts as follows: FIXED ACCOUNT We value the amounts you allocated to the fixed account directly in dollars. The fixed account value equals: - the sum of your purchase payments and purchase payment credits and transfer amounts allocated to the fixed account; - plus interest credited; - minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out; - minus any prorated portion of the contract administrative charge; - minus any prorated portion of the MAV rider fee (if selected); - minus any prorated portion of the EEB rider fee (if selected); - minus any prorated portion of the EEP rider fee (if selected); and - minus any prorated portion of the PN rider fee (if selected). SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payment credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge or fee for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 33 ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - dividing that sum by the previous adjusted net asset value per share; and - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - additional purchase payments you allocate to the subaccounts; - any purchase payment credits allocated to the subaccounts; - transfers into or out of the subaccounts; - partial surrenders; - surrender charges; and a deduction of: - a prorated portion of the contract administrative charge; - a prorated portion of the MAV rider fee (if selected); - a prorated portion of the EEB rider fee (if selected); - a prorated portion of the EEP rider fee (if selected); and/or - a prorated portion of the PN rider fee (if selected). Accumulation unit values will fluctuate due to: - changes in fund net asset value; - fund dividends distributed to the subaccounts; - fund capital gains or losses; - fund operating expenses; and - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the fixed account to one or more subaccounts. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. You may not set up automated transfer if the PN is selected. The potential effect is to lower your average cost per unit. 34 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS HOW DOLLAR-COST AVERAGING WORKS
ACCUMULATION NUMBER By investing an equal number of dollars AMOUNT UNIT OF UNITS each month... MONTH INVESTED VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy Mar 100 17 5.88 more units when the (ARROW) Apr 100 15 6.67 per unit market price is low... May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units Aug 100 19 5.26 when the per unit (ARROW) Sept 100 21 4.76 market price is high. Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features contact your sales representative. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semiannually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in numbers with no more than one digit past the decimal. Asset rebalancing does not apply to the fixed account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. Different rules apply to asset rebalancing under the Portfolio Navigator program (see "Portfolio Navigator Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You may elect to participate in the PN program at any time for an additional charge (see "Charges"). You may cancel your participation in the PN program at any time by giving us written notice. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 35 You should review any PN program information, including the terms of the PN program, carefully. Your financial advisor can provide you with additional information and can answer questions you may have on the PN program. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investment's role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at the time or before they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflict of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. POTENTIAL CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. As an affiliate of RiverSource Investments, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Series Trust funds. In this role RiverSource Investments may, from time to time, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, 36 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS may influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from the fixed account than from other allocation options. We therefore may have an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. Your financial advisor can help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts and/or the fixed account that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Dollar-cost averaging arrangements (DCA) are currently not allowed while you are participating in the PN program. If we choose to allow for DCA arrangements, we will designate one or more subaccounts as "excluded accounts" which are not part of a model portfolio. If an account has been designated as an excluded account and you set up a DCA arrangement, we will make monthly transfers in accordance with your instructions from the excluded account into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value according to the updated model portfolio. If you do not want your contract value to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - limit your choice of models based on the amount of your initial purchase payment we accept; RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 37 - substitute a fund of funds for your current model portfolio if permitted under applicable securities law; and - discontinue the PN program. We will give you 30 days' written notice of any such change. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing or periodic updating of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model is in effect. You may transfer contract value from any one subaccount, or the fixed account, to another subaccount before annuity payouts begin. Certain restrictions apply to transfers involving the fixed account. When your request to transfer will be processed depends on when we receive it: - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Subject to state regulatory requirements, we may suspend or modify transfer privileges at any time. For more information on transfers after annuity payments begin, see "Transfer Policies" below. TRANSFER POLICIES - Before annuity payouts begin, you may transfer contract values between the subaccounts. You may also transfer contract values from the subaccounts to the fixed account. However, if you made a transfer from the fixed account to the 38 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS subaccounts, you may not make a transfer from any subaccount back to the fixed account until the next contract anniversary. For contracts issued on or after July 1, 2003, currently you may transfer any amount of contract value to the fixed account. However, we reserve the right to limit the amount transferred to the fixed account so that the value of the fixed account after the transfer is not greater than 30% of the contract value. - You may transfer contract values from the fixed account to the subaccounts once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). For contracts issued on or after July 1, 2003, the transfers out of the fixed account are limited to the greater of: a) 30% of the fixed account value at the beginning of the contract year, or b) the amount transferred out of the fixed account in the previous contract year, excluding any automated transfer amounts. - If we receive your request within 30 days before the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the anniversary. - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the valuation date we receive it. - We will not accept requests for transfers from the fixed account at any other time. - Once annuity payouts begin, you may not make transfers to or from the fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT BUY A CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU. Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - diluting the value of an investment in an underlying fund in which a subaccount invests; - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and, - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer requests, if, in our sole judgment, the dollar amount of the transfer request would adversely affect unit values. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 39 If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - requiring transfer requests to be submitted only by first-class U.S. mail; - not accepting hand-delivered transfer requests or requests made by overnight mail; - not accepting telephone or electronic transfer requests; - requiring a minimum time period between each transfer; - not accepting transfer requests of an agent acting under power of attorney; - limiting the dollar amount that you may transfer at any one time; - suspending the transfer privilege; or - modifying instructions under any automated transfer program to exclude a restricted fund if you do not provide new instructions. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable account are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers among your subaccounts or fixed account or partial surrenders from the accounts. You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - Automated transfers from the fixed account to any one of the subaccounts may not exceed an amount that, if continued, would deplete the fixed account within 12 months. - Automated surrenders may be restricted by applicable law under some contracts. - You may not make additional purchase payments if automated partial surrenders are in effect. - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - If a PN program is in effect, you are not allowed to set up an automated transfer. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the fixed account) RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 41 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and tape recording calls. We will not allow a telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request in good order at our corporate office before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, surrender charges, or any applicable optional rider charges (see "Charges"), and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the fixed account in the same proportion as your value in each account correlates to your total contract value, unless you request otherwise. The minimum contract value after partial surrender is $600. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - payable to you; - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 2 BY WIRE - request that payment be wired to your bank; - bank account must be in the same ownership as your contract; and - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: - the surrender amount includes a purchase payment check that has not cleared; - the NYSE is closed, except for normal holiday and weekend closings; - trading on the NYSE is restricted, according to SEC rules; - an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or - the SEC permits us to delay payment for the protection of security holders. TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations thereunder unless we have prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: - you are at least age 59 1/2; - you are disabled as defined in the Code; - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - effective Jan. 1, 2009, distribution is due to plan termination; or - effective Jan. 1, 2009, you are a military reservist. - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 43 - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. The change will become binding on us when we receive and record it. We will honor any change of ownership request in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the MAV, EEB or EEP. If you change ownership of your contract, we will terminate the EEP. This includes both the EEP Part I benefits and the EEP Part II benefits. (See the description of these terms in "Optional Benefits.") In addition, the terms of the EEB and the MAV will change due to a change of ownership. If either the new owner or the annuitant is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over". We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If either the new owner or the annuitant is older than age 75, the MAV will terminate. If the MAV on the date of ownership change is greater than the account value on the date of the ownership change, the MAV will be set equal to the account value. Otherwise, the MAV value will not change due to a change in ownership. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in similar capacity, ownership of the contract may be transferred to the annuitant. BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon the earlier of your death or the annuitant's death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner or the annuitant. If you or the annuitant die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If both you and the annuitant are age 80 or younger on the date of death, the beneficiary receives the greatest of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; - purchase payments minus adjusted partial surrenders; or - the contract value as of the most recent sixth contract anniversary, preceding the date of death, plus any purchase payments since that anniversary, minus adjusted partial surrenders since that anniversary. If either you or the annuitant are age 81 or older on the date of death, the beneficiary receives the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. PS X DB -------- ADJUSTED PARTIAL SURRENDERS = CV
PS = the amount by which the contract value is reduced as a result of the partial surrender. DB = is the death benefit on the date of (but prior to) the partial surrender. 44 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU AND THE ANNUITANT ARE AGE 80 OR YOUNGER: - You purchase the contract with a payment of $20,000. - On the sixth contract anniversary the contract value grows to $30,000. - During the seventh contract year the contract value falls to $28,000 at which point you take a $1,500 partial surrender, leaving a contract value of $26,500. We calculate the death benefit as follows: The contract value on the most recent sixth contract anniversary: $30,000.00 plus purchase payments made since that anniversary: +0.00 minus adjusted partial surrenders taken since that anniversary calculated as: $1,500 x $30,000 ---------------- -1,607.14 $28,000 ---------- for a death benefit of: $28,392.86
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date our death claim requirements are fulfilled. We will determine the contract's value using the next accumulation unit value we calculate on that valuation date. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If you elected any optional contract features and riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - the payout period does not extend beyond the beneficiary's life or life expectancy. QUALIFIED ANNUITIES - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own with the contract value equal to the death benefit that would otherwise have been paid or elect an annuity payout plan or another plan agreed to by us. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. - If you elected any optional contract features and riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 45 DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC unless the beneficiary fails to meet the requirements of using this option. OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you or the annuitant is older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to fixed account values during the time you have amounts allocated to the fixed account. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If both you and the annuitant are age 75 or younger at contract issue, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract according to terms determined by us and at our sole discretion. On the first contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value if the current contract value is higher. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders; or - the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. TERMINATING THE MAV - You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. For an example, see Appendix B. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to 46 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides for reduced benefits if you are or the annuitant is age 70 or older at the rider effective date and it does not provide any additional benefit before the first contract anniversary. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEB is appropriate for your situation. If both you and the annuitant are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract according to terms determined by us and at our sole discretion. You may not select this rider if you select the EEP. The EEB provides that if you die or the annuitant dies after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit") or the MAV death benefit amount, if applicable, PLUS - 40% of your earnings at death if you and the annuitant were under age 70 on the rider effective date; or - 15% of your earnings at death if you or the annuitant were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB AND EEP: If the rider effective date for the EEB or EEP is the contract issue date, earnings at death is an amount equal to: - the standard death benefit amount or the MAV death benefit amount, if applicable (the "death benefit amount") - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount - MINUS the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 47 - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. For an example, see Appendix B. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If the spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract, he or she may choose to continue the EEB. In this case, the following conditions will apply: - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP) The EEP is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEP provides for reduced benefits if you or the annuitant is age 70 or older at the rider effective date. It does not provide any additional benefit before the first contract anniversary and it does not provide any benefit beyond what is offered under the EEB during the second contract year. The EEP also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because part of the benefit paid by the EEP is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEP is appropriate for your situation. If both you and the annuitant are age 75 or younger at contract issue, you may choose to add the EEP to your contract. You must elect the EEP at the time you purchase your contract and your rider effective date will be the contract issue date. THIS RIDER IS ONLY AVAILABLE UNDER ANNUITIES PURCHASED THROUGH AN EXCHANGE OR DIRECT TRANSFER FROM ANOTHER ANNUITY OR A LIFE INSURANCE POLICY. You may not select this rider if you select the EEB. The EEP provides that if you die or the annuitant dies after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - EEP Part I benefits, which equal the benefits payable under the EEB described above; PLUS - EEP Part II benefits, which equal a percentage of exchange purchase payments identified at issue not previously surrendered as follows:
PERCENTAGE IF YOU AND THE ANNUITANT ARE PERCENTAGE IF YOU OR THE ANNUITANT ARE CONTRACT YEAR UNDER AGE 70 ON THE RIDER EFFECTIVE DATE 70 OR OLDER ON THE RIDER EFFECTIVE DATE One and Two 0% 0% Three and Four 10% 3.75% Five or more 20% 7.5%
48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS Additional death benefits payable under the EEP are not included in the adjusted partial surrender calculation. If after 6 months, no exchange purchase payments have been received, we will contact you and you will have an additional 30 days to follow-up on exchange purchase payments identified at issue but not received by us. If after these 30 days we have not received any exchange purchase payments, we will convert the EEP rider into an EEB. Another way to describe the benefits payable under the EEP rider is as follows: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Death Benefit") or the MAV death benefit amount, if applicable PLUS
IF YOU AND THE ANNUITANT ARE UNDER CONTRACT YEAR AGE 70 ON THE RIDER EFFECTIVE DATE, ADD . . . 1 Zero 2 40% x earnings at death (see above) 3 & 4 40% x (earnings at death + 25% of exchange purchase payment*) 5+ 40% x (earnings at death + 50% of exchange purchase payment*) IF YOU OR THE ANNUITANT ARE AGE 70 CONTRACT YEAR OR OLDER ON THE RIDER EFFECTIVE DATE, ADD . . . 1 Zero 2 15% x earnings at death 3 & 4 15% x (earnings at death + 25% of exchange purchase payment*) 5+ 15% x (earnings at death + 50% of exchange purchase payment*)
* Exchange purchase payments are purchase payments exchanged from another contract that are identified at issue and not previously surrendered. We are not responsible for identifying exchange purchase payments if we did not receive proper notification from the company from which the purchase payments are exchanged. TERMINATING THE EEP - You may terminate the EEP rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The EEP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEP rider will terminate in the case of an ownership change. - The EEP rider will terminate in the case of the spousal continuation if the new owner is age 76 or older. For an example, see Appendix B. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEP. If your spouse at the time he or she elects to continue the contract has reached age 76, the EEP rider will terminate. If your spouse at the time he or she elects to continue the contract has not yet reached age 76, he or she cannot continue the EEP. However, he or she may choose to convert the EEP rider into an EEB. In this case, the following conditions will apply: - the EEB rider will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the EEB rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEP rider. If your spouse chooses not to convert the EEP rider into an EEB, the standard death benefit amount (or the MAV death benefit amount, if applicable) will apply. NOTE: For special tax considerations associated with the EEP, see "Taxes." THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date (less any RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 49 applicable premium tax). During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - the annuity payout plan you select; - the annuitant's age and, in most cases, sex; - the annuity table in the contract; and - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to the age and, when applicable, the sex of the annuitant. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate Table A results in a higher initial payment, but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan: - PLAN A - LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only one monthly payout, we will not make any more payouts. - PLAN B - LIFE ANNUITY WITH FIVE, TEN OR 15 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten or 15 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - PLAN C - LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. - PLAN D - JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving annuitant. Payouts end with the death of the second annuitant. - PLAN E - PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that an annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the 50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS payout that would have been made 7 days prior to the date we determine present value. For qualified annuities, the discount rate we use in the calculation will be either 4.72% or 6.22%, depending on the applicable assumed investment rate. For nonqualified annuities, the discount rate we use in the calculation will vary between 4.92% and 6.42%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take a surrender. (See "Taxes.") ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or - in equal or substantially equal payments over a period not longer than your life expectancy of the annuitant or over the joint life expectancy of you and your designated beneficiary; or - over a period certain not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary. IF WE DO NOT RECEIVE INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the annuitant's settlement date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. Contract values that you allocated to the fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you or the annuitant die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay federal income tax until there is a distribution (or deemed distribution) from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. ANNUITY PAYOUTS: Generally, unlike surrenders, the taxation of annuity payouts is subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, including withdrawals under any optional withdrawal benefit rider, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 51 You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, including surrenders under any optional withdrawal benefit rider, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - because of your death or in the event of nonnatural ownership, the death of the annuitant; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if it is allocable to an investment before Aug. 14, 1982; or - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies and annuity contracts, while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment or annuity contract, (2) the exchange of an endowment contract for an annuity contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract exchanged, (3) the exchange of an annuity contract for another annuity contract. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. For exchanges after 2009, a life insurance policy, annuity or endowment contract or a qualified long-term care insurance contract may be exchanged for a qualified long-term care insurance contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender 52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. (If certain life events occur between the date of the partial exchange and the date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed to you like a surrender and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for Roth IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, including surrenders under any optional withdrawal benefit rider, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 53 In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - the payout is a RMD as defined under the Code; - the payout is made on account of an eligible hardship; or - the payout is a corrective distribution. State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - because of your death; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); or - to pay certain medical or education expenses (IRAs only). DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER PURCHASE PAYMENT CREDITS: These are considered earnings and are taxed accordingly when surrendered or paid out. SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to 54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: - the reserve held in each subaccount for your contract; divided by - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - laws or regulations change; - the existing funds become unavailable; or - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - add new subaccounts; - combine any two or more subaccounts; - transfer assets to and from the subaccounts or the variable account; and - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio -- Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. ("RiverSource Distributors"), our affiliate, serves as the principal underwriter of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 55 Although we no longer offer the contract for sale, you may continue to make purchase payments if permitted under the terms of your contract. We pay commissions to an affiliated selling firm of up to 5.75% of purchase payments on the contract as well as service/trail commissions of up to 1.00% based on annual total contract value for as long as the contract remains in effect. We also may pay a temporary additional sales commission of up to 1.00% of purchase payments for a period of time we select. These commissions do not change depending on which subaccounts you choose to allocate your purchase payments. From time to time and in accordance with applicable laws and regulations, we may also pay or provide the selling firm with various cash and non-cash promotional incentives including, but not limited to bonuses, short-term sales incentive payments, marketing allowances, costs associated with sales conferences and educational seminars and sales recognition awards. A portion of the payments made to the selling firm may be passed on to its financial advisors in accordance with its internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your financial advisor for further information about what your financial advisor and the selling firm for which he or she works may receive in connection with your contract. We pay the commissions and other compensation described above from our assets. Our assets include: - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- the funds"); - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The funds"); and - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part of all of the commissions and other compensation described above indirectly through: - fees and expenses we collect from contract owners, including surrender charges; and - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. 56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS APPENDICES THE PURPOSE OF THESE APPENDICES IS TO ILLUSTRATE THE OPERATION OF VARIOUS CONTRACT FEATURES AND RIDERS AND TO PROVIDE CONDENSED FINANCIAL HISTORY DISCLOSURE REGARDING THE SUBACCOUNTS. IN ORDER TO DEMONSTRATE THESE CONTRACT FEATURES AND RIDERS, AN EXAMPLE MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THE EXAMPLES OF THE OPTIONAL DEATH BENEFITS IN APPENDIX B INCLUDE PARTIAL SURRENDERS TO ILLUSTRATE THE EFFECT OF THESE PARTIAL SURRENDERS ON THE PARTICULAR BENEFIT. THESE EXAMPLES ARE INTENDED TO SHOW HOW THE OPTIONAL DEATH BENEFITS OPERATE, AND DO NOT TAKE INTO ACCOUNT WHETHER A PARTICULAR OPTIONAL DEATH BENEFIT IS PART OF A QUALIFIED ANNUITY. QUALIFIED ANNUITIES ARE SUBJECT TO REQUIRED MINIMUM DISTRIBUTIONS AT CERTAIN AGES (SEE "TAXES -- QUALIFIED ANNUITIES -- REQUIRED MINIMUM DISTRIBUTIONS") WHICH MAY REQUIRE YOU TO TAKE PARTIAL SURRENDERS FROM THE CONTRACT. IF YOU ARE CONSIDERING THE ADDITION OF CERTAIN OPTIONAL DEATH BENEFITS TO A QUALIFIED ANNUITY, YOU SHOULD CONSULT YOUR TAX ADVISOR PRIOR TO MAKING A PURCHASE FOR AN EXPLANATION OF THE POTENTIAL TAX IMPLICATION TO YOU. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 57 APPENDIX A: EXAMPLE -- SURRENDER CHARGES PARTIAL SURRENDER CHARGE CALCULATION EXAMPLE Assume you requested a surrender of $1,000 and there is a surrender charge of 7%. The total amount we actually deduct from your contract is $1,075.27. We determine this amount as follows: AMOUNT REQUESTED $1,000 ----------------------- OR ------ = $1,075.27 1.00 - SURRENDER CHARGE .93
By applying the 7% surrender charge to $1,075.27, the surrender charge is $75.27. We pay you the $1,000 you requested. If you make a full surrender of your contract, we also will deduct the applicable contract administrative charge and the applicable prorated MAV, EEB or EEP charge. SURRENDER CHARGE CALCULATION EXAMPLE The following is an example of the calculation we would make to determine the surrender charge on a RAVA Advantage contract that contains a seven-year surrender charge schedule with this history: - We received these payments: - $10,000 paid on the contract date; - $8,000 paid on the sixth contract anniversary; - $6,000 paid on the eighth contract anniversary; and - The owner surrenders the contract for its total contract value of $26,500 and had not made any other surrenders during that contract year; and - The contract value was $28,000 on the ninth contract anniversary.
SURRENDER CHARGE EXPLANATION $ 0 $2,500 is contract earnings surrendered without charge; and 0 $300 is 10% of the prior anniversary contract value that is in excess of contract earnings surrendered without charge (from above). 10% of $28,000 = $2,800 - $2,500 = $300 0 $10,000 payment was received eight or more years before surrender and is surrendered without surrender charge; and 480 $8,000 payment is surrendered with a 6% surrender charge since there have been 3 completed years from date of purchase payment; and 420 $6,000 payment is surrendered with a 7% surrender charge since there has been 1 completed year from date of purchase payment. ---- $900
58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS APPENDIX B: EXAMPLE -- OPTIONAL BENEFITS EXAMPLE -- MAV DEATH BENEFIT - You purchase the contract (with the MAV rider) with a payment of $20,000. - On the first contract anniversary the contract value grows to $24,000. - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as:
($1,500 x $24,000) -1,636 ------------ = ------------ $22,000 for a death benefit of: $ 22,364
EXAMPLE -- EEB DEATH BENEFIT - You purchase the contract with a payment of $100,000 and both you and the annuitant are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEB. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value, or $105,000. You have not reached the first contract anniversary so the EEB does not provide any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 59 - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $48,025. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - ------------ = $57,619 $105,000
plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The reduction in contract value has no effect. - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death): 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000
- During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,000. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB (40% of earnings at death): 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000
- During the eleventh contract year the contract value remains $250,000 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,000 - $105,000) = +58,000 -------- Total death benefit of: $308,000
EXAMPLE -- EEP DEATH BENEFIT - You purchase the contract with an exchange purchase payment of $100,000 and both you and the annuitant are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEP. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit amount, which is the contract value, or $105,000. You have not reached the first contract anniversary so neither the EEP Part I nor Part II provides any additional benefit at this time. 60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS - On the first contract anniversary the contract value grows to $110,000. You have not reached the second contract anniversary so the EEP Part II does not provide any additional benefit at this time. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit amount minus purchase payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $100,000 = +10,000 -------- Total death benefit of: $124,000
- During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - ------------ = $57,619 $105,000
plus the EEP Part I (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $55,000 = +5,500 ------- Total death benefit of: $64,167
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $64,167. The reduction in contract value has no effect. - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. Because we are beyond the fourth contract anniversary the EEP also reaches its maximum of 20%. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEP Part I (40% of earnings at death): 0.40 x (2.50 x $55,000) = +55,000 plus the EEP Part II which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $266,000
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 61 - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,000. The new purchase payment is less than one year old and so it has no effect on either the EEP Part I or EEP Part II. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEP Part I (40% of earnings at death): 0.40 x (2.50 x $55,000) = +55,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $316,000
- During the eleventh contract year the contract value remains $250,000 and the "new" purchase payment is now one year old. The value of the EEP Part I changes but the value of the EEP Part II remains constant. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit minus payments not previously surrendered): 0.40 x ($250,000 - $105,000) = +58,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $319,000
62 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS APPENDIX C: CONDENSED FINANCIAL INFORMATION (Unaudited) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each price level is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2008.
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.25 $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.71 $1.25 $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,677 90,475 109,952 134,591 39,117 20,015 11,313 1,710 -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.61 $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.61 $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,534 23,253 25,868 24,349 20,043 10,924 6,981 1,459 -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.41 $1.27 $1.10 $1.00 $0.89 $0.65 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.73 $1.41 $1.27 $1.10 $1.00 $0.89 $0.65 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,639 6,317 7,291 8,602 10,118 10,880 6,887 1,550 -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.06 $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.43 $1.06 $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,625 9,208 12,088 10,621 10,625 8,724 5,572 1,081 -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,014 5,881 33,923 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.57 $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.57 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 99,290 48,018 1,744 127 -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.85 $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $0.47 $0.85 $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,001 21,716 25,440 31,926 14,454 7,882 3,769 490 -- -- -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,750 4,111 14,120 2,021 -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.80 $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 84,420 116,725 135,093 149,316 125,010 82,114 43,189 5,550 -- -- -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (08/13/2001) Accumulation unit value at beginning of period $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.23 $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 202,780 217,241 203,016 153,107 70,504 34,604 12,313 805 -- -- *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.68 $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 $1.00 -- -- Accumulation unit value at end of period $0.92 $1.68 $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,736 42,202 45,349 43,612 34,180 21,555 11,378 1,950 -- -- -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 54,402 56,815 -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,809 13,321 78,916 10,074 -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 63
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.49 $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.08 $1.49 $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 82,749 118,591 136,167 142,660 110,681 74,984 42,497 7,356 -- -- -------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.78 $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 18,431 21,893 24,975 23,850 20,551 15,315 9,520 4,490 1,283 -- -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.72 $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 310,527 204,077 121,798 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.27 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.65 $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 41,006 32,112 59,299 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.74 $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,400 17,045 51,380 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 119,741 111,086 103,830 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.20 $1.12 $1.00 $0.93 $0.86 $0.83 -- -- -- -- Accumulation unit value at end of period $0.80 $1.20 $1.12 $1.00 $0.93 $0.86 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,157 13,704 15,189 16,191 11,992 9,885 -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 398,515 294,643 244,121 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.40 $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 $1.00 -- -- Accumulation unit value at end of period $0.81 $1.40 $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,690 148,743 173,861 189,109 187,351 119,284 48,686 6,363 -- -- -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $2.36 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.41 $2.36 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 236,346 264,423 290,678 260,492 188,565 109,647 50,458 6,903 -- -- -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.91 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 $1.00 -- -- Accumulation unit value at end of period $1.06 $1.91 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,513 66,434 74,339 70,878 66,935 31,322 13,157 2,147 -- -- -------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 $1.00 Accumulation unit value at end of period $1.45 $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 62,873 93,100 128,540 139,618 120,456 87,330 59,317 24,477 6,879 885 -------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 $1.00 Accumulation unit value at end of period $1.58 $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 52,033 66,946 78,886 78,073 59,293 43,978 29,743 10,800 2,846 586 -------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.55 $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.97 $1.55 $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 68,255 94,998 90,391 69,986 45,710 26,370 10,942 942 -- -- -------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $1.71 $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 97,291 139,637 163,687 174,918 115,616 83,015 56,079 23,748 7,622 1,634 --------------------------------------------------------------------------------------------------------------------------------
64 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.71 $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 131,282 187,585 231,223 248,935 128,074 83,166 71,820 60,343 42,626 8,981 -------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.52 $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 $1.00 -- Accumulation unit value at end of period $0.29 $0.52 $0.43 $0.40 $0.36 $0.36 $0.25 $0.43 $0.68 -- Number of accumulation units outstanding at end of period (000 omitted) 23,828 28,860 30,606 32,606 37,258 40,520 37,200 34,767 20,288 -- -------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 238,472 154,650 -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) (PREVIOUSLY JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.71 $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $0.81 $1.71 $1.34 $0.92 $0.70 $0.60 $0.45 $0.61 $0.80 -- Number of accumulation units outstanding at end of period (000 omitted) 69,375 80,158 77,239 72,832 75,760 81,742 81,189 60,527 25,763 -- -------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.86 $1.37 $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 49,466 69,884 86,802 101,054 90,221 62,349 29,532 15,860 7,958 1,981 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). -------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $0.48 $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 63,755 80,158 100,533 117,493 108,239 91,666 69,576 50,212 19,521 -- -------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.61 $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 32,039 42,261 51,188 62,995 77,406 74,690 59,272 34,072 12,308 -- -------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $1.39 $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 67,989 78,212 71,164 55,870 28,362 18,051 10,543 2,997 -- -- -------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.57 $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 78,811 64,614 57,067 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.60 $1.52 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.95 $1.60 $1.52 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 36,705 48,173 51,514 33,811 11,540 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.40 $1.43 $1.26 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.86 $1.40 $1.43 $1.26 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,205 34,265 34,462 18,592 7,652 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.26 $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.26 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 569,070 536,032 339,587 150,945 22,945 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 228,912 161,214 154,199 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES* (08/13/2001) Accumulation unit value at beginning of period $1.44 $1.44 $1.19 $1.14 $0.99 $0.81 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.99 $1.44 $1.44 $1.19 $1.14 $0.99 $0.81 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,672 22,422 24,624 27,263 24,442 21,608 11,651 1,316 -- -- *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 65
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES* (12/15/2006) Accumulation unit value at beginning of period $1.13 $1.01 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.62 $1.13 $1.01 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,949 4,030 4,723 -- -- -- -- -- -- -- *Pioneer International Value VCT Portfolio - Class II Shares liquidated on April 24, 2009. -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.10 $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.90 $1.10 $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,248 19,770 25,848 27,299 21,518 18,023 11,416 2,137 -- -- -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.75 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.98 $1.75 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,502 29,411 34,316 37,980 40,598 38,012 20,773 2,460 -- -- -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.59 $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 25,511 33,551 42,808 49,747 57,095 67,224 72,033 74,819 49,764 5,084 -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,188 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,487 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,617 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.74 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,958 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,805 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.12 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 183,635 117,605 123,150 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.36 $1.29 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.36 $1.29 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,409 9,188 9,786 10,247 4,730 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) Accumulation unit value at beginning of period $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.22 $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 156,845 148,793 126,637 127,559 90,541 67,609 43,199 6,885 -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.86 $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 61,707 86,628 89,309 92,705 84,704 79,035 64,273 37,760 28,348 5,220 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.22 $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 399,214 286,121 258,492 193,996 187,100 203,753 255,251 243,870 171,785 65,522 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were 0.15% and 0.15%, respectively. --------------------------------------------------------------------------------------------------------------------------------
66 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.30 $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 610,707 599,680 511,100 332,677 221,377 188,939 154,530 83,968 30,783 7,186 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND* (09/15/1999) Accumulation unit value at beginning of period $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.15 $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 530,216 560,416 585,144 408,559 255,776 134,486 86,442 43,328 12,124 3,149 *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.56 $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 301,682 383,078 450,207 263,828 130,790 69,981 52,124 26,327 24,003 5,333 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.52 $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 201,728 204,316 169,931 130,135 82,347 51,936 31,133 16,572 8,968 1,552 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.13 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 171,393 147,400 161,490 91,038 2,274 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.03 $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 147,297 218,538 251,768 262,154 242,254 177,150 93,845 58,348 31,722 7,774 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.16 $1.14 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.94 $1.16 $1.14 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 128,653 116,516 109,316 29,477 1,052 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 $1.00 -- -- Accumulation unit value at end of period $0.75 $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,730 50,337 62,826 47,283 53,376 42,780 16,388 2,489 -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.49 $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.49 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,989 71,709 101,239 6,605 -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $0.65 $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 100,420 127,010 139,008 154,949 144,039 103,587 64,771 35,957 9,812 -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.27 $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 125,698 120,018 125,729 145,087 160,725 155,718 124,866 50,510 16,258 11,135 -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 $1.00 Accumulation unit value at end of period $0.41 $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 180,650 283,769 326,108 323,849 191,140 192,314 135,693 129,186 97,754 16,891 -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.33 $1.34 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.33 $1.34 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,696 7,988 7,937 6,232 3,498 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.03 $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 26,621 38,095 49,721 59,243 61,563 44,627 29,202 22,792 14,830 2,970 --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 67
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) Accumulation unit value at beginning of period $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $1.29 $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 -- Number of accumulation units outstanding at end of period (000 omitted) 111,551 89,546 89,672 75,520 22,549 8,256 4,750 1,789 906 -- -------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) Accumulation unit value at beginning of period $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.74 $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 55,412 75,421 80,961 77,787 51,446 23,614 20,012 15,821 13,967 2,575 -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.33 $1.37 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.33 $1.37 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 227,595 224,730 258,223 203,272 36,974 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.61 $1.11 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 88,969 51,109 51,499 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.20 $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.64 $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,546 14,940 37,273 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 $1.00 Accumulation unit value at end of period $1.42 $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 142,736 164,570 186,862 170,230 104,567 66,022 43,554 27,818 18,245 1,234 -------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.18 $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 176,483 212,646 235,960 241,623 184,961 129,824 78,311 40,791 23,813 2,476 -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.37 $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.96 $1.37 $1.28 $1.15 $1.10 $1.02 $0.84 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,423 37,314 40,046 43,629 41,656 30,948 14,864 3,799 -- -- -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $1.43 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $0.80 $1.43 $1.28 $1.06 $0.98 $0.90 $0.69 $0.90 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,126 7,327 8,088 9,021 10,390 8,227 4,703 1,200 -- -- -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.44 $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $0.86 $1.44 $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,799 30,772 36,471 41,049 43,145 38,865 25,397 3,701 -- -- -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,488 35,670 25,726 19,618 22,185 19,289 9,992 2,060 -- --
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.23 $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.70 $1.23 $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,700 46,783 56,007 64,800 21,785 12,215 7,624 1,711 -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.59 $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.83 $1.59 $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,784 13,998 14,692 13,500 12,074 7,348 4,808 1,224 -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.39 $1.25 $1.09 $0.99 $0.88 $0.65 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.72 $1.39 $1.25 $1.09 $0.99 $0.88 $0.65 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,583 3,800 4,211 4,924 5,936 6,700 4,845 1,426 -- -- --------------------------------------------------------------------------------------------------------------------------------
68 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.05 $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.42 $1.05 $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,723 5,805 7,305 6,396 6,649 5,460 3,709 901 -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,240 3,964 15,226 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.57 $1.38 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.92 $1.57 $1.38 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,711 23,729 1,198 107 -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.84 $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $0.46 $0.84 $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,853 10,072 12,094 14,960 8,076 5,212 2,845 911 -- -- -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.35 $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.70 $1.35 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,593 2,415 5,609 801 -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,105 74,246 84,552 91,924 75,935 54,358 29,770 4,363 -- -- -------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (08/13/2001) Accumulation unit value at beginning of period $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.21 $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 122,930 135,634 127,479 94,909 44,705 24,114 9,270 790 -- -- *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.66 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 $1.00 -- -- Accumulation unit value at end of period $0.91 $1.66 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,242 25,059 26,700 27,136 22,031 15,471 8,200 1,927 -- -- -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.67 $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,504 28,466 -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,931 8,170 35,411 4,856 -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.47 $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.07 $1.47 $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 56,747 81,683 93,343 95,710 71,318 50,607 30,523 7,298 -- -- -------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.76 $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 12,240 17,034 19,334 19,301 17,682 14,100 9,832 6,090 1,693 -- -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.71 $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 176,791 113,001 66,352 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.26 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.65 $1.26 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,849 22,702 32,712 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.74 $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,011 12,631 26,224 -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 69
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 79,727 71,987 59,159 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.19 $1.11 $1.00 $0.92 $0.86 $0.82 -- -- -- -- Accumulation unit value at end of period $0.79 $1.19 $1.11 $1.00 $0.92 $0.86 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,059 8,609 9,669 10,001 8,036 6,384 -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 237,020 166,815 127,364 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.38 $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 $1.00 -- -- Accumulation unit value at end of period $0.80 $1.38 $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 72,387 96,482 112,864 121,317 119,521 81,919 36,320 8,177 -- -- -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $2.33 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.39 $2.33 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 136,525 156,364 174,833 157,678 117,171 72,124 35,541 6,689 -- -- -------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.88 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 $1.00 -- -- Accumulation unit value at end of period $1.05 $1.88 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 37,943 48,192 52,627 48,642 42,672 21,405 10,123 2,157 -- -- -------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 $1.00 Accumulation unit value at end of period $1.42 $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 39,491 59,503 81,589 88,911 80,587 63,047 44,591 19,803 6,181 683 -------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 $1.00 Accumulation unit value at end of period $1.55 $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 36,256 46,935 55,078 55,521 44,541 34,639 23,553 9,584 2,897 590 -------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.53 $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.96 $1.53 $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 47,292 65,658 63,662 50,166 33,241 21,294 9,151 1,114 -- -- -------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $1.68 $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 65,990 96,413 112,452 117,932 84,473 65,106 47,539 24,711 10,265 2,023 -------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.70 $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 87,685 126,734 160,736 168,697 108,140 80,350 75,489 71,185 55,239 9,951 -------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.51 $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 $1.00 -- Accumulation unit value at end of period $0.28 $0.51 $0.42 $0.40 $0.36 $0.36 $0.25 $0.42 $0.68 -- Number of accumulation units outstanding at end of period (000 omitted) 16,671 19,559 22,668 24,131 27,479 30,159 31,354 34,050 22,949 -- -------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 128,192 72,177 -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) (PREVIOUSLY JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.68 $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $0.80 $1.68 $1.33 $0.91 $0.70 $0.59 $0.45 $0.61 $0.80 -- Number of accumulation units outstanding at end of period (000 omitted) 54,116 64,174 61,879 59,325 61,390 68,389 74,111 64,147 29,251 -- --------------------------------------------------------------------------------------------------------------------------------
70 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.35 $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.84 $1.35 $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 36,022 51,659 62,992 73,982 66,844 53,159 28,853 19,727 10,774 2,504 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). -------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 $1.00 -- Accumulation unit value at end of period $0.48 $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 44,360 58,819 73,300 84,506 78,223 74,564 62,663 51,051 21,973 -- -------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.60 $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 22,831 31,915 38,120 48,503 60,214 61,988 53,383 36,822 15,060 -- -------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $1.37 $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,832 51,479 45,869 35,163 18,264 12,519 7,093 2,778 -- -- -------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.57 $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 41,079 30,611 26,517 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.59 $1.51 $1.30 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.94 $1.59 $1.51 $1.30 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 24,950 32,187 34,962 20,721 6,121 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.39 $1.42 $1.25 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.39 $1.42 $1.25 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,861 23,107 22,606 12,037 4,085 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.25 $1.15 $1.08 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.06 $1.25 $1.15 $1.08 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 395,298 360,480 226,000 94,657 11,924 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 131,661 82,318 76,067 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES* (08/13/2001) Accumulation unit value at beginning of period $1.42 $1.43 $1.18 $1.13 $0.98 $0.81 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.98 $1.42 $1.43 $1.18 $1.13 $0.98 $0.81 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,355 15,657 15,917 17,370 15,748 13,512 7,193 1,106 -- -- *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. -------------------------------------------------------------------------------------------------------------------------------- PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES* (12/15/2006) Accumulation unit value at beginning of period $1.13 $1.01 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.61 $1.13 $1.01 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,474 2,397 2,935 -- -- -- -- -- -- -- *Pioneer International Value VCT Portfolio - Class II Shares liquidated on April 24, 2009. -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.08 $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.89 $1.08 $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,551 11,073 13,569 14,517 11,248 9,676 6,574 1,743 -- -- -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.73 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.96 $1.73 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,381 18,697 21,524 23,458 24,819 24,880 15,138 2,180 -- -- -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.58 $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 20,077 26,405 34,609 42,680 51,579 63,075 73,930 87,722 68,407 7,245 --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 71
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,115 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,436 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,034 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,299 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,524 -- -- -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.08 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.11 $1.08 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 98,708 55,721 57,963 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.28 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $1.34 $1.28 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,807 5,203 5,724 5,777 2,540 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) Accumulation unit value at beginning of period $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.21 $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 85,345 79,474 69,587 72,463 57,581 44,918 28,099 6,314 -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.85 $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 51,095 74,966 74,221 77,525 74,540 73,310 64,613 53,096 39,810 6,539 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.20 $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 290,095 247,870 211,744 147,452 148,915 178,580 228,237 265,455 203,922 87,424 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.05%) and (0.05%), respectively. -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.28 $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 430,993 408,270 351,043 257,273 190,125 176,013 159,405 106,760 43,920 11,675 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND* (09/15/1999) Accumulation unit value at beginning of period $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.13 $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 329,220 363,274 383,460 278,737 181,318 99,776 67,958 41,299 14,227 3,441 *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.55 $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 180,807 242,876 290,744 144,230 94,730 45,599 34,956 26,779 22,159 3,227 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 $1.00 Accumulation unit value at end of period $1.49 $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 142,773 141,675 123,834 102,876 72,702 54,100 36,626 23,970 14,137 2,368 --------------------------------------------------------------------------------------------------------------------------------
72 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.12 $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.12 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,444 88,734 95,224 51,906 1,504 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.01 $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 125,862 186,775 221,767 237,711 236,566 197,358 122,784 88,813 52,655 10,137 -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.16 $1.14 $1.06 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.16 $1.14 $1.06 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,770 65,977 61,812 18,068 783 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 $1.00 -- -- Accumulation unit value at end of period $0.74 $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,504 35,043 43,939 31,419 35,498 29,450 12,145 2,238 -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.48 $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.48 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,362 43,555 54,642 4,982 -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $0.64 $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 73,795 92,416 104,302 122,070 117,372 91,398 65,011 40,575 14,084 -- -------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.24 $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 108,778 104,637 108,222 121,249 130,386 135,202 116,147 56,966 24,654 12,796 -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 $1.00 Accumulation unit value at end of period $0.41 $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 116,110 186,447 216,237 212,229 135,373 147,485 118,986 130,764 106,410 13,813 -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.32 $1.34 $1.13 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.79 $1.32 $1.34 $1.13 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,900 4,152 4,707 3,594 2,030 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.01 $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 18,734 28,329 38,372 46,718 51,057 39,709 29,341 24,346 16,349 3,029 -------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) Accumulation unit value at beginning of period $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $1.27 $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 -- Number of accumulation units outstanding at end of period (000 omitted) 61,879 50,491 51,867 44,244 16,315 6,501 3,888 1,542 693 -- -------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.73 $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 42,730 58,762 64,541 61,793 40,351 21,462 19,189 18,664 15,670 2,173 -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.32 $1.36 $1.18 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $1.32 $1.36 $1.18 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 120,656 113,380 130,395 96,755 18,714 -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.22 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.61 $1.11 $1.22 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 50,326 29,814 27,318 -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 73
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.20 $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,266 9,199 17,529 -- -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 $1.00 Accumulation unit value at end of period $1.39 $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 88,899 108,613 122,718 114,381 79,981 56,466 42,309 30,297 21,844 1,343 -------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.16 $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 117,299 145,262 164,257 169,886 140,320 108,046 72,853 46,456 29,881 2,723 -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.35 $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.95 $1.35 $1.26 $1.14 $1.09 $1.01 $0.84 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,992 28,981 29,215 32,466 31,201 22,278 11,859 3,224 -- -- -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $1.41 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $0.79 $1.41 $1.26 $1.05 $0.97 $0.89 $0.69 $0.90 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,897 5,538 6,052 6,690 7,049 5,248 2,781 1,031 -- -- -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.42 $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.42 $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,585 18,131 21,391 25,313 25,983 24,999 17,130 3,747 -- -- -------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $0.76 $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,000 23,653 17,655 14,334 16,103 13,800 7,655 2,230 -- --
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 $1.00 Accumulation unit value at end of period $0.74 $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 12,622 15,385 19,282 24,536 5,492 1,386 379 ------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 $1.00 Accumulation unit value at end of period $0.88 $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 2,199 3,003 3,321 2,836 2,429 1,198 552 ------------------------------------------------------------------------------------------------------------------------------- AIM V.I. DYNAMICS FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.53 $1.37 $1.19 $1.09 $0.97 $0.71 $1.00 Accumulation unit value at end of period $0.78 $1.53 $1.37 $1.19 $1.09 $0.97 $0.71 Number of accumulation units outstanding at end of period (000 omitted) 327 479 608 830 916 758 242 ------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 $1.00 Accumulation unit value at end of period $0.45 $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,606 1,004 1,342 1,322 1,122 925 526 ------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.80 $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 923 753 5,096 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.57 $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $0.92 $1.57 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,785 8,000 503 2 -- -- -- ------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 $1.00 Accumulation unit value at end of period $0.54 $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 2,808 2,913 3,543 4,728 1,650 851 192 -------------------------------------------------------------------------------------------------------------------------------
74 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.35 $1.14 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $0.70 $1.35 $1.14 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 425 664 2,023 333 -- -- -- ------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 $1.00 Accumulation unit value at end of period $0.85 $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 10,045 14,240 18,481 20,739 16,610 9,284 3,503 ------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (02/13/2002) Accumulation unit value at beginning of period $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 $1.00 Accumulation unit value at end of period $1.25 $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 29,486 32,186 31,867 25,568 11,679 5,621 1,417 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 $1.00 Accumulation unit value at end of period $1.05 $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 5,162 6,589 7,826 7,538 4,969 2,812 944 ------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.67 $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,412 9,862 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.18 $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $0.68 $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,188 2,203 12,931 2,015 -- -- -- ------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.06 $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 13,643 20,382 24,433 25,428 16,423 8,977 2,837 ------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $0.87 $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,873 2,380 3,270 3,186 2,458 1,272 211 ------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.71 $1.19 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 42,915 31,378 21,100 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.26 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $0.64 $1.26 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,121 4,198 9,849 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $0.74 $1.13 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,848 3,423 9,239 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.75 $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,362 19,211 18,826 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.32 $1.23 $1.11 $1.03 $0.95 $0.93 -- Accumulation unit value at end of period $0.87 $1.32 $1.23 $1.11 $1.03 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 1,156 1,422 1,855 2,338 2,067 1,338 -- ------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.68 $1.20 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,546 45,072 40,094 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $0.83 $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 14,570 20,111 25,441 28,158 27,602 15,940 3,592 -------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 75
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 $1.00 Accumulation unit value at end of period $1.35 $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 38,797 44,787 53,339 46,944 30,787 15,111 4,182 ------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.16 $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 6,432 8,255 10,330 9,686 7,474 2,900 553 ------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 $1.00 Accumulation unit value at end of period $1.06 $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 9,150 14,263 20,694 22,307 17,231 9,166 2,887 ------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.18 $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 8,815 11,862 14,227 13,298 8,980 5,248 2,075 ------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.01 $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 14,362 21,837 22,449 18,871 13,076 6,742 1,735 ------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.24 $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 16,558 24,512 29,515 30,996 15,049 7,743 2,583 ------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $0.84 $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 13,564 20,871 27,339 30,636 9,922 2,742 1,048 ------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.30 $1.08 $1.01 $0.92 $0.92 $0.64 $1.00 Accumulation unit value at end of period $0.72 $1.30 $1.08 $1.01 $0.92 $0.92 $0.64 Number of accumulation units outstanding at end of period (000 omitted) 367 507 505 468 467 428 68 ------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 33,658 25,246 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (02/13/2002) (PREVIOUSLY JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $2.97 $2.34 $1.61 $1.23 $1.05 $0.79 $1.00 Accumulation unit value at end of period $1.40 $2.97 $2.34 $1.61 $1.23 $1.05 $0.79 Number of accumulation units outstanding at end of period (000 omitted) 1,603 1,484 1,656 1,555 1,500 1,254 681 ------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (02/13/2002) Accumulation unit value at beginning of period $1.94 $1.77 $1.46 $1.33 $1.17 $0.92 $1.00 Accumulation unit value at end of period $1.21 $1.94 $1.77 $1.46 $1.33 $1.17 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 3,562 5,119 6,555 7,418 5,816 3,058 499 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $0.75 $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 4,927 5,932 8,628 8,658 5,399 2,971 1,088 ------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 $1.00 Accumulation unit value at end of period $0.71 $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 2,718 3,692 5,363 6,257 6,311 5,191 2,112 ------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 $1.00 Accumulation unit value at end of period $1.71 $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 6,021 7,678 8,231 6,871 3,380 1,670 276 -------------------------------------------------------------------------------------------------------------------------------
76 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.56 $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,873 10,350 9,305 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.59 $1.51 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.94 $1.59 $1.51 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,456 11,884 14,402 11,208 4,318 -- -- ------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.38 $1.42 $1.25 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.85 $1.38 $1.42 $1.25 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,256 9,606 10,328 6,924 2,998 -- -- ------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.24 $1.15 $1.08 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.05 $1.24 $1.15 $1.08 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 82,157 92,164 64,615 34,899 7,003 -- -- ------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.93 $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,669 27,066 26,857 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES* (02/13/2002) Accumulation unit value at beginning of period $1.49 $1.49 $1.24 $1.18 $1.03 $0.85 $1.00 Accumulation unit value at end of period $1.02 $1.49 $1.49 $1.24 $1.18 $1.03 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,700 3,618 4,901 5,727 5,442 4,416 1,439 *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ------------------------------------------------------------------------------------------------------------------------------- PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES* (12/15/2006) Accumulation unit value at beginning of period $1.13 $1.01 $1.00 -- -- -- -- Accumulation unit value at end of period $0.61 $1.13 $1.01 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 150 404 560 -- -- -- -- *Pioneer International Value VCT Portfolio - Class II Shares liquidated on April 24, 2009. ------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (02/13/2002) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 $1.00 Accumulation unit value at end of period $0.92 $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 2,705 3,423 4,490 4,351 2,530 1,776 617 ------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.05 $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 2,476 3,409 3,961 4,252 4,043 4,165 2,086 ------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 $1.00 Accumulation unit value at end of period $0.73 $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 601 771 986 736 559 614 267 ------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 88 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,582 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,013 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,762 -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 77
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 829 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $0.68 $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,636 18,675 20,639 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.28 $1.12 $1.12 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.34 $1.28 $1.12 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 766 1,469 1,490 1,493 840 -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (02/13/2002) Accumulation unit value at beginning of period $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 $1.00 Accumulation unit value at end of period $1.14 $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 23,170 23,547 19,283 20,683 11,379 7,181 3,316 ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (02/13/2002) Accumulation unit value at beginning of period $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 $1.00 Accumulation unit value at end of period $0.94 $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 2,967 5,018 4,466 3,385 2,471 1,608 531 ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (02/13/2002) Accumulation unit value at beginning of period $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 $1.00 Accumulation unit value at end of period $1.10 $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 51,260 39,420 37,806 22,067 19,507 13,022 12,452 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.11%) and (0.11%), respectively. ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.12 $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 93,379 103,330 87,923 50,746 22,751 13,984 6,481 ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND* (02/13/2002) Accumulation unit value at beginning of period $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.14 $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 64,717 69,629 75,610 47,282 24,579 8,342 3,101 *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 $1.00 Accumulation unit value at end of period $0.70 $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 18,986 23,697 27,942 27,550 4,862 1,779 291 ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 $1.00 Accumulation unit value at end of period $1.45 $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 26,925 31,193 26,716 18,771 8,568 3,885 1,060 ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.12 $1.05 $1.05 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.11 $1.12 $1.05 $1.05 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,321 26,608 31,048 20,279 653 -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 $1.00 Accumulation unit value at end of period $1.08 $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 13,016 20,960 27,180 28,189 24,305 16,280 3,957 ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.15 $1.14 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.15 $1.14 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,612 20,632 21,052 7,061 300 -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 $1.00 Accumulation unit value at end of period $0.76 $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,135 2,984 4,676 5,505 5,961 4,649 1,153 -------------------------------------------------------------------------------------------------------------------------------
78 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.48 $1.36 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $0.81 $1.48 $1.36 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,682 9,445 15,321 622 -- -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $0.84 $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 7,849 10,644 13,132 14,184 11,269 6,544 1,889 ------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (02/13/2002) Accumulation unit value at beginning of period $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 $1.00 Accumulation unit value at end of period $1.09 $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 12,804 12,583 16,153 18,707 17,403 14,902 6,107 ------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 $1.00 Accumulation unit value at end of period $0.66 $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 Number of accumulation units outstanding at end of period (000 omitted) 12,689 20,603 24,725 23,296 7,403 5,647 973 ------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.31 $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.79 $1.31 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 582 925 1,124 921 450 -- -- ------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 $1.00 Accumulation unit value at end of period $0.97 $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,383 3,378 4,827 5,744 5,617 2,920 900 ------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (02/13/2002) Accumulation unit value at beginning of period $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 $1.00 Accumulation unit value at end of period $1.69 $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 11,453 9,394 9,829 8,412 1,983 492 220 ------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.15 $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,748 5,324 5,986 5,133 2,551 340 55 ------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.31 $1.36 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.31 $1.36 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,694 51,531 60,771 53,896 12,916 -- -- ------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $0.61 $1.11 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,095 9,916 8,886 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.20 $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $0.63 $1.20 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,776 2,519 6,372 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (02/13/2002) Accumulation unit value at beginning of period $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 $1.00 Accumulation unit value at end of period $1.68 $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 16,311 18,491 21,367 19,260 9,273 4,376 1,523 ------------------------------------------------------------------------------------------------------------------------------- WANGER USA (02/13/2002) Accumulation unit value at beginning of period $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 $1.00 Accumulation unit value at end of period $1.03 $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 28,344 36,469 42,372 41,455 26,304 13,657 3,732 ------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (02/13/2002) Accumulation unit value at beginning of period $1.42 $1.33 $1.20 $1.16 $1.07 $0.88 $1.00 Accumulation unit value at end of period $1.00 $1.42 $1.33 $1.20 $1.16 $1.07 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,739 3,917 4,549 5,289 5,233 3,858 1,279 -------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 79
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (02/13/2002) Accumulation unit value at beginning of period $1.65 $1.48 $1.24 $1.14 $1.05 $0.81 $1.00 Accumulation unit value at end of period $0.93 $1.65 $1.48 $1.24 $1.14 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 498 589 856 1,179 1,653 832 81 ------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $0.88 $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 3,344 4,587 6,324 7,621 6,990 5,557 2,340 ------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 $1.00 Accumulation unit value at end of period $0.88 $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 3,050 3,223 2,943 2,596 2,735 1,772 662
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 $1.00 Accumulation unit value at end of period $0.73 $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 5,453 7,314 10,002 11,202 2,736 978 447 ------------------------------------------------------------------------------------------------------------------------------ AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 $1.00 Accumulation unit value at end of period $0.86 $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,232 1,796 2,051 1,835 1,591 774 463 ------------------------------------------------------------------------------------------------------------------------------ AIM V.I. DYNAMICS FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.51 $1.36 $1.19 $1.08 $0.97 $0.71 $1.00 Accumulation unit value at end of period $0.77 $1.51 $1.36 $1.19 $1.08 $0.97 $0.71 Number of accumulation units outstanding at end of period (000 omitted) 186 257 357 495 596 554 286 ------------------------------------------------------------------------------------------------------------------------------ AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 $1.00 Accumulation unit value at end of period $0.44 $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,016 586 904 832 915 731 446 ------------------------------------------------------------------------------------------------------------------------------ AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.79 $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 665 456 2,466 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.56 $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $0.92 $1.56 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,389 4,140 267 5 -- -- -- ------------------------------------------------------------------------------------------------------------------------------ AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 $1.00 Accumulation unit value at end of period $0.53 $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 1,188 1,544 1,896 2,168 923 573 157 ------------------------------------------------------------------------------------------------------------------------------ ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.34 $1.13 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $0.70 $1.34 $1.13 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 301 264 846 148 -- -- -- ------------------------------------------------------------------------------------------------------------------------------ ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 $1.00 Accumulation unit value at end of period $0.84 $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 6,035 9,112 12,504 14,313 11,547 7,339 4,072 ------------------------------------------------------------------------------------------------------------------------------ ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (02/13/2002) Accumulation unit value at beginning of period $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 $1.00 Accumulation unit value at end of period $1.24 $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 15,720 18,897 19,979 16,470 7,898 3,918 1,371 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ------------------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP INTERNATIONAL, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.03 $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,795 3,680 4,188 3,768 2,448 1,128 448 ------------------------------------------------------------------------------------------------------------------------------
80 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.67 $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,001 5,266 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.18 $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $0.68 $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,338 1,445 6,545 1,015 -- -- -- ------------------------------------------------------------------------------------------------------------------------------ AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.05 $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 8,079 12,429 15,592 16,716 10,779 5,922 2,396 ------------------------------------------------------------------------------------------------------------------------------ CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $0.86 $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,073 1,711 2,144 2,283 1,690 769 208 ------------------------------------------------------------------------------------------------------------------------------ COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.18 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.71 $1.18 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,913 15,689 10,663 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.26 $1.06 $1.00 -- -- -- -- Accumulation unit value at end of period $0.64 $1.26 $1.06 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,857 2,426 5,251 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.12 $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $0.73 $1.12 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,963 1,728 4,962 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.74 $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,376 13,146 12,200 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.30 $1.22 $1.10 $1.02 $0.95 $0.91 -- Accumulation unit value at end of period $0.86 $1.30 $1.22 $1.10 $1.02 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 823 954 1,268 1,570 1,304 1,011 -- ------------------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.68 $1.19 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,515 23,069 20,348 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $0.81 $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 8,328 12,003 16,152 18,132 18,010 11,020 3,508 ------------------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 $1.00 Accumulation unit value at end of period $1.33 $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 20,610 25,720 32,335 28,423 18,934 9,886 3,541 ------------------------------------------------------------------------------------------------------------------------------ FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.14 $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 4,259 5,901 7,436 6,520 5,276 2,292 610 ------------------------------------------------------------------------------------------------------------------------------ FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 $1.00 Accumulation unit value at end of period $1.05 $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 5,481 8,852 13,498 15,139 12,119 6,601 2,989 ------------------------------------------------------------------------------------------------------------------------------ FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.16 $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 4,647 7,056 8,954 8,682 5,338 3,257 1,610 ------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 81
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------ FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 $1.00 Accumulation unit value at end of period $0.99 $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 8,193 12,837 13,922 11,400 7,311 3,856 1,418 ------------------------------------------------------------------------------------------------------------------------------ GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.22 $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 10,448 15,654 19,762 20,011 10,047 5,836 2,777 ------------------------------------------------------------------------------------------------------------------------------ GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $0.83 $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 7,207 11,550 15,324 16,269 6,220 2,770 1,483 ------------------------------------------------------------------------------------------------------------------------------ JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (02/13/2002) Accumulation unit value at beginning of period $1.29 $1.07 $1.01 $0.91 $0.92 $0.63 $1.00 Accumulation unit value at end of period $0.71 $1.29 $1.07 $1.01 $0.91 $0.92 $0.63 Number of accumulation units outstanding at end of period (000 omitted) 134 206 215 230 249 279 112 ------------------------------------------------------------------------------------------------------------------------------ JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,906 12,686 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (02/13/2002) (PREVIOUSLY JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $2.93 $2.32 $1.60 $1.23 $1.05 $0.79 $1.00 Accumulation unit value at end of period $1.38 $2.93 $2.32 $1.60 $1.23 $1.05 $0.79 Number of accumulation units outstanding at end of period (000 omitted) 986 1,042 1,094 854 1,006 956 646 ------------------------------------------------------------------------------------------------------------------------------ LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (02/13/2002) Accumulation unit value at beginning of period $1.92 $1.75 $1.45 $1.33 $1.17 $0.92 $1.00 Accumulation unit value at end of period $1.20 $1.92 $1.75 $1.45 $1.33 $1.17 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 2,272 3,267 4,513 4,983 4,090 2,091 566 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ------------------------------------------------------------------------------------------------------------------------------ MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $0.74 $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 2,427 3,135 4,033 4,710 3,047 2,246 712 ------------------------------------------------------------------------------------------------------------------------------ MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 $1.00 Accumulation unit value at end of period $0.70 $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 1,851 2,675 3,472 4,247 4,567 3,912 1,784 ------------------------------------------------------------------------------------------------------------------------------ MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 $1.00 Accumulation unit value at end of period $1.69 $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 4,698 6,370 6,302 5,189 2,575 1,371 431 ------------------------------------------------------------------------------------------------------------------------------ NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.06 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.56 $1.06 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,048 4,922 4,471 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.58 $1.50 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.58 $1.50 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,437 6,986 8,796 5,927 2,391 -- -- ------------------------------------------------------------------------------------------------------------------------------ OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.37 $1.41 $1.24 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.37 $1.41 $1.24 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,184 4,773 5,725 3,700 1,477 -- -- ------------------------------------------------------------------------------------------------------------------------------ OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.23 $1.14 $1.08 $1.06 $1.00 -- -- Accumulation unit value at end of period $1.04 $1.23 $1.14 $1.08 $1.06 -- -- Number of accumulation units outstanding at end of period (000 omitted) 58,677 62,902 46,387 23,303 4,223 -- -- ------------------------------------------------------------------------------------------------------------------------------
82 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------ PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.92 $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,406 14,755 14,860 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES* (02/13/2002) Accumulation unit value at beginning of period $1.47 $1.48 $1.23 $1.18 $1.03 $0.85 $1.00 Accumulation unit value at end of period $1.01 $1.47 $1.48 $1.23 $1.18 $1.03 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 1,296 1,844 2,541 3,006 3,078 2,659 1,189 *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ------------------------------------------------------------------------------------------------------------------------------ PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES* (12/15/2006) Accumulation unit value at beginning of period $1.13 $1.01 $1.00 -- -- -- -- Accumulation unit value at end of period $0.61 $1.13 $1.01 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 154 300 390 -- -- -- -- *Pioneer International Value VCT Portfolio - Class II Shares liquidated on April 24, 2009. ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (02/13/2002) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 $1.00 Accumulation unit value at end of period $0.91 $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,192 1,630 2,416 2,388 1,649 1,108 583 ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.04 $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 1,497 2,184 2,660 3,019 2,995 2,797 1,392 ------------------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 $1.00 Accumulation unit value at end of period $0.72 $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 264 448 706 598 413 417 192 ------------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 66 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,506 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,184 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 466 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 993 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $0.67 $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,896 9,646 10,682 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.33 $1.27 $1.11 $1.12 $1.00 -- -- Accumulation unit value at end of period $0.83 $1.33 $1.27 $1.11 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 614 980 1,141 1,193 732 -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (02/13/2002) Accumulation unit value at beginning of period $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 $1.00 Accumulation unit value at end of period $1.12 $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 11,506 12,216 10,437 11,559 7,783 5,093 2,665 ------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 83
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 $1.00 Accumulation unit value at end of period $0.93 $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 2,378 4,008 3,764 3,085 2,273 1,117 462 ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (02/13/2002) Accumulation unit value at beginning of period $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 $1.00 Accumulation unit value at end of period $1.08 $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 39,094 33,791 33,401 18,979 15,014 12,047 12,148 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.32%) and (0.32%), respectively. ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.11 $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 63,728 68,622 60,502 37,023 19,654 12,452 5,971 ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND* (02/13/2002) Accumulation unit value at beginning of period $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 $1.00 Accumulation unit value at end of period $1.12 $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 36,755 43,798 50,646 33,232 17,932 5,976 2,058 *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 $1.00 Accumulation unit value at end of period $0.75 $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 7,479 10,299 12,875 11,604 2,482 744 96 ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 $1.00 Accumulation unit value at end of period $1.43 $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 18,675 22,272 19,781 15,541 8,857 4,839 1,529 ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.11 $1.04 $1.04 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.10 $1.11 $1.04 $1.04 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,319 17,958 20,730 13,014 516 -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 $1.00 Accumulation unit value at end of period $1.06 $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 11,973 19,687 25,271 27,474 25,456 15,576 4,269 ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.15 $1.13 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $0.92 $1.15 $1.13 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,540 12,716 13,255 4,187 271 -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 $1.00 Accumulation unit value at end of period $0.75 $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,170 1,887 2,741 2,961 3,400 2,602 889 ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.47 $1.35 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $0.80 $1.47 $1.35 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,049 5,225 7,878 393 -- -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (02/13/2002) Accumulation unit value at beginning of period $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $0.83 $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 5,854 8,187 9,874 10,825 9,241 5,428 1,648 ------------------------------------------------------------------------------------------------------------------------------ RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (02/13/2002) Accumulation unit value at beginning of period $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 $1.00 Accumulation unit value at end of period $1.07 $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 13,972 12,745 15,464 16,802 16,700 13,079 7,646 ------------------------------------------------------------------------------------------------------------------------------ RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 $1.00 Accumulation unit value at end of period $0.65 $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 6,110 10,992 13,741 13,519 4,079 2,868 392 ------------------------------------------------------------------------------------------------------------------------------
84 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ------------------------------------------------------------------------------------------------------------------------------ RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.30 $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.30 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 584 789 734 632 499 -- -- ------------------------------------------------------------------------------------------------------------------------------ RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 $1.00 Accumulation unit value at end of period $0.95 $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 1,315 2,098 3,358 3,917 3,802 2,139 516 ------------------------------------------------------------------------------------------------------------------------------ RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (02/13/2002) Accumulation unit value at beginning of period $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 $1.00 Accumulation unit value at end of period $1.67 $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 5,787 5,242 5,716 4,677 1,199 318 121 ------------------------------------------------------------------------------------------------------------------------------ RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.13 $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,197 3,162 3,800 3,647 2,172 496 105 ------------------------------------------------------------------------------------------------------------------------------ VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.30 $1.35 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.83 $1.30 $1.35 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 21,701 27,381 32,887 26,831 6,418 -- -- ------------------------------------------------------------------------------------------------------------------------------ VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.10 $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $0.61 $1.10 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,113 4,961 4,670 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.19 $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $0.63 $1.19 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,487 1,490 3,111 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ WANGER INTERNATIONAL (02/13/2002) Accumulation unit value at beginning of period $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 $1.00 Accumulation unit value at end of period $1.66 $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 8,509 10,565 12,918 11,470 5,817 2,667 1,055 ------------------------------------------------------------------------------------------------------------------------------ WANGER USA (02/13/2002) Accumulation unit value at beginning of period $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 $1.00 Accumulation unit value at end of period $1.02 $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 14,444 19,504 23,503 23,080 15,408 8,442 3,131 ------------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (02/13/2002) Accumulation unit value at beginning of period $1.40 $1.32 $1.19 $1.15 $1.06 $0.88 $1.00 Accumulation unit value at end of period $0.98 $1.40 $1.32 $1.19 $1.15 $1.06 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,711 1,996 2,159 2,480 2,738 2,182 770 ------------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (02/13/2002) Accumulation unit value at beginning of period $1.63 $1.47 $1.23 $1.13 $1.05 $0.81 $1.00 Accumulation unit value at end of period $0.91 $1.63 $1.47 $1.23 $1.13 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 157 370 403 576 551 374 80 ------------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $0.87 $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 1,472 2,414 3,081 3,829 3,698 3,344 1,985 ------------------------------------------------------------------------------------------------------------------------------ WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 $1.00 Accumulation unit value at end of period $0.87 $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 1,360 1,799 1,527 1,557 1,643 1,441 387 ------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 85 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts................. p. 3 Rating Agencies............................. p. 4 Revenues Received During Calendar Year 2008...................................... p. 4 Principal Underwriter....................... p. 5 Independent Registered Public Accounting Firm...................................... p. 5 Financial Statements
86 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE / RETIREMENT ADVISOR SELECT VARIABLE ANNUITY -- PROSPECTUS 87 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C) 2008-2009 RiverSource Life Insurance Company. All rights reserved. S-6406 M (5/09) PROSPECTUS MAY 1, 2009 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY - BAND 3 INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITY - current or retired employees of Ameriprise Financial, Inc. or its subsidiaries and their spouses (employees), - current or retired Ameriprise Financial, Inc. financial advisors and their spouses (advisors), and - individuals investing an initial purchase payment of $1 million (other individuals). New RiverSource Retirement Advisor Advantage Variable Annuity - Band 3 contracts are not currently being offered. ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10 This prospectus contains information that you should know before investing. Prospectuses are also available for: - AIM Variable Insurance Funds - AllianceBernstein Variable Products Series Fund, Inc. - American Century Variable Portfolios, Inc. - Calvert Variable Series, Inc. - Columbia Funds Variable Insurance Trust - Credit Suisse Trust - Eaton Vance Variable Trust - Evergreen Variable Annuity Trust - Fidelity(R) Variable Insurance Products - Service Class 2 - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - Goldman Sachs Variable Insurance Trust (VIT) - Janus Aspen Series: Service Shares - MFS(R) Variable Insurance Trust(SM) - Neuberger Berman Advisers Management Trust - Oppenheimer Variable Account Funds - Service Shares - PIMCO Variable Insurance Trust (VIT) - Putnam Variable Trust - Class IB Shares - RiverSource Variable Investment Trust (RVST) - The Universal Institutional Funds, Inc. Van Kampen Life Investment Trust - Wanger Advisors Trust - Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). Variable annuities are insurance products that are complex investment vehicles. Be sure to ask your financial advisor about the variable annuity's features, benefits, risks and fees, and whether the variable annuity is appropriate for you, based upon your financial situation and objectives. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 1 This prospectus provides a general description of the contract. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contract other than those contained in this prospectus or the fund prospectuses. Do not rely on any such information or representations. RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits and access to annuity account values. The fees and charges may also be different between each annuity. TABLE OF CONTENTS KEY TERMS.................................... 3 THE CONTRACT IN BRIEF........................ 5 EXPENSE SUMMARY.............................. 6 CONDENSED FINANCIAL INFORMATION (UNAUDITED).. 11 FINANCIAL STATEMENTS......................... 11 THE VARIABLE ACCOUNT AND THE FUNDS........... 11 THE FIXED ACCOUNT............................ 22 BUYING YOUR CONTRACT......................... 22 CHARGES...................................... 24 VALUING YOUR INVESTMENT...................... 26 MAKING THE MOST OF YOUR CONTRACT............. 27 SURRENDERS................................... 34 TSA -- SPECIAL PROVISIONS.................... 35 CHANGING OWNERSHIP........................... 35 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT.................................... 36 OPTIONAL BENEFITS............................ 37 THE ANNUITY PAYOUT PERIOD.................... 41 TAXES........................................ 42 VOTING RIGHTS................................ 45 SUBSTITUTION OF INVESTMENTS.................. 46 ABOUT THE SERVICE PROVIDERS.................. 46 APPENDIX A: EXAMPLE -- OPTIONAL BENEFITS..... 49 APPENDIX B: CONDENSED FINANCIAL INFORMATION (UNAUDITED)................................ 52 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION........ 58
2 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BENEFICIARY: The person you designate to receive benefits in case of the owner's or annuitant's death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB) AND ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. You can elect to purchase either the EEB or the EEP. FIXED ACCOUNT: An account to which you may allocate purchase payments. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contract owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV): This is an optional benefit you can add to your contract for an additional charge that is intended to provide additional death benefit protection in the event of fluctuating fund values. OWNER (YOU, YOUR): The person or persons who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM): This is an optional asset allocation program in which you may elect to participate by adding the optional PN program rider for an additional charge. QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - Individual Retirement Annuities (IRAs) under Section 408(b) of the Code - Roth IRAs under Section 408A of the Code - SIMPLE IRAs under Section 408(p) of the Code - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 3 - Plans under Section 401(k) of the Code - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax-deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RIDER: You receive a rider when you purchase the EEB, EEP MAV and/or PN. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Consists of separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. 4 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THE CONTRACT IN BRIEF PURPOSE: The purpose of the contract is to allow you to accumulate money for retirement or a similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the fixed account and/or subaccounts under the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payout of your contract value (less any applicable premium tax). TAX-DEFERRED RETIREMENT PLANS: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions (RMDs). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the potential tax implications to you. FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract. You will receive a full refund of the contract value. We will not deduct any charges. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (Exception: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among any or all of: - the subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "The Variable Account and the Funds") - the fixed account, which earns interest at a rate that we adjust periodically. Purchase payment allocations to the fixed account may be subject to special restrictions. (see "The Fixed Account") BUYING YOUR CONTRACT: We no longer offer new contracts. However, you have the option of making additional purchase payments in the future. (see "Buying Your Contract") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the accounts until annuity payouts begin, and once per contract year among the subaccounts after annuity payouts begin. You may establish automated transfers among the accounts. Fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (see "Surrenders") BENEFITS IN CASE OF DEATH: If you or the annuitant die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: This contract offers optional features that are available for additional charges if you meet certain criteria. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (see "The Annuity Payout Period") TAXES: Generally, income earned on your contract value grows tax deferred until you surrender it or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. However, Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. (see "Taxes") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 5 EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT ARE PAID WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU PAID AT THE TIME THAT YOU BOUGHT THE CONTRACT AND MAY PAY WHEN YOU SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE 0%
SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will vary between 3.50% and 5.00% depending on the applicable assumed investment rate. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.") THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE $30
(We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) OPTIONAL RIDER FEES (As a percentage of the contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) MAV RIDER FEE 0.25%* EEB RIDER FEE 0.30% EEP RIDER FEE 0.40% PN RIDER FEE Maximum: 0.20% Current: 0.10%
ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value) MORTALITY AND EXPENSE RISK FEE 0.55%
*For contracts purchased before May 1, 2003, the MAV rider fee is 0.15%. ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2008, UNLESS OTHERWISE NOTED. THE FIRST ITEM SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE TOTAL FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.55% 4.35%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Account and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. 6 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AIM V.I. Capital Appreciation Fund, Series II 0.61% 0.25% 0.30% 0.01% 1.17% Shares AIM V.I. Capital Development Fund, Series II 0.75 0.25 0.36 0.01 1.37(1) Shares AIM V.I. Dynamics Fund, Series I Shares 0.75 -- 0.47 -- 1.22 AIM V.I. Financial Services Fund, Series I 0.75 -- 0.48 0.01 1.24(2) Shares AIM V.I. Global Health Care Fund, Series II 0.75 0.25 0.38 0.01 1.39(1) Shares AIM V.I. International Growth Fund, Series II 0.71 0.25 0.35 0.02 1.33(1) Shares AIM V.I. Technology Fund, Series I Shares 0.75 -- 0.41 0.01 1.17(2) AllianceBernstein VPS Global Technology 0.75 0.25 0.18 -- 1.18 Portfolio (Class B) AllianceBernstein VPS Growth and Income 0.55 0.25 0.07 -- 0.87 Portfolio (Class B) AllianceBernstein VPS International Value 0.74 0.25 0.07 -- 1.06 Portfolio (Class B) American Century VP International, Class II 1.24 0.25 0.01 -- 1.50 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class II 0.84 0.25 0.01 -- 1.10 Calvert Variable Series, Inc. Social Balanced 0.70 -- 0.22 -- 0.92 Portfolio Columbia Marsico Growth Fund, Variable Series, 0.92 -- 0.04 -- 0.96 Class A Columbia Marsico International Opportunities 1.02 0.25 0.12 -- 1.39 Fund, Variable Series, Class B Credit Suisse Trust - Commodity Return Strategy 0.50 0.25 0.31 -- 1.06(3) Portfolio Eaton Vance VT Floating-Rate Income Fund 0.58 0.25 0.37 -- 1.20 Evergreen VA Fundamental Large Cap Fund - Class 0.61 0.25 0.19 0.01 1.06 2 Evergreen VA International Equity Fund - Class 2 0.42 0.25 0.25 -- 0.92 Fidelity(R) VIP Contrafund(R) Portfolio Service 0.56 0.25 0.10 -- 0.91 Class 2 Fidelity(R) VIP Growth & Income Portfolio 0.46 0.25 0.13 -- 0.84 Service Class 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 0.56 0.25 0.12 -- 0.93 2 Fidelity(R) VIP Overseas Portfolio Service Class 0.71 0.25 0.16 -- 1.12 2 FTVIPT Franklin Global Real Estate Securities 0.80 0.25 0.30 -- 1.35(4) Fund - Class 2 FTVIPT Franklin Small Cap Value Securities 0.52 0.25 0.16 0.01 0.94(5) Fund - Class 2 FTVIPT Mutual Shares Securities Fund - Class 2 0.60 0.25 0.13 -- 0.98 Goldman Sachs VIT Mid Cap Value 0.80 -- 0.04 -- 0.84 Fund - Institutional Shares Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(6) Fund - Institutional Shares Janus Aspen Series Global Technology Portfolio: 0.64 0.25 0.22 -- 1.11 Service Shares Janus Aspen Series Janus Portfolio: Service 0.64 0.25 0.02 0.01 0.92 Shares (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) Janus Aspen Series Overseas Portfolio: Service 0.64 0.25 0.05 -- 0.94 Shares (previously Janus Aspen Series International Growth Portfolio: Service Shares) MFS(R) Investors Growth Stock Series - Service 0.75 0.25 0.10 -- 1.10 Class MFS(R) New Discovery Series - Service Class 0.90 0.25 0.11 -- 1.26 MFS(R) Utilities Series - Service Class 0.72 0.25 0.09 -- 1.06 Neuberger Berman Advisers Management Trust 1.13 0.25 0.21 -- 1.59(7) International Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service 0.63 0.25 0.02 -- 0.90 Shares Oppenheimer Main Street Small Cap Fund/VA, 0.70 0.25 0.04 -- 0.99 Service Shares Oppenheimer Strategic Bond Fund/VA, Service 0.55 0.25 0.04 0.01 0.85(8) Shares PIMCO VIT All Asset Portfolio, Advisor Share 0.43 0.25 -- 0.76 1.44(9) Class Putnam VT Global Health Care Fund - Class IB 0.70 0.25 0.16 0.01 1.12 Shares (previously Putnam VT Health Sciences Fund - Class IB Shares) Putnam VT International Equity Fund - Class IB 0.75 0.25 0.12 0.01 1.13 Shares
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 7 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Putnam VT Vista Fund - Class IB Shares 0.65% 0.25% 0.15% 0.01% 1.06% RVST Disciplined Asset Allocation -- 0.25 0.89 0.69 1.83(10) Portfolios - Aggressive RVST Disciplined Asset Allocation -- 0.25 0.61 0.66 1.52(10) Portfolios - Conservative RVST Disciplined Asset Allocation -- 0.25 0.30 0.68 1.23(10) Portfolios - Moderate RVST Disciplined Asset Allocation -- 0.25 0.36 0.68 1.29(10) Portfolios - Moderately Aggressive RVST Disciplined Asset Allocation -- 0.25 0.50 0.67 1.42(10) Portfolios - Moderately Conservative RVST RiverSource Partners Variable 0.77 0.13 0.16 -- 1.06(11) Portfolio - Fundamental Value Fund RVST RiverSource Partners Variable 0.89 0.13 3.33 -- 4.35(11) Portfolio - Select Value Fund RVST RiverSource Partners Variable 0.95 0.13 0.19 0.05 1.32(11) Portfolio - Small Cap Value Fund RVST RiverSource Variable Portfolio - Balanced 0.42 0.13 0.16 -- 0.71 Fund RVST RiverSource Variable Portfolio - Cash 0.32 0.13 0.17 -- 0.62 Management Fund RVST RiverSource Variable 0.44 0.13 0.15 -- 0.72 Portfolio - Diversified Bond Fund RVST RiverSource Variable 0.59 0.13 0.14 -- 0.86 Portfolio - Diversified Equity Income Fund RVST RiverSource Variable Portfolio - Dynamic 0.44 0.13 0.15 0.02 0.74 Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) RVST RiverSource Variable Portfolio - Global 0.66 0.13 0.18 -- 0.97(11) Bond Fund RVST RiverSource Variable Portfolio - Global 0.44 0.13 0.17 -- 0.74(11) Inflation Protected Securities Fund RVST RiverSource Variable Portfolio - High Yield 0.59 0.13 0.17 -- 0.89 Bond Fund RVST RiverSource Variable Portfolio - Income 0.61 0.13 0.18 -- 0.92 Opportunities Fund RVST RiverSource Variable Portfolio - Mid Cap 0.58 0.13 0.17 -- 0.88(11) Growth Fund RVST RiverSource Variable Portfolio - Mid Cap 0.73 0.13 0.18 -- 1.04 Value Fund RVST RiverSource Variable Portfolio - S&P 500 0.22 0.13 0.19 0.01 0.55(11) Index Fund RVST RiverSource Variable Portfolio - Short 0.48 0.13 0.18 -- 0.79 Duration U.S. Government Fund RVST Seligman Variable Portfolio - Growth Fund 0.45 0.13 0.17 0.04 0.79 (previously RVST RiverSource Variable Portfolio - Growth Fund) RVST Seligman Variable Portfolio - Larger-Cap 0.48 0.13 0.67 -- 1.28(11) Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) RVST Seligman Variable Portfolio - Smaller-Cap 0.62 0.13 0.31 -- 1.06(11) Value Fund (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) RVST Threadneedle Variable Portfolio - Emerging 1.15 0.13 0.33 -- 1.61 Markets Fund RVST Threadneedle Variable 0.82 0.13 0.20 -- 1.15 Portfolio - International Opportunity Fund Van Kampen Life Investment Trust Comstock 0.56 0.25 0.04 -- 0.85 Portfolio, Class II Shares Van Kampen UIF Global Real Estate Portfolio, 0.85 0.35 0.37 -- 1.57(12) Class II Shares Van Kampen UIF Mid Cap Growth Portfolio, Class 0.75 0.35 0.31 -- 1.41(12) II Shares Wanger International 0.84 -- 0.18 -- 1.02 Wanger USA 0.85 -- 0.11 -- 0.96 Wells Fargo Advantage VT Asset Allocation Fund 0.55 0.25 0.23 0.01 1.04(13) Wells Fargo Advantage VT International Core Fund 0.75 0.25 0.43 -- 1.43(13) Wells Fargo Advantage VT Opportunity Fund 0.73 0.25 0.20 0.04 1.22(13) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 -- 1.26(13)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.45% of average daily net assets. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.36% for AIM V.I. Capital Development Fund, Series II Shares, 1.38% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. 8 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS (2) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series I shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.30%. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.23% for AIM V.I. Financial Services Fund, Series I Shares and 1.16% for AIM V.I. Technology Fund, Series I Shares. (3) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95%. (4) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.03%. (5) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent of the Fund's fees and expenses of the acquired fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.93%. (6) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. After expense reductions, net expenses would be 0.71%. (7) Neuberger Berman Management Inc. ("NBM") has undertaken through Dec. 31, 2012, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.53%. (8) The other expenses in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2008, the transfer agent fees did not exceed this expense limitation. In addition, for Oppenheimer Strategic Bond Fund/VA, Service Shares, the Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82%. (9) PIMCO has contractually agreed through Dec. 31, 2009, to reduce its advisory fee to the extent that the acquired fund fees and expenses attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.42%. (10) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. (11) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.99% for RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund, 1.14% for RVST RiverSource Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund, 0.96% for RVST RiverSource Variable Portfolio - Global Bond Fund, 0.74% for RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund, 1.00% for RVST RiverSource Variable Portfolio - Mid Cap Growth Fund, 0.53% for RVST RiverSource Variable Portfolio - S&P 500 Index Fund, 1.04% for RVST Seligman Variable Portfolio - Larger-Cap Value Fund and 1.12% for RVST Seligman Variable Portfolio - Smaller-Cap Value Fund. (12) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursements, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.15% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. The Adviser reserves the right to terminate any waivers and/or reimbursements at any time and without notice. (13) The adviser has contractually agreed through April 30, 2010 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After this time, the net operating expense ratio may be increased only with approval of the Board of Trustees. After fee waivers and expense reimbursements, net expenses would be 1.00% for Wells Fargo Advantage VT Asset Allocation Fund, 1.00% for Wells Fargo Advantage VT International Core Fund, 1.07% for Wells Fargo Advantage VT Opportunity Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 9 EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE CONTRACT WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES*, VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. This example assumes the maximum fees and expenses of any of the funds. It assumes that you select the optional MAV, EEP and PN**. Although your actual costs may be higher or lower, based on this assumption your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS $593 $1,762 $2,910 $5,688
MINIMUM EXPENSES. This example assumes the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. It assumes that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS $116 $363 $628 $1,386
* In these examples, the $30 contract administrative charge is approximated as a .035% charge. This percentage was determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to the contract by the total average net assets that are attributable to the contract. ** Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for the optional rider is reflected rather than the fee that is currently being charged. 10 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information for the subaccounts in Appendix B. We do not include condensed financial information for subaccounts that are new and did not have any activity as of the financial statement date. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the subaccounts in the SAI. The SAI does not include audited financial statements for subaccounts that are new and did not have any activity as of the financial statement date. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contract currently offers subaccounts investing in shares of the funds listed in the table below. - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 11 - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue, including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including expense payments and non-cash compensation. The amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates. RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in 2008. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. 12 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 13 UNLESS AN ASSET ALLOCATION PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- AIM V.I. Capital Seeks growth of capital. Invesco Aim Advisors, Appreciation Inc. adviser, advisory Fund, Series II entities affiliated with Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Capital Seeks long-term growth of capital. Invesco Aim Advisors, Development Fund, Inc. adviser, advisory Series II Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Dynamics Seeks long-term capital growth. Invesco Aim Advisors, Fund, Series I Inc. adviser, advisory Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Seeks capital growth. Invesco Aim Advisors, Financial Inc. adviser, advisory Services Fund, entities affiliated with Series I Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ----------------------------------------------------------------------------------------
14 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- AIM V.I. Global Seeks capital growth. Invesco Aim Advisors, Health Care Fund, Inc. adviser, advisory Series II Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Seeks long-term growth of capital. Invesco Aim Advisors, International Inc. adviser, advisory Growth Fund, entities affiliated with Series II Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Seeks capital growth. Invesco Aim Advisors, Technology Fund, Inc. adviser, advisory Series I Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Global Technology Portfolio (Class B) ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Growth and Income Portfolio (Class B) ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS International Value Portfolio (Class B) ---------------------------------------------------------------------------------------- American Century Seeks capital growth. American Century Global VP International, Investment Management, Class II Inc. ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Mid Cap Value, secondary objective. Investment Management, Class II Inc. ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 15
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. American Century VP Ultra(R), Investment Management, Class II Inc. ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Value, Class secondary objective. Investment Management, II Inc. ---------------------------------------------------------------------------------------- Calvert Variable Seeks competitive total return through Calvert Asset Management Series, Inc. actively managed portfolio of stocks, bonds Company, Inc., adviser. Social Balanced and money market instruments which offer New Amsterdam Partners, Portfolio income and capital growth opportunity and LLP, subadviser on which satisfy Portfolio's investment and equity portion; no social criteria. subadviser on fixed- income portion. ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management Growth Fund, Advisors, LLC, adviser; Variable Series, Marsico Capital Class A Management, LLC, sub- adviser. ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management International Advisors, LLC, adviser; Opportunities Marsico Capital Fund, Variable Management, LLC, sub- Series, Class B adviser. ---------------------------------------------------------------------------------------- Credit Suisse Seeks total return. Credit Suisse Asset Trust - Commodity Management, LLC Return Strategy Portfolio ---------------------------------------------------------------------------------------- Eaton Vance VT Seeks high level of current income. Eaton Vance Management Floating-Rate Income Fund ---------------------------------------------------------------------------------------- Evergreen VA Seeks capital growth with the potential for Evergreen Investment Fundamental Large current income. Management Company, LLC Cap Fund - Class 2 ---------------------------------------------------------------------------------------- Evergreen VA Seeks long-term capital growth and Evergreen Investment International secondarily, modest income. Management Company, LLC Equity Fund - Class 2 ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Normally invests primarily in common Research Company (FMR), Portfolio Service stocks. Invests in securities of companies investment manager; FMR Class 2 whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks high total return through a FMR, investment manager; Growth & Income combination of current income and capital FMR U.K., FMR Far East, Portfolio Service appreciation. Normally invests a majority sub-advisers. Class 2 of assets in common stocks with a focus on those that pay current dividends and show potential for capital appreciation. Invests in domestic and foreign issuers. The Fund invests in either "growth" stocks or "value" stocks or both. ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Mid Cap Portfolio invests primarily in common stocks. FMR U.K., FMR Far East, Service Class 2 Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. ----------------------------------------------------------------------------------------
16 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Overseas invests primarily in common stocks FMR U.K., FMR Far East, Portfolio Service allocating investments across different Fidelity International Class 2 countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities. (FIIA) and FIIA U.K., sub-advisers. ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks high total return. Franklin Templeton Global Real Institutional, LLC Estate Securities Fund - Class 2 ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks long-term total return. Franklin Advisory Small Cap Value Services, LLC Securities Fund - Class 2 ---------------------------------------------------------------------------------------- FTVIPT Mutual Seeks capital appreciation, with income as Franklin Mutual Shares Securities a secondary goal. Advisers, LLC Fund - Class 2 ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term capital appreciation. Goldman Sachs Asset Mid Cap Value Management, L.P. Fund - Instituti- onal Shares ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. dividend income. Management, L.P. Equity Fund - Instituti- onal Shares ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital. Janus Capital Management Series Global LLC Technology Portfolio: Service Shares ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital in a Janus Capital Management Series Janus manner consistent with the preservation of LLC Portfolio: capital. Service Shares (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital. Janus Capital Management Series Overseas LLC Portfolio: Service Shares (previously Janus Aspen Series International Growth Portfolio: Service Shares) ---------------------------------------------------------------------------------------- MFS(R) Investors Seeks capital appreciation. MFS Investment Growth Stock Management(R) Series - Service Class ---------------------------------------------------------------------------------------- MFS(R) New Seeks capital appreciation. MFS Investment Discovery Management(R) Series - Service Class ---------------------------------------------------------------------------------------- MFS(R) Utilities Seeks total return. MFS Investment Series - Service Management(R) Class ---------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers investing primarily in common stocks of Management Inc. Management Trust foreign companies. International Portfolio (Class S) ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 17
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- Oppenheimer Seeks long-term capital appreciation. OppenheimerFunds, Inc. Global Securities Fund/VA, Service Shares ---------------------------------------------------------------------------------------- Oppenheimer Main Seeks capital appreciation. OppenheimerFunds, Inc. Street Small Cap Fund/VA, Service Shares ---------------------------------------------------------------------------------------- Oppenheimer Seeks high level of current income OppenheimerFunds, Inc. Strategic Bond principally derived from interest on debt Fund/VA, Service securities. Shares ---------------------------------------------------------------------------------------- PIMCO VIT All Seeks maximum real return consistent with Pacific Investment Asset Portfolio, preservation of real capital and prudent Management Company LLC Advisor Share investment management period. Class ---------------------------------------------------------------------------------------- Putnam VT Global Seeks capital appreciation. Putnam Investment Health Care Management, LLC Fund - Class IB Shares (previously Putnam VT Health Sciences Fund - Class IB Shares) ---------------------------------------------------------------------------------------- Putnam VT Seeks capital appreciation. Putnam Investment International Management, LLC Equity Fund - Class IB Shares ---------------------------------------------------------------------------------------- Putnam VT Vista Seeks capital appreciation. Putnam Investment Fund - Class IB Management, LLC Shares ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with an aggressive level of LLC Portfolios - Agg- risk. This is a "fund of funds" and seeks ressive to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a conservative level of LLC Portfolios - Con- risk. This is a "fund of funds" and seeks servative to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate level of risk. LLC Portfolios - Mod- This is a "fund of funds" and seeks to erate achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ----------------------------------------------------------------------------------------
18 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate aggressive level LLC Portfolios - - of risk. This is a "fund of funds" and Moderately seeks to achieve its objective by investing Aggressive in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate conservative LLC Portfolios - - level of risk. This is a "fund of funds" Moderately and seeks to achieve its objective by Conservative investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital growth. RiverSource Investments, Partners Variable LLC, adviser; Davis Portfolio - Fund- Selected Advisers, L.P., amental Value subadviser. Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Partners Variable LLC, adviser; Systematic Portfolio - Sele- Financial Management, ct Value Fund L.P. and WEDGE Capital Management L.L.P., sub- advisers. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Partners Variable LLC, adviser; Barrow, Portfolio - Small Hanley, Mewhinney & Cap Value Fund Strauss, Inc., Denver Investment Advisors LLC, Donald Smith & Co., Inc., River Road Asset Management, LLC and Turner Investment Partners, Inc., subadvisers. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum total investment return RiverSource Investments, Variable through a combination of capital growth and LLC Portfolio - Bala- current income. nced Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum current income consistent RiverSource Investments, Variable with liquidity and stability of principal. LLC Portfolio - Cash Management Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income while RiverSource Investments, Variable attempting to conserve the value of the LLC Portfolio - Dive- investment for the longest period of time. rsified Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and, as RiverSource Investments, Variable a secondary goal, steady growth of capital. LLC Portfolio - Dive- rsified Equity Income Fund ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 19
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST RiverSource Seeks capital appreciation. RiverSource Investments, Variable LLC Portfolio - Dyna- mic Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks high total RiverSource Investments, Variable return through income and growth of LLC Portfolio - Glob- capital. al Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks total RiverSource Investments, Variable return that exceeds the rate of inflation LLC Portfolio - Glob- over the long-term. al Inflation Protected Securities Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high current income, with capital RiverSource Investments, Variable growth as a secondary objective. LLC Portfolio - High Yield Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high total return through current RiverSource Investments, Variable income and capital appreciation. LLC Portfolio - Inco- me Opportunities Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Growth Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Value Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Variable LLC Portfolio - S&P 500 Index Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and RiverSource Investments, Variable safety of principal consistent with LLC Portfolio - Short investment in U.S. government and Duration U.S. government agency securities. Government Fund ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC Portfolio - Grow- th Fund (previously RVST RiverSource Variable Portfolio - Grow- th Fund) ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Larg- er-Cap Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) ----------------------------------------------------------------------------------------
20 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Kenwood Portfolio - Smal- Capital Management LLC, ler-Cap Value sub-adviser. Fund (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Portfolio - Emer- Threadneedle ging Markets Fund International Limited, an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks capital appreciation. RiverSource Investments, Variable LLC, adviser; Portfolio - In- Threadneedle ternational International Limited, Opportunity Fund an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ---------------------------------------------------------------------------------------- Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust investments in equity securities, including Management Comstock common stocks, preferred stocks and Portfolio, Class securities convertible into common and II Shares preferred stocks. ---------------------------------------------------------------------------------------- Van Kampen UIF Seeks current income and capital Morgan Stanley Global Real appreciation. Investment Management Estate Portfolio, Inc., doing business as Class II Shares Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. ---------------------------------------------------------------------------------------- Van Kampen UIF Seeks long-term capital growth. Morgan Stanley Mid Cap Growth Investment Management Portfolio, Class Inc., doing business as II Shares Van Kampen. ---------------------------------------------------------------------------------------- Wanger Seeks long-term growth of capital. Columbia Wanger Asset International Management, L.P. ---------------------------------------------------------------------------------------- Wanger USA Seeks long-term capital appreciation. Columbia Wanger Asset Management, L.P. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Asset Allocation adviser; Wells Capital Fund Management Incorporated, sub-adviser. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, International adviser; Wells Capital Core Fund Management Incorporated, sub-adviser. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Opportunity Fund adviser; Wells Capital Management Incorporated, sub-adviser. ----------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 21
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Small Cap Growth adviser; Wells Capital Fund Management Incorporated, sub-adviser. ----------------------------------------------------------------------------------------
THE FIXED ACCOUNT You also may allocate purchase payments and transfer contract value to the fixed account. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of the company. The value of the fixed account increases as we credit interest to the account. Purchase payments and transfers to the fixed account become part of our general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate for your fixed account is guaranteed for 12 months from the contract issue date. Thereafter, we will change rates from time to time at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and the RiverSource Life's revenues and expenses. Interests in the fixed account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract -- Transfer Policies" for restrictions on transfers involving the fixed account.) BUYING YOUR CONTRACT New contracts are not currently being offered. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can become an annuitant if you are 90 or younger. The contract provides for allocation of purchase payments to the subaccounts of the variable account and/or to the fixed account in tenth of percent increments. For contracts issued on or after July 1, 2003, we reserve the right to limit the amount of any purchase payment allocated to the fixed account to 30% of the purchase payment although currently we allow more than 30% of a purchase payment to be so allocated to the fixed account. We applied your initial purchase payment to the fixed account and subaccounts you selected within two business days after we received it at our corporate office. We will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. When we processed your application, we established the settlement date as the maximum age (or contract anniversary if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - no earlier than the 60th day after the contract's effective date; and 22 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75 or a date that has been otherwise agreed to by us. (In Pennsylvania, the maximum settlement date ranges from age 85 to 96 based on the annuitant's age when we issue the contract. See contract for details.) FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - for IRAs, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2; or - all other qualified annuities, by April 1 of the year following the calendar year when the annuitant reaches age 70 1/2, or, if later, retires (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. (In Pennsylvania, the annuity payout ranges from age 85 to 96 based on the annuitant's age when the contract is issued. See contract for details.) Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs and TSAs, and in that case, may delay annuity payout start date for this contract. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their completed claim. A beneficiary will bear the investment risk of the variable account until we receive the beneficiary's completed claim. If there is no named beneficiary, then the default provisions of your contract will apply. (See "Benefits in Case of Death" for more about beneficiaries.) PURCHASE PAYMENTS MINIMUM ALLOWABLE PURCHASE PAYMENTS(1) FOR EMPLOYEES/ADVISORS If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month If paying by any other method: $50 for any additional payments MAXIMUM ALLOWABLE ANNUAL PURCHASE PAYMENTS(2) FOR EMPLOYEES/ADVISORS $100,000 for ages through 85 $50,000 for ages 86 to 90 FOR OTHER INDIVIDUALS $100,000 for ages through 85 $50,000 for ages 86 to 90 (1) If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in New Jersey. (2) These annual contribution limits apply in total to all RiverSource Life annuities you own. We reserve the right to increase maximum limits. For qualified annuities the tax-deferred retirement plan's or the Code's limits on annual contributions also apply. We reserve the right to not accept purchase payments allocated to the fixed account for twelve months following either: 1. a partial surrender from the fixed account; or 2. a lump sum transfer from the fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 23 2 BY SCHEDULED PAYMENT PLAN FOR EMPLOYEES/ADVISORS ONLY We can help you set up: - an automatic payroll deduction, salary reduction or other group billing arrangement; or - a bank authorization. LIMITATIONS ON THE USE OF CONTRACT If mandated by applicable law, including, but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values or to satisfy other statutory obligations. Under these circumstances we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or a court of competent jurisdiction. CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. We deduct $30 from the contract value on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the fixed account in the same proportion your interest in each account bears to your total contract value. We will waive this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the charge at the time of surrender regardless of the contract value or purchase payments made. We cannot increase the annual contract administrative charge and it does not apply after annuity payouts begin or when we pay death benefits. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee and it totals 0.55% of their average daily net assets on an annual basis. This fee covers the mortality and expense risk that we assume. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. MAV RIDER FEE We charge a fee for the optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.25%(2) of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. 24 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS EEB RIDER FEE We charge a fee for the optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. EEP RIDER FEE We charge a fee for the optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.40% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value. If the contract terminates for any reason except death or at the settlement date, we will deduct this fee, adjusted for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary (subject to the restrictions given in "Optional Benefits"), we will deduct this fee on that anniversary. We cannot increase this annual fee after the rider effective date and it does not apply after annuity payouts begin or when we pay death benefits. (1) You may select any one of the MAV, EEB or EEP riders. Or you may select the MAV and either the EEB or the EEP. However, you cannot select both the EEB and EEP. Riders may not be available in all states. The MAV, EEB and EEP riders are only available if you and the annuitant are 75 or younger at the rider effective date. EEP is only available on contracts purchased through a transfer or exchange. (2) For contracts purchased before May 1, 2003, the MAV rider fee is 0.15%. PN RIDER FEE We charge a fee for this optional feature only if you select it. This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value less any excluded accounts. (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation program") In Washington the fee will only be deducted from the subaccounts. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If we allow you to add the rider other than on a contract anniversary, we reserve the right to adjust the rider fee for the number of calendar days coverage was in place. If the rider terminates for any reason other than on a contract anniversary, we reserve the right to deduct this fee at that time and adjust it for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary, we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. SURRENDER CHARGE There is no charge if you surrender all or part of your contract. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will vary between 3.50% and 5.00% depending on the applicable assumed investment rate. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (waived in case of death or disability). POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate the contract administrative and surrender charges. However, we expect this to occur infrequently. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectus for those funds. (See "Annual Operating Expenses of the Funds.") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 25 PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon the state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you make purchase payments or when you surrender your contract. VALUING YOUR INVESTMENT We value your accounts as follows: FIXED ACCOUNT We value the amounts you allocated to the fixed account directly in dollars. The fixed account value equals: - the sum of your purchase payments and transfer amounts allocated to the fixed account; - plus interest credited; - minus the sum of amounts surrendered and amounts transferred out; - minus any prorated contract administrative charge; - minus any prorated portion of the MAV rider fee (if selected); - minus any prorated portion of the EEB rider fee (if selected); - minus any prorated portion of the EEP rider fee (if selected); and - minus any prorated portion of the PN rider fee (if selected). SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge or fee for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - dividing that sum by the previous adjusted net asset value per share; and - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - additional purchase payments you allocate to the subaccounts; - transfers into or out of the subaccounts; - partial surrenders; and a deduction of: - a prorated portion of the contract administrative charge; - a prorated portion of the MAV rider fee (if selected); - a prorated portion of the EEB rider fee (if selected); - a prorated portion of the EEP rider fee (if selected); and - a prorated portion of the PN rider fee (if selected). 26 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS Accumulation unit values will fluctuate due to: - changes in fund net asset value; - fund dividends distributed to the subaccounts; - fund capital gains or losses; - fund operating expenses; and - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the fixed account to one or more subaccounts. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. You may not set up an automated transfer if the PN is selected. The potential effect is to lower your average cost per unit. HOW DOLLAR-COST AVERAGING WORKS
NUMBER By investing an equal number of dollars AMOUNT ACCUMULATION OF UNITS each month ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy Mar 100 17 5.88 more units when the (ARROW) Apr 100 15 6.67 per unit market price is low ... May 100 16 6.25 May 100 16 6.25 Jun 100 18 5.56 Jul 100 17 5.88 and fewer units Aug 100 19 5.26 when the per unit (ARROW) Sept 100 21 4.76 market price is high. Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features contact your financial advisor. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semiannually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in numbers with no more than one digit past the decimal. Asset rebalancing does not apply to the fixed account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 27 Different rules apply to asset rebalancing under the Portfolio Navigator program (see "Portfolio Navigator Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN Program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account (if available under the PN Program) that represent various asset classes (allocation options). The PN Program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You may elect to participate in the PN Program at any time for an additional charge (see "Charges"). You may cancel your participation in the PN program at any time by giving us written notice. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. You should review any PN Program information, including the terms of the PN program, carefully. Your financial advisor can provide you with additional information and can answer questions you may have on the PN Program. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN Program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN Program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investment's role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN Program. Currently, the PN Program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflict of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. POTENTIAL CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the 28 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. As an affiliate of RiverSource Investments, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Series Trust funds. In this role RiverSource Investments may, from time to time, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN Program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from the fixed account than from other allocation options. We therefore may have an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN Program. These officers and employees may have an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. Your financial advisor can help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN Program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts and/or the fixed account that make up that model portfolio. By participating in the PN Program, you instruct us to invest your contract value in the subaccounts and/or the fixed account (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN Program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Dollar-cost averaging arrangements (DCA) are currently not allowed while you are participating in the PN program. If we choose to allow for DCA arrangements, we will designate one or more subaccounts as "excluded accounts" which are not part of a model portfolio. If an account has been designated as an excluded account and you set up a DCA arrangement, we will make monthly transfers in accordance with your instructions from the excluded account into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 29 portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN Program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value according to the updated model portfolio. If you do not want your contract value to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. We reserve the right to change the terms and conditions of the PN Program upon written notice to you. This includes but is not limited to the right to: - limit your choice of models based on the amount of your initial purchase payment we accept; - substitute a fund of funds for your current model portfolio if permitted under applicable securities law; and - discontinue the PN Program. We will give you 30 days' written notice of any such change. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN Program, we would either have to find a replacement investment adviser or terminate the PN Program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). RISKS. Asset allocation through the PN Program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. Investment performance of your contract value could be better or worse by participating in the PN Program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing or periodic updating of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model is in effect. You may transfer contract value from any one subaccount, or the fixed account, to another subaccount before annuity payouts begin. Certain restrictions apply to transfers involving the fixed account. When your request to transfer will be processed depends on when we receive it: - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. 30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Subject to state regulatory requirements, we may suspend or modify transfer privileges at any time. For information on transfers after annuity payouts begin, see "Transfer policies" below. TRANSFER POLICIES - Before annuity payouts begin, you may transfer contract values between the subaccounts. You may also transfer contract values from the subaccounts to the fixed account. However, if you made a transfer from the fixed account to the subaccounts, you may not make a transfer from any subaccount back to the fixed account until the next contract anniversary. For contracts issued on or after July 1, 2003, currently you may transfer any amount of contract value to the fixed account. However, we reserve the right to limit the amount transferred to the fixed account so that the value of the fixed account after the transfer is not greater than the 30% of the contract value. - You may transfer contract values from the fixed account to the subaccounts once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). For contracts issued on or after July 1, 2003, transfers out of the fixed account are limited to the greater of: a) 30% of the fixed account value at the beginning of the contract year, or b) the amount transferred out of the fixed account in the previous contract year, excluding any automated transfer amounts. - If we receive your request within 30 days before the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the anniversary. - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the valuation date we receive it. - We will not accept requests for transfers from the fixed account at any other time. - Once annuity payouts begin, you may not make transfers to or from the fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT INVEST IN THIS CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU. Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - diluting the value of an investment in an underlying fund in which a subaccount invests; - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and, - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 31 IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKETING TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic asset balancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer requests, if, in our sole judgment, the dollar amount of the transfer request would adversely affect unit values. If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - requiring transfer requests to be submitted only by first-class U.S. mail; - not accepting hand-delivered transfer requests or requests made by overnight mail; - not accepting telephone or electronic transfer requests; - requiring a minimum time period between each transfer; - not accepting transfer requests of an agent acting under power of attorney; - limiting the dollar amount that you may transfer at any one time; - suspending the transfer privilege; or - modifying instructions under an automated transfer program to exclude a restricted fund if you do not provide new instructions. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable account are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. 32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers among your subaccounts or fixed account or partial surrenders from the accounts. You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - Automated transfers from the fixed account to any one of the subaccounts may not exceed an amount that, if continued, would deplete the fixed account within 12 months. - Automated surrenders may be restricted by applicable law under some contracts. - You may not make additional purchase payments if automated partial surrenders are in effect. - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - If a PN program is in effect, you are not allowed to set up an automated transfers. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the fixed account) 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 33 MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and tape recording calls. We will not allow a telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request in good order at our corporate office before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, or any applicable optional rider charges (see "Charges"), and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the fixed account in the same proportion as your value in each account correlates to your total contract value, unless you request otherwise. The minimum contract value after partial surrender is $600. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - payable to you; - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 2 BY WIRE - request that payment be wired to your bank; - bank account must be in the same ownership as your contract; and - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: -- the surrender amount includes a purchase payment check that has not cleared; -- the NYSE is closed, except for normal holiday and weekend closings; -- trading on the NYSE is restricted, according to SEC rules; -- an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or -- the SEC permits us to delay payment for the protection of security holders. 34 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations thereunder, unless we have a prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: -- you are at least age 59 1/2; -- you are disabled as defined in the Code; -- you severed employment with the employer who purchased the contract; -- the distribution is because of your death; -- effective Jan. 1, 2009, the distribution is due to plan termination; or -- effective Jan. 1, 2009, you are a military reservist. - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. The change will become binding on us when we receive and record it. We will honor any change of ownership request received in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the MAV, EEB or EEP. If you change ownership of your contract, we will terminate the EEP. This includes both the EEP Part I benefits and the EEP Part II benefits. (See the description of these terms in "Optional Benefits.") In addition, the terms of the EEB and the MAV will change due to a change of ownership. If either the new owner or the annuitant is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over". We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If either the new owner or the annuitant is older than age 75, the MAV will terminate. If the MAV on the date of ownership change is greater than the account value on the date of the ownership change, the MAV will be set equal to the account value. Otherwise, the MAV value will not change due to a change in ownership. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 35 If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in similar capacity, ownership of the contract may be transferred to the annuitant. BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon the earlier of your death or the annuitant's death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner or the annuitant. If you or the annuitant die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If both you and the annuitant are age 80 or younger on the date of death, the beneficiary receives the greatest of: - contract value less any applicable rider charges; - purchase payments minus adjusted partial surrenders; or - the contract value as of the most recent sixth contract anniversary, preceding the date of death, plus any purchase payments since that anniversary, minus adjusted partial surrenders since that anniversary. If either you or the annuitant are age 81 or older on the date of death, the beneficiary receives the greater of: - contract value less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. ADJUSTED PARTIAL SURRENDERS PS X DB --------- CV
PS = the amount by which the contract value is reduced as a result of the partial surrender. DB = is the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU AND THE ANNUITANT ARE AGE 80 OR YOUNGER: - You purchase the contract with a payment of $20,000. - On the sixth contract anniversary the contract value grows to $30,000. - During the seventh contract year the contract value falls to $28,000 at which point you take a $1,500 partial surrender, leaving a contract value of $26,500. We calculate the death benefit as follows: The contract value on the most recent sixth contract anniversary: $30,000.00 plus purchase payments made since that anniversary: +0.00 minus adjusted partial surrenders taken since that anniversary calculated as: $1,500 x $30,000 ---------------- $28,000 -1,607.14 for a death benefit of: $28,392.86
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date our death claim requirements are fulfilled. We will determine the contract's value using the next accumulation unit value we calculate on that valuation date. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If you elected any optional contract features and riders your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of these features or riders. 36 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - the payout period does not extend beyond the beneficiary's life or life expectancy. QUALIFIED ANNUITIES - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own with the contract value equal to the death benefit that would otherwise have been paid, or elect an annuity payout plan or another plan agreed to by us. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. If you elected any optional contract features and riders your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of these features or riders. - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC unless the beneficiary fails to meet the requirements of using this option. OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you or the annuitant is older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to fixed account values during the time you have amounts allocated to the fixed account. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If both you and the annuitant are age 75 or younger at contract issue, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract according to terms determined by us and at our sole discretion. On the first contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 37 if the current contract value is higher. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value less any applicable rider charges; or - purchase payments minus adjusted partial surrenders; or - the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. TERMINATING THE MAV - You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. For an example, see Appendix A. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total variable account contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides reduced benefits if you or the annuitant is age 70 or older at the rider effective date and it does not provide any additional benefit before the first contract anniversary. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor whether or not the EEB is appropriate for your situation. If both you and the annuitant are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract according to terms determined by us and at our sole discretion. You may not select this rider if you select the EEP. The EEB provides that if you or the annuitant dies after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Death Benefit") or the MAV death benefit amount, if applicable, PLUS - 40% of your earnings at death if you and the annuitant were under age 70 on the rider effective date; or - 15% of your earnings at death if you or the annuitant were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB AND EEP: If the rider effective date for the EEB or EEP is the contract issue date, earnings at death is an amount equal to: - the standard death benefit amount or the MAV death benefit amount, if applicable (the "death benefit amount") - MINUS purchase payments not previously surrendered. 38 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount - MINUS the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. For an example, see Appendix. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If the spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract, then he or she may choose to continue the EEB. In this case, the following conditions will apply: - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP) The EEP is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEP provides reduced benefits if you or the annuitant are age 70 or older at the rider effective date. It does not provide any additional benefit before the first contract anniversary and it does not provide any benefit beyond what is offered under the EEB during the second contract year. The EEP also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because part of the benefit paid by the EEP is determined by the amount of earnings at death. Be sure to discuss with your financial advisor whether or not the EEP is appropriate for your situation. If both you and the annuitant are age 75 or younger at contract issue, you may choose to add the EEP to your contract. You must elect the EEP at the time you purchase your contract and your rider effective date will be the contract issue date. THIS RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 39 RIDER IS ONLY AVAILABLE UNDER ANNUITIES PURCHASED THROUGH AN EXCHANGE OR DIRECT TRANSFER FROM ANOTHER ANNUITY OR A LIFE INSURANCE POLICY. You may not select this rider if you select the EEB. The EEP provides that if you or the annuitant dies after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - EEP Part I benefits, which equal the benefits payable under the EEB described above; PLUS - EEP Part II benefits, which equal a percentage of exchange purchase payments identified at issue not previously surrendered as follows:
PERCENTAGE IF YOU AND THE ANNUITANT ARE PERCENTAGE IF YOU OR THE ANNUITANT ARE CONTRACT YEAR UNDER AGE 70 ON THE RIDER EFFECTIVE DATE 70 OR OLDER ON THE RIDER EFFECTIVE DATE One and Two 0% 0% Three and Four 10% 3.75% Five or more 20% 7.5%
Additional death benefits payable under the EEP are not included in the adjusted partial surrender calculation. If after 6 months, no exchange purchase payments have been received, we will contact you and you will have an additional 30 days to follow-up on exchange purchase payments identified at issue but not received by us. If after these 30 days we have not received any exchange purchase payments, we will convert the EEP rider into an EEB. Another way to describe the benefits payable under the EEP rider is as follows: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Death Benefit") or the MAV death benefit amount, if applicable PLUS
IF YOU AND THE ANNUITANT ARE UNDER CONTRACT YEAR AGE 70 ON THE RIDER EFFECTIVE DATE, ADD . . . 1 Zero 2 40% x earnings at death (see above) 3 & 4 40% x (earnings at death + 10% of exchange purchase payments*) 5+ 40% x (earnings at death + 20% of exchange purchase payments*) IF YOU OR THE ANNUITANT ARE AGE 70 CONTRACT YEAR OR OLDER ON THE RIDER EFFECTIVE DATE, ADD . . . 1 Zero 2 15% x earnings at death 3 & 4 15% x (earnings at death + 3.75% of exchange purchase payments*) 5+ 15% x (earnings at death + 7.5% of exchange purchase payments)
* Exchange purchase payments are purchase payments exchanged from another contract that are identified at issue and not previously surrendered. We are not responsible for identifying exchange purchase payments if we did not receive proper notification from the company from which the purchase payments are exchanged. TERMINATING THE EEP - You may terminate the EEP rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The EEP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEP rider will terminate in the case of an ownership change. - The EEP rider will terminate in the case of spousal continuation if the new owner is age 76 or older. For an example, see Appendix A. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEP. If your spouse has reached age 76 at the time he or she elects to continue the contract, the EEP rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she cannot continue the EEP. However, he or she may choose to convert the EEP rider into an EEB. In this case, the following conditions will apply: - the EEB rider will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the EEB rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEP rider. If your spouse chooses not to convert the EEP rider into an EEB, the standard death benefit amount (or the MAV death benefit amount, if applicable) will apply. NOTE: For special tax considerations associated with the EEP, see "Taxes." 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date (less any applicable premium tax). During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - the annuity payout plan you select; - the annuitant's age and, in most cases, sex; - the annuity table in the contract; and - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to the age and, when applicable, the sex of the annuitant. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate Table A results in a higher initial payment, but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan: - PLAN A - LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only one monthly payout, we will not make any more payouts. - PLAN B - LIFE ANNUITY WITH FIVE, TEN OR 15 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten or 15 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - PLAN C - LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. - PLAN D - JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving annuitant. Payouts end with the death of the second annuitant. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 41 - PLAN E - PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that an annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the payout that have been made 7 seven days prior to the date we determine the present value. For qualified annuities, the discount rate we use in the calculation will be either 4.72% or 6.22%, depending on the applicable assumed investment rate. For nonqualified annuities, the discount rate we use in the calculation will vary between 4.92% and 6.42%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take a surrender. (See "Taxes.") ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - in equal or substantially equal payments over a period not longer than your life or over the life of you and your designated beneficiary; or - in equal or substantially equal payments over a period not longer than your life expectancy over the joint life expectancy of you and your designated beneficiary; or - over a period certain not longer than your life expectancy or over the life expectancy of you and your designated beneficiary. IF WE DO NOT RECEIVE INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the annuitant's settlement date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. Contract values that you allocated to the fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you or the annuitant die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay federal income tax until there is a distribution (or deemed distribution) from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. ANNUITY PAYOUTS: Generally, unlike surrenders, the taxation of annuity payouts is subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - because of your death or in the event of nonnatural ownership, the death of the annuitant; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if it is allocable to an investment before Aug. 14, 1982; or - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies and annuity contracts, while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment or annuity contract, (2) the exchange of an endowment contract for an annuity contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract exchanged, (3) the exchange of an annuity contract for another annuity contract. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. For exchanges after 2009, a life insurance policy, annuity or endowment contract or a qualified long-term care insurance contract may be exchanged for a qualified long-term care insurance contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. (If certain life events occur between the date of the partial exchange and the date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 43 ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed to you like a surrender and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for ROTH IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - the payout is a RMD as defined under the Code; - the payout is made on account of an eligible hardship; or - the payout is a corrective distribution. 44 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - because of your death; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); or - to pay certain medical or education expenses (IRAs only). DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: - the reserve held in each subaccount for your contract; divided by - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 45 We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - laws or regulations change; - the existing funds become unavailable; or - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - add new subaccounts; - combine any two or more subaccounts; - transfer assets to and from the subaccounts or the variable account; and - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio -- Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. ("RiverSource Distributors"), our affiliate, serves as the principal underwriter of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. Although we no longer offer the contract for sale, you may continue to make purchase payments if permitted under the terms of your contract. We pay commissions to an affiliated selling firm of up to 1.15% of purchase payments on the contract as well as service/trail commissions of up to 0.25% based on annual total contract value for as long as the contract remains in effect. We also may pay a temporary additional sales commission of up to 1.00% of purchase payments for a period of time we select. These commissions do not change depending on which subaccounts you choose to allocate your purchase payments. From time to time and in accordance with applicable laws and regulations, we may also pay or provide the selling firm with various cash and non-cash promotional incentives including, but not limited to bonuses, short-term sales incentive payments, marketing allowances, costs associated with sales conferences and educational seminars and sales recognition awards. A portion of the payments made to the selling firm may be passed on to its financial advisors in accordance with its internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your financial advisor for further information about what your financial advisor and the selling firm for which he or she works may receive in connection with your contract. We pay the commissions and other compensation described above from our assets. Our assets include: - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- the funds"); 46 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The funds"); and - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part of all of the commissions and other compensation described above indirectly through: - fees and expenses we collect from contract owners, including surrender charges; and - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 47 APPENDICES THE PURPOSE OF THESE APPENDICES IS TO ILLUSTRATE THE OPERATION OF VARIOUS CONTRACT RIDERS AND TO PROVIDE CONDENSED FINANCIAL HISTORY DISCLOSURE REGARDING THE SUBACCOUNTS. IN ORDER TO DEMONSTRATE THESE CONTRACT RIDERS, AN EXAMPLE MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THE EXAMPLES OF THE OPTIONAL DEATH BENEFITS IN APPENDIX A INCLUDE PARTIAL SURRENDERS TO ILLUSTRATE THE EFFECT OF THESE PARTIAL SURRENDERS ON THE PARTICULAR BENEFIT. THESE EXAMPLES ARE INTENDED TO SHOW HOW THE OPTIONAL DEATH BENEFITS OPERATE, AND DO NOT TAKE INTO ACCOUNT WHETHER A PARTICULAR OPTIONAL DEATH BENEFIT IS PART OF A QUALIFIED ANNUITY. QUALIFIED ANNUITIES ARE SUBJECT TO REQUIRED MINIMUM DISTRIBUTIONS AT CERTAIN AGES (SEE "TAXES -- QUALIFIED ANNUITIES -- REQUIRED MINIMUM DISTRIBUTIONS") WHICH MAY REQUIRE YOU TO TAKE PARTIAL SURRENDERS FROM THE CONTRACT. IF YOU ARE CONSIDERING THE ADDITION OF CERTAIN OPTIONAL DEATH BENEFITS TO A QUALIFIED ANNUITY, YOU SHOULD CONSULT YOUR TAX ADVISOR PRIOR TO MAKING A PURCHASE FOR AN EXPLANATION OF THE POTENTIAL TAX IMPLICATION TO YOU. 48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS APPENDIX A: EXAMPLE -- OPTIONAL BENEFITS EXAMPLE -- MAV DEATH BENEFIT - You purchase the contract (with the MAV rider) with a payment of $20,000. - On the first contract anniversary the contract value grows to $24,000. - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: ($1,500 x $24,000) -1,636 -------------------- = $22,000 For a death benefit of: $22,364
EXAMPLE -- EEB DEATH BENEFIT - You purchase the contract with a payment of $100,000 and both you and the annuitant are under age 70. You select the MAV and the EEB. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value, or $105,000. You have not reached the first contract anniversary so the EEB does not provide any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- During the third contract year the contract value remains at $105,000 and you request a partial surrender of $50,000. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - ------------ = $ 57,619 $105,000 plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 -------- Total death benefit of: $ 58,667
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The reduction in contract value has no effect. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 49 - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000
- During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,000. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000
- During the eleventh contract year the contract value remains $250,000 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,000 - $105,000) = +58,000 -------- Total death benefit of: $308,000
EXAMPLE -- EEP DEATH BENEFIT - You purchase the contract with an exchanged purchase payment of $100,000 and both you and the annuitant are under age 70. You select the MAV and the EEP. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit amount, which is the contract value, or $105,000. You have not reached the first contract anniversary so neither the EEP Part I nor Part II provides any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. You have not reached the second contract anniversary so the EEP Part II does not provide any additional benefit at this time. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit amount minus purchase payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEP Part I benefit (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $100,000 = +10,000 -------- Total death benefit of: $124,000
- During the third contract year the contract value remains at $105, 000 and you request a partial surrender of $50,000. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - ------------ = $ 57,619 $105,000
50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS plus the EEP Part I (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $55,000 = +5,500 -------- Total death benefit of: $ 64,167
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $64,167. The reduction in contract value has no effect. - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. Because we are beyond the fourth contract anniversary the EEP also reaches its maximum of 20%. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEP Part I (40% of earnings at death) 0.40 x (2.50 x $55,000) = +55,000 plus the EEP Part II which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $266,000
- During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,000. The new purchase payment is less than one year old and so it has no effect on either the EEP Part I or EEP Part II. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEP Part I (40% of earnings at death) 0.40 x (2.50 x $55,000) = +55,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $316,000
- During the eleventh contract year the contract value remains $250,000 and the "new" purchase payment is one year old. The value of the EEP Part I changes but the value of the EEP Part II remains constant. The death benefit equals: MAV death benefit amount (contract value): $250,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit minus payments not previously surrendered): 0.40 x ($250,000 - $105,000) = +58,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $319,000
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 51 APPENDIX B: CONDENSED FINANCIAL INFORMATION (Unaudited) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each price level is noted in parentheses. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2008.
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.26 $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.72 $1.26 $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 495 371 489 1,554 110 85 4 6 -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.63 $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.86 $1.63 $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 71 208 183 141 107 284 180 3 -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.43 $1.28 $1.11 $1.01 $0.89 $0.65 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.74 $1.43 $1.28 $1.11 $1.01 $0.89 $0.65 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8 12 11 19 18 249 149 1 -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.08 $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.44 $1.08 $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 149 54 158 140 132 66 3 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.14 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.14 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 73 115 1,114 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.58 $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.58 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,794 1,479 105 5 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.86 $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $0.48 $0.86 $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 -- -- Number of accumulation units outstanding at end of period (000 omitted) 351 275 418 532 249 96 3 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 49 61 653 144 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.81 $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 452 1,081 1,374 1,186 726 969 310 136 -- -- ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (08/13/2001) Accumulation unit value at beginning of period $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.24 $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,352 3,600 3,592 2,607 984 472 606 210 -- -- *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.70 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.70 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 -- -- Number of accumulation units outstanding at end of period (000 omitted) 286 389 365 314 127 5 254 1 -- -- ---------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,327 1,710 -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.20 $1.00 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.20 $1.00 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 72 187 2,939 618 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------
52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.51 $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.10 $1.51 $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 483 848 1,060 1,104 1,064 673 483 146 -- -- ---------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 24 21 18 5 54 8 8 6 5 -- ---------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.72 $1.20 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,506 5,466 2,834 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.27 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.65 $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 730 772 2,194 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 506 677 1,600 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,025 2,116 2,567 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.22 $1.13 $1.01 $0.94 $0.86 $0.83 -- -- -- -- Accumulation unit value at end of period $0.81 $1.22 $1.13 $1.01 $0.94 $0.86 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 47 47 56 56 49 90 -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.21 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.21 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,518 7,443 6,582 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.42 $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 $1.00 -- -- Accumulation unit value at end of period $0.82 $1.42 $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 963 1,126 1,624 1,338 994 432 233 132 -- -- ---------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $2.39 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.43 $2.39 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,823 3,786 4,011 2,702 1,034 510 325 132 -- -- ---------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.93 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 $1.00 -- -- Accumulation unit value at end of period $1.08 $1.93 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 -- -- Number of accumulation units outstanding at end of period (000 omitted) 771 890 1,130 728 573 205 324 7 -- -- ---------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 $1.00 Accumulation unit value at end of period $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 262 688 836 667 487 349 205 211 148 4 ---------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 $1.00 Accumulation unit value at end of period $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 465 576 738 593 414 242 282 150 9 2 ---------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.57 $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.98 $1.57 $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 670 761 865 716 533 667 130 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 $1.00 Accumulation unit value at end of period $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 1,060 2,008 2,339 1,930 834 639 450 200 15 8 ----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 53
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,128 1,678 2,499 3,019 1,522 735 694 943 577 170 ---------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 $1.00 -- Accumulation unit value at end of period $0.29 $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 -- Number of accumulation units outstanding at end of period (000 omitted) 22 37 180 200 333 426 343 202 310 -- ---------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,240 5,448 -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) (PREVIOUSLY JANUS ASPEN SERIES INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 $1.00 -- Accumulation unit value at end of period $0.82 $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 -- Number of accumulation units outstanding at end of period (000 omitted) 275 272 231 250 132 295 875 606 556 -- ---------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.40 $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.87 $1.40 $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 277 1,072 1,291 1,238 1,236 2,397 636 253 57 8 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 260 317 481 640 522 874 785 913 533 -- ---------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 92 130 243 558 576 622 485 548 352 -- ---------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $1.41 $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 821 765 1,065 588 211 139 139 138 -- -- ---------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.05 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.57 $1.07 $1.05 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,971 2,116 1,957 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.62 $1.53 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.96 $1.62 $1.53 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 777 1,099 1,309 756 158 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.41 $1.44 $1.26 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.87 $1.41 $1.44 $1.26 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 646 676 773 643 432 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.27 $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.08 $1.27 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,498 9,223 6,331 3,173 403 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,628 4,555 4,105 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- PIONEER EQUITY INCOME VCT PORTFOLIO - CLASS II SHARES* (08/13/2001) Accumulation unit value at beginning of period $1.46 $1.46 $1.20 $1.14 $0.99 $0.81 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.01 $1.46 $1.46 $1.20 $1.14 $0.99 $0.81 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 52 53 81 156 182 283 175 -- -- -- *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ----------------------------------------------------------------------------------------------------------------------------------
54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- PIONEER INTERNATIONAL VALUE VCT PORTFOLIO - CLASS II SHARES* (12/15/2006) Accumulation unit value at beginning of period $1.13 $1.01 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.62 $1.13 $1.01 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2 2 -- -- -- -- -- -- -- -- *Pioneer International Value VCT Portfolio - Class II Shares liquidated on April 24, 2009. ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.11 $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.92 $1.11 $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 111 67 195 218 67 170 145 129 -- -- ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.78 $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.99 $1.78 $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 91 69 164 145 194 207 881 418 -- -- ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.60 $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 221 370 429 374 375 431 525 1,092 1,330 183 ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.70 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 547 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.13 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,641 3,570 3,666 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.37 $1.30 $1.13 $1.13 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.86 $1.37 $1.30 $1.13 $1.13 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 74 115 77 235 182 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) Accumulation unit value at beginning of period $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.24 $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,353 3,487 2,495 2,068 860 982 627 411 -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (09/15/1999) Accumulation unit value at beginning of period $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 $1.00 Accumulation unit value at end of period $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 602 372 459 623 257 221 120 296 145 10 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 $1.00 Accumulation unit value at end of period $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 10,988 11,779 8,286 4,504 2,098 447 3,911 5,658 6,615 2,266 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were 0.35% and 0.36%, respectively. ----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 55
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 8,140 9,540 7,272 3,619 2,145 1,691 762 985 410 47 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND* (09/15/1999) Accumulation unit value at beginning of period $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 $1.00 Accumulation unit value at end of period $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 8,565 9,289 9,434 5,165 3,041 1,239 1,262 281 218 23 *Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 $1.00 Accumulation unit value at end of period $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,397 1,682 2,453 3,121 1,484 172 202 291 266 872 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 2,861 3,115 2,645 1,377 741 714 251 249 4 3 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.06 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.13 $1.06 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,307 2,713 2,959 1,455 5,004 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 713 1,605 1,925 2,397 2,886 4,230 1,480 1,549 1,186 48 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.17 $1.15 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.95 $1.17 $1.15 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,233 2,599 2,358 493 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 -- -- Number of accumulation units outstanding at end of period (000 omitted) 242 268 450 655 523 578 328 38 -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.50 $1.37 $1.20 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.82 $1.50 $1.37 $1.20 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,658 1,406 2,575 115 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 $1.00 -- Accumulation unit value at end of period $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 1,447 1,022 1,170 2,054 1,958 1,381 973 770 285 -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 $1.00 Accumulation unit value at end of period $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,394 817 493 688 870 1,097 1,275 592 1 10 ---------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 $1.00 Accumulation unit value at end of period $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,601 3,768 6,049 6,193 2,153 1,664 1,064 1,285 1,762 401 ---------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.34 $1.35 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.34 $1.35 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67 67 184 92 65 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 113 214 333 514 779 660 393 378 286 28 ----------------------------------------------------------------------------------------------------------------------------------
56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) Accumulation unit value at beginning of period $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 $1.00 -- Accumulation unit value at end of period $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 -- Number of accumulation units outstanding at end of period (000 omitted) 2,437 1,993 2,144 1,491 475 115 277 3 1 -- ---------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 1,080 1,307 1,343 1,252 848 143 488 65 81 133 ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.38 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.34 $1.38 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,700 3,639 4,892 3,642 641 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.62 $1.12 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,961 1,463 1,473 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.21 $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.64 $1.21 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 270 140 1,068 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 $1.00 Accumulation unit value at end of period $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 2,433 2,932 3,471 2,814 1,701 1,136 1,484 769 599 112 ---------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 3,272 3,659 3,852 2,709 1,415 1,250 847 820 990 125 ---------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND (05/01/2001) Accumulation unit value at beginning of period $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.98 $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4 7 31 355 91 66 29 8 -- -- ---------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $1.45 $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 $1.00 -- -- Accumulation unit value at end of period $0.81 $1.45 $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1 5 5 82 84 4 144 1 -- -- ---------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.46 $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $0.87 $1.46 $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 182 331 421 467 408 445 314 136 -- -- ---------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $0.79 $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 258 231 84 35 10 10 6 2 -- -- ----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 57 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts.............. p. 3 Rating Agencies.......................... p. 4 Revenues Received During Calendar Year 2008................................... p. 4 Principal Underwriter.................... p. 5 Independent Registered Public Accounting Firm................................... p. 5 Financial Statements
58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 59 THIS PAGE LEFT BLANK INTENTIONALLY 60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 -- PROSPECTUS 61 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C) 2008-2009 RiverSource Life Insurance Company. All rights reserved. S-6407 K (5/09) PROSPECTUS MAY 1, 2009 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT PLUS(R) VARIABLE ANNUITY INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITIES New RiverSource Retirement Advisor Advantage Plus and RiverSource Retirement Advisor Select Plus contracts are not currently being offered. ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10/RIVERSOURCE ACCOUNT MGA This prospectus contains information that you should know before investing in the RiverSource Retirement Advisor Advantage Plus Variable Annuity (RAVA Advantage Plus), or the RiverSource Retirement Advisor Select Plus Variable Annuity (RAVA Select Plus). The information in this prospectus applies to both contracts unless stated otherwise. Prospectuses are also available for: AIM Variable Insurance Funds Alliance Bernstein Variable Products Series Fund, Inc. American Century Variable Portfolios, Inc. Calvert Variable Series, Inc. Columbia Funds Variable Insurance Trust Credit Suisse Trust Eaton Vance Variable Trust Evergreen Variable Annuity Trust Fidelity(R) Variable Insurance Products - Service Class 2 Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 Goldman Sachs Variable Insurance Trust (VIT) Janus Aspen Series: Service Shares Legg Mason Variable Portfolios I, Inc. MFS(R) Variable Insurance Trust(SM) Neuberger Berman Advisers Management Trust Oppenheimer Variable Account Funds - Service Shares PIMCO Variable Insurance Trust (VIT) Putnam Variable Trust - Class IB Shares RiverSource Variable Series Trust (RVST) The Universal Institutional Funds, Inc. Van Kampen Life Investment Trust Wanger Advisors Trust Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The contracts provide for purchase payment credits which we may reverse under certain circumstances. Expenses may be higher and surrender charges may be higher and longer for contracts with purchase payment credits than for contracts without such credits. The amount of the credit may be more than offset by additional charges associated with the credit. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 1 Variable annuities are insurance products that are complex investment vehicles. Be sure to ask your financial advisor about the contract features, benefits, risks and fees, and whether the contract is appropriate for you, based upon your financial situation and objectives. This prospectus provides a general description of the contracts. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to your annuity account values. The fees and charges may also be different between each annuity. TABLE OF CONTENTS KEY TERMS................................... 3 THE CONTRACT IN BRIEF....................... 6 EXPENSE SUMMARY............................. 8 CONDENSED FINANCIAL INFORMATION (UNAUDITED)............................... 15 FINANCIAL STATEMENTS........................ 15 THE VARIABLE ACCOUNT AND THE FUNDS.......... 15 GUARANTEE PERIOD ACCOUNTS (GPAS)............ 25 THE FIXED ACCOUNT........................... 26 THE SPECIAL DCA ACCOUNT..................... 27 BUYING YOUR CONTRACT........................ 27 CHARGES..................................... 30 VALUING YOUR INVESTMENT..................... 36 MAKING THE MOST OF YOUR CONTRACT............ 38 SURRENDERS.................................. 48 TSA -- SPECIAL PROVISIONS................... 49 CHANGING OWNERSHIP.......................... 49 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT................................... 50 OPTIONAL BENEFITS........................... 51 THE ANNUITY PAYOUT PERIOD................... 65 TAXES....................................... 66 VOTING RIGHTS............................... 70 SUBSTITUTION OF INVESTMENTS................. 70 ABOUT THE SERVICE PROVIDERS................. 70 ADDITIONAL INFORMATION...................... 71 APPENDIX A: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA).......................... 74 APPENDIX B: EXAMPLE -- SURRENDER CHARGES.... 76 APPENDIX C: EXAMPLE -- OPTIONAL BENEFITS.... 80 APPENDIX D: CONDENSED FINANCIAL INFORMATION (UNAUDITED)............................... 85 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION.................... 113
2 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BAND 3 ANNUITIES: RAVA Advantage Plus and RAVA Select Plus contracts that are available for: - current or retired employees of Ameriprise Financial, Inc. or its subsidiaries and their spouses (employees), - current or retired Ameriprise financial advisors and their spouses (advisors), or - individuals investing an initial purchase payment of $1 million or more, with our approval (other individuals). BENEFICIARY: The person you designate to receive benefits in case of your death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB) AND ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. You can elect to purchase either the EEB or the EEP, subject to certain restrictions. FIXED ACCOUNT: An account to which you may allocate purchase payments. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contract owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. GUARANTEE PERIOD: The number of successive 12-month periods that a guaranteed interest rate is credited. GUARANTEE PERIOD ACCOUNTS (GPAS): A nonunitized separate account to which you may allocate purchase payments and purchase payment credits or transfer contract value of at least $1,000. These accounts have guaranteed interest rates for guarantee periods we declare when you allocate purchase payments and purchase payment credits or transfer contract value to a GPA. These guaranteed rates and periods of time may vary by state. Unless an exception applies, transfers or surrenders from a GPA done more than 30 days before the end of the guarantee period will receive a Market Value Adjustment, which may result in a gain or loss of principal. GUARANTEED MINIMUM ACCUMULATION BENEFIT RIDER (ACCUMULATION BENEFIT): This is an optional benefit that you can add to your contract for an additional charge. It is intended to provide you with a guaranteed contract value at the end of a specified waiting period regardless of the volatility inherent in the investments in the subaccounts. This rider requires participation in the Portfolio Navigator Asset Allocation Program. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 3 GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER (WITHDRAWAL BENEFIT): This is an optional benefit you can add to your contract for an additional charge. It is intended to provide a guaranteed withdrawal benefit that gives you the right to make limited partial withdrawals each contract year. This rider requires participation in one of the asset allocation programs. For purposes of this rider, the term "withdrawal" is equal to the term "surrender" in your contract and any other riders. MARKET VALUE ADJUSTMENT (MVA): A positive or negative adjustment assessed if any portion of a Guarantee Period Account is surrendered or transferred more than 30 days before the end of its guarantee period. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) AND MAXIMUM FIVE-YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide additional death benefit protection in the event of fluctuating fund values. You can elect to purchase either the MAV or the 5-Year MAV, subject to certain restrictions. OWNER (YOU, YOUR): A natural person or persons (including a revocable trust) who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. If the contract has a nonnatural person as the owner, "you, your" means the annuitant. PORTFOLIO NAVIGATOR (PN) ASSET ALLOCATION PROGRAM: This is an asset allocation program in which you are required to participate if you select the optional Accumulation Benefit rider or the optional Withdrawal Benefit rider. If you do not select the Accumulation Benefit rider or the Withdrawal Benefit rider, you may elect to participate in the PN program by adding the optional PN program rider for an additional charge. PURCHASE PAYMENT CREDITS: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - Individual Retirement Annuities (IRAs) under Section 408(b) of the Code - Roth IRAs under Section 408A of the Code - SIMPLE IRAs under Section 408(p) of the Code - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code - Plans under Section 401(k) of the Code - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax-deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP): This is an optional benefit that you can add to your contract for an additional charge if you are age 76 or older at contract issue that is intended to provide additional death benefit protection in the event of fluctuating fund values. ROPP is included in the standard death benefit for contract owners age 75 and under on the contract effective date at no additional cost. RIDER: You receive a rider to your contract when you purchase the EEB, EEP, MAV, 5-Year MAV, ROPP, Accumulation Benefit, Withdrawal Benefit and/or PN. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) ACCOUNT: An account to which you may allocate new purchase payments of at least $10,000. Amounts you allocate to this account earn interest at rates that we declare periodically and will transfer into your specified subaccount allocations in six monthly transfers. The Special DCA account may not be available at all times. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other 4 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Consists of separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 5 THE CONTRACT IN BRIEF This prospectus describes two contracts. RAVA Advantage Plus offers a choice of a seven-year or a ten-year surrender charge schedule and relatively lower expenses. RAVA Select Plus offers a three-year surrender charge schedule and relatively higher expenses. The information in this prospectus applies to both contracts unless stated otherwise. PURPOSE: The purpose of each contract is to allow you to accumulate money for retirement or similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the GPAs, fixed account, subaccounts and/or Special DCA account (when available) under the contract. These accounts, in turn, may earn returns that increase the value of the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payouts of your contract value (less any applicable premium tax). TAX-DEFERRED RETIREMENT PLANS: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions (RMDs). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the potential tax implications to you. FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract. You will receive a full refund of the contract value (reflecting any applicable MVA), less the amount of any purchase payment credits. (See "Valuing Your Investment -- Purchase payment credits.") We will not deduct any other charges. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (EXCEPTION: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among any or all of: - the subaccounts of the variable accounts, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "The Variable Account and the Funds") - the GPAs which earn interest at rates declared when you make an allocation to that account. The required minimum investment in each GPA is $1,000. These accounts may not be available in all states. (see "Guarantee Period Accounts (GPAs)") - the fixed account, which earns interest at a rate that we adjust periodically. Purchase payment allocations to the fixed account may be subject to special restrictions. (see "The Fixed Account") - the Special DCA account, when available. (see "The Fixed Account -- The Special DCA Fixed Account") BUYING YOUR CONTRACT: We no longer offer new contracts. However, you have the option of making additional purchase payments in the future. (see "Buying Your Contract") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the subaccounts until annuity payouts begin, and once per contract year after annuity payouts begin. Transfers out of the GPAs done more than 30 days before the end of the Guarantee Period will be subject to an MVA, unless an exception applies. You may establish automated transfers among the accounts. You may not transfer existing amounts to the Special DCA account. GPAs and fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (see "Surrenders") BENEFITS IN CASE OF DEATH: If you die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: These contracts offer optional features that are available for additional charges if you meet certain criteria. Optional benefits may require the use of an asset allocation model which may limit transfers and allocations; may limit the 6 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS timing, amount and allocation of purchase payments; and may limit the amount of partial surrenders that can be taken under the optional benefit during a contract year. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (See "The Annuity Payout Period") TAXES: Generally, income earned on your contract value grows tax-deferred until you surrender it or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. However, Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. (See "Taxes") RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 7 EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU PAID AT THE TIME THAT YOU BOUGHT THE CONTRACT OR SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE FOR RAVA ADVANTAGE PLUS (Contingent deferred sales load as a percentage of purchase payment surrendered) You select either a seven-year or ten-year surrender charge schedule at the time of application.*
SEVEN-YEAR SCHEDULE NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE 0 7% 1 7 2 7 3 6 4 5 5 4 6 2 7+ 0 SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED YEARS FROM DATE OF EACH YEARS FROM DATE OF EACH PURCHASE PAYMENT PURCHASE PAYMENT 0 0 1 1 2 2 3 3 4 4 5 5 6 6 7+ 7 8 9 10+ SEVEN-YEAR SCHEDULE NUMBER OF COMPLETED TEN-YEAR SCHEDULE* YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE 0 8% 1 8 2 8 3 7 4 7 5 6 6 5 7+ 4 3 2 0
* The ten-year surrender charge schedule is not available for contracts issued in Oregon. In Connecticut and Utah, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama, Massachusetts, Oregon and Washington, surrender charges are waived after the tenth contract anniversary. SURRENDER CHARGE FOR RAVA SELECT PLUS (EXCEPT TEXAS) (Contingent deferred sales load as a percentage of purchase payment surrendered)
YEARS FROM CONTRACT DATE SURRENDER CHARGE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE FOR RAVA SELECT PLUS IN TEXAS (Contingent deferred sales load)
SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 1 1 8% 2 3 Thereafter SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 2 1 7% 2 8 3 Thereafter SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 3 1 6% 2 7 3 8 Thereafter SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR THEREAFTER 1 0% 2 0 3 0 Thereafter 0
SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.") 8 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE MAXIMUM: $50* CURRENT: $30
(We will waive $30 of this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. OPTIONAL RIDER FEES (As a percentage of contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) ROPP RIDER FEE MAXIMUM: 0.30% CURRENT: 0.20% MAV RIDER FEE MAXIMUM: 0.35% CURRENT: 0.25% 5-YEAR MAV RIDER FEE MAXIMUM: 0.20% CURRENT: 0.10% EEB RIDER FEE MAXIMUM: 0.40% CURRENT: 0.30% EEP RIDER FEE MAXIMUM: 0.50% CURRENT: 0.40% PN RIDER FEE MAXIMUM: 0.20% CURRENT: 0.10% ACCUMULATION BENEFIT RIDER FEE MAXIMUM: 2.50% CURRENT: 0.60% WITHDRAWAL BENEFIT RIDER FEE MAXIMUM: 2.50% CURRENT: 0.60%
ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value)
MORTALITY AND EXPENSE RISK FEE: RAVA ADVANTAGE PLUS RAVA SELECT PLUS FOR NONQUALIFIED ANNUITIES 0.95% 1.20% FOR QUALIFIED ANNUITIES 0.75% 1.00% FOR BAND 3 ANNUITIES 0.55% 0.75%
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 9 ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2008, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.55% 4.35%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Account and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE PLUS AND RAVA SELECT PLUS* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AIM V.I. Capital Appreciation Fund, Series II Shares 0.61% 0.25% 0.30% 0.01% 1.17% AIM V.I. Capital Development Fund, Series II Shares 0.75 0.25 0.36 0.01 1.37(1) AIM V.I. Financial Services Fund, Series I Shares 0.75 -- 0.48 0.01 1.24(2) AIM V.I. Global Health Care Fund, Series II Shares 0.75 0.25 0.38 0.01 1.39(1) AIM V.I. International Growth Fund, Series II Shares 0.71 0.25 0.35 0.02 1.33(1) AIM V.I. Technology Fund, Series I Shares 0.75 -- 0.41 0.01 1.17(2) AllianceBernstein VPS Global Technology Portfolio (Class B) 0.75 0.25 0.18 -- 1.18 AllianceBernstein VPS Growth and Income Portfolio (Class B) 0.55 0.25 0.07 -- 0.87 AllianceBernstein VPS International Value Portfolio (Class 0.74 0.25 0.07 -- 1.06 B) American Century VP International, Class II 1.24 0.25 0.01 -- 1.50 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class II 0.84 0.25 0.01 -- 1.10 Calvert Variable Series, Inc. Social Balanced Portfolio 0.70 -- 0.22 -- 0.92 Columbia High Yield Fund, Variable Series, Class B 0.78 0.25 0.11 -- 1.14 Columbia Marsico Growth Fund, Variable Series, Class A 0.92 -- 0.04 -- 0.96 Columbia Marsico International Opportunities Fund, Variable 1.02 0.25 0.12 -- 1.39 Series, Class B Credit Suisse Trust - Commodity Return Strategy Portfolio 0.50 0.25 0.31 -- 1.06(3) Eaton Vance VT Floating-Rate Income Fund 0.58 0.25 0.37 -- 1.20 Evergreen VA International Equity Fund - Class 2 0.42 0.25 0.25 -- 0.92 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 2 0.56 0.25 0.10 -- 0.91 Fidelity(R) VIP Growth & Income Portfolio Service Class 2 0.46 0.25 0.13 -- 0.84 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 0.56 0.25 0.12 -- 0.93 Fidelity(R) VIP Overseas Portfolio Service Class 2 0.71 0.25 0.16 -- 1.12 FTVIPT Franklin Global Real Estate Securities Fund - Class 0.80 0.25 0.30 -- 1.35(4) 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 0.52 0.25 0.16 0.01 0.94(5) FTVIPT Mutual Shares Securities Fund - Class 2 0.60 0.25 0.13 -- 0.98 Goldman Sachs VIT Mid Cap Value Fund - Institutional Shares 0.80 -- 0.04 -- 0.84 Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(6) Fund - Institutional Shares
10 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE PLUS AND RAVA SELECT PLUS* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Janus Aspen Series Janus Portfolio: Service Shares 0.64% 0.25% 0.02% 0.01% 0.92% (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) Legg Mason Partners Variable Small Cap Growth Portfolio, 0.75 -- 0.19 -- 0.94 Class I MFS(R) Investors Growth Stock Series - Service Class 0.75 0.25 0.10 -- 1.10 MFS(R) New Discovery Series - Service Class 0.90 0.25 0.11 -- 1.26 MFS(R) Utilities Series - Service Class 0.72 0.25 0.09 -- 1.06 Neuberger Berman Advisers Management Trust International 1.13 0.25 0.21 -- 1.59(7) Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service Shares 0.63 0.25 0.02 -- 0.90 Oppenheimer Main Street Small Cap Fund/VA, Service Shares 0.70 0.25 0.04 -- 0.99 Oppenheimer Strategic Bond Fund/VA, Service Shares 0.55 0.25 0.04 0.01 0.85(8) PIMCO VIT All Asset Portfolio, Advisor Share Class 0.43 0.25 -- 0.76 1.44(9) Putnam VT Global Health Care Fund - Class IB Shares 0.70 0.25 0.16 0.01 1.12 (previously Putnam VT Health Sciences Fund - Class IB Shares) Putnam VT International Equity Fund - Class IB Shares 0.75 0.25 0.12 0.01 1.13 Putnam VT Vista Fund - Class IB Shares 0.65 0.25 0.15 0.01 1.06 RVST Disciplined Asset Allocation Portfolios - Aggressive -- 0.25 0.89 0.69 1.83(10) RVST Disciplined Asset Allocation Portfolios - Conservative -- 0.25 0.61 0.66 1.52(10) RVST Disciplined Asset Allocation Portfolios - Moderate -- 0.25 0.30 0.68 1.23(10) RVST Disciplined Asset Allocation Portfolios - Moderately -- 0.25 0.36 0.68 1.29(10) Aggressive RVST Disciplined Asset Allocation Portfolios - Moderately -- 0.25 0.50 0.67 1.42(10) Conservative RVST RiverSource Partners Variable Portfolio - Fundamental 0.77 0.13 0.16 -- 1.06(11) Value Fund RVST RiverSource Partners Variable Portfolio - Select Value 0.89 0.13 3.33 -- 4.35(11) Fund RVST RiverSource Partners Variable Portfolio - Small Cap 0.95 0.13 0.19 0.05 1.32(11) Value Fund RVST RiverSource Variable Portfolio - Balanced Fund 0.42 0.13 0.16 -- 0.71 RVST RiverSource Variable Portfolio - Cash Management Fund 0.32 0.13 0.17 -- 0.62 RVST RiverSource Variable Portfolio - Diversified Bond Fund 0.44 0.13 0.15 -- 0.72 RVST RiverSource Variable Portfolio - Diversified Equity 0.59 0.13 0.14 -- 0.86 Income Fund RVST RiverSource Variable Portfolio - Dynamic Equity Fund 0.44 0.13 0.15 0.02 0.74 (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) RVST RiverSource Variable Portfolio - Global Bond Fund 0.66 0.13 0.18 -- 0.97(11) RVST RiverSource Variable Portfolio - Global Inflation 0.44 0.13 0.17 -- 0.74(11) Protected Securities Fund RVST RiverSource Variable Portfolio - High Yield Bond Fund 0.59 0.13 0.17 -- 0.89 RVST RiverSource Variable Portfolio - Income Opportunities 0.61 0.13 0.18 -- 0.92 Fund RVST RiverSource Variable Portfolio - Mid Cap Growth Fund 0.58 0.13 0.17 -- 0.88(11) RVST RiverSource Variable Portfolio - Mid Cap Value Fund 0.73 0.13 0.18 -- 1.04 RVST RiverSource Variable Portfolio - S&P 500 Index Fund 0.22 0.13 0.19 0.01 0.55(11) RVST RiverSource Variable Portfolio - Short Duration U.S. 0.48 0.13 0.18 -- 0.79 Government Fund RVST Seligman Variable Portfolio - Growth Fund 0.45 0.13 0.17 0.04 0.79 (previously RVST RiverSource Variable Portfolio - Growth Fund) RVST Seligman Variable Portfolio - Larger-Cap Value Fund 0.48 0.13 0.67 -- 1.28(11) (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) RVST Seligman Variable Portfolio - Smaller-Cap Value Fund 0.62 0.13 0.31 -- 1.06(11) (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) RVST Threadneedle Variable Portfolio - Emerging Markets 1.15 0.13 0.33 -- 1.61 Fund RVST Threadneedle Variable Portfolio - International 0.82 0.13 0.20 -- 1.15 Opportunity Fund Van Kampen Life Investment Trust Comstock Portfolio, Class 0.56 0.25 0.04 -- 0.85 II Shares Van Kampen UIF Global Real Estate Portfolio, Class II 0.85 0.35 0.37 -- 1.57(12) Shares Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares 0.75 0.35 0.31 -- 1.41(12) Wanger International 0.84 -- 0.18 -- 1.02
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 11 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA ADVANTAGE PLUS AND RAVA SELECT PLUS* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Wanger USA 0.85% --% 0.11% --% 0.96% Wells Fargo Advantage VT Opportunity Fund 0.73 0.25 0.20 0.04 1.22(13) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 -- 1.26(13)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.45% of average daily net assets. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.36% for AIM V.I. Capital Development Fund, Series II Shares, 1.38% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (2) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series I shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.30%. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.23% for AIM V.I. Financial Services Fund, Series I Shares and 1.16% for AIM V.I. Technology Fund, Series I Shares. (3) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95%. (4) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.03%. (5) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent of the Fund's fees and expenses of the acquired fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.93%. (6) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. After expense reductions, net expenses would be 0.71%. (7) Neuberger Berman Management Inc. ("NBM") has undertaken through Dec. 31, 2012, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.53%. (8) The other expenses in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2008, the transfer agent fees did not exceed this expense limitation. In addition, for Oppenheimer Strategic Bond Fund/VA, Service Shares, the Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82%. (9) PIMCO has contractually agreed through Dec. 31, 2009, to reduce its advisory fee to the extent that the acquired fund fees and expenses attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.42%. (10) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. (11) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.99% for RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund, 1.14% for RVST RiverSource Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund, 0.96% for RVST RiverSource Variable Portfolio - Global Bond Fund, 0.74% for RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund, 1.00% for RVST RiverSource Variable Portfolio - Mid Cap Growth Fund, 0.53% for RVST RiverSource Variable Portfolio - S&P 500 Index Fund, 1.04% for RVST Seligman Variable Portfolio - Larger-Cap Value Fund and 1.12% for RVST Seligman Variable Portfolio - Smaller-Cap Value Fund. (12) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursements, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.15% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. The Adviser reserves the right to terminate any waivers and/or reimbursements at any time and without notice. (13) The adviser has contractually agreed through April 30, 2010 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After this time, the net operating expense ratio may be increased only with approval of the Board of Trustees. After fee waivers and expense reimbursements, net expenses would be 1.07% for Wells Fargo Advantage VT Opportunity Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. 12 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THESE CONTRACTS WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES(1), VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expenses of any of the funds. They assume that you select the optional MAV, EEP and Withdrawal Benefit or Accumulation Benefit(2). Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS With a ten-year surrender charge schedule(3) $1,680 $3,340 $4,777 $7,637 $880 $2,540 $4,077 $7,437 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 1,580 3,240 4,577 7,437 880 2,540 4,077 7,437 RAVA SELECT PLUS 1,608 3,313 4,183 7,580 908 2,613 4,183 7,580 RAVA SELECT PLUS - TEXAS 1,708 3,213 4,183 7,580 908 2,613 4,183 7,580
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS With a ten-year surrender charge schedule(3) $1,659 $3,286 $4,698 $7,529 $859 $2,486 $3,998 $7,329 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 1,559 3,186 4,498 7,329 859 2,486 3,998 7,329 RAVA SELECT PLUS 1,587 3,259 4,105 7,475 887 2,559 4,105 7,475 RAVA SELECT PLUS - TEXAS 1,687 3,159 4,105 7,475 887 2,559 4,105 7,475
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: BAND 3 ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS - BAND 3 With a ten-year surrender charge schedule(3) $1,639 $3,232 $4,619 $7,418 $839 $2,432 $3,919 $7,218 RAVA ADVANTAGE PLUS - BAND 3 With a seven-year surrender charge schedule 1,539 3,132 4,419 7,218 839 2,432 3,919 7,218 RAVA SELECT PLUS - BAND 3 1,561 3,192 4,007 7,340 861 2,492 4,007 7,340 RAVA SELECT PLUS - TEXAS - B- AND 3 1,661 3,092 4,007 7,340 861 2,492 4,007 7,340
MINIMUM EXPENSES. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN NONQUALIFIED AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS With a ten-year surrender charge schedule(3) $957 $1,288 $1,541 $2,037 $157 $488 $841 $1,837 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 857 1,188 1,341 1,837 157 488 841 1,837 RAVA SELECT PLUS 885 1,272 985 2,135 185 572 985 2,135 RAVA SELECT PLUS - TEXAS 985 1,172 985 2,135 185 572 985 2,135
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 13
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS With a ten-year surrender charge schedule(3) $937 $1,225 $1,435 $1,813 $137 $425 $735 $1,613 RAVA ADVANTAGE PLUS With a seven-year surrender charge schedule 837 1,125 1,235 1,613 137 425 735 1,613 RAVA SELECT PLUS 864 1,210 879 1,916 164 510 879 1,916 RAVA SELECT PLUS - TEXAS 964 1,110 879 1,916 164 510 879 1,916
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: BAND 3 ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA ADVANTAGE PLUS - BAND 3 With a ten-year surrender charge schedule(3) $916 $1,162 $1,327 $1,584 $116 $362 $627 $1,384 RAVA ADVANTAGE PLUS - BAND 3 With a seven-year surrender charge schedule 816 1,062 1,127 1,384 116 362 627 1,384 RAVA SELECT PLUS - BAND 3 839 1,132 746 1,637 139 432 746 1,637 RAVA SELECT PLUS - TEXAS - B- AND 3 939 1,032 746 1,637 139 432 746 1,637
(1) In these examples, the contract administrative charge is approximated as a .033% charge for RAVA Advantage Plus, a .054% charge for RAVA Select Plus, a .054% for RAVA Select Plus - Texas, a .033% charge for RAVA Advantage Plus - Band 3, a .054% charge for RAVA Select Plus - Band 3 and a .054% charge for RAVA Select Plus - Texas - Band 3. These percentages were determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to each contract by the total average net assets that are attributable to that contract. (2) Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for each optional rider is reflected rather than the fee that is currently being charged. (3) In Connecticut and Utah, your expenses would be slightly lower due to the modified ten-year surrender charge schedule. 14 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS CONDENSED FINANCIAL INFORMATION (Unaudited) You can find unaudited condensed financial information for the subaccounts in Appendix D. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the subaccounts with financial history in the SAI. The SAI does not include audited financial statements for subaccounts that are new and have no activity as of the financial statement date. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contracts currently offer subaccounts investing in shares of the funds listed in the table below. - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 15 various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including expense payments and non-cash compensation. The amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates. RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in 2008. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. 16 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 17 UNLESS AN ASSET ALLOCATION PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
------------------------------------------------------------------------------------------------ INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ------------------------------------------------------------------------------------------------ AIM V.I. Capital Seeks growth of capital. Invesco Aim Advisors, Appreciation Fund, Series Inc. adviser, advisory II Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ------------------------------------------------------------------------------------------------ AIM V.I. Capital Seeks long-term growth of capital. Invesco Aim Advisors, Development Fund, Series Inc. adviser, advisory II Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ------------------------------------------------------------------------------------------------ AIM V.I. Financial Seeks capital growth. Invesco Aim Advisors, Services Fund, Series I Inc. adviser, advisory Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ------------------------------------------------------------------------------------------------ AIM V.I. Global Health Seeks capital growth. Invesco Aim Advisors, Care Fund, Series II Inc. adviser, advisory Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ------------------------------------------------------------------------------------------------
18 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
------------------------------------------------------------------------------------------------ INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ------------------------------------------------------------------------------------------------ AIM V.I. International Seeks long-term growth of capital. Invesco Aim Advisors, Growth Fund, Series II Inc. adviser, advisory Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ------------------------------------------------------------------------------------------------ AIM V.I. Technology Fund, Seeks capital growth. Invesco Aim Advisors, Series I Shares Inc. adviser, advisory entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ------------------------------------------------------------------------------------------------ AllianceBernstein VPS Seeks long-term growth of capital. AllianceBernstein L.P. Global Technology Portfolio (Class B) ------------------------------------------------------------------------------------------------ AllianceBernstein VPS Seeks long-term growth of capital. AllianceBernstein L.P. Growth and Income Portfolio (Class B) ------------------------------------------------------------------------------------------------ AllianceBernstein VPS Seeks long-term growth of capital. AllianceBernstein L.P. International Value Portfolio (Class B) ------------------------------------------------------------------------------------------------ American Century VP Seeks capital growth. American Century Global International, Class II Investment Management, Inc. ------------------------------------------------------------------------------------------------ American Century VP Mid Seeks long-term capital growth. Income is a American Century Cap Value, Class II secondary objective. Investment Management, Inc. ------------------------------------------------------------------------------------------------ American Century VP Seeks long-term capital growth. American Century Ultra(R), Class II Investment Management, Inc. ------------------------------------------------------------------------------------------------ American Century VP Seeks long-term capital growth. Income is a American Century Value, Class II secondary objective. Investment Management, Inc. ------------------------------------------------------------------------------------------------ Calvert Variable Series, Seeks competitive total return through Calvert Asset Management Inc. Social Balanced actively managed portfolio of stocks, bonds Company, Inc., adviser. Portfolio and money market instruments which offer New Amsterdam Partners, income and capital growth opportunity and LLP, subadviser on which satisfy Portfolio's investment and equity portion; no social criteria. subadviser on fixed- income portion. ------------------------------------------------------------------------------------------------ Columbia High Yield Fund, Seeks total return, consisting of a high Columbia Management Variable Series, Class B level of income and capital appreciation. Advisors, LLC, advisor; MacKay Shields LLC, subadviser. ------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 19
------------------------------------------------------------------------------------------------ INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ------------------------------------------------------------------------------------------------ Columbia Marsico Growth Seeks long-term growth of capital. Columbia Management Fund, Variable Series, Advisors, LLC, adviser; Class A Marsico Capital Management, LLC, sub- adviser. ------------------------------------------------------------------------------------------------ Columbia Marsico Seeks long-term growth of capital. Columbia Management International Advisors, LLC, adviser; Opportunities Fund, Marsico Capital Variable Series, Class B Management, LLC, sub- adviser. ------------------------------------------------------------------------------------------------ Credit Suisse Seeks total return. Credit Suisse Asset Trust - Commodity Return Management, LLC Strategy Portfolio ------------------------------------------------------------------------------------------------ Eaton Vance VT Floating- Seeks high level of current income. Eaton Vance Management Rate Income Fund ------------------------------------------------------------------------------------------------ Evergreen VA Seeks long-term capital growth and Evergreen Investment International Equity secondarily, modest income. Management Company, LLC Fund - Class 2 ------------------------------------------------------------------------------------------------ Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Portfolio Normally invests primarily in common Research Company (FMR), Service Class 2 stocks. Invests in securities of companies investment manager; FMR whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. ------------------------------------------------------------------------------------------------ Fidelity(R) VIP Growth & Seeks high total return through a FMR, investment manager; Income Portfolio Service combination of current income and capital FMR U.K., FMR Far East, Class 2 appreciation. Normally invests a majority sub-advisers. of assets in common stocks with a focus on those that pay current dividends and show potential for capital appreciation. Invests in domestic and foreign issuers. The Fund invests in either "growth" stocks or "value" stocks or both. ------------------------------------------------------------------------------------------------ Fidelity(R) VIP Mid Cap Seeks long-term growth of capital. Normally FMR, investment manager; Portfolio Service Class 2 invests primarily in common stocks. FMR U.K., FMR Far East, Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. ------------------------------------------------------------------------------------------------ Fidelity(R) VIP Overseas Seeks long-term growth of capital. Normally FMR, investment manager; Portfolio Service Class 2 invests primarily in common stocks FMR U.K., FMR Far East, allocating investments across different Fidelity International countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities. (FIIA) and FIIA U.K., sub-advisers. ------------------------------------------------------------------------------------------------ FTVIPT Franklin Global Seeks high total return. Franklin Templeton Real Estate Securities Institutional, LLC Fund - Class 2 ------------------------------------------------------------------------------------------------ FTVIPT Franklin Small Cap Seeks long-term total return. Franklin Advisory Value Securities Services, LLC Fund - Class 2 ------------------------------------------------------------------------------------------------ FTVIPT Mutual Shares Seeks capital appreciation, with income as Franklin Mutual Securities Fund - Class 2 a secondary goal. Advisers, LLC ------------------------------------------------------------------------------------------------ Goldman Sachs VIT Mid Cap Seeks long-term capital appreciation. Goldman Sachs Asset Value Management, L.P. Fund - Institutional Shares ------------------------------------------------------------------------------------------------
20 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
------------------------------------------------------------------------------------------------ INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ------------------------------------------------------------------------------------------------ Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. Equity dividend income. Management, L.P. Fund - Institutional Shares ------------------------------------------------------------------------------------------------ Janus Aspen Series Janus Seeks long-term growth of capital in a Janus Capital Management Portfolio: Service Shares manner consistent with the preservation of LLC (previously Janus Aspen capital. Series Large Cap Growth Portfolio: Service Shares) ------------------------------------------------------------------------------------------------ Legg Mason Partners Seeks long-term growth of capital. Legg Mason Partners Fund Variable Small Cap Growth Advisor, LLC, adviser; Portfolio, Class I ClearBridge Advisors, LLC, sub-adviser. ------------------------------------------------------------------------------------------------ MFS(R) Investors Growth Seeks capital appreciation. MFS Investment Stock Series - Service Management(R) Class ------------------------------------------------------------------------------------------------ MFS(R) New Discovery Seeks capital appreciation. MFS Investment Series - Service Class Management(R) ------------------------------------------------------------------------------------------------ MFS(R) Utilities Seeks total return. MFS Investment Series - Service Class Management(R) ------------------------------------------------------------------------------------------------ Neuberger Berman Advisers Seeks long-term growth of capital by Neuberger Berman Management Trust investing primarily in common stocks of Management Inc. International Portfolio foreign companies. (Class S) ------------------------------------------------------------------------------------------------ Oppenheimer Global Seeks long-term capital appreciation. OppenheimerFunds, Inc. Securities Fund/VA, Service Shares ------------------------------------------------------------------------------------------------ Oppenheimer Main Street Seeks capital appreciation. OppenheimerFunds, Inc. Small Cap Fund/VA, Service Shares ------------------------------------------------------------------------------------------------ Oppenheimer Strategic Seeks high level of current income OppenheimerFunds, Inc. Bond Fund/VA, Service principally derived from interest on debt Shares securities. ------------------------------------------------------------------------------------------------ PIMCO VIT All Asset Seeks maximum real return consistent with Pacific Investment Portfolio, Advisor Share preservation of real capital and prudent Management Company LLC Class investment management period. ------------------------------------------------------------------------------------------------ Putnam VT Global Health Seeks capital appreciation. Putnam Investment Care Fund - Class IB Management, LLC Shares (previously Putnam VT Health Sciences Fund - Class IB Shares) ------------------------------------------------------------------------------------------------ Putnam VT International Seeks capital appreciation. Putnam Investment Equity Fund - Class IB Management, LLC Shares ------------------------------------------------------------------------------------------------ Putnam VT Vista Seeks capital appreciation. Putnam Investment Fund - Class IB Shares Management, LLC ------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 21
------------------------------------------------------------------------------------------------ INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ------------------------------------------------------------------------------------------------ RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with an aggressive level of LLC Portfolios - Aggressive risk. This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ------------------------------------------------------------------------------------------------ RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a conservative level of LLC Portfolios - Conservative risk. This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ------------------------------------------------------------------------------------------------ RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a moderate level of risk. LLC Portfolios - Moderate This is a "fund of funds" and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ------------------------------------------------------------------------------------------------ RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a moderate aggressive level LLC Portfolios - Moderately of risk. This is a "fund of funds" and Aggressive seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ------------------------------------------------------------------------------------------------ RVST Disciplined Asset Seeks high level of total return that is RiverSource Investments, Allocation consistent with a moderate conservative LLC Portfolios - Moderately level of risk. This is a "fund of funds" Conservative and seeks to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ------------------------------------------------------------------------------------------------ RVST RiverSource Partners Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Davis Portfolio - Fundamental Selected Advisers, L.P., Value Fund subadviser. ------------------------------------------------------------------------------------------------ RVST RiverSource Partners Seeks long-term growth of capital. RiverSource Investments, Variable LLC, adviser; Systematic Portfolio - Select Value Financial Management, Fund L.P. and WEDGE Capital Management L.L.P., sub- advisers. ------------------------------------------------------------------------------------------------
22 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
------------------------------------------------------------------------------------------------ INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ------------------------------------------------------------------------------------------------ RVST RiverSource Partners Seeks long-term capital appreciation. RiverSource Investments, Variable LLC, adviser; Barrow, Portfolio - Small Cap Hanley, Mewhinney & Value Fund Strauss, Inc., Denver Investment Advisors LLC, Donald Smith & Co., Inc., River Road Asset Management, LLC and Turner Investment Partners, Inc., subadvisers. ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks maximum total investment return RiverSource Investments, Portfolio - Balanced Fund through a combination of capital growth and LLC current income. ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks maximum current income consistent RiverSource Investments, Portfolio - Cash with liquidity and stability of principal. LLC Management Fund ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks high level of current income while RiverSource Investments, Portfolio - Diversified attempting to conserve the value of the LLC Bond Fund investment for the longest period of time. ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks high level of current income and, as RiverSource Investments, Portfolio - Diversified a secondary goal, steady growth of capital. LLC Equity Income Fund ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks capital appreciation. RiverSource Investments, Portfolio - Dynamic LLC Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Non-diversified fund that seeks high total RiverSource Investments, Portfolio - Global Bond return through income and growth of LLC Fund capital. ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Non-diversified fund that seeks total RiverSource Investments, Portfolio - Global return that exceeds the rate of inflation LLC Inflation Protected over the long-term. Securities Fund ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks high current income, with capital RiverSource Investments, Portfolio - High Yield growth as a secondary objective. LLC Bond Fund ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks high total return through current RiverSource Investments, Portfolio - Income income and capital appreciation. LLC Opportunities Fund ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks growth of capital. RiverSource Investments, Portfolio - Mid Cap LLC Growth Fund ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks long-term growth of capital. RiverSource Investments, Portfolio - Mid Cap Value LLC Fund ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks long-term capital appreciation. RiverSource Investments, Portfolio - S&P 500 Index LLC Fund ------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 23
------------------------------------------------------------------------------------------------ INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ------------------------------------------------------------------------------------------------ RVST RiverSource Variable Seeks high level of current income and RiverSource Investments, Portfolio - Short safety of principal consistent with LLC Duration U.S. Government investment in U.S. government and Fund government agency securities. ------------------------------------------------------------------------------------------------ RVST Seligman Variable Seeks long-term capital growth. RiverSource Investments, Portfolio - Growth Fund LLC (previously RVST RiverSource Variable Portfolio - Growth Fund) ------------------------------------------------------------------------------------------------ RVST Seligman Variable Seeks long-term growth of capital. RiverSource Investments, Portfolio - Larger-Cap LLC Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) ------------------------------------------------------------------------------------------------ RVST Seligman Variable Seeks long-term capital growth. RiverSource Investments, Portfolio - Smaller-Cap LLC, adviser; Kenwood Value Fund (previously Capital Management LLC, RVST RiverSource Variable sub-adviser. Portfolio - Small Cap Advantage Fund) ------------------------------------------------------------------------------------------------ RVST Threadneedle Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Portfolio - Emerging Threadneedle Markets Fund International Limited, an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ------------------------------------------------------------------------------------------------ RVST Threadneedle Seeks capital appreciation. RiverSource Investments, Variable LLC, adviser; Portfolio - International Threadneedle Opportunity Fund International Limited, an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ------------------------------------------------------------------------------------------------ Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust Comstock investments in equity securities, including Management Portfolio, Class II common stocks, preferred stocks and Shares securities convertible into common and preferred stocks. ------------------------------------------------------------------------------------------------ Van Kampen UIF Global Seeks current income and capital Morgan Stanley Real Estate Portfolio, appreciation. Investment Management Class II Shares Inc., doing business as Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. ------------------------------------------------------------------------------------------------ Van Kampen UIF Mid Cap Seeks long-term capital growth. Morgan Stanley Growth Portfolio, Class Investment Management II Shares Inc., doing business as Van Kampen. ------------------------------------------------------------------------------------------------ Wanger International Seeks long-term growth of capital. Columbia Wanger Asset Management, L.P. ------------------------------------------------------------------------------------------------ Wanger USA Seeks long-term capital appreciation. Columbia Wanger Asset Management, L.P. ------------------------------------------------------------------------------------------------ Wells Fargo Advantage VT Seeks long-term total return, consisting of Wells Fargo Funds Opportunity Fund capital appreciation and current income. Management, LLC, adviser; Wells Capital Management Incorporated, sub-adviser. ------------------------------------------------------------------------------------------------
24 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
------------------------------------------------------------------------------------------------ INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ------------------------------------------------------------------------------------------------ Wells Fargo Advantage VT Seeks long-term total return, consisting of Wells Fargo Funds Small Cap Growth Fund capital appreciation and current income. Management, LLC, adviser; Wells Capital Management Incorporated, sub-adviser. ------------------------------------------------------------------------------------------------
GUARANTEE PERIOD ACCOUNTS (GPAS) The GPAs may not be available for contracts in some states. Currently, unless an asset allocation program is in effect, you may allocate purchase payments and purchase payment credits to one or more of the GPAs with guarantee periods declared by us. The required minimum investment in each GPA is $1,000. (Exception: if a model portfolio includes one or more GPAs, the required minimum does not apply.) These accounts are not offered after annuity payouts begin. Each GPA pays an interest rate that is declared when you make an allocation to that account. That interest rate is then fixed for the guarantee period that you chose. We will periodically change the declared interest rate for any future allocations to these accounts, but we will not change the rate paid on money currently in a GPA. The GPA interests under the contracts are registered with the SEC. The SEC staff reviews the disclosures in this prospectus on the GPA interests. The interest rates that we will declare as guaranteed rates in the future are determined by us at our discretion (future rates). We will determine future rates based on various factors including, but not limited to, the interest rate environment, returns earned on investments in the nonannuitized separate account we have established for the GPAs, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition and RiverSource Life's revenues and other expenses. Interest rates offered may vary by state, but will not be lower than state law allows. WE CANNOT PREDICT NOR CAN WE GUARANTEE WHAT FUTURE RATES WILL BE. We hold amounts you allocate to the GPAs in a "nonannuitized" separate account. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the GPAs. State insurance law prohibits us from charging this separate account with liabilities of any other separate account or of our general business. We own the assets of this separate account as well as any favorable investment performance of those assets. You do not participate in the performance of the assets held in this separate account. We guarantee all benefits relating to your value in the GPAs. This guarantee is based on the continued claims-paying ability of the company's general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We intend to construct and manage the investment portfolio relating to the separate account in such a way as to minimize the impact of fluctuations in interest rates. We achieve this by constructing a portfolio of assets with a price sensitivity to interest rate changes (i.e., price duration) that is similar to the price duration of the corresponding portfolio of liabilities. We must invest this portfolio of assets in accordance with requirements established by applicable state laws regarding the nature and quality of investments that life insurance companies may make and the percentage of their assets that they may commit to any particular type of investment. Our investment strategy will incorporate the use of a variety of debt instruments having price durations tending to match the applicable guarantee periods. These instruments include, but are not necessarily limited to, the following: - Securities issued by the U.S. government or its agencies or instrumentalities, which issues may or may not be guaranteed by the U.S. government; - Debt securities that have an investment grade, at the time of purchase, within the four highest grades assigned by any of three nationally recognized rating agencies -- Standard & Poor's, Moody's Investors Service or Fitch -- or are rated in the two highest grades by the National Association of Insurance Commissioners; - Debt instruments that are unrated, but which are deemed by RiverSource Life to have an investment quality within the four highest grades; - Other debt instruments which are unrated or rated below investment grade, limited to 15% of assets at the time of purchase; and - Real estate mortgages, limited to 30% of portfolio assets at the time of acquisition. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 25 In addition, options and futures contracts on fixed income securities will be used from time to time to achieve and maintain appropriate investment and liquidity characteristics on the overall asset portfolio. While this information generally describes our investment strategy, we are not obligated to follow any particular strategy except as may be required by federal law and Minnesota and other state insurance laws. MARKET VALUE ADJUSTMENT (MVA) We will not apply an MVA to contract value you transfer or surrender out of the GPAs within 30 days before the end of the guarantee period. During this 30 day window you may choose to start a new guarantee period of the same length, transfer the contract value to a GPA of another length, transfer the contract value to any of the subaccounts or the fixed account, or surrender the contract value (subject to applicable surrender provisions). If we do not receive any instructions at the end of your guarantee period, our current practice is to automatically transfer the contract value to the one year GPA. Any new GPA, whether it is one you choose or an automatic transfer to a one year GPA, will be subject to an MVA as described below. We guarantee the contract value allocated to the GPAs, including interest credited, if you do not make any transfers or surrenders from the GPAs prior to 30 days before the end of the guarantee period (30-day rule). At all other times, and unless one of the exceptions to the 30-day rule described below applies, we will apply an MVA if you surrender or transfer contract value from a GPA including withdrawals under the Withdrawal Benefit rider, or you elect an annuity payout plan while you have contract value invested in a GPA. We will refer to these transactions as "early surrenders." The application of an MVA may result in either a gain or loss of principal. The 30-day rule does not apply and no MVA will apply to: - death benefits; - amounts surrendered for fees and charges; - amounts surrendered under contract provisions that waive surrender charges for Hospital or Nursing Home Confinement and Terminal Illness Disability Diagnosis; - amounts surrendered from the GPA within 30 days prior to the end of the Guarantee Period; - automatic rebalancing under any asset allocation model portfolio which includes one or more GPAs. However, an MVA will apply if you reallocate to a new asset allocation model portfolio; and - amounts applied to an annuity payout plan while an asset allocation model including one or more GPAs in in effect. When you request an early surrender, we adjust the early surrender amount by an MVA formula. The early surrender amount reflects the relationship between the guaranteed interest rate you are earning in your current GPA and the interest rate we are crediting on new GPAs that end at the same time as your current GPA. The MVA is sensitive to changes in current interest rates. The magnitude of any applicable MVA will depend on our current schedule of guaranteed interest rates at the time of the surrender, the time remaining in your guarantee period and your guaranteed interest rate. The MVA is negative, zero or positive depending on how the guaranteed interest rate on your GPA compares to the interest rate of a new GPA for the same number of years as the guarantee period remaining on your GPA. This is summarized in the following table:
IF YOUR GPA RATE IS: THE MVA IS: Less than the new GPA rate + 0.10% Negative Equal to the new GPA rate + 0.10% Zero Greater than the new GPA rate + 0.10% Positive
For an example, see Appendix A. THE FIXED ACCOUNT Unless an asset allocation program is in effect, you also may allocate purchase payments and purchase payment credits or transfer contract value to the fixed account. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of the company's general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. The value of the fixed account increases as we credit interest to the account. Purchase payments and transfers to the fixed account become part of our general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the fixed account is guaranteed for one year. Thereafter, we will change the rates from time to time at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates 26 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS currently in effect for new and existing RiverSource Life annuities, product design, competition, and RiverSource Life's revenues and expenses. Subject to state law limitations, we reserve the right to limit purchase payment allocations to the fixed account if the interest rate we are then currently crediting to the fixed account is equal to the minimum interest rate stated in the contract. Interests in the fixed account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract -- Transfer policies" for restrictions on transfers involving the fixed account.) THE SPECIAL DCA ACCOUNT You also may allocate purchase payments and purchase payment credits to the Special DCA account, when available. The Special DCA account is available for promotional purposes for new purchase payments only and may not be available at all times.* We back the principal and interest guarantees relating to the Special DCA account. These guarantees are based on the continued claims-paying ability of the company. The value of the Special DCA account increases as we credit interest to the account. Purchase payments to the Special DCA account become part of our general account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment is guaranteed for the period of time money remains in the Special DCA account. The rates credited to the Special DCA account will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and RiverSource Life's revenues and expenses. Interests in the Special DCA account are not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the Special DCA account. Disclosures regarding the Special DCA account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (See "Making the Most of Your Contract -- Special Dollar Cost Averaging Program" for more information on the Special DCA account.) * For contracts purchased in Oregon the Special DCA account is available at all times. BUYING YOUR CONTRACT New contracts are not currently being offered. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can buy a contract if you and the annuitant are 90 or younger. The contract provides for allocation of purchase payments and purchase payment credits to the subaccounts of the variable account, to the GPAs, to the fixed account and/or to the Special DCA account (when available) in even 1% increments subject to the $1,000 required minimum investment for the GPAs. There may be certain restrictions on the amount you may allocate to the fixed account. (See "Purchase Payments.") We will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. When we process your application, we will establish the settlement date as the maximum age (or contract anniversary, if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities. You can also select a date within the maximum limits. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - no earlier than the 60th day after the contract's effective date; and RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 27 - no later than the annuitant's 85th birthday or the tenth contract anniversary, if purchased after age 75, or a date that has been otherwise agreed to by us. FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - for IRAs, by April 1 of the year following the calendar year when you reach age 70 1/2; or - for all other qualified annuities, by April 1 of the year following the calendar year when you reach age 70 1/2, or, if later, retire (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 85th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs or TSAs, and in that case, may delay the annuity payout start date for these contracts. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit to your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their complete claim. A beneficiary will bear the investment risk if the variable account until we receive the beneficiary's complete claim. If there is no named beneficiary, then the default provisions of your contract apply. (See "Benefits in Case of Death" for more about beneficiaries.) PURCHASE PAYMENTS* MINIMUM ALLOWABLE PURCHASE PAYMENTS** If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month
RAVA ADVANTAGE PLUS RAVA SELECT PLUS If paying by any other method: initial payment for qualified annuities $1,000 $ 2,000 initial payment for nonqualified annuities 2,000 10,000 for any additional payments 50 50
* RAVA ADVANTAGE PLUS AND RAVA SELECT PLUS BAND 3 ANNUITIES SOLD TO INDIVIDUALS OTHER THAN ADVISORS AND EMPLOYEES: Require a minimum $1,000,000 initial purchase payment and corporate office approval. Contracts already approved may make payments in subsequent years up to $100,000 if your age on the effective date of the contract is age 85 or younger and $50,000 if your age on the effective date of the contract is age 86 to 90. ** Installments must total at least $600 in the first year. If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in Illinois and New Jersey. MAXIMUM ALLOWABLE PURCHASE PAYMENTS*** (without corporate office approval) based on your age on the effective date of the contract:
RAVA ADVANTAGE PLUS RAVA SELECT PLUS For the first year: through age 85 $999,999 $999,999 for ages 86 to 90 100,000 100,000 For each subsequent year: through age 85 100,000 100,000 for ages 86 to 90 50,000 50,000
***These limits apply in total to all RiverSource Life annuities you own. We reserve the right to increase maximum limits. For qualified annuities the tax-deferred retirement plan's or the Code's limits on annual contributions also apply. Effective Jan. 26, 2009, no additional purchase payments are allowed for contracts with the Withdrawal Benefit rider or Enhanced Withdrawal Benefit rider, subject to state restrictions. For contracts issued in all states except those listed below, certain exceptions apply and the following additional purchase payments will be allowed on/after Jan. 26, 2009: a. Tax Free Exchanges, rollovers, and transfers listed on the annuity application and received within 180 days from the contract issue date. 28 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS b. Current tax year contributions for TSAs up to the annual limit set by the IRS. c. Prior and current tax year contributions up to a cumulative annual maximum of $6,000(1) for any Qualified Accounts except TSAs. This maximum applies to IRAs, Roth IRAs, SIMPLE IRAs, and SEP plans. (1) The maximum amount is subject to change in later years and is based on the limit set by the IRS for individual IRAs (including the catch-up provision). For Contracts Issued in Florida, New Jersey, and Oregon: For contracts with the Withdrawal Benefit rider and Enhanced Withdrawal Benefit rider issued in Florida, New Jersey, and Oregon, additional purchase payments to your variable annuity contract will be limited to $100,000 for the life of your contract. The limit does not apply to Tax Free Exchanges, rollovers and transfers listed on the annuity application and received within 180 days for the contract issue date. We reserve the right to change these current rules at any time, subject to state restrictions. Purchase payment amounts and purchase payment timing may vary by state and may be limited under the terms of your contract. Subject to state regulatory requirements, we reserve the right to not accept purchase payments allocated to the fixed account for twelve months following either: 1. a partial surrender from the fixed account; or 2. a lump sum transfer from the fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 2 BY SCHEDULED PAYMENT PLAN We can help you set up: - an automatic payroll deduction, salary reduction or other group billing arrangement; or - a bank authorization. PURCHASE PAYMENT CREDITS FOR RAVA ADVANTAGE PLUS: we add a credit to your contract in the amount of: - 1% of each purchase payment received: - if you elect the ten-year surrender charge schedule for your contract* and the initial purchase payment is under $100,000; or - if you elect the seven-year surrender charge schedule for your contract and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. - 2% of each purchase payment received if you elect the ten-year surrender charge schedule for your contract* and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. FOR RAVA ADVANTAGE PLUS - BAND 3: we add a credit to your contract in the amount of: - 2% of each purchase payment received: - if you elect the seven-year surrender charge schedule for your contract. - 3% of each purchase payment received: - if you elect the ten-year surrender charge schedule for your contract*. Surrender charges under RAVA Advantage Plus and RAVA Advantage Plus - Band 3 may be higher and longer than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, there could be circumstances where you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full surrender in years five through ten. We pay for the credits under RAVA Advantage Plus and RAVA Advantage Plus - Band 3 primarily through revenue from a higher and longer surrender charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 29 FOR RAVA SELECT PLUS: we add a credit to your contract in the amount of 1% of each purchase payment received in the first contract year if your initial purchase payment to the contract is at least $250,000 but less than $1,000,000. FOR RAVA SELECT PLUS - BAND 3: we add a credit to your contract in the amount of 2% of each purchase payment received in the first contract year. Expenses under RAVA Select Plus and RAVA Select Plus - Band 3 may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. We pay for the credits under RAVA Select Plus and RAVA Select Plus - Band 3 primarily through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. We fund all credits from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief -- Free look period.") We will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit, surrender payment, or settlement under an annuity payout plan includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a lump sum death benefit under this contract; (2) a request for surrender charge waiver due to Nursing Home Confinement or Terminal Illness Disability Diagnosis; or (3) your settlement of the contract under an annuity payout plan.* We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. * The ten-year surrender charge under RAVA Advantage Plus and RAVA Advantage Plus - Band 3 is not available in Oregon. Contracts purchased in Oregon are only eligible for a 1% purchase payment credit if the initial purchase payment is at least $100,000. For contracts purchased in Oregon, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit includes purchase payment credits applied within twelve months preceding the date of death that results in a lump sum death benefit under this contract only. LIMITATIONS ON USE OF CONTRACTS If mandated by applicable law, including but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values and satisfy other statutory obligations. Under these circumstances, we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or court of competent jurisdiction. CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. Currently, we deduct $30 from your contract value on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. The contract administrative charge is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. We reserve the right to increase this charge after the first contract anniversary to a maximum of $50.* We will waive $30 of this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the full charge at the time of surrender regardless of the contract value or purchase payments made. This charge does not apply after annuity payouts begin or when we pay death benefits. * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. 30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee, which is a percentage of their average daily net assets, on an annual basis as follows:
RAVA ADVANTAGE PLUS RAVA SELECT PLUS For nonqualified annuities 0.95% 1.20% For qualified annuities 0.75% 1.00% For Band 3 annuities 0.55% 0.75%
This fee covers the mortality and expense risk that we assume. This fee does not apply to the GPAs, the fixed account or the Special DCA account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge more than $20.00 per contract and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge, discussed in the following paragraphs, will cover sales and distribution expenses. SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. For RAVA Advantage Plus, a surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven or ten years before surrender. You select the surrender charge period at the time of your application for the contract. For RAVA Select Plus, a surrender charge applies if you surrender all or part of your purchase payments in the first three contract years. The surrender charge percentages that apply to you are shown in your contract. You may surrender an amount during any contract year without a surrender charge. We call this amount the Total Free Amount (TFA). The TFA varies depending on whether your contract includes the Withdrawal Benefit rider: CONTRACTS WITHOUT WITHDRAWAL BENEFIT RIDER The TFA is the greater of: - 10% of the contract value on the prior contract anniversary*; or - current contract earnings. CONTRACTS WITH WITHDRAWAL BENEFIT RIDER The TFA is the greatest of: - 10% of the contract value on the prior contract anniversary*; - current contract earnings; or - the Remaining Benefit Payment. * We consider your purchase payment and any purchase payment credit applied on the first day payments are received to be the prior contract anniversary's contract value during the first contract year. NOTE: We determine current contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, GPA, the fixed account or the Special DCA account. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 31 Amounts surrendered in excess of the TFA may be subject to a surrender charge as described below. SURRENDER CHARGE UNDER RAVA ADVANTAGE PLUS: For purposes of calculating any surrender charge under RAVA Advantage Plus, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 3. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED SURRENDER CHARGE YEARS FROM DATE OF EACH SURRENDER CHARGE YEARS FROM DATE OF EACH PERCENTAGE PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
* The ten-year surrender charge schedule under RAVA Advantage Plus is not available in Oregon. In Connecticut and Utah, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama, Massachusetts, Oregon and Washington, we waive surrender charges after the tenth contract anniversary. SURRENDER CHARGE UNDER RAVA SELECT PLUS (EXCEPT TEXAS): For purposes of calculating any surrender charge under RAVA Select Plus, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We do assess a surrender charge on these payments during the first three contract years as follows:
CONTRACT YEAR SURRENDER CHARGE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE UNDER RAVA SELECT PLUS IN TEXAS: For purposes of calculating any surrender charge under RAVA Select Plus in Texas, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 2. Next, if necessary, we surrender purchase payments. We surrender amounts from the oldest purchase payments first. We do assess a surrender charge on these payments during the first three contract years as follows:
SURRENDER CHARGE PERCENTAGE (AS A PERCENTAGE OF PURCHASE PAYMENTS SURRENDERED) IN CONTRACT YEAR PAYMENTS MADE IN CONTRACT YEAR 1 2 3 THEREAFTER 1 8% 7% 6% 0% 2 8 7 0 3 8 0 Thereafter 0
PARTIAL SURRENDERS: For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge, plus or minus any applicable MVA. For an example, see Appendix B. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. WAIVER OF SURRENDER CHARGES We do not assess surrender charges for: - surrenders of any contract earnings; - surrenders of amounts totaling up to 10% of the contract value on the prior contract anniversary to the extent it exceeds contract earnings; - if you elected the Withdrawal Benefit rider, your contract's Remaining Benefit Payment to the extent it exceeds the greater of contract earnings or 10% of the contract value on the prior contract anniversary; - amounts surrendered after the tenth contract anniversary in Alabama, Massachusetts, Washington and Oregon; - required minimum distributions from a qualified annuity provided the amount is no greater than the RMD amount calculated under your specific contract, currently in force; - contracts settled using an annuity payout plan*, unless an Annuity Payout Plan E is later surrendered; - amounts we refund to you during the free look period*; - death benefits*; - surrenders you make under your contract's "Waiver of Surrender Charges for Hospital or Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 on the date that we issue the contract. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender. You must provide proof satisfactory to us that, as of the date you request the surrender, you are or your spouse is confined to a nursing home or hospital and have been for 60 straight days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.); and - surrenders you make under your contract's "Waiver of Surrender Charges for Terminal Illness Disability Diagnosis" provision.* To the extent permitted by state law, this provision applies when you are under age 76 on the date we issue the contract. Under this provision, we will waive surrender charges that we normally assess for surrenders you make if you are diagnosed after the contract date as disabled with a medical condition that with reasonable medical certainty will result in death within 12 months or less from the date of a licensed physician's statement. You must provide us with a licensed physician's statement containing the terminal illness diagnosis and the date the terminal illness was initially diagnosed. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Buying your contract -- Purchase payment credits.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate certain charges such as the contract administrative and surrender charges. However, we expect this to occur infrequently. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 33 ACCUMULATION BENEFIT RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.60% of the greater of your contract value or the minimum contract accumulation value on your contract anniversary. We prorate this fee among the subaccounts and the fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the Special DCA account. Such fee is only deducted from any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. Once you elect the Accumulation Benefit rider, you may not cancel it and the fee will continue to be deducted through the end of the waiting period or when annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. Currently, the Accumulation Benefit rider charge does not vary with the model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider fee for each model portfolio. The Accumulation Benefit rider fee will not exceed a maximum charge of 2.50%. We will not change the Accumulation Benefit rider charge after the rider effective date unless: (a) you choose the annual Elective Step up after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you change your model portfolio after we have exercised our rights to increase the rider charge; (d) you change your model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you elect to change your model portfolio after we have exercised our right to increase the fee we charge for this rider, or after we have exercised our right to establish fees for this rider which vary by model portfolio, the increase in fees we charge for this rider will become effective on the contract anniversary following your change of model portfolio. Any model portfolio changes on the contract anniversary will have the new charge effective on that contract anniversary. Also, in the event you change your model portfolio twice in the same contract year (see "Asset Allocation Program" and "Portfolio Navigator Asset Allocation Program"), the fee we charge for this rider will be the greatest fee applicable to any model portfolio which you have selected during the contract year. If you choose the Elective Step up, the elective spousal continuation Step up, or change your model portfolio after we have exercised our rights to increase the rider charge as described above, you will pay the charge that is in effect on the valuation date we receive your written request to step up or change your model portfolio. For Elective Step Ups and the elective spousal continuation Step ups, this change will be in effect for the entire contract year. The fee does not apply after annuity payouts begin. (1) Available if you are 80 or younger at the rider effective date. You must select a model portfolio with this rider (see "Portfolio Navigator Asset Allocation Program"). Not available with Withdrawal Benefit. WITHDRAWAL BENEFIT RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.60% of your contract value on your contract anniversary. We prorate this fee among the subaccounts and the fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the GPAs and in the Special DCA account. Such fee is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. (1) Available if you are 80 or younger at the rider effective date and age 60 to 80 if the contract is a TSA. You must select a model portfolio with this rider (see "Asset Allocation Program" and "Portfolio Navigator Asset Allocation Program"). Once you elect the Withdrawal Benefit, you may not cancel it and the fee will continue to be deducted until the contract is terminated or annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the Withdrawal Benefit fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. If the Remaining Benefit Amount (RBA) goes to zero but the contract value has not been depleted, you will continue to be charged. We reserve the right to change the fee for this rider up to a maximum of 2.50%. However, any change to the rider fee will only apply to existing contract owners if: (a) you choose the annual Elective Step up after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you change your model portfolio after we have exercised our rights to increase the rider charge; (d) you change your model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. 34 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS We reserve the right to charge a fee that varies by the model portfolio selected. If you elect the spousal continuation step up or to change your model portfolio after we have exercised our right to increase the fee we charge for this rider, or after we have exercised our right to establish fees for this rider which vary by model portfolio, the increase in fees we charge for this rider will become effective on the contract anniversary following your change. Any changes on the contract anniversary will have the new charge effective on that contract anniversary. Also, in the event you make more than one change in the same contract year, the fee we charge for this rider will be the greatest fee applicable to any change which you have selected during the contract year. If you choose an annual Elective Step up, you will pay the fee we then charge. If you choose an Elective Step up on the first contract anniversary, any increase in fees we charge for this rider for the Step up will not become effective until the third contract year. In the event of more than one change in model portfolio and/or an Elective Step up occurring in the same contract year, the fees we charge for this rider will be the highest fee applicable to any of these changes. ROPP RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.20% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such fee is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.30%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 76 or older at the rider effective date. ROPP is included in the standard death benefit if you are age 75 or younger on the contract effective date at no additional cost. MAV RIDER FEE We charge a fee for this optional feature only if you select it.(2) If selected, we deduct an annual fee of 0.25% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such fee is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.35%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (2) Available if you are 75 or younger at the rider effective date. Not available with 5-Year MAV. 5-YEAR MAV RIDER FEE We charge a fee for this optional feature only if you select it.(3) If selected, we deduct an annual fee of 0.10% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such fee is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (3) Available if you are 75 or younger at the rider effective date. Not available with MAV. EEB RIDER FEE We charge a fee for this optional feature only if you select it.(4) If selected, we deduct an annual fee of 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such fee is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.40%. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 35 If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (4) Available if you are 75 or younger at the rider effective date. Not available with EEP. May not be available in all states. EEP RIDER FEE We charge a fee for this optional feature only if you select it.(5) If selected, we deduct an annual fee of 0.40% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA account. Such fee is only deducted from GPAs and any Special DCA account if insufficient amounts are available in the fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.50%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (5) Available if you are 75 or younger at the rider effective date. Not available with EEB. May not be available in all states. EEP is only available on contracts purchased through a direct transfer or exchange of another annuity or a life insurance policy. RIDER COMBINATION DISCOUNT A fee discount of 0.05% applies if you purchase 5-Year MAV with either EEB or EEP. A fee discount of 0.10% applies if you purchase MAV with either EEB or EEP. PN RIDER FEE We charge a fee for this optional feature only if you select it.(6) This fee covers our internal administrative costs for providing this service. A portion of this fee is paid to an unaffiliated third party service provider for the design and maintenance of the program (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"). If selected, we deduct an annual fee of 0.10% of your contract value less any excluded accounts on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and the fixed account less any excluded accounts in the same proportion your interest in each account bears to your total contract value, less any excluded accounts (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"). Such fee is only deducted from GPAs if insufficient amounts are available in the fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If we allow you to add the rider other than on a contract anniversary, we reserve the right to adjust the rider fee for the number of calendar days coverage was in place. If the rider terminates for any reason other than on a contract anniversary, we reserve the right to deduct this fee at that time and adjust it for the number of calendar days coverage was in place. If you choose to drop this rider on an anniversary, we will deduct this fee on that anniversary. This fee does not apply after annuity payouts begin. (6) We do not charge this fee and you may not discontinue your participation if you are required to participate in the PN program because you purchased an optional Accumulation Benefit or Withdrawal Benefit rider. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectuses for those funds. (see "Annual Operating Expenses of the Funds"). PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. VALUING YOUR INVESTMENT We value your accounts as follows: GPA We value the amounts you allocate to the GPA directly in dollars. The GPA value equals: - the sum of your purchase payments and purchase payment credits allocated to the GPA; - plus any amounts transferred to the GPA from the fixed account or subaccounts; - plus interest credited; - minus any amounts transferred from the GPA to the fixed account or any subaccount; - minus any amounts deducted for charges or surrenders; 36 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - plus or minus any applicable MVA; and/or - minus any remaining portion of fees where the values of the fixed account and the subaccounts are insufficient to cover those fees. FIXED ACCOUNT We value the amounts you allocate to the fixed account directly in dollars. The fixed account value equals: - the sum of your purchase payments and purchase payment credits and transfer amounts allocated to the fixed account; - plus interest credited; - minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out; - minus any prorated portion of the contract administrative charge; - minus any prorated portion of the ROPP rider fee (if selected); - minus any prorated portion of the MAV rider fee (if selected); - minus any prorated portion of the 5-Year MAV rider fee (if selected); - minus any prorated portion of the EEB rider fee (if selected); - minus any prorated portion of the EEP rider fee (if selected); - minus any prorated portion of the Accumulation Benefit rider fee (if selected)*; - minus any prorated portion of the Withdrawal Benefit rider fee (if selected)*; and - minus any prorated portion of the PN rider fee (if selected)*. * The fee can only be deducted from the subaccounts in Washington. SPECIAL DCA ACCOUNT We value the amounts you allocate to the Special DCA account directly in dollars. The Special DCA account value equals: - the sum of your purchase payments and purchase payment credits allocated to the Special DCA account; - plus interest credited; - minus the sum of amounts surrendered (including any applicable surrender charges); - minus amounts transferred out; and - minus any remaining portion of fees where the values of the fixed account and the subaccounts are insufficient to cover those fees. SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payment credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge, a surrender charge or fee for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - dividing that sum by the previous adjusted net asset value per share; and - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 37 - additional purchase payments you allocate to the subaccounts; - any purchase payment credits allocated to the subaccounts; - transfers into or out of the subaccounts; - partial surrenders; - surrender charges; and a deduction of: - a prorated portion of the contract administrative charge; - a prorated portion of the ROPP rider fee (if selected); - a prorated portion of the MAV rider fee (if selected); - a prorated portion of the 5-Year MAV rider fee (if selected); - a prorated portion of the EEB rider fee (if selected); - a prorated portion of the EEP rider fee (if selected); - a prorated portion of the Accumulation Benefit rider fee (if selected); - a prorated portion of the Withdrawal Benefit rider fee (if selected); and/or - a prorated portion of the PN rider fee (if selected). Accumulation unit values will fluctuate due to: - changes in fund net asset value; - fund dividends distributed to the subaccounts; - fund capital gains or losses; - fund operating expenses; and/or - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). Automated transfers from the fixed account to the subaccounts under automated dollar-cost averaging may not exceed an amount that, if continued, would deplete the fixed account within 12 months. For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the fixed account to one or more subaccounts. You may not set up an automated transfer to or from the GPAs. You may not set up an automated transfer to the fixed account or the Special DCA account. You may not set up an automated transfer if the Withdrawal Benefit, Accumulation Benefit or PN is selected. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. The potential effect is to lower your average cost per unit. HOW DOLLAR-COST AVERAGING WORKS
NUMBER By investing an equal number of dollars AMOUNT ACCUMULATION OF UNITS each month ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy Mar 100 17 5.88 more units when the (ARROW) Apr 100 15 6.67 per unit market price is low ... May 100 16 6.25 June 100 18 5.56 July 100 17 5.88 and fewer units Aug 100 19 5.26 when the per unit (ARROW) Sept 100 21 4.76 market price is high. Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. 38 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features contact your financial advisor. SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) PROGRAM If your purchase payment is at least $10,000, you can choose to participate in the Special DCA program (if available). There is no charge for the Special DCA program. Under the Special DCA program, you can allocate a new purchase payment and any applicable purchase payment credit to a six-month Special DCA account according to the following rules: - You may only allocate a new purchase payment of at least $10,000 to a Special DCA account. - You cannot transfer existing contract values into a Special DCA account. - Each Special DCA arrangement consists of six monthly transfers that begin seven days after we receive your purchase payment. - We make monthly transfers of your Special DCA account value into the subaccounts you select. - You may not use the fixed account, GPA account or the Special DCA account as a destination for the Special DCA monthly transfer. (Exception: if an asset allocation program is in effect, and the model portfolio you have selected includes the fixed account, amounts will be transferred from the Special DCA account to the fixed account according to the allocation percentage established for the model portfolio you have selected.) - We will change the interest rate on each Special DCA account from time to time at our discretion based on factors that include the competition and the interest rate we are crediting to the fixed account at the time of the change. From time to time, we may credit interest to the Special DCA account at promotional rates that are higher than those we credit to the regular fixed account. - We credit each Special DCA account with the current guaranteed annual rate that is in effect on the date we receive your purchase payment. However, we credit this annual rate over the length of the Special DCA arrangement on the balance remaining in your Special DCA account. Therefore, the net effective interest rate you receive is less than the stated annual rate. - We do not credit this interest after we transfer the value out of the Special DCA account into the accounts you selected. - Once you establish a Special DCA account, you cannot allocate additional purchase payments to it. However, you may establish another new Special DCA account (if available on the valuation date we receive your payment) and allocate new purchase payments to it. - Funding from multiple sources are treated as individual purchase payments and a new Special DCA account is opened for each payment (if the Special DCA accounts are available on the valuation date we receive your payment). - You may terminate your participation in the Special DCA program at any time. If you do, we will transfer the remaining balance from your Special DCA account to the fixed account. Interest will be credited according to the rates in effect on the fixed account and not the rate that was in effect on the Special DCA account. (Exception: if an asset allocation program is in effect when you elect to end your participation in the Special DCA program, and the asset allocation program does not end at the same time, we will transfer the remaining balance to the model portfolio which is in effect). - We can modify the terms or discontinue the Special DCA program at any time. Any modifications will not affect any purchase payments that are already in a Special DCA account. For more information on the Special DCA program, contact your financial advisor. The Special DCA program does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semi-annually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be more than one digit past the decimal numbers. Asset rebalancing does not apply to the GPAs, fixed account or the Special DCA account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 39 method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. Different rules apply to asset rebalancing under an asset allocation program (see "Asset Allocation Program" and "Portfolio Navigator Asset Allocation Program" below). ASSET ALLOCATION PROGRAM If you purchased an optional Withdrawal Benefit rider, you are required to participate in our asset allocation program under the terms of the rider. The asset allocation program is only available if you purchased the optional Withdrawal Benefit rider. There is no additional charge for the asset allocation program. This asset allocation program allows you to allocate your contract value to a model portfolio that consists of subaccounts and may include the fixed account and certain GPAs, (if available under the asset allocation program) which represent various asset classes. By spreading your contract value among these various asset classes, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will occur. Asset allocation does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. You are responsible for determining which model portfolio is best for you. Your sales representative can help you make this determination. In addition, your financial advisor may provide you with a questionnaire, a tool that can help you determine which model portfolio is suited to your needs based on factors such as your investment goals, your tolerance for risk, and how long you intend to invest. Currently, there are five model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. You are allowed to request a change to another model portfolio twice per contract year. Each model portfolio specifies allocation percentages to each of the subaccounts, the fixed account and/or any GPAs that make up that model portfolio. By participating in the program, you authorize us to invest your contract value in the subaccounts, the fixed account and/or any GPAs (if included) according to the allocation percentages stated for the specific model portfolio you have selected. You also authorize us to automatically rebalance your contract value quarterly in order to maintain alignment with the allocation percentages specified in the model portfolio. Special rules will apply to the GPAs if they are included in a model portfolio. Under these rules: - no MVA will apply when rebalancing occurs within a specific model portfolio (but an MVA will apply if you elect to transfer to a new model portfolio); - no MVA will apply if you reallocate your contract value according to an updated model portfolio; and - no MVA will apply when you elect an annuity payout plan while your contract value is invested in a model portfolio (see "Guarantee Period Accounts -- Market Value Adjustment"). If you initially allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA account, when available, (see "The Special DCA Account") and you are participating in the asset allocation program, we will make monthly transfers from the Special DCA account into the model portfolio you have chosen. You may not discontinue your participation in the asset allocation program; however, you have the right at all times to make a full surrender of your contract value (see "Surrenders"). Because the Withdrawal Benefit rider requires that your contract value be invested in one of the model portfolios for the life of the contract, and you cannot terminate the Withdrawal Benefit rider once you have selected it, you must terminate your contract by requesting a full surrender if you no longer wish to participate in any of the model portfolios. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE WITHDRAWAL BENEFIT RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN ONE OF THE MODEL PORTFOLIOS FOR THE LIFE OF THE CONTRACT. Under the asset allocation program, the subaccounts, the fixed account and/or any GPAs (if included) that make up the model portfolio you selected and the allocation percentages to those subaccounts, the fixed account and/or any GPAs (if included) will not change unless we adjust the composition of the model portfolio to reflect the liquidation, substitution or merger of an underlying fund, a change of investment objective by an underlying fund or when an underlying fund stops selling its shares to the variable account. We reserve the right to change the terms and conditions of the asset allocation program upon written notice to you. If permitted under applicable securities law, we reserve the right to: - reallocate your current model portfolio to an updated version of your current model portfolio; or - substitute a fund of funds for your current model portfolio. We also reserve the right to discontinue the asset allocation program. We will give you 30 days' written notice of any such change. 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM The Portfolio Navigator Asset Allocation Program (PN program) described in this section replaces the previously offered asset allocation program described above for owners of all contracts purchased on or after Nov. 1, 2005 and for contract owners who choose to move from the previously offered asset allocation program to the PN program or who add the PN program on or after Nov. 1, 2005. The PN program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include the fixed account and certain GPAs (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You are required to participate in the PN program if your contract includes an optional Accumulation Benefit rider or Withdrawal Benefit rider. If your contract does not include one of these riders, you also may participate in the PN program by purchasing a separate optional rider for an additional charge. You should review any PN program information, including the terms of the PN program, carefully. Your financial advisor can provide you with additional information and can answer questions you may have on the PN program. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, LLC, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investments' role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflict of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. POTENTIAL CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 41 As an affiliate of RiverSource Investments, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Series Trust funds. In this role, RiverSource Investments may, from time to time, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include, but not be limited to, a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds.") Therefore, we may have an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from the fixed account or certain GPAs than from other allocation options. We therefore may have an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. PARTICIPATING IN THE PN PROGRAM. If you choose to participate in the PN program, you are responsible for determining which model portfolio is best for you. Your sales representative can help you make this determination. In addition, your sales representative may provide you with a questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the questionnaire can help you determine which model portfolio most closely matches your investing style. While the scoring of the questionnaire is objective, there is no guarantee that your responses to the questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the asset mix reflected in the model portfolio you select after completing the questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts, the fixed account and/or any GPAs that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts, the fixed account and/or any GPAs (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Special rules apply to the GPAs if they are included in a model portfolio. Under these rules: - no MVA will apply when rebalancing occurs within a specific model portfolio (but an MVA may apply if you elect to transfer to a new model portfolio); - no MVA will apply if you reallocate your contract value according to an updated model portfolio; and - no MVA will apply when you elect an annuity payout plan while your contract value is invested in a model portfolio. (See "Guarantee Period Accounts -- Market Value Adjustment.") If you initially allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA account, when available (see "The Special DCA Account"), and you are participating in the PN program, we will make monthly transfers in accordance with your instructions from the Special DCA account (and subaccounts we may choose to allow for DCA arrangements which are not part of a model portfolio -- "excluded accounts") into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS reassessed and that, unless you instruct us not to do so, your contract value, less amounts allocated to the Special DCA account, is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value, less amounts allocated to the Special DCA account, according to the updated model portfolio. If you do not want your contract value, less amounts allocated to the Special DCA account, to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. However, if your contract includes an optional Accumulation Benefit or Withdrawal Benefit rider and you make such change (other than a scheduled periodic reallocation), we may charge you a higher fee for your optional Accumulation Benefit or Withdrawal Benefit rider. We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - limit your choice of models based on the amount of your initial purchase payment we accept; - cancel required participation in the program after 30 days written notice; - substitute a fund of funds for your current model portfolio if permitted under applicable securities law; and - discontinue the PN program. We will give you 30 days' written notice of any such change. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing or periodic updating of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 43 PN PROGRAM UNDER THE ACCUMULATION BENEFIT RIDER AND WITHDRAWAL BENEFIT RIDER If you purchase the optional Accumulation Benefit rider or the optional Withdrawal Benefit rider, you are required to participate in the PN program under the terms of each rider. There is no additional charge for the PN program when used with either of these optional riders. - ACCUMULATION BENEFIT RIDER: You cannot terminate the Accumulation Benefit rider. As long as the Accumulation Benefit rider is in effect, your contract value must be invested in one of the model portfolios. The Accumulation Benefit rider automatically ends at the end of the waiting period as does your participation in the PN program. At all other times, if you do not want to participate in any of the model portfolios, you must terminate your contract by requesting a full surrender. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE ACCUMULATION BENEFIT RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) UNTIL END OF WAITING PERIOD. - WITHDRAWAL BENEFIT RIDER: Because the Withdrawal Benefit rider requires that your contract value be invested in one of the model portfolios for the life of the contract, and you cannot terminate the Withdrawal Benefit rider once you have selected it, you must terminate your contract by requesting a full surrender if you do not want to participate in any of the model portfolios. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE WITHDRAWAL BENEFIT RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) FOR THE LIFE OF THE CONTRACT. OPTIONAL PN PROGRAM RIDER If you do not select the optional Accumulation Benefit rider or the optional Withdrawal Benefit rider with your contract, you may elect to participate in the PN program by adding the optional Portfolio Navigator Model Portfolio Rider (PN rider) to your contract for an additional charge (see "Charges"). You may add PN rider at any time. You may cancel your participation in the PN program at any time by giving us written notice. If you terminate the PN rider other than on a contract anniversary, we reserve the right to deduct the PN rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Similarly, if we discontinue the PN program, we reserve the right to deduct the PN program rider fee at that time and adjust it for the number of calendar days the rider was in effect during the year. Upon cancellation, automated rebalancing associated with the PN program will end, and there will be no additional charges for the PN rider. You will also cancel the PN rider if you initiate transfers other than transfers to one of the current model portfolios or transfers from a Special DCA account (see "Special Dollar-Cost Averaging (Special DCA) Program") or an excluded account. Partial surrenders do not cancel the PN rider. Your participation in the PN rider will terminate on the date you make a full surrender from your contract or on your settlement date. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model portfolio is in effect. You may transfer contract value from any one subaccount, GPAs or the fixed account, to another subaccount before annuity payouts begin. Certain restrictions apply to transfers involving the GPAs and the fixed account. When your request to transfer will be processed depends on when we receive it: - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Transfers out of the GPAs will be subject to an MVA if done more than 30 days before the end of the guarantee period. Subject to state regulatory requirements, we may suspend or modify transfer privileges at any time. For information on transfers after annuity payouts begin, see "Transfer policies" below. TRANSFER POLICIES - Before annuity payouts begin, you may transfer contract values between the subaccounts, or from the subaccounts to the GPAs and fixed account at any time. The amount transferred to any GPA must be at least $1,000. However, if you made a transfer from the fixed account to the subaccounts or the GPAs, you may not make a transfer from any subaccount or GPA back to the fixed account until the next contract anniversary. We reserve the right to limit transfers to the fixed account if the interest rate we are then currently crediting to the fixed account is equal to the minimum interest rate stated in the contract. 44 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - You may transfer contract values from the fixed account to the subaccounts or the GPAs once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). Transfers from the fixed account are not subject to an MVA. Currently, transfers out of the fixed account are limited to the greater of: a) 30% of the fixed account value at the beginning of the contract year, or b) the amount transferred out of the fixed account in the previous contract year, excluding any automated transfer amounts. If an automated dollar-cost averaging arrangement is established at contract issue, the 30% limitation does not apply to transfers made from the fixed account to the subaccounts for the duration of this initial arrangement. - You may transfer contract values from any GPA to the subaccounts, fixed account or other GPA any time after 60 days of transfer or payment allocation into such GPA. Transfers made more than 30 days before the end of the guarantee period will receive an MVA, which may result in a gain or loss of contract value, unless an exception applies (see "The Guarantee Period Accounts (GPAs) -- Market Value Adjustment (MVA)"). - If we receive your request within 30 days before the contract anniversary date, the transfer from the fixed account to the subaccounts will be effective on the anniversary. - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the fixed account to the subaccounts or GPAs will be effective on the valuation date we receive it. - We will not accept requests for transfers from the fixed account at any other time. - You may not make a transfer to the Special DCA account. - Once annuity payouts begin, you may not make transfers to or from the GPAs or the fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. When annuity payments begin, you must transfer all contract value out of any GPAs and Special DCAs. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT BUY A CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU. Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - diluting the value of an investment in an underlying fund in which a subaccount invests; - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer request, if, in our sole judgment, the dollar amount of transfer request would adversely affect unit values. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 45 If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - requiring transfer requests to be submitted only by first-class U.S. mail; - not accepting hand-delivered transfer requests or requests made by overnight mail; - not accepting telephone or electronic transfer requests; - requiring a minimum time period between each transfer; - not accepting transfer requests of an agent acting under power of attorney; - limiting the dollar amount that you may transfer at any one time; - suspending the transfer privilege; or - modifying instructions under an automated transfer program to exclude a restricted fund if you do not provide new instructions. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost-averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable account are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. 46 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers or partial surrenders among your subaccounts or fixed account (if available). You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - Automated transfers to the GPAs, the fixed account or the Special DCA account are not allowed. - Automated transfers from the fixed account to the subaccounts under an automated dollar-cost averaging arrangement may not exceed an amount that, if continued, would deplete the fixed account within 12 months. - Automated surrenders may be restricted by applicable law under some contracts. - You may not make additional purchase payments if automated partial surrenders are in effect. - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - If a PN program is in effect, you are not allowed to set up automated transfers except in connection with a Special DCA account. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the fixed account) 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and recording calls. We will not allow a RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 47 telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request at our corporate office in good order before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, surrender charges, or any applicable optional rider charges (see "Charges") and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. If you have elected the Withdrawal Benefit rider and your partial surrenders in any contract year exceed the permitted surrender amount under the terms of the Withdrawal Benefit rider, your benefits under the rider may be reduced (see "Optional Benefits -- Guaranteed Minimum Withdrawal Benefit"). In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the fixed account, in the same proportion as your value in each account correlates to your total contract value, less any GPA or Special DCA account, unless you request otherwise. We will not withdraw money for a partial surrender from any GPAs or Special DCA account you may have, unless insufficient amounts are available from your subaccounts and/or fixed account. However, you may request specifically surrender from a GPA or Special DCA account. The minimum contract value after partial surrender is $600. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - payable to you; - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 2 BY WIRE - request that payment be wired to your bank; - bank account must be in the same ownership as your contract; and - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: - the surrender amount includes a purchase payment check that has not cleared; - the NYSE is closed, except for normal holiday and weekend closings; - trading on the NYSE is restricted, according to SEC rules; - an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or - the SEC permits us to delay payment for the protection of security holders. 48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations thereunder, unless we have prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: - you are at least age 59 1/2; - you are disabled as defined in the Code; - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - effective Jan. 1, 2009, the distribution is due to plan termination; or - effective Jan. 1, 2009, you are a military reservist. - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. Loans will not be available if you have selected the Withdrawal Benefit or Accumulation Benefit rider. CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. If you are a natural person and you own a nonqualified annuity, you may change the annuitant or successor annuitant if the request is made before annuity payments begin and while the existing annuitant is living. The change will become binding on us when we receive and record it. We will honor any change of ownership request received in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the ROPP, MAV, 5-Year MAV, EEB, EEP, Accumulation Benefit or Withdrawal Benefit. If you change ownership of your contract, we will terminate the ROPP and EEP. This includes both the EEP Part I benefits and the EEP Part II benefits. (See the description of these terms in "Optional Benefits".) In addition, the terms of the EEB, MAV and the 5-Year MAV will change due to a change of ownership. If the new owner is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over." We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If the new owner is older than age 75, the MAV and 5-Year MAV will terminate. If the MAV or the 5-Year MAV on the date of ownership change is greater than the account value on the date of the ownership change, we will set the MAV or the 5-Year MAV equal to the account value. Otherwise, the MAV or the 5-Year MAV value will not change due to a change in ownership. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 49 The Accumulation Benefit rider and the Withdrawal Benefit rider will continue upon change of ownership. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in similar capacity, ownership of the contract may be transferred to the annuitant. BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon your death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If you are age 75 or younger on the date we issue the contract, the beneficiary receives the greater of: - contract value, less any purchase payment credits subject to reversal less, any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If you are age 76 or older on the date we issue the contract, the beneficiary receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. ADJUSTED PARTIAL SURRENDERS = PS XDB ------- CV
PS = the partial surrender including any applicable surrender charge. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU ARE AGE 75 OR YOUNGER ON THE CONTRACT EFFECTIVE DATE: - You purchase the contract with a payment of $20,000. - During the second contract year the contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. We calculate the death benefit as follows: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 x $20,000 ---------------- = -1,667 $18,000 ------- for a death benefit of: $18,333
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date that our death claim requirements are fulfilled. We will determine the contract's value using the accumulation unit value we calculate on that valuation date. The death benefit will never be less than the surrender value adjusted by the MVA formula. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse elects to keep the contract as owner, the following describes the standard death benefit: - If your spouse was age 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: 50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - the payout period does not extend beyond the beneficiary's life or life expectancy. QUALIFIED ANNUITIES - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own with the contract value equal to the death benefit that would otherwise have been paid or elect an annuity payout plan or another plan agreed to by us. If your spouse elects to treat the contract as his/her own, the following describes the standard death benefit: - If your spouse was 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: - contract value, less any purchase payment credits subject to reversal less, any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders just as if they were purchasing a new contract. - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC unless the beneficiary fails to meet the requirements of using this option. OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits and optional living benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 51 OPTIONAL DEATH BENEFITS RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP) The ROPP is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. ADJUSTED PARTIAL SURRENDERS FOR THE ROPP DEATH BENEFIT = PS X DB --------- CV
PS = the partial surrender including any applicable surrender charge. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. The death benefit will never be less than the surrender value adjusted by the MVA formula. If you are age 76 or older at contract issue, you may choose to add the ROPP to your contract. Generally, you must elect the ROPP at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the ROPP may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the ROPP for new contracts. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. TERMINATING THE ROPP - You may terminate the ROPP rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the ROPP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The ROPP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. If you terminate the ROPP, the standard death benefit applies. For an example, see Appendix C. IF YOUR SPOUSE IS THE SOLE BENEFICIARY, he or she may keep the contract as owner with the contract value equal to the death benefit that would otherwise been paid under the ROPP. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. IF YOUR SPOUSE WAS AGE 76 OR OLDER AS OF THE DATE WE ISSUED THE CONTRACT, he or she may choose to continue the ROPP. In that case, the ROPP rider charges described in "Charges -- ROPP Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary. Your spouse also has the option of discontinuing the ROPP rider within 30 days of the date he or she elects to continue the contract. If your spouse was age 75 or younger as of the date we issued the contract, the ROPP will terminate. NOTE: For special tax considerations associated with the ROPP, see "Taxes." MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to the GPAs, fixed account or Special DCA account during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If you are age 75 or younger at contract issue, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the MAV for new contracts. On the first contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value to the higher of these values. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. 52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders; or - the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. The death benefit will never be less than the surrender value adjusted by the MVA formula. TERMINATING THE MAV - You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. For an example, see Appendix C. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. MAXIMUM FIVE YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV) The 5-Year MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The 5-Year MAV does not provide any additional benefit before the fifth contract anniversary after the rider effective date. The 5-Year MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum five year anniversary value at age 81, the 5-Year MAV rider fee continues to apply until the rider terminates. In addition, the 5-Year MAV does not provide any additional benefit with respect to the GPAs, fixed account or Special DCA account during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the 5-Year MAV is appropriate for your situation. If you are age 75 or younger at contract issue, you may choose to add the 5-Year MAV to your contract. Generally, you must elect the 5-Year MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the 5-Year MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the 5-Year MAV for new contracts. On the fifth contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every fifth contract anniversary after that, through age 80, we compare the previous 5-year anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value to the higher of these values. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders; or - the maximum anniversary value as calculated on the most recent fifth contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. The death benefit will never be less than the surrender value adjusted by the MVA formula. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 53 TERMINATING THE 5-YEAR MAV - You may terminate the 5-Year MAV rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the 5-Year MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The 5-Year MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The 5-Year MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the 5-Year MAV, the standard death benefit applies. For an example, see Appendix C. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the 5-Year MAV. To do this your spouse must, within 60 days after our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the 5-Year MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the 5-Year MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the 5-Year MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the 5-Year MAV rider, the contract value will be increased to the 5- Year MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides for reduced benefits if you are age 70 or older at the rider effective date and it does not provide any additional benefit before the first contract anniversary. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEB is appropriate for your situation. If you are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract according to terms determined by us and at our sole discretion. You may not select this rider if you select the EEP. We reserve the right to discontinue offering the EEB for new contracts. The EEB provides that if you die after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit"), the MAV death benefit amount, if applicable, or the 5-Year MAV death benefit amount, if applicable; PLUS - 40% of your earnings at death if you were under age 70 on the rider effective date; or - 15% of your earnings at death if you were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB AND EEP: If the rider effective date for the EEB or EEP is the contract issue date, earnings at death is an amount equal to: - the standard death benefit amount, the MAV death benefit amount, or the 5- Year MAV death benefit amount if applicable (the "death benefit amount") - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount - MINUS the greater of: 54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. For an example, see Appendix C. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If the spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract, he or she may choose to continue the EEB. In this case, the following conditions will apply: - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP) The EEP is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEP provides for reduced benefits if you are age 70 or older at the rider effective date. It does not provide any additional benefit before the first contract anniversary and it does not provide any benefit beyond what is offered under the EEB during the second contract year. The EEP also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because part of the benefit paid by the EEP is determined by the amount of earnings at death. Be sure to discuss with your sales representative and your tax advisor whether or not the EEP is appropriate for your situation. If this EEP rider is available in your state and you are age 75 or younger at contract issue, you may choose to add the EEP to your contract. You must elect the EEP at the time you purchase your contract and your rider effective date will be the contract issue date. THIS RIDER IS ONLY AVAILABLE UNDER ANNUITIES PURCHASED THROUGH AN EXCHANGE OR DIRECT TRANSFER FROM ANOTHER ANNUITY OR A LIFE INSURANCE POLICY. You may not select this rider if you select the EEB. We reserve the right to discontinue offering the EEP for new contracts. The EEP provides that if you die after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - EEP Part I benefits, which equal the benefits payable under the EEB described above; RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 55 PLUS - EEP Part II benefits, which equal a percentage of exchange purchase payments identified at issue not previously surrendered as follows:
PERCENTAGE IF YOU ARE PERCENTAGE IF YOU ARE CONTRACT YEAR UNDER AGE 70 ON THE RIDER EFFECTIVE DATE 70 OR OLDER ON THE RIDER EFFECTIVE DATE One and Two 0% 0% Three and Four 10% 3.75% Five or more 20% 7.5%
Additional death benefits payable under the EEP are not included in the adjusted partial surrender calculation. If after 6 months, no exchange purchase payments have been received, we will contact you and you will have an additional 30 days to follow-up on exchange purchase payments identified at issue but not received by us. If after these 30 days we have not received any exchange purchase payments, we will convert the EEP rider into an EEB. Another way to describe the benefits payable under the EEP rider is as follows: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Death Benefit"), the MAV death benefit amount, or 5-Year MAV death benefit amount, if applicable, PLUS
IF YOU ARE UNDER AGE 70 IF YOU ARE AGE 70 CONTRACT YEAR ON THE RIDER EFFECTIVE DATE, ADD . . . OR OLDER ON THE RIDER EFFECTIVE DATE, ADD . . . 1 Zero Zero 2 40% x earnings at death (see above) 15% x earnings at death 3 & 4 40% x (earnings at death + 25% of exchange 15% x (earnings at death + 25% of exchange purchase payment*) purchase payment*) 5+ 40% x (earnings at death + 50% of exchange 15% x (earnings at death + 50% of exchange purchase payment*)
* Exchange purchase payments are purchase payments exchanged from another annuity or a life insurance policy that are identified at issue and not previously surrendered. We are not responsible for identifying exchange purchase payments if we did not receive proper notification from the company from which the purchase payments are exchanged. TERMINATING THE EEP - You may terminate the EEP rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The EEP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEP rider will terminate in the case of an ownership change. - The EEP rider will terminate in the case of the spousal continuation if the new owner is age 76 or older. For an example, see Appendix C. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEP. If your spouse has reached age 76 at the time he or she elects to continue the contract, the EEP rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she cannot continue the EEP. However, he or she may choose to convert the EEP rider into an EEB. In this case, the following conditions will apply: - the EEB rider will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the EEB rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEP rider. If your spouse chooses not to convert the EEP rider into an EEB, the standard death benefit amount (or the MAV or 5-Year MAV death benefit amount, if applicable,) will apply. NOTE: For special tax considerations associated with the EEP, see "Taxes." 56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS OPTIONAL LIVING BENEFITS GUARANTEED MINIMUM ACCUMULATION BENEFIT (ACCUMULATION BENEFIT) RIDER The Accumulation Benefit rider is an optional benefit that you may select for an additional charge. It is available for nonqualified and qualified annuities except under 401(a) and 401(k) plans. The Accumulation Benefit rider specifies a waiting period that ends on the benefit date. The Accumulation Benefit rider provides a one-time adjustment to your contract value on the benefit date if your contract value is less than the Minimum Contract Accumulation Value (defined below) on that benefit date. If the contract value falls to zero as the result of adverse market performance or the deduction of fees and/or charges at any time during the waiting period and before the benefit date, the contract and all riders, including the Accumulation Benefit rider will terminate without value and no benefits will be paid. EXCEPTION: if you are still living on the benefit date, we will pay you an amount equal to the Minimum Contract Accumulation Value as determined under the Accumulation Benefit rider on the valuation date your contract value reached zero. If you are 80 or younger at contract issue and this rider is available in your state, you may elect the Accumulation Benefit at the time you purchase your contract and the rider effective date will be the contract issue date. The Accumulation Benefit rider may not be terminated once you have elected it except as described in the "Terminating the Rider" section below. An additional charge for the Accumulation Benefit rider will be assessed annually during the waiting period. The rider ends when the waiting period expires and no further benefit will be payable and no further charges for the rider will be deducted. The Accumulation Benefit rider may not be purchased with the optional Withdrawal Benefit rider. When the rider ends, you may be able to purchase another optional rider we then offer by written request received within 30 days of that contract anniversary date. The Accumulation Benefit rider may not be available in all states. You should consider whether a Accumulation Benefit rider is appropriate for you because: - you must participate in the PN program and you must elect one of the model portfolios. This requirement limits your choice of subaccounts, fixed account and GPAs (if available) to those that are in the model portfolio you select. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the fixed account that are available under the contract to other contract owners who do not elect this rider. You may allocate qualifying purchase payments and applicable payment credits to the Special DCA account, when available (see "The Special DCA Account"), and we will make monthly transfers into the model portfolio you have chosen. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"); - you may not make additional purchase payments to your contract during the waiting period after the first 180 days immediately following the effective date of the Accumulation Benefit rider. Some exceptions apply (see "Additional Purchase Payments with Elective Step Up" below); - if you purchase this contract as a qualified annuity, for example, an IRA, you may need to take partial surrenders from your contract to satisfy the RMDs under the Code. Partial surrenders, including those used to satisfy RMDs, will reduce any potential benefit that the Accumulation Benefit rider provides. You should consult your tax advisor if you have any questions about the use of this rider in your tax situation; - if you think you may surrender all of your contract value before you have held your contract with this benefit rider attached for 10 years, or you are considering selecting an annuity payout option within 10 years of the effective date of your contract, you should consider whether this optional benefit is right for you. You must hold the contract a minimum of 10 years from the effective date of the Accumulation Benefit rider, which is the length of the waiting period under the Accumulation Benefit rider, in order to receive the benefit, if any, provided by the Accumulation Benefit rider. In some cases, as described below, you may need to hold the contract longer than 10 years in order to qualify for any benefit the Accumulation Benefit rider may provide; - the 10 year waiting period under the Accumulation Benefit rider will restart if you exercise the Elective Step-Up Option (described below) or your surviving spouse exercises the spousal continuation Elective Step-Up (described below); and - the 10 year waiting period under the Accumulation Benefit rider may be restarted if you elect to change your model portfolio to one that causes the Accumulation Benefit rider charge to increase (see "Charges"). Be sure to discuss with your sales representative whether an Accumulation Benefit rider is appropriate for your situation. HERE ARE SOME GENERAL TERMS THAT ARE USED TO DESCRIBE THE OPERATION OF THE ACCUMULATION BENEFIT: BENEFIT DATE: This is the first valuation date immediately following the expiration of the waiting period. MINIMUM CONTRACT ACCUMULATION VALUE (MCAV): An amount calculated under the Accumulation Benefit rider. The contract value will be increased to equal the MCAV on the benefit date if the contract value on the benefit date is less than the MCAV on the benefit date. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 57 ADJUSTMENTS FOR PARTIAL SURRENDERS: The adjustment made for each partial surrender from the contract is equal to the amount derived from multiplying (a) and (b) where: (a) is 1 minus the ratio of the contract value on the date of (but immediately after) the partial surrender to the contract value on the date of (but immediately prior to) the partial surrender; and (b) is the MCAV on the date of (but immediately prior to) the partial surrender. WAITING PERIOD: The waiting period for the rider is 10 years. We reserve the right to restart the waiting period on the latest contract anniversary if you change your model portfolio after we have exercised our rights to increase the rider fee. Your initial MCAV is equal to your initial purchase payment and any purchase payment credit. It is increased by the amount of any subsequent purchase payments and purchase payment credits received within the first 180 days that the rider is effective. It is reduced by any adjustments for partial surrenders made during the waiting period. AUTOMATIC STEP UP On each contract anniversary after the effective date of the rider, the MCAV will be set to the greater of: 1. 80% of the contract value on the contract anniversary; or 2. the MCAV immediately prior to the automatic step up. The automatic step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be surrendered or paid upon death. Rather, the Automatic Step Up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The automatic step up of the MCAV does not restart the waiting period or increase the charge (although the total fee for the rider may increase). ELECTIVE STEP UP OPTION Within thirty days following each contract anniversary after the rider effective date, but prior to the benefit date, you may notify us in writing that you wish to exercise the annual elective step up option. You may exercise this elective step up option only once per contract year during this 30 day period. If your contract value on the valuation date we receive your written request to step up is greater than the MCAV on that date, your MCAV will increase to 100% of that contract value. When you exercise the annual elective step up, we may be charging more for the Accumulation Benefit rider at that time. If your MCAV is increased as a result of the elective step up and we have increased the charge for the Accumulation Benefit rider, you will pay the charge that is in effect on the valuation date we receive your written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. Failure to exercise this elective step up in subsequent years will not reinstate any prior waiting period. Rather, the waiting period under the rider will always commence from the most recent anniversary for which the elective step up option was exercised. The elective step up does not create contract value, guarantee the performance of any investment option or provide any benefit that can be surrendered or paid upon death. Rather the elective step up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The elective step up option is not available to non-spouse beneficiaries that continue the contract during the waiting period. ADDITIONAL PURCHASE PAYMENTS WITH ANNUAL ELECTIVE STEP UPS If your MCAV is increased as a result of Elective Step Up, you have 180 days from the latest contract anniversary to make additional purchase payments, if allowed under the base contract. The MCAV will include the amount of any additional purchase payments and purchase payment credits (if applicable) received during this period. SPOUSAL CONTINUATION If a spouse chooses to continue the contract under the spousal continuation provision, the rider will continue as part of the contract. Once, within the thirty days following the date of spousal continuation, the spouse may choose to exercise an elective step up. The spousal continuation elective step up is in addition to the annual elective step up. If the contract value on the valuation date we receive the written request to exercise this option is greater than the MCAV on that date, we will increase the MCAV to that contract value. If the MCAV is increased as a result of the elective step up and we have increased the charge for the Accumulation Benefit rider, the spouse will pay the charge that is in effect on the valuation date we receive their written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. TERMINATING THE RIDER The rider will terminate under the following conditions: 58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS The rider will terminate before the benefit date without paying a benefit on the date: - you take a full surrender; or - annuitization begins; or - the contract terminates as a result of the death benefit being paid. The rider will terminate on the benefit date. For an example, see Appendix C. GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER (WITHDRAWAL BENEFIT AND ENHANCED WITHDRAWAL BENEFIT) The Withdrawal Benefit rider is an optional benefit that you may select for an additional annual charge if you are 80 or younger on the date the contract is issued. It is available for nonqualified and qualified annuities except under 401 (a) and 401 (k) plans.(1) (1) The Withdrawal Benefit rider is not available under an inherited qualified annuity. You must have elected the Withdrawal Benefit rider when you purchased your contract (original rider). The original rider you received at contract issue offers an elective annual step-up and any withdrawal after a step up during the first three contract years is considered an excess withdrawal, as described below. The rider effective date of the original rider is the contract issue date. We offered you the option of replacing the original rider with a new Withdrawal Benefit (enhanced rider). The enhanced rider offers an automatic annual step-up and a withdrawal after a step up during the first three contract years is not necessarily an excess withdrawal, as described below. The effective date of the enhanced rider will be the contract issue date except for the automatic step-up which will apply to contract anniversaries that occur after you accept the enhanced rider. The descriptions below apply to both the original and enhanced riders unless otherwise noted. The Withdrawal Benefit initially provides a guaranteed minimum withdrawal benefit that gives you the right to take limited partial withdrawals in each contract year that over time will total an amount equal to your purchase payments plus any purchase payment credits. Certain withdrawals and step ups, as described below, can cause the initial guaranteed withdrawal benefit to change. The guarantee remains in effect if your partial withdrawals in a contract year do not exceed the allowed amount. As long as your withdrawals in each contract year do not exceed the allowed amount, you will not be assessed a surrender charge. Under the original rider, the allowed amount is the Guaranteed Benefit Payment (GBP -- the amount you may withdraw under the terms of the rider in each contract year, subject to certain restrictions prior to the third contract anniversary, as described below). Under the enhanced rider, the allowed amount is equal to 7% of purchase payments and purchase payment credits for the first three contract years, and the GBP in all other years. If you withdraw an amount greater than the allowed amount in a contract year, we call this an "excess withdrawal" under the rider. If you make an excess withdrawal under the rider: - surrender charges, if applicable, will apply only to the amount of the withdrawal that exceeds the allowed amount; - the guaranteed benefit amount will be adjusted as described below; and - the remaining benefit amount will be adjusted as described below. For a partial withdrawal that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge (see "Charges -- Surrender Charge"). Market value adjustments, if applicable, will also be made (see the "Market Value Adjustment" provision in the prospectus). We pay you the amount you request. Any partial withdrawals you take under the contract will reduce the value of the death benefits (see "Benefits in Case of Death"). Upon full withdrawal of the contract, you will receive the remaining contract value less any applicable charges (see "Surrenders"). Once elected, the Withdrawal Benefit rider may not be cancelled by you and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero (described below) or annuity payouts begin. If you select the Withdrawal Benefit rider, you may not select the Accumulation Benefit rider. If you exercise the annual step up election (see "Elective Step Up" and "Annual Step Up" below), the special spousal continuation step up election (see "Spousal Continuation and Special Spousal Continuation Step Up" below) or change your Portfolio Navigator model portfolio, the rider charge may change (see "Charges"). WITHDRAWAL BENEFIT IS SUBJECT TO CERTAIN RESTRICTIONS AND LIMITATIONS DESCRIBED BELOW: - USE OF ASSET ALLOCATION PROGRAM REQUIRED: You must participate in the Portfolio Navigator program with this rider (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"). The Portfolio Navigator program limits your choice of subaccounts and fixed account to those that are in the model portfolio you select. This means you will not be able to allocate contract value to all of the subaccounts or the fixed account that are available under the contract to RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 59 contract owners who do not elect this rider. You may allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA account, when available (see "The Special DCA Account"), and we will make monthly transfers into the model portfolio you have chosen. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program."); - LIMITATIONS ON TSAS: Your right to take withdrawals is restricted if your contract is a TSA (see "TSA -- Special Provisions"). Therefore, Withdrawal Benefit rider may be of limited value to you. You should consult your tax advisor if you selected this optional rider and if you have any questions about the use of this rider in your tax situation; - LIMITATIONS ON PURCHASE PAYMENTS: We reserve the right to limit the cumulative amount of purchase payments. For current limitations, see "Buying Your Contract -- Purchase Payment." - NON-CANCELABLE: Once elected, the Withdrawal Benefit rider may not be cancelled by you and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero (described below) or annuity payouts begin. - INTERACTION WITH THE TOTAL FREE AMOUNT (TFA) CONTRACT PROVISION: The TFA is the amount you are allowed to withdraw in each contract year without incurring a surrender charge (see "Charges -- Surrender Charge"). The TFA may be greater than the RBP under this rider. Any amount you withdraw under the contract's TFA provision that exceeds the RBP is subject to the excess withdrawal processing for the GBA and RBA described below. YOU SHOULD CONSULT YOUR TAX ADVISOR IF YOU HAVE ANY QUESTIONS ABOUT THE USE OF THIS RIDER IN YOUR TAX SITUATION: - TAX CONSIDERATIONS FOR NON-QUALIFIED ANNUITIES: Withdrawals before age 59 1/2 may incur a 10% IRS early withdrawal penalty and may be considered taxable income; - TAX CONSIDERATIONS FOR QUALIFIED ANNUITIES: Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). If you have a qualified annuity, you may need to take an RMD that exceeds the guaranteed amount of withdrawal available under the rider and such withdrawals may reduce future benefits guaranteed under the rider. Under the terms of the enhanced rider, we allow you to satisfy the RMD based on the life expectancy RMD for your contract and the requirements of the Code and regulations in effect when you purchase your contract, without the withdrawal being treated as an excess withdrawal. It is our current administrative practice to make the same accommodation under the original rider, however, we reserve the right to discontinue this administrative practice and will give you 30 days' written notice of any such change. For contract holders subject to annual RMD rules under Section 401(a)(9) of the Code, amounts you withdraw each year from this contract to satisfy these rules are not subject to excess withdrawal processing under the terms of the rider, subject to the following rules and our current administrative practice: If on the date we calculated your Annual Life Expectancy Required Minimum Distribution Amount (ALERMDA), it is greater than the RBP from the beginning of the current contract year, - A Basic Additional Benefit Amount (BABA) will be set equal to that portion of your ALERMDA that exceeds the value of the RBP from the beginning of the current contract year. - Any withdrawals taken in a contract year will count first against and reduce the RBP for that contract year. - Once the RBP for the current contract year has been depleted, any additional amounts withdrawn will count against and reduce the BABA. These withdrawals will not be considered excess withdrawals with regard to the GBA and RBA as long as they do not exceed the remaining BABA. - Once the BABA has been depleted, any additional withdrawal amounts will be considered excess withdrawals with regard to the GBA and RBA and will subject them all to the excess withdrawal processing described by the rider. The ALERMDA is: (1) determined by us each calendar year; (2) based on the value of this contract alone on the date it is determined; and (3) based on the company's understanding and interpretation of the requirements for life expectancy distributions intended to satisfy the required minimum distribution rules under Code Section 401(a) (9) and the Treasury Regulations promulgated thereunder, as applicable on the effective date of this prospectus, to: 1. IRAs under Section 408(b) of the Code; 2. Roth IRAs under Section 408A of the Code; 3. SIMPLE IRA under Section 408A of the Code; 4. SEP plans under Section 408 (k) of the Code; 5. Custodial and investment only plans under Section 401 (a) of the Code; 6. TSAs under Section 403(b) of the Code. 60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS In the future, the requirements under tax law for such distributions may change and the life expectancy amount calculation provided under your rider may not be sufficient to satisfy the requirements under the tax law for these types of distributions. In such a situation, amounts withdrawn to satisfy such distribution requirements would exceed your available withdrawal amount and may result in the reduction of your GBA and/or RBA as described under the excess withdrawal provision of the rider. RMD rules follow the calendar year which most likely does not coincide with your contract year and therefore may limit when you can take your RMD and not be subject to excess withdrawal processing. In cases where the Code does not allow the life expectancy of a natural person to be used to calculate the required minimum distribution amount (e.g. some ownerships by trusts and charities), we will calculate the life expectancy RMD amount as zero in all years. The annual life expectancy required minimum distribution amount calculated by us will also equal zero in all years. THE TERMS "GUARANTEED BENEFIT AMOUNT" AND "REMAINING BENEFIT AMOUNT" ARE DESCRIBED BELOW. EACH IS USED IN THE OPERATION OF THE GBP, THE RBP, THE ELECTIVE STEP UP, THE ANNUAL STEP UP, THE SPECIAL SPOUSAL CONTINUATION STEP UP AND THE WITHDRAWAL BENEFIT ANNUITY PAYOUT OPTION. GUARANTEED BENEFIT AMOUNT The Guaranteed Benefit Amount (GBA) is equal to the initial purchase payment, plus any purchase payment credits, adjusted for subsequent purchase payments, any purchase payment credits, partial withdrawals in excess of the GBP, and step ups. The maximum GBA is $5,000,000. THE GBA IS DETERMINED AT THE FOLLOWING TIMES: - At contract issue -- the GBA is equal to the initial purchase payment, plus any purchase payment credit; - When you make additional purchase payments -- each additional purchase payment plus any purchase payment credit has its own GBA equal to the amount of the purchase payment plus any purchase payment credit. The total GBA when an additional purchase payment and purchase payment credit are added is the sum of the individual GBAs immediately prior to the receipt of the additional purchase payment, plus the GBA associated with the additional purchase payment; - At step up -- (see "Elective Step Up" and "Annual Step Up" headings below). - When you make a partial withdrawal: (a) and all of your withdrawals in the current contract year, including the current withdrawal, are less than or equal to the GBP -- the GBA remains unchanged. Note that if the partial withdrawal is taken during the first three contract years, the GBA and the GBP are calculated after the reversal of any prior step ups; (b) and all of your withdrawals in the current contract year, including the current withdrawal, are greater than the GBP -- THE FOLLOWING EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. Note that if the partial withdrawal is taken during the first three contract years, the GBA and the GBP are calculated after the reversal of any prior step ups: (c) under the original rider in a contract year after a step up but before the third contract anniversary -- THE FOLLOWING EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. Note that the GBA and the GBP are calculated after the reversal of prior step ups: GBA EXCESS WITHDRAWAL PROCESSING The total GBA will automatically be reset to the lesser of (a) the total GBA immediately prior to the withdrawal; or (b) the contract value immediately following the withdrawal. If there have been multiple purchase payments, each payment's GBA after the withdrawal will be reset to equal that payment's RBA after the withdrawal plus (a) times (b), where: (a) is the ratio of the total GBA after the withdrawal less the total RBA after the withdrawal to the total GBA before the withdrawal less the total RBA after the withdrawal; and (b) is each payment's GBA before the withdrawal less that payment's RBA after the withdrawal. REMAINING BENEFIT AMOUNT The remaining benefit amount (RBA) at any point is the total guaranteed amount available for future partial withdrawals. The maximum RBA is $5,000,000. The RBA is determined at the following times: - At contract issue -- the RBA is equal to the initial purchase payment plus any purchase payment credit; - When you make additional purchase payments -- each additional purchase payment plus any purchase payment credit has its own RBA equal to the amount of the purchase payment plus any purchase payment credit. The total RBA when an additional purchase payment and purchase payment credit are added is the sum of the individual RBAs immediately prior to the receipt of the additional purchase payment, plus the RBA associated with the additional payment; - At step up -- (see "Elective Step Up" and "Annual Step Up" headings below). RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 61 - When you make a partial withdrawal: (a) and all of your withdrawals in the current contract year, including the current withdrawal, are less than or equal to the GBP -- the RBA becomes the RBA immediately prior to the partial withdrawal, less the partial withdrawal. Note that if the partial withdrawal is taken during the first three contract years, the RBA and the GBP are calculated after the reversal of any prior step ups; (b) and all of your withdrawals in the current contract year, including the current withdrawal, are greater than the GBP -- THE FOLLOWING EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. Note that if the partial withdrawal is taken during the first three contract years, the RBA and the GBP are calculated after the reversal of any prior step ups; (c) under the original rider after a step up but before the third contract anniversary -- THE FOLLOWING EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. Note that the RBA and the GBP are calculated after the reversal of prior step ups. RBA EXCESS WITHDRAWAL PROCESSING The RBA will automatically be reset to the lesser of (a) the contract value immediately following the withdrawal, or (b) the RBA immediately prior to the withdrawal, less the amount of the withdrawal. If there have been multiple purchase payments, any reduction of the RBA will be taken out of each payment's RBA in the following manner: The withdrawal amount up to the remaining benefit payment (defined below) is taken out of each RBA bucket in proportion to its remaining benefit payment at the time of the withdrawal; and the withdrawal amount above the remaining benefit payment and any amount determined by the excess withdrawal processing are taken out of each RBA bucket in proportion to its RBA at the time of the withdrawal. GUARANTEED BENEFIT PAYMENT Under the original rider, the GBP is the amount you may withdraw under the terms of the rider in each contract year, subject to certain restrictions prior to the third anniversary. Under the enhanced rider, the GBP is the withdrawal amount that you are entitled to take each contract year after the third anniversary until the RBA is depleted. Under the original rider, the GBP is equal to 7% of the GBA. Under the enhanced rider, the GBP is the lesser of a) 7% of the GBA or (b) the RBA. Under both the original and enhanced riders, if you withdraw less than the GBP in a contract year, there is no carry over to the next contract year. REMAINING BENEFIT PAYMENT Under the original rider, at the beginning of each contract year, the remaining benefit payment (RBP) is set as the lesser of (a) the GBP, or (b) the RBA. Under the enhanced rider, at the beginning of each contract year, during the first three contract years and prior to any withdrawal, the RBP for each purchase payment is set equal to that purchase payment plus any purchase payment credit, multiplied by 7%. At the beginning of any other contract year, each individual RBP is set equal to each individual GBP. Each additional purchase payment has its own RBP established equal to that payment's GBP. The total RBP is equal to the sum of the individual RBPs. Whenever a partial withdrawal is made, the RBP equals the RBP immediately prior to the partial withdrawal less the amount of the partial withdrawal, but not less than zero. ELECTIVE STEP UP (UNDER THE ORIGINAL RIDER ONLY) You have the option to increase the RBA, the GBA, the GBP and the RBP beginning with the first contract anniversary. An annual elective step up option is available for 30 days after the contract anniversary. The elective step up option allows you to step up the remaining benefit amount and guaranteed benefit amount to the contract value on the valuation date we receive your written request to step up. The elective step up is subject to the following rules: - if you do not take any withdrawals during the first three contract years, you may step up annually beginning with the first contract anniversary; - if you take any withdrawals during the first three contract years, the annual elective step up will not be available until the third contract anniversary; - if you step up on the first or second contract anniversary but then take a withdrawal prior to the third contract anniversary, you will lose any prior step ups and the withdrawal will be considered an excess withdrawal subject to the GBA and RBA 62 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS excess withdrawal processing discussed under the "Guaranteed Benefit Amount" and "Remaining Benefit Amount" headings above, and to surrender charges; and - you may take withdrawals on or after the third contract anniversary without reversal of previous step ups You may elect a step up only once each contract year within 30 days after the contract anniversary. Once a step up has been elected, another step up may not be elected until the next contract anniversary. RIDER A(1): You may only step up if your contract value on the valuation date we receive your written request to step up is greater than RBA. The elective step up will be determined as follows: - The effective date of the elective step up is the valuation date we receive your written request to step up. - The RBA will be increased to an amount equal to the contract value on the valuation date we receive your written request to step up. - The GBA will be increased to an amount equal to the greater of (a) the GBA immediately prior to the elective step up; or (b) the contract value on the valuation date we receive your written request to step up. - The GBP will be increased to an amount equal to the greater of (a) the GBP immediately prior to the step up; or (b) 7% of the GBA after the step up. - The RBP will be increased to the lesser of (a) the RBA after the elective step up; or (b) the GBP after the elective step up. RIDER B(1): You may only step up if your contract value is greater than RBA. The elective step up will be determined as follows: - The effective date of the elective step up is the contract anniversary. - The RBA will be increased to an amount equal to the contract anniversary value. - The GBA will be increased to an amount equal to the greater of (a) the GBA immediately prior to the elective step up; or (b) the contract anniversary value. - The GBP will be increased to an amount equal to the greater of (a) the GBP immediately prior to the step up; or (b) 7% of the GBA after the step up. - The RBP will be increased to the lesser of (a) the RBA after the elective step up; or (b) the GBP after the elective step up. (1) Before April 29, 2005 we only offered Rider B. We began offering Rider A in states where it is approved and discontinued offering Rider B in those states, on April 29, 2005. If you purchased a contract with this optional benefit rider before April 29, 2005 the references to Rider B generally apply to your contract (see the rider attached to your contract for the actual terms of the benefit you purchased). If you purchased a contract on or after April 20, 2005 with this benefit, the version we offer you depends on which state you live in. The discussion about this benefit and how it works applies generally to both riders unless otherwise noted. ANNUAL STEP UP (UNDER THE ENHANCED RIDER ONLY) Beginning with the first contract anniversary after you accept the enhanced rider, an increase of the RBA, the GBA, the GBP and the RBP may be available. A step up does not create contract value, guarantee performance of any investment options, or provide a benefit that can be withdrawn or paid upon death. Rather, a step up determines the current values of the GBA, RBA, GBP, and RBP, and may extend the payment period or increase allowable payment. The annual step up is subject to the following rules: - The annual step up is available when the RBA would increase on the step up date. The applicable step up date depends on whether the annual step up is applied on an automatic or elective basis. - If the application of the step does not increase the rider charge, the annual step up will be automatically applied to your contract and the step up date is the contract anniversary date. - If the application of the step up would increase the rider charge (see the "Withdrawal Benefit Rider Fee" provision in the prospectus), the annual step up is not automatically applied. Instead, you have the option to step up for 30 days after the contract anniversary. If you exercise the elective annual step up option, you will pay the rider charge in effect on the step up date. If you wish to exercise the elective annual step up option, we must receive a request from you or your investment professional. The step up date is the date we receive your request to step up. If your request is received after the close of business, the step up date will be the next valuation day. - Only one step up is allowed each contract year. - If you take any withdrawals during the first three contract years, any previously applied step ups will be reversed and the annual step up will not be available until the third contract anniversary; - You may take withdrawals on or after the third contract anniversary without reversal of previous step ups. The annual step up will be determined as follows: - The RBA will be increased to an amount equal to the contract value on the step up date. - The GBA will be increased to an amount equal to the greater of (a) the GBA immediately prior to the annual step up; or (b) the contract value on the step up date. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 63 - The GBP will be calculated as described earlier, but based on the increased GBA and RBA. - The RBP will be reset as follows: (a) Prior to any withdrawals during the first three contract years, the RBP will not be affected by the step up. (b) At any other time, the RBP will be reset as the increased GBP less all prior withdrawals made during the current contract year, but not less than zero. SPOUSAL CONTINUATION AND SPECIAL SPOUSAL CONTINUATION STEP UP If a surviving spouse elects to continue the contract, this rider also continues. The spousal continuation step up is in addition to the elective step up or the annual step up on contract anniversaries. A surviving spouse may elect a spousal continuation step up by written request within 30 days following the spouse's election to continue the contract. Under this step up, the RBA will be reset to the greater of the RBA or the contract value on the valuation date we receive the spouse's written request to step up; the GBA will be reset to the greater of the GBA or the contract value on the same valuation date. If a spousal continuation step up is elected and we have increased the charge for the rider, the spouse will pay the charge that is in effect on the valuation date we receive the written request to step up. It is our current administrative practice to process the spousal continuation step up as described in the next paragraph; however, we reserve the right to discontinue the administrative practice and will give you 30 days' written notice of any such change. At the time of spousal continuation, a step up may be available. All annual step-up rules (see "Annual Step-Up" heading above), other than those that apply to the waiting period, also apply to the spousal continuation step up. If the spousal continuation step up is processed automatically, the step up date is the valuation date the spousal continuation is effective. If not, the spouse must elect the step up and must do so within 30 days of the spousal continuation date. If the spouse elects the spousal continuation step up, the step-up date is the valuation date we receive the spouse's written request to step up if we receive the request by the close of business on that day, otherwise the next valuation date. REMAINING BENEFIT AMOUNT PAYOUT OPTION Several annuity payout plans are available under the contract. As an alternative to these annuity payout plans, a fixed annuity payout option is available under the Withdrawal Benefit. Under this option the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the current total RBA at the time you begin this fixed annuity option. These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at that time but will be no less frequent than annually. If, at the death of the owner, total payments have been made for less than the RBA, the remaining payments will be paid to the beneficiary (see "The Annuity Payout Period" and "Taxes"). This annuity payout option may also be elected by the beneficiary of a contract as a settlement option. Whenever multiple beneficiaries are designated under the contract, each such beneficiary's share of the proceeds if they elect this option will be in proportion to their applicable designated beneficiary percentage. Beneficiaries of nonqualified contracts may elect this settlement option subject to the distribution requirements of the contract. We reserve the right to adjust the remaining schedule of GBPs if necessary to comply with the Code. IF CONTRACT VALUE REDUCES TO LESS THAN $600* If the contract value reduces to less than $600 and the RBA remains greater than zero, the following will occur: - you will be paid according to the annuity payout option described above; - we will no longer accept additional purchase payments; - you will no longer be charged for the rider; - any attached death benefit riders will terminate; and - the death benefit becomes the remaining payments under the annuity payout option described above. If the contract value falls to zero and the RBA is depleted, the Withdrawal Benefit rider and the contract will terminate. * Under our current administrative practice, we allow the minimum contract value to be $0. Therefore, these limitations will only apply when the contract value is reduced to zero. For an example, see Appendix C. 64 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date, plus or minus any applicable MVA on GPAs and less any applicable premium tax. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - the annuity payout plan you select; - your age and, in most cases, sex; - the annuity table in the contract; and - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to your age and, when applicable, your sex. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate results in a higher initial payout, but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan*: - PLAN A: LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only one monthly payout, we will not make any more payouts. - PLAN B: LIFE ANNUITY WITH FIVE, TEN OR 15 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten or 15 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - PLAN C: LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. - PLAN D: JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving owner. Payouts end with the death of the second annuitant. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 65 - PLAN E: PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that the annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the payout that would have been made 7 days prior to the date we determine the present value. The discount rate we use in the calculation will be either 5.17% or 6.67%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take a surrender. (See "Taxes.") - WITHDRAWAL BENEFIT -- RBA PAYOUT OPTION: If you have a Withdrawal Benefit rider under your contract, you may elect the Withdrawal Benefit RBA payout option as an alternative to the above annuity payout plans. This option may not be available if the contract is issued to qualify under Sections 403 or 408 of the Code. For such contracts, this option will be available only if the guaranteed payout period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using life expectancy tables published by IRS. Under this option, the amount payable each year will be equal to the future schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the total RBA at the time you begin this fixed payout option (see "Optional Benefits -- Withdrawal Benefit"). These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at the time but will be no less frequent than annually. If, at the death of the owner, total payouts have been made for less than the RBA, the remaining payouts will be paid to the beneficiary. ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or - in equal or substantially equal payments over a period not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary; or - over a period certain not longer than your life expectancy or over the life expectancy of you and your designated beneficiary. * For contracts purchased in Oregon, you cannot apply your contract value to an annuity payout plan during your first contract year. IF WE DO NOT RECEIVE INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the settlement date. If you do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. Contract values that you allocated to the fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay federal income tax until there is a distribution (or deemed distribution) from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. ANNUITY PAYOUTS: Generally, unlike surrenders, the taxation of annuity payouts is subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of 66 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, including withdrawals under any optional withdrawal benefit rider, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, including surrenders under any optional withdrawal benefit rider, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - because of your death or in the event of nonnatural ownership, the death of the annuitant; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if it is allocable to an investment before Aug. 14, 1982; or - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies and annuity contracts, while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment or annuity contract, (2) the exchange of an endowment contract for an annuity contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract exchanged, (3) the exchange of an annuity contract for another annuity contract. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 67 For exchanges after 2009, a life insurance policy, annuity or endowment contract or a qualified long-term care insurance contract may be exchanged for a qualified long-term care insurance contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. (If certain life events occur between the date of the partial exchange and the date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed to you like a surrender and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for Roth IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, including surrenders under any optional withdrawal benefit rider, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. 68 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - the payout is a RMD as defined under the Code; - the payout is made on account of an eligible hardship; or - the payout is a corrective distribution. State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - because of your death; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); or - to pay certain medical or education expenses (IRAs only). DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER PURCHASE PAYMENT CREDITS: These are considered earnings and are taxed accordingly when surrendered or paid out. SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 69 maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: - the reserve held in each subaccount for your contract; divided by - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - laws or regulations change; - the existing funds become unavailable; or - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - add new subaccounts; - combine any two or more subaccounts; - transfer assets to and from the subaccounts or the variable account; and - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio - Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. ("RiverSource Distributors"), our affiliate, serves as the principal underwriter of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. Although we no longer offer the contract for sale, you may continue to make purchase payments if permitted under the terms of your contract. We pay commissions to an affiliated selling firm of up to 5.75% of purchase payments on the contract as well as service/trail commissions of up to 1.00% based on annual total contract value for as long as the contract remains in 70 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS effect. We also may pay a temporary additional sales commission of up to 1.00% of purchase payments for a period of time we select. These commissions do not change depending on which subaccounts you choose to allocate your purchase payments. From time to time and in accordance with applicable laws and regulations, we may also pay or provide the selling firm with various cash and non-cash promotional incentives including, but not limited to bonuses, short-term sales incentive payments, marketing allowances, costs associated with sales conferences and educational seminars and sales recognition awards. A portion of the payments made to the selling firm may be passed on to its financial advisors in accordance with its internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your financial advisor for further information about what your financial advisor and the selling firm for which he or she works may receive in connection with your contract. We pay the commissions and other compensation described above from our assets. Our assets include: - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- The Funds"); - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The Funds"); and - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part of all of the commissions and other compensation described above indirectly through: - fees and expenses we collect from contract owners, including surrender charges; and - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. ADDITIONAL INFORMATION INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE To the extent and only to the extent that any statement in a document incorporated by reference into this prospectus is modified or superseded by a statement in this prospectus or in a later-filed document, such statement is hereby deemed so modified or superseded and not part of this prospectus. The Annual Report on Form 10-K of RiverSource Life Insurance Company for the year ended Dec. 31, 2008 that we previously filed with the SEC under the Securities Exchange Act of 1934 (1934 Act) is incorporated by reference into this prospectus. To access these documents, see "SEC Filings" under "Investors Relations" on our website at www.ameriprise.com. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 71 RiverSource Life will furnish you without charge a copy of any or all of the documents incorporated by reference into this prospectus, including any exhibits to such documents which have been specifically incorporated by reference. We will do so upon receipt of your written or oral request. You can contact RiverSource Life at the telephone number and address listed on the first page of this prospectus. AVAILABLE INFORMATION This prospectus is part of a registration statement we file with the SEC. Additional information on RiverSource Life and on this offering is available in the registration statement and other materials we file. You can obtain copies of these materials at the SEC's Public Reference Room at 100 F Street, N.E., N.W., Washington, D.C. 20549. You can obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. This prospectus, other information about the contract and other information incorporated by reference are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). INDEMNIFICATION Insofar as indemnification for liabilities arising under the Securities Act of 1933 (1933 Act) may be permitted to directors and officers or persons controlling RiverSource Life pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the 1933 Act and is therefore unenforceable. 72 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS APPENDICES The purpose of these appendices is to illustrate the operation of various contract features and riders and to provide condensed financial history disclosure regarding the subaccounts. In order to demonstrate these contract features and riders, an example may show hypothetical contract values. These contract values do not represent past or future performance. Actual contract values may be more or less than those shown and will depend on a number of factors, including but not limited to the investment experience of the subaccounts, GPAs, Special DCA account, fixed account and the fees and charges that apply to your contract. The examples of the optional riders and death benefits in Appendix C include partial surrenders to illustrate the effect of partial surrenders on the particular benefit. These examples are intended to show how the optional riders and death benefits operate, and do not take into account whether a particular optional rider or death benefit is part of a qualified annuity. Qualified annuities are subject to RMDs at certain ages (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") which may require you to take partial surrenders from the contract. If you are considering the addition of certain death benefits and/or optional riders to a qualified annuity, you should consult your tax advisor prior to making a purchase for an explanation of the potential tax implication to you. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 73 APPENDIX A: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA) As the examples below demonstrate, the application of an MVA may result in either a gain or a loss of principal. We refer to all of the transactions described below as "early surrenders." GENERAL EXAMPLES ASSUMPTIONS: - You purchase a contract and allocate part of your purchase payment to the ten- year GPA; and - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - after three years, you decide to make a surrender from your GPA. In other words, there are seven years left in your guarantee period. Remember that the MVA depends partly on the interest rate of a new GPA for the same number of years as the Guarantee Period remaining on your GPA. In this case, that is seven years. EXAMPLE 1: Remember that your GPA is earning 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. We add 0.10% to the 3.5% rate to get 3.6%. Your GPA's 3.0% rate is less than the 3.6% rate so the MVA will be negative. EXAMPLE 2: Remember again that your GPA is earning 3.0%, and assume that new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. We add 0.10% to the 2.5% rate to get 2.6%. In this example, since your GPA's 3.0% rate is greater than the 2.6% rate, the MVA will be positive. To determine that adjustment precisely, you will have to use the formula described below. SAMPLE MVA CALCULATIONS The precise MVA formula we apply is as follows: 1 + II EARLY WITHDRAWAL AMOUNT X [( --------------- ) (N/12) - 1] = MVA 1 + J + .001
Where i = rate earned in the GPA from which amounts are being transferred or surrendered. j = current rate for a new Guaranteed Period equal to the remaining term in the current Guarantee Period (rounded up to the next year). n = number of months remaining in the current Guarantee Period (rounded up to the next month) EXAMPLES -- MVA Using assumptions similar to those we used in the examples above: - You purchase a contract and allocate part of your purchase payment to the ten- year GPA; and - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - after three years, you decide to make a $1,000 surrender from your GPA. In other words, there are seven years left in your guarantee period. EXAMPLE 1: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. Using the formula above, we determine the MVA as follows: 1.030 --------------- $1,000 X [( 1 + .035 + .00- ) (84/12) - 1] = -$39.84 1)
In this example, the MVA is a negative $39.84. EXAMPLE 2: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. Using the formula above, we determine the MVA as follows: 1.030 --------------- $1,000 X [( 1 + .025 + .00- ) (84/12) - 1] = $27.61 1)
In this example, the MVA is a positive $27.61. We do not apply MVAs to the amounts we deduct for surrender charges, so we would deduct the surrender charge from your early surrender after we applied the MVA. Also note that when you request an early surrender, we surrender an amount from 74 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS your GPA that will give you the net amount you requested after we apply the MVA and any applicable surrender charge, unless you request otherwise. The current interest rate we offer on the GPA will change periodically at our discretion. It is the rate we are then paying on purchase payments, renewals and transfers paid under this class of contracts for Guarantee Period durations equaling the remaining Guarantee Period of the GPA to which the formula is being applied. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 75 APPENDIX B: EXAMPLE -- SURRENDER CHARGES FULL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA Advantage Plus contract with a ten-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you surrender the contract for its total value during the fourth contract year. The surrender charge percentage in the fourth year after a purchase payment is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: --------------------------------------------------------------------------------
CONTRACT WITH GAIN CONTRACT WITH LOSS Contract Value at time of full $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's contract 11,500.00 8,500.00 value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered 0.00 8,500.00 Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% = the premium ratio STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00 STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP 6. We calculate the Net Surrender Value: 120,000.00 80,000.00 Contract Value Surrendered: (7,000.00) (6,405.00) Contract Charge (assessed upon full (30.00) (30.00) surrender): NET FULL SURRENDER PROCEEDS: 112,970.00 73,565.00
76 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS PARTIAL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA Advantage Plus contract with a ten-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you request a gross partial surrender of $50,000 during the fourth contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: --------------------------------------------------------------------------------
CONTRACT WITH GAIN CONTRACT WITH LOSS Contract Value at time of partial $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's 11,500.00 8,500.00 contract value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered 0.00 8,500.00 Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP 6. We calculate the Net Surrender Value: Contract Value Surrendered: 50,000.00 50,000.00 SURRENDER CHARGE: (2,100.00) (3,717.59) NET PARTIAL SURRENDER PROCEEDS: 47,900.00 46,282.41
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 77 FULL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA Select Plus contract with a three-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you surrender the contract for its total value during the second contract year. The surrender charge percentage in the year after a purchase payment is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: --------------------------------------------------------------------------------
CONTRACT WITH GAIN CONTRACT WITH LOSS Contract Value at time of full $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the Contract: 20,000.00 0.00 10% of the prior anniversary's 11,500.00 8,500.00 contract value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA and Amount Free that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered 0.00 8,500.00 Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00 STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP 6. We calculate the Net Surrender 120,000.00 80,000.00 Value: Contract Value Surrendered: (7,000.00) (6,405.00) Contract Charge (assessed upon full (30.00) (30.00) surrender): NET FULL SURRENDER PROCEEDS: 112,970.00 73,565.00
78 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS PARTIAL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA Select Plus contract with a three-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you request a gross partial surrender of $50,000 during the second contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: --------------------------------------------------------------------------------
CONTRACT WITH GAIN CONTRACT WITH LOSS Contract Value at time of partial $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's 11,500.00 8,500.00 contract value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the Amount Free that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered 0.00 8,500.00 Free (PPF): STEP 3. We calculate the Premium Ratio (PR): PR = [WD - TFA] / [CV - TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP - PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP 6. We calculate the Net Surrender Value: Contract Value Surrendered: 50,000.00 50,000.00 SURRENDER CHARGE: (2,100.00) (3,717.00) NET PARTIAL SURRENDER PROCEEDS: 47,900.00 46,282.41
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 79 APPENDIX C: EXAMPLE -- OPTIONAL BENEFITS EXAMPLE -- ACCUMULATION BENEFIT The following example shows how the Accumulation Benefit rider works based on hypothetical values. It is not intended to depict investment performance of the contract. The example assumes: - You purchase the contract (with the Accumulation Benefit rider) with a payment of $100,000. No purchase payment credit applies. - You make no additional purchase payments. - You do not exercise the Elective Step-up option. - The Accumulation Benefit rider fee is 0.60%.
END OF CONTRACT ASSUMED NET PARTIAL SURRENDER ADJUSTED ACCUMULATION YEAR RATE OF RETURN (BEGINNING OF YEAR) PARTIAL SURRENDER MCAV BENEFIT AMOUNT CONTRACT VALUE 1 12% 0 0 100,000 0 111,328 2 15% 0 0 102,422 0 127,259 3 3% 0 0 104,861 0 130,290 4 -8% 0 0 104,861 0 119,148 5 -15% 0 0 104,861 0 100,647 6 20% 2,000 2,084 102,778 0 117,666 7 15% 0 0 108,252 0 134,504 8 -10% 0 0 108,252 0 120,327 9 -20% 5,000 4,498 103,754 0 91,639 10 -12% 0 0 103,754 23,734 103,754
EXAMPLE -- WITHDRAWAL BENEFIT The following example shows how the Withdrawal Benefit rider works based on hypothetical values. It is not intended to depict investment performance of the contract. The example assumes: - You purchase the RAVA Select contract (with the Withdrawal Benefit rider) with a payment of $100,000. No purchase payment credit applies. - You make no additional purchase payments. - The contract earns a net return of -5%. - The Withdrawal Benefit rider fee is 0.60%. 80 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - You take withdrawals equal to the GBP (which is 7% of the GBA or $7,000) at the beginning of each contract year until the RBA is exhausted.
CONTRACT CONTRACT VALUE WITHDRAWAL CONTRACT VALUE YEAR (BEGINNING OF YEAR) (BEGINNING OF YEAR) (END OF YEAR) GBA RBA 1 $100,000 $7,000 $87,820 $100,000 $93,000 2 87,820 7,000 76,318 100,000 86,000 3 76,318 7,000 65,457 100,000 79,000 4 65,457 7,000 55,201 100,000 72,000 5 55,201 7,000 45,516 100,000 65,000 6 45,516 7,000 36,371 100,000 58,000 7 36,371 7,000 27,735 100,000 51,000 8 27,735 7,000 19,550 100,000 44,000 9 19,550 7,000 11,821 100,000 37,000 10 11,821 7,000 4,523 100,000 30,000 11 4,523 7,000 0 100,000 23,000 12 0 7,000 0 100,000 16,000 13 0 7,000 0 100,000 9,000 14 0 7,000 0 100,000 2,000 15 0 2,000 0 100,000 0
EXAMPLE -- ROPP DEATH BENEFIT - You purchase the contract (with the ROPP rider) with a payment of $20,000. - The contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 x $20,000 ---------------- = -1,667 $18,000 ------- for a death benefit of: $18,333
EXAMPLE -- MAV DEATH BENEFIT - You purchase the contract (with the MAV rider) with a payment of $20,000. - On the first contract anniversary the contract value grows to $24,000. - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $24,000 ---------------- = -1,636 $22,000 ------- for a death benefit of: $22,364
EXAMPLE -- 5-YEAR MAV DEATH BENEFIT - You purchase the contract (with the 5-Year MAV rider) with a payment of $20,000. - On the fifth contract anniversary the contract value grows to $30,000. - During the sixth contract year the contract value falls to $25,000, at which point you take a $1,500 partial surrender, leaving a contract value of $23,500. RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 81 WE CALCULATE THE DEATH BENEFIT AS FOLLOWS: The maximum 5-year anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your 5-year contract anniversary contract values: $30,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $30,000 ---------------- = -1,800 $25,000 ------- for a death benefit of: $28,200
EXAMPLE -- EEB DEATH BENEFIT - You purchase the contract with a payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEB. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so the EEB does not provide any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 -- $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - -------------------- = $57,619 $105,000 plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The reduction in contract value has no effect. - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000
82 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed) $250,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000
- During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,500 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 -------- Total death benefit of: $308,700
EXAMPLE -- EEP DEATH BENEFIT - You purchase the contract with an exchange purchase payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEP. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit amount, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so neither the EEP Part I nor Part II provides any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. You have not reached the second contract anniversary so the EEP Part II does not provide any additional benefit at this time. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit amount minus purchase payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $100,000 = +10,000 -------- Total death benefit of: $124,000
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 83 - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 -- $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): ($50,000 x $110,000) $110,000 - -------------------- = $57,619 $105,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $55,000 = +5,500 ------- Total death benefit of: $64,167
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $64,167. The reduction in contract value has no effect. - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. Because we are beyond the fourth contract anniversary the EEP also reaches its maximum of 20%. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEP Part I (40% of earnings at death) .40 x (2.50 x $55,000) = +55,000 plus the EEP Part II which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $266,000
- During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on either the EEP Part I or EEP Part II. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed): $250,000 plus the EEP Part I (40% of earnings at death) .40 x (2.50 x $55,000) = +55,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and Not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $316,000
- During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEP Part I changes but the value of the EEP Part II remains constant. The death benefit equals: MAV death benefit amount (contract value): $250,500 the EEP Part I which equals 40% of earnings at death (the MAV death benefit minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue And not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $319,700
84 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS APPENDIX D: CONDENSED FINANCIAL INFORMATION (Unaudited) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each price level is noted in parentheses.
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2000 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.26 $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.72 $1.26 $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 495 371 489 1,554 110 85 4 6 -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.63 $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.86 $1.63 $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 71 208 183 141 107 284 180 3 -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.08 $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.44 $1.08 $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 149 54 158 140 132 66 3 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.14 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.14 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 73 115 1,114 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.58 $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.58 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,794 1,479 105 5 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.86 $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $0.48 $0.86 $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 -- -- Number of accumulation units outstanding at end of period (000 omitted) 351 275 418 532 249 96 3 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 49 61 653 144 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.81 $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 452 1,081 1,374 1,186 726 969 310 136 -- -- ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (08/13/2001) Accumulation unit value at beginning of period $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.24 $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,352 3,600 3,592 2,607 984 472 606 210 -- -- *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.70 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.70 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 -- -- Number of accumulation units outstanding at end of period (000 omitted) 286 389 365 314 127 5 254 1 -- -- ---------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,327 1,710 -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.20 $1.00 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.20 $1.00 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 72 187 2,939 618 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.51 $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.10 $1.51 $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 483 848 1,060 1,104 1,064 673 483 146 -- -- ----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 85
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 24 21 18 5 54 8 8 6 5 -- ---------------------------------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $1.09 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.09 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 402 788 585 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.72 $1.20 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,506 5,466 2,834 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.27 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.65 $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 730 772 2,194 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 506 677 1,600 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,025 2,116 2,567 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.84 $1.62 $1.32 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.84 $1.62 $1.32 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 408 500 669 661 76 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.21 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.21 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,518 7,443 6,582 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.42 $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 $1.00 -- -- Accumulation unit value at end of period $0.82 $1.42 $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 963 1,126 1,624 1,338 994 432 233 132 -- -- ---------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $2.39 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.43 $2.39 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,823 3,786 4,011 2,702 1,034 510 325 132 -- -- ---------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.93 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 $1.00 -- -- Accumulation unit value at end of period $1.08 $1.93 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 -- -- Number of accumulation units outstanding at end of period (000 omitted) 771 890 1,130 728 573 205 324 7 -- -- ---------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 $1.00 Accumulation unit value at end of period $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 262 688 836 667 487 349 205 211 148 4 ---------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 $1.00 Accumulation unit value at end of period $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 465 576 738 593 414 242 282 150 9 2 ---------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.57 $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.98 $1.57 $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 670 761 865 716 533 667 130 -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 $1.00 Accumulation unit value at end of period $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 1,060 2,008 2,339 1,930 834 639 450 200 15 8 ----------------------------------------------------------------------------------------------------------------------------------
86 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,128 1,678 2,499 3,019 1,522 735 694 943 577 170 ---------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,240 5,448 -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.40 $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.87 $1.40 $1.27 $1.04 $0.94 $0.83 $0.65 $0.73 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 277 1,072 1,291 1,238 1,236 2,397 636 253 57 8 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.60 $1.02 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 127 65 -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 260 317 481 640 522 874 785 913 533 -- ---------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 92 130 243 558 576 622 485 548 352 -- ---------------------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (02/04/2004) Accumulation unit value at beginning of period $1.28 $1.24 $1.12 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.99 $1.28 $1.24 $1.12 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 257 226 264 291 92 -- -- -- -- -- *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ---------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $1.41 $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 821 765 1,065 588 211 139 139 138 -- -- ---------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.05 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.57 $1.07 $1.05 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,971 2,116 1,957 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.62 $1.53 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.96 $1.62 $1.53 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 777 1,099 1,309 756 158 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.41 $1.44 $1.26 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.87 $1.41 $1.44 $1.26 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 646 676 773 643 432 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.27 $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.08 $1.27 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,498 9,223 6,331 3,173 403 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,628 4,555 4,105 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.11 $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.92 $1.11 $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 111 67 195 218 67 170 145 129 -- -- ----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 87
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.78 $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.99 $1.78 $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 91 69 164 145 194 207 881 418 -- -- ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.60 $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 221 370 429 374 375 431 525 1,092 1,330 183 ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.70 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 547 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.13 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,641 3,570 3,666 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.37 $1.30 $1.13 $1.13 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.86 $1.37 $1.30 $1.13 $1.13 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 74 115 77 235 182 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) Accumulation unit value at beginning of period $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.24 $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,353 3,487 2,495 2,068 860 982 627 411 -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (09/15/1999) Accumulation unit value at beginning of period $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 $1.00 Accumulation unit value at end of period $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 602 372 459 623 257 221 120 296 145 10 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 $1.00 Accumulation unit value at end of period $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 10,988 11,779 8,286 4,504 2,098 447 3,911 5,658 6,615 2,266 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were 0.35% and 0.36%, respectively. ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 8,140 9,540 7,272 3,619 2,145 1,691 762 985 410 47 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 $1.00 Accumulation unit value at end of period $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 8,565 9,289 9,434 5,165 3,041 1,239 1,262 281 218 23 ----------------------------------------------------------------------------------------------------------------------------------
88 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 $1.00 Accumulation unit value at end of period $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,397 1,682 2,453 3,121 1,484 172 202 291 266 872 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 2,861 3,115 2,645 1,377 741 714 251 249 4 3 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.06 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.13 $1.13 $1.06 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,307 2,713 2,959 1,455 5,004 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 713 1,605 1,925 2,397 2,886 4,230 1,480 1,549 1,186 48 ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.17 $1.15 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.95 $1.17 $1.15 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,233 2,599 2,358 493 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 -- -- Number of accumulation units outstanding at end of period (000 omitted) 242 268 450 655 523 578 328 38 -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.50 $1.37 $1.20 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.82 $1.50 $1.37 $1.20 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,658 1,406 2,575 115 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 $1.00 -- Accumulation unit value at end of period $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 1,447 1,022 1,170 2,054 1,958 1,381 973 770 285 -- ---------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 $1.00 Accumulation unit value at end of period $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,394 817 493 688 870 1,097 1,275 592 1 10 ---------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 $1.00 Accumulation unit value at end of period $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,601 3,768 6,049 6,193 2,153 1,664 1,064 1,285 1,762 401 ---------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.34 $1.35 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.34 $1.35 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 67 67 184 92 65 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 113 214 333 514 779 660 393 378 286 28 ---------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) Accumulation unit value at beginning of period $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 $1.00 -- Accumulation unit value at end of period $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 -- Number of accumulation units outstanding at end of period (000 omitted) 2,437 1,993 2,144 1,491 475 115 277 3 1 -- ---------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) Accumulation unit value at beginning of period $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 1,080 1,307 1,343 1,252 848 143 488 65 81 133 ----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 89
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.38 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.34 $1.38 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,700 3,639 4,892 3,642 641 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.62 $1.12 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,961 1,463 1,473 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.21 $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.64 $1.21 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 270 140 1,068 -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 $1.00 Accumulation unit value at end of period $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 2,433 2,932 3,471 2,814 1,701 1,136 1,484 769 599 112 ---------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 3,272 3,659 3,852 2,709 1,415 1,250 847 820 990 125 ---------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.46 $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $0.87 $1.46 $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 182 331 421 467 408 445 314 136 -- -- ---------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $0.79 $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 258 231 84 35 10 10 6 2 -- -- ----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.25 $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.71 $1.25 $1.12 $1.07 $0.99 $0.94 $0.73 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,677 90,475 109,952 134,591 39,117 20,015 11,313 1,710 -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.61 $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.61 $1.47 $1.27 $1.17 $1.02 $0.76 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,534 23,253 25,868 24,349 20,043 10,924 6,981 1,459 -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.06 $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.43 $1.06 $1.38 $1.19 $1.14 $1.05 $0.82 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,625 9,208 12,088 10,621 10,625 8,724 5,572 1,081 -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,014 5,881 33,923 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.57 $1.39 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.57 $1.39 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 99,290 48,018 1,744 127 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.85 $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $0.47 $0.85 $0.80 $0.73 $0.72 $0.69 $0.48 $0.91 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,001 21,716 25,440 31,926 14,454 7,882 3,769 490 -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,750 4,111 14,120 2,021 -- -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------------------
90 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.80 $1.35 $1.30 $1.12 $1.08 $0.98 $0.74 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 84,420 116,725 135,093 149,316 125,010 82,114 43,189 5,550 -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (08/13/2001) Accumulation unit value at beginning of period $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.23 $2.64 $2.52 $1.88 $1.63 $1.31 $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 202,780 217,241 203,016 153,107 70,504 34,604 12,313 805 -- -- *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.68 $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 $1.00 -- -- Accumulation unit value at end of period $0.92 $1.68 $1.44 $1.16 $1.03 $0.91 $0.73 $0.93 -- -- Number of accumulation units outstanding at end of period (000 omitted) 32,736 42,202 45,349 43,612 34,180 21,555 11,378 1,950 -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 54,402 56,815 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,809 13,321 78,916 10,074 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.49 $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.08 $1.49 $1.59 $1.35 $1.30 $1.15 $0.90 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 82,749 118,591 136,167 142,660 110,681 74,984 42,497 7,356 -- -- ----------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.78 $1.14 $1.12 $1.04 $0.99 $0.92 $0.78 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 18,431 21,893 24,975 23,850 20,551 15,315 9,520 4,490 1,283 -- ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $1.08 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.08 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,527 41,917 48,099 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.72 $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 310,527 204,077 121,798 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.27 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.65 $1.27 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 41,006 32,112 59,299 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.74 $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,400 17,045 51,380 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 119,741 111,086 103,830 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.83 $1.61 $1.32 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.06 $1.83 $1.61 $1.32 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,645 16,521 19,055 15,273 4,245 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 398,515 294,643 244,121 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.40 $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 $1.00 -- -- Accumulation unit value at end of period $0.81 $1.40 $1.26 $1.13 $1.06 $1.01 $0.82 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,690 148,743 173,861 189,109 187,351 119,284 48,686 6,363 -- -- -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 91
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $2.36 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.41 $2.36 $2.06 $1.85 $1.58 $1.27 $0.93 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 236,346 264,423 290,678 260,492 188,565 109,647 50,458 6,903 -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.91 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 $1.00 -- -- Accumulation unit value at end of period $1.06 $1.91 $1.64 $1.40 $1.19 $1.06 $0.75 $0.95 -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,513 66,434 74,339 70,878 66,935 31,322 13,157 2,147 -- -- ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 $1.00 Accumulation unit value at end of period $1.45 $2.53 $3.23 $2.70 $2.39 $1.83 $1.36 $1.34 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 62,873 93,100 128,540 139,618 120,456 87,330 59,317 24,477 6,879 885 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 $1.00 Accumulation unit value at end of period $1.58 $2.38 $2.45 $2.11 $1.96 $1.59 $1.21 $1.35 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 52,033 66,946 78,886 78,073 59,293 43,978 29,743 10,800 2,846 586 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.55 $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 $1.00 -- -- Accumulation unit value at end of period $0.97 $1.55 $1.51 $1.29 $1.17 $1.05 $0.85 $0.97 -- -- Number of accumulation units outstanding at end of period (000 omitted) 68,255 94,998 90,391 69,986 45,710 26,370 10,942 942 -- -- ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $1.71 $2.73 $2.67 $2.31 $2.07 $1.65 $1.30 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 97,291 139,637 163,687 174,918 115,616 83,015 56,079 23,748 7,622 1,634 ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.71 $1.14 $1.16 $1.04 $0.98 $0.86 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 131,282 187,585 231,223 248,935 128,074 83,166 71,820 60,343 42,626 8,981 ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 238,472 154,650 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.86 $1.37 $1.25 $1.03 $0.93 $0.82 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 49,466 69,884 86,802 101,054 90,221 62,349 29,532 15,860 7,958 1,981 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.60 $1.02 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,524 1,080 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 $1.00 -- Accumulation unit value at end of period $0.48 $0.77 $0.70 $0.66 $0.64 $0.59 $0.48 $0.68 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 63,755 80,158 100,533 117,493 108,239 91,666 69,576 50,212 19,521 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.61 $1.01 $0.99 $0.89 $0.85 $0.81 $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 32,039 42,261 51,188 62,995 77,406 74,690 59,272 34,072 12,308 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (02/04/2004) Accumulation unit value at beginning of period $1.27 $1.23 $1.11 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.98 $1.27 $1.23 $1.11 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,798 35,070 36,759 33,809 12,116 -- -- -- -- -- *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $1.39 $2.25 $1.78 $1.37 $1.18 $0.92 $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 67,989 78,212 71,164 55,870 28,362 18,051 10,543 2,997 -- -- -----------------------------------------------------------------------------------------------------------------------------------
92 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.57 $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 78,811 64,614 57,067 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.60 $1.52 $1.31 $1.16 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.95 $1.60 $1.52 $1.31 $1.16 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 36,705 48,173 51,514 33,811 11,540 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.40 $1.43 $1.26 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.86 $1.40 $1.43 $1.26 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,205 34,265 34,462 18,592 7,652 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.26 $1.16 $1.09 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.26 $1.16 $1.09 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 569,070 536,032 339,587 150,945 22,945 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 228,912 161,214 154,199 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.10 $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.90 $1.10 $1.11 $1.09 $0.97 $0.91 $0.78 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,248 19,770 25,848 27,299 21,518 18,023 11,416 2,137 -- -- ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.75 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.98 $1.75 $1.63 $1.29 $1.15 $1.00 $0.78 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,502 29,411 34,316 37,980 40,598 38,012 20,773 2,460 -- -- ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.59 $1.10 $1.06 $1.02 $0.91 $0.78 $0.59 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 25,511 33,551 42,808 49,747 57,095 67,224 72,033 74,819 49,764 5,084 ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,188 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,487 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,617 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.74 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,958 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,805 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.09 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.12 $1.09 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 183,635 117,605 123,150 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.36 $1.29 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.36 $1.29 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,409 9,188 9,786 10,247 4,730 -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 93
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) Accumulation unit value at beginning of period $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.22 $1.80 $1.91 $1.60 $1.52 $1.28 $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 156,845 148,793 126,637 127,559 90,541 67,609 43,199 6,885 -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.86 $1.24 $1.23 $1.08 $1.05 $0.97 $0.81 $0.94 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 61,707 86,628 89,309 92,705 84,704 79,035 64,273 37,760 28,348 5,220 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.22 $1.20 $1.16 $1.12 $1.10 $1.10 $1.10 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 399,214 286,121 258,492 193,996 187,100 203,753 255,251 243,870 171,785 65,522 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were 0.15% and 0.15%, respectively. ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.30 $1.40 $1.34 $1.30 $1.28 $1.23 $1.19 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 610,707 599,680 511,100 332,677 221,377 188,939 154,530 83,968 30,783 7,186 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.15 $1.94 $1.81 $1.52 $1.35 $1.15 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 530,216 560,416 585,144 408,559 255,776 134,486 86,442 43,328 12,124 3,149 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.56 $0.98 $0.96 $0.84 $0.79 $0.75 $0.59 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 301,682 383,078 450,207 263,828 130,790 69,981 52,124 26,327 24,003 5,333 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 $1.00 Accumulation unit value at end of period $1.52 $1.54 $1.44 $1.36 $1.44 $1.32 $1.18 $1.03 $1.03 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 201,728 204,316 169,931 130,135 82,347 51,936 31,133 16,572 8,968 1,552 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.12 $1.13 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 171,393 147,400 161,490 91,038 2,274 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.03 $1.39 $1.37 $1.25 $1.21 $1.09 $0.88 $0.95 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 147,297 218,538 251,768 262,154 242,254 177,150 93,845 58,348 31,722 7,774 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.16 $1.14 $1.07 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.94 $1.16 $1.14 $1.07 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 128,653 116,516 109,316 29,477 1,052 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 $1.00 -- -- Accumulation unit value at end of period $0.75 $1.37 $1.22 $1.23 $1.12 $1.04 $0.85 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,730 50,337 62,826 47,283 53,376 42,780 16,388 2,489 -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.49 $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.49 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,989 71,709 101,239 6,605 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $0.65 $1.04 $1.00 $0.87 $0.84 $0.77 $0.61 $0.79 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 100,420 127,010 139,008 154,949 144,039 103,587 64,771 35,957 9,812 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.27 $1.31 $1.25 $1.22 $1.21 $1.21 $1.20 $1.14 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 125,698 120,018 125,729 145,087 160,725 155,718 124,866 50,510 16,258 11,135 -----------------------------------------------------------------------------------------------------------------------------------
94 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 $1.00 Accumulation unit value at end of period $0.41 $0.75 $0.73 $0.66 $0.62 $0.57 $0.48 $0.65 $0.95 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 180,650 283,769 326,108 323,849 191,140 192,314 135,693 129,186 97,754 16,891 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.33 $1.34 $1.14 $1.10 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.33 $1.34 $1.14 $1.10 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,696 7,988 7,937 6,232 3,498 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.03 $1.68 $1.77 $1.60 $1.53 $1.30 $0.89 $1.08 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 26,621 38,095 49,721 59,243 61,563 44,627 29,202 22,792 14,830 2,970 ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) Accumulation unit value at beginning of period $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $1.29 $2.81 $2.05 $1.54 $1.16 $0.94 $0.68 $0.72 $0.74 -- Number of accumulation units outstanding at end of period (000 omitted) 111,551 89,546 89,672 75,520 22,549 8,256 4,750 1,789 906 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) Accumulation unit value at beginning of period $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.74 $1.26 $1.12 $0.91 $0.81 $0.69 $0.55 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 55,412 75,421 80,961 77,787 51,446 23,614 20,012 15,821 13,967 2,575 ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.33 $1.37 $1.19 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.33 $1.37 $1.19 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 227,595 224,730 258,223 203,272 36,974 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.23 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.61 $1.11 $1.23 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 88,969 51,109 51,499 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.20 $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.64 $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,546 14,940 37,273 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 $1.00 Accumulation unit value at end of period $1.42 $2.62 $2.27 $1.67 $1.38 $1.07 $0.72 $0.85 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 142,736 164,570 186,862 170,230 104,567 66,022 43,554 27,818 18,245 1,234 ----------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.18 $1.98 $1.89 $1.77 $1.60 $1.36 $0.96 $1.16 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 176,483 212,646 235,960 241,623 184,961 129,824 78,311 40,791 23,813 2,476 ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.44 $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $0.86 $1.44 $1.36 $1.22 $1.14 $0.97 $0.72 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,799 30,772 36,471 41,049 43,145 38,865 25,397 3,701 -- -- ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.34 $1.18 $0.97 $0.92 $0.81 $0.58 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 29,488 35,670 25,726 19,618 22,185 19,289 9,992 2,060 -- -- -----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.23 $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.70 $1.23 $1.11 $1.06 $0.98 $0.93 $0.73 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 38,700 46,783 56,007 64,800 21,785 12,215 7,624 1,711 -- -- -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 95
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.59 $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.83 $1.59 $1.45 $1.26 $1.16 $1.02 $0.76 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,784 13,998 14,692 13,500 12,074 7,348 4,808 1,224 -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.05 $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.42 $1.05 $1.36 $1.18 $1.13 $1.05 $0.82 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,723 5,805 7,305 6,396 6,649 5,460 3,709 901 -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.13 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,240 3,964 15,226 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.57 $1.38 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.92 $1.57 $1.38 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,711 23,729 1,198 107 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.84 $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 $1.00 -- -- Accumulation unit value at end of period $0.46 $0.84 $0.79 $0.72 $0.71 $0.69 $0.48 $0.91 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,853 10,072 12,094 14,960 8,076 5,212 2,845 911 -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.35 $1.14 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.70 $1.35 $1.14 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,593 2,415 5,609 801 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.34 $1.29 $1.11 $1.07 $0.97 $0.74 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,105 74,246 84,552 91,924 75,935 54,358 29,770 4,363 -- -- ----------------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (08/13/2001) Accumulation unit value at beginning of period $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 $1.00 -- -- Accumulation unit value at end of period $1.21 $2.61 $2.49 $1.86 $1.61 $1.31 $0.92 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 122,930 135,634 127,479 94,909 44,705 24,114 9,270 790 -- -- *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.66 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 $1.00 -- -- Accumulation unit value at end of period $0.91 $1.66 $1.42 $1.15 $1.03 $0.90 $0.73 $0.93 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,242 25,059 26,700 27,136 22,031 15,471 8,200 1,927 -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.67 $0.90 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 30,504 28,466 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.19 $0.99 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.69 $1.19 $0.99 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,931 8,170 35,411 4,856 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.47 $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.07 $1.47 $1.57 $1.34 $1.29 $1.14 $0.89 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 56,747 81,683 93,343 95,710 71,318 50,607 30,523 7,298 -- -- ----------------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 $1.00 -- Accumulation unit value at end of period $0.76 $1.12 $1.10 $1.02 $0.98 $0.91 $0.77 $0.89 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 12,240 17,034 19,334 19,301 17,682 14,100 9,832 6,090 1,693 -- ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $1.08 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.80 $1.08 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,527 26,868 30,821 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.02 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.71 $1.19 $1.02 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 176,791 113,001 66,352 -- -- -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------------------
96 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.26 $1.07 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.65 $1.26 $1.07 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,849 22,702 32,712 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.74 $1.13 $0.97 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 22,011 12,631 26,224 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.04 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.75 $1.04 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 79,727 71,987 59,159 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.82 $1.60 $1.31 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.05 $1.82 $1.60 $1.31 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,283 11,475 12,674 9,815 2,086 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.03 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.20 $1.03 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 237,020 166,815 127,364 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.38 $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 $1.00 -- -- Accumulation unit value at end of period $0.80 $1.38 $1.25 $1.12 $1.05 $1.00 $0.82 $1.00 -- -- Number of accumulation units outstanding at end of period (000 omitted) 72,387 96,482 112,864 121,317 119,521 81,919 36,320 8,177 -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $2.33 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.39 $2.33 $2.04 $1.83 $1.57 $1.27 $0.93 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 136,525 156,364 174,833 157,678 117,171 72,124 35,541 6,689 -- -- ----------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.88 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 $1.00 -- -- Accumulation unit value at end of period $1.05 $1.88 $1.62 $1.39 $1.18 $1.05 $0.74 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 37,943 48,192 52,627 48,642 42,672 21,405 10,123 2,157 -- -- ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 $1.00 Accumulation unit value at end of period $1.42 $2.49 $3.18 $2.66 $2.37 $1.81 $1.35 $1.33 $1.25 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 39,491 59,503 81,589 88,911 80,587 63,047 44,591 19,803 6,181 683 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 $1.00 Accumulation unit value at end of period $1.55 $2.34 $2.42 $2.09 $1.94 $1.58 $1.21 $1.34 $1.19 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 36,256 46,935 55,078 55,521 44,541 34,639 23,553 9,584 2,897 590 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.53 $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.96 $1.53 $1.50 $1.28 $1.17 $1.04 $0.84 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 47,292 65,658 63,662 50,166 33,241 21,294 9,151 1,114 -- -- ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 $1.00 Accumulation unit value at end of period $1.68 $2.69 $2.63 $2.29 $2.05 $1.64 $1.29 $1.37 $1.23 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 65,990 96,413 112,452 117,932 84,473 65,106 47,539 24,711 10,265 2,023 ----------------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 $1.00 Accumulation unit value at end of period $0.70 $1.12 $1.15 $1.02 $0.97 $0.85 $0.67 $0.86 $0.99 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 87,685 126,734 160,736 168,697 108,140 80,350 75,489 71,185 55,239 9,951 ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 128,192 72,177 -- -- -- -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 97
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (09/15/1999) Accumulation unit value at beginning of period $1.35 $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 $1.00 Accumulation unit value at end of period $0.84 $1.35 $1.23 $1.01 $0.92 $0.81 $0.64 $0.72 $0.96 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 36,022 51,659 62,992 73,982 66,844 53,159 28,853 19,727 10,774 2,504 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.60 $1.02 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,203 741 -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 $1.00 -- Accumulation unit value at end of period $0.48 $0.76 $0.69 $0.65 $0.63 $0.59 $0.48 $0.67 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 44,360 58,819 73,300 84,506 78,223 74,564 62,663 51,051 21,973 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 $1.00 -- Accumulation unit value at end of period $0.60 $0.99 $0.98 $0.88 $0.84 $0.80 $0.61 $0.90 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 22,831 31,915 38,120 48,503 60,214 61,988 53,383 36,822 15,060 -- ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (02/04/2004) Accumulation unit value at beginning of period $1.26 $1.23 $1.11 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.97 $1.26 $1.23 $1.11 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,634 22,523 23,114 20,473 6,922 -- -- -- -- -- *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ----------------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 $1.00 -- -- Accumulation unit value at end of period $1.37 $2.22 $1.76 $1.36 $1.18 $0.91 $0.68 $0.89 -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,832 51,479 45,869 35,163 18,264 12,519 7,093 2,778 -- -- ----------------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.57 $1.07 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 41,079 30,611 26,517 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.59 $1.51 $1.30 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.94 $1.59 $1.51 $1.30 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 24,950 32,187 34,962 20,721 6,121 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.39 $1.42 $1.25 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.85 $1.39 $1.42 $1.25 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,861 23,107 22,606 12,037 4,085 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.25 $1.15 $1.08 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.06 $1.25 $1.15 $1.08 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 395,298 360,480 226,000 94,657 11,924 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.12 $1.04 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.12 $1.04 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 131,661 82,318 76,067 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.08 $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 $1.00 -- -- Accumulation unit value at end of period $0.89 $1.08 $1.10 $1.08 $0.96 $0.91 $0.77 $0.98 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,551 11,073 13,569 14,517 11,248 9,676 6,574 1,743 -- -- ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $1.73 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 $1.00 -- -- Accumulation unit value at end of period $0.96 $1.73 $1.61 $1.27 $1.15 $1.00 $0.78 $0.96 -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,381 18,697 21,524 23,458 24,819 24,880 15,138 2,180 -- -- ----------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 $1.00 Accumulation unit value at end of period $0.58 $1.08 $1.05 $1.00 $0.90 $0.77 $0.58 $0.85 $1.29 $1.36 Number of accumulation units outstanding at end of period (000 omitted) 20,077 26,405 34,609 42,680 51,579 63,075 73,930 87,722 68,407 7,245 -----------------------------------------------------------------------------------------------------------------------------------
98 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,115 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,436 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 15,034 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,299 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,524 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.08 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.68 $1.11 $1.08 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 98,708 55,721 57,963 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.28 $1.12 $1.12 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $1.34 $1.28 $1.12 $1.12 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,807 5,203 5,724 5,777 2,540 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (08/14/2001) Accumulation unit value at beginning of period $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.21 $1.78 $1.89 $1.59 $1.51 $1.27 $0.93 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 85,345 79,474 69,587 72,463 57,581 44,918 28,099 6,314 -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (09/15/1999) Accumulation unit value at beginning of period $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.85 $1.22 $1.21 $1.07 $1.04 $0.96 $0.80 $0.93 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 51,095 74,966 74,221 77,525 74,540 73,310 64,613 53,096 39,810 6,539 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (09/15/1999) Accumulation unit value at beginning of period $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.20 $1.18 $1.14 $1.10 $1.08 $1.09 $1.09 $1.09 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 290,095 247,870 211,744 147,452 148,915 178,580 228,237 265,455 203,922 87,424 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.04%) and (0.04%), respectively. ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 $1.00 Accumulation unit value at end of period $1.28 $1.38 $1.32 $1.28 $1.26 $1.22 $1.18 $1.13 $1.06 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 430,993 408,270 351,043 257,273 190,125 176,013 159,405 106,760 43,920 11,675 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (09/15/1999) Accumulation unit value at beginning of period $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 $1.00 Accumulation unit value at end of period $1.13 $1.91 $1.79 $1.51 $1.34 $1.14 $0.82 $1.02 $1.01 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 329,220 363,274 383,460 278,737 181,318 99,776 67,958 41,299 14,227 3,441 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 $1.00 Accumulation unit value at end of period $0.55 $0.96 $0.94 $0.82 $0.78 $0.75 $0.58 $0.76 $0.93 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 180,807 242,876 290,744 144,230 94,730 45,599 34,956 26,779 22,159 3,227 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 $1.00 Accumulation unit value at end of period $1.49 $1.51 $1.42 $1.34 $1.43 $1.31 $1.17 $1.03 $1.02 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 142,773 141,675 123,834 102,876 72,702 54,100 36,626 23,970 14,137 2,368 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 99
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.12 $1.05 $1.05 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.11 $1.12 $1.05 $1.05 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 113,444 88,734 95,224 51,906 1,504 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (09/15/1999) Accumulation unit value at beginning of period $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 $1.00 Accumulation unit value at end of period $1.01 $1.37 $1.35 $1.23 $1.20 $1.08 $0.87 $0.94 $0.91 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 125,862 186,775 221,767 237,711 236,566 197,358 122,784 88,813 52,655 10,137 ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.16 $1.14 $1.06 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.93 $1.16 $1.14 $1.06 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76,770 65,977 61,812 18,068 783 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 $1.00 -- -- Accumulation unit value at end of period $0.74 $1.35 $1.20 $1.22 $1.11 $1.03 $0.85 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,504 35,043 43,939 31,419 35,498 29,450 12,145 2,238 -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.48 $1.36 $1.19 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.81 $1.48 $1.36 $1.19 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 45,362 43,555 54,642 4,982 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (05/01/2000) Accumulation unit value at beginning of period $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 $1.00 -- Accumulation unit value at end of period $0.64 $1.03 $0.99 $0.86 $0.84 $0.77 $0.60 $0.79 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 73,795 92,416 104,302 122,070 117,372 91,398 65,011 40,575 14,084 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (09/15/1999) Accumulation unit value at beginning of period $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 $1.00 Accumulation unit value at end of period $1.24 $1.29 $1.24 $1.20 $1.20 $1.20 $1.19 $1.13 $1.08 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 108,778 104,637 108,222 121,249 130,386 135,202 116,147 56,966 24,654 12,796 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 $1.00 Accumulation unit value at end of period $0.41 $0.74 $0.72 $0.66 $0.61 $0.57 $0.47 $0.64 $0.94 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 116,110 186,447 216,237 212,229 135,373 147,485 118,986 130,764 106,410 13,813 ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.32 $1.34 $1.13 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.79 $1.32 $1.34 $1.13 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,900 4,152 4,707 3,594 2,030 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (09/15/1999) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 $1.00 Accumulation unit value at end of period $1.01 $1.65 $1.74 $1.58 $1.52 $1.29 $0.88 $1.07 $1.16 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 18,734 28,329 38,372 46,718 51,057 39,709 29,341 24,346 16,349 3,029 ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (05/01/2000) Accumulation unit value at beginning of period $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 $1.00 -- Accumulation unit value at end of period $1.27 $2.77 $2.02 $1.53 $1.15 $0.94 $0.67 $0.72 $0.74 -- Number of accumulation units outstanding at end of period (000 omitted) 61,879 50,491 51,867 44,244 16,315 6,501 3,888 1,542 693 -- ----------------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 $1.00 Accumulation unit value at end of period $0.73 $1.24 $1.11 $0.90 $0.80 $0.69 $0.54 $0.67 $0.95 $1.27 Number of accumulation units outstanding at end of period (000 omitted) 42,730 58,762 64,541 61,793 40,351 21,462 19,189 18,664 15,670 2,173 ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.32 $1.36 $1.18 $1.15 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.84 $1.32 $1.36 $1.18 $1.15 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 120,656 113,380 130,395 96,755 18,714 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.22 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.61 $1.11 $1.22 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 50,326 29,814 27,318 -- -- -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------------------
100 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 ----------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.20 $0.99 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.20 $0.99 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,266 9,199 17,529 -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 $1.00 Accumulation unit value at end of period $1.39 $2.58 $2.24 $1.65 $1.37 $1.06 $0.72 $0.84 $1.08 $1.51 Number of accumulation units outstanding at end of period (000 omitted) 88,899 108,613 122,718 114,381 79,981 56,466 42,309 30,297 21,844 1,343 ----------------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 $1.00 Accumulation unit value at end of period $1.16 $1.94 $1.86 $1.74 $1.58 $1.35 $0.95 $1.15 $1.05 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 117,299 145,262 164,257 169,886 140,320 108,046 72,853 46,456 29,881 2,723 ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $1.42 $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.42 $1.35 $1.21 $1.13 $0.97 $0.72 $0.99 -- -- Number of accumulation units outstanding at end of period (000 omitted) 13,585 18,131 21,391 25,313 25,983 24,999 17,130 3,747 -- -- ----------------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 $1.00 -- -- Accumulation unit value at end of period $0.76 $1.32 $1.17 $0.96 $0.91 $0.81 $0.58 $0.94 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,000 23,653 17,655 14,334 16,103 13,800 7,655 2,230 -- -- -----------------------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 $1.00 Accumulation unit value at end of period $0.74 $1.31 $1.18 $1.13 $1.05 $1.00 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 12,622 15,385 19,282 24,536 5,492 1,386 379 ----------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 $1.00 Accumulation unit value at end of period $0.88 $1.67 $1.53 $1.33 $1.23 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 2,199 3,003 3,321 2,836 2,429 1,198 552 ----------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 $1.00 Accumulation unit value at end of period $0.45 $1.12 $1.45 $1.26 $1.20 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,606 1,004 1,342 1,322 1,122 925 526 ----------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.80 $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 923 753 5,096 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.57 $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $0.92 $1.57 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,785 8,000 503 2 -- -- -- ----------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 $1.00 Accumulation unit value at end of period $0.54 $0.99 $0.93 $0.85 $0.84 $0.81 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 2,808 2,913 3,543 4,728 1,650 851 192 ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.35 $1.14 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $0.70 $1.35 $1.14 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 425 664 2,023 333 -- -- -- ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 $1.00 Accumulation unit value at end of period $0.85 $1.45 $1.40 $1.21 $1.16 $1.06 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 10,045 14,240 18,481 20,739 16,610 9,284 3,503 ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (02/13/2002) Accumulation unit value at beginning of period $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 $1.00 Accumulation unit value at end of period $1.25 $2.71 $2.59 $1.94 $1.68 $1.36 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 29,486 32,186 31,867 25,568 11,679 5,621 1,417 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). -----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 101
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 $1.00 Accumulation unit value at end of period $1.05 $1.92 $1.64 $1.33 $1.19 $1.05 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 5,162 6,589 7,826 7,538 4,969 2,812 944 ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.67 $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,412 9,862 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.18 $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $0.68 $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,188 2,203 12,931 2,015 -- -- -- ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.06 $1.46 $1.56 $1.33 $1.28 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 13,643 20,382 24,433 25,428 16,423 8,977 2,837 ----------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $0.87 $1.28 $1.26 $1.17 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,873 2,380 3,270 3,186 2,458 1,272 211 ----------------------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $1.08 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $0.80 $1.08 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,783 10,284 12,074 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.71 $1.19 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 42,915 31,378 21,100 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.26 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $0.64 $1.26 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,121 4,198 9,849 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $0.74 $1.13 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,848 3,423 9,239 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.75 $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,362 19,211 18,826 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.81 $1.59 $1.31 $1.14 $1.00 -- -- Accumulation unit value at end of period $1.05 $1.81 $1.59 $1.31 $1.14 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,851 5,245 6,006 4,632 1,316 -- -- ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.20 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.68 $1.20 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 53,546 45,072 40,094 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $0.83 $1.44 $1.30 $1.16 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 14,570 20,111 25,441 28,158 27,602 15,940 3,592 ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 $1.00 Accumulation unit value at end of period $1.35 $2.25 $1.97 $1.77 $1.52 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 38,797 44,787 53,339 46,944 30,787 15,111 4,182 ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.16 $2.09 $1.80 $1.55 $1.32 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 6,432 8,255 10,330 9,686 7,474 2,900 553 -----------------------------------------------------------------------------------------------------------------------
102 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 $1.00 Accumulation unit value at end of period $1.06 $1.86 $2.37 $1.99 $1.77 $1.36 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 9,150 14,263 20,694 22,307 17,231 9,166 2,887 ----------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.18 $1.77 $1.84 $1.59 $1.47 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 8,815 11,862 14,227 13,298 8,980 5,248 2,075 ----------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 $1.00 Accumulation unit value at end of period $1.01 $1.62 $1.58 $1.35 $1.23 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 14,362 21,837 22,449 18,871 13,076 6,742 1,735 ----------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.24 $1.98 $1.94 $1.69 $1.51 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 16,558 24,512 29,515 30,996 15,049 7,743 2,583 ----------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $0.84 $1.35 $1.38 $1.24 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 13,564 20,871 27,339 30,636 9,922 2,742 1,048 ----------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 33,658 25,246 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (02/13/2002) Accumulation unit value at beginning of period $1.94 $1.77 $1.46 $1.33 $1.17 $0.92 $1.00 Accumulation unit value at end of period $1.21 $1.94 $1.77 $1.46 $1.33 $1.17 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 3,562 5,119 6,555 7,418 5,816 3,058 499 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.60 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 443 225 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $0.75 $1.20 $1.09 $1.03 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 4,927 5,932 8,628 8,658 5,399 2,971 1,088 ----------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 $1.00 Accumulation unit value at end of period $0.71 $1.18 $1.17 $1.04 $1.00 $0.96 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 2,718 3,692 5,363 6,257 6,311 5,191 2,112 ----------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (02/04/2004) Accumulation unit value at beginning of period $1.26 $1.23 $1.11 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.97 $1.26 $1.23 $1.11 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,375 11,796 12,057 10,940 3,567 -- -- *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ----------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 $1.00 Accumulation unit value at end of period $1.71 $2.78 $2.20 $1.70 $1.47 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 6,021 7,678 8,231 6,871 3,380 1,670 276 ----------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.07 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.56 $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 10,873 10,350 9,305 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.59 $1.51 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.94 $1.59 $1.51 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,456 11,884 14,402 11,208 4,318 -- -- -----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 103
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.38 $1.42 $1.25 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.85 $1.38 $1.42 $1.25 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,256 9,606 10,328 6,924 2,998 -- -- ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.24 $1.15 $1.08 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.05 $1.24 $1.15 $1.08 $1.07 -- -- Number of accumulation units outstanding at end of period (000 omitted) 82,157 92,164 64,615 34,899 7,003 -- -- ----------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.93 $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 31,669 27,066 26,857 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (02/13/2002) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 $1.00 Accumulation unit value at end of period $0.92 $1.12 $1.14 $1.12 $1.00 $0.94 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 2,705 3,423 4,490 4,351 2,530 1,776 617 ----------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.05 $1.90 $1.77 $1.40 $1.26 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 2,476 3,409 3,961 4,252 4,043 4,165 2,086 ----------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 $1.00 Accumulation unit value at end of period $0.73 $1.35 $1.31 $1.25 $1.13 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 601 771 986 736 559 614 267 ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 88 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,582 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,013 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,762 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 829 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $0.68 $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 25,636 18,675 20,639 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.34 $1.28 $1.12 $1.12 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.34 $1.28 $1.12 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 766 1,469 1,490 1,493 840 -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (02/13/2002) Accumulation unit value at beginning of period $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 $1.00 Accumulation unit value at end of period $1.14 $1.68 $1.79 $1.50 $1.43 $1.21 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 23,170 23,547 19,283 20,683 11,379 7,181 3,316 -----------------------------------------------------------------------------------------------------------------------
104 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (02/13/2002) Accumulation unit value at beginning of period $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 $1.00 Accumulation unit value at end of period $0.94 $1.36 $1.35 $1.19 $1.16 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 2,967 5,018 4,466 3,385 2,471 1,608 531 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (02/13/2002) Accumulation unit value at beginning of period $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 $1.00 Accumulation unit value at end of period $1.10 $1.08 $1.04 $1.01 $0.99 $1.00 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 51,260 39,420 37,806 22,067 19,507 13,022 12,452 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.11%) and (0.11%), respectively. ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.12 $1.21 $1.16 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 93,379 103,330 87,923 50,746 22,751 13,984 6,481 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (02/13/2002) Accumulation unit value at beginning of period $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.14 $1.94 $1.82 $1.53 $1.36 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 64,717 69,629 75,610 47,282 24,579 8,342 3,101 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 $1.00 Accumulation unit value at end of period $0.70 $1.22 $1.20 $1.05 $1.00 $0.95 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 18,986 23,697 27,942 27,550 4,862 1,779 291 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 $1.00 Accumulation unit value at end of period $1.45 $1.47 $1.38 $1.31 $1.39 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 26,925 31,193 26,716 18,771 8,568 3,885 1,060 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.12 $1.05 $1.05 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.11 $1.12 $1.05 $1.05 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,321 26,608 31,048 20,279 653 -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 $1.00 Accumulation unit value at end of period $1.08 $1.46 $1.44 $1.32 $1.28 $1.16 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 13,016 20,960 27,180 28,189 24,305 16,280 3,957 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.15 $1.14 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.15 $1.14 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 19,612 20,632 21,052 7,061 300 -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 $1.00 Accumulation unit value at end of period $0.76 $1.40 $1.24 $1.26 $1.15 $1.07 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 2,135 2,984 4,676 5,505 5,961 4,649 1,153 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.48 $1.36 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $0.81 $1.48 $1.36 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,682 9,445 15,321 622 -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $0.84 $1.35 $1.30 $1.14 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 7,849 10,644 13,132 14,184 11,269 6,544 1,889 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (02/13/2002) Accumulation unit value at beginning of period $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 $1.00 Accumulation unit value at end of period $1.09 $1.13 $1.08 $1.05 $1.04 $1.05 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 12,804 12,583 16,153 18,707 17,403 14,902 6,107 ----------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 $1.00 Accumulation unit value at end of period $0.66 $1.19 $1.17 $1.06 $0.99 $0.92 $0.77 Number of accumulation units outstanding at end of period (000 omitted) 12,689 20,603 24,725 23,296 7,403 5,647 973 -----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 105
VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.31 $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.79 $1.31 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 582 925 1,124 921 450 -- -- ----------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 $1.00 Accumulation unit value at end of period $0.97 $1.59 $1.68 $1.52 $1.46 $1.25 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,383 3,378 4,827 5,744 5,617 2,920 900 ----------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (02/13/2002) Accumulation unit value at beginning of period $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 $1.00 Accumulation unit value at end of period $1.69 $3.70 $2.70 $2.04 $1.54 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 11,453 9,394 9,829 8,412 1,983 492 220 ----------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.15 $1.94 $1.74 $1.42 $1.26 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 3,748 5,324 5,986 5,133 2,551 340 55 ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.31 $1.36 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.31 $1.36 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 43,694 51,531 60,771 53,896 12,916 -- -- ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $0.61 $1.11 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 14,095 9,916 8,886 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.20 $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $0.63 $1.20 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,776 2,519 6,372 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (02/13/2002) Accumulation unit value at beginning of period $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 $1.00 Accumulation unit value at end of period $1.68 $3.12 $2.71 $1.99 $1.66 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 16,311 18,491 21,367 19,260 9,273 4,376 1,523 ----------------------------------------------------------------------------------------------------------------------- WANGER USA (02/13/2002) Accumulation unit value at beginning of period $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 $1.00 Accumulation unit value at end of period $1.03 $1.73 $1.66 $1.56 $1.41 $1.21 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 28,344 36,469 42,372 41,455 26,304 13,657 3,732 ----------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $0.88 $1.48 $1.40 $1.26 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 3,344 4,587 6,324 7,621 6,990 5,557 2,340 ----------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 $1.00 Accumulation unit value at end of period $0.88 $1.52 $1.35 $1.11 $1.06 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 3,050 3,223 2,943 2,596 2,735 1,772 662 -----------------------------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 $1.00 Accumulation unit value at end of period $0.73 $1.29 $1.17 $1.12 $1.04 $0.99 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 5,453 7,314 10,002 11,202 2,736 978 447 ----------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (02/13/2002) Accumulation unit value at beginning of period $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 $1.00 Accumulation unit value at end of period $0.86 $1.65 $1.51 $1.32 $1.22 $1.07 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,232 1,796 2,051 1,835 1,591 774 463 ----------------------------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 $1.00 Accumulation unit value at end of period $0.44 $1.10 $1.43 $1.25 $1.19 $1.11 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 1,016 586 904 832 915 731 446 -----------------------------------------------------------------------------------------------------------------------
106 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.13 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.79 $1.13 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 665 456 2,466 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.56 $1.38 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $0.92 $1.56 $1.38 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,389 4,140 267 5 -- -- -- ----------------------------------------------------------------------------------------------------------------------- AIM V.I. TECHNOLOGY FUND, SERIES I SHARES (02/13/2002) Accumulation unit value at beginning of period $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 $1.00 Accumulation unit value at end of period $0.53 $0.98 $0.92 $0.84 $0.83 $0.80 $0.56 Number of accumulation units outstanding at end of period (000 omitted) 1,188 1,544 1,896 2,168 923 573 157 ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.34 $1.13 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $0.70 $1.34 $1.13 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 301 264 846 148 -- -- -- ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (02/13/2002) Accumulation unit value at beginning of period $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 $1.00 Accumulation unit value at end of period $0.84 $1.43 $1.38 $1.20 $1.16 $1.05 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 6,035 9,112 12,504 14,313 11,547 7,339 4,072 ----------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (02/13/2002) Accumulation unit value at beginning of period $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 $1.00 Accumulation unit value at end of period $1.24 $2.68 $2.57 $1.92 $1.67 $1.35 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 15,720 18,897 19,979 16,470 7,898 3,918 1,371 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 $1.00 Accumulation unit value at end of period $1.03 $1.90 $1.63 $1.32 $1.18 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,795 3,680 4,188 3,768 2,448 1,128 448 ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.90 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.67 $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,001 5,266 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $1.18 $0.99 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $0.68 $1.18 $0.99 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,338 1,445 6,545 1,015 -- -- -- ----------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (02/13/2002) Accumulation unit value at beginning of period $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 $1.00 Accumulation unit value at end of period $1.05 $1.45 $1.54 $1.32 $1.27 $1.13 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 8,079 12,429 15,592 16,716 10,779 5,922 2,396 ----------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. SOCIAL BALANCED PORTFOLIO (02/13/2002) Accumulation unit value at beginning of period $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 $1.00 Accumulation unit value at end of period $0.86 $1.26 $1.24 $1.16 $1.11 $1.04 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,073 1,711 2,144 2,283 1,690 769 208 ----------------------------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (04/28/2006) Accumulation unit value at beginning of period $1.07 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $0.80 $1.07 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,864 7,595 9,164 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $1.18 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $0.71 $1.18 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 20,913 15,689 10,663 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $1.26 $1.06 $1.00 -- -- -- -- Accumulation unit value at end of period $0.64 $1.26 $1.06 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,857 2,426 5,251 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $1.12 $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $0.73 $1.12 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,963 1,728 4,962 -- -- -- -- -----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 107
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.03 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.74 $1.03 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,376 13,146 12,200 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.80 $1.59 $1.31 $1.14 $1.00 -- -- Accumulation unit value at end of period $1.04 $1.80 $1.59 $1.31 $1.14 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,508 3,470 4,047 3,150 728 -- -- ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $1.19 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $0.68 $1.19 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 27,515 23,069 20,348 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 $1.00 Accumulation unit value at end of period $0.81 $1.42 $1.28 $1.15 $1.09 $1.04 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 8,328 12,003 16,152 18,132 18,010 11,020 3,508 ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 $1.00 Accumulation unit value at end of period $1.33 $2.23 $1.95 $1.76 $1.51 $1.23 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 20,610 25,720 32,335 28,423 18,934 9,886 3,541 ----------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 $1.00 Accumulation unit value at end of period $1.14 $2.07 $1.79 $1.53 $1.31 $1.17 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 4,259 5,901 7,436 6,520 5,276 2,292 610 ----------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 $1.00 Accumulation unit value at end of period $1.05 $1.84 $2.35 $1.97 $1.76 $1.35 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 5,481 8,852 13,498 15,139 12,119 6,601 2,989 ----------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 $1.00 Accumulation unit value at end of period $1.16 $1.75 $1.82 $1.57 $1.46 $1.20 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 4,647 7,056 8,954 8,682 5,338 3,257 1,610 ----------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (02/13/2002) Accumulation unit value at beginning of period $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 $1.00 Accumulation unit value at end of period $0.99 $1.60 $1.56 $1.34 $1.22 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 8,193 12,837 13,922 11,400 7,311 3,856 1,418 ----------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 $1.00 Accumulation unit value at end of period $1.22 $1.96 $1.92 $1.68 $1.50 $1.21 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 10,448 15,654 19,762 20,011 10,047 5,836 2,777 ----------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (02/13/2002) Accumulation unit value at beginning of period $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 $1.00 Accumulation unit value at end of period $0.83 $1.33 $1.37 $1.23 $1.17 $1.03 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 7,207 11,550 15,324 16,269 6,220 2,770 1,483 ----------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.63 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 16,906 12,686 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO - SERVICE SHARES* (02/13/2002) Accumulation unit value at beginning of period $1.92 $1.75 $1.45 $1.33 $1.17 $0.92 $1.00 Accumulation unit value at end of period $1.20 $1.92 $1.75 $1.45 $1.33 $1.17 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 2,272 3,267 4,513 4,983 4,090 2,091 566 *Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.59 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 130 97 -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------
108 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 $1.00 Accumulation unit value at end of period $0.74 $1.18 $1.08 $1.02 $0.99 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 2,427 3,135 4,033 4,710 3,047 2,246 712 ----------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 $1.00 Accumulation unit value at end of period $0.70 $1.17 $1.16 $1.04 $1.00 $0.95 $0.72 Number of accumulation units outstanding at end of period (000 omitted) 1,851 2,675 3,472 4,247 4,567 3,912 1,784 ----------------------------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (02/04/2004) Accumulation unit value at beginning of period $1.25 $1.22 $1.10 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.96 $1.25 $1.22 $1.10 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,661 8,820 9,805 8,946 3,545 -- -- *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ----------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (02/13/2002) Accumulation unit value at beginning of period $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 $1.00 Accumulation unit value at end of period $1.69 $2.74 $2.18 $1.68 $1.46 $1.14 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 4,698 6,370 6,302 5,189 2,575 1,371 431 ----------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $1.06 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.56 $1.06 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,048 4,922 4,471 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.58 $1.50 $1.30 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.93 $1.58 $1.50 $1.30 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,437 6,986 8,796 5,927 2,391 -- -- ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.37 $1.41 $1.24 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.84 $1.37 $1.41 $1.24 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,184 4,773 5,725 3,700 1,477 -- -- ----------------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.23 $1.14 $1.08 $1.06 $1.00 -- -- Accumulation unit value at end of period $1.04 $1.23 $1.14 $1.08 $1.06 -- -- Number of accumulation units outstanding at end of period (000 omitted) 58,677 62,902 46,387 23,303 4,223 -- -- ----------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $0.92 $1.11 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,406 14,755 14,860 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (02/13/2002) (PREVIOUSLY PUTNAM VT HEALTH SCIENCES FUND - CLASS IB SHARES) Accumulation unit value at beginning of period $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 $1.00 Accumulation unit value at end of period $0.91 $1.11 $1.13 $1.11 $1.00 $0.94 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 1,192 1,630 2,416 2,388 1,649 1,108 583 ----------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 $1.00 Accumulation unit value at end of period $1.04 $1.87 $1.75 $1.39 $1.25 $1.09 $0.86 Number of accumulation units outstanding at end of period (000 omitted) 1,497 2,184 2,660 3,019 2,995 2,797 1,392 ----------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (02/13/2002) Accumulation unit value at beginning of period $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 $1.00 Accumulation unit value at end of period $0.72 $1.33 $1.30 $1.24 $1.12 $0.96 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 264 448 706 598 413 417 192 ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.71 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 66 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.84 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,506 -- -- -- -- -- -- -----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 109
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.76 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,184 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.73 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 466 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.79 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 993 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (05/01/2006) Accumulation unit value at beginning of period $1.11 $1.08 $1.00 -- -- -- -- Accumulation unit value at end of period $0.67 $1.11 $1.08 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 12,896 9,646 10,682 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (02/04/2004) Accumulation unit value at beginning of period $1.33 $1.27 $1.11 $1.12 $1.00 -- -- Accumulation unit value at end of period $0.83 $1.33 $1.27 $1.11 $1.12 -- -- Number of accumulation units outstanding at end of period (000 omitted) 614 980 1,141 1,193 732 -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (02/13/2002) Accumulation unit value at beginning of period $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 $1.00 Accumulation unit value at end of period $1.12 $1.66 $1.77 $1.49 $1.42 $1.20 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 11,506 12,216 10,437 11,559 7,783 5,093 2,665 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (02/13/2002) Accumulation unit value at beginning of period $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 $1.00 Accumulation unit value at end of period $0.93 $1.35 $1.34 $1.18 $1.15 $1.07 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 2,378 4,008 3,764 3,085 2,273 1,117 462 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (02/13/2002) Accumulation unit value at beginning of period $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 $1.00 Accumulation unit value at end of period $1.08 $1.07 $1.03 $1.00 $0.99 $0.99 $1.00 Number of accumulation units outstanding at end of period (000 omitted) 39,094 33,791 33,401 18,979 15,014 12,047 12,148 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.33%) and (0.33%), respectively. ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 $1.00 Accumulation unit value at end of period $1.11 $1.20 $1.15 $1.12 $1.11 $1.07 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 63,728 68,622 60,502 37,023 19,654 12,452 5,971 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (02/13/2002) Accumulation unit value at beginning of period $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 $1.00 Accumulation unit value at end of period $1.12 $1.91 $1.79 $1.51 $1.35 $1.15 $0.83 Number of accumulation units outstanding at end of period (000 omitted) 36,755 43,798 50,646 33,232 17,932 5,976 2,058 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 $1.00 Accumulation unit value at end of period $0.75 $1.31 $1.29 $1.13 $1.08 $1.03 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 7,479 10,299 12,875 11,604 2,482 744 96 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 $1.00 Accumulation unit value at end of period $1.43 $1.46 $1.37 $1.30 $1.38 $1.27 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 18,675 22,272 19,781 15,541 8,857 4,839 1,529 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.11 $1.04 $1.04 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.10 $1.11 $1.04 $1.04 $1.03 -- -- Number of accumulation units outstanding at end of period (000 omitted) 17,319 17,958 20,730 13,014 516 -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (02/13/2002) Accumulation unit value at beginning of period $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 $1.00 Accumulation unit value at end of period $1.06 $1.44 $1.43 $1.31 $1.27 $1.15 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 11,973 19,687 25,271 27,474 25,456 15,576 4,269 -----------------------------------------------------------------------------------------------------------------------
110 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (09/13/2004) Accumulation unit value at beginning of period $1.15 $1.13 $1.06 $1.04 $1.00 -- -- Accumulation unit value at end of period $0.92 $1.15 $1.13 $1.06 $1.04 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11,540 12,716 13,255 4,187 271 -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 $1.00 Accumulation unit value at end of period $0.75 $1.38 $1.23 $1.25 $1.15 $1.06 $0.88 Number of accumulation units outstanding at end of period (000 omitted) 1,170 1,887 2,741 2,961 3,400 2,602 889 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (05/02/2005) Accumulation unit value at beginning of period $1.47 $1.35 $1.19 $1.00 -- -- -- Accumulation unit value at end of period $0.80 $1.47 $1.35 $1.19 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,049 5,225 7,878 393 -- -- -- ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (02/13/2002) Accumulation unit value at beginning of period $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 $1.00 Accumulation unit value at end of period $0.83 $1.34 $1.29 $1.13 $1.10 $1.01 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 5,854 8,187 9,874 10,825 9,241 5,428 1,648 ----------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (02/13/2002) Accumulation unit value at beginning of period $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 $1.00 Accumulation unit value at end of period $1.07 $1.11 $1.07 $1.04 $1.04 $1.04 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 13,972 12,745 15,464 16,802 16,700 13,079 7,646 ----------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 $1.00 Accumulation unit value at end of period $0.65 $1.18 $1.16 $1.05 $0.98 $0.92 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 6,110 10,992 13,741 13,519 4,079 2,868 392 ----------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.30 $1.33 $1.13 $1.09 $1.00 -- -- Accumulation unit value at end of period $0.78 $1.30 $1.33 $1.13 $1.09 -- -- Number of accumulation units outstanding at end of period (000 omitted) 584 789 734 632 499 -- -- ----------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (02/13/2002) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 $1.00 Accumulation unit value at end of period $0.95 $1.57 $1.66 $1.51 $1.45 $1.24 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 1,315 2,098 3,358 3,917 3,802 2,139 516 ----------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (02/13/2002) Accumulation unit value at beginning of period $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 $1.00 Accumulation unit value at end of period $1.67 $3.65 $2.68 $2.02 $1.53 $1.25 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 5,787 5,242 5,716 4,677 1,199 318 121 ----------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 $1.00 Accumulation unit value at end of period $1.13 $1.92 $1.73 $1.41 $1.25 $1.08 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 2,197 3,162 3,800 3,647 2,172 496 105 ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.30 $1.35 $1.18 $1.15 $1.00 -- -- Accumulation unit value at end of period $0.83 $1.30 $1.35 $1.18 $1.15 -- -- Number of accumulation units outstanding at end of period (000 omitted) 21,701 27,381 32,887 26,831 6,418 -- -- ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.10 $1.22 $1.00 -- -- -- -- Accumulation unit value at end of period $0.61 $1.10 $1.22 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,113 4,961 4,670 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.19 $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $0.63 $1.19 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,487 1,490 3,111 -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (02/13/2002) Accumulation unit value at beginning of period $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 $1.00 Accumulation unit value at end of period $1.66 $3.08 $2.68 $1.98 $1.65 $1.28 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 8,509 10,565 12,918 11,470 5,817 2,667 1,055 -----------------------------------------------------------------------------------------------------------------------
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 111
VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 2005 2004 2003 2002 ----------------------------------------------------------------------------------------------------------------------- WANGER USA (02/13/2002) Accumulation unit value at beginning of period $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 $1.00 Accumulation unit value at end of period $1.02 $1.71 $1.64 $1.54 $1.40 $1.20 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 14,444 19,504 23,503 23,080 15,408 8,442 3,131 ----------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (02/13/2002) Accumulation unit value at beginning of period $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 $1.00 Accumulation unit value at end of period $0.87 $1.47 $1.39 $1.25 $1.18 $1.01 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 1,472 2,414 3,081 3,829 3,698 3,344 1,985 ----------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (02/13/2002) Accumulation unit value at beginning of period $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 $1.00 Accumulation unit value at end of period $0.87 $1.51 $1.34 $1.10 $1.05 $0.94 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 1,360 1,799 1,527 1,557 1,643 1,441 387 -----------------------------------------------------------------------------------------------------------------------
112 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts.............. p. 3 Rating Agencies.......................... p. 4 Revenues Received During Calendar Year 2008................................... p. 4 Principal Underwriter.................... p. 5 Independent Registered Public Accounting Firm................................... p. 5 Financial Statements
RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS/RETIREMENT ADVISOR SELECT PLUS VARIABLE ANNUITY -- PROSPECTUS 113 (RIVERSOURCE INSURANCE LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc (C) 2008-2009 RiverSource Life Insurance Company. All rights reserved. S-6273 M (5/09) PROSPECTUS MAY 1, 2009 RIVERSOURCE RETIREMENT ADVISOR 4 ADVANTAGE(R) VARIABLE ANNUITY RETIREMENT ADVISOR 4 SELECT(R) VARIABLE ANNUITY RETIREMENT ADVISOR 4 ACCESS(R) VARIABLE ANNUITY INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITIES ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10/RIVERSOURCE ACCOUNT MGA This prospectus contains information that you should know before investing in the RiverSource Retirement Advisor 4 Advantage Variable Annuity (RAVA 4 Advantage), the RiverSource Retirement Advisor 4 Select Variable Annuity (RAVA 4 Select), or the RiverSource Retirement Advisor 4 Access Variable Annuity (RAVA 4 Access). The information in this prospectus applies to all contracts unless stated otherwise. Prospectuses are also available for: - AIM Variable Insurance Funds - AllianceBernstein Variable Products Series Fund, Inc. - American Century Variable Portfolios, Inc - Columbia Funds Variable Insurance Trust - Credit Suisse Trust - Dreyfus Variable Investment Fund - Eaton Vance Variable Trust - Evergreen Variable Annuity Trust - Fidelity(R) Variable Insurance Products - Service Class 2 - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - Goldman Sachs Variable Insurance Trust (VIT) - Janus Aspen Series: Service Shares - Legg Mason Variable Portfolios I, Inc. - MFS(R) Variable Insurance Trust(SM) - Neuberger Berman Advisers Management Trust - Oppenheimer Variable Account Funds - Service Shares - PIMCO Variable Investment Trust (VIT) - RiverSource Variable Series Trust (RVST) - The Universal Institutional Funds, Inc. Van Kampen Life Investment Trust - Wanger Advisors Trust - Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The contracts provide for purchase payment credits which we may reverse under certain circumstances. Expenses may be higher and surrender charges may be higher and longer for contracts with purchase payment credits than for contracts without such credits. The amount of the credit may be more than offset by additional charges associated with the credit. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). Variable annuities are insurance products that are complex investment vehicles. Before you invest, be sure to ask your financial advisor about the contract features, benefits, risks and fees, and whether the contract is appropriate for you, based upon your financial situation and objectives. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 1 The contracts and/or certain optional benefits described in this prospectus may not be available in all jurisdictions. This prospectus constitutes an offering or solicitation only in those jurisdictions where such offering or solicitation may lawfully be made. State variations are covered in a special contract form used in that state. This prospectus provides a general description of the contracts. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contracts other than those contained in this prospectus or the fund prospectuses. RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to your annuity account values. The fees and charges you will pay when buying, owning and surrendering money from the contracts we describe in this prospectus may be more or less than the fees and charges of other variable annuities we and our affiliates issue. You should ask your financial advisor about his or her ability to offer you other variable annuities we issue (which might have lower fees and charges than the contracts described in this prospectus). TABLE OF CONTENTS KEY TERMS........................................... 3 THE CONTRACT IN BRIEF............................... 6 EXPENSE SUMMARY..................................... 8 CONDENSED FINANCIAL INFORMATION..................... 14 FINANCIAL STATEMENTS................................ 14 THE VARIABLE ACCOUNT AND THE FUNDS.................. 14 GUARANTEE PERIOD ACCOUNTS (GPAS).................... 16 THE FIXED ACCOUNT................................... 18 BUYING YOUR CONTRACT................................ 19 CHARGES............................................. 23 VALUING YOUR INVESTMENT............................. 29 MAKING THE MOST OF YOUR CONTRACT.................... 31 SURRENDERS.......................................... 40 TSA -- SPECIAL PROVISIONS........................... 41 CHANGING OWNERSHIP.................................. 42 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT........................................... 43 OPTIONAL BENEFITS................................... 44 THE ANNUITY PAYOUT PERIOD........................... 64 TAXES............................................... 65 VOTING RIGHTS....................................... 69 SUBSTITUTION OF INVESTMENTS......................... 69 ABOUT THE SERVICE PROVIDERS......................... 69 ADDITIONAL INFORMATION.............................. 71 APPENDIX A: THE FUNDS............................... 73 APPENDIX B: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA)............................................. 80 APPENDIX C: EXAMPLE -- SURRENDER CHARGES............ 82 APPENDIX D: EXAMPLE -- OPTIONAL DEATH BENEFITS...... 86 APPENDIX E: EXAMPLE -- OPTIONAL LIVING BENEFITS..... 90 APPENDIX F: ADDITIONAL RMD DISCLOSURE............... 95 APPENDIX G: GUARANTOR WITHDRAWAL BENEFIT FOR LIFE RIDER DISCLOSURE.................................. 97 APPENDIX H: CONDENSED FINANCIAL INFORMATION (UNAUDITED)....................................... 109 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION....................................... 140
2 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BAND 3 ANNUITIES: RAVA 4 Advantage and RAVA 4 Select contracts that are available for: - current or retired employees of Ameriprise Financial, Inc. or its subsidiaries and their spouses or domestic partners (employees), - current or retired Ameriprise financial advisors and their spouses or domestic partners (advisors), or - individuals investing an initial purchase payment of $1 million or more, with our approval (other individuals). BENEFICIARY: The person you designate to receive benefits in case of your death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB) AND ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. You can elect to purchase either the EEB or the EEP, subject to certain restrictions. FIXED ACCOUNT: Our general account which includes the Regular Fixed account and the Special DCA fixed account. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GOOD ORDER: We cannot process your transaction request relating to the contract until we have received the request in good order at our corporate office. "Good order" means the actual receipt of the requested transaction in writing, along with all information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; the signatures of all contract owners, exactly as registered on the contract, if necessary; Social Security Number or Taxpayer Identification Number; and any other information or supporting documentation that we may require. With respect to purchase requests, "good order" also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. GUARANTEE PERIOD: The number of successive 12-month periods that a guaranteed interest rate is credited. GUARANTEE PERIOD ACCOUNTS (GPAS): A nonunitized separate account to which you may allocate purchase payments and purchase payment credits or transfer contract value of at least $1,000. These accounts have guaranteed interest rates for guarantee periods we declare when you allocate purchase payments and purchase payment credits or transfer contract value to a GPA. These guaranteed rates and periods of time may vary by state. Unless an exception applies, transfers or surrenders from a GPA done more than 30 days before the end of the guarantee period will receive a Market Value Adjustment, which may result in a gain or loss of principal. GUARANTEED MINIMUM ACCUMULATION BENEFIT RIDER (ACCUMULATION BENEFIT): This is an optional benefit that you can add to your contract for an additional charge. It is intended to provide you with a guaranteed contract value at the end of a specified RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 3 waiting period regardless of the volatility inherent in the investments in the subaccounts. This rider requires participation in the Portfolio Navigator Asset Allocation Program. This rider is not available for RAVA 4 Access. GUARANTOR WITHDRAWAL BENEFIT FOR LIFE(R) RIDER (GWB FOR LIFE(R)): This is an optional benefit you can add to your contract for an additional charge. It is intended to provide a guaranteed withdrawal up to a certain amount each year from the contract, regardless of the investment performance of your contract before the annuity payments begin, until you have recovered at a minimum, all of your purchase payments plus any purchase payment credits. Under certain limited circumstances, it gives you the right to take limited withdrawals in each contract year until death. This rider requires participation in the Portfolio Navigator Asset Allocation Program. This rider is not available for RAVA 4 Access. This rider is no longer available for sale. MARKET VALUE ADJUSTMENT (MVA): A positive or negative adjustment assessed if any portion of a Guarantee Period Account is surrendered or transferred more than 30 days before the end of its guarantee period. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) AND MAXIMUM FIVE-YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide additional death benefit protection in the event of fluctuating fund values. You can elect to purchase either the MAV or the 5-Year MAV, subject to certain restrictions. OWNER (YOU, YOUR): A person or persons who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. If the contract has a nonnatural person as the owner, "you, your, and owner" means the annuitant where contract provisions are based on the age or life of the owner. PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM): This is an asset allocation program in which you are required to participate if you select the optional Accumulation Benefit rider, the optional GWB for Life rider or the optional SecureSource rider. If you do not select the Accumulation Benefit rider, the GWB for Life rider or the optional SecureSource rider, you may elect to participate in the PN program at no additional charge. PURCHASE PAYMENT CREDITS: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. Purchase payment credits are not available under RAVA 4 Access contracts. QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - Individual Retirement Annuities (IRAs) under Section 408(b) of the Code - Roth IRAs under Section 408A of the Code - SIMPLE IRAs under Section 408(p) of the Code - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code - Custodial and investment only accounts maintained for qualified retirement plans under Section 401(a) of the Code - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax-deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP): This is an optional benefit that you can add to your contract for an additional charge if you are age 76 or older at contract issue that is intended to provide additional death benefit protection in the event of fluctuating fund values. ROPP is included in the standard death benefit for contract owners age 75 and under on the contract effective date at no additional cost. RIDER: You receive a rider to your contract when you purchase the EEB, EEP, MAV, 5-Year MAV, ROPP, Accumulation Benefit, GWB for Life and/or SecureSource rider. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date a rider becomes effective as stated in the rider. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. SECURESOURCE(R) RIDERS: This is an optional benefit that you can add to your contract for an additional charge. SecureSource -- Single Life covers one person. SecureSource -- Joint Life covers two spouses jointly. The benefit is intended to provide guaranteed withdrawals up to a certain amount each year from the contract, regardless of the investment performance of your contract before the annuity payments begin until you have recovered, at a minimum, all of your purchase payments plus any purchase payment credits. Under certain limited circumstances, it gives you the right to take limited withdrawals in each contract year until death. These riders require participation in the Portfolio Navigator Asset Allocation program. These riders are not available for RAVA 4 Access. 4 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) FIXED ACCOUNT: An account to which you may allocate new purchase payments of at least $10,000. Amounts you allocate to this account earn interest at rates that we declare periodically and will transfer into your specified subaccount allocations in six monthly transfers. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 5 THE CONTRACT IN BRIEF This prospectus describes three contracts. Each contract has different expenses. RAVA 4 Access does not have surrender charges, but it has the highest mortality and expense risk fees of the three contracts. RAVA 4 Select has a three-year surrender charge schedule and has lower mortality and expense risk fees than RAVA 4 Access. RAVA 4 Advantage offers a choice of a seven-year or a ten-year surrender charge schedule, and has the lowest mortality and expense risk fees of the three contracts. RAVA 4 Advantage and RAVA 4 Select include the option to purchase living benefit riders; living benefit riders are not currently available under RAVA 4 Access. Your financial advisor can help you determine which contract is best suited to your needs based on factors such as your investment goals and how long you intend to keep your contract. The information in this prospectus applies to all contracts unless stated otherwise. PURPOSE: The purpose of each contract is to allow you to accumulate money for retirement or a similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the GPAs, regular fixed account, subaccounts and/or Special DCA fixed account under the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the contract. You may be able to purchase an optional benefit to reduce the investment risk you assume under your contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payouts of your contract value (less any applicable premium tax). BUYING A CONTRACT: There are many factors to consider carefully before you buy a variable annuity and any optional benefit rider. Variable annuities -- with or without optional benefit riders -- are not right for everyone. MAKE SURE YOU HAVE ALL THE FACTS YOU NEED BEFORE YOU PURCHASE A VARIABLE ANNUITY OR CHOOSE AN OPTIONAL BENEFIT RIDER. Some of the factors you may wish to consider include: - "Tax Free" Exchanges: It may not be advantageous for you to purchase this contract in exchange for, or in addition to, an existing annuity or life insurance policy. Generally, you can exchange one annuity for another in a "tax-free" exchange under Section 1035 of the Code. You can also do a partial exchange from one annuity contract to another annuity contract, subject to IRS rules. You also generally can exchange a life insurance policy for an annuity. However, before making an exchange, you should compare both contracts carefully because the features and benefits may be different. Fees and charges may be higher or lower on your old contract than on this contract. You may have to pay a surrender charge when you exchange out of your old contract and a new surrender charge period will begin when you exchange into this contract. If the exchange does not qualify for Section 1035 treatment, you also may have to pay federal income tax on the distribution. You should not exchange your old contract for this contract, or buy this contract in addition to your old contract, unless you determine it is in your best interest. (See "Taxes -- 1035 Exchanges.") - Tax-deferred retirement plans: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions ("RMDs"). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the tax implications to you. - Taxes: Generally, income earned on your contract value grows tax-deferred until you make withdrawals or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. (see "Taxes") - Your age: If you are an older person, you may not necessarily have a need for tax deferral, retirement income or a death benefit. Older persons who are considering buying a contract including any optional benefits may find it helpful to consult with or include a family member, friend or other trusted advisor in the decision making process before buying a contract. - How long you plan to keep your contract: variable annuities are not short-term liquid investments. RAVA 4 Advantage and RAVA 4 Select contracts have surrender charges. RAVA 4 Access contract does not have a surrender charge schedule, but it has a higher mortality and expense risk fee than RAVA 4 Advantage and RAVA 4 Select. All contracts offer an annuity payout plan called Annuity Payout Plan E, which imposes a surrender charge only if you elect to surrender remaining variable payouts available under Annuity Payout Plan E. (see "Annuity Payout Plans -- Plan E") Does the contract meet your current and anticipated future needs for liquidity? - If you can afford the contract: are your annual income and assets adequate to buy the contract and any optional benefit riders you may choose? - The fees and expenses you will pay when buying, owning and withdrawing money from this contract. (see "Charges") 6 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - How and when you plan to take money from the contract: under current tax law, withdrawals, including withdrawals made under optional benefit riders, are taxed differently than annuity payouts. In addition, certain withdrawals may be subject to a federal income tax penalty. (see "Surrenders") - Your investment objectives, how much experience you have in managing investments and how much risk you are you willing to accept. - Short-term trading: if you plan to manage your investment in the contract by frequent or short-term trading, this contract is not suitable for you and you should not buy it. (see "Making the Most of Your Contract -- Transferring Among Accounts") FREE LOOK PERIOD: You may return your contract to your financial advisor or to our corporate office within the time stated on the first page of your contract and receive a full refund of the contract value less the amounts of any purchase payment credits, subject to market value adjustment. We will not deduct any contract charges or fees. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (EXCEPTION: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among the: - the subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (see "The Variable Account and the Funds") - the GPAs which earn interest at rates declared when you make an allocation to that account. The required minimum investment in each GPA is $1,000. These accounts may not be available in all states. (see "Guarantee Period Accounts (GPAs)") - the regular fixed account, which earns interest at rates that we adjust periodically. Purchase payment allocations to the regular fixed account may be subject to special restrictions. For RAVA 4 Access contracts, you cannot select the regular fixed account unless it is included in the PN program model portfolio (model portfolio) you selected. (see "The Fixed Account") - the Special DCA fixed account, when available. (see "The Fixed Account -- The Special DCA Fixed Account") TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the subaccounts until annuity payouts begin, and once per contract year after annuity payouts begin. Transfers out of the GPAs done more than 30 days before the end of the Guarantee Period will be subject to an MVA, unless an exception applies. You may establish automated transfers among the accounts. You may not transfer existing amounts to the Special DCA fixed account. GPAs and regular fixed account transfers are subject to special restrictions. (see "Making the Most of Your Contract -- Transferring Among Accounts") SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (see "Surrenders") BENEFITS IN CASE OF DEATH: If you die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (see "Benefits in Case of Death -- Standard Death Benefit") OPTIONAL BENEFITS: These contracts offer optional features that are available for additional charges if you meet certain criteria. Optional benefits may require the use of a PN model portfolio which may limit transfers and allocations; may limit the timing, amount and allocation of purchase payments; and may limit the amount of partial surrenders that can be taken under the optional benefit during a contract year. (see "Optional Benefits") ANNUITY PAYOUTS: You can apply your contract value to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the regular fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (see "The Annuity Payout Period") RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 7 EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU BUY THE CONTRACT OR SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE FOR RAVA 4 ADVANTAGE: (Contingent deferred sales load as a percentage of purchase payment surrendered) You select either a seven-year or ten-year surrender charge schedule at the time of application.*
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
* In certain states the ten-year surrender charge schedule is 8% for years 0- 2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama and Massachusetts, surrender charges are waived after the tenth contract anniversary. SURRENDER CHARGE FOR RAVA 4 SELECT (EXCEPT TEXAS): (Contingent deferred sales load as a percentage of purchase payment surrendered)
YEARS FROM SURRENDER CHARGE CONTRACT DATE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE FOR RAVA 4 SELECT IN TEXAS: (Contingent deferred sales load as a percentage of purchase payment surrendered)
NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE 0 8% 1 7 2 6 Thereafter 0
There are no surrender charges after the third contract anniversary. SURRENDER CHARGE FOR RAVA 4 ACCESS: 0% SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed 8 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.") THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE Maximum: $50* Current: $30
(We will waive this $30 charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value)
MORTALITY AND EXPENSE RISK FEE: RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS FOR NONQUALIFIED ANNUITIES 1.05% 1.30% 1.45% FOR QUALIFIED ANNUITIES .85% 1.10% 1.25%
OPTIONAL RIDER FEES OPTIONAL DEATH BENEFITS (As a percentage of contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) ROPP RIDER FEE MAXIMUM: 0.30% CURRENT: 0.20% MAV RIDER FEE MAXIMUM: 0.35% CURRENT: 0.25% 5-YEAR MAV RIDER FEE MAXIMUM: 0.20% CURRENT: 0.10% EEB RIDER FEE MAXIMUM: 0.40% CURRENT: 0.30% EEP RIDER FEE MAXIMUM: 0.50% CURRENT: 0.40%
OPTIONAL LIVING BENEFITS ACCUMULATION BENEFIT RIDER FEE MAXIMUM: 2.50% CURRENT: 0.80%(1)
(1) For contracts purchased prior to Jan. 26, 2009, the current charge is 0.60%. (Charged annually as a percentage of contract value or the minimum contract accumulation value, whichever is greater. The fee applies only if you elect the optional rider.) GWB FOR LIFE RIDER FEE MAXIMUM: 1.50% CURRENT: 0.65%
(Charged annually at the contract anniversary as a percentage of contract value or the total Remaining Benefit Amount, whichever is greater. The fee applies only if you elect the optional rider.) SECURESOURCE - SINGLE LIFE RIDER FEE(2) MAXIMUM: 2.00% CURRENT: 0.90% SECURESOURCE - JOINT LIFE RIDER FEE(2) MAXIMUM: 2.50% CURRENT: 1.15%
(Charged annually at the contract anniversary as a percentage of contract value or the total Remaining Benefit Amount, whichever is greater. The fee applies only if you elect the optional rider.) (2) For contracts purchased prior to Jan. 26, 2009, the following charges apply: - the current charge for Single Life rider is 0.65% and for Joint Life rider is 0.85%, and - the maximum charge for Single Life rider is 1.50% and for Joint Life rider is 1.75%. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 9 ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2008, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.55% 4.35%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Accounts and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA 4 ADVANTAGE, RAVA 4 SELECT AND RAVA 4 ACCESS* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AIM V.I. Capital Appreciation Fund, Series II Shares 0.61% 0.25% 0.30% 0.01% 1.17% AIM V.I. Capital Development Fund, Series II Shares 0.75 0.25 0.36 0.01 1.37(1) AIM V.I. Financial Services Fund, Series II Shares 0.75 0.25 0.48 0.01 1.49(1) AIM V.I. Global Health Care Fund, Series II Shares 0.75 0.25 0.38 0.01 1.39(1) AIM V.I. International Growth Fund, Series II Shares 0.71 0.25 0.35 0.02 1.33(1) AllianceBernstein VPS Global Technology Portfolio (Class B) 0.75 0.25 0.18 -- 1.18 AllianceBernstein VPS Growth and Income Portfolio (Class B) 0.55 0.25 0.07 -- 0.87 AllianceBernstein VPS International Value Portfolio (Class 0.74 0.25 0.07 -- 1.06 B) AllianceBernstein VPS Large Cap Growth Portfolio (Class B) 0.75 0.25 0.09 -- 1.09 American Century VP Mid Cap Value, Class II 0.90 0.25 0.01 -- 1.16 American Century VP Ultra(R), Class II 0.90 0.25 0.01 -- 1.16 American Century VP Value, Class II 0.84 0.25 0.01 -- 1.10 Columbia High Yield Fund, Variable Series, Class B 0.78 0.25 0.11 -- 1.14 Columbia Marsico Growth Fund, Variable Series, Class A 0.92 -- 0.04 -- 0.96 Columbia Marsico International Opportunities Fund, Variable 1.02 0.25 0.12 -- 1.39 Series, Class B Credit Suisse Trust - Commodity Return Strategy Portfolio 0.50 0.25 0.31 -- 1.06(2) Dreyfus Variable Investment Fund International Equity 0.75 0.25 0.35 -- 1.35 Portfolio, Service Shares Eaton Vance VT Floating-Rate Income Fund 0.58 0.25 0.37 -- 1.20 Evergreen VA Fundamental Large Cap Fund - Class 2 0.61 0.25 0.19 0.01 1.06 Evergreen VA International Equity Fund - Class 2 0.42 0.25 0.25 -- 0.92 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 2 0.56 0.25 0.10 -- 0.91 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 0.56 0.25 0.12 -- 0.93 Fidelity(R) VIP Overseas Portfolio Service Class 2 0.71 0.25 0.16 -- 1.12 FTVIPT Franklin Global Real Estate Securities Fund - Class 0.80 0.25 0.30 -- 1.35(3) 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 0.52 0.25 0.16 0.01 0.94(4) FTVIPT Mutual Shares Securities Fund - Class 2 0.60 0.25 0.13 -- 0.98 Goldman Sachs VIT Structured U.S. Equity 0.65 -- 0.07 -- 0.72(5) Fund - Institutional Shares
10 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA 4 ADVANTAGE, RAVA 4 SELECT AND RAVA 4 ACCESS* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Janus Aspen Series Janus Portfolio: Service Shares 0.64% 0.25% 0.02% 0.01% 0.92% (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) Legg Mason Partners Variable Small Cap Growth Portfolio, 0.75 -- 0.19 -- 0.94 Class I MFS(R) Investors Growth Stock Series - Service Class 0.75 0.25 0.10 -- 1.10 MFS(R) Utilities Series - Service Class 0.72 0.25 0.09 -- 1.06 Neuberger Berman Advisers Management Trust International 1.13 0.25 0.21 -- 1.59(6) Portfolio (Class S) Neuberger Berman Advisers Management Trust Socially 0.83 0.25 0.19 -- 1.27(7) Responsive Portfolio (Class S) Oppenheimer Global Securities Fund/VA, Service Shares 0.63 0.25 0.02 -- 0.90 Oppenheimer Main Street Small Cap Fund/VA, Service Shares 0.70 0.25 0.04 -- 0.99 Oppenheimer Strategic Bond Fund/VA, Service Shares 0.55 0.25 0.04 0.01 0.85(8) Oppenheimer Value Fund/VA, Service Shares 0.75 0.21 1.17 -- 2.13(8) PIMCO VIT All Asset Portfolio, Advisor Share Class 0.43 0.25 -- 0.76 1.44(9) RVST Disciplined Asset Allocation Portfolios - Aggressive -- 0.25 0.89 0.69 1.83(10) RVST Disciplined Asset Allocation Portfolios - Conservative -- 0.25 0.61 0.66 1.52(10) RVST Disciplined Asset Allocation Portfolios - Moderate -- 0.25 0.30 0.68 1.23(10) RVST Disciplined Asset Allocation Portfolios - Moderately -- 0.25 0.36 0.68 1.29(10) Aggressive RVST Disciplined Asset Allocation Portfolios - Moderately -- 0.25 0.50 0.67 1.42(10) Conservative RVST RiverSource Partners Variable Portfolio - Fundamental 0.77 0.13 0.16 -- 1.06(11) Value Fund RVST RiverSource Partners Variable Portfolio - Select Value 0.89 0.13 3.33 -- 4.35(11) Fund RVST RiverSource Partners Variable Portfolio - Small Cap 0.95 0.13 0.19 0.05 1.32(11) Value Fund RVST RiverSource Variable Portfolio - Balanced Fund 0.42 0.13 0.16 -- 0.71 RVST RiverSource Variable Portfolio - Cash Management Fund 0.32 0.13 0.17 -- 0.62 RVST RiverSource Variable Portfolio - Diversified Bond Fund 0.44 0.13 0.15 -- 0.72 RVST RiverSource Variable Portfolio - Diversified Equity 0.59 0.13 0.14 -- 0.86 Income Fund RVST RiverSource Variable Portfolio - Dynamic Equity Fund 0.44 0.13 0.15 0.02 0.74 (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) RVST RiverSource Variable Portfolio - Global Bond Fund 0.66 0.13 0.18 -- 0.97(11) RVST RiverSource Variable Portfolio - Global Inflation 0.44 0.13 0.17 -- 0.74(11) Protected Securities Fund RVST RiverSource Variable Portfolio - High Yield Bond Fund 0.59 0.13 0.17 -- 0.89 RVST RiverSource Variable Portfolio - Income Opportunities 0.61 0.13 0.18 -- 0.92 Fund RVST RiverSource Variable Portfolio - Mid Cap Growth Fund 0.58 0.13 0.17 -- 0.88(11) RVST RiverSource Variable Portfolio - Mid Cap Value Fund 0.73 0.13 0.18 -- 1.04 RVST RiverSource Variable Portfolio - S&P 500 Index Fund 0.22 0.13 0.19 0.01 0.55(11) RVST RiverSource Variable Portfolio - Short Duration U.S. 0.48 0.13 0.18 -- 0.79 Government Fund RVST Seligman Variable Portfolio - Growth Fund 0.45 0.13 0.17 0.04 0.79 (previously RVST RiverSource Variable Portfolio - Growth Fund) RVST Seligman Variable Portfolio - Larger-Cap Value Fund 0.48 0.13 0.67 -- 1.28(11) (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) RVST Seligman Variable Portfolio - Smaller-Cap Value Fund 0.62 0.13 0.31 -- 1.06(11) (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) RVST Threadneedle Variable Portfolio - Emerging Markets 1.15 0.13 0.33 -- 1.61 Fund RVST Threadneedle Variable Portfolio - International 0.82 0.13 0.20 -- 1.15 Opportunity Fund Van Kampen Life Investment Trust Comstock Portfolio, Class 0.56 0.25 0.04 -- 0.85 II Shares Van Kampen UIF Global Real Estate Portfolio, Class II 0.85 0.35 0.37 -- 1.57(12) Shares Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares 0.75 0.35 0.31 -- 1.41(12)
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 11 TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA 4 ADVANTAGE, RAVA 4 SELECT AND RAVA 4 ACCESS* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND GROSS TOTAL MANAGEMENT 12B-1 OTHER FEES AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Wanger International 0.84% --% 0.18% --% 1.02% Wanger USA 0.85 -- 0.11 -- 0.96 Wells Fargo Advantage VT Opportunity Fund 0.73 0.25 0.20 0.04 1.22(13) Wells Fargo Advantage VT Small Cap Growth Fund 0.75 0.25 0.26 -- 1.26(13)
* The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Fund's advisor has contractually agreed, through at least April 30, 2010, to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) to 1.45% of average daily net assets. In addition, the Fund's advisor has contractually agreed, through at least April 30, 2010, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees Invesco AIM receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds. After fee waivers and expense reimbursements net expenses would be 1.36% for AIM V.I. Capital Development Fund, Series II Shares, 1.45% for AIM V.I. Financial Services Fund, Series II Shares, 1.38% for AIM V.I. Global Health Care Fund, Series II Shares and 1.32% for AIM V.I. International Growth Fund, Series II Shares. (2) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements, net expenses would be 0.95%. (3) The investment manager and administrator have contractually agreed to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund is phased in over a five year period, starting on May 1, 2007, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of four years thereafter through April 30, 2012, the investment manager and administrator will receive one-fifth of the increase in the rate of fees. After fee reductions net expenses would be 1.03%. (4) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent of the Fund's fees and expenses of the acquired fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. After fee reductions net expenses would be 0.93%. (5) The Investment Adviser has voluntarily agreed to reduce or limit other expenses (subject to certain exclusions) equal on an annualized basis to 0.044% of the Fund's average daily net assets. The expense reduction may be modified or terminated at any time at the option of the Investment Adviser without shareholder approval. After expense reductions, net expenses would be 0.71%. (6) Neuberger Berman Management Inc. ("NBM") has undertaken through Dec. 31, 2012, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 2.00% of the average daily net asset value. NBM has also voluntarily committed to reimburse certain expenses an additional 0.50% per annum of the Portfolio's average daily net assets to maintain the Portfolio's operating expenses at 1.50%. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. After fee waiver and expense reimbursements net expenses would be 1.53%. (7) Neuberger Berman Management Inc. ("NBM") has undertaken through Dec. 31, 2012, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 1.17% of the average daily net asset value. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. (8) The other expenses in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2008, the transfer agent fees did not exceed this expense limitation. In addition, for Oppenheimer Strategic Bond Fund/VA, Service Shares, the Manager will voluntarily waive fees and/or reimburse Fund expenses in an amount equal to the acquired fund fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund, Oppenheimer Master Loan Fund LLC and Oppenheimer Master Event-Linked Bond Fund, LLC. After fee waivers and expense reimbursements, the net expenses would be 0.82% for Oppenheimer Strategic Bond Fund/VA, Service Shares. In addition, for Oppenheimer Value Fund/VA, Service Shares the Manager has voluntarily agreed to an expense waiver of any total expenses over 1.50% of average annual net assets. (9) PIMCO has contractually agreed through Dec. 31, 2009, to reduce its advisory fee to the extent that the acquired fund fees and expenses attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the acquired funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. After fee waivers and expense reimbursements, the net expenses would be 1.42%. (10) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), will not exceed 0.41% for each of the RVST Disciplined Asset Allocation Portfolios. (11) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2009, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.99% for RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund, 1.14% for RVST RiverSource Partners Variable Portfolio - Select Value Fund, 1.20% for RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund, 0.96% for RVST RiverSource Variable Portfolio - Global Bond Fund, 0.74% for RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund, 1.00% for RVST RiverSource Variable Portfolio - Mid Cap Growth Fund, 0.53% for RVST RiverSource Variable Portfolio - S&P 500 Index Fund, 1.04% for RVST Seligman Variable Portfolio - Larger-Cap Value Fund and 1.12% for RVST Seligman Variable Portfolio - Smaller-Cap Value Fund. (12) After giving effect to the Adviser's voluntary fee waivers and/or expense reimbursements, the net expenses incurred by investors including certain investment related expenses, was 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.15% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares The Adviser reserves the right to terminate any waivers and/or reimbursements at any time and without notice. 12 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS (13) The adviser has contractually agreed through April 30, 2010 to waive fees and/or reimburse the expenses to the extent necessary to maintain the Fund's net operating expense ratio. After this time, the net operating expense ratio may be increased only with approval of the Board of Trustees. After fee waivers and expense reimbursements, net expenses would be 1.07% for Wells Fargo Advantage VT Opportunity Fund and 1.20% for Wells Fargo Advantage VT Small Cap Growth Fund. EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THESE CONTRACTS WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES(1), VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expenses of any of the funds. They assume that you select the optional MAV, EEP and Accumulation Benefit or SecureSource - Joint Life(2), if available. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(3) $1,689 $3,366 $4,814 $7,687 $889 $2,566 $4,114 $7,487 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 1,589 3,266 4,614 7,487 889 2,566 4,114 7,487 RAVA 4 SELECT 1,617 3,337 4,217 7,625 917 2,637 4,217 7,625 RAVA 4 SELECT - TEXAS 1,717 3,237 4,217 7,625 917 2,637 4,217 7,625 RAVA 4 ACCESS 678 1,998 3,271 6,261 678 1,998 3,271 6,261
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(3) $1,669 $3,312 $4,736 $7,580 $869 $2,512 $4,036 $7,380 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 1,569 3,212 4,536 7,380 869 2,512 4,036 7,380 RAVA 4 SELECT 1,596 3,283 4,139 7,521 896 2,583 4,139 7,521 RAVA 4 SELECT - TEXAS 1,696 3,184 4,141 7,523 896 2,584 4,141 7,523 RAVA 4 ACCESS 657 1,941 3,185 6,127 657 1,941 3,185 6,127
MINIMUM EXPENSES. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(3) $967 $1,317 $1,592 $2,142 $167 $517 $ 892 $1,942 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 867 1,217 1,392 1,942 167 517 892 1,942 RAVA 4 SELECT 894 1,300 1,031 2,229 194 600 1,031 2,229 RAVA 4 SELECT - TEXAS 994 1,200 1,031 2,229 194 600 1,031 2,229 RAVA 4 ACCESS 211 653 1,120 2,411 211 653 1,120 2,411
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 13
IF YOU DO NOT SURRENDER YOUR CONTRACT IF YOU SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule(3) $946 $1,255 $1,485 $1,920 $146 $455 $ 785 $1,720 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 846 1,155 1,285 1,720 146 455 785 1,720 RAVA 4 SELECT 873 1,237 926 2,013 173 537 926 2,013 RAVA 4 SELECT - TEXAS 973 1,137 926 2,013 173 537 926 2,013 RAVA 4 ACCESS 191 591 1,016 2,198 191 591 1,016 2,198
(1) In these examples, the contract administrative charge is approximated as a .028% charge for RAVA 4 Advantage, a .042% charge for RAVA 4 Select, a .042% for RAVA 4 Select - Texas, and .063% for RAVA 4 Access. These percentages were determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to each contract by the total average net assets that are attributable to that contract. (2) Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for each optional rider is reflected rather than the fee that is currently being charged. (3) In certain states, your expenses would be slightly lower due to the modified ten-year surrender charge schedule. CONDENSED FINANCIAL INFORMATION You can find unaudited condensed financial information for the subaccounts in Appendix H. We do not include any condensed financial information for subaccounts that are new and did not have any activity as of the financial statement date. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the subaccounts with history in the SAI. The SAI does not include audited financial statements for subaccounts that are new and have no activity as of the financial statement date. THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contracts currently offer subaccounts investing in shares of the funds. For a list of underlying funds with a summary of investment objectives, investment advisers and subadvisers, please see Appendix A. - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded 14 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue, including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including but not limited to expense payments and non-cash compensation. The amount of this revenue and how it is computed varies by fund, may be significant and may create potential conflicts of interest. The greatest amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Series Trust funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates. RiverSource Variable Series Trust funds include the RiverSource Variable Portfolio funds, RiverSource Partners Variable Portfolio funds, Threadneedle Variable Portfolio funds and Disciplined Asset Allocation Portfolio funds. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Series Trust funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Series Trust funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in 2008. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 15 The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial Industry Regulatory Authority (FINRA). - Subaccounting, transaction processing, recordkeeping and administration. - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. GUARANTEE PERIOD ACCOUNTS (GPAS) The GPAs may not be available for contracts in some states. GPAs are not available if the GWB for Life, SecureSource, or Accumulation Benefit is selected. Currently, unless the PN program is in effect, you may allocate purchase payments and purchase payment credits to one or more of the GPAs with guarantee periods declared by us. The required minimum investment in each GPA is $1,000. (Exception: if a model portfolio includes one or more GPAs, the required minimum does not apply.) These accounts are not offered after annuity payouts begin. Each GPA pays an interest rate that is declared when you make an allocation to that account. That interest rate is then fixed for the guarantee period that you chose. We will periodically change the declared interest rate for any future allocations to these accounts, but we will not change the rate paid on money currently in a GPA. The GPA interests under the contracts are registered with the SEC. The SEC staff reviews the disclosures in this prospectus on the GPA interests. The interest rates that we will declare as guaranteed rates in the future are determined by us at our discretion (future rates). We will determine future rates based on various factors including, but not limited to, the interest rate environment, returns earned on investments in the nonunitized separate account we have established for the GPAs, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition and RiverSource Life's revenues and other expenses. 16 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Interest rates offered may vary by state, but will not be lower than state law allows. WE CANNOT PREDICT NOR CAN WE GUARANTEE WHAT FUTURE RATES WILL BE. We hold amounts you allocate to the GPAs in a "nonunitized" separate account. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the GPAs. State insurance law prohibits us from charging this separate account with liabilities of any other separate account or of our general business. We own the assets of this separate account as well as any favorable investment performance of those assets. You do not participate in the performance of the assets held in this separate account. We guarantee all benefits relating to your value in the GPAs. This guarantee is based on the continued claims-paying ability of the company's general account. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. We intend to construct and manage the investment portfolio relating to the separate account in such a way as to minimize the impact of fluctuations in interest rates. We achieve this by constructing a portfolio of assets with a price sensitivity to interest rate changes (i.e., price duration) that is similar to the price duration of the corresponding portfolio of liabilities. We must invest this portfolio of assets in accordance with requirements established by applicable state laws regarding the nature and quality of investments that life insurance companies may make and the percentage of their assets that they may commit to any particular type of investment. Our investment strategy will incorporate the use of a variety of debt instruments having price durations tending to match the applicable guarantee periods. These instruments include, but are not necessarily limited to, the following: - Securities issued by the U.S. government or its agencies or instrumentalities, which issues may or may not be guaranteed by the U.S. government; - Debt securities that have an investment grade, at the time of purchase, within the four highest grades assigned by any of three nationally recognized rating agencies -- Standard & Poor's, Moody's Investors Service or Fitch -- or are rated in the two highest grades by the National Association of Insurance Commissioners; - Debt instruments that are unrated, but which are deemed by RiverSource Life to have an investment quality within the four highest grades; - Other debt instruments which are unrated or rated below investment grade, limited to 15% of assets at the time of purchase; and - Real estate mortgages, limited to 30% of portfolio assets at the time of acquisition. In addition, options and futures contracts on fixed income securities will be used from time to time to achieve and maintain appropriate investment and liquidity characteristics on the overall asset portfolio. While this information generally describes our investment strategy, we are not obligated to follow any particular strategy except as may be required by federal law and Minnesota and other state insurance laws. MARKET VALUE ADJUSTMENT (MVA) We will not apply an MVA to contract value you transfer or surrender out of the GPAs within 30 days before the end of the guarantee period. During this 30 day window you may choose to start a new guarantee period of the same length, transfer the contract value to a GPA of another length, transfer the contract value to any of the subaccounts or the regular fixed account, or surrender the contract value (subject to applicable surrender provisions). If we do not receive any instructions at the end of your guarantee period, our current practice is to automatically transfer the contract value to the one year GPA. Any new GPA, whether it is one you choose or an automatic transfer to a one year GPA, will be subject to an MVA as described below. We guarantee the contract value allocated to the GPAs, including interest credited, if you do not make any transfers or surrenders from the GPAs prior to 30 days before the end of the guarantee period (30-day rule). At all other times, and unless one of the exceptions to the 30-day rule described below applies, we will apply an MVA if you surrender or transfer contract value from a GPA including withdrawals under the GWB for Life rider, SecureSource rider or you elect an annuity payout plan while you have contract value invested in a GPA. We will refer to these transactions as "early surrenders." The application of an MVA may result in either a gain or loss of principal. The 30-day rule does not apply and no MVA will apply to: - amounts surrendered under contract provisions that waive surrender charges for Hospital or Nursing Home Confinement and Terminal Illness Disability Diagnosis; - amounts surrendered from the GPA within 30 days prior to the end of the Guarantee Period; - automatic rebalancing under any PN program model portfolio we offer which includes one or more GPAs. However, an MVA may apply if you transfer to a new PN program model portfolio; RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 17 - amounts applied to an annuity payout plan while a PN program model portfolio including one or more GPAs is in effect; - reallocation of your contract value according to an updated PN program model portfolio; - amounts surrendered for fees and charges; and - amounts we pay as death claims. When you request an early surrender, we adjust the early surrender amount by an MVA formula. The early surrender amount reflects the relationship between the guaranteed interest rate you are earning in your current GPA and the interest rate we are crediting on new GPAs that end at the same time as your current GPA. The MVA is sensitive to changes in current interest rates. The magnitude of any applicable MVA will depend on our current schedule of guaranteed interest rates at the time of the surrender, the time remaining in your guarantee period and your guaranteed interest rate. The MVA is negative, zero or positive depending on how the guaranteed interest rate on your GPA compares to the interest rate of a new GPA for the same number of years as the guarantee period remaining on your GPA. This is summarized in the following table:
IF YOUR GPA RATE IS: THE MVA IS: Less than the new GPA rate + 0.10% Negative Equal to the new GPA rate + 0.10% Zero Greater than the new GPA rate + 0.10% Positive
For an example, see Appendix B. THE FIXED ACCOUNT Amounts allocated to the fixed account become part of our general account. The fixed account includes the regular fixed account and the Special DCA fixed account. We credit interest on amounts you allocate to the fixed account at rates we determine from time to time in our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns we earn on our general account investments, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and RiverSource Life's revenues and expenses. The guaranteed minimum interest rate on amounts invested in the fixed account may vary by state but will not be lower than state law allows. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of RiverSource Life. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. The fixed account is not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account, however, disclosures regarding the fixed account may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. THE REGULAR FIXED ACCOUNT For RAVA 4 Advantage and RAVA 4 Select, unless the PN program is in effect, you also may allocate purchase payments and purchase payment credits or transfer contract value to the regular fixed account. For RAVA 4 Access contracts, you cannot allocate purchase payments to the regular fixed account unless it is included in the PN program model portfolio you selected. The value of the regular fixed account increases as we credit interest to the account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the regular fixed account is guaranteed for one year. Thereafter, we will change the rates from time to time at our discretion. Subject to state limitations, we reserve the right to limit purchase payment allocations to the regular fixed account if the interest rate we are then currently crediting to the regular fixed account is equal to the minimum interest rate stated in the contract. (See "Making the Most of Your Contract -- Transfer policies" for restrictions on transfers involving the regular fixed account.) THE SPECIAL DCA FIXED ACCOUNT You also may allocate purchase payments and purchase payment credits to the Special DCA fixed account, when available. The Special DCA fixed account is available for new purchase payments. The value of the Special DCA fixed account increases as we credit interest to the account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment is guaranteed for the period of time money remains in the Special DCA fixed account. (See "Making the Most of Your Contract -- Special Dollar Cost Averaging Program" for more information on the Special DCA fixed account.) 18 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS BUYING YOUR CONTRACT You can fill out an application and send it along with your initial purchase payment to our corporate office. You may buy RAVA 4 Advantage, RAVA 4 Select or RAVA 4 Access. Each contract has different mortality and expense risk fees. RAVA 4 Access does not have surrender charges, but it has the highest mortality and expense risk fees of the three contracts. RAVA 4 Select has a three-year surrender charge schedule and lower mortality and expense risk fees then RAVA 4 Access. RAVA 4 Advantage offers a choice of a seven-year or ten-year surrender charge schedule and the lowest mortality and expense risk fees of the three contracts; additionally, optional living benefit riders are not available under RAVA 4 Access. We are required by law to obtain personal information from you which we will use to verify your identity. If you do not provide this information we reserve the right to refuse to issue your contract or take other steps we deem reasonable. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can buy a contract if you and the annuitant are 90 or younger. When you apply, you may select among the following (if available in your state): - GPAs, the regular fixed account(1), subaccounts and/or the Special DCA fixed account in which you want to invest; - how you want to make purchase payments; - a beneficiary; - under RAVA 4 Advantage, the length of the surrender charge period (seven or ten years)(2); - the optional PN program; - one of the following optional death benefits: - ROPP Death Benefit(3); - MAV Death Benefit(3); - 5-Year MAV Death Benefit(3); - EEB Death Benefit(3); - EEP Death Benefit(3); and - under RAVA 4 Advantage and RAVA 4 Select, one of the following optional living benefits that require the use of the PN program: - Accumulation Benefit rider(4); or - SecureSource rider(4). (1) For RAVA 4 Access contracts, you cannot select the regular fixed account unless it is included in a PN program model portfolio you selected. (2) In certain states, the ten-year surrender charge schedule is 8% for years 0- 2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama and Massachusetts, we waive surrender charges after the tenth contract anniversary. (3) You may select any one of the ROPP, MAV, 5-Year MAV, EEB or EEP riders or certain combinations thereof. You may select the MAV and either the EEB or the EEP. You may select the 5-Year MAV and either the EEB or the EEP. You cannot select both the EEB and EEP. You cannot select both the MAV and 5- Year MAV. The MAV, EEB, EEP and 5-Year MAV are only available if you are 75 or younger at the rider effective date. EEP is only available on contracts purchased through a transfer or exchange. ROPP is only available if you are 76 or older at the rider effective date. ROPP is included in the standard death benefit if you are 75 or younger. (4) You may select either the Accumulation Benefit or SecureSource rider. The Accumulation Benefit and SecureSource - Single Life riders are only available if you are 80 or younger at the rider effective date. SecureSource - Joint Life rider is available if both covered spouses are 80 or younger. The contracts provide for allocation of purchase payments and purchase payment credits to the subaccounts of the variable account, to the GPAs, to the regular fixed account and/or to the Special DCA fixed account (when available) in even 1% increments subject to the $1,000 required minimum investment for the GPAs. There may be certain restrictions on the amount you may allocate to the regular fixed account. For RAVA 4 Access contracts, purchase payment credits are not available and you cannot allocate purchase payments to the regular fixed account unless it is included in a PN program model portfolio you selected. (See "Purchase Payments.") If your application is complete, we will process it and apply your purchase payment and purchase payment credits to the GPAs, the regular fixed account, the Special DCA fixed account and/or subaccounts you selected within two business days after we receive it at our corporate office. If we accept your application, we will send you a contract. If your application is not complete, you must give us the information to complete it within five business days. If we cannot accept your application within five business days, we will decline it and return your payment unless you specifically ask us to keep the payment and apply it once your application is complete. We will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our corporate office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 19 receive an additional purchase payment at our corporate office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. When we process your application, we will establish the settlement date as the maximum age (or contract anniversary, if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities. You can also select a date within the maximum limits. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - no earlier than the 60th day after the contract's effective date; and - no later than the annuitant's 90th birthday or the tenth contract anniversary, if purchased after age 80, or a date that has been otherwise agreed to by us. FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - for IRAs, by April 1 of the year following the calendar year when you reach age 70 1/2; or - for all other qualified annuities, by April 1 of the year following the calendar year when you reach age 70 1/2, or, if later, retire (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as the annuitant's 90th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs or TSAs, and in that case, may delay the annuity payout start date for these contracts. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay the death benefit to your named beneficiary. If there is more than one beneficiary we will pay each beneficiary's designated share when we receive their completed claim. A beneficiary will bear the investment risk of the variable account until we receive the beneficiary's completed claim. If there is no named beneficiary, then the default provisions of your contract will apply. (See "Benefits in Case of Death" for more about beneficiaries.) If you select the SecureSource - Joint Life rider, please consider carefully whether or not you wish to change the beneficiary of your annuity contract. The rider will terminate if the surviving covered spouse can not utilize the spousal continuation provision of the contract when the death benefit is payable. PURCHASE PAYMENTS(*) MINIMUM ALLOWABLE PURCHASE PAYMENTS(**) If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month
RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS If paying by any other method: initial payment for qualified annuities $1,000 $ 2,000 $ 2,000 initial payment for nonqualified annuities 2,000 10,000 10,000 for any additional payments 50 50 50
* RAVA 4 ADVANTAGE AND RAVA 4 SELECT BAND 3 ANNUITIES SOLD TO INDIVIDUALS OTHER THAN ADVISORS AND EMPLOYEES: Require a minimum $1,000,000 initial purchase payment and corporate office approval. Contracts already approved may make payments in subsequent years up to $100,000 if your age on the effective date of the contract is age 85 or younger and $50,000 if your age on the effective date of the contract is age 86 to 90. ** Installments must total at least $600 in the first year. If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in Illinois, Massachusetts and New Jersey. 20 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS MAXIMUM ALLOWABLE PURCHASE PAYMENTS(***) (without corporate office approval) based on your age on the effective date of the contract:
RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS For the first year: through age 85 $999,999 $999,999 $999,999 for ages 86 to 90 100,000 100,000 100,000 For each subsequent year: through age 85 100,000 100,000 100,000 for ages 86 to 90 50,000 50,000 50,000
*** These limits apply in total to all RiverSource Life annuities you own. These limits do not apply to contracts in New Jersey. We reserve the right to increase maximum limits. For qualified annuities, the Code's limits on annual contributions also apply. For the Accumulation Benefit rider, additional purchase payments are restricted during the waiting period after the first 180 days immediately following the effective date and each elective step up. EFFECTIVE JAN. 26, 2009, NO ADDITIONAL PURCHASE PAYMENTS ARE ALLOWED FOR CONTRACTS WITH THE GWB FOR LIFE OR SECURESOURCE RIDERS, SUBJECT TO STATE RESTRICTIONS. For contracts issued in all states except those listed below, certain exceptions apply and the following additional purchase payments will be allowed on/after Jan. 26, 2009: a. Tax Free Exchanges, rollovers, and transfers listed on the annuity application and received within 180 days from the contract issue date. b. Current tax year contributions for TSAs up to the annual limit set by the IRS. c. Prior and current tax year contributions up to a cumulative annual maximum of $6,000(1) for any Qualified Accounts except TSAs. This maximum applies to IRAs, Roth IRAs, SIMPLE IRAs, and SEP plans. (1) The maximum amount is subject to change in later years and is based on the limit set by the IRS for individual IRAs (including the catch-up provision). For Contracts Issued in Florida, New Jersey, and Oregon: For contracts with GWB for Life rider or SecureSource riders issued in Florida, New Jersey, and Oregon, additional purchase payments to your variable annuity contract will be limited to $100,000 for the life of your contract. The limit does not apply to Tax Free Exchanges, rollovers and transfers listed on the annuity application and received within 180 days from the contract issue date. We reserve the right to change these current rules at any time, subject to state restrictions. Purchase payment amounts and purchase payment timing may vary by state and may be limited under the terms of your contract. Subject to state regulatory requirements, we reserve the right to not accept purchase payments allocated to the regular fixed account for twelve months following either: 1. a partial surrender from the regular fixed account; or 2. a lump sum transfer from the regular fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 BY SCHEDULED PAYMENT PLAN We can help you set up: - an automatic payroll deduction, salary reduction or other group billing arrangement; or - a bank authorization. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 21 PURCHASE PAYMENT CREDITS PURCHASE PAYMENT CREDITS ARE NOT AVAILABLE FOR RAVA 4 ACCESS. FOR RAVA 4 ADVANTAGE: we add a credit to your contract in the amount of: - 1% of each purchase payment received: - if you elect the ten-year surrender charge schedule for your contract and the initial purchase payment is under $100,000; or - if you elect the seven-year surrender charge schedule for your contract and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. - 2% of each purchase payment received if you elect the ten-year surrender charge schedule for your contract and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. FOR RAVA 4 ADVANTAGE - BAND 3: we add a credit to your contract in the amount of: - 2% of each purchase payment received: - if you elect the seven-year surrender charge schedule for your contract. - 3% of each purchase payment received - if you elect the ten-year surrender charge schedule for your contract. Surrender charges under RAVA 4 Advantage and RAVA 4 Advantage - Band 3 may be higher and longer than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, there could be circumstances where you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full surrender before year ten. We pay for the credits under RAVA 4 Advantage and RAVA 4 Advantage - Band 3 primarily through revenue from a higher and longer surrender charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. FOR RAVA 4 SELECT: we add a credit to your contract in the amount of 1% of each purchase payment received in the first contract year if your initial purchase payment to the contract is at least $250,000 but less than $1,000,000. FOR RAVA 4 SELECT - BAND 3: we add a credit to your contract in the amount of 2% of each purchase payment received in the first contract year. Expenses under RAVA 4 Select and RAVA 4 Select - Band 3 may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. We pay for the credits under RAVA 4 Select and RAVA 4 Select - Band 3 primarily through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. We fund all credits from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief -- Free look period.") We will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit, surrender payment, or your settlement under an annuity payout plan includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a death benefit payment under this contract; (2) a request for surrender charge waiver due to Hospital or Nursing Home Confinement or Terminal Illness Disability Diagnosis; or (3) your settlement of the contract under an annuity payout plan.* We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. * For contracts purchased in Oregon, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit, includes purchase payment credits applied within twelve months preceding the date of death. LIMITATIONS ON USE OF CONTRACTS If mandated by applicable law, including but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values and satisfy other statutory 22 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS obligations. Under these circumstances, we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or court of competent jurisdiction. CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. Currently, we deduct $30 from your contract value on your contract anniversary at the end of each contract year. Subject to state regulatory requirements, we prorate this charge among the subaccounts and the regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. The contract administrative charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. We reserve the right to increase this charge after the first contract anniversary to a maximum of $50.* We will waive $30 of this charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the full charge at the time of surrender regardless of the contract value or purchase payments made. This charge does not apply after annuity payouts begin or when we pay death benefits. * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee, which is a percentage of their average daily net assets, on an annual basis as follows:
RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS For nonqualified annuities 1.05% 1.30% 1.45% For qualified annuities .85% 1.10% 1.25%
This fee covers the mortality and expense risk that we assume. This fee does not apply to the GPAs, the regular fixed account or the Special DCA fixed account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner or annuitant lives and no matter how long our entire group of owners or annuitants live. If, as a group, owners or annuitants outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners or annuitants do not live as long as expected, we could profit from the mortality risk fee. We deduct the mortality risk fee from the subaccounts during the annuity payout period even if the annuity payout plan does not involve a life contingency. Expense risk arises because we cannot increase the contract administrative charge more than $20.00 per contract and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge for RAVA 4 Advantage or RAVA 4 Select, discussed in the following paragraphs, will cover sales and distribution expenses. SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. For RAVA 4 Advantage, a surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven or ten years before surrender. You select the surrender charge period at the time of your application for the contract. For RAVA 4 Select, a surrender charge applies if you surrender all or part of your purchase payments in the first three contract years. There is no surrender charge for RAVA 4 Access. The surrender charge percentages that apply to you are shown in your contract. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 23 You may surrender an amount during any contract year without a surrender charge. We call this amount the Total Free Amount (TFA). The TFA varies depending on whether your contract includes the GWB for Life rider or SecureSource rider: CONTRACTS WITHOUT GWB FOR LIFE RIDER OR SECURESOURCE RIDER The TFA is the greater of: - 10% of the contract value on the prior contract anniversary*; or - current contract earnings. CONTRACTS WITH GWB FOR LIFE RIDER OR SECURESOURCE RIDER The TFA is the greatest of: - 10% of the contract value on the prior contract anniversary*; - current contract earnings; - the Remaining Benefit Payment; or - the Remaining Annual Lifetime Payment. * We consider all purchase payments received and any purchase payment credit applied prior to your surrender request to be the prior contract anniversary's contract value during the first contract year. NOTE: We determine current contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, GPA, the regular fixed account or the Special DCA fixed account. Amounts surrendered in excess of the TFA may be subject to a surrender charge as described below. SURRENDER CHARGE UNDER RAVA 4 ADVANTAGE: For purposes of calculating any surrender charge under RAVA 4 Advantage, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 3. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
* In certain states the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama and Massachusetts, we waive surrender charges after the tenth contract anniversary. Surrender charges may vary by state based on your age at contract issue. 24 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS SURRENDER CHARGE UNDER RAVA 4 SELECT (EXCEPT TEXAS): For purposes of calculating any surrender charge under RAVA 4 Select, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We do assess a surrender charge on these payments during the first three contract years as follows:
CONTRACT YEAR SURRENDER CHARGE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE UNDER RAVA 4 SELECT IN TEXAS: For purposes of calculating any surrender charge under RAVA 4 Select in Texas, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We surrender amounts from the oldest purchase payments first. We do assess a surrender charge on these payments during the first three contract years as follows:
NUMBER OF COMPLETED YEARS FROM DATE OF EACH PURCHASE PAYMENT SURRENDER CHARGE PERCENTAGE 0 8% 1 7 2 6 Thereafter 0
3. There are no surrender charges after the third contract anniversary. SURRENDER CHARGE UNDER RAVA 4 ACCESS: There is no surrender charge if you surrender all or part of your contract. PARTIAL SURRENDERS: For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge, plus or minus any applicable MVA. For an example, see Appendix C. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. WAIVER OF SURRENDER CHARGES We do not assess surrender charges for: - surrenders of any contract earnings; - surrenders of amounts totaling up to 10% of the contract value on the prior contract anniversary to the extent it exceeds contract earnings; - if you elected the GWB for Life or SecureSource rider, the greater of your contract's Remaining Benefit Payment or Remaining Annual Lifetime Payment to the extent it exceeds the greater of contract earnings or 10% of the contract value on the prior contract anniversary; - amounts surrendered after the tenth contract anniversary in Alabama and Massachusetts; - required minimum distributions from a qualified annuity provided the amount is no greater than the RMD amount calculated under your specific contract, currently in force; - contracts settled using an annuity payout plan*, unless an Annuity Payout Plan E is later surrendered; - amounts we refund to you during the free look period*; - death benefits*; RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 25 - surrenders you make under your contract's "Waiver of Surrender Charges for Hospital or Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 on the date that we issue the contract. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender. You must provide proof satisfactory to us that, as of the date you request the surrender, you or your spouse are confined to a nursing home or hospital and have been for 60 straight days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.); and - surrenders you make under your contract's "Waiver of Surrender Charges for Terminal Illness Disability Diagnosis" provision.* To the extent permitted by state law, this provision applies when you are under age 76 on the date we issue the contract. Under this provision, we will waive surrender charges that we normally assess for surrenders you make if you are diagnosed after the contract issue date as disabled with a medical condition that with reasonable medical certainty will result in death within 12 months or less from the date of a licensed physician's statement. You must provide us with a licensed physician's statement containing the terminal illness diagnosis and the date the terminal illness was initially diagnosed. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Buying your contract -- Purchase payment credits.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate certain charges such as the contract administrative and surrender charges. However, we expect this to occur infrequently. ACCUMULATION BENEFIT RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.80%(2) of the greater of your contract value or the minimum contract accumulation value on your contract anniversary. We prorate this fee among the subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the Special DCA fixed account. Such fee is only deducted from any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. Once you elect the Accumulation Benefit rider, you may not cancel it and the fee will continue to be deducted through the end of the waiting period or when annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. Currently, the Accumulation Benefit rider charge does not vary with the model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider fee for each model portfolio. The Accumulation Benefit rider fee will not exceed a maximum charge of 2.50%. We will not change the Accumulation Benefit rider charge after the rider effective date unless: (a) you choose the annual Elective Step Up after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you change your model portfolio after we have exercised our rights to increase the rider charge; (d) you change your model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you elect to change your model portfolio after we have exercised our right to increase the fee we charge for this rider, or after we have exercised our right to establish fees for this rider which vary by model portfolio, the increase in fees we charge for this rider will become effective on the contract anniversary following your change of model portfolio. Any model portfolio changes on the contract anniversary will have the new charge effective on that contract anniversary. Also, in the event you change your model portfolio twice in the same contract year (see "Portfolio Navigator Asset Allocation Program"), the fee we charge for this rider will be the greatest fee applicable to any model portfolio which you have selected during the contract year. If you choose the Elective Step Up, the elective spousal continuation step up, or change your model portfolio after we have exercised our rights to increase the rider charge as described above, you will pay the charge that is in effect on the valuation date we receive your written request to step up or change your model portfolio. For Elective Step Ups and elective spousal continuation step ups, this change will be in effect for the entire contract year. The fee does not apply after annuity payouts begin. (1) Available if you are 80 or younger at the rider effective date. You must select a model portfolio with this rider (see "Portfolio Navigator Asset Allocation Program"). Not available with GWB for Life or SecureSource riders. (2) For contracts purchased prior to Jan. 26, 2009, the current charge is 0.60%. 26 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS GWB FOR LIFE RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.65% of the greater of the contract anniversary value or the remaining benefit amount (RBA). We prorate this fee among the subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the GPAs and in the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. (1) The GWB for Life rider is no longer available for sale. Once you elect the GWB for Life rider, you may not cancel it and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero or annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. If the RBA goes to zero but the contract value has not been depleted, you will continue to be charged. Currently, the GWB for Life rider charge does not vary with the PN program model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider charge for each model portfolio. The GWB for Life rider charge will not exceed a maximum charge of 1.50%. We will not change the GWB for Life rider charge after the rider effective date unless: (a) you choose the annual elective step up after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you elect to change your PN program model portfolio after we have exercised our rights to increase the rider charge; (d) you elect to change your PN program model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you chose the elective spousal continuation step up or change your model portfolio after we have exercised our right to increase the fee we charge for this rider, or after we have exercised our right to establish fees for this rider which vary by model portfolio, the increase in fees we charge for this rider will become effective on the contract anniversary following your change. Any changes on the contract anniversary will have the new fee effective on that contract anniversary. Also, in the event you change your model portfolio more than once in the same contract year (see "Portfolio Navigator Asset Allocation Program"), the fee we charge for this rider will be the greatest fee applicable to any model portfolio which you have selected during the contract year. If you chose the elective step up, you will pay the fee in effect on the valuation date we receive your written request to step up. If you chose an elective step up on the first contract anniversary, any increase in fees we charge for this rider for the step up will not become effective until the third contract year. In the event of more than one change in model portfolio and/or elective step up occurring in the same contract year, the fee we charge for this rider will be the highest fee applicable to any of these changes. The fee does not apply after annuity payouts begin. SECURESOURCE RIDER FEE We charge an annual fee based on the greater of the contract anniversary value or the total Remaining Benefit Amount (RBA)(1) for this optional feature only if you select it(2) as follows: - SecureSource -- Single Life rider, 0.90%(3); - SecureSource -- Joint Life rider, 1.15%.(3) We deduct the fee from your contract value on your contract anniversary. We prorate this fee among the subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the GPAs and in the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We will modify this approach to comply with state regulations where necessary. Once you elect the SecureSource rider, you may not cancel it and the fee will continue to be deducted until the contract or rider is terminated, or the contract value reduces to zero. If the contract or rider is terminated for any reason, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. If the RBA reduces to zero but the contract value has not been depleted, you will continue to be charged. Currently the SecureSource rider charge does not vary with the Portfolio Navigator model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider charge for each model portfolio. The SecureSource -- RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 27 Single Life rider charge will not exceed a maximum charge of 2.00%(3). The SecureSource -- Joint Life rider charge will not exceed a maximum charge of 2.50%(3). We will not change the SecureSource rider charge after the rider effective date unless: (a) you choose the annual elective step up after we have exercised our rights to increase the rider charge. However, if you choose to exercise the annual elective step up before the end of the waiting period, the SecureSource rider charge will not change until the end of the waiting period. The charge will be based on the charge in effect on the valuation date we received your last written request to exercise the elective annual step up or to elect to change your Portfolio Navigator model portfolio; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you elect to change your Portfolio Navigator model portfolio after we have exercised our rights to increase the rider charge; (d) you elect to change your Portfolio Navigator model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you choose the elective step up, the elective spousal continuation step up, or change your Portfolio Navigator model portfolio as described above, you will pay the charge that is in effect on the valuation date we receive your written request to step up or change your Portfolio Navigator model portfolio. On the next contract anniversary, we will calculate an average rider charge, for the preceding contract year only, that reflects the various different charges that were in effect that year, adjusted for the number of calendar days each charge was in effect. The fee does not apply after annuity payouts begin. (1) In Washington, the fee is based on the greater of the variable account contract value or the RBA less amounts invested in the fixed account. (2) For Single Life, available if you are 80 or younger at the rider effective date. For Joint Life, available if you and your spouse are 80 or younger at the rider effective date. You must select a model portfolio with this rider (see "Portfolio Navigator Asset Allocation Program"). Not available with the Accumulation Benefit rider. (3) For contracts purchased prior to Jan. 26, 2009, the following charges apply: - the current charge for Single Life rider is 0.65% and for Joint Life rider is 0.85%, and - the maximum charge for Single Life rider is 1.50% and for Joint Life rider is 1.75%. ROPP RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.20% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.30%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 76 or older at the rider effective date. ROPP is included in the standard death benefit if you are age 75 or younger on the contract effective date at no additional cost. MAV RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.25% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.35%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 75 or younger at the rider effective date. Not available with the 5-Year MAV. 5-YEAR MAV RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.10% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in 28 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 75 or younger at the rider effective date. Not available with the MAV. EEB RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.40%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 75 or younger at the rider effective date. Not available with EEP. May not be available in all states. EEP RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.40% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.50%. If the contract is terminated for any reason, we will deduct the charge from your contract value at that time, adjusted for the number of calendar days coverage was in effect during the year. (1) Available if you are 75 or younger at the rider effective date. Not available with EEB. May not be available in all states. EEP is only available on contracts purchased through a direct transfer or exchange of another annuity or a life insurance policy. RIDER COMBINATION DISCOUNT A fee discount of 0.05% applies if you purchase the 5-Year MAV with either the EEB or EEP. A fee discount of 0.10% applies if you purchase the MAV with either the EEB or EEP. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectuses for those funds. (See "Annual Operating Expenses of the Funds.") PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. VALUING YOUR INVESTMENT We value your accounts as follows: GPA We value the amounts you allocate to the GPA directly in dollars. The GPA value equals: - the sum of your purchase payments and purchase payment credits allocated to the GPA; - plus any amounts transferred to the GPA from the regular fixed account or subaccounts; - plus interest credited; - minus any amounts transferred from the GPA to the regular fixed account or any subaccount; - minus any amounts deducted for charges or surrenders; RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 29 - plus or minus any applicable MVA; and/or - minus any remaining portion of fees where the values of the regular fixed account and the subaccounts are insufficient to cover those fees. REGULAR FIXED ACCOUNT We value the amounts you allocate to the regular fixed account directly in dollars. The regular fixed account value equals: - the sum of your purchase payments and purchase payment credits and transfer amounts allocated to the regular fixed account; - plus interest credited; - minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out; - minus any prorated portion of the contract administrative charge; - minus any prorated portion of the ROPP rider fee (if selected); - minus any prorated portion of the MAV rider fee (if selected); - minus any prorated portion of the 5-Year MAV rider fee (if selected); - minus any prorated portion of the EEB rider fee (if selected); - minus any prorated portion of the EEP rider fee (if selected); - minus any prorated portion of the Accumulation Benefit rider fee (if selected)*; - minus any prorated portion of the GWB for Life rider fee (if selected)*; and - minus any prorated portion of the SecureSource rider fee (if selected)*. * The fee can only be deducted from the subaccounts in Washington. SPECIAL DCA FIXED ACCOUNT We value the amounts you allocate to the Special DCA fixed account directly in dollars. The Special DCA fixed account value equals: - the sum of your purchase payments and purchase payment credits allocated to the Special DCA fixed account; - plus interest credited; - minus the sum of amounts surrendered (including any applicable surrender charges); - minus amounts transferred out; and - minus any remaining portion of fees where the values of the regular fixed account and the subaccounts are insufficient to cover those fees. SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payment credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge, a surrender charge or fee for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - dividing that sum by the previous adjusted net asset value per share; and - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. 30 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - additional purchase payments you allocate to the subaccounts; - any purchase payment credits allocated to the subaccounts; - transfers into or out of the subaccounts; - partial surrenders; - surrender charges; and a deduction of a prorated portion of: - the contract administrative charge; - the ROPP rider fee (if selected); - the MAV rider fee (if selected); - the 5-Year MAV rider fee (if selected); - the EEB rider fee (if selected); - the EEP rider fee (if selected); - the Accumulation Benefit rider fee (if selected); - the GWB for Life rider fee (if selected); and/or - the SecureSource rider fee (if selected). Accumulation unit values will fluctuate due to: - changes in fund net asset value; - fund dividends distributed to the subaccounts; - fund capital gains or losses; - fund operating expenses; and/or - mortality and expense risk fees. MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the regular fixed account to one or more subaccounts. Automated transfers from the regular fixed account to the subaccounts under automated dollar-cost averaging may not exceed an amount that, if continued, would deplete the regular fixed account within 12 months. You may not set up an automated transfer to or from the GPAs. You may not set up an automated transfer to the regular fixed account or the Special DCA fixed account. You may not set up an automated transfer if the GWB for Life, SecureSource, Accumulation Benefit, or PN program is selected. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. The potential effect is to lower your average cost per unit. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 31 HOW DOLLAR-COST AVERAGING WORKS
NUMBER By investing an equal number of dollars AMOUNT ACCUMULATION OF UNITS each month ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy Mar 100 17 5.88 more units when the (ARROW) Apr 100 15 6.67 per unit market price is low... May 100 16 6.25 June 100 18 5.56 July 100 17 5.88 and fewer units Aug 100 19 5.26 when the per unit (ARROW) Sept 100 21 4.76 market price is high. Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features contact your financial advisor. SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) PROGRAM If your purchase payment is at least $10,000, you can choose to participate in the Special DCA program (if available). There is no charge for the Special DCA program. Under the Special DCA program, you can allocate a new purchase payment and any applicable purchase payment credit to a six-month Special DCA fixed account according to the following rules: - You may only allocate a new purchase payment of at least $10,000 to a Special DCA fixed account. - You cannot transfer existing contract values into a Special DCA fixed account. - Each Special DCA arrangement consists of six monthly transfers that begin seven days after we receive your purchase payment. - We make monthly transfers of your Special DCA fixed account value into the subaccounts or PN program model portfolio you select. - You may not use the regular fixed account, GPA account, or the Special DCA fixed account as a destination for the Special DCA monthly transfer. (Exception: if a PN program is in effect, and the model portfolio you have selected includes the regular fixed account, amounts will be transferred from the Special DCA fixed account to the regular fixed account according to the allocation percentage established for the model portfolio you have selected.) - We will change the interest rate on each Special DCA fixed account from time to time at our discretion based on factors that include the competition and the interest rate we are crediting to the regular fixed account at the time of the change. From time to time, we may credit interest to the Special DCA fixed account at promotional rates that are higher than those we credit to the regular fixed account. - We credit each Special DCA fixed account with the current guaranteed annual rate that is in effect on the date we receive your purchase payment. However, we credit this annual rate over the length of the Special DCA arrangement on the balance remaining in your Special DCA fixed account. Therefore, the net effective interest rate you receive is less than the stated annual rate. - We do not credit this interest after we transfer the value out of the Special DCA fixed account into the accounts you selected. - Once you establish a Special DCA fixed account, you cannot allocate additional purchase payments to it. However, you may establish another new Special DCA fixed account and allocate new purchase payments to it. - Fundings from multiple sources are treated as individual purchase payments and a new Special DCA fixed account is opened for each payment (if the Special DCA fixed accounts are available on the valuation date we receive your payment). - You may terminate your participation in the Special DCA program at any time. If you do, for RAVA 4 Advantage and RAVA 4 Select, we will transfer the remaining balance from your Special DCA fixed account to the regular fixed account, if no other specification is made. Interest will be credited according to the rates in effect on the regular fixed account and not the rate that was in effect on the Special DCA fixed account. For RAVA 4 Access, we will transfer the remaining balance from your Special DCA fixed account to variable subaccounts you specified in your termination request, or if no 32 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS specification is made, according to your current purchase payment allocation. (Exception: if a PN program is in effect when you elect to end your participation in the Special DCA program, and the asset allocation program does not end at the same time, we will transfer the remaining balance to the model portfolio which is in effect). - We can modify the terms of the Special DCA program at any time. Any modifications will not affect any purchase payments that are already in a Special DCA fixed account. For more information on the Special DCA program, contact your financial advisor. The Special DCA program does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in tenth of a percent amounts) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semi-annually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in numbers with no more than one digit past the decimal. Asset rebalancing does not apply to the GPAs, regular fixed account or the Special DCA fixed account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. Different rules apply to asset rebalancing under the Portfolio Navigator program (see "Portfolio Navigator Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN program is available for nonqualified annuities and for qualified annuities. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include certain GPAs and/or the regular fixed account (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You are required to participate in the PN program if your contract includes an optional Accumulation Benefit rider, GWB for Life or SecureSource rider. If your contract does not include one of these riders, you also may elect to participate in the PN program at no additional charge. You should review any PN program information, including the terms of the PN program, carefully. Your financial advisor can provide you with additional information and can answer questions you may have on the PN program. SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investment's role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at or before the time they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provides any individualized RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 33 investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. However, as described below under "Potential conflict of interest", there are certain conflicts of interest associated with RiverSource Investments and its affiliates' influence over the development and updating of the model portfolios. POTENTIAL CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Series Trust funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. As an affiliate of RiverSource Investments, the investment adviser to the RiverSource Variable Series Trust funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Series Trust funds and such allocation options for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Series Trust funds, monitors the performance of the RiverSource Variable Series Trust funds. In this role RiverSource Investments may, from time to time, recommend certain changes to the board of directors of the RiverSource Variable Series Trust funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Series Trust fund. RiverSource Investments also may believe that certain RiverSource Variable Series Trust funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. RiverSource Investments, we or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from certain GPAs or the regular fixed account than from other allocation options. We therefore may have an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. PARTICIPATING IN THE PN PROGRAM. If you choose or are required to participate in the PN program, you are responsible for determining which model portfolio is best for you. Your financial advisor can help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. 34 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts, any GPAs and/or the regular fixed account that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts, the regular fixed account and/or any GPAs (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Special rules apply to the GPAs if they are included in a model portfolio. Under these rules: - no MVA will apply when rebalancing occurs within a specific model portfolio (but an MVA may apply if you elect to transfer to a new model portfolio); - no MVA will apply if you reallocate your contract value according to an updated model portfolio; and - no MVA will apply when you elect an annuity payout plan while your contract value is invested in a model portfolio. (See "Guarantee Period Accounts -- Market Value Adjustment.") If you initially allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA fixed account, when available (see "The Special DCA Fixed Account"), and you are participating in the PN program, we will make monthly transfers in accordance with your instructions from the Special DCA fixed account (and subaccounts we may choose to allow for DCA arrangements which are not part of a model portfolio -- "excluded accounts") into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value, less amounts allocated to the Special DCA fixed account, is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value, less amounts allocated to the Special DCA fixed account, according to the updated model portfolio. If you do not want your contract value, less amounts allocated to the Special DCA fixed account, to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. If your contract includes an optional Accumulation Benefit, GWB for Life rider or SecureSource rider and you make such a change (other than a scheduled periodic reallocation), we may charge you a higher fee for your rider. If your contract includes Secure Source rider, we reserve the right to limit the number of model portfolio changes if required to comply with the written instructions of a Fund (see "Market Timing"). If your contract includes the GWB for Life rider or SecureSource rider, we reserve the right to limit the number of model portfolios from which you can select, subject to state restrictions. We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - limit your choice of models based on the amount of your initial purchase payment we accept or when you take a withdrawal; - cancel required participation in the program after 30 days written notice; - substitute a fund of funds for your current model portfolio if permitted under applicable securities law; and - discontinue the PN program. We will give you 30 days' written notice of any such change. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. The investment advisory agreement will terminate automatically in the event that we are notified of a death which results in a death benefit becoming payable under the contract. In this case, your investment advisory relationship with RiverSource RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 35 Investments and the notification of future reassessments will cease, but prior instructions provided by you in connection with your participation in the PN program will continue (e.g., rebalancing instructions provided to insurer). RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing or periodic updating of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. PN PROGRAM UNDER THE ACCUMULATION BENEFIT RIDER, GWB FOR LIFE RIDER OR SECURESOURCE RIDER If you purchase the optional Accumulation Benefit rider, the optional GWB for Life rider or the optional SecureSource rider, you are required to participate in the PN program under the terms of each rider. - ACCUMULATION BENEFIT RIDER: You cannot terminate the Accumulation Benefit rider. As long as the Accumulation Benefit rider is in effect, your contract value must be invested in one of the model portfolios. For contracts purchased on or after Jan. 26, 2009, you cannot select the Aggressive model portfolio as your model portfolio, or transfer to the Aggressive model portfolio while the rider is in effect. The Accumulation Benefit rider automatically ends at the end of the waiting period and you then have the option to cancel your participation in the PN program. At all other times, if you do not want to participate in any of the model portfolios, you must terminate your contract by requesting a full surrender. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE ACCUMULATION BENEFIT RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) UNTIL THE END OF THE WAITING PERIOD. - GWB FOR LIFE OR SECURESOURCE RIDER: The GWB for Life or SecureSource rider requires that your contract value be invested in one of the model portfolios for the life of the contract. Subject to state restrictions, we reserve the right to limit the number of model portfolios from which you can select based on the dollar amount of purchase payments you make. Because you cannot terminate the GWB for Life or SecureSource rider once you have selected it, you must terminate your contract by requesting a full surrender if you do not want to participate in any of the model portfolios. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE GWB FOR LIFE OR SECURESOURCE RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) FOR THE LIFE OF THE CONTRACT. OPTIONAL PN PROGRAM If you do not select the optional Accumulation Benefit rider, the optional GWB for Life rider or an optional SecureSource rider with your contract, you may elect to participate in the PN program by adding the optional PN program to your contract at no additional charge. You can elect to participate in the PN program at any time. You may cancel your participation in the PN program at any time by giving us written notice. Upon cancellation, automated rebalancing associated with the PN program will end. You will also cancel the PN program if you initiate transfers other than transfers to one of the current model portfolios or transfers from a Special DCA fixed account (see "Special Dollar-Cost Averaging (Special DCA) Program") or an excluded account. Partial surrenders do not cancel the PN program. Your participation in the PN program will terminate on the date you make a full surrender from your contract or on your settlement date. 36 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model portfolio is in effect. You may transfer contract value from any one subaccount, GPAs or the regular fixed account, to another subaccount before annuity payouts begin. For RAVA 4 Advantage and RAVA 4 Select contracts, certain restrictions apply to transfers involving the GPAs and the regular fixed account. For RAVA 4 Access contracts, you cannot transfer to the regular fixed account unless it is included in the PN program model portfolio that you selected. When your request to transfer will be processed depends on when we receive it: - If we receive your transfer request at our corporate office in good order before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - If we receive your transfer request at our corporate office in good order at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Transfers out of the GPAs will be subject to an MVA if done more than 30 days before the end of the guarantee period. We may suspend or modify transfer privileges at any time, subject to state regulatory requirements. For information on transfers after annuity payouts begin, see "Transfer policies" below. TRANSFER POLICIES FOR RAVA 4 ADVANTAGE AND RAVA 4 SELECT - Before annuity payouts begin, you may transfer contract values between the subaccounts, or from the subaccounts to the GPAs and regular fixed account at any time. The amount transferred to any GPA must be at least $1,000. However, if you made a transfer from the regular fixed account to the subaccounts or the GPAs, you may not make a transfer from any subaccount or GPA back to the regular fixed account until the next contract anniversary. We reserve the right to limit transfers to the regular fixed account if the interest rate we are then currently crediting to the regular fixed account is equal to the minimum interest rate stated in the contract. - You may transfer contract values from the regular fixed account to the subaccounts or the GPAs once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). Transfers from the regular fixed account are not subject to an MVA. Currently, transfers out of the regular fixed account are limited to the greater of: a) 30% of the regular fixed account value at the beginning of the contract year, or b) the amount transferred out of the regular fixed account in the previous contract year, excluding any automated transfer amounts. If an automated dollar-cost averaging arrangement is established within 30 days of contract issue, the 30% limitation does not apply to transfers made from the regular fixed account to the subaccounts for the duration of this initial arrangement. - You may transfer contract values from any GPA to the subaccounts, regular fixed account or other GPA any time after 60 days of transfer or payment allocation into such GPA. Transfers made more than 30 days before the end of the guarantee period will receive an MVA, which may result in a gain or loss of contract value, unless an exception applies (see "The Guarantee Period Accounts (GPAs) -- Market Value Adjustment (MVA)"). - If we receive your request within 30 days before the contract anniversary date, the transfer from the regular fixed account to the subaccounts will be effective on the anniversary. - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the regular fixed account to the subaccounts or GPAs will be effective on the valuation date we receive it. - We will not accept requests for transfers from the regular fixed account at any other time. - You may not make a transfer to the Special DCA fixed account. - Once annuity payouts begin, you may not make transfers to or from the GPAs or the regular fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. When annuity payments begin, you must transfer all contract value out of any GPAs and Special DCA fixed account. FOR RAVA 4 ACCESS - Before annuity payouts begin, you may transfer contract values between the subaccounts, or from the subaccounts to the GPAs at any time. The amount transferred to any GPA must be at least $1,000. - You may not make a transfer to the regular fixed account unless it is part of a model portfolio in which you elect to participate. - You may transfer contract values from any GPA to the subaccounts, or other GPA any time after 60 days of transfer or payment allocation into such GPA. Transfers made more than 30 days before the end of the guarantee period will receive an RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 37 MVA, which may result in a gain or loss of contract value, unless an exception applies (see "The Guarantee Period Accounts (GPAs) -- Market Value Adjustment (MVA)"). - You may not make a transfer to the Special DCA fixed account. - Once annuity payouts begin, you may not make transfers to or from the GPAs, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. When annuity payments begin, you must transfer all contract value out of any GPAs and Special DCA fixed account. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower, too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT BUY A CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU. Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - diluting the value of an investment in an underlying fund in which a subaccount invests; - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer request, if, in our sole judgment, the dollar amount of the transfer request would adversely affect unit values. If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - requiring transfer requests to be submitted only by first-class U.S. mail; - not accepting hand-delivered transfer requests or requests made by overnight mail; - not accepting telephone or electronic transfer requests; - requiring a minimum time period between each transfer; - not accepting transfer requests of an agent acting under power of attorney; - limiting the dollar amount that you may transfer at any one time; - suspending the transfer privilege; or - modifying instructions under an automated transfer program to exclude a restricted fund if you do not provide new instructions. 38 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable accounts are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 39 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers or partial surrenders among your subaccounts or regular fixed account (if available). You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - Automated transfers to the GPAs, the regular fixed account or the Special DCA fixed account are not allowed. - Automated transfers from the regular fixed account to the subaccounts under an automated dollar-cost averaging arrangement may not exceed an amount that, if continued, would deplete the regular fixed account within 12 months. - Automated surrenders may be restricted by applicable law under some contracts. - You may not make additional purchase payments if automated partial surrenders are in effect. - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - If a PN program is in effect, you are not allowed to set up automated transfers except in connection with a Special DCA fixed account. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the regular fixed account) 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and recording calls. We will not allow telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request in good order at our corporate office before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our corporate office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, surrender charges, or any applicable optional rider charges (see "Charges") and 40 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. If you have elected the GWB for Life rider or SecureSource(SM) rider and your partial surrenders in any contract year exceed the permitted surrender amount under the terms of the GWB for Life rider or SecureSource rider, your benefits under the rider may be reduced (see "Optional Benefits"). In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the regular fixed account, in the same proportion as your value in each account correlates to your total contract value, less any GPA or Special DCA fixed account, unless you request otherwise. We will not withdraw money for a partial surrender from any GPAs or Special DCA fixed account you may have, unless insufficient amounts are available from your subaccounts and/or regular fixed account. However, you may request specifically surrender from a GPA or Special DCA fixed account. The minimum contract value after partial surrender is $600. If you elected a SecureSource rider, the minimum contract value after partial surrender is zero and you do not have the option to request from which account to surrender. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - payable to you; - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 2 BY WIRE - request that payment be wired to your bank; - bank account must be in the same ownership as your contract; and - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. Normally, we will send the payment within seven days after receiving your request in good order. However, we may postpone the payment if: - the surrender amount includes a purchase payment check that has not cleared; - the NYSE is closed, except for normal holiday and weekend closings; - trading on the NYSE is restricted, according to SEC rules; - an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or - the SEC permits us to delay payment for the protection of security holders. TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES If the contract is intended to be used in connection with an employer sponsored 403(b) plan, additional rules relating to this contract can be found in the annuity endorsement for tax sheltered 403(b) annuities. Unless we have made special arrangements with your employer, the contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations thereunder, unless we have prior written agreement with the employer. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. In the event we have a written agreement with your employer to administer the plan pursuant to ERISA, special rules apply as set forth in the TSA endorsement. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 41 The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: - you are at least age 59 1/2; - you are disabled as defined in the Code; - you severed employment with the employer who purchased the contract; - the distribution is because of your death; - effective Jan. 1, 2009, the distribution is due to plan termination; or - effective Jan. 1, 2009, you are a military reservist. - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. Loans will not be available if you have selected the GWB for Life, SecureSource or Accumulation Benefit rider. CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our corporate office. If you are a natural person and you own a nonqualified annuity, you may change the annuitant or successor annuitant if the request is made before annuity payments begin and while the existing annuitant is living. The change will become binding on us when we receive and record it. We will honor any change of ownership request received in good order that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the ROPP, MAV, 5-Year MAV, EEB, EEP, Accumulation Benefit, GWB for Life or SecureSource. If you change ownership of your contract, we will terminate the ROPP and EEP. This includes both the EEP Part I benefits and the EEP Part II benefits. (See the description of these terms in "Optional Benefits".) In addition, the terms of the EEB, the MAV and the 5-Year MAV will change due to a change of ownership. If the new owner is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over." We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If the new owner is older than age 75, the MAV and the 5-Year MAV will terminate. If the MAV or the 5-Year MAV on the date of ownership change is greater than the account value on the date of the ownership change, we will set the MAV or the 5-Year MAV equal to the account value. Otherwise, the MAV or the 5-Year MAV value will not change due to a change in ownership. The Accumulation Benefit rider, the GWB for Life rider and SecureSource -- Single Life rider will continue upon change of ownership. The SecureSource -- Joint Life rider, if selected, only allows transfer of the ownership of the annuity contract between covered spouses or their revocable trust(s). If ownership is transferred from a covered spouse to their revocable trust(s), the annuitant must be one of the covered spouses. No other ownership changes are allowed while this rider is in force. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. 42 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS However, if the owner is a trust or custodian, or an employer acting in similar capacity, ownership of the contract may be transferred to the annuitant. BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon your death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If you are age 75 or younger on the date we issue the contract, the beneficiary receives the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If you are age 76 or older on the date we issue the contract, the beneficiary receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. ADJUSTED PARTIAL SURRENDERS PS X DB ------- CV
PS = amount by which the contract value is reduced as a result of the partial surrender. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU ARE AGE 75 OR YOUNGER ON THE CONTRACT EFFECTIVE DATE: - You purchase the contract with a payment of $20,000 - During the second contract year the contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. We calculate the death benefit as follows: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $ 20,000 minus adjusted partial surrenders, calculated as: $1,500 x $20,000 ---------------- = - 1,667 $18,000 for a standard death benefit of: $ 18,333 since this is greater than your contract value of $16,500.
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date that our death claim requirements are fulfilled. We will determine the contract's value using the accumulation unit value we calculate on that valuation date. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse elects to keep the contract as owner, the following describes the standard death benefit: - If your spouse was age 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 43 If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. The SecureSource -- Joint Life rider, if selected, will continue only if the spouse electing the spousal continuation provision of the contract is a covered spouse and continues the contract as the new owner. If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - the payout period does not extend beyond the beneficiary's life or life expectancy. Additionally, the optional SecureSource rider, if selected, will terminate. QUALIFIED ANNUITIES - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own with the contract value equal to the death benefit that would otherwise have been paid, or elect an annuity payout plan or another plan agreed to by us. If your spouse elects to treat the contract as his/her own, the following describes the standard death benefit: - If your spouse was age 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less any applicable rider charges. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. The SecureSource -- Joint Life rider, if selected, will continue only if the spouse electing the spousal continuation provision of the contract is a covered spouse and continues the contract as the new owner. - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. Additionally, the optional SecureSource rider, if selected, will terminate. - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We will pay the death benefit by check unless your beneficiary has chosen to have the death benefit payment directly deposited into a checking account. We pay all proceeds by check (unless the beneficiary has chosen to have death benefit proceeds directly deposited into another Ameriprise Financial, Inc. account). If the beneficiary chooses the checking account option, the proceeds will be deposited into an interest bearing checking account issued by Ameriprise Bank, FSB, member FDIC, unless the beneficiary fails to meet the requirements of using this option. OPTIONAL BENEFITS The assets held in our general account support the guarantees under your contract, including optional death benefits and optional living benefits. To the extent that we are required to pay you amounts in addition to your contract value under these benefits, such amounts will come from our general account assets. You should be aware that our general account is exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit 44 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS risk. The financial statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. OPTIONAL DEATH BENEFITS RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP) The ROPP is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greater of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders. If you are age 76 or older at contract issue, you may choose to add the ROPP to your contract. Generally, you must elect the ROPP at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the ROPP may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the ROPP for new contracts. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. TERMINATING THE ROPP - You may terminate the ROPP rider within 30 days of the first rider anniversary. - You may terminate the ROPP rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - The ROPP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. If you terminate the ROPP, the standard death benefit applies thereafter. For an example, see Appendix D. IF YOUR SPOUSE IS THE SOLE BENEFICIARY, he or she may keep the contract as owner with the contract value equal to the death benefit that would otherwise have been paid under the ROPP. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. IF YOUR SPOUSE WAS AGE 76 OR OLDER AS OF THE DATE WE ISSUED THE CONTRACT, he or she may choose to continue the ROPP. In that case, the ROPP rider charges described in "Charges -- ROPP Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary. Your spouse also has the option of discontinuing the ROPP rider within 30 days of the date he or she elects to continue the contract. If your spouse is age 75 or younger as of the date we issued the contract, the ROPP will terminate. NOTE: For special tax considerations associated with the ROPP, see "Taxes." MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to the GPAs, regular fixed account or Special DCA fixed account values during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If you are age 75 or younger at contract issue, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the MAV for new contracts. On the first contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Thereafter, we increase the maximum anniversary value by any additional purchase payments and reduce it by adjusted partial surrenders. Every contract anniversary after that prior to your 81st birthday, we compare the maximum anniversary value to the current contract value and we reset the maximum anniversary value to the higher amount. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders; or RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 45 - the maximum anniversary value. TERMINATING THE MAV - You may terminate the MAV rider within 30 days of the first rider anniversary. - You may terminate the MAV rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies thereafter. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. MAXIMUM FIVE YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV) The 5-Year MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The 5-Year MAV does not provide any additional benefit before the fifth contract anniversary after the rider effective date. The 5-Year MAV may be of less value if you are older since we stop resetting the maximum five year anniversary value at age 81. Although we stop resetting the maximum five year anniversary value at age 81, the 5-Year MAV rider fee continues to apply until the rider terminates. In addition, the 5-Year MAV does not provide any additional benefit with respect to the GPAs, regular fixed account or Special DCA fixed account values during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the 5-Year MAV is appropriate for your situation. If you are age 75 or younger at contract issue, you may choose to add the 5-Year MAV to your contract. Generally, you must elect the 5-Year MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the 5-Year MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the 5-Year MAV for new contracts. On the fifth contract anniversary after the rider effective date we set the maximum five year anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Thereafter, we increase the maximum anniversary value by any additional purchase payments and reduce it by adjusted partial surrenders. Every fifth contract anniversary after that, through age 80, we compare the maximum five year anniversary value to the current contract value and we reset the maximum five year anniversary value to the higher amount. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value, less any purchase payment credits subject to reversal, less any applicable rider charges; or - purchase payments minus adjusted partial surrenders; or - the maximum five year anniversary value. TERMINATING THE 5-YEAR MAV - You may terminate the 5-Year MAV rider within 30 days of the first rider anniversary. - You may terminate the 5-Year MAV rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - The 5-Year MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The 5-Year MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the 5-Year MAV, the standard death benefit applies thereafter. For an example, see Appendix D. 46 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the 5-Year MAV. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the 5-Year MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the 5-Year MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the 5-Year MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the 5-Year MAV rider, the contract value will be increased to the 5- Year MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides for reduced benefits if you are age 70 or older at the rider effective date and it does not provide any additional benefit before the first rider anniversary. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEB is appropriate for your situation. If this EEB rider is available in your state and you are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract according to terms determined by us and at our sole discretion. You may not select this rider if you select the EEP. We reserve the right to discontinue offering the EEB for new contracts. The EEB provides that if you die after the first rider anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit"), the MAV death benefit amount, if applicable, or the 5-Year MAV death benefit amount, if applicable, PLUS - 40% of your earnings at death if you were under age 70 on the rider effective date; or - 15% of your earnings at death if you were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB AND EEP: If the rider effective date for the EEB or EEP is the contract issue date, earnings at death is an amount equal to: - the standard death benefit amount, the MAV death benefit amount, or the 5- Year MAV death benefit amount if applicable (the "death benefit amount") - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount - MINUS the greater of: a) the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or b) an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 47 The earnings at death may not be less than zero and may not be more than 250% multiplied by: - the greater of: a) the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or b) an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - You may terminate the EEB rider within 30 days of the first rider anniversary. - You may terminate the EEB rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If your spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract, he or she may choose to continue the EEB. In this case, the following conditions will apply: - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP) The EEP is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEP provides for reduced benefits if you are age 70 or older at the rider effective date. It does not provide any additional benefit before the first rider anniversary and it does not provide any benefit beyond what is offered under the EEB during the second rider year. The EEP also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because part of the benefit paid by the EEP is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEP is appropriate for your situation. If this EEP rider is available in your state and you are age 75 or younger at contract issue, you may choose to add the EEP to your contract. You must elect the EEP at the time you purchase your contract and your rider effective date will be the contract issue date. THIS RIDER IS ONLY AVAILABLE UNDER ANNUITIES PURCHASED THROUGH AN EXCHANGE OR DIRECT TRANSFER FROM ANOTHER ANNUITY OR A LIFE INSURANCE POLICY. You may not select this rider if you select the EEB. We reserve the right to discontinue offering the EEP for new contracts. The EEP provides that if you die after the first rider anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - EEP Part I benefits, which equal the benefits payable under the EEB described above; PLUS - EEP Part II benefits, which equal a percentage of exchange purchase payments identified at issue not previously surrendered as follows: 48 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
PERCENTAGE IF YOU ARE PERCENTAGE IF YOU ARE RIDER YEAR UNDER AGE 70 ON THE RIDER EFFECTIVE DATE 70 OR OLDER ON THE RIDER EFFECTIVE DATE One and Two 0% 0% Three and Four 10% 3.75% Five or more 20% 7.5%
Additional death benefits payable under the EEP are not included in the adjusted partial surrender calculation. If after 6 months, no exchange purchase payments have been received, we will contact you and you will have an additional 30 days to follow-up on exchange purchase payments identified at issue but not received by us. If after these 30 days we have not received any exchange purchase payments, we will convert the EEP rider into an EEB. Another way to describe the benefits payable under the EEP rider is as follows: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Death Benefit"), the MAV death benefit amount, or 5-Year MAV death benefit amount, if applicable, PLUS
IF YOU ARE UNDER AGE 70 RIDER YEAR ON THE RIDER EFFECTIVE DATE, ADD ... 1 Zero 2 40% x earnings at death (see above) 3 & 4 40% x (earnings at death + 25% of exchange purchase payment*) 5+ 40% x (earnings at death + 50% of exchange purchase payment*) IF YOU ARE AGE 70 RIDER YEAR OR OLDER ON THE RIDER EFFECTIVE DATE, ADD ... 1 Zero 2 15% x earnings at death 3 & 4 15% x (earnings at death + 25% of exchange purchase payment*) 5+ 15% x (earnings at death + 50% of exchange purchase payment*)
* Exchange purchase payments are purchase payments exchanged from another annuity or policy that are identified at issue and not previously surrendered. We are not responsible for identifying exchange purchase payments if we did not receive proper notification from the company from which the purchase payments are exchanged. TERMINATING THE EEP - You may terminate the EEP rider within 30 days of the first rider anniversary after the rider effective date. - You may terminate the EEP rider within 30 days of any rider anniversary beginning with the seventh rider anniversary. - The EEP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEP rider will terminate in the case of an ownership change. - The EEP rider will terminate in the case of the spousal continuation if the new owner is age 76 or older. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEP. If your spouse has reached age 76 at the time he or she elects to continue the contract, the EEP rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she cannot continue the EEP. However, he or she may choose to convert the EEP rider into an EEB. In this case, the following conditions will apply: - the EEB rider will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the EEB rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEP rider. If your spouse chooses not to convert the EEP rider into an EEB, the standard death benefit amount (or the MAV or 5-Year MAV death benefit amount, if applicable,) will apply. NOTE: For special tax considerations associated with the EEP, see "Taxes." RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 49 OPTIONAL LIVING BENEFITS -- CURRENTLY OFFERED SECURESOURCE RIDERS THE SECURESOURCE RIDERS ARE NOT AVAILABLE FOR RAVA4 ACCESS. There are two optional SecureSource riders available under your contract: - SecureSource -- Single Life; or - SecureSource -- Joint Life. The information in this section applies to both SecureSource riders, unless otherwise noted. The SecureSource -- Single Life rider covers one person. The SecureSource -- Joint Life Rider covers two spouses jointly who are named at contract issue. You may elect only the SecureSource -- Single Life rider or the SecureSource -- Joint Life rider, not both, and you may not switch riders later. The SecureSource rider is an optional benefit that you may select for an additional annual charge if(1): - SINGLE LIFE: you are 80 or younger on the contract issue date, or , if an owner is a nonnatural person, then the annuitant is age 80 or younger on the contract issue date ; or - JOINT LIFE: you and your spouse are 80 or younger on the contract issue date. (1)The SecureSource rider is not available under an inherited qualified annuity. You must elect the rider when you purchase your contract. The rider effective date will be the contract issue date. The SecureSource rider guarantees (unless the rider is terminated. See "Rider Termination" heading below.) that regardless of the investment performance of your contract you will be able to withdraw up to a certain amount each year from the contract before the annuity payouts begin until: - SINGLE LIFE: you have recovered at minimum all of your purchase payments plus any purchase payment credit or, if later, until death (see "At Death" heading below) -- even if the contract value is zero. - JOINT LIFE: you have recovered at minimum all of your purchase payments plus any purchase payment credit or, if later, until the death of the last surviving covered spouse (see "Joint Life only: Covered Spouses" and "At Death" headings below) -- even if the contract value is zero. Your contract provides for annuity payouts to begin on the settlement date (see "Buying Your Contract -- Settlement Date"). Before the settlement date, you have the right to surrender some or all of your contract value, less applicable administrative, surrender and rider charges imposed under the contract at the time of the surrender (see "Making the Most of Your Contract -- Surrenders"). Because your contract value will fluctuate depending on the performance of the underlying funds in which the subaccounts invest, the contract itself does not guarantee that you will be able to take a certain surrender amount each year before the annuity payouts begin, nor does it guarantee the length of time over which such surrenders can be made before the annuity payouts begin. For the purposes of this rider, the term "withdrawal" is equal to the term "surrender" in the contract or any other riders. Withdrawals will adjust contract values and benefits in the same manner as surrenders. The SecureSource rider may be appropriate for you if you intend to make periodic withdrawals from your annuity contract and wish to ensure that market performance will not adversely affect your ability to withdraw your principal over time. Under the terms of the SecureSource rider, the calculation of the amount which can be withdrawn in each contract year varies depending on several factors, including but not limited to the waiting period (see "Waiting period" heading below) and whether or not the lifetime withdrawal benefit has become effective: (1) The basic withdrawal benefit gives you the right to take limited withdrawals in each contract year until the lifetime withdrawal benefit becomes effective and guarantees that over time the withdrawals will total an amount equal to, at minimum, your purchase payments plus any purchase payment credits (unless the rider is terminated. See "Rider Termination" heading below). Key terms associated with the basic withdrawal benefit are "Guaranteed Benefit Payment (GBP)", "Remaining Benefit Payment (RBP)", "Guaranteed Benefit Amount (GBA)" and "Remaining Benefit Amount (RBA)." See these headings below for more information. (2) The lifetime withdrawal benefit gives you the right, under certain limited circumstances defined in the rider, to take limited withdrawals until the later of: - SINGLE LIFE: death (see "At Death" heading below) or until the RBA (under the basic withdrawal benefit) is reduced to zero (unless the rider is terminated. See "Rider Termination" heading below); - JOINT LIFE: death of the last surviving covered spouse (see "At Death" heading below) or until the RBA (under the basic withdrawal benefit) is reduced to zero (unless the rider is terminated. See "Rider Termination" heading below). 50 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Key terms associated with the lifetime withdrawal benefit are "Annual Lifetime Payment (ALP)", "Remaining Annual Lifetime Payment (RALP)", "Single Life only: Covered Person", "Joint Life only: Covered Spouses" and "Annual Lifetime Payment Attained Age (ALPAA)." See these headings below for more information. Only the basic withdrawal benefit will be in effect prior to the date that the lifetime withdrawal benefit becomes effective. The lifetime withdrawal benefit becomes effective automatically on the rider anniversary date after the: - SINGLE LIFE: covered person reaches age 65, or the rider effective date if the covered person is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" heading below); - JOINT LIFE: younger covered spouse reaches age 65, or the rider effective date if the younger covered spouse is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" and "Annual Lifetime Payment (ALP)" headings below). Provided annuity payouts have not begun, the SecureSource rider guarantees that you may take the following withdrawal amounts each contract year: - Before the establishment of the ALP, the rider guarantees that each year you have the option to cumulatively withdraw an amount equal to the value of the RBP at the beginning of the contract year; - After the establishment of the ALP, the rider guarantees that each year you have the option to cumulatively withdraw an amount equal to the value of the RALP or the RBP at the beginning of the contract year, but the rider does not guarantee withdrawal of the sum of both the RALP and the RBP in a contract year. If you withdraw less than the allowed withdrawal amount in a contract year, the unused portion cannot be carried over to the next contract year. As long as your withdrawals in each contract year do not exceed the allowed annual withdrawal amount under the rider: - SINGLE LIFE: and there has not been a contract ownership change or spousal continuation of the contract, the guaranteed amounts available for withdrawal will not decrease; - JOINT LIFE: the guaranteed amounts available for withdrawal will not decrease. If you withdraw more than the allowed annual withdrawal amount in a contract year, we call this an "excess withdrawal" under the rider. Excess withdrawals trigger an adjustment of a benefit's guaranteed amount, which may cause it to be reduced (see "GBA Excess Withdrawal Processing," "RBA Excess Withdrawal Processing," and "ALP Excess Withdrawal Processing" headings below). Please note that basic withdrawal benefit and lifetime withdrawal benefit each has its own definition of the allowed annual withdrawal amount. Therefore a withdrawal may be considered an excess withdrawal for purposes of the lifetime withdrawal benefit only, the basic withdrawal benefit only, or both. If your withdrawals exceed the greater of the RBP or the RALP, surrender charges under the terms of the contract may apply (see "Charges -- Surrender Charges"). The amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. Market value adjustments, if applicable, will also be made (see "Guarantee Period Accounts (GPAs) -- Market Value Adjustment"). We pay you the amount you request. Any withdrawals you take under the contract will reduce the value of the death benefits (see "Benefits in Case of Death"). Upon full surrender of the contract, you will receive the remaining contract value less any applicable charges (see "Making the Most of Your Contract -- Surrenders"). The rider's guaranteed amounts can be increased at the specified intervals if your contract value has increased. An annual step up feature is available at each contract anniversary, subject to certain conditions, and may be applied automatically to your contract or may require you to elect the step up (see "Annual Step Up" heading below). If you exercise the annual step up election, the spousal continuation step up election (see "Spousal Continuation Step Up" heading below) or change your Portfolio Navigator model portfolio, the rider charge may change (see "Charges"). If you take withdrawals during the waiting period, any prior steps ups applied will be reversed and step ups will not be available until the end of the waiting period. You may take withdrawals after the waiting period without reversal of prior step ups. You should consider whether a SecureSource rider is appropriate for you because: - LIFETIME WITHDRAWAL BENEFIT LIMITATIONS: The lifetime withdrawal benefit is subject to certain limitations, including but not limited to: (a) SINGLE LIFE: Once the contract value equals zero, payments are made for as long as the oldest owner or, if an owner is a nonnatural person, the oldest annuitant is living (see "If Contract Value Reduces to Zero" heading below). However, if the contract value is greater than zero, the lifetime withdrawal benefit terminates when a death benefit becomes payable (see "At Death" heading below). Therefore, if there are multiple contract owners, the rider may terminate or the lifetime RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 51 withdrawal benefit may be reduced when one of the contract owners dies the benefit terminates even though other contract owners are still living (except if the contract is continued under the spousal continuation provision of the contract). JOINT LIFE: Once the contract value equals zero, payments are made for as long as either covered spouse is living (see "If Contract Value Reduces to Zero" heading below). However, if the contract value is greater than zero, the lifetime withdrawal benefit terminates at the death of the last surviving covered spouse (see "At Death" heading below). (b) Excess withdrawals can reduce the ALP to zero even though the GBA, RBA, GBP and/or RBP values are greater than zero. If the both the ALP and the contract value are zero, the lifetime withdrawal benefit will terminate. (c) When the lifetime withdrawal benefit is first established, the initial ALP is based on (i) SINGLE LIFE: the basic withdrawal benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below), unless there has been a spousal continuation or ownership change; or (ii) JOINT LIFE: the basic withdrawal benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below). Any withdrawal you take before the ALP is established reduces the RBA and therefore may result in a lower amount of lifetime withdrawals you are allowed to take. (d) Withdrawals can reduce both the contract value and the RBA to zero prior to the establishment of the ALP. If this happens, the contract and the rider will terminate. - USE OF PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM REQUIRED: You must elect one of the model portfolios of the Portfolio Navigator. This requirement limits your choice of subaccounts, regular fixed account and GPAs (if available) to those that are in the model portfolio you select. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the regular fixed account that are available under the contract to contract owners who do not elect the rider. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program.") You may allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA fixed account, when available (see "The Special DCA Fixed Account"), and we will make monthly transfers into the model portfolio you have chosen. You may make two elective model portfolio changes per contract year; we reserve the right to limit elective model portfolio changes if required to comply with the written instructions of a fund (see "Market Timing"). You can allocate your contract value to any available model portfolio during the following times: (1) prior to your first withdrawal and (2) following a benefit reset as described below but prior to any subsequent withdrawal. During these accumulation phases, you may request to change your model portfolio to any available model portfolio. Immediately following a withdrawal your contract value will be reallocated to the target model portfolio as shown in your contract if your current model portfolio is more aggressive than the target model portfolio. This automatic reallocation is not included in the total number of allowed model changes per contract year and will not cause your rider fee to increase. The target model portfolio is currently the Moderate model. We reserve the right to change the target model portfolio to a model portfolio that is more aggressive than the current target model portfolio after 30 days written notice. After you have taken a withdrawal and prior to any benefit reset as described below, you are in a withdrawal phase. During withdrawal phases you may request to change your model portfolio to the target model portfolio or any model portfolio that is more conservative than the target model portfolio without a benefit reset as described below. If you are in a withdrawal phase and you choose to allocate your contract value to a model portfolio that is more aggressive than the target model portfolio, your rider benefit will be reset as follows: (a) the total GBA will be reset to the lesser of its current value or the contract value; and (b) the total RBA will be reset to the lesser of its current value or the contract value; and (c) the ALP, if established, will be reset to the lesser of its current value or 6% of the contract value; and (d) the GBP will be recalculated as described below, based on the reset GBA and RBA; and (e) the RBP will be recalculated as the reset GBP less all prior withdrawals made during the current contract year, but not less than zero; and (f) the RALP will be recalculated as the reset ALP less all prior withdrawals made during the current contract year, but not less than zero. You may request to change your model portfolio by written request on an authorized form or by another method agreed to by us. - LIMITATIONS ON PURCHASE OF OTHER RIDERS UNDER YOUR CONTRACT: You may elect only the SecureSource -- Single Life rider or the SecureSource -- Joint Life rider. If you elect the SecureSource rider, you may not elect the Accumulation Benefit rider. - NON-CANCELABLE: Once elected, the SecureSource rider may not be cancelled (except as provided under "Rider Termination" heading below) and the fee will continue to be deducted until the contract or rider is terminated or the contract value 52 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS reduces to zero (described below). Dissolution of marriage does not terminate the SecureSource -- Joint Life rider and will not reduce the fee we charge for this rider. The benefit under the SecureSource -- Joint Life rider continues for the covered spouse who is the owner of the contract (or annuitant in the case of nonnatural ownership). The rider will terminate at the death of the contract owner (or annuitant in the case of nonnatural ownership) because the original spouse will be unable to elect the spousal continuation provision of the contract (see "Joint Life only: Covered Spouses" below). - JOINT LIFE: LIMITATIONS ON CONTRACT OWNERS, ANNUITANTS AND BENEFICIARIES: Since the joint life benefit will terminate unless the surviving covered spouse continues the contract under the spousal continuation provision of the contract upon the owner's death, only ownership arrangements that permit such continuation are allowed at rider issue. In general, the covered spouses should be joint owners, or one covered spouse should be the owner and the other covered spouse should be named as the sole primary beneficiary. For non- natural ownership arrangements that allow for spousal continuation one covered spouse should be the annuitant and the other covered spouse should be the sole primary beneficiary. For revocable trust ownerships, the grantor of the trust must be the annuitant and the beneficiary must either be the annuitant's spouse or a trust that names the annuitant's spouse as the sole primary beneficiary. You are responsible for establishing ownership arrangements that will allow for spousal continuation. If you select the SecureSource -- Joint Life rider, please consider carefully whether or not you wish to change the beneficiary of your annuity contract. The rider will terminate if the surviving covered spouse can not utilize the spousal continuation provision of the contract when the death benefit is payable. - LIMITATIONS ON PURCHASE PAYMENTS: We reserve the right to limit the cumulative amount of purchase payments, subject to state restrictions. For current limitations, see "Buying Your Contract -- Purchase Payments." - INTERACTION WITH TOTAL FREE AMOUNT (TFA) CONTRACT PROVISION: The TFA is the amount you are allowed to surrender from the contract in each contract year without incurring a surrender charge (see "Charges -- Surrender Charge"). The TFA may be greater than the RBP or RALP under this rider. Any amount you withdraw in a contract year under the contract's TFA provision that exceeds the RBP or RALP is subject to the excess withdrawal processing described below for the GBA, RBA and ALP. You should consult your tax advisor before you select this optional rider if you have any questions about the use of the rider in your tax situation because: - TAX CONSIDERATIONS FOR NONQUALIFIED ANNUITIES: Under current federal income tax law, withdrawals under nonqualified annuities, including withdrawals taken from the contract under the terms of the rider, are treated less favorably than amounts received as annuity payments under the contract (see "Taxes -- Nonqualified Annuities"). Also, withdrawals before age 59 1/2 may incur a 10% IRS early withdrawal penalty and may be considered taxable income. You should consult your tax advisor before you select this optional rider if you have any questions about the use of the rider in your tax situation. - TAX CONSIDERATIONS FOR QUALIFIED ANNUITIES: Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). If you have a qualified annuity, you may need to take an RMD that exceeds the guaranteed amount of withdrawal available under the rider and such withdrawals may reduce future benefits guaranteed under the rider. While the rider permits certain excess withdrawals to be made for the purpose of satisfying RMD requirements for your contract alone without reducing future benefits guaranteed under the rider, there can be no guarantee that changes in the federal income tax law after the effective date of the rider will not require a larger RMD to be taken, in which case, future guaranteed withdrawals under the rider could be reduced. See Appendix F for additional information. - LIMITATIONS ON TSAS: Your right to take withdrawals is restricted if your contract is a TSA (see "TSA -- Special Provisions"). Therefore, a SecureSource rider may be of limited value to you. KEY TERMS AND PROVISIONS OF THE SECURESOURCE RIDER ARE DESCRIBED BELOW: WITHDRAWAL: The amount by which your contract value is reduced as a result of any withdrawal request. It may differ from the amount of your request due to any surrender charge and any market value adjustment. WAITING PERIOD: The period of time starting on the rider effective date during which the annual step up is not available if you take withdrawals. The current waiting period is three years. GUARANTEED BENEFIT AMOUNT (GBA): The total cumulative withdrawals guaranteed by the rider under the basic benefit. The maximum GBA is $5,000,000. The GBA cannot be withdrawn and is not payable as a death benefit. It is an interim value used to calculate the amount available for withdrawals each year under the basic withdrawal benefit (see "Guaranteed Benefit Payment" below). At any time, the total GBA is the sum of the individual GBAs associated with each purchase payment. THE GBA IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - At contract issue -- the GBA is equal to the initial purchase payment, plus any purchase payment credit. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 53 - When you make additional purchase payments -- each additional purchase payment has its own GBA equal to the amount of the purchase payment, plus any purchase payment credit. - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - When an individual RBA is reduced to zero -- the GBA that is associated with that RBA will also be set to zero. - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the GBA associated with each purchase payment will be reset to the amount of that purchase payment, plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBA remains unchanged. If there have been multiple purchase payments, both the total GBA and each payment's GBA remain unchanged. (b) is greater than the total RBP -- GBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. If the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. GBA EXCESS WITHDRAWAL PROCESSING The total GBA will automatically be reset to the lesser of (a) the total GBA immediately prior to the withdrawal; or (b) the contract value immediately following the withdrawal. If there have been multiple purchase payments, each payment's GBA after the withdrawal will be reset to equal that payment's RBA after the withdrawal plus (a) times (b), where: (a) is the ratio of the total GBA after the withdrawal less the total RBA after the withdrawal to the total GBA before the withdrawal less the total RBA after the withdrawal; and (b) is each payment's GBA before the withdrawal less that payment's RBA after the withdrawal. REMAINING BENEFIT AMOUNT (RBA): Each withdrawal you make reduces the amount that is guaranteed by the rider as future withdrawals. At any point in time, the RBA equals the amount of GBA that remains available for withdrawals for the remainder of the contract's life, and total RBA is the sum of the individual RBAs associated with each purchase payment. The maximum RBA is $5,000,000. THE RBA IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - At contract issue -- the RBA is equal to the initial purchase payment plus any purchase payment credit. - When you make additional purchase payments -- each additional purchase payment has its own RBA initially set equal to that payment's GBA (the amount of the purchase payment, plus any purchase payment credit). - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the RBA associated with each purchase payment will be reset to the amount of that purchase payment, plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the total RBA is reduced by the amount of the withdrawal. If there have been multiple purchase payments, each payment's RBA is reduced in proportion to its RBP. (b) is greater than the total RBP -- RBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. Please note that if the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. RBA EXCESS WITHDRAWAL PROCESSING The total RBA will automatically be reset to the lesser of (a) the contract value immediately following the withdrawal, or (b) the total RBA immediately prior to the withdrawal, less the amount of the withdrawal. If there have been multiple purchase payments, both the total RBA and each payment's RBA will be reset. The total RBA will be reset according to the excess withdrawal processing described above. Each payment's RBA will be reset in the following manner: 1. The withdrawal amount up to the total RBP is taken out of each RBA bucket in proportion to its individual RBP at the time of the withdrawal; and 2. The withdrawal amount above the total RBP and any amount determined by the excess withdrawal processing are taken out of each RBA bucket in proportion to its RBA at the time of the withdrawal. 54 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS GUARANTEED BENEFIT PAYMENT (GBP): At any time, the amount available for withdrawal in each contract year after the waiting period, until the RBA is reduced to zero, under the basic withdrawal benefit. At any point in time, each purchase payment has its own GBP, which is equal to the lesser of that payment's RBA or 7% of that payment's GBA, and the total GBP is the sum of the individual GBPs. During the waiting period, the guaranteed annual withdrawal amount may be less than the GBP due to the limitations the waiting period imposes on your ability to utilize both annual step-ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual withdrawal amount during the waiting period is equal to the value of the RBP at the beginning of the contract year. THE GBP IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - At contract issue -- the GBP is established as 7% of the GBA value. - At each contract anniversary -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value. - When you make additional purchase payments -- each additional purchase payment has its own GBP equal to the purchase payment amount, plus any purchase payment credit multiplied by 7%. - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - When an individual RBA is reduced to zero -- the GBP associated with that RBA will also be reset to zero. - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the GBA and the RBA associated with each purchase payment will be reset to the amount of that purchase payment plus any purchase payment credit. Each payment's GBP will be reset to 7% of the sum of purchase payment and any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBP remains unchanged. (b) is greater than the total RBP -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value, based on the RBA and GBA after the withdrawal. If the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. REMAINING BENEFIT PAYMENT (RBP): The amount available for withdrawal for the remainder of the contract year under the basic withdrawal benefit. At any point in time, the total RBP is the sum of the RBPs for each purchase payment. During the waiting period, when the guaranteed amount may be less than the GBP, the value of the RBP at the beginning of the contract year will be that amount that is actually guaranteed each contract year. THE RBP IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - At the beginning of each contract year during the waiting period and prior to any withdrawal -- the RBP for each purchase payment is set equal to that purchase payment plus any purchase payment credit, multiplied by 7%. - At the beginning of any other contract year -- the RBP for each purchase payment is set equal to that purchase payment's GBP. - When you make additional purchase payments -- each additional purchase payment has its own RBP equal to that payment's GBP. - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - At spousal continuation -- (see "Spousal Option to Continue the Contract" heading below). - When an individual RBA is reduced to zero -- the RBP associated with that RBA will also be reset to zero. - When you make any withdrawal -- the total RBP is reset to equal the total RBP immediately prior to the withdrawal less the amount of the withdrawal, but not less than zero. If there have been multiple purchase payments, each payment's RBP is reduced proportionately. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RBP, GBA EXCESS WITHDRAWAL PROCESSING AND RBA EXCESS WITHDRAWAL PROCESSING ARE APPLIED and the amount available for future withdrawals for the remainder of the contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in the excess withdrawal processing, the applicable RBP will not yet reflect the amount of the current withdrawal. SINGLE LIFE ONLY: COVERED PERSON: The person whose life is used to determine when the ALP is established, and the duration of the ALP payments (see "Annual Lifetime Payment (ALP)" heading below). The covered person is the oldest contract owner. If the owner is a nonnatural person, e.g., a trust or corporation, the covered person is the oldest annuitant. A spousal continuation or a change of contract ownership may reduce the amount of the lifetime withdrawal benefit and may change the covered person. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 55 JOINT LIFE ONLY: COVERED SPOUSES: The contract owner and his or her legally married spouse as defined under federal law, as named on the application and as shown in the contract for as long as the marriage is valid and in effect. If the contract owner is a nonnatural person (e.g., a revocable trust), the covered spouses are the annuitant and the legally married spouse of the annuitant. The covered spouses lives are used to determine when the ALP is established, and the duration of the ALP payments (see "Annual Lifetime Payment (ALP)" heading below). The covered spouses are established on the rider effective date and cannot be changed. ANNUAL LIFETIME PAYMENT ATTAINED AGE (ALPAA): - SINGLE LIFE: The covered person's age after which time the lifetime benefit can be established. Currently, the lifetime benefit can be established on the later of the contract effective date or the contract anniversary date on/following the date the covered person reaches age 65. - JOINT LIFE: The age of the younger covered spouse at which time the lifetime benefit is established. ANNUAL LIFETIME PAYMENT (ALP): Once established, the ALP under the lifetime withdrawal benefit is at any time the amount available for withdrawals in each contract year after the waiting period until the later of: - SINGLE LIFE: death; or - JOINT LIFE: death of the last surviving covered spouse; or - the RBA is reduced to zero. The maximum ALP is $300,000. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the ALP is zero. During the waiting period, the guaranteed annual lifetime withdrawal amount may be less than the ALP due to the limitations the waiting period imposes on your ability to utilize both annual step-ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual lifetime withdrawal amount during the waiting period is equal to the value of the RALP at the beginning of the contract year. THE ALP IS DETERMINED AT THE FOLLOWING TIMES: - SINGLE LIFE: The later of the contract effective date or the contract anniversary date on/following the date the covered person reaches age 65 -- the ALP is established as 6% of the total RBA. - JOINT LIFE: The ALP is established as 6% of the total RBA on the earliest of the following dates: (a) the rider effective date if the younger covered spouse has already reached age 65. (b) the rider anniversary on/following the date the younger covered spouse reaches age 65. (c) upon the first death of a covered spouse, then (1) the date we receive written request when the death benefit is not payable and the surviving covered spouse has already reached age 65; or (2) the date spousal continuation is effective when the death benefit is payable and the surviving covered spouse has already reached age 65; or (3) the rider anniversary on/following the date the surviving covered spouse reaches age 65. (d) Following dissolution of marriage of the covered spouses, (1) the date we receive written request if the remaining covered spouse who is the owner (or annuitant in the case of nonnatural ownership) has already reached age 65; or (2) the rider anniversary on/following the date the remaining covered spouse who is the owner (or annuitant in the case of nonnatural ownership) reaches age 65. - When you make additional purchase payments -- each additional purchase payment increases the ALP by 6% of the sum of the purchase payment plus any purchase payment credits. - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - SINGLE LIFE: At spousal continuation or contract ownership change -- (see "Spousal Option to Continue the Contract" and "Contract Ownership Change" headings below). - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the ALP will be reset to equal total purchase payments plus any purchase payment credit, multiplied by 6%. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the RALP -- the ALP remains unchanged. 56 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS (b) is greater than the RALP -- ALP EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE ALP. If the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. ALP EXCESS WITHDRAWAL PROCESSING The ALP is reset to the lesser of the ALP immediately prior to the withdrawal, or 6% of the contract value immediately following the withdrawal. REMAINING ANNUAL LIFETIME PAYMENT (RALP): The amount available for withdrawal for the remainder of the contract year under the lifetime withdrawal benefit. During the waiting period, when the guaranteed annual withdrawal amount may be less than the ALP, the value of the RALP at the beginning of the contract year will be the amount that is actually guaranteed each contract year. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the RALP is zero. - THE RALP IS DETERMINED AT THE FOLLOWING TIMES: - The RALP is established at the same time as the ALP, and: (a) During the waiting period and prior to any withdrawals -- the RALP is established equal to the purchase payments, plus purchase payment credit, multiplied by 6%. (b) At any other time -- the RALP is established equal to the ALP less all prior withdrawals made in the contract year but not less than zero. - At the beginning of each contract year during the waiting period and prior to any withdrawals -- the RALP is set equal to the total purchase payments plus any purchase payment credit, multiplied by 6%. - At the beginning of any other contract year -- the RALP is set equal to ALP. - When you make additional purchase payments -- each additional purchase payment increases the RALP by 6% of the sum of the purchase payment amount plus any purchase payment credit. - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - When you make any withdrawal -- the RALP equals the RALP immediately prior to the withdrawal less the amount of the withdrawal but not less than zero. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RALP, ALP EXCESS WITHDRAWAL PROCESSING IS APPLIED and may reduce the amount available for future withdrawals. When determining if a withdrawal will result in excess withdrawal processing, the applicable RALP will not yet reflect the amount of the current withdrawal. REQUIRED MINIMUM DISTRIBUTIONS (RMD): If you are taking RMDs from your contract and the RMD calculated separately for your contract is greater than the RBP or the RALP on the most recent contract anniversary, the portion of the RMD that exceeds the RBP or RALP on the most recent rider anniversary will not be subject to excess withdrawal processing provided that the following conditions are met: - The RMD is for your contract alone; - The RMD is based on your recalculated life expectancy taken from the Uniform Lifetime Table under the Code; and - The RMD amount is otherwise based on the requirements of section 401(a) (9), related Code provisions and regulations there under that were in effect on the effective date of the rider. RMD rules follow the calendar year which most likely does not coincide with your contract year and therefore may limit when you can take your RMD and not be subject to excess withdrawal processing. Withdrawal amounts greater than the RBP or RALP on the contract anniversary date that do not meet these conditions will result in excess withdrawal processing as described above. See Appendix F for additional information. STEP UP DATE: The date any step up becomes effective, and depends on the type of step up being applied (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). ANNUAL STEP UP: Beginning with the first contract anniversary, an increase of the GBA, RBA, GBP, RBP, ALP and/or RALP values may be available. A step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be withdrawn or paid upon death. Rather, a step up determines the current values of the GBA, RBA, GBP, RBP, ALP and RALP, and may extend the payment period or increase the allowable payment. The annual step up may be available as described below, subject to the following rules: - The annual step up is effective on the step up date. - Only one step up is allowed each contract year. - If you take any withdrawals during the waiting period, any previously applied step ups will be reversed and the Annual step up will not be available until the end of the waiting period. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 57 - On any rider anniversary where the RBA or, if established, the ALP would increase and the application of the step up would not increase the rider charge, the annual step up will be automatically applied to your contract, and the step up date is the contract anniversary date. - If the application of the step up would increase the rider charge, the annual step up is not automatically applied. Instead, you have the option to step up for 30 days after the contract anniversary as long as either the contract value is greater than the total RBA or 6% of the contract value is greater than the ALP, if established, on the step-up date. If you exercise the elective annual step up option, you will pay the rider charge in effect on the step up date. If you wish to exercise the elective annual step up option, we must receive a request from you or your financial advisor. The step up date is the date we receive your request to step up. If your request is received after the close of business, the step up date will be the next valuation day. - The ALP and RALP are not eligible for step ups until they are established. Prior to being established, the ALP and RALP values are both zero. - Please note it is possible for the ALP to step up even if the RBA or GBA do not step up, and it is also possible for the RBA and GBA to step up even if the ALP does not step up. The annual step up resets the GBA, RBA, GBP, RBP, ALP and RALP values as follows: - The total RBA will be reset to the greater of the total RBA immediately prior to the step up date or the contract value on the step up date. - The total GBA will be reset to the greater of the total GBA immediately prior to the step up date or the contract value on the step up date. - The total GBP will be reset using the calculation as described above based on the increased GBA and RBA. - The total RBP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RBP will not be affected by the step up. (b) At any other time, the RBP will be reset to the increased GBP less all prior withdrawals made in the current contract year, but not less than zero. - The ALP will be reset to the greater of the ALP immediately prior to the step up date or 6% of the contract value on the step up date. - The RALP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RALP will not be affected by the step up. (b) At any other time, the RALP will be reset to the increased ALP less all prior withdrawals made in the current contract year, but not less than zero. SPOUSAL OPTION TO CONTINUE THE CONTRACT UPON OWNER'S DEATH: SINGLE LIFE: If a surviving spouse elects to continue the contract and continues the contract as the new owner under the spousal continuation provision of the contract, the SecureSource -- Single Life rider also continues. When the spouse elects to continue the contract, any remaining waiting period is cancelled and any waiting period limitations on withdrawals and step-ups terminate; if the covered person changes due to a spousal continuation the GBA, RBA, GBP, RBP, ALP and RALP values are affected as follows: - The GBA, RBA and GBP values remain unchanged. - The RBP is automatically reset to the GBP less all prior withdrawals made in the current contract year, but not less than zero. - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the date of continuation -- the ALP will be established on the contract anniversary following the date the covered person reaches age 65 as the lesser of the RBA or the contract anniversary value, multiplied by 6%. The RALP will be established on the same date equal to the ALP. - If the ALP has not yet been established but the new covered person is age 65 or older as of the date of continuation -- the ALP will be established on the date of continuation as the lesser of the RBA or the contract value, multiplied by 6%. The RALP will be established on the same date in an amount equal to the ALP less all prior withdrawals made in the current contract year, but not less than zero. - If the ALP has been established but the new covered person has not yet reached age 65 as of the date of continuation -- the ALP and RALP will be automatically reset to zero for the period of time beginning with the date of continuation and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%, and the RALP will be reset to the ALP. - If the ALP has been established and the new covered person is age 65 or older as of the date of continuation -- the ALP will be automatically reset to the lesser of the current ALP or 6% of the contract value on the date of continuation. The RALP will be reset to the ALP less all prior withdrawals made in the current contract year, but not less than zero. 58 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Please note that the lifetime withdrawal benefit amount may be reduced as a result of the spousal continuation. JOINT LIFE: If a surviving spouse is a covered spouse and elects the spousal continuation provision of the contract as the new owner, the SecureSource -- Joint Life rider also continues. When the spouse elects to continue the contract, any remaining waiting period is cancelled and any waiting period limitations on withdrawals and step-ups terminate. The surviving covered spouse can name a new beneficiary; however, a new covered spouse cannot be added to the rider. SPOUSAL CONTINUATION STEP UP: At the time of spousal continuation, a step-up may be available. All annual step-up rules (see "Annual Step-Up" heading above), other than those that apply to the waiting period, also apply to the spousal continuation step-up. If the spousal continuation step-up is processed automatically, the step-up date is the valuation date spousal continuation is effective. If not, the spouse must elect the step up and must do so within 30 days of the spousal continuation date. If the spouse elects the spousal continuation step up, the step-up date is the valuation date we receive the spouse's written request to step-up if we receive the request by the close of business on that day, otherwise the next valuation date. RULES FOR SURRENDER PROVISION OF YOUR CONTRACT: Minimum contract values following surrender no longer apply to your contract. For surrenders, the surrender will be made from the variable subaccounts, and the Regular Fixed Account (if applicable) in the same proportion as your interest in each bears to the contract value less amounts in any Special DCA fixed account. You cannot specify from which accounts the surrender is to be made. IF CONTRACT VALUE REDUCES TO ZERO: If the contract value reduces to zero and the total RBA remains greater than zero, you will be paid in the following scenarios: 1) The ALP has not yet been established and the contract value is reduced to zero as a result of fees or charges or a withdrawal that is less than or equal to the RBP. In this scenario, you can choose to: (a) receive the remaining schedule of GBPs until the RBA equals zero; or (b) SINGLE LIFE: wait until the rider anniversary on/following the date the covered person reaches age 65, and then receive the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero; or (c) JOINT LIFE: wait until the rider anniversary on/following the date the younger covered spouse reaches age 65, and then receive the ALP annually until the latter of (i) the death of the last surviving covered spouse, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 2) The ALP has been established and the contract value reduces to zero as a result of fees or charges, or a withdrawal that is less than or equal to both the RBP and the RALP. In this scenario, you can choose to receive: (a) the remaining schedule of GBPs until the RBA equals zero; or (b) SINGLE LIFE: the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero; or. (c) JOINT LIFE: the ALP annually until the latter of (i) the death of the last surviving covered spouse, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 3) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP. In this scenario, the remaining schedule of GBPs will be paid until the RBA equals zero. 4) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RBP but less than or equal to the RALP. In this scenario, the ALP will be paid annually until the death of the: - SINGLE LIFE: covered person; - JOINT LIFE: last surviving covered spouse. Under any of these scenarios: - The annualized amounts will be paid to you in the frequency you elect. You may elect a frequency offered by us at the time payments begin. Available payment frequencies will be no less frequent than annually; - We will no longer accept additional purchase payments; - You will no longer be charged for the rider; - Any attached death benefit riders will terminate; and - SINGLE LIFE: The death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. - JOINT LIFE: If the owner had been receiving the ALP, upon the first death the ALP will continue to be paid annually until the later of: 1) the death of the last surviving covered spouse or 2) the RBA is reduced to zero. In all other situations the death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 59 The SecureSource rider and the contract will terminate under either of the following two scenarios: - If the contract value falls to zero as a result of a withdrawal that is greater than both the RALP and the RBP. This is full surrender of the contract value. - If the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP, and the total RBA is reduced to zero. AT DEATH: SINGLE LIFE: If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may: 1) elect to take the death benefit under the terms of the contract, 2) take the fixed payout option available under this rider, or 3) continue the contract under the spousal continuation provision of the contract above. If the contract value equals zero and the death benefit becomes payable, the following will occur: - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - If the covered person dies and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - If the covered person is still alive and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the later of the death of the covered person or the RBA equals zero. - If the covered person is still alive and the RBA equals zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the death of the covered person. - If the covered person dies and the RBA equals zero, the benefit terminates. No further payments will be made. JOINT LIFE: If the death benefit becomes payable at the death of a covered spouse, the surviving covered spouse must utilize the spousal continuation provision of the contract and continue the contract as the new owner to continue the joint benefit. If spousal continuation is not available under the terms of the contract, the rider terminates. The lifetime benefit of this rider ends at the death of the last surviving covered spouse. If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may: 1) elect to take the death benefit under the terms of the contract, 2) take the fixed payout option available under this rider, or 3) continue the contract under the spousal continuation provision of the contract above. If the contract value equals zero at the first death of a covered spouse, the ALP will continue to be paid annually until the later of: 1) the death of the last surviving covered spouse or 2) the RBA is reduced to zero. If the contract value equals zero at the death of the last surviving covered spouse, the following will occur: - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - If the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - If the RBA equals zero, the benefit terminates. No further payments will be made. CONTRACT OWNERSHIP CHANGE: SINGLE LIFE: If the contract changes ownership (see "Changing Ownership"), the GBA, RBA, GBP, RBP values will remain unchanged and the ALP and RALP will be reset as follows. Our current administrative practice is to only reset the ALP and RALP if the covered person changes due to the ownership change. - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be established on the contract anniversary following the date the covered person reaches age 65. The ALP will be set equal to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the anniversary date occurs during the waiting period and prior to a withdrawal, the RALP will be set equal to the lesser of the ALP or total purchase payments plus any purchase payment credits, multiplied by 6%. If the anniversary date occurs at any other time, the RALP will be set equal to the ALP. - If the ALP has not yet been established but the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be established on the ownership change date. The ALP will be set equal to the lesser of the RBA or the contract value, multiplied by 6%. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be set to the lesser of the ALP or total purchase payments plus any purchase payment credits multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be set to the ALP less all prior withdrawals made in the current contract year but not less than zero. - If the ALP has been established but the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be reset to zero for the period of time beginning with the ownership change date and ending with the 60 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the time period ends during the waiting period and prior to any withdrawals, the RALP will be reset to the lesser of the ALP or total purchase payments plus any purchase payment credits, multiplied by 6%. If the time period ends at any other time, the RALP will be reset to the ALP. - If the ALP has been established and the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be reset on the ownership change date. The ALP will be reset to the lesser of the current ALP or 6% of the contract value. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be reset to the lesser of the ALP or total purchase payments plus any purchase payment credits multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be reset to the ALP less all prior withdrawals made in the current contract year but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the ownership change. JOINT LIFE: Ownership changes are only allowed between the covered spouses or their revocable trust(s). No other ownership changes are allowed as long as the rider is in force. REMAINING BENEFIT AMOUNT (RBA) PAYOUT OPTION: Several annuity payout plans are available under the contract. As an alternative to these annuity payout plans, a fixed annuity payout option is available under the SecureSource riders. Under this option the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the current total RBA at the time you begin this fixed annuity payout option. These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at that time but will be no less frequent than annually. If, at the death of the owner, total payouts have been made for less than the RBA, the remaining payouts will be paid to the beneficiary (see "The Annuity Payout Period" and "Taxes"). This option may not be available if the contract is issued to qualify under section 403 or 408 of the Code, as amended. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using a life expectancy table published by the IRS. This annuity payout option may also be elected by the beneficiary of a contract as a settlement option. Whenever multiple beneficiaries are designated under the contract, each such beneficiary's share of the proceeds if they elect this option will be in proportion to their applicable designated beneficiary percentage. Beneficiaries of nonqualified contracts may elect this settlement option subject to the distribution requirements of the contract. We reserve the right to adjust the remaining schedule of GBPs if necessary to comply with the Code. RIDER TERMINATION The SecureSource rider cannot be terminated either by you or us except as follows: 1. SINGLE LIFE: After the death benefit is payable the rider will terminate if: (a) any one other than your spouse continues the contract, or (b) your spouse does not use the spousal continuation provision of the contract to continue the contract. 2. JOINT LIFE: After the death benefit is payable the rider will terminate if: (a) any one other than a covered spouse continues the contract, or (b) a covered spouse does not use the spousal continuation provision of the contract to continue the contract. 3. Annuity payouts under an annuity payout plan will terminate the rider. 4. Termination of the contract for any reason will terminate the rider. GUARANTEED MINIMUM ACCUMULATION BENEFIT (ACCUMULATION BENEFIT) RIDER THE ACCUMULATION BENEFIT RIDER IS NOT AVAILABLE FOR RAVA 4 ACCESS. The Accumulation Benefit rider is an optional benefit that you may select for an additional charge. It is available for nonqualified annuities and qualified annuities except under 401(a) plans. The Accumulation Benefit rider specifies a waiting period that ends on the benefit date. The Accumulation Benefit rider provides a one-time adjustment to your contract value on the benefit date if your contract value is less than the Minimum Contract Accumulation Value (defined below) on that benefit date. On the benefit date, if the contract value is equal to or greater than the Minimum Contract Accumulation Value, as determined under the Accumulation Benefit rider, the Accumulation Benefit rider ends without value and no benefit is payable. If the contract value falls to zero as the result of adverse market performance or the deduction of fees and/or charges at any time during the waiting period and before the benefit date, the contract and all riders, including the Accumulation Benefit rider will terminate without value and no benefits will be paid. EXCEPTION: if you are still living on the benefit date, we will RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 61 pay you an amount equal to the Minimum Contract Accumulation Value as determined under the Accumulation Benefit rider on the valuation date your contract value reached zero. If you are (or if the owner is a non-natural person, then the annuitant is) 80 or younger at contract issue and this rider is available in your state, you may elect the Accumulation Benefit rider at the time you purchase your contract and the rider effective date will be the contract issue date. The Accumulation Benefit rider may not be terminated once you have elected it except as described in the "Terminating the Rider" section below. An additional charge for the Accumulation Benefit rider will be assessed annually during the waiting period. The rider ends when the waiting period expires and no further benefit will be payable and no further charges for the rider will be deducted. The Accumulation Benefit rider may not be purchased with the optional GWB for Life rider or SecureSource rider. When the rider ends, you may be able to purchase another optional rider we then offer by written request received within 30 days of that contract anniversary date. You should consider whether an Accumulation Benefit rider is appropriate for you because: - you must participate in the PN program and you must elect one of the model portfolios. This requirement limits your choice of subaccounts, regular fixed account and GPAs (if available) to those that are in the model portfolio you select. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the regular fixed account that are available under the contract to other contract owners who do not elect this rider. You may allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA fixed account, when available (see "The Special DCA Fixed Account"), and we will make monthly transfers into the model portfolio you have chosen. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"); - you may not make additional purchase payments to your contract during the waiting period after the first 180 days immediately following the effective date of the Accumulation Benefit rider. Some exceptions apply (see "Additional Purchase Payments with Elective Step Up" below); - if you purchase this contract as a qualified annuity, for example, an IRA, you may need to take partial surrenders from your contract to satisfy the RMDs under the Code. Partial surrenders, including those used to satisfy RMDs, will reduce any potential benefit that the Accumulation Benefit rider provides. You should consult your tax advisor if you have any questions about the use of this rider in your tax situation; - if you think you may surrender all of your contract value before you have held your contract with this benefit rider attached for 10 years, or you are considering selecting an annuity payout option within 10 years of the effective date of your contract, you should consider whether this optional benefit is right for you. You must hold the contract a minimum of 10 years from the effective date of the Accumulation Benefit rider, which is the length of the waiting period under the Accumulation Benefit rider, in order to receive the benefit, if any, provided by the Accumulation Benefit rider. In some cases, as described below, you may need to hold the contract longer than 10 years in order to qualify for any benefit the Accumulation Benefit rider may provide; - the 10 year waiting period under the Accumulation Benefit rider will restart if you exercise the Elective Step-Up Option (described below) or your surviving spouse exercises the spousal continuation Elective Step-Up (described below); and - the 10 year waiting period under the Accumulation Benefit rider may be restarted if you elect to change your model portfolio to one that causes the Accumulation Benefit rider charge to increase (see "Charges"). Be sure to discuss with your financial advisor whether an Accumulation Benefit rider is appropriate for your situation. HERE ARE SOME GENERAL TERMS THAT ARE USED TO DESCRIBE THE OPERATION OF THE ACCUMULATION BENEFIT: BENEFIT DATE: This is the first valuation date immediately following the expiration of the waiting period. MINIMUM CONTRACT ACCUMULATION VALUE (MCAV): An amount calculated under the Accumulation Benefit rider. The contract value will be increased to equal the MCAV on the benefit date if the contract value on the benefit date is less than the MCAV on the benefit date. ADJUSTMENTS FOR PARTIAL SURRENDERS: The adjustment made for each partial surrender from the contract is equal to the amount derived from multiplying (a) and (b) where: (a) is 1 minus the ratio of the contract value on the date of (but immediately after) the partial surrender to the contract value on the date of (but immediately prior to) the partial surrender; and (b) is the MCAV on the date of (but immediately prior to) the partial surrender. WAITING PERIOD: The waiting period for the rider is 10 years. We reserve the right to restart the waiting period on the latest contract anniversary if you change your model portfolio after we have exercised our rights to increase the rider fee. 62 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Your initial MCAV is equal to your initial purchase payment and any purchase payment credit. It is increased by the amount of any subsequent purchase payments and purchase payment credits received within the first 180 days that the rider is effective. It is reduced by any adjustments for partial surrenders made during the waiting period. AUTOMATIC STEP UP On each contract anniversary after the effective date of the rider, the MCAV will be set to the greater of: 1. 80% of the contract value on the contract anniversary; or 2. the MCAV immediately prior to the automatic step up. The automatic step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be surrendered or paid upon death. Rather, the Automatic Step Up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The automatic step up of the MCAV does not restart the waiting period or increase the charge (although the total fee for the rider may increase). ELECTIVE STEP UP OPTION Within thirty days following each contract anniversary after the rider effective date, but prior to the benefit date, you may notify us in writing that you wish to exercise the annual elective step up option. You may exercise this elective step up option only once per contract year during this 30 day period. If your contract value on the valuation date we receive your written request to step up is greater than the MCAV on that date, your MCAV will increase to 100% of that contract value. When you exercise the annual elective step up, we may be charging more for the Accumulation Benefit rider at that time. If your MCAV is increased as a result of the elective step up and we have increased the charge for the Accumulation Benefit rider, you will pay the charge that is in effect on the valuation date we receive your written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. Failure to exercise this elective step up in subsequent years will not reinstate any prior waiting period. Rather, the waiting period under the rider will always commence from the most recent anniversary for which the elective step up option was exercised. The elective step up does not create contract value, guarantee the performance of any investment option or provide any benefit that can be surrendered or paid upon death. Rather the elective step up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The elective step up option is not available to non-spouse beneficiaries that continue the contract during the waiting period. ADDITIONAL PURCHASE PAYMENTS WITH ANNUAL ELECTIVE STEP UPS If your MCAV is increased as a result of Elective Step Up, you have 180 days from the latest contract anniversary to make additional purchase payments, if allowed under the base contract. The MCAV will include the amount of any additional purchase payments and purchase payment credits (if applicable) received during this period. SPOUSAL CONTINUATION If a spouse chooses to continue the contract under the spousal continuation provision, the rider will continue as part of the contract. Once, within the thirty days following the date of spousal continuation, the spouse may choose to exercise an elective step up. The spousal continuation elective step up is in addition to the annual elective step up. If the contract value on the valuation date we receive the written request to exercise this option is greater than the MCAV on that date, we will increase the MCAV to that contract value. If the MCAV is increased as a result of the elective step up and we have increased the charge for the Accumulation Benefit rider, the spouse will pay the charge that is in effect on the valuation date we receive their written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. TERMINATING THE RIDER The rider will terminate under the following conditions: The rider will terminate before the benefit date without paying a benefit on the date: - you take a full surrender; or - annuitization begins; or - the contract terminates as a result of the death benefit being paid. The rider will terminate on the benefit date. For an example, see Appendix E. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 63 OPTIONAL LIVING BENEFITS -- PREVIOUSLY OFFERED GUARANTOR WITHDRAWAL BENEFIT FOR LIFE (GWB FOR LIFE) RIDER Disclosure for GWB for Life rider may be found in the Appendix G. THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date, plus or minus any applicable MVA on GPAs and less any applicable premium tax. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - the annuity payout plan you select; - your age and, in most cases, sex; - the annuity table in the contract; and - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to your age and, when applicable, your sex. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate results in a higher initial payout but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan: - PLAN A: LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only ONE monthly payout, we will not make any more payouts. - PLAN B: LIFE ANNUITY WITH FIVE, TEN, 15, OR 20 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten, 15, or 20 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - PLAN C: LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. 64 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - PLAN D: JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving owner. Payouts end with the death of the second annuitant. - PLAN E: PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that the annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the amount of the payout that would have been made 7 days prior to the date we determine the present value. The discount rate we use in the calculation will be either 5.17% or 6.67%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take surrender. (See "Taxes.") - RBA PAYOUT OPTION: If you have a GWB for Life or SecureSource rider under your contract, you may elect the Withdrawal Benefit RBA payout option as an alternative to the above annuity payout plans. This option may not be available if the contract is issued to qualify under Sections 403 or 408 of the Code. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using life expectancy tables published by IRS. Under this option, the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the total RBA at the time you begin this fixed payout option (see "Optional Benefits"). These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at the time but will be no less frequent than annually. If, at the death of the owner, total payouts have been made for less than the RBA, the remaining payouts will be paid to the beneficiary. ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or - in equal or substantially equal payments over a period not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary; or - over a period certain not longer than your life expectancy or over the life expectancy of you and your designated beneficiary. WRITTEN INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the settlement date. Contract values that you allocated to the regular fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. TAXES Under current law, your contract has a tax-deferral feature. Generally, this means you do not pay federal income tax until there is a distribution (or deemed distribution) from the contract. Certain exceptions apply. We will send a tax information reporting form for any year in which we made a distribution according to our records. NONQUALIFIED ANNUITIES Generally, only the increase in the value of a non-qualified annuity contract over the investment in the contract is taxable. Certain exceptions apply. Tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when distributions are taken from any one of those contracts. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 65 ANNUITY PAYOUTS: Generally, unlike surrenders, the taxation of annuity payouts is subject to exclusion ratios, i.e. a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment in the contract and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "The Annuity Payout Period -- Annuity Payout Plans.") SURRENDERS: Generally, if you surrender all or part of your nonqualified annuity before your annuity payouts begin, including withdrawals under any optional withdrawal benefit rider, your surrender will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. Different rules may apply if you exchange another contract into this contract. You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. WITHHOLDING: If you receive taxable income as a result of an annuity payout or surrender, including surrenders under any optional withdrawal benefit rider, we may deduct federal, and in some cases state withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, and you have a valid U.S. address, you may be able to elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a nonqualified contract is not exempt from estate (federal or state) or income taxes. In addition, any amount your beneficiary receives that exceeds the investment in the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR IRREVOCABLE TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - because of your death or in the event of nonnatural ownership, the death of the annuitant; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if it is allocable to an investment before Aug. 14, 1982; or - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: Generally, if you transfer ownership of a nonqualified annuity without receiving adequate consideration, the transfer may be treated as a surrender for federal income tax purposes. If the transfer is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. 1035 EXCHANGES: Section 1035 of the Code permits nontaxable exchanges of certain insurance policies and annuity contracts, while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the cost basis from the old policy or contract to the new policy or contract. A 1035 exchange is a transfer from one policy or contract to another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment or annuity contract, (2) the exchange of an endowment contract for an annuity contract, or for an endowment contract under which payments will begin no later than payments would have begun under the contract 66 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS exchanged, (3) the exchange of an annuity contract for another annuity contract. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the features and benefits of the new policy or contract outweigh any tax or other benefits of the old contract. For exchanges after 2009, a life insurance policy, annuity or endowment contract or a qualified long-term care insurance contract may be exchanged for a qualified long-term care insurance contract. For a partial exchange of an annuity contract for another annuity contract, the 1035 exchange is generally tax-free. The investment in the original contract and the earnings on the contract will be allocated proportionately between the original and new contracts. However, IRS Revenue Procedure 2008-24 states if withdrawals are taken from either contract within a 12 month period following a partial exchange, the 1035 exchange may be invalidated. In that case, the following will occur 1) the tax-free nature of the partial exchange can be lost, 2) the exchange will be retroactively treated as a taxable surrender on the lesser of the earnings in the original contract or the amount exchanged and 3) the entire amount of the exchange will be treated as a purchase into the second contract. (If certain life events occur between the date of the partial exchange and the date of the withdrawal in the first 12 months, the partial exchange could remain valid.) You should consult your tax advisor before taking any surrender from either contract. ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed to you like a surrender and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax- deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your right to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. SURRENDERS: Under a qualified annuity, except a Roth IRA, Roth 401(k) or Roth 403(b), the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non- deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and meet the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans (except for Roth IRAs) are subject to required surrenders called required minimum distributions ("RMDs") beginning at age 70 1/2. RMDs are based on the fair market value of your contract at year-end divided by life expectancy factor. Certain death benefits and optional riders may be considered in determining the fair market value of your contract for RMD purposes. This may cause your RMD to be higher. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, including surrenders under any optional withdrawal benefit rider, we may deduct withholding against the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 67 WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. This mandatory withholding will not be imposed if instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan. Payments made to a surviving spouse instead of being directly rolled over to an IRA are also subject to mandatory 20% income tax withholding. In the below situations, the distribution is subject to an optional 10% withholding instead of the mandatory 20% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - the payout is a RMD as defined under the Code; - the payout is made on account of an eligible hardship; or - the payout is a corrective distribution. State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified contract before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - because of your death; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); or - to pay certain medical or education expenses (IRAs only). DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he/she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non- deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. ASSIGNMENT: You may not assign or pledge your qualified contract as collateral for a loan. OTHER PURCHASE PAYMENT CREDITS: These are considered earnings and are taxed accordingly when surrendered or paid out. SPECIAL CONSIDERATIONS IF YOU SELECT ANY OPTIONAL RIDER: As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report any benefits attributable to these riders on the death of you or the annuitant as an annuity death benefit distribution, not as proceeds from life insurance. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not taxed to us, and therefore no charge is made against the subaccounts for federal income taxes and there is no withholding. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. 68 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: - the reserve held in each subaccount for your contract; divided by - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - laws or regulations change; - the existing funds become unavailable; or - in our judgment, the funds no longer are suitable (or no longer the most suitable) for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - add new subaccounts; - combine any two or more subaccounts; - transfer assets to and from the subaccounts or the variable account; and - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio -- Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as the principal underwriter and general distributor of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 69 SALES OF THE CONTRACT - Only securities broker-dealers ("selling firms") registered with the SEC and members of the FINRA may sell the contract. - The contracts are continuously offered to the public through authorized selling firms. We and RiverSource Distributors have a sales agreement with the selling firm. The sales agreement authorizes the selling firm to offer the contracts to the public. RiverSource Distributors pays the selling firm (or an affiliated insurance agency) for contracts its financial advisors sell. The selling firm may be required to return sales commissions under certain circumstances including but not limited to when contracts are returned under the free look period. PAYMENTS TO SELLING FIRMS - We may use compensation plans which vary by selling firm. For example, some of these plans pay selling firms a commission of up to 6.00% each time you make a purchase payment. We may also pay ongoing trail commissions of up to 1.25% of the contract value. We do not pay or withhold payment of commissions based on which investment options you select. - We may pay selling firms a temporary additional sales commission of up to 1% of purchase payments for a period of time we select. For example, we may offer to pay a temporary additional sales commission to get selling firms to market a new or enhanced contract or to increase sales during the period. - In addition to commissions, we may, in order to promote sales of the contracts, and as permitted by applicable laws and regulations, pay or provide selling firms with other promotional incentives in cash, credit or other compensation. We generally (but may not) offer these promotional incentives to all selling firms. The terms of such arrangements differ between selling firms. These promotional incentives may include but are not limited to: - sponsorship of marketing, educational, due diligence and compliance meetings and conferences we or the selling firm may conduct for financial advisors, including subsidy of travel, meal, lodging, entertainment and other expenses related to these meetings; - marketing support related to sales of the contract including for example, the creation of marketing materials, advertising and newsletters; - providing service to contract owners; and - funding other events sponsored by a selling firm that may encourage the selling firm's financial advisors to sell the contract. These promotional incentives or reimbursements may be calculated as a percentage of the selling firm's aggregate, net or anticipated sales and/or total assets attributable to sales of the contract, and/or may be a fixed dollar amount. As noted below this additional compensation may cause the selling firm and its financial advisors to favor the contracts. SOURCES OF PAYMENTS TO SELLING FIRMS We pay the commissions and other compensation described above from our assets. Our assets may include: - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- The funds"); - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The funds"); and - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part or all of the commissions and other compensation described above indirectly through: - fees and expenses we collect from contract owners, including surrender charges; and - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. POTENTIAL CONFLICTS OF INTEREST Compensation payment arrangements with selling firms can potentially: - give selling firms a heightened financial incentive to sell the contract offered in this prospectus over another investment with lower compensation to the selling firm. - cause selling firms to encourage their financial advisors to sell you the contract offered in this prospectus instead of selling you other alternative investments that may result in lower compensation to the selling firm. 70 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - cause selling firms to grant us access to its financial advisors to promote sales of the contract offered in this prospectus, while denying that access to other firms offering similar contracts or other alternative investments which may pay lower compensation to the selling firm. PAYMENTS TO FINANCIAL ADVISORS - The selling firm pays its financial advisors. The selling firm decides the compensation and benefits it will pay its financial advisors. - To inform yourself of any potential conflicts of interest, ask your financial advisor before you buy how the selling firm and its financial advisors are being compensated and the amount of the compensation that each will receive if you buy the contract. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities concerning our business activities and practices. These requests generally include suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements with respect to our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. ADDITIONAL INFORMATION INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE To the extent and only to the extent that any statement in a document incorporated by reference into this prospectus is modified or superseded by a statement in this prospectus or in a later-filed document, such statement is hereby deemed so modified or superseded and not part of this prospectus. The Annual Report on Form 10-K of RiverSource Life Insurance Company for the year ended Dec. 31, 2008 that we previously filed with the SEC under the Securities Exchange Act of 1934 (1934 Act) is incorporated by reference into this prospectus. To access these documents, see "SEC Filings" under "Investors Relations" on our website at www.ameriprise.com. RiverSource Life will furnish you without charge a copy of any or all of the documents incorporated by reference into this prospectus, including any exhibits to such documents which have been specifically incorporated by reference. We will do so upon receipt of your written or oral request. You can contact RiverSource Life at the telephone number and address listed on the first page of this prospectus. AVAILABLE INFORMATION This prospectus is part of a registration statement we file with the SEC. Additional information on RiverSource Life and on this offering is available in the registration statement and other materials we file. You can obtain copies of these materials at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. This prospectus, other information about the contract and other information incorporated by reference are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 71 INDEMNIFICATION Insofar as indemnification for liabilities arising under the Securities Act of 1933 (1933 Act) may be permitted to directors and officers or persons controlling RiverSource Life pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the 1933 Act and is therefore unenforceable. 72 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX A: THE FUNDS UNLESS AN ASSET ALLOCATION PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- AIM V.I. Capital Seeks growth of capital. Invesco Aim Advisors, Appreciation Inc. adviser, advisory Fund, Series II entities affiliated with Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Capital Seeks long-term growth of capital. Invesco Aim Advisors, Development Fund, Inc. adviser, advisory Series II Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Seeks capital growth. Invesco Aim Advisors, Financial Inc. adviser, advisory Services Fund, entities affiliated with Series II Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ----------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 73
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- AIM V.I. Global Seeks capital growth. Invesco Aim Advisors, Health Care Fund, Inc. adviser, advisory Series II Shares entities affiliated with Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AIM V.I. Seeks long-term growth of capital. Invesco Aim Advisors, International Inc. adviser, advisory Growth Fund, entities affiliated with Series II Shares Invesco Aim Advisors, Inc., subadvisers. On or about Aug. 1, 2009, the business of Invesco Aim Advisors, Inc. and Invesco Global Asset Management, Inc. will be combined into Invesco Institutional, which will be renamed Invesco Advisers, Inc. and will serve as the Fund's investment adviser. ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Global Technology Portfolio (Class B) ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Growth and Income Portfolio (Class B) ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS International Value Portfolio (Class B) ---------------------------------------------------------------------------------------- AllianceBernstein Seeks long-term growth of capital. AllianceBernstein L.P. VPS Large Cap Growth Portfolio (Class B) ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Mid Cap Value, secondary objective. Investment Management, Class II Inc. ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. American Century VP Ultra(R), Investment Management, Class II Inc. ---------------------------------------------------------------------------------------- American Century Seeks long-term capital growth. Income is a American Century VP Value, Class secondary objective. Investment Management, II Inc. ---------------------------------------------------------------------------------------- Columbia High Seeks total return, consisting of a high Columbia Management Yield Fund, level of income and capital appreciation. Advisors, LLC, advisor; Variable Series, MacKay Shields LLC, Class B subadviser. ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management Growth Fund, Advisors, LLC, adviser; Variable Series, Marsico Capital Class A Management, LLC, sub- adviser. ----------------------------------------------------------------------------------------
74 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- Columbia Marsico Seeks long-term growth of capital. Columbia Management International Advisors, LLC, adviser; Opportunities Marsico Capital Fund, Variable Management, LLC, sub- Series, Class B adviser. ---------------------------------------------------------------------------------------- Credit Suisse Seeks total return. Credit Suisse Asset Trust - Commodity Management, LLC Return Strategy Portfolio ---------------------------------------------------------------------------------------- Dreyfus Variable Seeks capital growth. The Dreyfus Corporation; Investment Fund Newton Capital International Management Limited, sub- Equity Portfolio, adviser Service Shares ---------------------------------------------------------------------------------------- Eaton Vance VT Seeks high level of current income. Eaton Vance Management Floating-Rate Income Fund ---------------------------------------------------------------------------------------- Evergreen VA Seeks capital growth with the potential for Evergreen Investment Fundamental Large current income. Management Company, LLC Cap Fund - Class 2 ---------------------------------------------------------------------------------------- Evergreen VA Seeks long-term capital growth and Evergreen Investment International secondarily, modest income. Management Company, LLC Equity Fund - Class 2 ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term capital appreciation. Fidelity Management & Contrafund(R) Normally invests primarily in common Research Company (FMR), Portfolio Service stocks. Invests in securities of companies investment manager; FMR Class 2 whose value it believes is not fully U.K. and FMR Far East, recognized by the public. Invests in either sub-advisers. "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers. ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Mid Cap Portfolio invests primarily in common stocks. FMR U.K., FMR Far East, Service Class 2 Normally invests at least 80% of assets in sub-advisers. securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. ---------------------------------------------------------------------------------------- Fidelity(R) VIP Seeks long-term growth of capital. Normally FMR, investment manager; Overseas invests primarily in common stocks FMR U.K., FMR Far East, Portfolio Service allocating investments across different Fidelity International Class 2 countries and regions. Normally invests at Investment Advisors least 80% of assets in non-U.S. securities. (FIIA) and FIIA U.K., sub-advisers. ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks high total return. Franklin Templeton Global Real Institutional, LLC Estate Securities Fund - Class 2 ---------------------------------------------------------------------------------------- FTVIPT Franklin Seeks long-term total return. Franklin Advisory Small Cap Value Services, LLC Securities Fund - Class 2 ---------------------------------------------------------------------------------------- FTVIPT Mutual Seeks capital appreciation, with income as Franklin Mutual Shares Securities a secondary goal. Advisers, LLC Fund - Class 2 ---------------------------------------------------------------------------------------- Goldman Sachs VIT Seeks long-term growth of capital and Goldman Sachs Asset Structured U.S. dividend income. Management, L.P. Equity Fund - Instituti- onal Shares ----------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 75
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- Janus Aspen Seeks long-term growth of capital in a Janus Capital Management Series Janus manner consistent with the preservation of LLC Portfolio: capital. Service Shares (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) ---------------------------------------------------------------------------------------- Legg Mason Seeks long-term growth of capital. Legg Mason Partners Fund Partners Variable Advisor, LLC, adviser; Small Cap Growth ClearBridge Advisors, Portfolio, Class LLC, sub-adviser. I ---------------------------------------------------------------------------------------- MFS(R) Investors Seeks capital appreciation. MFS Investment Growth Stock Management(R) Series - Service Class ---------------------------------------------------------------------------------------- MFS(R) Utilities Seeks total return. MFS Investment Series - Service Management(R) Class ---------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers investing primarily in common stocks of Management Inc. Management Trust foreign companies. International Portfolio (Class S) ---------------------------------------------------------------------------------------- Neuberger Berman Seeks long-term growth of capital by Neuberger Berman Advisers investing primarily in securities of Management Inc. Management Trust companies that meet the Fund's financial Socially criteria and social policy. Responsive Portfolio (Class S) ---------------------------------------------------------------------------------------- Oppenheimer Seeks long-term capital appreciation. OppenheimerFunds, Inc. Global Securities Fund/VA, Service Shares ---------------------------------------------------------------------------------------- Oppenheimer Main Seeks capital appreciation. OppenheimerFunds, Inc. Street Small Cap Fund/VA, Service Shares ---------------------------------------------------------------------------------------- Oppenheimer Seeks high level of current income OppenheimerFunds, Inc. Strategic Bond principally derived from interest on debt Fund/VA, Service securities. Shares ---------------------------------------------------------------------------------------- Oppenheimer Value Seeks high level of current income OppenheimerFunds, Inc. Fund/VA, Service principally derived from interest on debt Shares securities. ---------------------------------------------------------------------------------------- PIMCO VIT All Seeks maximum real return consistent with Pacific Investment Asset Portfolio, preservation of real capital and prudent Management Company LLC Advisor Share investment management period. Class ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with an aggressive level of LLC Portfolios - Agg- risk. This is a "fund of funds" and seeks ressive to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ----------------------------------------------------------------------------------------
76 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a conservative level of LLC Portfolios - Con- risk. This is a "fund of funds" and seeks servative to achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate level of risk. LLC Portfolios - Mod- This is a "fund of funds" and seeks to erate achieve its objective by investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate aggressive level LLC Portfolios - - of risk. This is a "fund of funds" and Moderately seeks to achieve its objective by investing Aggressive in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST Disciplined Seeks high level of total return that is RiverSource Investments, Asset Allocation consistent with a moderate conservative LLC Portfolios - - level of risk. This is a "fund of funds" Moderately and seeks to achieve its objective by Conservative investing in a combination of underlying funds for which RiverSource Investments acts as investment manager or an affiliate acts as principal underwriter. By investing in several underlying funds, the Fund seeks to minimize the risks inherent in investing in a single fund. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital growth. RiverSource Investments, Partners Variable LLC, adviser; Davis Portfolio - Fund- Selected Advisers, L.P., amental Value subadviser. Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Partners Variable LLC, adviser; Systematic Portfolio - Sele- Financial Management, ct Value Fund L.P. and WEDGE Capital Management L.L.P., sub- advisers. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Partners Variable LLC, adviser; Barrow, Portfolio - Small Hanley, Mewhinney & Cap Value Fund Strauss, Inc., Denver Investment Advisors LLC, Donald Smith & Co., Inc., River Road Asset Management, LLC and Turner Investment Partners, Inc., subadvisers. ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum total investment return RiverSource Investments, Variable through a combination of capital growth and LLC Portfolio - Bala- current income. nced Fund ----------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 77
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST RiverSource Seeks maximum current income consistent RiverSource Investments, Variable with liquidity and stability of principal. LLC Portfolio - Cash Management Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income while RiverSource Investments, Variable attempting to conserve the value of the LLC Portfolio - Dive- investment for the longest period of time. rsified Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and, as RiverSource Investments, Variable a secondary goal, steady growth of capital. LLC Portfolio - Dive- rsified Equity Income Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks capital appreciation. RiverSource Investments, Variable LLC Portfolio - Dyna- mic Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks high total RiverSource Investments, Variable return through income and growth of LLC Portfolio - Glob- capital. al Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Non-diversified fund that seeks total RiverSource Investments, Variable return that exceeds the rate of inflation LLC Portfolio - Glob- over the long-term. al Inflation Protected Securities Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high current income, with capital RiverSource Investments, Variable growth as a secondary objective. LLC Portfolio - High Yield Bond Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high total return through current RiverSource Investments, Variable income and capital appreciation. LLC Portfolio - Inco- me Opportunities Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Growth Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Mid Cap Value Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks long-term capital appreciation. RiverSource Investments, Variable LLC Portfolio - S&P 500 Index Fund ---------------------------------------------------------------------------------------- RVST RiverSource Seeks high level of current income and RiverSource Investments, Variable safety of principal consistent with LLC Portfolio - Short investment in U.S. government and Duration U.S. government agency securities. Government Fund ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC Portfolio - Grow- th Fund (previously RVST RiverSource Variable Portfolio - Grow- th Fund) ----------------------------------------------------------------------------------------
78 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
---------------------------------------------------------------------------------------- INVESTING IN INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term growth of capital. RiverSource Investments, Variable LLC Portfolio - Larg- er-Cap Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) ---------------------------------------------------------------------------------------- RVST Seligman Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Kenwood Portfolio - Smal- Capital Management LLC, ler-Cap Value sub-adviser. Fund (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks long-term capital growth. RiverSource Investments, Variable LLC, adviser; Portfolio - Emer- Threadneedle ging Markets Fund International Limited, an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ---------------------------------------------------------------------------------------- RVST Threadneedle Seeks capital appreciation. RiverSource Investments, Variable LLC, adviser; Portfolio - In- Threadneedle ternational International Limited, Opportunity Fund an indirect wholly-owned subsidiary of Ameriprise Financial, sub-adviser. ---------------------------------------------------------------------------------------- Van Kampen Life Seeks capital growth and income through Van Kampen Asset Investment Trust investments in equity securities, including Management Comstock common stocks, preferred stocks and Portfolio, Class securities convertible into common and II Shares preferred stocks. ---------------------------------------------------------------------------------------- Van Kampen UIF Seeks current income and capital Morgan Stanley Global Real appreciation. Investment Management Estate Portfolio, Inc., doing business as Class II Shares Van Kampen, adviser; Morgan Stanley Investment Management Limited and Morgan Stanley Investment Management Company, sub- advisers. ---------------------------------------------------------------------------------------- Van Kampen UIF Seeks long-term capital growth. Morgan Stanley Mid Cap Growth Investment Management Portfolio, Class Inc., doing business as II Shares Van Kampen. ---------------------------------------------------------------------------------------- Wanger Seeks long-term growth of capital. Columbia Wanger Asset International Management, L.P. ---------------------------------------------------------------------------------------- Wanger USA Seeks long-term capital appreciation. Columbia Wanger Asset Management, L.P. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Opportunity Fund adviser; Wells Capital Management Incorporated, sub-adviser. ---------------------------------------------------------------------------------------- Wells Fargo Seeks long-term total return, consisting of Wells Fargo Funds Advantage VT capital appreciation and current income. Management, LLC, Small Cap Growth adviser; Wells Capital Fund Management Incorporated, sub-adviser. ----------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 79 APPENDIX B: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA) AS THE EXAMPLES BELOW DEMONSTRATE, THE APPLICATION OF AN MVA MAY RESULT IN EITHER A GAIN OR A LOSS OF PRINCIPAL. WE REFER TO ALL OF THE TRANSACTIONS DESCRIBED BELOW AS "EARLY SURRENDERS." THE EXAMPLES MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. GENERAL EXAMPLES ASSUMPTIONS: - You purchase a contract and allocate part of your purchase payment to the ten- year GPA; and - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - after three years, you decide to make a surrender from your GPA. In other words, there are seven years left in your guarantee period. Remember that the MVA depends partly on the interest rate of a new GPA for the same number of years as the Guarantee Period remaining on your GPA. In this case, that is seven years. EXAMPLE 1: Remember that your GPA is earning 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. We add 0.10% to the 3.5% rate to get 3.6%. Your GPA's 3.0% rate is less than the 3.6% rate so the MVA will be negative. EXAMPLE 2: Remember again that your GPA is earning 3.0%, and assume that new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. We add 0.10% to the 2.5% rate to get 2.6%. In this example, since your GPA's 3.0% rate is greater than the 2.6% rate, the MVA will be positive. To determine that adjustment precisely, you will have to use the formula described below. SAMPLE MVA CALCULATIONS The precise MVA formula we apply is as follows: 1 + I EARLY WITHDRAWAL AMOUNT X [( -------------------- ) (N/12) - - = MVA 1 + J + .001 1]
Where i = rate earned in the GPA from which amounts are being transferred or surrendered. j = current rate for a new Guaranteed Period equal to the remaining term in the current Guarantee Period (rounded up to the next year). n = number of months remaining in the current Guarantee Period (rounded up to the next month). EXAMPLES -- MVA Using assumptions similar to those we used in the examples above: - You purchase a contract and allocate part of your purchase payment to the ten- year GPA; and - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - after three years, you decide to make a $1,000 surrender from your GPA. In other words, there are seven years left in your guarantee period. EXAMPLE 1: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. Using the formula above, we determine the MVA as follows: 1.030 $1,000 X [( -------------------- ) (84/12) - - = -$39.84 1 + .035 + .001 1]
In this example, the MVA is a negative $39.84. EXAMPLE 2: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. Using the formula above, we determine the MVA as follows: 1.030 $1,000 X [( -------------------- ) (84/12) - - = $27.61 1 + .025 + .001 1]
80 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS In this example, the MVA is a positive $27.61. We do not apply MVAs to the amounts we deduct for surrender charges, so we would deduct the surrender charge from your early surrender after we applied the MVA. Also note that when you request an early surrender, we surrender an amount from your GPA that will give you the net amount you requested after we apply the MVA and any applicable surrender charge, unless you request otherwise. The current interest rate we offer on the GPA will change periodically at our discretion. It is the rate we are then paying on purchase payments, renewals and transfers paid under this class of contracts for Guarantee Period durations equaling the remaining Guarantee Period of the GPA to which the formula is being applied. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 81 APPENDIX C: EXAMPLE -- SURRENDER CHARGES THE PURPOSE OF THIS APPENDIX IS TO ILLUSTRATE THE VARIOUS SURRENDER CHARGE CALCULATIONS. THE EXAMPLES MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. FULL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA 4 Advantage contract with a ten-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you surrender the contract for its total value during the fourth contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: --------------------------------------------------------------------------------
CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of full surrender: $120,000.00 $ 80,000.00 Contract Value on prior anniversary: 115,000.00 85,000.00 STEP We determine the Total Free Amount (TFA) 1. available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's contract 11,500.00 8,500.00 value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP We determine the TFA that is from Purchase 2. Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free 0.00 8,500.00 (PPF): STEP We calculate the Premium Ratio (PR): 3. PR = [WD - TFA] / [CV - TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% = the premium ratio STEP We calculate Chargeable Purchase Payments 4. being Surrendered (CPP): CPP = PR x (PP - PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00 STEP We calculate the Surrender Charges: 5. Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP We calculate the Net Surrender Value: 120,000.00 80,000.00 6. Contract Value Surrendered: (7,000.00) (6,405.00) Contract Charge (assessed upon full (30.00) (30.00) surrender): Net Full Surrender Proceeds: 112,970.00 73,565.00
82 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS PARTIAL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA 4 Advantage contract with a ten-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you request a gross partial surrender of $50,000 during the fourth contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: --------------------------------------------------------------------------------
CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of partial $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP We determine the Total Free Amount (TFA) 1. available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's contract 11,500.00 8,500.00 value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP We determine the TFA that is from Purchase 2. Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free 0.00 8,500.00 (PPF): STEP We calculate the Premium Ratio (PR): 3. PR = [WD - TFA] / [CV - TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio STEP We calculate the Chargeable Purchase 4. Payments being Surrendered (CPP): CPP = PR x (PP - PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP We calculate the Surrender Charges: 5. Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP We calculate the Net Surrender Value: 6. Contract Value Surrendered: 50,000.00 50,000.00 Surrender Charge: (2,100.00) (3,717.59) Net Partial Surrender Proceeds: 47,900.00 46,282.41
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 83 FULL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA 4 Select contract with a three-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you surrender the contract for its total value during the second contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: --------------------------------------------------------------------------------
CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of full surrender: $120,000.00 $ 80,000.00 Contract Value on prior anniversary: 115,000.00 85,000.00 STEP We determine the Total Free Amount (TFA) 1. available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the Contract: 20,000.00 0.00 10% of the prior anniversary's contract 11,500.00 8,500.00 value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP We determine the TFA and Amount Free that 2. is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free 0.00 8,500.00 (PPF): STEP We calculate the Premium Ratio (PR): 3. PR = [WD - TFA] / [CV - TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% STEP We calculate Chargeable Purchase Payments 4. being Surrendered (CPP): CPP = PR x (PP - PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00 STEP We calculate the Surrender Charges: 5. Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP We calculate the Net Surrender Value: 120,000.00 80,000.00 6. Contract Value Surrendered: (7,000.00) (6,405.00) Contract Charge (assessed upon full (30.00) (30.00) surrender): Net Full Surrender Proceeds: 112,970.00 73,565.00
84 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS PARTIAL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA 4 Select contract with a three-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you request a gross partial surrender of $50,000 during the second contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS: --------------------------------------------------------------------------------
CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of partial $120,000.00 $ 80,000.00 surrender: Contract Value on prior anniversary: 115,000.00 85,000.00 STEP We determine the Total Free Amount (TFA) 1. available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's contract 11,500.00 8,500.00 value: ----------- ----------- Total Free Amount: 20,000.00 8,500.00 STEP We determine the Amount Free that is from 2. Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free 0.00 8,500.00 (PPF): STEP We calculate the Premium Ratio (PR): 3. PR = [WD - TFA] / [CV - TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio STEP We calculate the Chargeable Purchase 4. Payments being Surrendered (CPP): CPP = PR x (PP - PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP We calculate the Surrender Charges: 5. Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP We calculate the Net Surrender Value: 6. Contract Value Surrendered: 50,000.00 50,000.00 Surrender Charge: (2,100.00) (3,717.00) Net Partial Surrender Proceeds: 47,900.00 46,282.41
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 85 APPENDIX D: EXAMPLE -- OPTIONAL DEATH BENEFITS THE PURPOSE OF THIS APPENDIX IS TO ILLUSTRATE THE OPERATION OF VARIOUS OPTIONAL DEATH BENEFIT RIDERS. IN ORDER TO DEMONSTRATE THESE CONTRACT RIDERS, AN EXAMPLE MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THE EXAMPLES OF THE OPTIONAL DEATH BENEFITS IN APPENDIX INCLUDE PARTIAL SURRENDERS TO ILLUSTRATE THE EFFECT OF PARTIAL SURRENDERS ON THE PARTICULAR BENEFIT. THESE EXAMPLES ARE INTENDED TO SHOW HOW THE OPTIONAL DEATH BENEFITS OPERATE, AND DO NOT TAKE INTO ACCOUNT WHETHER A PARTICULAR OPTIONAL DEATH BENEFIT IS PART OF A QUALIFIED ANNUITY. QUALIFIED ANNUITIES ARE SUBJECT TO RMDS AT CERTAIN AGES (SEE "TAXES -- QUALIFIED ANNUITIES -- REQUIRED MINIMUM DISTRIBUTIONS") WHICH MAY REQUIRE YOU TO TAKE PARTIAL SURRENDERS FROM THE CONTRACT. IF YOU ARE CONSIDERING THE ADDITION OF CERTAIN DEATH BENEFITS TO A QUALIFIED ANNUITY, YOU SHOULD CONSULT YOUR TAX ADVISOR PRIOR TO MAKING A PURCHASE FOR AN EXPLANATION OF THE POTENTIAL TAX IMPLICATION TO YOU. EXAMPLE -- ROPP DEATH BENEFIT - You purchase the contract (with the ROPP rider) with a payment of $20,000. - The contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. We calculate the death benefit as follows: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 x $20,000 ---------------- = -1,667 $18,000 ------- for a death benefit of: $18,333 =======
EXAMPLE -- MAV DEATH BENEFIT - You purchase the contract (with the MAV rider) with a payment of $20,000. - On the first contract anniversary the contract value grows to $24,000. - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. We calculate the death benefit as follows: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $24,000 ---------------- = -1,636 $22,000 ------- for a death benefit of: $22,364 =======
EXAMPLE -- 5-YEAR MAV DEATH BENEFIT - You purchase the contract (with the 5-Year MAV rider) with a payment of $20,000. - On the fifth contract anniversary the contract value grows to $30,000. - During the sixth contract year the contract value falls to $25,000, at which point you take a $1,500 partial surrender, leaving a contract value of $23,500. 86 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS We calculate the death benefit as follows: The maximum 5-year anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your 5-year contract anniversary contract values: $30,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 x $30,000 ---------------- = -1,800 $25,000 ------- for a death benefit of: $28,200 =======
EXAMPLE -- EEB DEATH BENEFIT - You purchase the contract with a payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEB. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so the EEB does not provide any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): +4,000 0.40 x ($110,000 - $100,000) = -------- Total death benefit of: $114,000 ========
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000 ========
- During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $48,025. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 x $110,000) = -------------------- $57,619 $105,000 plus the EEB (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 ------- Total death benefit of: $58,667 =======
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The reduction in contract value has no effect. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 87 - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $255,000 ========
- During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed): $250,000 plus the EEB (40% of earnings at death) 0.40 x 2.50 x ($55,000) = +55,000 -------- Total death benefit of: $305,000 ========
- During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,500 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 -------- Total death benefit of: $308,700 ========
EXAMPLE -- EEP DEATH BENEFIT - You purchase the contract with an exchange purchase payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEP. - During the first contract year the contract value grows to $105,000. The death benefit on equals the standard death benefit amount, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so neither the EEP Part I nor Part II provides any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. You have not reached the second contract anniversary so the EEP Part II does not provide any additional benefit at this time. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit amount minus purchase payments not previously surrendered): 0.40 x ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000 ========
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($110,000 - $100,000) = +4,000 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 x $100,000 = +10,000 -------- Total death benefit of: $124,000 ========
- During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. 88 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 x $110,000) = -------------------- $57,619 $105,000 plus the EEP Part I (40% of earnings at death): 0.40 x ($57,619 - $55,000) = +1,048 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: +5,500 0.10 x $55,000 = ------- Total death benefit of: $64,167 =======
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $64,167. The reduction in contract value has no effect. - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. Because we are beyond the fourth contract anniversary the EEP also reaches its maximum of 20%. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEP Part I (40% of earnings at death) .40 x (2.50 x $55,000) = +55,000 plus the EEP Part II which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $266,000 ========
- During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on either the EEP Part I or EEP Part II. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed): $250,000 plus the EEP Part I (40% of earnings at death) .40 x (2.50 x $55,000) = +55,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $316,000 ========
- During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEP Part I changes but the value of the EEP Part II remains constant. The death benefit equals: MAV death benefit amount (contract value): $250,500 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $319,700 ========
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 89 APPENDIX E: EXAMPLE -- OPTIONAL LIVING BENEFITS THE PURPOSE OF THIS APPENDIX IS TO ILLUSTRATE THE OPERATION OF VARIOUS OPTIONAL LIVING BENEFIT RIDERS. IN ORDER TO DEMONSTRATE THESE CONTRACT RIDERS, AN EXAMPLE MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THESE EXAMPLES ARE INTENDED TO SHOW HOW THE OPTIONAL RIDERS OPERATE, AND DO NOT TAKE INTO ACCOUNT WHETHER A PARTICULAR OPTIONAL RIDER IS PART OF A QUALIFIED ANNUITY. QUALIFIED ANNUITIES ARE SUBJECT TO RMDS AT CERTAIN AGES (SEE "TAXES -- QUALIFIED ANNUITIES -- REQUIRED MINIMUM DISTRIBUTIONS") WHICH MAY REQUIRE YOU TO TAKE PARTIAL SURRENDERS FROM THE CONTRACT. IF YOU ARE CONSIDERING THE ADDITION OF CERTAIN OPTIONAL RIDERS TO A QUALIFIED ANNUITY, YOU SHOULD CONSULT YOUR TAX ADVISOR PRIOR TO MAKING A PURCHASE FOR AN EXPLANATION OF THE POTENTIAL TAX IMPLICATION TO YOU. EXAMPLE -- ACCUMULATION BENEFIT The following example shows how the Accumulation Benefit rider works based on hypothetical values. It is not intended to depict investment performance of the contract. The example assumes: - You purchase the contract (with the Accumulation Benefit rider) with a payment of $100,000. No purchase payment credit applies. - You make no additional purchase payments. - You do not exercise the Elective Step-up option - The Accumulation Benefit rider fee is 0.80%.
ASSUMED NET PARTIAL SURRENDER ADJUSTED ACCUMULATION END OF CONTRACT YEAR RATE OF RETURN (BEGINNING OF YEAR) PARTIAL SURRENDER MCAV BENEFIT AMOUNT CONTRACT VALUE 1 12% 0 0 100,000 0 111,104 2 15% 0 0 101,398 0 126,747 3 3% 0 0 103,604 0 129,505 4 -8% 0 0 103,604 0 118,192 5 -15% 0 0 103,604 0 99,634 6 20% 2,000 2,080 101,525 0 116,224 7 15% 0 0 106,071 0 132,588 8 -10% 0 0 106,071 0 118,375 9 -20% 5,000 4,480 101,590 0 89,851 10 -12% 0 0 101,590 23,334 78,256
EXAMPLE -- SECURESOURCE RIDERS EXAMPLE #1: SINGLE LIFE BENEFIT: COVERED PERSON HAS NOT REACHED AGE 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - You are the sole owner and also the annuitant. You are age 60. - Automatic Annual Step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied Annual Step-ups are indicated in BOLD. 90 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - You elect the Moderate model portfolio at issue. On the 1st contract anniversary, you elect to change to the Moderately Aggressive model portfolio. The target model portfolio under the contract is the Moderate model portfolio.
LIFETIME WITHDRAWAL BASIC WITHDRAWAL BENEFIT BENEFIT HYPOTHETICAL ------------------------------------------- ------------------- CONTRACT ASSUMED DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $ N/A $ N/A 0.5 0 5,000 92,000 100,000 95,000 7,000 2,000 N/A N/A 1 0 0 90,000 90,000(1) 90,000(1) 6,300 6,300 N/A N/A 2 0 0 81,000 90,000 90,000 6,300 6,300 N/A N/A 5 0 0 75,000 90,000 90,000 6,300 6,300 5,400(2) 5,400(2) 5.5 0 5,400 70,000 90,000 84,600 6,300 900 5,400 0 6 0 0 69,000 90,000 84,600 6,300 6,300 5,400 5,400 6.5 0 6,300 62,000 90,000 78,300 6,300 0 3,720(3) 0 7 0 0 64,000 90,000 78,300 6,300 6,300 3,840 3,840 7.5 0 10,000 51,000 51,000(4) 51,000(4) 3,570 0 3,060(4) 0 8 0 0 55,000 55,000 55,000 3,850 3,850 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation, contract ownership change, or model portfolio changes), you can continue to withdraw up to either the GBP of $3,850 each year until the RBA is reduced to zero, or the ALP of $3,300 each year until the later of your death or the RBA is reduced to zero. (1) Allocation to the Moderately Aggressive model portfolio during a withdrawal phase will reset the benefit. The GBA is reset to the lesser of the prior GBA or the contract value. The RBA is reset to the lesser of the prior RBA or the contract value. The ALP (if established) is reset to the lesser of the prior ALP or 6% of the contract value. Any future withdrawals will reallocate your contract value to the Moderate model portfolio if you are invested more aggressively than the Moderate model portfolio. (2) The ALP and RALP are established on the contract anniversary date following the date the Covered Person reaches age 65 as 6% of the RBA. (3) The $6,300 withdrawal is greater than the $5,400 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $6,300 RBP allowed under the basic withdrawal benefit and the $3,840 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 91 EXAMPLE #2: SINGLE LIFE BENEFIT: COVERED PERSON HAS REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - You are the sole owner and also the annuitant. You are age 65. - Automatic Annual Step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied Annual Step-ups are indicated in BOLD. - Your death occurs after 6 1/2 contract years and your spouse continues the contract and rider. Your spouse is over age 65 and is the new Covered Person.
HYPOTHETICAL LIFETIME WITHDRAWAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------------- ------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $6,000 $6,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 6,300 6,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 6,600 6,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 6,600 6,600(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 6,600 0 4 0 0 115,000 115,000 115,000 8,050 8,050 6,900 6,900 4.5 0 8,050 116,000 115,000 106,950 8,050 0 6,900(3) 0 5 0 0 120,000 120,000 120,000 8,400 8,400 7,200 7,200 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 7,200(4) 0 6 0 0 125,000 125,000 125,000 8,750 8,750 7,500 7,500 6.5 0 0 110,000 125,000 125,000 8,750 8,750 6,600(5) 6,600(5) 7 0 0 105,000 125,000 125,000 8,750 8,750 6,600 6,600
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, contract ownership change, or model portfolio changes), your spouse can continue to withdraw up to either the GBP of $8,750 each year until the RBA is reduced to zero, or the ALP of $6,600 each year until the later of your spouse's death or the RBA is reduced to zero. (1) The Annual Step-up has not been applied to the RBP or RALP because any withdrawal after step up during the Waiting Period would reverse any prior step ups prior to determining if the withdrawal is excess. Therefore, during the Waiting Period, the RBP is the amount you can withdraw without incurring the GBA and RBA excess withdrawal processing, and the RALP is the amount you can withdraw without incurring the ALP excess withdrawal processing. (2) On the third anniversary (after the end of the Waiting Period), the RBP and RALP are set equal to the GBP and ALP, respectively. (3) The $8,050 withdrawal is greater than the $6,900 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $8,400 RBP allowed under the basic withdrawal benefit and the $7,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (5) At spousal continuation, the ALP is reset to the lesser of the prior ALP or 6% of the contract value and the RALP is reset to the ALP. 92 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE #3: JOINT LIFE BENEFIT: YOUNGER COVERED SPOUSE HAS NOT REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - You are age 59 and your spouse is age 60. - Automatic Annual Step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied Annual Step-ups are indicated in BOLD. - You elect the Moderate model portfolio at issue. On the 1st contract anniversary, you elect to change to the Moderately Aggressive model portfolio. The target model portfolio under the contract is the Moderate model portfolio. - Your death occurs after 9 1/2 contract years and your spouse continues the contract and rider; the lifetime benefit is not reset.
HYPOTHETICAL LIFETIME WITHDRAWAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------------- ------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $ N/A $ N/A 0.5 0 5,000 92,000 100,000 95,000 7,000 2,000 N/A N/A 1 0 0 90,000 90,000(1) 90,000(1) 6,300 6,300 N/A N/A 2 0 0 81,000 90,000 90,000 6,300 6,300 N/A N/A 6 0 0 75,000 90,000 90,000 6,300 6,300 5,400(2) 5,400(2) 6.5 0 5,400 70,000 90,000 84,600 6,300 900 5,400 0 7 0 0 69,000 90,000 84,600 6,300 6,300 5,400 5,400 7.5 0 6,300 62,000 90,000 78,300 6,300 0 3,720(3) 0 8 0 0 64,000 90,000 78,300 6,300 6,300 3,840 3,840 8.5 0 10,000 51,000 51,000(4) 51,000(4) 3,570 0 3,060(4) 0 9 0 0 55,000 55,000 55,000 3,850 3,850 3,300 3,300 9.5 0 0 54,000 55,000 55,000 3,850 3,850 3,300 3,300 10 0 0 52,000 55,000 55,000 3,850 3,850 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, or model portfolio changes), your spouse can continue to withdraw up to either the GBP of $3,850 each year until the RBA is reduced to zero, or the ALP of $3,300 each year until the later of your spouse's death or the RBA is reduced to zero. (1) The ALP and RALP are established on the contract anniversary date following the date the younger Covered Spouse reaches age 65 as 6% of the RBA. (2) Allocation to the Moderately Aggressive model portfolio during a withdrawal phase will reset the benefit. The GBA is reset to the lesser of the prior GBA or the contract value. The RBA is reset to the lesser of the prior RBA or the contract value. The ALP is reset to the lesser of the prior ALP or 6% of the contract value. Any future withdrawals will reallocate your contract value to the Moderate model portfolio if you are invested more aggressively than the Moderate model portfolio. (3) The $6,300 withdrawal is greater than the $5,400 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $6,300 RBP allowed under the basic withdrawal benefit and the $3,840 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 93 EXAMPLE #4: JOINT LIFE BENEFIT: YOUNGER COVERED SPOUSE HAS REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the contract with a payment of $100,000 and make no additional payments to the contract - You are age 71 and your spouse is age 70. - Automatic Annual Step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied Annual Step-ups are indicated in BOLD. - Your death occurs after 6 1/2 contract years and your spouse continues the contract and rider; the lifetime benefit is not reset.
HYPOTHETICAL LIFETIME WITHDRAWAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT BENEFIT DURATION PURCHASE PARTIAL CONTRACT ------------------------------------------- ------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $6,000 $6,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 6,300 6,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 6,600 6,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 6,600 6,600(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 6,600 0 4 0 0 115,000 115,000 115,000 8,050 8,050 6,900 6,900 4.5 0 8,050 116,000 115,000 106,950 8,050 0 6,900(3) 0 5 0 0 120,000 120,000 120,000 8,400 8,400 7,200 7,200 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 7,200(4) 0 6 0 0 125,000 125,000 125,000 8,750 8,750 7,500 7,500 6.5 0 0 110,000 125,000 125,000 8,750 8,750 7,500 7,500 7 0 0 105,000 125,000 125,000 8,750 8,750 7,500 7,500
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, or model portfolio changes), your spouse can continue to withdraw up to either the GBP of $8,750 each year until the RBA is reduced to zero, or the ALP of $7,500 each year until the later of your spouse's death or the RBA is reduced to zero. (1) The Annual Step-up has not been applied to the RBP or RALP because any withdrawal after step up during the Waiting Period would reverse any prior step ups prior to determining if the withdrawal is excess. Therefore, during the Waiting Period, the RBP is the amount you can withdraw without incurring the GBA and RBA excess withdrawal processing, and the RALP is the amount you can withdraw without incurring the ALP excess withdrawal processing. (2) On the third anniversary (after the end of the Waiting Period), the RBP and RALP are set equal to the GBP and ALP, respectively. (3) The $8,050 withdrawal is greater than the $6,900 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $8,400 RBP allowed under the basic withdrawal benefit and the $7,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. 94 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX F: ADDITIONAL RMD DISCLOSURE This appendix describes our current administrative practice for determining the amount of withdrawals in any contract year which an owner may take under the SecureSource rider or GWB for Life rider to satisfy the RMD rules under 401(a)(9) of the Code without application of the excess withdrawal processing described in the rider. We reserve the right to modify this administrative practice at any time upon 30 days' written notice to you. For contract holders subject to annual RMD rules under the Section 401(a)(9) of the Code, amounts you withdraw each year from this contract to satisfy these rules are not subject to excess withdrawal processing under the terms of the rider, subject to the following rules and our current administrative practice: (1) If on the date we calculated your Annual Life Expectancy Required Minimum Distribution Amount (ALERMDA), it is greater than the RBP from the beginning of the current contract year, - A Basic Additional Benefit Amount (BABA) will be set equal to that portion of your ALERMDA that exceeds the value of the RBP from the beginning of the current contract year. - Any withdrawals taken in a contract year will count first against and reduce the RBP for that contract year. - Once the RBP for the current contract year has been depleted, any additional amounts withdrawn will count against and reduce the BABA. These withdrawals will not be considered excess withdrawals with regard to the GBA and RBA as long as they do not exceed the remaining BABA. - Once the BABA has been depleted, any additional withdrawal amounts will be considered excess withdrawals with regard to the GBA and RBA and will subject them all to the excess withdrawal processing described by the SecureSource(SM) rider or GWB for Life rider. (2) If on the date we calculated your ALERMDA, it is greater than the RALP from the beginning of the current contract year, - A Lifetime Additional Benefit Amount (LABA) will be set equal to that portion of your ALERMDA that exceeds the value of RALP from the beginning of the current contract year. - Any withdrawals taken in a contract year will count first against and reduce the RALP for that contract year. - Once the RALP for the current contract year has been depleted, any additional amounts withdrawn will count against and reduce the LABA. These withdrawals will not be considered excess withdrawals with regard to the ALP as long as they do not exceed the remaining LABA. - Once the LABA has been depleted, any additional withdrawal amounts will be considered excess withdrawals with regard to the ALP and will subject the ALP to the excess withdrawal processing described by the SecureSource or GWB for Life rider. (3) If the ALP is established on a contract anniversary where your current ALERMDA is greater than the new RALP, - An initial LABA will be set equal to that portion of your ALERMDA that exceeds the new RALP. - This new LABA will be immediately reduced by the amount that total withdrawals in the current calendar year exceed the new RALP, but shall not be reduced to less than zero. The ALERMDA is: (1) determined by us each calendar year; (2) based on the value of this contract alone on the date it is determined; (3) based on recalculated life expectancy taken from the Uniform Lifetime Table under the Code (applicable only to SecureSource riders); and (4) based on the company's understanding and interpretation of the requirements for life expectancy distributions intended to satisfy the required minimum distribution rules under Code Section 401(a)(9) and the Treasury Regulations promulgated thereunder as applicable on the effective date of this prospectus, to: 1. IRAs under Section 408(b) of the Code; 2. Roth IRAs under Section 408A of the Code; 3. SIMPLE IRAs under Section 408(p) of the Code; 4. Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code; 5. Custodial and investment only plans under Section 401(a) of the Code; 6. TSAs under Section 403(b) of the Code. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 95 In the future, the requirements under tax law for such distributions may change and the life expectancy amount calculation provided under your SecureSource rider or GWB for Life rider may not be sufficient to satisfy the requirements under the tax law for these types of distributions. In such a situation, amounts withdrawn to satisfy such distribution requirements will exceed your available RBP or RALP amount and may result in the reduction of your GBA, RBA, and/or ALP as described under the excess withdrawal provision of the rider. In cases where the Code does not allow the life expectancy of a natural person to be used to calculate the required minimum distribution amount (e.g., some ownerships by trusts and charities), we will calculate the life expectancy RMD amount as zero in all years. The life expectancy required minimum distribution amount calculated by us will also equal zero in all years. Please consult your tax advisor about the impact of these rules prior to purchasing the SecureSource rider. 96 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX G: GUARANTOR WITHDRAWAL BENEFIT FOR LIFE RIDER DISCLOSURE GUARANTOR WITHDRAWAL BENEFIT FOR LIFE (GWB FOR LIFE) RIDER THE GWB FOR LIFE RIDER IS NO LONGER AVAILABLE FOR SALE. The GWB for Life rider is an optional benefit that you may select for an additional annual charge if(1): - the rider is available in your state; and - you are age 80 or younger on the contract issue date; or, if an owner is a nonnatural person, then the annuitant is age 80 or younger on the contract issue date. (1)The GWB for Life rider is not available under an inherited qualified annuity. You must have elected the GWB for Life rider when you purchased your contract. The rider effective date will be the contract issue date. It is available for nonqualified annuities and qualified annuities except under 401(a) plans. The GWB for Life rider guarantees that you will be able to withdraw up to a certain amount each year from the contract, regardless of the investment performance of your contract before the annuity payments begin, until you have recovered at minimum all of your purchase payments plus any purchase payment credits. And, under certain limited circumstances defined in the rider, you have the right to take a specified amount of partial withdrawals in each contract year until death (see "At Death" heading below) -- even if the contract value is zero. Your contract provides for annuity payouts to begin on the settlement date (see "Buying Your Contract -- Settlement Date"). Before the settlement date, you have the right to surrender some or all of your contract value, less applicable administrative, surrender and rider charges imposed under the contract at the time of the surrender (see "Surrenders"). Because your contract value will fluctuate depending on the performance of the underlying funds in which the subaccounts invest, the contract itself does not guarantee that you will be able to take a certain surrender amount each year before the annuity payouts begin, nor does it guarantee the length of time over which such surrenders can be made before the annuity payouts begin. The GWB for Life rider may be appropriate for you if you intend to make periodic withdrawals from your annuity contract and wish to ensure that market performance will not adversely affect your ability to withdraw your principal over time. Under the terms of the GWB for Life rider, the calculation of the amount which can be withdrawn in each contract year varies depending on several factors, including but not limited to the waiting period (see "Waiting period" heading below) and whether or not the lifetime withdrawal benefit has become effective: (1) The basic withdrawal benefit gives you the right to take limited partial withdrawals in each contract year and guarantees that over time the withdrawals will total an amount equal to, at minimum, your purchase payments plus any purchase payment credits. Key terms associated with the basic withdrawal benefit are "Guaranteed Benefit Payment (GBP)," "Remaining Benefit Payment (RBP)," "Guaranteed Benefit Amount (GBA)," and "Remaining Benefit Amount (RBA)." See these headings below for more information. (2) The lifetime withdrawal benefit gives you the right, under certain limited circumstances defined in the rider, to take limited partial withdrawals until the later of death (see "At Death" heading below) or until the RBA (under the basic withdrawal benefit)is reduced to zero. Key terms associated with the lifetime withdrawal benefit are "Annual Lifetime Payment (ALP)," "Remaining Annual Lifetime Payment (RALP)," "Covered Person," and "Annual Lifetime Payment Attained Age (ALPAA)." See these headings below for more information. Only the basic withdrawal benefit will be in effect prior to the date that the lifetime withdrawal benefit becomes effective. The lifetime withdrawal benefit becomes effective automatically on the rider anniversary date after the covered person reaches age 65 or the rider effective date if the covered person is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" heading below). Provided the annuity payouts have not begun, the GWB for Life rider guarantees that you may take the following partial withdrawal amounts each contract year: - After the waiting period and before the establishment of the ALP, the rider guarantees that each contract year you can cumulatively withdraw an amount equal to the GBP; - During the waiting period and before the establishment of the ALP, the rider guarantees that each contract year you can cumulatively withdraw an amount equal to the value of the RBP at the beginning of the contract year; - After the waiting period and after the establishment of the ALP, the rider guarantees that each contract year you have the option to cumulatively withdraw an amount equal to the ALP or the GBP, but the rider does not guarantee withdrawals of the sum of both the ALP and the GBP in a contract year; RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 97 - During the waiting period and after the establishment of the ALP, the rider guarantees that each contract year you have the option to cumulatively withdraw an amount equal to the value of the RALP or the RBP at the beginning of the contract year, but the rider does not guarantee withdrawals of the sum of both the RALP and the RBP in a contract year. If you withdraw less than the allowed partial withdrawal amount in a contract year, the unused portion cannot be carried over to the next contract year. As long as your partial withdrawals in each contract year do not exceed the annual partial withdrawal amount allowed under the rider, and there has not been a contract ownership change or spousal continuation of the contract, the guaranteed amounts available for partial withdrawals are protected (i.e., will not decrease). If you withdraw more than the allowed partial withdrawal amount in a contract year, we call this an "excess withdrawal" under the rider. Excess withdrawals trigger an adjustment of a benefit's guaranteed amount, which may cause it to be reduced (see "GBA Excess Withdrawal Processing", "RBA Excess Withdrawal Processing", and "ALP Excess Withdrawal Processing" headings below). Please note that each of the two benefits has its own definition of the allowed annual withdrawal amount. Therefore, a partial withdrawal may be considered an excess withdrawal for purposes of the lifetime withdrawal benefit only, basic benefit only, or both. If your withdrawals exceed the greater of the RBP or the RALP, surrender charges under the terms of the contract may apply (see "Charges -- Surrender Charges"). The amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. Market value adjustments, if applicable, will also be made (see "Guarantee Period Accounts (GPAs) -- Market Value Adjustment"). We pay you the amount you request. Any partial withdrawals you take under the contract will reduce the value of the death benefits. (see "Benefits in Case of Death" and "Optional Benefits"). Upon full surrender of the contract, you will receive the remaining contract value less any applicable charges (see "Surrenders"). The rider's guaranteed amounts can be increased at the specified intervals if your contract value has increased. An annual step up feature is available at each contract anniversary, subject to certain conditions, and may be applied automatically to your contract or may require you to elect the step up (see "Annual Step Up" heading below). If you exercise the annual step up election, the spousal continuation step up election (see "Spousal Continuation Step Up" heading below) or change your PN program model portfolio, the rider charge may increase (see "Charges"). If you take withdrawals during the waiting period, any prior steps ups applied will be reversed and step ups will not be available until the end of waiting period. You may take withdrawals after the waiting period without reversal of prior step ups. You should consider whether the GWB for Life rider is appropriate for you because: - LIFETIME WITHDRAWAL BENEFIT LIMITATIONS: The lifetime withdrawal benefit is subject to certain limitations, including but not limited to: (a) Once the contract value is less than $600*, payments are made for as long as the oldest owner or, if an owner is a nonnatural person, the oldest annuitant, is living (see "If Contract Value Reduces to Less than $600" heading below). However, if the contract value is $600 or greater, the lifetime withdrawal benefit terminates when a death benefit becomes payable (see "At Death" heading below). Therefore, if there are multiple contract owners, the rider may terminate or the lifetime benefit may be reduced. When one of the contract owners dies the benefit terminates even though other contract owners are still living (except, if the contract is continued under the spousal continuation provision of the contract). * Under our current administrative practice, we allow the minimum contract value to be $0. Therefore, these limitations will only apply when the contract value is reduced to zero. (b) Excess withdrawals can reduce the ALP to zero even though the GBA, RBA, GBP and/or RBP values are greater than zero. If the both the ALP and the contract value are zero, the lifetime withdrawal benefit will terminate. (c) When the lifetime withdrawal benefit is first established, the initial ALP is based on the basic withdrawal benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below), unless there has been a spousal continuation or ownership change. Any withdrawal you take before the ALP is established reduces the RBA and therefore may result in a lower amount of lifetime withdrawals you are allowed to take. (d) Withdrawals can reduce both the contract value and the RBA to zero prior to the establishment of the ALP. If this happens, the contract and the GWB for Life rider will terminate. - USE OF THE PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM IS REQUIRED: You must elect one of the model portfolios of the PN program. This requirement limits your choice of subaccounts, regular fixed account and GPAs (if available) to those that are in the model portfolio you select. You may allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA fixed account, when available (see "The Special DCA Fixed Account"), and we will make monthly transfers into the model portfolio you have chosen. This means you will not be able to allocate contract value to all 98 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS of the subaccounts, GPAs or the regular fixed account that are available under the contract to contract owners who do not elect this rider. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program".) Subject to state restrictions, we reserve the right to limit the number of model portfolios from which you can select based on the dollar amount of purchase payments you make. - LIMITATIONS ON PURCHASE PAYMENTS: We reserve the right to limit the cumulative amount of purchase payments, subject to state restrictions. For current limitation, see "Buying Your Contract -- Purchase Payments". - LIMITATIONS ON PURCHASE OF OTHER RIDERS UNDER THIS CONTRACT: If you select the GWB for Life rider, you may not elect the Accumulation Benefit rider. - NON-CANCELABLE: Once elected, the GWB for Life rider may not be cancelled and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero (described below) or annuity payouts begin. - INTERACTION WITH TOTAL FREE AMOUNT (TFA) CONTRACT PROVISION: The TFA is the amount you are allowed to withdraw from the contract in each contract year without incurring a surrender charge (see "Charges -- Surrender Charge"). The TFA may be greater than the RBP or RALP under this rider. Any amount you withdraw under the contract's TFA provision that exceeds the RBP or RALP is subject to the excess withdrawal processing described below for the GBA, RBA and ALP. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation: - TAX CONSIDERATIONS FOR NONQUALIFIED ANNUITIES: Under current federal income tax law, withdrawals under nonqualified annuities, including partial withdrawals taken from the contract under the terms of this rider, are treated less favorably than amounts received as annuity payments under the contract. (See "Taxes -- Nonqualified Annuities".) Also, withdrawals before age 59 1/2 may incur a 10% IRS early withdrawal penalty and may be considered taxable income. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation. - TAX CONSIDERATIONS FOR QUALIFIED ANNUITIES: Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see "Taxes -- Qualified Annuities -- Required Minimum Distributions.") If you have a qualified annuity, you may need to take an RMD that exceeds the guaranteed amount of withdrawal available under the rider and such withdrawals may reduce future benefits guaranteed under the rider. While the rider permits certain excess withdrawals to be made for the purpose of satisfying RMD requirements for this contract alone without reducing future benefits guaranteed under the rider, there can be no guarantee that changes in the federal income tax law after the effective date of the rider will not require a larger RMD to be taken, in which case, future guaranteed withdrawals under the rider could be reduced. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation. See Appendix F for additional information. - TAX CONSIDERATIONS FOR TSAS: If your contract is a TSA, your right to take a surrender is restricted (see "TSA -- Special Provisions"), so the rider may be of limited value to you. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation. KEY TERMS AND PROVISIONS OF THE GWB FOR LIFE RIDER ARE DESCRIBED BELOW: WITHDRAWAL: For the purposes of this rider, the term "withdrawal" is equal to the term "surrender" in the contract or any other riders. Withdrawals will adjust contract values and benefits in the same manner as surrenders. PARTIAL WITHDRAWALS: A withdrawal of an amount that does not result in a surrender of the contract. The partial withdrawal amount is a gross amount and will include any surrender charge and any market value adjustment. WAITING PERIOD: The period of time starting on the rider effective date during which the annual step up is not available if you take withdrawals. The current waiting period is three years. GUARANTEED BENEFIT AMOUNT (GBA): The total cumulative amount available for partial withdrawals over the life of the rider under the basic withdrawal benefit. The maximum GBA is $5,000,000. The GBA cannot be withdrawn and is not payable as a death benefit. Rather, the GBA is an interim value used to calculate the amount available for withdrawals each year under the basic withdrawal benefit (see "Guaranteed Benefit Payment" below). At any time, the total GBA is the sum of the individual GBAs associated with each purchase payment. The GBA is determined at the following times, calculated as described: - At contract issue -- the GBA is equal to the initial purchase payment, plus any purchase payment credit; - When you make additional purchase payments -- each additional purchase payment has its own GBA equal to the amount of the purchase payment plus any purchase payment credit. - At step up -- (see "Annual Step Up," and "Spousal Continuation Step Up" headings below). RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 99 - When an individual RBA is reduced to zero -- the GBA that is associated with that RBA will also be set to zero. - When you make a partial withdrawal during the waiting period and after a step- up -- Any prior annual step-ups will be reversed. Step up reversal means that the GBA associated with each purchase payment will be reset to the amount of that purchase payment plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBA remains unchanged. If there have been multiple purchase payments, both the total GBA and each payment's GBA remain unchanged. (b) is greater than the total RBP -- GBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. If the partial withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. GBA EXCESS WITHDRAWAL PROCESSING The total GBA will automatically be reset to the lesser of (a) the total GBA immediately prior to the excess withdrawal; or (b) the contract value immediately following the withdrawal. If there have been multiple purchase payments, each payment's GBA after the withdrawal will be reset to equal that payment's RBA after the withdrawal plus (a) times (b), where: (a) is the ratio of the total GBA after the withdrawal less the total RBA after the withdrawal to the total GBA before the withdrawal less the total RBA after the withdrawal; and (b) is each payment's GBA before the withdrawal less that payment's RBA after the withdrawal. REMAINING BENEFIT AMOUNT (RBA): Each withdrawal you make reduces the amount of GBA that is guaranteed by this rider as future withdrawals. At any point in time, the RBA equals the amount of GBA that remains available for withdrawals for the remainder of the contract's life, and total RBA is the sum of the individual RBAs associated with each purchase payment. The maximum RBA is $5,000,000. The RBA is determined at the following times, calculated as described: - At contract issue -- the RBA is equal to the initial purchase payment plus any purchase payment credit. - When you make additional purchase payments -- each additional purchase payment has its own RBA initially set equal to that payment's GBA (the amount of the purchase payment plus any purchase payment credit). - At step up -- (see "Annual Step Up," and "Spousal Continuation Step Up" headings below). - When you make a partial withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the RBA associated with each purchase payment will be reset to the amount of that purchase payment plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the total RBA is reduced by the amount of the withdrawal. If there have been multiple purchase payments, each payment's RBA is reduced in proportion to its RBP. (b) is greater than the total RBP -- RBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. If the partial withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. RBA EXCESS WITHDRAWAL PROCESSING The total RBA will automatically be reset to the lesser of (a) the contract value immediately following the withdrawal, or (b) the total RBA immediately prior to the withdrawal, less the amount of the withdrawal. If there have been multiple purchase payments, both the total RBA and each payment's RBA will be reset. The total RBA will be reset according to the excess withdrawal processing described above. Each payment's RBA will be reset in the following manner: 1. The withdrawal amount up to the total RBP is taken out of each RBA bucket in proportion to its individual RBP at the time of the withdrawal; and 2. The withdrawal amount above the total RBP and any amount determined by the excess withdrawal processing are taken out of each RBA bucket in proportion to its RBA at the time of the withdrawal. GUARANTEED BENEFIT PAYMENT (GBP): At any time, the amount available for partial withdrawals in each contract year after the waiting period, until the RBA is reduced to zero, under the basic withdrawal benefit. At any point in time, each purchase 100 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS payment has its own GBP, which is equal to the lesser of that payment's RBA or 7% of that payment's GBA, and the total GBP is the sum of the individual GBPs. During the waiting period, the guaranteed annual withdrawal amount may be less than the GBP due to the limitations the waiting period imposes on your ability to utilize both annual step ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual withdrawal amount during the waiting period is equal to the value of the RBP at the beginning of the contract year. The GBP is determined at the following times, calculated as described: - At contract issue -- the GBP is established as 7% of the GBA value. - At each contract anniversary -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value. - When you make additional purchase payments -- each additional purchase payment has its own GBP equal to that purchase payment amount plus any purchase payment credit, multiplied by 7%. - At step up -- (see "Annual Step Up," and "Spousal Continuation Step Up" headings below). - When an individual RBA is reduced to zero -- the GBP associated with that RBA will also be reset to zero. - When you make a partial withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the GBA and the RBA associated with each purchase payment will be reset to the amount of that purchase payment. Each payment's GBP will be reset to the sum of that purchase payment and any purchase payment credit, multiplied by 7%. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBP remains unchanged. (b) is greater than the total RBP -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value, based on the RBA and GBA after the withdrawal. If the partial withdrawal is made during the waiting period, these calculations are done AFTER any previously applied annual step ups have been reversed. REMAINING BENEFIT PAYMENT (RBP): The amount available for partial withdrawals for the remainder of the contract year under the basic withdrawal benefit. At any point in time, the total RBP is the sum of the RBPs for each purchase payment. During the waiting period, when the guaranteed amount may be less than the GBP, the value of the RBP at the beginning of the contract year will be that amount that is actually guaranteed each contract year. The RBP is determined at the following times, calculated as described: - At the beginning of each contract year during the waiting period and prior to any withdrawal -- the RBP for each purchase payment is set equal to that purchase payment plus any purchase payment credit, multiplied by 7%. - At the beginning of any other contract year -- the RBP for each purchase payment is set equal to that purchase payment's GBP. - When you make additional purchase payments -- each additional purchase payment has its own RBP equal to that payment's GBP. - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - At spousal continuation -- See "Spousal Option to Continue the Contract" heading below. - When an individual RBA is reduced to zero -- the RBP associated with that RBA will also be reset to zero. - When you make any partial withdrawal -- the total RBP is reset to equal the total RBP immediately prior to the partial withdrawal less the amount of the partial withdrawal, but not less than zero. If there have been multiple purchase payments, each payment's RBP is reduced proportionately. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RBP, GBA EXCESS WITHDRAWAL PROCESSING AND RBA EXCESS WITHDRAWAL PROCESSING ARE APPLIED and the amount available for the future partial withdrawals for the remainder of the contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in the excess withdrawal processing, the applicable RBP will not yet reflect the amount of the current withdrawal. COVERED PERSON: The person whose life is used to determine when the ALP is established, and the duration of the ALP payments. The covered person is the oldest contract owner unless otherwise specified on your contract data page. If an owner is a nonnatural person (i.e. trust or corporation), the covered person is the oldest annuitant. A spousal continuation or a change of contract ownership may reduce the amount of the lifetime withdrawal benefit and may change the covered person. ANNUAL LIFETIME PAYMENT ATTAINED AGE (ALPAA): The covered person's age after which time the lifetime benefit can be established. Currently, the lifetime benefit can be established on the later of the contract effective date or the contract anniversary date on/following the date the covered person reaches age 65. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 101 ANNUAL LIFETIME PAYMENT (ALP): Once established, the ALP at any time is the amount available for withdrawals in each contract year after the waiting period until the later of death (see "At Death" heading below), or the RBA is reduced to zero, under the lifetime withdrawal benefit. The maximum ALP is $300,000. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the ALP is zero. During the waiting period, the guaranteed annual lifetime withdrawal amount may be less than the ALP due to the limitations the waiting period imposes on your ability to utilize both annual step-ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual lifetime withdrawal amount during the waiting period is equal to the value of the RALP at the beginning of the contract year. The ALP is determined at the following times: - The later of the contract effective date or the contract anniversary date on/following the date the covered person reaches age 65 -- the ALP is established as 6% of the total RBA. - When you make additional purchase payments -- each additional purchase payment increases the ALP by the amount of the purchase payment plus any purchase payment credit, multiplied by 6%. - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - At contract ownership change -- (see "Spousal Option to Continue the Contract" and "Contract Ownership Change" headings below). - When you make a partial withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the ALP will be reset to equal total purchase payments plus any purchase payment credits, multiplied by 6%. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the RALP -- the ALP remains unchanged. (b) is greater than the RALP -- ALP EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE ALP. Please note that if the partial withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. ALP EXCESS WITHDRAWAL PROCESSING The ALP is reset to the lesser of the ALP immediately prior to the withdrawal, or 6% of the contract value immediately following the withdrawal. REMAINING ANNUAL LIFETIME PAYMENT (RALP): The amount available for partial withdrawals for the remainder of the contract year under the lifetime withdrawal benefit. During the waiting period, when the guaranteed annual withdrawal amount may be less than the ALP, the value of the RALP at the beginning of the contract year will be the amount that is actually guaranteed each contract year. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the RALP is zero. THE RALP IS DETERMINED AT THE FOLLOWING TIMES: - The later of the contract effective date or the contract anniversary date following the date the covered person reaches age 65, and: (a) During the waiting period and Prior to any withdrawals -- the RALP is established equal to the sum of purchase payments and purchase payment credits, multiplied by 6%. (b) At any other time -- the RALP is established equal to the ALP. - At the beginning of each contract year during the waiting period and prior to any withdrawals -- the RALP is set equal to the total purchase payments plus any purchase payment credits, multiplied by 6%. - At the beginning of any other contract year -- the RALP is set equal to ALP. - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - When you make additional purchase payments -- each additional purchase payment increases the RALP by the sum of the purchase payment and any purchase payment credit, multiplied by 6%. - When you make any partial withdrawal -- the RALP equals the RALP immediately prior to the partial withdrawal less the amount of the partial withdrawal, but not less than zero. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RALP, ALP EXCESS WITHDRAWAL PROCESSING IS APPLIED and the amount available for future partial withdrawals for the remainder of the contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in excess withdrawal processing, the applicable RALP will not yet reflect the amount of the current withdrawal. 102 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS REQUIRED MINIMUM DISTRIBUTIONS (RMD): If you are taking RMDs from this contract and the RMD calculated separately for this contract is greater than the RBP or the RALP on the most recent contract anniversary, the portion of the RMD that exceeds the RBP or RALP will not be subject to excess withdrawal processing provided that the following conditions are met: - The RMD is the life expectancy RMD for this contract alone; and - The RMD amount is based on the requirements of the Code section 401(a) (9), related Code provisions and regulations thereunder that were in effect on the effective date of this rider. RMD rules follow the calendar year which most likely does not coincide with your contract year and therefore may limit when you can take your RMD and not be subject to excess withdrawal processing. Withdrawal amounts greater than the RBP or RALP on the contract anniversary date that do not meet these conditions will result in excess withdrawal processing as described above. See Appendix F for additional information. STEP UP DATE: The date any step up becomes effective, and depends on the type of step up being applied (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). ANNUAL STEP UP: Beginning with the first contract anniversary, an increase of the GBA, RBA, GBP, RBP, ALP, and/or RALP values may be available. A step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be withdrawn or paid upon death. Rather, a step up determines the current values of the GBA, RBA, GBP, RBP, ALP, and RALP, and may extend the payment period or increase the allowable payment. The annual step up is subject to the following rules: - The annual step up is available when the RBA, or if established, the ALP, would increase on the step up date. - Only one step up is allowed each contract year. - If you take any withdrawals during the waiting period, any previously applied step ups will be reversed and the annual step up will not be available until the end of the waiting period. - If the application of the step up does not increase the rider charge, the annual step up will be automatically applied to your contract, and the step up date is the contract anniversary date. - If the application of the step up would increase the rider charge, the annual step up is not automatically applied. Instead, you have the option to step up for 30 days after the contract anniversary. If you exercise the elective annual step up option, you will pay the rider charge in effect on the step up date. If you wish to exercise the elective annual step up option, we must receive a request from you or your financial advisor. The step up date is the date we receive your request to step up. If your request is received after the close of business, the step up date will be the next valuation day. - The ALP and RALP are not eligible for step ups until they are established. Prior to being established, the ALP and RALP values are both zero. - Please note it is possible for the ALP to step up even if the RBA or GBA do not step up and it is also possible for the RBA and GBA to step up even if the ALP does not step up. The annual step up resets the GBA, RBA, GBP, RBP, ALP and RALP values as follows: - The total RBA will be reset to the greater of the total RBA immediately prior to the step up date or the contract value on the step up date. - The total GBA will be reset to the greater of the total GBA immediately prior to the step up date or the contract value on the step up date. - The total GBP will be reset using the calculation as described above based on the increased GBA and RBA. - The total RBP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RBP will not be affected by the step up. (b) At any other time, the RBP will be reset as the increased GBP less all prior withdrawals made in the current contract year, but not less than zero. - The ALP will be reset to the greater of the ALP immediately prior to the step up date or 6% of the contract value on the step up date. - The RALP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RALP will not be affected by the step up. (b) At any other time, the RALP will be reset as the increased ALP less all prior withdrawals made in the current contract year, but not less than zero. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 103 SPOUSAL OPTION TO CONTINUE THE CONTRACT: If a surviving spouse elects to continue the contract and continues the contract as the new owner under the spousal continuation provision of the contract, the GWB for Life rider also continues. When the spouse elects to continue the contract, any remaining waiting period is cancelled; the covered person will be re-determined and is the covered person referred to below; and the GBA, RBA, GBP, RBP, ALP and RALP values are affected as follows: - The GBA, RBA, and GBP values remain unchanged. - The RBP is automatically reset to the GBP less all prior withdrawals made in the current contract year, but not less than zero. - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the date of continuation -- the ALP will be established on the contract anniversary following the date the covered person reaches age 65 as the lesser of the RBA or the anniversary contract value, multiplied by 6%. The RALP will be established on the same date equal to the ALP. - If the ALP has not yet been established but the new covered person is age 65 or older as of the date of continuation -- the ALP will be established on the date of continuation as the lesser of the RBA or the contract value, multiplied by 6%. The RALP will be established on the same date in an amount equal to the ALP less all prior partial withdrawals made in the current contract year, but will never be less than zero. - If the ALP has been established but the new covered person has not yet reached age 65 as of the date of continuation -- the ALP and RALP will be automatically reset to zero for the period of time beginning with the date of continuation and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%, and the RALP will be reset to the ALP. - If the ALP has been established and the new covered person is age 65 or older as of the date of continuation -- the ALP will be automatically reset to the lesser of the current ALP or 6% of the contract value on the date of continuation. The RALP will be reset to the ALP less all prior withdrawals made in the current contract year, but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the spousal continuation. SPOUSAL CONTINUATION STEP UP: If a surviving spouse elects to continue the contract, another elective step up option becomes available. To exercise the step up, the spouse or the spouse's financial advisor must submit a request within 30 days of the date of continuation. The step up date is the date we receive the spouse's request to step up. If the request is received after the close of business, the step up date will be the next valuation day. The GBA, RBA, GBP, RBP, ALP and RALP will be reset in the same fashion as the annual step up. If the spousal continuation step up option is exercised and we have increased the charge for the rider, the spouse will pay the charge that is in effect on the step up date. It is our current administrative practice to process the spousal continuation step up as described in the next paragraph; however, we reserve the right to discontinue the administrative practice and will give you 30 days' written notice of any such change. At the time of spousal continuation, a step-up may be available. All annual step-up rules (see "Annual Step-Up" heading above), other than those that apply to the waiting period, also apply to the spousal continuation step-up. If the spousal continuation step-up is processed automatically, the step-up date is the valuation date the spousal continuation is effective. If not, the spouse must elect the step up and must do so within 30 days of the spousal continuation date. If the spouse elects the spousal continuation step up, the step-up date is the valuation date we receive the spouse's written request to step up if we receive the request by the close of business on that day, otherwise the next valuation date. IF CONTRACT VALUE REDUCES TO LESS THAN $600*: If the contract value reduces to less than $600 and the total RBA remains greater than zero, you will be paid in the following scenarios: 1) The ALP has not yet been established and the contract value is reduced to less than $600 for any reason other than full or partial surrender of more than the RBP. In this scenario, you can choose to: (a) receive the remaining schedule of GBPs until the RBA equals zero; or (b) wait until the rider anniversary on/following the date the covered person reaches age 65, and then receive the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 2) The ALP has been established and the contract value reduces to less than $600 as a result of fees or charges, or a withdrawal that is less than or equal to both the RBP and the RALP. In this scenario, you can choose to receive: (a) the remaining schedule of GBPs until the RBA equals zero; or (b) the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero. 104 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS We will notify you of this option. If no election is made, the ALP will be paid. 3) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP. In this scenario, the remaining schedule of GBPs will be paid until the RBA equals zero. 4) The ALP has been established and the contract value falls to zero as a result of a partial withdrawal that is greater than the RBP but less than or equal to the RALP. In this scenario, the ALP will be paid annually until the death of the Covered Person. Under any of these scenarios: - The annualized amounts will be paid to you in the frequency you elect. You may elect a frequency offered by us at the time payments begin. Available payment frequencies will be no less frequent than annually. - We will no longer accept additional purchase payments; - You will no longer be charged for the rider; - Any attached death benefit riders will terminate; and - The death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. The GWB for Life rider and the contract will terminate under either of the following two scenarios: - If the contract value falls to zero as a result of a withdrawal that is greater than the RBP and RALP. This is full surrender of the contract. - If the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP, and the total RBA is reduced to zero. * Under the current administrative practice, we allow the minimum contract value to be $0. Therefore, these scenarios will only apply when the contract value is reduced to zero. AT DEATH: If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may elect to take the death benefit as a lump sum under the terms of the contract (see "Benefits in Case of Death") or the annuity payout option (see "Remaining Benefit Amount Payout Option" heading below). If the contract value equals zero and the death benefit becomes payable, the following will occur: - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - If the covered person dies and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - If the covered person is still alive and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the later of the death of the covered person or the RBA equals zero. - If the covered person is still alive and the RBA equals zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the death of the covered person. - If the covered person dies and the RBA equals zero, the benefit terminates. No further payments will be made. CONTRACT OWNERSHIP CHANGE: If the contract changes ownership (see "Changing Ownership"), the covered person will be redetermined and is the covered person referred to below. The GBA, RBA, GBP, RBP values will remain unchanged. The ALP and RALP will be reset as follows. Our current administrative practice is to only reset the ALP and RALP if the covered person changes due to the ownership change. - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be established on the contract anniversary following the date the covered person reaches age 65. The ALP will be set equal to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the anniversary date occurs during the waiting period and prior to a withdrawal, the RALP will be set equal to the lesser of the ALP or total purchase payments plus purchase payment credits, multiplied by 6%. If the anniversary date occurs at any other time, the RALP will be set to the ALP. - If the ALP has not yet been established but the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be established on the ownership change date. The ALP will be set equal to the lesser of the RBA or the contract value, multiplied by 6%. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be set to the lesser of the ALP or total purchase payments plus purchase payment credits, multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be set equal to the ALP less all prior withdrawals made in the current contract year but not less than zero. - If the ALP has been established but the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be reset to zero for the period of time beginning with the ownership change date and ending RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 105 with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the time period ends during the waiting period and prior to any withdrawals, the RALP will be reset to the lesser of the ALP or total purchase payments plus any purchase payment credits, multiplied by 6%. If the time period ends at any other time, the RALP will be reset to the ALP. - If the ALP has been established and the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be reset on the ownership change date. The ALP will be reset to the lesser of the current ALP or 6% of the contract value. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be reset to the lesser of the ALP or total purchase payments plus purchase payment credits, multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be reset to the ALP less all prior withdrawals made in the current contract year but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the ownership change. REMAINING BENEFIT AMOUNT PAYOUT OPTION: Several annuity payout plans are available under the contract. As an alternative to these annuity payout plans, a fixed annuity payout option is available under the GWB for Life rider. Under this option the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the current total RBA at the time you begin this fixed annuity payout option. These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at that time but will be no less frequent than annually. If, at the death of the owner, total payments have been made for less than the RBA, the remaining payments will be paid to the beneficiary (see "The Annuity Payout Period" and "Taxes"). This option may not be available if the contract is issued to qualify under Section 403 or 408 of the Code. For such contracts, this option will be available only if the number of years it will take to deplete the RBA by paying the GBP each year is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using a life expectancy table published by the IRS. This annuity payout option may also be elected by the beneficiary of a contract as a settlement option. Whenever multiple beneficiaries are designated under the contract, each such beneficiary's share of the proceeds if they elect this option will be in proportion to their applicable designated beneficiary percentage. Beneficiaries of nonqualified contracts may elect this settlement option subject to the distribution requirements of the contract. We reserve the right to adjust the future schedule of GBPs if necessary to comply with the Code. RIDER TERMINATION The GWB for Life rider cannot be terminated either by you or us except as follows: 1. Annuity payouts under an annuity payout plan will terminate the rider. 2. Termination of the contract for any reason will terminate the rider. 106 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE -- GWB FOR LIFE RIDER EXAMPLE #1: COVERED PERSON HAS NOT REACHED AGE 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the RAVA 4 Select contract with a payment of $100,000. - You are the sole owner and also the annuitant. You are age 60. - You make no additional payments to the contract. - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD.
LIFETIME WITHDRAWAL BASIC WITHDRAWAL BENEFIT BENEFIT HYPOTHETICAL ------------------------------------------- ------------------- CONTRACT ASSUMED DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $ N/A $ N/A 0.5 0 7,000 92,000 100,000 93,000 7,000 0 N/A N/A 1 0 0 91,000 100,000 93,000 7,000 7,000 N/A N/A 1.5 0 7,000 83,000 100,000 86,000 7,000 0 N/A N/A 2 0 0 81,000 100,000 86,000 7,000 7,000 N/A N/A 5 0 0 75,000 100,000 86,000 7,000 7,000 5,160(1) 5,160(1) 5.5 0 5,160 70,000 100,000 80,840 7,000 1,840 5,160 0 6 0 0 69,000 100,000 80,840 7,000 7,000 5,160 5,160 6.5 0 7,000 62,000 100,000 73,840 7,000 0 3,720(2) 0 7 0 0 70,000 100,000 73,840 7,000 7,000 4,200 4,200 7.5 0 10,000 51,000 51,000(3) 51,000(3) 3,570 0 3,060(3) 0 8 0 0 55,000 55,000 55,000 3,850 3,850 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation or contract ownership change), you can continue to withdraw up to either the GBP of $3,850 each year until the RBA is reduced to zero, or the ALP of $3,300 each year until the later of your death or the RBA is reduced to zero. (1) The ALP and RALP are established on the contract anniversary date following the date the covered person reaches age 65. (2) The $7,000 withdrawal is greater than the $5,160 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (3) The $10,000 withdrawal is greater than both the $7,000 RBP allowed under the basic withdrawal benefit and the $4,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 107 EXAMPLE #2: COVERED PERSON HAS REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the RAVA 4 Select contract with a payment of $100,000. - You are the sole owner and also the annuitant. You are age 65. - You make no additional payments to the contract. - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD.
LIFETIME WITHDRAWAL BASIC WITHDRAWAL BENEFIT BENEFIT HYPOTHETICAL ------------------------------------------- ------------------- CONTRACT ASSUMED DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP ALP RALP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 $6,000 $6,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 6,300 6,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 6,600 6,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 6,600 6,600(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 6,600 0 4 0 0 115,000 115,000 115,000 8,050 8,050 6,900 6,900 4.5 0 8,050 116,000 115,000 106,950 8,050 0 6,900(3) 0 5 0 0 120,000 120,000 120,000 8,400 8,400 7,200 7,200 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 7,200(4) 0 6 0 0 125,000 125,000 125,000 8,750 8,750 7,500 7,500
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation or contract ownership change), you can continue to withdraw up to either the GBP of $8,750 each year until the RBA is reduced to zero, or the ALP of $7,500 each year until the later of your death or the RBA is reduced to zero. (1) The annual step-up has not been applied to the RBP or RALP because any withdrawal after step up during the waiting period would reverse any prior step ups prior to determining if the withdrawal is excess. Therefore, during the waiting period, the RBP is the amount you can withdraw without incurring the GBA and RBA excess withdrawal processing, and the RALP is the amount you can withdraw without incurring the ALP excess withdrawal processing. (2) On the third anniversary (after the end of the waiting period), the RBP and RALP are set equal to the GBP and ALP, respectively. (3) The $8,050 withdrawal is greater than the $6,900 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $8,400 RBP allowed under the basic withdrawal benefit and the $7,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. 108 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX H: CONDENSED FINANCIAL INFORMATION (Unaudited) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each price level is noted in parenthesis.
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.69 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 2,879 2,330 1,060 ---------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 2,546 2,798 719 ---------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.90 $1.17 $1.00 Accumulation unit value at end of period $0.36 $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 3,711 1,648 695 ---------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.85 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,220 2,213 16,983 ---------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.40 $1.24 $1.00 Accumulation unit value at end of period $0.83 $1.40 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 191,749 79,002 607 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.37 $1.15 $1.00 Accumulation unit value at end of period $0.71 $1.37 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,964 1,519 6,467 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.17 $1.00 Accumulation unit value at end of period $0.72 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 5,992 7,074 1,936 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (06/26/2006) Accumulation unit value at beginning of period $1.30 $1.24 $1.00 Accumulation unit value at end of period $0.60 $1.30 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 295,091 140,364 33,087 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.23 $1.10 $1.00 Accumulation unit value at end of period $0.74 $1.23 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,325 1,295 346 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.16 $1.00 Accumulation unit value at end of period $0.84 $1.12 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 74,527 79,523 987 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.25 $1.04 $1.00 Accumulation unit value at end of period $0.72 $1.25 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 3,395 2,725 36,949 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.16 $1.00 Accumulation unit value at end of period $0.79 $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 10,333 11,609 3,143 ---------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.08 $1.00 Accumulation unit value at end of period $0.82 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 8,519 8,110 2,469 ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 109
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.09 $1.00 Accumulation unit value at end of period $0.77 $1.28 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 391,002 205,091 48,403 ---------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.43 $1.20 $1.00 Accumulation unit value at end of period $0.73 $1.43 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 10,806 7,134 23,001 ---------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.02 $1.00 Accumulation unit value at end of period $0.78 $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 6,606 4,051 23,928 ---------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.37 $1.18 $1.00 Accumulation unit value at end of period $0.78 $1.37 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 3,075 2,094 733 ---------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES* (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.16 $1.00 Accumulation unit value at end of period $0.74 $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,427 1,318 693 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.03 $1.00 Accumulation unit value at end of period $0.75 $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 165,981 112,633 46,638 ---------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.12 $1.00 Accumulation unit value at end of period $0.80 $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 1,827 1,105 403 ---------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.34 $1.17 $1.00 Accumulation unit value at end of period $0.77 $1.34 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 4,123 4,214 1,467 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.10 $1.00 Accumulation unit value at end of period $0.73 $1.28 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 379,751 246,455 94,738 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.25 $1.09 $1.00 Accumulation unit value at end of period $0.75 $1.25 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 248,092 127,339 36,125 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.35 $1.16 $1.00 Accumulation unit value at end of period $0.75 $1.35 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 10,113 8,721 2,653 ---------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.95 $1.22 $1.00 Accumulation unit value at end of period $0.55 $0.95 $1.22 Number of accumulation units outstanding at end of period (000 omitted) 13,508 15,015 6,443 ---------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.09 $1.00 Accumulation unit value at end of period $0.70 $1.06 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 12,625 11,602 4,228 ---------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.14 $1.00 Accumulation unit value at end of period $0.73 $1.17 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 17,652 20,093 5,798 ---------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.69 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 7,321 9,453 4,040 ----------------------------------------------------------------------------------------------------
110 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- Accumulation unit value at end of period $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 430,107 255,815 -- ---------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.02 $1.00 -- Accumulation unit value at end of period $0.60 $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 1,683 864 -- ---------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.10 $1.00 Accumulation unit value at end of period $0.76 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,141 650 320 ---------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.11 $1.00 Accumulation unit value at end of period $0.88 $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 8,002 7,011 2,045 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ---------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.57 $1.24 $1.00 Accumulation unit value at end of period $0.97 $1.57 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 18,559 16,501 4,446 ---------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.17 $1.00 Accumulation unit value at end of period $0.64 $1.20 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 119,726 86,117 26,194 ---------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.14 $1.00 Accumulation unit value at end of period $0.73 $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 833 629 164 ---------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.23 $1.17 $1.00 Accumulation unit value at end of period $0.73 $1.23 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 7,145 6,835 2,542 ---------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.10 $1.00 Accumulation unit value at end of period $0.66 $1.08 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 7,814 7,765 3,088 ---------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.08 $1.00 Accumulation unit value at end of period $1.00 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 420,661 316,103 64,310 ---------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.12 $1.07 $1.00 Accumulation unit value at end of period $0.65 $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,604 1,833 138 ---------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.07 $1.00 Accumulation unit value at end of period $0.96 $1.15 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 346,275 235,995 82,883 ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 877 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,569 -- -- ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 111
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,114 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,980 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,295 -- -- ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.12 $1.00 Accumulation unit value at end of period $0.70 $1.15 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 315,690 173,483 64,829 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.10 $1.00 Accumulation unit value at end of period $0.73 $1.16 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 671 780 107 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.12 $1.00 Accumulation unit value at end of period $0.72 $1.06 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 309,935 185,435 24,338 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.13 $1.00 Accumulation unit value at end of period $0.79 $1.14 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 2,682 3,274 829 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.07 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 97,399 60,832 34,337 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were 0.06% and 0.06%, respectively. ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.05 $1.00 Accumulation unit value at end of period $1.02 $1.10 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 788,507 586,913 145,290 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.13 $1.00 Accumulation unit value at end of period $0.71 $1.21 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 581,359 300,203 93,936 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.18 $1.15 $1.00 Accumulation unit value at end of period $0.68 $1.18 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,237 1,353 461 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.11 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 259,518 199,962 41,689 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.03 $1.00 Accumulation unit value at end of period $1.10 $1.11 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 159,105 125,450 53,228 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.08 $1.00 Accumulation unit value at end of period $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 13,874 16,917 6,215 ----------------------------------------------------------------------------------------------------
112 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.07 $1.00 Accumulation unit value at end of period $0.88 $1.09 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 209,056 151,929 49,975 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.05 $1.00 Accumulation unit value at end of period $0.65 $1.19 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 1,407 1,461 338 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.65 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 94,511 58,370 50,393 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.14 $1.00 Accumulation unit value at end of period $0.74 $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 4,520 3,380 1,079 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.03 $1.00 Accumulation unit value at end of period $1.04 $1.08 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 18,319 9,945 2,091 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.16 $1.14 $1.00 Accumulation unit value at end of period $0.64 $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,524 4,502 1,470 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.15 $1.16 $1.00 Accumulation unit value at end of period $0.69 $1.15 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 794 881 285 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,213 1,104 397 ---------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) Accumulation unit value at beginning of period $1.84 $1.34 $1.00 Accumulation unit value at end of period $0.84 $1.84 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 170,447 72,075 18,150 ---------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.32 $1.18 $1.00 Accumulation unit value at end of period $0.78 $1.32 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 3,440 3,482 1,285 ---------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.70 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 251,843 151,420 67,895 ---------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.29 $1.00 Accumulation unit value at end of period $0.64 $1.17 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 117,566 42,226 21,964 ---------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.31 $1.08 $1.00 Accumulation unit value at end of period $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 4,975 4,591 17,766 ---------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $1.43 $1.24 $1.00 Accumulation unit value at end of period $0.77 $1.43 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 120,530 56,104 23,903 ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 113
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.08 $1.00 Accumulation unit value at end of period $0.68 $1.13 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 123,418 77,217 9,756 ---------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.12 $1.00 Accumulation unit value at end of period $0.70 $1.18 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 1,767 2,129 556 ---------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.29 $1.15 $1.00 Accumulation unit value at end of period $0.75 $1.29 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 5,757 5,179 1,212 ----------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.68 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,891 1,961 1,047 ---------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,750 2,258 575 ---------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.90 $1.17 $1.00 Accumulation unit value at end of period $0.36 $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,599 982 377 ---------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.08 $1.00 Accumulation unit value at end of period $0.84 $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,902 1,489 7,279 ---------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.40 $1.24 $1.00 Accumulation unit value at end of period $0.82 $1.40 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 82,817 36,588 566 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.37 $1.15 $1.00 Accumulation unit value at end of period $0.71 $1.37 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 868 826 2,366 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.17 $1.00 Accumulation unit value at end of period $0.71 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 3,339 3,809 815 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (06/26/2006) Accumulation unit value at beginning of period $1.30 $1.24 $1.00 Accumulation unit value at end of period $0.60 $1.30 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 134,103 71,496 17,586 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.23 $1.09 $1.00 Accumulation unit value at end of period $0.73 $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 905 839 170 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.16 $1.00 Accumulation unit value at end of period $0.83 $1.12 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 34,239 39,420 1,124 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.72 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 2,187 1,670 16,170 ----------------------------------------------------------------------------------------------------
114 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.16 $1.00 Accumulation unit value at end of period $0.79 $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 8,788 9,147 3,228 ---------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.08 $1.00 Accumulation unit value at end of period $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 5,532 5,720 2,032 ---------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.76 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 170,602 98,884 25,237 ---------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.73 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 7,828 5,334 11,268 ---------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.02 $1.00 Accumulation unit value at end of period $0.77 $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 4,552 2,404 11,513 ---------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.37 $1.18 $1.00 Accumulation unit value at end of period $0.78 $1.37 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 2,216 1,461 334 ---------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES* (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.16 $1.00 Accumulation unit value at end of period $0.74 $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 795 825 218 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.03 $1.00 Accumulation unit value at end of period $0.74 $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 85,447 67,726 27,120 ---------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.12 $1.00 Accumulation unit value at end of period $0.79 $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 1,757 1,013 252 ---------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.33 $1.17 $1.00 Accumulation unit value at end of period $0.77 $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,444 2,285 776 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.27 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 170,866 120,474 48,092 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.09 $1.00 Accumulation unit value at end of period $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 111,747 60,463 18,038 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.75 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 5,707 4,948 1,434 ---------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.95 $1.21 $1.00 Accumulation unit value at end of period $0.54 $0.95 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 6,070 7,265 3,157 ---------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.70 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 6,684 6,312 2,407 ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 115
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.14 $1.00 Accumulation unit value at end of period $0.73 $1.17 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 13,358 15,116 4,294 ---------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.68 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 3,714 4,307 1,797 ---------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- Accumulation unit value at end of period $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 182,177 115,892 -- ---------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.02 $1.00 -- Accumulation unit value at end of period $0.60 $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 929 534 -- ---------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.10 $1.00 Accumulation unit value at end of period $0.75 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 807 641 321 ---------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.11 $1.00 Accumulation unit value at end of period $0.88 $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 6,155 5,665 1,087 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ---------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.57 $1.24 $1.00 Accumulation unit value at end of period $0.96 $1.57 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 10,996 10,760 2,967 ---------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.17 $1.00 Accumulation unit value at end of period $0.64 $1.20 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 49,940 38,901 12,041 ---------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.14 $1.00 Accumulation unit value at end of period $0.72 $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 615 433 124 ---------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.17 $1.00 Accumulation unit value at end of period $0.72 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 5,426 5,428 2,158 ---------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.66 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 5,373 5,501 2,177 ---------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.08 $1.00 Accumulation unit value at end of period $0.99 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 222,194 182,029 37,454 ---------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.12 $1.07 $1.00 Accumulation unit value at end of period $0.65 $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,236 1,705 113 ---------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.07 $1.00 Accumulation unit value at end of period $0.95 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 158,174 117,365 42,994 ----------------------------------------------------------------------------------------------------
116 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 494 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 776 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,254 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 764 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 660 -- -- ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.12 $1.00 Accumulation unit value at end of period $0.70 $1.15 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 135,010 80,555 31,988 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.16 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 682 661 84 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.12 $1.00 Accumulation unit value at end of period $0.72 $1.06 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 131,215 85,865 10,682 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.79 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 2,260 3,045 692 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.07 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 78,386 66,258 30,300 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.13%) and (0.13%), respectively. ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.01 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 396,544 332,535 82,281 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.13 $1.00 Accumulation unit value at end of period $0.71 $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 252,046 139,948 47,849 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 914 1,147 275 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.10 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 130,420 111,551 23,263 ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 117
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.09 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 81,236 68,621 29,756 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.08 $1.00 Accumulation unit value at end of period $0.80 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 10,347 11,949 4,619 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.07 $1.00 Accumulation unit value at end of period $0.87 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 95,420 75,951 28,107 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.05 $1.00 Accumulation unit value at end of period $0.65 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 951 867 201 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.65 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 41,871 28,850 23,159 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.14 $1.00 Accumulation unit value at end of period $0.74 $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,649 2,723 808 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.03 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 13,686 5,824 1,511 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.16 $1.14 $1.00 Accumulation unit value at end of period $0.64 $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 2,743 3,731 1,229 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.15 $1.16 $1.00 Accumulation unit value at end of period $0.69 $1.15 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 543 624 255 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 745 671 344 ---------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) Accumulation unit value at beginning of period $1.83 $1.34 $1.00 Accumulation unit value at end of period $0.84 $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 71,157 31,794 8,077 ---------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.31 $1.18 $1.00 Accumulation unit value at end of period $0.77 $1.31 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 3,288 3,183 1,483 ---------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.70 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 107,604 68,660 32,553 ---------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.64 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 50,443 20,119 11,119 ----------------------------------------------------------------------------------------------------
118 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.31 $1.08 $1.00 Accumulation unit value at end of period $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,825 2,863 8,501 ---------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $1.43 $1.24 $1.00 Accumulation unit value at end of period $0.77 $1.43 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 53,867 29,049 11,710 ---------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.08 $1.00 Accumulation unit value at end of period $0.67 $1.13 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 53,861 36,284 4,737 ---------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.11 $1.00 Accumulation unit value at end of period $0.70 $1.18 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 1,080 959 327 ---------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.29 $1.14 $1.00 Accumulation unit value at end of period $0.75 $1.29 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,444 3,245 854 ----------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.68 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 452 376 159 ---------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,144 1,126 320 ---------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.90 $1.17 $1.00 Accumulation unit value at end of period $0.36 $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,065 278 92 ---------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.08 $1.00 Accumulation unit value at end of period $0.84 $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 830 730 3,445 ---------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.40 $1.24 $1.00 Accumulation unit value at end of period $0.82 $1.40 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 53,378 18,933 98 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.37 $1.15 $1.00 Accumulation unit value at end of period $0.71 $1.37 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 587 365 1,142 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.17 $1.00 Accumulation unit value at end of period $0.71 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,592 1,556 507 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (06/26/2006) Accumulation unit value at beginning of period $1.30 $1.24 $1.00 Accumulation unit value at end of period $0.60 $1.30 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 87,244 38,356 8,397 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.23 $1.09 $1.00 Accumulation unit value at end of period $0.73 $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 150 158 111 ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 119
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.16 $1.00 Accumulation unit value at end of period $0.83 $1.12 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 21,846 20,594 250 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.72 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 577 514 7,306 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.16 $1.00 Accumulation unit value at end of period $0.79 $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 3,835 3,320 1,105 ---------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.08 $1.00 Accumulation unit value at end of period $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,027 1,780 588 ---------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.76 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 110,062 51,553 11,519 ---------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.73 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 4,367 2,855 5,330 ---------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.02 $1.00 Accumulation unit value at end of period $0.77 $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 3,330 1,797 5,526 ---------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.37 $1.18 $1.00 Accumulation unit value at end of period $0.78 $1.37 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,322 712 187 ---------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES* (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.16 $1.00 Accumulation unit value at end of period $0.74 $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 740 361 104 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.03 $1.00 Accumulation unit value at end of period $0.74 $1.03 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 52,812 32,564 11,485 ---------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.12 $1.00 Accumulation unit value at end of period $0.79 $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 508 272 85 ---------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.33 $1.17 $1.00 Accumulation unit value at end of period $0.77 $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,394 1,157 403 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.27 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 108,730 62,826 21,709 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.09 $1.00 Accumulation unit value at end of period $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 70,935 30,848 8,140 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.74 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,887 1,417 577 ----------------------------------------------------------------------------------------------------
120 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.95 $1.21 $1.00 Accumulation unit value at end of period $0.54 $0.95 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 3,060 2,707 1,034 ---------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.70 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,508 3,160 896 ---------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.14 $1.00 Accumulation unit value at end of period $0.73 $1.17 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 7,976 8,346 2,910 ---------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.13 $1.00 Accumulation unit value at end of period $0.68 $1.10 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 1,887 2,280 1,088 ---------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- Accumulation unit value at end of period $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 119,627 61,515 -- ---------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.02 $1.00 -- Accumulation unit value at end of period $0.60 $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 406 182 -- ---------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.10 $1.00 Accumulation unit value at end of period $0.75 $1.21 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 556 314 77 ---------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.11 $1.00 Accumulation unit value at end of period $0.88 $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 2,816 3,141 980 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ---------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.56 $1.24 $1.00 Accumulation unit value at end of period $0.96 $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 4,903 4,728 1,198 ---------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.17 $1.00 Accumulation unit value at end of period $0.63 $1.20 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 32,229 20,665 5,540 ---------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.14 $1.00 Accumulation unit value at end of period $0.72 $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 442 467 131 ---------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.17 $1.00 Accumulation unit value at end of period $0.72 $1.22 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,483 2,223 890 ---------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.66 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 3,710 3,313 1,148 ---------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.08 $1.00 Accumulation unit value at end of period $0.99 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 133,107 88,028 15,783 ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 121
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.12 $1.07 $1.00 Accumulation unit value at end of period $0.65 $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 558 739 14 ---------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.07 $1.00 Accumulation unit value at end of period $0.95 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 101,673 60,132 18,644 ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 169 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 436 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 634 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 965 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 324 -- -- ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.12 $1.00 Accumulation unit value at end of period $0.70 $1.15 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 88,037 42,507 14,138 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.16 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 95 225 61 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.12 $1.00 Accumulation unit value at end of period $0.71 $1.06 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 85,156 45,243 4,783 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.79 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 1,157 1,380 306 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.06 $1.02 $1.00 Accumulation unit value at end of period $1.07 $1.06 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 37,395 21,785 9,715 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.19%) and (0.19%), respectively. ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.01 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 248,818 163,183 34,539 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.13 $1.00 Accumulation unit value at end of period $0.71 $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 159,469 71,512 20,717 ----------------------------------------------------------------------------------------------------
122 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 366 461 129 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.10 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 79,449 54,634 9,735 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.09 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 48,593 33,414 12,575 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.08 $1.00 Accumulation unit value at end of period $0.80 $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,850 3,380 1,111 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.07 $1.00 Accumulation unit value at end of period $0.87 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 59,935 38,612 11,996 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.05 $1.00 Accumulation unit value at end of period $0.64 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 309 239 160 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.65 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 25,171 13,681 10,320 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.14 $1.00 Accumulation unit value at end of period $0.74 $1.19 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,026 1,015 235 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.03 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 3,556 1,592 369 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.16 $1.14 $1.00 Accumulation unit value at end of period $0.64 $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,181 1,382 367 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.14 $1.16 $1.00 Accumulation unit value at end of period $0.69 $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 100 168 24 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 263 187 54 ---------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) Accumulation unit value at beginning of period $1.83 $1.34 $1.00 Accumulation unit value at end of period $0.84 $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 45,352 16,836 3,634 ---------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.31 $1.18 $1.00 Accumulation unit value at end of period $0.77 $1.31 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,656 1,210 490 ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 123
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.69 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 70,085 36,823 14,779 ---------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.64 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 32,801 11,264 5,010 ---------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.31 $1.08 $1.00 Accumulation unit value at end of period $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,003 1,241 3,807 ---------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $1.43 $1.24 $1.00 Accumulation unit value at end of period $0.77 $1.43 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 32,472 14,103 5,176 ---------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.08 $1.00 Accumulation unit value at end of period $0.67 $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 34,099 19,102 2,525 ---------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.11 $1.00 Accumulation unit value at end of period $0.70 $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 883 413 120 ---------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.29 $1.14 $1.00 Accumulation unit value at end of period $0.75 $1.29 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,467 1,102 248 ----------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.09 $1.00 Accumulation unit value at end of period $0.68 $1.20 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 38 37 15 -------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 95 140 33 -------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.90 $1.17 $1.00 Accumulation unit value at end of period $0.36 $0.90 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 142 77 25 -------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.08 $1.00 Accumulation unit value at end of period $0.84 $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 21 34 203 -------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.39 $1.23 $1.00 Accumulation unit value at end of period $0.82 $1.39 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 2,467 1,191 21 -------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.36 $1.15 $1.00 Accumulation unit value at end of period $0.71 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 38 42 66 -------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.17 $1.00 Accumulation unit value at end of period $0.71 $1.21 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 213 268 73 --------------------------------------------------------------------------------------------------
124 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (06/26/2006) Accumulation unit value at beginning of period $1.29 $1.24 $1.00 Accumulation unit value at end of period $0.60 $1.29 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 5,358 3,278 875 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). -------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.23 $1.09 $1.00 Accumulation unit value at end of period $0.73 $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 12 15 12 -------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.16 $1.00 Accumulation unit value at end of period $0.83 $1.11 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,325 1,557 76 -------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.71 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 60 54 508 -------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.16 $1.00 Accumulation unit value at end of period $0.78 $1.09 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 477 423 118 -------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.08 $1.00 Accumulation unit value at end of period $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 321 388 166 -------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.76 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 5,685 3,534 1,110 -------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.72 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 415 517 474 -------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.02 $1.00 Accumulation unit value at end of period $0.77 $1.18 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 609 510 738 -------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.36 $1.18 $1.00 Accumulation unit value at end of period $0.78 $1.36 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 230 123 66 -------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES* (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.16 $1.00 Accumulation unit value at end of period $0.73 $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 41 76 61 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). -------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.02 $1.00 Accumulation unit value at end of period $0.74 $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 4,095 3,491 1,613 -------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.12 $1.00 Accumulation unit value at end of period $0.79 $1.19 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 66 26 3 -------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.33 $1.17 $1.00 Accumulation unit value at end of period $0.77 $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 97 111 62 --------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 125
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.27 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 6,247 4,856 1,983 -------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.09 $1.00 Accumulation unit value at end of period $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 4,270 2,609 824 -------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.74 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 372 336 120 -------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.94 $1.20 $1.00 Accumulation unit value at end of period $0.53 $0.94 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 374 322 108 -------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.70 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 274 319 119 -------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.73 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 862 939 403 -------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.68 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 233 489 186 -------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- Accumulation unit value at end of period $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 5,624 3,686 -- -------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.02 $1.00 -- Accumulation unit value at end of period $0.59 $1.02 -- Number of accumulation units outstanding at end of period (000 omitted) 16 5 -- -------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.75 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 166 147 60 -------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.11 $1.00 Accumulation unit value at end of period $0.87 $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 607 667 176 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. -------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.56 $1.24 $1.00 Accumulation unit value at end of period $0.96 $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 436 440 101 -------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.17 $1.00 Accumulation unit value at end of period $0.63 $1.19 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,455 1,246 432 -------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.14 $1.00 Accumulation unit value at end of period $0.72 $1.21 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 70 31 13 --------------------------------------------------------------------------------------------------
126 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.16 $1.00 Accumulation unit value at end of period $0.72 $1.22 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 521 383 108 -------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.66 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 262 374 133 -------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.08 $1.00 Accumulation unit value at end of period $0.99 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 11,659 10,327 3,211 -------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.12 $1.07 $1.00 Accumulation unit value at end of period $0.64 $1.12 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 74 45 -- -------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.07 $1.00 Accumulation unit value at end of period $0.95 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 5,995 4,401 1,767 -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 14 -- -- -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 107 -- -- -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 78 -- -- -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 52 -- -- -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 141 -- -- -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIOS - FUNDAMENTAL VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.12 $1.00 Accumulation unit value at end of period $0.69 $1.14 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 4,317 2,683 1,144 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.15 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 32 20 2 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.12 $1.00 Accumulation unit value at end of period $0.71 $1.05 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 3,930 2,808 336 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.78 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 134 177 42 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. --------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 127
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.02 $1.00 Accumulation unit value at end of period $1.06 $1.05 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 12,817 6,443 2,340 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.38%) and (0.38%), respectively. -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.01 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 18,072 15,662 3,649 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.13 $1.00 Accumulation unit value at end of period $0.71 $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 9,201 5,950 2,080 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 123 116 17 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.10 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 6,376 5,574 1,823 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.09 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 3,985 3,202 1,572 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.08 $1.00 Accumulation unit value at end of period $0.80 $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 714 778 163 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.07 $1.00 Accumulation unit value at end of period $0.87 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 3,302 2,730 1,216 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.05 $1.00 Accumulation unit value at end of period $0.64 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 46 47 28 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.64 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,356 1,081 810 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.14 $1.00 Accumulation unit value at end of period $0.74 $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 214 205 12 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.03 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 1,011 451 45 -------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.15 $1.13 $1.00 Accumulation unit value at end of period $0.63 $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 110 192 64 -------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.14 $1.16 $1.00 Accumulation unit value at end of period $0.68 $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 5 4 3 --------------------------------------------------------------------------------------------------
128 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 22 46 24 -------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) Accumulation unit value at beginning of period $1.83 $1.34 $1.00 Accumulation unit value at end of period $0.84 $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 2,146 1,134 297 -------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.31 $1.17 $1.00 Accumulation unit value at end of period $0.77 $1.31 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 145 164 97 -------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.69 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 3,645 2,734 1,254 -------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.64 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 1,624 799 494 -------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.31 $1.08 $1.00 Accumulation unit value at end of period $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 163 210 295 -------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $1.42 $1.24 $1.00 Accumulation unit value at end of period $0.76 $1.42 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 1,819 1,115 495 -------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.08 $1.00 Accumulation unit value at end of period $0.67 $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,064 1,447 279 -------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.11 $1.00 Accumulation unit value at end of period $0.69 $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 40 29 7 -------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.14 $1.00 Accumulation unit value at end of period $0.74 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 183 186 65 --------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.08 $1.00 Accumulation unit value at end of period $0.68 $1.20 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 387 388 257 ---------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 674 879 252 ---------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.89 $1.17 $1.00 Accumulation unit value at end of period $0.36 $0.89 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 507 155 60 ---------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.08 $1.00 Accumulation unit value at end of period $0.84 $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 577 362 1,832 ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 129
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.39 $1.23 $1.00 Accumulation unit value at end of period $0.82 $1.39 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 26,041 11,042 102 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.36 $1.15 $1.00 Accumulation unit value at end of period $0.71 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 280 300 564 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.17 $1.00 Accumulation unit value at end of period $0.71 $1.21 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 800 801 293 ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (06/26/2006) Accumulation unit value at beginning of period $1.29 $1.24 $1.00 Accumulation unit value at end of period $0.60 $1.29 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 45,368 24,195 5,843 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ---------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.23 $1.09 $1.00 Accumulation unit value at end of period $0.73 $1.23 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 206 102 23 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.16 $1.00 Accumulation unit value at end of period $0.83 $1.11 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 11,348 12,685 267 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.71 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 466 414 4,125 ---------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.16 $1.00 Accumulation unit value at end of period $0.78 $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 2,591 2,786 903 ---------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.08 $1.00 Accumulation unit value at end of period $0.81 $1.09 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,829 1,757 576 ---------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.76 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 54,827 31,528 7,437 ---------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.72 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 2,757 2,052 3,503 ---------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.01 $1.00 Accumulation unit value at end of period $0.77 $1.18 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 1,653 1,007 3,433 ---------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.36 $1.18 $1.00 Accumulation unit value at end of period $0.77 $1.36 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 826 586 205 ---------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES* (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.16 $1.00 Accumulation unit value at end of period $0.73 $1.19 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 268 279 72 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). ----------------------------------------------------------------------------------------------------
130 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.02 $1.00 Accumulation unit value at end of period $0.74 $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 33,621 26,240 10,136 ---------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.12 $1.00 Accumulation unit value at end of period $0.79 $1.19 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 634 277 35 ---------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.33 $1.17 $1.00 Accumulation unit value at end of period $0.76 $1.33 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,018 830 382 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.27 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.27 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 55,331 38,145 14,254 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.09 $1.00 Accumulation unit value at end of period $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 36,142 18,414 5,441 ---------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.74 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,670 1,294 483 ---------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.95 $1.21 $1.00 Accumulation unit value at end of period $0.54 $0.95 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 2,319 2,457 1,107 ---------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.69 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 2,047 2,059 1,064 ---------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.14 $1.00 Accumulation unit value at end of period $0.72 $1.16 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 5,780 6,302 2,030 ---------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.68 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 825 1,284 665 ---------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- Accumulation unit value at end of period $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 57,559 35,017 -- ---------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.01 $1.00 -- Accumulation unit value at end of period $0.59 $1.01 -- Number of accumulation units outstanding at end of period (000 omitted) 292 125 -- ---------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.75 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 479 325 80 ---------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.11 $1.00 Accumulation unit value at end of period $0.87 $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 2,842 2,788 793 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 131
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.56 $1.24 $1.00 Accumulation unit value at end of period $0.96 $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 3,917 3,235 1,005 ---------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.17 $1.00 Accumulation unit value at end of period $0.63 $1.19 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 15,089 11,632 3,205 ---------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.14 $1.00 Accumulation unit value at end of period $0.72 $1.20 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 155 142 29 ---------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.16 $1.00 Accumulation unit value at end of period $0.72 $1.22 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,612 1,649 663 ---------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.65 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,925 2,045 715 ---------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.08 $1.00 Accumulation unit value at end of period $0.98 $1.17 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 90,372 69,486 12,934 ---------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.11 $1.07 $1.00 Accumulation unit value at end of period $0.64 $1.11 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 441 420 98 ---------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.07 $1.00 Accumulation unit value at end of period $0.95 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 54,964 38,718 12,825 ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 197 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 275 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 782 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 705 -- -- ---------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 264 -- -- ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.11 $1.00 Accumulation unit value at end of period $0.69 $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 42,822 24,777 8,957 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.15 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 145 181 32 ----------------------------------------------------------------------------------------------------
132 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.12 $1.00 Accumulation unit value at end of period $0.71 $1.05 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 40,609 26,141 2,786 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.78 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 622 930 225 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.02 $1.00 Accumulation unit value at end of period $1.06 $1.05 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 30,883 25,294 9,800 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.41%) and (0.41%), respectively. ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.01 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 147,502 119,779 26,100 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.13 $1.00 Accumulation unit value at end of period $0.71 $1.20 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 78,564 42,436 14,023 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 444 536 207 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.05 $1.00 Accumulation unit value at end of period $1.10 $1.12 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 47,521 39,217 7,409 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.09 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 30,533 23,879 9,303 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.08 $1.00 Accumulation unit value at end of period $0.80 $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,938 3,520 1,205 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.07 $1.00 Accumulation unit value at end of period $0.87 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 31,638 24,436 8,700 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.05 $1.00 Accumulation unit value at end of period $0.64 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 153 191 44 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.64 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 12,410 8,621 6,289 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.14 $1.00 Accumulation unit value at end of period $0.73 $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,062 1,259 361 ---------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.03 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 5,026 2,324 623 ----------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 133
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.15 $1.13 $1.00 Accumulation unit value at end of period $0.63 $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 586 868 220 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.14 $1.16 $1.00 Accumulation unit value at end of period $0.68 $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 159 73 20 ---------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.04 $1.10 $1.00 Accumulation unit value at end of period $0.63 $1.04 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 123 147 51 ---------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) Accumulation unit value at beginning of period $1.83 $1.34 $1.00 Accumulation unit value at end of period $0.84 $1.83 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 21,216 9,418 2,130 ---------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.31 $1.17 $1.00 Accumulation unit value at end of period $0.77 $1.31 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,342 1,247 266 ---------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.69 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 34,546 21,804 9,512 ---------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.64 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 15,705 6,278 3,387 ---------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.31 $1.08 $1.00 Accumulation unit value at end of period $0.69 $1.31 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,340 1,013 2,328 ---------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $1.42 $1.24 $1.00 Accumulation unit value at end of period $0.76 $1.42 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 16,160 9,249 3,490 ---------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.08 $1.00 Accumulation unit value at end of period $0.67 $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 16,958 11,392 1,995 ---------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.11 $1.00 Accumulation unit value at end of period $0.69 $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 296 211 37 ---------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.14 $1.00 Accumulation unit value at end of period $0.74 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,063 968 178 ----------------------------------------------------------------------------------------------------
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.08 $1.00 Accumulation unit value at end of period $0.68 $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 188 124 96 --------------------------------------------------------------------------------------------------
134 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.62 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 95 149 13 -------------------------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $0.89 $1.17 $1.00 Accumulation unit value at end of period $0.36 $0.89 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 603 286 114 -------------------------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.08 $1.00 Accumulation unit value at end of period $0.83 $1.19 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 138 69 222 -------------------------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.39 $1.23 $1.00 Accumulation unit value at end of period $0.81 $1.39 $1.23 Number of accumulation units outstanding at end of period (000 omitted) 3,345 1,942 14 -------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.36 $1.15 $1.00 Accumulation unit value at end of period $0.70 $1.36 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 114 83 43 -------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.21 $1.17 $1.00 Accumulation unit value at end of period $0.71 $1.21 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 193 302 65 -------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B)* (06/26/2006) Accumulation unit value at beginning of period $1.29 $1.24 $1.00 Accumulation unit value at end of period $0.59 $1.29 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 7,868 5,603 1,561 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). -------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.09 $1.00 Accumulation unit value at end of period $0.73 $1.22 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 50 38 4 -------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.16 $1.00 Accumulation unit value at end of period $0.83 $1.11 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 2,024 2,413 40 -------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.04 $1.00 Accumulation unit value at end of period $0.71 $1.24 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 127 152 530 -------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.16 $1.00 Accumulation unit value at end of period $0.78 $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 939 802 213 -------------------------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.08 $1.00 Accumulation unit value at end of period $0.80 $1.08 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,097 885 286 -------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (06/26/2006) Accumulation unit value at beginning of period $1.26 $1.09 $1.00 Accumulation unit value at end of period $0.75 $1.26 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 8,302 5,811 1,493 -------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (06/26/2006) Accumulation unit value at beginning of period $1.42 $1.20 $1.00 Accumulation unit value at end of period $0.72 $1.42 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 887 819 748 -------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.01 $1.00 Accumulation unit value at end of period $0.77 $1.17 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 883 655 700 --------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 135
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.36 $1.18 $1.00 Accumulation unit value at end of period $0.77 $1.36 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 317 164 35 -------------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES* (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.16 $1.00 Accumulation unit value at end of period $0.73 $1.18 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 76 72 18 *Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). -------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.03 $1.02 $1.00 Accumulation unit value at end of period $0.74 $1.03 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 8,356 9,232 4,655 -------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.12 $1.00 Accumulation unit value at end of period $0.79 $1.19 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 208 34 32 -------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.32 $1.17 $1.00 Accumulation unit value at end of period $0.76 $1.32 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 194 198 79 -------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.27 $1.09 $1.00 Accumulation unit value at end of period $0.71 $1.27 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 9,818 8,451 3,216 -------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.24 $1.09 $1.00 Accumulation unit value at end of period $0.74 $1.24 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 6,011 4,186 1,152 -------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.34 $1.16 $1.00 Accumulation unit value at end of period $0.74 $1.34 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 624 609 234 -------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $0.94 $1.20 $1.00 Accumulation unit value at end of period $0.53 $0.94 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 433 489 414 -------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.09 $1.00 Accumulation unit value at end of period $0.69 $1.05 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 685 602 232 -------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.72 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,691 1,979 485 -------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.68 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 335 494 196 -------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) (PREVIOUSLY JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: SERVICE SHARES) Accumulation unit value at beginning of period $1.06 $1.00 -- Accumulation unit value at end of period $0.63 $1.06 -- Number of accumulation units outstanding at end of period (000 omitted) 7,617 5,761 -- -------------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS I (04/27/2007) Accumulation unit value at beginning of period $1.01 $1.00 -- Accumulation unit value at end of period $0.59 $1.01 -- Number of accumulation units outstanding at end of period (000 omitted) 103 33 -- --------------------------------------------------------------------------------------------------
136 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.10 $1.00 Accumulation unit value at end of period $0.74 $1.20 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 224 122 57 -------------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS* (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.11 $1.00 Accumulation unit value at end of period $0.87 $1.13 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 842 881 156 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. -------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.56 $1.24 $1.00 Accumulation unit value at end of period $0.95 $1.56 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 1,003 1,091 467 -------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.17 $1.00 Accumulation unit value at end of period $0.63 $1.19 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,895 2,072 680 -------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.14 $1.00 Accumulation unit value at end of period $0.72 $1.20 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 84 42 5 -------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.22 $1.16 $1.00 Accumulation unit value at end of period $0.72 $1.22 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 693 779 266 -------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.10 $1.00 Accumulation unit value at end of period $0.65 $1.07 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 350 487 231 -------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.08 $1.00 Accumulation unit value at end of period $0.98 $1.16 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 21,803 18,995 3,974 -------------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (09/15/2006) Accumulation unit value at beginning of period $1.11 $1.07 $1.00 Accumulation unit value at end of period $0.64 $1.11 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 323 375 6 -------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.07 $1.00 Accumulation unit value at end of period $0.94 $1.14 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 9,430 7,577 2,481 -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.71 -- -- Number of accumulation units outstanding at end of period (000 omitted) 11 -- -- -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.84 -- -- Number of accumulation units outstanding at end of period (000 omitted) 253 -- -- -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.76 -- -- Number of accumulation units outstanding at end of period (000 omitted) 656 -- -- -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.73 -- -- Number of accumulation units outstanding at end of period (000 omitted) 44 -- -- -------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $1.00 -- -- Accumulation unit value at end of period $0.79 -- -- Number of accumulation units outstanding at end of period (000 omitted) 421 -- -- --------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 137
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.14 $1.11 $1.00 Accumulation unit value at end of period $0.69 $1.14 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 5,981 4,256 1,499 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.15 $1.10 $1.00 Accumulation unit value at end of period $0.72 $1.15 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 119 35 6 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.12 $1.00 Accumulation unit value at end of period $0.71 $1.05 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 5,050 4,362 417 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND* (06/26/2006) Accumulation unit value at beginning of period $1.13 $1.13 $1.00 Accumulation unit value at end of period $0.78 $1.13 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 375 619 350 *Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (06/26/2006) Accumulation unit value at beginning of period $1.05 $1.02 $1.00 Accumulation unit value at end of period $1.06 $1.05 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 21,135 15,777 7,385 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2008 were (0.57%) and (0.57%), respectively. -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.05 $1.00 Accumulation unit value at end of period $1.00 $1.09 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 31,170 28,774 5,708 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (06/26/2006) Accumulation unit value at beginning of period $1.20 $1.12 $1.00 Accumulation unit value at end of period $0.70 $1.20 $1.12 Number of accumulation units outstanding at end of period (000 omitted) 12,673 9,098 3,489 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND) Accumulation unit value at beginning of period $1.17 $1.15 $1.00 Accumulation unit value at end of period $0.67 $1.17 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 86 136 38 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.11 $1.05 $1.00 Accumulation unit value at end of period $1.09 $1.11 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 9,621 9,331 1,982 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.10 $1.03 $1.00 Accumulation unit value at end of period $1.08 $1.10 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 7,067 5,715 2,119 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.07 $1.00 Accumulation unit value at end of period $0.80 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,461 1,856 514 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (06/26/2006) Accumulation unit value at beginning of period $1.08 $1.07 $1.00 Accumulation unit value at end of period $0.86 $1.08 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 4,855 4,738 1,866 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.05 $1.00 Accumulation unit value at end of period $0.64 $1.18 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 81 89 16 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (06/26/2006) Accumulation unit value at beginning of period $1.19 $1.09 $1.00 Accumulation unit value at end of period $0.64 $1.19 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,749 1,681 1,085 --------------------------------------------------------------------------------------------------
138 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2008 2007 2006 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (06/26/2006) Accumulation unit value at beginning of period $1.18 $1.14 $1.00 Accumulation unit value at end of period $0.73 $1.18 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 476 499 10 -------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (06/26/2006) Accumulation unit value at beginning of period $1.07 $1.03 $1.00 Accumulation unit value at end of period $1.02 $1.07 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 2,703 1,689 130 -------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - GROWTH FUND) Accumulation unit value at beginning of period $1.15 $1.13 $1.00 Accumulation unit value at end of period $0.63 $1.15 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 206 237 69 -------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - LARGE CAP VALUE FUND) Accumulation unit value at beginning of period $1.14 $1.16 $1.00 Accumulation unit value at end of period $0.68 $1.14 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 23 41 15 -------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (06/26/2006) (PREVIOUSLY RVST RIVERSOURCE VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND) Accumulation unit value at beginning of period $1.03 $1.09 $1.00 Accumulation unit value at end of period $0.63 $1.03 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 22 19 5 -------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (06/26/2006) Accumulation unit value at beginning of period $1.82 $1.34 $1.00 Accumulation unit value at end of period $0.83 $1.82 $1.34 Number of accumulation units outstanding at end of period (000 omitted) 2,601 1,669 340 -------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.30 $1.17 $1.00 Accumulation unit value at end of period $0.77 $1.30 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 182 260 100 -------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.09 $1.13 $1.00 Accumulation unit value at end of period $0.69 $1.09 $1.13 Number of accumulation units outstanding at end of period (000 omitted) 5,243 4,556 1,999 -------------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.16 $1.28 $1.00 Accumulation unit value at end of period $0.63 $1.16 $1.28 Number of accumulation units outstanding at end of period (000 omitted) 2,112 1,085 624 -------------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (06/26/2006) Accumulation unit value at beginning of period $1.30 $1.08 $1.00 Accumulation unit value at end of period $0.68 $1.30 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 268 387 397 -------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (06/26/2006) Accumulation unit value at beginning of period $1.42 $1.24 $1.00 Accumulation unit value at end of period $0.76 $1.42 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 2,386 1,978 779 -------------------------------------------------------------------------------------------------- WANGER USA (06/26/2006) Accumulation unit value at beginning of period $1.12 $1.08 $1.00 Accumulation unit value at end of period $0.67 $1.12 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,340 2,054 422 -------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (06/26/2006) Accumulation unit value at beginning of period $1.17 $1.11 $1.00 Accumulation unit value at end of period $0.69 $1.17 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 67 86 9 -------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (06/26/2006) Accumulation unit value at beginning of period $1.28 $1.14 $1.00 Accumulation unit value at end of period $0.74 $1.28 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 334 363 74 --------------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 139 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts.............. p. 3 Rating Agencies.......................... p. 4 Revenues Received During Calendar Year 2008................................... p. 4 Principal Underwriter.................... p. 5 Independent Registered Public Accounting Firm................................... p. 5 Financial Statements
140 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS THIS PAGE LEFT BLANK INTENTIONALLY RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 141 (RIVERSOURCE ANNUITIES LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C)2008-2009 RiverSource Life Insurance Company. All rights reserved. S-6503 G (5/09) PART B. STATEMENT OF ADDITIONAL INFORMATION FOR RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) - BAND 3 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY - BAND 3 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT PLUS(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR 4 ADVANTAGE(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR 4 SELECT(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR 4 ACCESS(R) VARIABLE ANNUITY RIVERSOURCE(R) FLEXIBLE PORTFOLIO ANNUITY RIVERSOURCE VARIABLE ACCOUNT 10 (previously IDS Life Variable Account 10) MAY 1, 2009 RiverSource Variable Account 10 is a separate account of RiverSource Life Insurance Company (RiverSource Life). This Statement of Additional Information (SAI) is not a prospectus. It should be read together with the prospectus dated the same date as this SAI, which may be obtained from your sales representative, or by writing or calling us at the address and telephone number below. This SAI contains financial information for all the subaccounts of RiverSource Variable Account 10. Not all subaccounts of RiverSource Variable Account 10 apply to your specific contract. RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (800) 862-7919 S-6325 G (5/09) TABLE OF CONTENTS Calculating Annuity Payouts..................................................... p. 3 Rating Agencies ................................................................ p. 4 Revenues Received During Calendar Year 2008..................................... p. 4 Principal Underwriter........................................................... p. 5 Independent Registered Public Accounting Firm................................... p. 5 Financial Statements
2 RIVERSOURCE VARIABLE ACCOUNT 10 CALCULATING ANNUITY PAYOUTS THE VARIABLE ACCOUNT We do the following calculations separately for each of the subaccounts of the variable account. The separate monthly payouts, added together, make up your total variable annuity payout. INITIAL PAYOUT: To compute your first monthly payout, we: - determine the dollar value of your contract on the valuation date and deduct any applicable premium tax; then - apply the result to the annuity table contained in the contract or another table at least as favorable. The annuity table shows the amount of the first monthly payout for each $1,000 of value which depends on factors built into the table, as described below. ANNUITY UNITS: We then convert the value of your subaccount to annuity units. To compute the number of units credited to you, we divide the first monthly payout by the annuity unit value (see below) on the valuation date. The number of units in your subaccount is fixed. The value of the units fluctuates with the performance of the underlying fund. SUBSEQUENT PAYOUTS: To compute later payouts, we multiply: - the annuity unit value on the valuation date; by - the fixed number of annuity units credited to you. ANNUITY UNIT VALUES: We originally set this value at $1 for each subaccount. To calculate later values we multiply the last annuity value by the product of: - the net investment factor; and - the neutralizing factor. The purpose of the neutralizing factor is to offset the effect of the assumed rate built into the annuity table. With an assumed investment rate of 5%, the neutralizing factor is 0.999866 for a one day valuation period. NET INVESTMENT FACTOR: We determine the net investment factor by: - adding the fund's current net asset value per share plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - dividing that sum by the previous adjusted net asset value per share; and - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the net investment factor may be greater or less than one, and the annuity unit value may increase or decrease. You bear this investment risk in a subaccount. THE FIXED ACCOUNT We guarantee your fixed annuity payout amounts. Once calculated, your payout will remain the same and never change. To calculate your annuity payouts we: - take the value of your fixed account at the retirement/settlement date or the date you selected to begin receiving your annuity payouts; then - using an annuity table, we apply the value according to the annuity payout plan you select. The annuity payout table we use will be the one in effect at the time you choose to begin your annuity payouts. The values in the table will be equal to or greater than the table in your contract. RIVERSOURCE VARIABLE ACCOUNT 10 3 RATING AGENCIES We receive ratings from independent rating agencies. These agencies evaluate the financial soundness and claims-paying ability of insurance companies based on a number of different factors. The ratings reflect each agency's estimation of our ability to meet our contractual obligations such as making annuity payouts and paying death benefits and other distributions. As such, the ratings relate to our fixed account and not to the subaccounts. This information generally does not relate to the management or performance of the subaccounts. For detailed information on the agency ratings given to RiverSource Life, see "Debt & Ratings Information" under "Investors Relations" on our website at ameriprise.com or contact your sales representative. You also may view our current ratings by visiting the agency websites directly at: A.M. Best www.ambest.com Fitch www.fitchratings.com Moody's www.moodys.com/insurance Standard & Poor's www.standardandpoors.com
A.M. Best -- Rates insurance companies for their financial strength. Fitch -- Rates insurance companies for their claims-paying ability. Moody's -- Rates insurance companies for their financial strength. Standard & Poor's -- Rates insurance companies for their financial strength. REVENUES RECEIVED DURING CALENDAR YEAR 2008 The following table shows the unaffiliated funds ranked according to highest to lowest total dollar amounts the funds and their affiliates paid to us and/or our affiliates in 2008. Some of these funds may not be available under your contract or policy. Please see your contract or policy prospectus regarding the investment options available to you.
-------------------------------------------------------------------------------------------- Fidelity(R) Variable Insurance Products $18,743,014.48 Oppenheimer Variable Account Funds $13,820,820.88 Wanger Advisors Trust $ 9,370,146.79 AllianceBernstein Variable Products Series Fund, Inc. $ 8,424,214.29 Columbia Funds Variable Insurance Trust $ 7,430,450.61 Janus Aspen Series $ 7,122,557.57 Franklin(R) Templeton(R) Variable Insurance Products Trust $ 6,643,663.84 AIM Variable Insurance Funds $ 6,432,082.42 PIMCO Variable Insurance Trust $ 5,883,317.87 American Century(R) Variable Portfolios, Inc. $ 5,286,558.50 Goldman Sachs Variable Insurance Trust $ 4,677,953.25 Van Kampen Life Investment Trust $ 3,925,882.57 MFS(R) Variable Insurance Trust(SM) $ 3,573,209.10 Eaton Vance Variable Trust $ 2,684,626.00 Wells Fargo Advantage Variable Trust Funds $ 1,708,848.85 Putnam Variable Trust $ 1,652,989.18 The Universal Institutional Funds, Inc. $ 1,516,077.16 Neuberger Berman Advisers Management Trust $ 1,235,681.82 Evergreen Variable Annuity Trust $ 1,141,265.89 Credit Suisse Trust $ 949,442.19 Lazard Retirement Series, Inc. $ 793,689.26 Third Avenue Variable Series Trust $ 552,278.88 Royce Capital Fund $ 469,495.42 Pioneer Variable Contracts Trust $ 280,236.22 Calvert Variable Series, Inc. $ 149,893.29 Dreyfus Investment Portfolios/Dreyfus Variable Investment Fund $ 140,009.65 STI Classic Variable Trust $ 42,907.96 Legg Mason Partners Variable Portfolios $ 20,806.64 Premier VIT $ 5,570.02 Lincoln Variable Insurance Products Trust $ 3,477.16 J.P. Morgan Series Trust II $ 1,772.33 --------------------------------------------------------------------------------------------
If the revenue received from affiliated funds were included in the table above, payment to us or our affiliates by the RiverSource Variable Series Trust Funds (RVST) or their affiliates would be at the top of the list. 4 RIVERSOURCE VARIABLE ACCOUNT 10 PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as principal underwriter for the contracts, which are offered on a continuous basis. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is registered with the Securities and Exchange Commission under the Securities Act of 1934 as a broker dealer and is a member of the Financial Industry Regulartory Authority (FINRA). The contracts are offered to the public through certain securities broker- dealers that have entered into sales agreements with us and RiverSource Distributors and whose personnel are legally authorized to sell annuity and life insurance products. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial. Prior to Jan. 1, 2007, IDS Life Insurance Company (IDS Life) served as the principal underwriter for the contracts. The aggregate dollar amount of underwriting commissions paid to IDS Life for the variable account in 2006 was $290,026,122. IDS Life retained no underwriting commission from the sale of the contracts. Effective Jan. 1, 2007, RiverSource Distributors became the principal underwriter for the contracts. The aggregate dollar amount of underwriting commissions paid to RiverSource Distributors for the variable account in 2008 was $383,542,107; and in 2007 was $322,665,705. RiverSource Distributors retained no underwriting commissions from the sale of the contracts. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP, independent registered public accounting firm, has audited the consolidated financial statements of RiverSource Life Insurance Company at Dec. 31, 2008 and 2007, and for each of the three years in the period ended Dec. 31, 2008, and the individual financial statements of the segregated asset subaccounts of RiverSource Variable Account 10, sponsored by RiverSource Life Insurance Company, at Dec. 31, 2008, and for each of the periods indicated therein, as set forth in their reports thereon appearing elsewhere herein. We've included our financial statements in the Statement of Additional Information in reliance upon such reports given on the authority of Ernst & Young LLP as experts in accounting and auditing. RIVERSOURCE VARIABLE ACCOUNT 10 5 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying individual statements of assets and liabilities of the segregated asset subaccounts of RiverSource Variable Account 10 (the Account) sponsored by RiverSource Life Insurance Company, referred to in Note 1, as of December 31, 2008, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements. These financial statements are the responsibility of the management of RiverSource Life Insurance Company. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform audits of the Account's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008 by correspondence with the affiliated and unaffiliated mutual fund managers. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the individual financial position of the segregated asset subaccounts of RiverSource Variable Account 10, referred to in Note 1, at December 31, 2008, and the individual results of their operations and the changes in their net assets for the periods described above, in conformity with U.S. generally accepted accounting principles. (-s- ERNST & YOUNG LLP) Minneapolis, Minnesota April 24, 2009 6 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, DEC. 31, 2008 SER I SER II SER I SER II SER I ASSETS Investments, at fair value(1),(2) $26,745,483 $ 99,171,829 $18,148,222 $29,143,339 $136,521,974 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 5,265 74,529 9,517 32,246 -- Receivable for share redemptions 22,185 95,455 14,068 24,302 250,461 ----------------------------------------------------------------------------------------------------------------------- Total assets 26,772,933 99,341,813 18,171,807 29,199,887 136,772,435 ----------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 20,527 77,110 14,068 23,244 156,485 Contract terminations 1,658 18,345 -- 1,057 93,976 Payable for investments purchased 5,265 74,529 9,517 32,246 -- ----------------------------------------------------------------------------------------------------------------------- Total liabilities 27,450 169,984 23,585 56,547 250,461 ----------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 26,649,668 99,151,074 18,143,697 29,128,242 134,893,641 Net assets applicable to contracts in payment period 95,815 20,755 4,525 15,098 1,628,333 Net assets applicable to seed money -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- Total net assets $26,745,483 $ 99,171,829 $18,148,222 $29,143,340 $136,521,974 ----------------------------------------------------------------------------------------------------------------------- (1) Investment shares 1,583,510 5,970,610 2,288,553 3,765,289 6,912,505 (2) Investments, at cost $48,988,198 $131,985,776 $28,284,256 $50,242,130 $147,354,464 -----------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, DEC. 31, 2008 (CONTINUED) SER I SER I SER II CARE, SER II SER II ASSETS Investments, at fair value(1),(2) $5,631,511 $10,755,490 $3,130,618 $17,563,978 $461,509,291 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 2,134 15,250 12,474 43,428 427,174 Receivable for share redemptions 9,690 32,086 2,812 17,979 397,402 ----------------------------------------------------------------------------------------------------------------------- Total assets 5,643,335 10,802,826 3,145,904 17,625,385 462,333,867 ----------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 4,315 8,310 2,812 14,161 381,672 Contract terminations 5,374 23,776 -- 3,818 15,730 Payable for investments purchased 2,134 15,250 12,474 43,428 427,174 ----------------------------------------------------------------------------------------------------------------------- Total liabilities 11,823 47,336 15,286 61,407 824,576 ----------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 5,620,115 10,754,124 3,103,096 17,563,726 461,486,783 Net assets applicable to contracts in payment period 11,397 1,366 27,522 252 22,508 Net assets applicable to seed money -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- Total net assets $5,631,512 $10,755,490 $3,130,618 $17,563,978 $461,509,291 ----------------------------------------------------------------------------------------------------------------------- (1) Investment shares 563,715 2,610,556 767,308 1,432,625 23,999,443 (2) Investments, at cost $6,538,618 $26,625,574 $7,282,712 $26,285,865 $677,993,743 -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 7 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, DEC. 31, 2008 (CONTINUED) SER I CL B CL B CL B CL B ASSETS Investments, at fair value(1),(2) $15,360,075 $ 7,758,324 $131,669,325 $ 803,094,964 $1,943,453 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 1,346 3,811 29,841 772,056 2,149 Receivable for share redemptions 14,908 21,859 186,043 691,137 1,727 ------------------------------------------------------------------------------------------------------------------------- Total assets 15,376,329 7,783,994 131,885,209 804,558,157 1,947,329 ------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 11,795 6,350 103,779 655,695 1,726 Contract terminations 3,113 15,509 82,264 35,442 -- Payable for investments purchased 1,346 3,811 29,841 772,056 2,149 ------------------------------------------------------------------------------------------------------------------------- Total liabilities 16,254 25,670 215,884 1,463,193 3,875 ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 15,360,075 7,758,324 131,510,400 802,562,274 1,943,454 Net assets applicable to contracts in payment period -- -- 158,925 532,690 -- Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets $15,360,075 $ 7,758,324 $131,669,325 $ 803,094,964 $1,943,454 ------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 1,832,945 727,116 10,151,837 73,476,209 107,790 (2) Investments, at cost $21,705,445 $12,465,817 $216,197,879 $1,348,774,129 $2,873,217 -------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, DEC. 31, 2008 (CONTINUED) CL I CL II CL II CL II CL I ASSETS Investments, at fair value(1),(2) $28,082,917 $56,141,876 $187,536,301 $21,628,588 $185,351,384 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 27,965 197,420 26,306 -- Receivable for share redemptions 41,735 54,939 158,199 17,752 255,130 ----------------------------------------------------------------------------------------------------------------------- Total assets 28,124,652 56,224,780 187,891,920 21,672,646 185,606,514 ----------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 21,876 43,880 156,463 17,338 185,523 Contract terminations 19,860 11,059 1,736 413 69,607 Payable for investments purchased -- 27,965 197,420 26,306 -- ----------------------------------------------------------------------------------------------------------------------- Total liabilities 41,736 82,904 355,619 44,057 255,130 ----------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 28,054,821 56,045,966 187,482,827 21,628,589 183,924,387 Net assets applicable to contracts in payment period 28,095 95,910 53,474 -- 1,426,997 Net assets applicable to seed money -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- Total net assets $28,082,916 $56,141,876 $187,536,301 $21,628,589 $185,351,384 ----------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,727,764 9,467,433 19,195,118 3,610,783 39,604,996 (2) Investments, at cost $42,066,247 $69,076,772 $254,908,821 $35,481,009 $272,776,455 -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 8 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AC VP CALVERT COL COL COL VAL, VS SOCIAL HI YIELD, MARSICO GRO, MARSICO INTL DEC. 31, 2008 (CONTINUED) CL II BAL VS CL B VS CL A OPP, VS CL B ASSETS Investments, at fair value(1),(2) $195,490,501 $26,299,083 $66,584,203 $ 963,953,201 $ 69,405,072 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 143,237 783 35,658 827,327 89,540 Receivable for share redemptions 209,971 50,893 90,851 819,416 120,994 ------------------------------------------------------------------------------------------------------------------------- Total assets 195,843,709 26,350,759 66,710,712 965,599,944 69,615,606 ------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 156,186 20,426 54,406 796,738 56,531 Contract terminations 53,785 30,467 36,446 22,678 64,465 Payable for investments purchased 143,237 783 35,658 827,327 89,540 ------------------------------------------------------------------------------------------------------------------------- Total liabilities 353,208 51,676 126,510 1,646,743 210,536 ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 195,075,932 26,229,269 66,521,345 963,644,626 69,179,267 Net assets applicable to contracts in payment period 414,569 69,814 62,857 308,575 225,803 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets $195,490,501 $26,299,083 $66,584,202 $ 963,953,201 $ 69,405,070 ------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 41,771,475 21,072,983 8,830,796 71,669,383 6,641,634 (2) Investments, at cost $304,112,211 $37,867,415 $96,317,911 $1,353,400,774 $134,571,235 -------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY U.S. EQ U.S. EQ INTL EQ, INTL VAL, DEC. 31, 2008 (CONTINUED) RETURN FLEX III FLEX I SERV SERV ASSETS Investments, at fair value(1),(2) $58,690,964 $10,124,762 $54,325,712 $6,228,703 $2,468,080 Dividends receivable 186,159 -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 59,763 -- -- 2,960 40,554 Receivable for share redemptions 69,124 19,659 120,134 6,215 3,524 --------------------------------------------------------------------------------------------------------------------------- Total assets 59,006,010 10,144,421 54,445,846 6,237,878 2,512,158 --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 47,469 7,864 62,370 5,744 2,213 Contract terminations 21,655 11,796 57,765 471 1,311 Payable for investments purchased 245,922 -- -- 2,960 40,554 --------------------------------------------------------------------------------------------------------------------------- Total liabilities 315,046 19,660 120,135 9,175 44,078 --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 58,666,591 10,120,493 53,902,500 6,228,703 2,467,824 Net assets applicable to contracts in payment period 24,373 4,268 423,211 -- 256 Net assets applicable to seed money -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total net assets $58,690,964 $10,124,761 $54,325,711 $6,228,703 $2,468,080 --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 8,254,707 1,093,387 5,373,463 489,678 281,423 (2) Investments, at cost $95,601,785 $14,421,256 $85,525,251 $9,581,561 $4,330,251 ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 9 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING- FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, DEC. 31, 2008 (CONTINUED) RATE INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ASSETS Investments, at fair value(1),(2) $434,438,748 $21,027,833 $36,329,912 $1,023,889,929 $ 84,336,657 Dividends receivable 2,816,152 -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 424,526 25,633 13,928 811,326 1,442 Receivable for share redemptions 383,513 18,004 38,056 883,552 65,363 ------------------------------------------------------------------------------------------------------------------------- Total assets 438,062,939 21,071,470 36,381,896 1,025,584,807 84,403,462 ------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 364,575 16,920 29,874 842,463 65,363 Contract terminations 18,938 1,084 8,181 41,088 -- Payable for investments purchased 3,240,678 25,633 13,928 811,326 1,442 ------------------------------------------------------------------------------------------------------------------------- Total liabilities 3,624,191 43,637 51,983 1,694,877 66,805 ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 434,209,508 20,985,389 36,320,924 1,023,232,542 84,160,307 Net assets applicable to contracts in payment period 229,240 42,444 8,989 657,388 176,350 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------- Total net assets $434,438,748 $21,027,833 $36,329,913 $1,023,889,930 $ 84,336,657 ------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 66,024,126 1,658,346 3,804,179 67,628,133 9,660,556 (2) Investments, at cost $628,318,046 $27,960,296 $55,189,279 $1,822,577,072 $136,926,387 -------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, DEC. 31, 2008 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ASSETS Investments, at fair value(1),(2) $169,597,317 $185,297,807 $ 965,638,469 $43,460,834 $125,025,950 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 175,975 21,922 410,206 331 61,369 Receivable for share redemptions 172,001 152,913 821,952 42,372 137,090 -------------------------------------------------------------------------------------------------------------------------- Total assets 169,945,293 185,472,642 966,870,627 43,503,537 125,224,409 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 132,357 142,869 784,626 33,604 99,265 Contract terminations 39,644 10,044 37,329 8,768 37,824 Payable for investments purchased 175,975 21,922 410,206 331 61,369 -------------------------------------------------------------------------------------------------------------------------- Total liabilities 347,976 174,835 1,232,161 42,703 198,458 -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 169,202,734 184,492,569 964,948,568 43,246,201 124,786,850 Net assets applicable to contracts in payment period 394,583 805,238 689,898 214,633 239,101 Net assets applicable to seed money -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total net assets $169,597,317 $185,297,807 $ 965,638,466 $43,460,834 $125,025,951 -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 19,606,626 10,108,991 53,291,306 3,585,877 10,358,405 (2) Investments, at cost $249,121,807 $232,334,914 $1,455,427,159 $66,114,745 $179,114,824 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 10 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR DEC. 31, 2008 (CONTINUED) REAL EST, CL 2 VAL, CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ASSETS Investments, at fair value(1),(2) $177,416,088 $173,195,221 $169,266,746 $63,394,572 $20,826,446 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 243,232 74,065 9,231 -- 8,235 Receivable for share redemptions 139,583 146,440 325,694 137,793 26,990 ------------------------------------------------------------------------------------------------------------------------ Total assets 177,798,903 173,415,726 169,601,671 63,532,365 20,861,671 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 139,542 137,227 139,737 72,296 16,134 Contract terminations 42 9,213 185,956 65,497 10,856 Payable for investments purchased 243,232 74,065 9,231 -- 8,235 ------------------------------------------------------------------------------------------------------------------------ Total liabilities 382,816 220,505 334,924 137,793 35,225 ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 177,090,339 172,988,810 169,032,580 63,124,648 20,742,509 Net assets applicable to contracts in payment period 325,748 206,411 234,167 269,924 83,937 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total net assets $177,416,087 $173,195,221 $169,266,747 $63,394,572 $20,826,446 ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 16,721,592 16,416,609 14,368,994 10,375,544 1,935,543 (2) Investments, at cost $377,781,612 $229,934,536 $249,120,638 $92,279,816 $26,000,726 ------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM CAP STRUCTD U.S. GLOBAL OVERSEAS, DEC. 31, 2008 (CONTINUED) VAL, INST EQ, INST EQ, INST TECH, SERV SERV ASSETS Investments, at fair value(1),(2) $312,183,554 $10,222,980 $182,460,353 $11,997,932 $103,230,964 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 49,465 5,000 14,227 11,614 12,878 Receivable for share redemptions 292,589 21,505 204,163 10,425 79,653 ----------------------------------------------------------------------------------------------------------------------- Total assets 312,525,608 10,249,485 182,678,743 12,019,971 103,323,495 ----------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 244,394 8,008 143,235 9,191 79,653 Contract terminations 48,195 13,497 60,928 1,234 -- Payable for investments purchased 49,465 5,000 14,227 11,614 12,878 ----------------------------------------------------------------------------------------------------------------------- Total liabilities 342,054 26,505 218,390 22,039 92,531 ----------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 311,861,891 10,196,137 182,237,743 11,946,805 102,987,330 Net assets applicable to contracts in payment period 321,663 26,843 222,610 51,127 243,634 Net assets applicable to seed money -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- Total net assets $312,183,554 $10,222,980 $182,460,353 $11,997,932 $103,230,964 ----------------------------------------------------------------------------------------------------------------------- (1) Investment shares 36,048,909 1,464,610 22,836,089 4,137,218 3,968,895 (2) Investments, at cost $510,911,058 $16,620,795 $278,356,370 $23,064,886 $141,033,786 -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 11 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ JANUS ASPEN JANUS ASPEN LAZARD LM PTNRS VAR MFS INV JANUS, ENTERPRISE, RETIRE INTL SM CAP GRO, GRO STOCK, DEC. 31, 2008 (CONTINUED) SERV SERV EQ, SERV CL I SERV CL ASSETS Investments, at fair value(1),(2) $ 773,445,435 $15,504,262 $ 80,288,776 $4,097,832 $60,177,703 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 748,776 271 16,295 7,113 31,199 Receivable for share redemptions 643,608 20,293 101,459 18,116 68,210 ------------------------------------------------------------------------------------------------------------------------ Total assets 774,837,819 15,524,826 80,406,530 4,123,061 60,277,112 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 641,147 11,735 62,237 3,376 47,093 Contract terminations 2,462 8,558 39,222 14,741 21,117 Payable for investments purchased 748,776 271 16,295 7,113 31,199 ------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,392,385 20,564 117,754 25,230 99,409 ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 773,435,711 15,496,007 80,061,610 4,097,831 60,115,606 Net assets applicable to contracts in payment period 9,723 8,255 227,166 -- 62,097 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total net assets $ 773,445,434 $15,504,262 $ 80,288,776 $4,097,831 $60,177,703 ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 49,643,481 748,998 9,755,623 473,738 8,658,662 (2) Investments, at cost $1,151,893,812 $26,901,290 $106,896,054 $6,582,842 $85,616,233 ------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, DEC. 31, 2008 (CONTINUED) SERV CL SERV CL SERV CL CL S CL S ASSETS Investments, at fair value(1),(2) $36,302,724 $ 76,071,553 $212,724,143 $218,421,584 $1,593,838 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 23,697 1,560 15,753 187,161 921 Receivable for share redemptions 37,586 226,851 311,149 180,403 1,576 ------------------------------------------------------------------------------------------------------------------------ Total assets 36,364,007 76,299,964 213,051,045 218,789,148 1,596,335 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 28,317 63,724 170,575 180,028 1,481 Contract terminations 9,269 163,127 140,575 375 96 Payable for investments purchased 23,697 1,560 15,753 187,161 921 ------------------------------------------------------------------------------------------------------------------------ Total liabilities 61,283 228,411 326,903 367,564 2,498 ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 36,267,129 75,938,167 212,378,208 218,409,714 1,593,837 Net assets applicable to contracts in payment period 35,595 133,386 345,934 11,870 -- Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total net assets $36,302,724 $ 76,071,553 $212,724,142 $218,421,584 $1,593,837 ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 4,532,175 4,991,572 11,811,446 29,961,808 169,377 (2) Investments, at cost $63,147,269 $101,432,236 $294,484,726 $339,715,580 $2,613,408 ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 12 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- OPPEN OPPEN OPPEN OPPEN PIMCO GLOBAL SEC MAIN ST SM CAP STRATEGIC BOND VAL VA, VIT ALL ASSET, DEC. 31, 2008 (CONTINUED) VA, SERV VA, SERV VA, SERV SERV ADVISOR CL ASSETS Investments, at fair value(1),(2) $ 84,226,825 $61,768,053 $2,075,960,186 $2,737,178 $1,032,082,114 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 47,011 57,909 582,102 768 721,484 Receivable for share redemptions 100,477 64,980 2,649,659 8,003 887,679 -------------------------------------------------------------------------------------------------------------------------- Total assets 84,374,313 61,890,942 2,079,191,947 2,745,949 1,033,691,277 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 68,235 50,691 1,719,360 2,606 856,225 Contract terminations 32,242 14,289 930,298 5,397 31,454 Payable for investments purchased 47,011 57,909 582,102 768 721,484 -------------------------------------------------------------------------------------------------------------------------- Total liabilities 147,488 122,889 3,231,760 8,771 1,609,163 -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 84,075,234 61,697,479 2,073,912,578 2,737,178 1,031,586,369 Net assets applicable to contracts in payment period 151,591 70,574 2,047,609 -- 495,745 Net assets applicable to seed money -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total net assets $ 84,226,825 $61,768,053 $2,075,960,187 $2,737,178 $1,032,082,114 -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,207,134 5,860,347 455,254,427 403,119 111,818,214 (2) Investments, at cost $131,291,716 $98,912,484 $2,421,938,773 $4,763,382 $1,280,815,020 --------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, GLOBAL HLTH INTL EQ, INTL NEW DEC. 31, 2008 (CONTINUED) CL II CL II CARE, CL IB CL IB OPP, CL IB ASSETS Investments, at fair value(1),(2) $31,890,625 $2,908,909 $25,091,628 $37,136,955 $37,701,337 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 518 -- 36,723 9,271 Receivable for share redemptions 107,431 3,055 23,120 29,017 45,967 ----------------------------------------------------------------------------------------------------------------------------- Total assets 31,998,056 2,912,482 25,114,748 37,202,695 37,756,575 ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 25,074 2,201 19,467 29,017 28,842 Contract terminations 82,358 854 3,654 -- 17,125 Payable for investments purchased -- 518 -- 36,723 9,271 ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 107,432 3,573 23,121 65,740 55,238 ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 31,782,423 2,908,863 25,056,161 37,106,534 37,675,251 Net assets applicable to contracts in payment period 108,201 -- 35,466 30,421 26,086 Net assets applicable to seed money -- 46 -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Total net assets $31,890,624 $2,908,909 $25,091,627 $37,136,955 $37,701,337 ----------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 2,089,818 298,350 2,276,917 4,177,385 3,244,521 (2) Investments, at cost $40,004,740 $4,925,549 $26,941,688 $56,532,444 $55,794,652 -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 13 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ PUT VT PUT VT ROYCE DISC DISC NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, ASSET ALLOC, DEC. 31, 2008 (CONTINUED) CL IA CL IB INVEST CL AGGR CONSERV ASSETS Investments, at fair value(1),(2) $ 68,211,033 $27,627,506 $47,372,729 $ 8,346,189 $21,366,965 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 785 -- 20,930 12,680 Receivable for share redemptions 149,630 33,199 74,853 -- -- ----------------------------------------------------------------------------------------------------------------------------- Total assets 68,360,663 27,661,490 47,447,582 8,367,119 21,379,645 ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 78,162 21,258 36,770 5,934 16,943 Contract terminations 71,468 11,942 38,083 20,380 4,901 Payable for investments purchased -- 785 -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 149,630 33,985 74,853 26,314 21,844 ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 67,716,325 27,540,561 47,240,505 8,336,913 21,357,801 Net assets applicable to contracts in payment period 494,708 86,944 132,224 3,840 -- Net assets applicable to seed money -- -- -- 52 -- ----------------------------------------------------------------------------------------------------------------------------- Total net assets $ 68,211,033 $27,627,505 $47,372,729 $ 8,340,805 $21,357,801 ----------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 5,171,420 3,324,610 7,856,174 1,180,427 2,535,974 (2) Investments, at cost $118,117,601 $59,173,472 $69,292,081 $10,007,609 $22,758,651 -----------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- DISC DISC DISC RVS PTNRS RVS PTNRS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, VP FUNDAMENTAL VP SELECT DEC. 31, 2008 (CONTINUED) MOD MOD AGGR MOD CONSERV VAL VAL ASSETS Investments, at fair value(1),(2) $37,647,085 $24,391,452 $20,064,830 $634,767,322 $11,178,229 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 155,610 88,811 28,772 619,130 337 Receivable for share redemptions -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total assets 37,802,695 24,480,263 20,093,602 635,386,452 11,178,566 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 27,923 18,535 15,532 524,619 8,832 Contract terminations 713 1,195 500 1,221 8,383 Payable for investments purchased -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total liabilities 28,636 19,730 16,032 525,840 17,215 ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 37,461,303 24,297,799 20,064,617 634,795,333 11,154,537 Net assets applicable to contracts in payment period 312,756 162,734 12,953 65,279 6,814 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total net assets $37,774,059 $24,460,533 $20,077,570 $634,860,612 $11,161,351 ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 4,961,651 3,322,867 2,523,293 93,063,024 1,664,695 (2) Investments, at cost $44,033,483 $29,820,097 $22,767,069 $925,644,204 $18,097,908 ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 14 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------- RVS RVS RVS RVS RVS PTNRS VP VP VP VP VP DEC. 31, 2008 (CONTINUED) SM CAP VAL BAL CASH MGMT DIV BOND DIV EQ INC ASSETS Investments, at fair value(1),(2) $ 751,664,928 $194,716,435 $1,298,705,820 $3,297,506,575 $1,885,420,526 Dividends receivable -- -- 22,162,310 -- -- Accounts receivable from RiverSource Life for contract purchase payments 550,880 1,317 38,077 1,723,733 963,589 Receivable for share redemptions -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Total assets 752,215,808 194,717,752 1,320,906,207 3,299,230,308 1,886,384,115 ------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 613,137 182,630 1,103,517 2,764,773 1,524,442 Contract terminations 19,133 189,824 4,654,595 924,371 51,353 Payable for investments purchased -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Total liabilities 632,270 372,454 5,758,112 3,689,144 1,575,795 ------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 751,278,870 190,751,209 1,314,898,362 3,291,449,974 1,882,675,565 Net assets applicable to contracts in payment period 304,668 3,594,089 249,733 4,091,190 2,132,755 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Total net assets $ 751,583,538 $194,345,298 $1,315,148,095 $3,295,541,164 $1,884,808,320 ------------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 83,690,660 19,681,468 1,299,910,047 336,537,795 213,181,404 (2) Investments, at cost $1,097,321,013 $312,047,547 $1,299,250,117 $3,497,911,663 $2,827,857,817 ------------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ RVS VP RVS VP SEL RVS RVS GLOBAL GLOBAL INFLATION VP VP HI YIELD VP INC DEC. 31, 2008 (CONTINUED) BOND PROT SEC GRO BOND OPP ASSETS Investments, at fair value(1),(2) $1,221,039,401 $727,946,389 $141,281,030 $382,936,756 $575,949,941 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 446,799 340,024 18,037 73,445 469,944 Receivable for share redemptions -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total assets 1,221,486,200 728,286,413 141,299,067 383,010,201 576,419,885 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 1,023,039 603,138 110,116 320,973 476,709 Contract terminations 791,385 259,873 86,995 290,074 5,679 Payable for investments purchased -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,814,424 863,011 197,111 611,047 482,388 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 1,218,910,124 727,380,289 140,682,109 380,545,067 575,880,636 Net assets applicable to contracts in payment period 761,652 43,113 419,847 1,854,087 56,861 Net assets applicable to seed money -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total net assets $1,219,671,776 $727,423,402 $141,101,956 $382,399,154 $575,937,497 ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 116,234,735 72,383,787 33,249,230 79,193,408 72,097,496 (2) Investments, at cost $1,270,886,645 $731,153,695 $251,398,560 $537,303,768 $715,661,736 ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 15 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- RVS SEL VP RVS VP RVS VP RVS VP LG CAP MID CAP MID CAP VP DEC. 31, 2008 (CONTINUED) DYN EQ VAL GRO VAL S&P 500 ASSETS Investments, at fair value(1),(2) $448,659,993 $ 8,950,021 $ 78,749,181 $227,281,189 $133,840,217 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 3,140 1,760 31,865 192,069 4,108 Receivable for share redemptions -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total assets 448,663,133 8,951,781 78,781,046 227,473,258 133,844,325 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 401,210 7,059 70,089 185,269 105,005 Contract terminations 281,104 12,619 55,829 6,370 58,877 Payable for investments purchased -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total liabilities 682,314 19,678 125,918 191,639 163,882 ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 443,508,116 8,921,525 78,159,135 227,230,646 133,053,144 Net assets applicable to contracts in payment period 4,472,703 10,578 495,993 50,973 627,299 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total net assets $447,980,819 $ 8,932,103 $ 78,655,128 $227,281,619 $133,680,443 ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 33,828,664 1,357,765 11,183,500 35,839,426 22,465,906 (2) Investments, at cost $769,998,752 $14,717,161 $127,376,024 $418,678,459 $175,542,306 ------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------- RVS VP SEL VP THDL THDL THIRD SHORT SM CAP VP VP AVE DEC. 31, 2008 (CONTINUED) DURATION VAL EMER MKTS INTL OPP VAL ASSETS Investments, at fair value(1),(2) $372,552,187 $51,488,339 $518,662,947 $156,946,054 $55,710,196 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 86,408 17,714 436,378 22,434 37 Receivable for share redemptions -- -- -- -- 77,659 ------------------------------------------------------------------------------------------------------------------------ Total assets 372,638,595 51,506,053 519,099,325 156,968,488 55,787,892 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 299,112 39,996 421,225 147,698 43,243 Contract terminations 400,216 24,671 50,057 235,525 34,415 Payable for investments purchased -- -- -- -- 37 ------------------------------------------------------------------------------------------------------------------------ Total liabilities 699,328 64,667 471,282 383,223 77,695 ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 371,249,779 51,329,546 518,561,724 155,822,543 55,495,090 Net assets applicable to contracts in payment period 689,488 111,840 66,319 762,722 215,107 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total net assets $371,939,267 $51,441,386 $518,628,043 $156,585,265 $55,710,197 ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 37,444,316 7,930,306 59,200,412 18,298,749 4,638,651 (2) Investments, at cost $385,219,860 $93,493,613 $825,646,460 $200,602,158 $84,438,383 ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 16 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP WANGER WANGER DEC. 31, 2008 (CONTINUED) CL II EST, CL II GRO, CL II INTL USA ASSETS Investments, at fair value(1),(2) $ 681,107,246 $241,003,832 $29,119,527 $546,083,554 $550,275,601 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 463,036 238,484 30,201 379,059 485,862 Receivable for share redemptions 561,147 199,622 30,919 489,377 458,963 -------------------------------------------------------------------------------------------------------------------------- Total assets 682,131,429 241,441,938 29,180,647 546,951,990 551,220,426 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 558,841 199,622 23,959 438,737 443,826 Contract terminations 2,307 -- 6,960 50,639 15,136 Payable for investments purchased 463,036 238,484 30,201 379,059 485,862 -------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,024,184 438,106 61,120 868,435 944,824 -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 681,016,447 240,924,959 29,112,443 545,761,627 549,846,392 Net assets applicable to contracts in payment period 90,798 78,873 7,084 321,928 429,210 Net assets applicable to seed money -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total net assets $ 681,107,245 $241,003,832 $29,119,527 $546,083,555 $550,275,602 -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 82,859,762 44,139,896 5,046,712 26,393,599 28,511,689 (2) Investments, at cost $1,068,795,333 $404,297,450 $60,033,803 $777,563,660 $823,961,333 --------------------------------------------------------------------------------------------------------------------------
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------- WF ADV WF ADV WF ADV WF ADV VT ASSET VT INTL VT VT DEC. 31, 2008 (CONTINUED) ALLOC CORE OPP SM CAP GRO ASSETS Investments, at fair value(1),(2) $47,942,529 $ 7,813,761 $38,279,148 $50,668,365 Dividends receivable -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- -- 98,511 47,134 Receivable for share redemptions 149,568 6,292 41,500 47,061 --------------------------------------------------------------------------------------------------------------- Total assets 48,092,097 7,820,053 38,419,159 50,762,560 --------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 37,862 6,048 30,147 40,473 Contract terminations 111,706 243 11,353 6,588 Payable for investments purchased -- -- 98,511 47,134 --------------------------------------------------------------------------------------------------------------- Total liabilities 149,568 6,291 140,011 94,195 --------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 47,759,095 7,791,624 38,266,176 50,656,905 Net assets applicable to contracts in payment period 183,434 22,138 12,972 11,460 Net assets applicable to seed money -- -- -- -- --------------------------------------------------------------------------------------------------------------- Total net assets $47,942,529 $ 7,813,762 $38,279,148 $50,668,365 --------------------------------------------------------------------------------------------------------------- (1) Investment shares 5,149,573 1,694,959 3,767,633 12,179,896 (2) Investments, at cost $64,071,508 $12,930,349 $69,564,242 $95,357,465 ---------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 17 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2008 SER I SER II SER I SER II SER I INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ -- $ 3,962,159 Variable account expenses 379,095 1,292,973 280,713 459,754 2,587,139 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (379,095) (1,292,973) (280,713) (459,754) 1,375,020 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET --------------------------------------------------------------------------------------------------------------------------- Realized gain (loss) on sales of investments: Proceeds from sales 15,456,109 39,702,286 12,003,347 19,308,861 70,086,736 Cost of investments sold 20,618,513 38,511,200 10,867,325 19,652,488 57,495,971 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (5,162,404) 1,191,086 1,136,022 (343,627) 12,590,765 Distributions from capital gains -- -- 3,674,733 5,996,103 -- Net change in unrealized appreciation or depreciation of investments (18,379,803) (79,900,125) (23,806,007) (36,080,606) (83,608,169) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (23,542,207) (78,709,039) (18,995,252) (30,428,130) (71,017,404) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(23,921,302) $(80,002,012) $(19,275,965) $(30,887,884) $(69,642,384) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, YEAR ENDED DEC. 31 2008 (CONTINUED) SER I SER I SER II CARE, SER II SER II INVESTMENT INCOME Dividend income $ -- $ 499,975 $ 136,881 $ -- $ 2,946,101 Variable account expenses 87,674 138,382 37,125 175,425 3,786,551 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (87,674) 361,593 99,756 (175,425) (840,450) --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 3,818,758 3,808,162 1,341,156 5,379,670 12,018,829 Cost of investments sold 2,942,865 5,816,714 2,069,933 5,701,811 13,873,401 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 875,893 (2,008,552) (728,777) (322,141) (1,854,572) Distributions from capital gains -- 1,440,571 413,432 4,617,654 8,565,475 Net change in unrealized appreciation or depreciation of investments (7,062,572) (13,737,719) (3,205,095) (10,809,499) (215,133,394) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (6,186,679) (14,305,700) (3,520,440) (6,513,986) (208,422,491) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(6,274,353) $(13,944,107) $(3,420,684) $ (6,689,411) $(209,262,941) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, YEAR ENDED DEC. 31, 2008 (CONTINUED) SER I CL B CL B CL B CL B INVESTMENT INCOME Dividend income $ -- $ -- $ 3,986,792 $ 10,029,572 $ -- Variable account expenses 201,490 103,794 1,844,358 10,116,276 27,143 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (201,490) (103,794) 2,142,434 (86,704) (27,143) --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 6,507,342 4,117,622 73,396,107 188,790,746 1,054,355 Cost of investments sold 6,414,823 4,863,960 86,351,965 187,257,866 1,253,984 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 92,519 (746,338) (12,955,858) 1,532,880 (199,629) Distributions from capital gains -- -- 41,135,459 71,754,420 -- Net change in unrealized appreciation or depreciation of investments (12,981,479) (6,462,418) (140,323,608) (841,823,790) (1,172,785) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (12,888,960) (7,208,756) (112,144,007) (768,536,490) (1,372,414) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(13,090,450) $(7,312,550) $(110,001,573) $(768,623,194) $(1,399,557) ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 18 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, YEAR ENDED DEC. 31, 2008 (CONTINUED) CL I CL II CL II CL II CL I INVESTMENT INCOME Dividend income $ 432,295 $ 672,762 $ 183,428 $ -- $ 7,428,049 Variable account expenses 422,795 835,182 2,283,266 280,276 3,025,163 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 9,500 (162,420) (2,099,838) (280,276) 4,402,886 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 14,089,236 28,401,163 126,022,271 9,205,016 124,200,056 Cost of investments sold 14,892,567 24,141,893 149,944,373 11,274,456 143,855,412 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (803,331) 4,259,270 (23,922,102) (2,069,440) (19,655,356) Distributions from capital gains 5,077,940 9,919,707 -- 5,337,337 39,435,505 Net change in unrealized appreciation or depreciation of investments (31,526,012) (67,694,556) (38,592,255) (19,189,161) (108,993,245) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (27,251,403) (53,515,579) (62,514,357) (15,921,264) (89,213,096) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(27,241,903) $(53,677,999) $ (64,614,195) $(16,201,540) $ (84,810,210) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- AC VP CALVERT COL COL COL VAL, VS SOCIAL HI YIELD, MARSICO GRO, MARSICO INTL YEAR ENDED DEC. 31, 2008 (CONTINUED) CL II BAL VS CL B VS CL A OPP, VS CL B INVESTMENT INCOME Dividend income $ 6,875,437 $ 879,821 $ 9,763,438 $ 3,517,711 $ 1,440,954 Variable account expenses 2,445,145 337,420 846,331 9,335,751 939,480 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 4,430,292 542,401 8,917,107 (5,818,040) 501,474 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 107,303,468 11,285,801 32,058,806 10,314,169 17,069,613 Cost of investments sold 132,855,765 12,270,201 36,039,528 12,233,355 25,671,337 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (25,552,297) (984,400) (3,980,722) (1,919,186) (8,601,724) Distributions from capital gains 39,005,503 491,524 -- -- 21,995,840 Net change in unrealized appreciation or depreciation of investments (102,934,758) (13,786,091) (29,451,187) (506,718,119) (81,729,339) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (89,481,552) (14,278,967) (33,431,909) (508,637,305) (68,335,223) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ (85,051,260) $(13,736,566) $(24,514,802) $(514,455,345) $(67,833,749) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY U.S. EQ U.S. EQ INTL EQ, INTL VAL, YEAR ENDED DEC. 31, 2008 (CONTINUED) RETURN FLEX III FLEX I SERV SERV INVESTMENT INCOME Dividend income $ 1,131,790 $ -- $ 66,372 $ 95,321 $ 71,101 Variable account expenses 752,648 138,633 1,083,980 74,628 33,159 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 379,142 (138,633) (1,017,608) 20,693 37,942 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 17,999,017 5,151,979 33,397,297 1,742,438 1,034,121 Cost of investments sold 20,845,375 5,233,795 39,072,099 2,091,240 1,493,360 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (2,846,358) (81,816) (5,674,802) (348,802) (459,239) Distributions from capital gains 5,566,078 -- -- 203,655 616,744 Net change in unrealized appreciation or depreciation of investments (40,786,586) (6,957,535) (27,706,340) (4,170,529) (1,738,276) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (38,066,866) (7,039,351) (33,381,142) (4,315,676) (1,580,771) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(37,687,724) $(7,177,984) $(34,398,750) $(4,294,983) $(1,542,829) ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 19 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING- FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, YEAR ENDED DEC. 31, 2008 (CONTINUED) RATE INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL INVESTMENT INCOME Dividend income $ 28,965,352 $ 349,429 $ -- $ 11,685,245 $ 1,383,974 Variable account expenses 4,706,115 247,531 519,981 11,077,396 1,211,626 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 24,259,237 101,898 (519,981) 607,849 172,348 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 80,745,182 8,154,191 20,464,293 145,404,461 42,967,644 Cost of investments sold 91,789,732 8,539,558 22,467,259 192,559,792 48,772,212 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (11,044,550) (385,367) (2,002,966) (47,155,331) (5,804,568) Distributions from capital gains -- -- 1,716,442 32,251,009 17,058,362 Net change in unrealized appreciation or depreciation of investments (173,776,117) (10,595,606) (29,248,242) (628,121,687) (82,614,017) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (184,820,667) (10,980,973) (29,534,766) (643,026,009) (71,360,223) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(160,561,430) $(10,879,075) $ (30,054,747) $(642,418,160) $(71,187,875) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, YEAR ENDED DEC. 31, 2008 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 INVESTMENT INCOME Dividend income $2,425,313 $ 1,023,775 $ 3,123,665 $ 1,648,709 $ 4,484,678 Variable account expenses 2,437,320 2,505,977 11,037,733 633,221 1,792,107 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (12,007) (1,482,202) (7,914,068) 1,015,488 2,692,571 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 81,750,937 75,721,547 186,671,202 21,300,415 48,533,791 Cost of investments sold 83,919,119 67,242,258 199,154,291 22,639,887 48,366,422 --------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (2,168,182) 8,479,289 (12,483,089) (1,339,472) 167,369 Distributions from capital gains 34,070,529 53,115,447 204,014,982 9,840,110 26,589,319 Net change in unrealized appreciation or depreciation of investments (174,868,782) (198,053,635) (775,162,198) (50,040,766) (141,543,366) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (142,966,435) (136,458,899) (583,630,305) (41,540,128) (114,786,678) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(142,978,442) $(137,941,101) $(591,544,373) $(40,524,640) $(112,094,107) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR YEAR ENDED DEC. 31, 2008 (CONTINUED) REAL EST, CL 2 VAL, CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 INVESTMENT INCOME Dividend income $ 3,195,028 $ 2,942,938 $ 7,659,094 $ 3,789,405 $ 870,733 Variable account expenses 2,691,123 2,240,094 2,412,831 1,559,738 301,987 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 503,905 702,844 5,246,263 2,229,667 568,746 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 132,091,609 75,422,176 89,951,493 48,704,089 12,209,259 Cost of investments sold 170,486,352 70,249,347 93,789,018 38,388,218 10,895,892 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (38,394,743) 5,172,829 (3,837,525) 10,315,871 1,313,367 Distributions from capital gains 87,261,284 20,382,263 10,893,796 25,138,413 3,563,678 Net change in unrealized appreciation or depreciation of investments (203,912,150) (119,712,412) (130,810,880) (124,463,455) (22,817,354) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (155,045,609) (94,157,320) (123,754,609) (89,009,171) (17,940,309) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(154,541,704) $ (93,454,476) $(118,508,346) $ (86,779,504) $(17,371,563) ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 20 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM CAP STRUCTD U.S. GLOBAL OVERSEAS, YEAR ENDED DEC. 31, 2008 (CONTINUED) VAL, INST EQ, INST EQ, INST TECH, SERV SERV INVESTMENT INCOME Dividend income $ 4,681,187 $ 93,096 $ 4,054,513 $ 17,049 $ 2,276,127 Variable account expenses 4,465,060 138,202 2,513,315 162,060 1,670,350 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 216,127 (45,106) 1,541,198 (145,011) 605,777 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 204,844,778 6,519,516 118,806,111 5,371,373 35,289,182 Cost of investments sold 237,617,903 8,058,106 130,428,204 7,363,298 32,783,131 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (32,773,125) (1,538,590) (11,622,093) (1,991,925) 2,506,051 Distributions from capital gains 838,210 23,491 2,274,591 -- 32,877,390 Net change in unrealized appreciation or depreciation of investments (183,567,970) (4,721,061) (119,801,756) (8,519,753) (165,722,340) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (215,502,885) (6,236,160) (129,149,258) (10,511,678) (130,338,899) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(215,286,758) $(6,281,266) $(127,608,060) $(10,656,689) $(129,733,122) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ JANUS ASPEN JANUS ASPEN LAZARD LM PTNRS VAR MFS INV JANUS, ENTERPRISE, RETIRE INTL SM CAP GRO, GRO STOCK, YEAR ENDED DEC. 31, 2008 (CONTINUED) SERV SERV EQ, SERV CL I SERV CL INVESTMENT INCOME Dividend income $ 5,257,804 $ 15,459 $ 1,370,557 $ -- $ 277,037 Variable account expenses 7,563,017 215,596 1,090,522 40,633 786,469 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (2,305,213) (200,137) 280,035 (40,633) (509,432) --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 58,544,704 6,365,443 46,681,553 1,248,936 25,859,716 Cost of investments sold 65,472,807 7,409,879 47,268,176 1,536,263 26,783,745 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (6,928,103) (1,044,436) (586,623) (287,327) (924,029) Distributions from capital gains -- 1,544,381 417,672 146,613 4,623,408 Net change in unrealized appreciation or depreciation of investments (395,159,205) (13,710,078) (58,612,594) (2,285,723) (42,788,887) -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (402,087,308) (13,210,133) (58,781,545) (2,426,437) (39,089,508) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(404,392,521) $(13,410,270) $(58,501,510) $(2,467,070) $(39,598,940) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, YEAR ENDED DEC. 31, 2008 (CONTINUED) SERV CL SERV CL SERV CL CL S CL S INVESTMENT INCOME Dividend income $ -- $ 3,003,926 $ 4,423,066 $ -- $ 39,514 Variable account expenses 513,955 931,511 2,885,498 2,570,124 20,903 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (513,955) 2,072,415 1,537,568 (2,570,124) 18,611 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 19,243,506 30,147,317 62,561,963 132,857,617 565,279 Cost of investments sold 22,738,800 34,271,400 69,538,406 148,449,239 651,042 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (3,495,294) (4,124,083) (6,976,443) (15,591,622) (85,763) Distributions from capital gains 12,927,097 6,550,300 53,844,373 -- 158,727 Net change in unrealized appreciation or depreciation of investments (36,609,326) (30,023,193) (197,627,493) (115,196,669) (1,081,348) -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (27,177,523) (27,596,976) (150,759,563) (130,788,291) (1,008,384) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(27,691,478) $(25,524,561) $(149,221,995) $(133,358,415) $ (989,773) ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 21 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ OPPEN OPPEN OPPEN OPPEN PIMCO GLOBAL SEC MAIN ST SM CAP STRATEGIC BOND VAL VA, VIT ALL ASSET, YEAR ENDED DEC. 31, 2008 (CONTINUED) VA, SERV VA, SERV VA, SERV SERV ADVISOR CL INVESTMENT INCOME Dividend income $ 1,803,978 $ 269,664 $ 103,801,915 $ 27,705 $ 64,115,452 Variable account expenses 1,178,995 847,566 21,366,903 45,752 9,099,098 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 624,983 (577,902) 82,435,012 (18,047) 55,016,354 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 39,076,599 25,624,503 313,388,046 2,524,785 93,676,089 Cost of investments sold 44,228,532 29,517,204 338,000,891 3,194,425 99,012,962 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (5,151,933) (3,892,701) (24,612,845) (669,640) (5,336,873) Distributions from capital gains 9,673,420 5,608,068 24,866,375 -- 3,379,059 Net change in unrealized appreciation or depreciation of investments (70,922,180) (42,994,917) (483,290,791) (1,561,941) (245,021,116) -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (66,400,693) (41,279,550) (483,037,261) (2,231,581) (246,978,930) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(65,775,710) $(41,857,452) $(400,602,249) $(2,249,628) $(191,962,576) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, GLOBAL HLTH INTL EQ, INTL NEW YEAR ENDED DEC. 31, 2008 (CONTINUED) CL II CL II CARE, CL IB CL IB OPP, CL IB INVESTMENT INCOME Dividend income $ 1,198,973 $ 67,391 $ -- $ 1,493,468 $ 1,030,410 Variable account expenses 408,061 44,783 278,114 563,276 530,028 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 790,912 22,608 (278,114) 930,192 500,382 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 16,580,223 2,418,553 10,181,870 23,751,321 19,036,955 Cost of investments sold 15,451,573 2,739,996 9,556,119 24,484,335 20,235,149 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 1,128,650 (321,443) 625,751 (733,014) (1,198,194) Distributions from capital gains 2,846,426 191,428 314,504 11,474,658 -- Net change in unrealized appreciation or depreciation of investments (20,877,228) (2,871,104) (6,592,938) (47,273,022) (32,428,752) -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (16,902,152) (3,001,119) (5,652,683) (36,531,378) (33,626,946) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(16,111,240) $(2,978,511) $(5,930,797) $(35,601,186) $(33,126,564) --------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ PUT VT PUT VT ROYCE DISC DISC NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, ASSET ALLOC, PERIOD ENDED DEC. 31, 2008 (CONTINUED) CL IA CL IB INVEST CL AGGR(1) CONSERV(1) INVESTMENT INCOME Dividend income $ 351,547 $ -- $ 1,909,253 $ -- $ -- Variable account expenses 1,366,814 407,036 709,229 27,495 62,873 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (1,015,267) (407,036) 1,200,024 (27,495) (62,873) --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 35,305,736 14,503,233 28,527,466 1,504,293 5,284,634 Cost of investments sold 44,356,240 20,567,641 24,153,470 1,768,932 5,775,119 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (9,050,504) (6,064,408) 4,373,996 (264,639) (490,485) Distributions from capital gains -- -- 8,000,920 -- -- Net change in unrealized appreciation or depreciation of investments (40,699,319) (20,077,045) (55,491,641) (1,661,420) (1,391,686) -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (49,749,823) (26,141,453) (43,116,725) (1,926,059) (1,882,171) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(50,765,090) $(26,548,489) $(41,916,701) $(1,953,554) $(1,945,044) ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 22 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------------- DISC DISC DISC RVS PTNRS RVS PTNRS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, VP FUNDAMENTAL VP SELECT PERIOD ENDED DEC. 31, 2008 (CONTINUED) MOD(1) MOD AGGR(1) MOD CONSERV(1) VAL VAL INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ 208,234 $ -- Variable account expenses 134,199 96,479 74,331 6,109,393 154,242 ------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (134,199) (96,479) (74,331) (5,901,159) (154,242) ------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 3,854,022 2,285,711 4,969,962 31,732,115 8,754,610 Cost of investments sold 4,402,740 2,651,736 5,713,846 32,861,126 10,342,131 ------------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments (548,718) (366,025) (743,884) (1,129,011) (1,587,521) Distributions from capital gains -- -- -- 5,167,283 167,075 Net change in unrealized appreciation or depreciation of investments (6,386,398) (5,428,645) (2,702,239) (319,039,412) (5,745,465) ------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments (6,935,116) (5,794,670) (3,446,123) (315,001,140) (7,165,911) ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $(7,069,315) $(5,891,149) $(3,520,454) $(320,902,299) $ (7,320,153) ------------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------------- RVS RVS RVS RVS RVS PTNRS VP VP VP VP VP YEAR ENDED DEC. 31, 2008 (CONTINUED) SM CAP VAL BAL CASH MGMT DIV BOND DIV EQ INC INVESTMENT INCOME Dividend income $ 827,978 $ 778,788 $ 25,802,607 $ 13,541,632 $ 1,790,543 Variable account expenses 7,706,902 3,053,987 10,651,162 32,168,436 20,934,088 ------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (6,878,924) (2,275,199) 15,151,445 (18,626,804) (19,143,545) ------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 97,348,844 112,788,786 347,965,410 804,368,713 292,421,685 Cost of investments sold 108,556,198 142,762,325 348,020,101 838,189,317 317,036,158 ------------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments (11,207,354) (29,973,539) (54,691) (33,820,604) (24,614,473) Distributions from capital gains 30,800,789 23,249,115 -- -- 214,500,453 Net change in unrealized appreciation or depreciation of investments (315,458,032) (91,725,822) (325,511) (216,095,371) (1,351,061,550) ------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments (295,864,597) (98,450,246) (380,202) (249,915,975) (1,161,175,570) ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $(302,743,521) $(100,725,445) $ 14,771,243 $(268,542,779) $(1,180,319,115) ------------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------------- RVS VP RVS VP SEL RVS RVS GLOBAL GLOBAL INFLATION VP VP HI YIELD VP INC YEAR ENDED DEC. 31, 2008 (CONTINUED) BOND PROT SEC GRO BOND OPP INVESTMENT INCOME Dividend income $ 86,064,923 $ 17,819,037 $ 809,587 $ 1,867,011 $ 1,130,371 Variable account expenses 11,628,570 6,648,819 2,275,296 5,405,687 5,714,370 ------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 74,436,353 11,170,218 (1,465,709) (3,538,676) (4,583,999) ------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 255,391,274 202,257,024 126,272,390 243,229,475 87,622,043 Cost of investments sold 260,738,692 202,443,942 153,831,635 274,031,294 100,275,645 ------------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments (5,347,418) (186,918) (27,559,245) (30,801,819) (12,653,602) Distributions from capital gains 590,926 -- -- -- -- Net change in unrealized appreciation or depreciation of investments (100,051,681) (25,359,743) (113,519,466) (116,303,042) (120,902,224) ------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments (104,808,173) (25,546,661) (141,078,711) (147,104,861) (133,555,826) ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ (30,371,820) $ (14,376,443) $(142,544,420) $(150,643,537) $(138,139,825) -------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 23 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- RVS SEL VP RVS VP RVS VP RVS VP LG CAP MID CAP MID CAP VP YEAR ENDED DEC. 31, 2008 (CONTINUED) DYN EQ VAL GRO VAL S&P 500 INVESTMENT INCOME Dividend income $ 1,758,845 $ 11,317 $ 27,871 $ -- $ 156,772 Variable account expenses 7,360,138 121,638 1,335,064 2,657,180 1,730,802 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (5,601,293) (110,321) (1,307,193) (2,657,180) (1,574,030) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 233,668,585 7,214,429 40,908,026 30,208,311 56,629,425 Cost of investments sold 281,070,860 8,846,236 45,165,334 39,150,235 56,172,430 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (47,402,275) (1,631,807) (4,257,308) (8,941,924) 456,995 Distributions from capital gains 85,907,518 363,086 1,041,144 65,630,697 8,639,876 Net change in unrealized appreciation or depreciation of investments (413,649,619) (5,376,917) (70,171,114) (218,152,389) (96,065,586) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (375,144,376) (6,645,638) (73,387,278) (161,463,616) (86,968,715) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(380,745,669) $(6,755,959) $(74,694,471) $(164,120,796) $(88,542,745) ---------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- RVS VP SEL VP THDL THDL THIRD SHORT SM CAP VP VP AVE YEAR ENDED DEC. 31, 2008 (CONTINUED) DURATION VAL EMER MKTS INTL OPP VAL INVESTMENT INCOME Dividend income $ 478,294 $ -- $ 4,137,074 $ 6,133,716 $ 800,754 Variable account expenses 3,150,519 721,334 5,422,657 2,720,427 861,084 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (2,672,225) (721,334) (1,285,583) 3,413,289 (60,330) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 73,380,062 33,510,284 56,256,978 93,249,398 39,980,455 Cost of investments sold 74,673,120 44,862,494 57,094,453 86,796,516 36,916,663 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,293,058) (11,352,210) (837,475) 6,452,882 3,063,792 Distributions from capital gains -- 11,015,847 103,706,010 -- 15,950,216 Net change in unrealized appreciation or depreciation of investments (9,457,807) (38,652,357) (505,111,892) (138,759,111) (72,084,315) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (10,750,865) (38,988,720) (402,243,357) (132,306,229) (53,070,307) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(13,423,090) $(39,710,054) $(403,528,940) $(128,892,940) $(53,130,637) ---------------------------------------------------------------------------------------------------------------------------- SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- VANK VANK UIF VANK UIF LIT COMSTOCK, GLOBAL REAL MID CAP WANGER WANGER YEAR ENDED DEC. 31, 2008 (CONTINUED) CL II EST, CL II GRO, CI II INTL USA INVESTMENT INCOME Dividend income $ 17,290,486 $ 6,307,799 $ 362,495 $ 7,422,159 $ -- Variable account expenses 7,356,357 2,176,780 424,487 6,770,662 6,967,912 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 9,934,129 4,131,019 (61,992) 651,497 (6,967,912) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 62,148,047 16,493,855 12,669,135 157,484,065 154,599,527 Cost of investments sold 73,369,360 19,435,356 18,682,864 145,234,700 154,734,771 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (11,221,313) (2,941,501) (6,013,729) 12,249,365 (135,244) Distributions from capital gains 42,465,434 14,718,198 13,822,746 112,265,598 98,763,493 Net change in unrealized appreciation or depreciation of investments (395,413,857) (153,850,021) (35,740,924) (562,372,647) (458,879,494) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (364,169,736) (142,073,324) (27,931,907) (437,857,684) (360,251,245) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(354,235,607) $(137,942,305) $(27,993,899) $(437,206,187) $(367,219,157) ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 24 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------ WF ADV WF ADV WF ADV WF ADV VT ASSET VT INTL VT VT YEAR ENDED DEC. 31, 2008 (CONTINUED) ALLOC CORE OPP SM CAP GRO INVESTMENT INCOME Dividend income $ 1,777,819 $ 271,676 $ 1,221,424 $ -- Variable account expenses 642,593 117,506 554,633 684,366 -------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 1,135,226 154,170 666,791 (684,366) -------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 30,678,571 5,391,725 21,906,080 22,081,201 Cost of investments sold 32,368,173 5,872,539 24,970,522 27,731,132 ------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,689,602) (480,814) (3,064,442) (5,649,931) Distributions from capital gains 5,981,215 2,835,003 14,416,944 21,965,577 Net change in unrealized appreciation or depreciation of investments (30,721,309) (9,918,833) (41,233,853) (55,428,219) ------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (26,429,696) (7,564,644) (29,881,351) (39,112,573) ------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(25,294,470) $(7,410,474) $(29,214,560) $(39,796,939) --------------------------------------------------------------------------------------------------------------------
(1) For the period May 1, 2008 (commencement of operations) to Dec. 31, 2008. See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 25 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2008 SER I SER II SER I SER II SER I OPERATIONS Investment income (loss) -- net $ (379,095) $ (1,292,973) $ (280,713) $ (459,754) $ 1,375,020 Net realized gain (loss) on sales of investments (5,162,404) 1,191,086 1,136,022 (343,627) 12,590,765 Distributions from capital gains -- -- 3,674,733 5,996,103 -- Net change in unrealized appreciation or depreciation of investments (18,379,803) (79,900,125) (23,806,007) (36,080,606) (83,608,169) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (23,921,302) (80,002,012) (19,275,965) (30,887,884) (69,642,384) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 985,754 4,878,252 459,953 2,018,326 3,723,360 Net transfers(1) (11,473,780) (22,897,465) (9,044,994) (15,946,346) (8,845,740) Transfers for policy loans 38,235 13,266 11,052 6,614 380,757 Adjustments to net assets allocated to contracts in payment period (8,221) (1,881) 798 4,021 (213,998) Contract charges (24,412) (524,784) (14,602) (38,606) (203,317) Contract terminations: Surrender benefits (3,328,859) (7,710,927) (2,272,300) (2,411,631) (59,522,035) Death benefits (501,576) (1,171,935) (198,671) (467,305) (2,685,728) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (14,312,859) (27,415,474) (11,058,764) (16,834,927) (67,366,701) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 64,979,644 206,589,315 48,482,951 76,866,151 273,531,059 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 26,745,483 $ 99,171,829 $ 18,148,222 $ 29,143,340 $136,521,974 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 57,017,970 165,545,770 23,477,624 49,607,310 128,470,099 Contract purchase payments 1,085,244 4,879,165 288,340 1,827,671 2,009,301 Net transfers(1) (12,744,204) (21,286,947) (5,567,835) (12,950,614) (5,287,340) Transfers for policy loans 43,057 18,291 7,888 4,151 207,661 Contract charges (27,882) (513,653) (9,439) (31,691) (110,051) Contract terminations: Surrender benefits (3,704,130) (7,685,284) (1,346,678) (1,927,921) (31,195,517) Death benefits (553,992) (1,176,056) (120,381) (404,753) (1,469,483) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 41,116,063 139,781,286 16,729,519 36,124,153 92,624,670 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 26 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, YEAR ENDED DEC. 31, 2008 (CONTINUED) SER I SER I SER II CARE, SER II SER II OPERATIONS Investment income (loss) -- net $ (87,674) $ 361,593 $ 99,756 $ (175,425) $ (840,450) Net realized gain (loss) on sales of investments 875,893 (2,008,552) (728,777) (322,141) (1,854,572) Distributions from capital gains -- 1,440,571 413,432 4,617,654 8,565,475 Net change in unrealized appreciation or depreciation of investments (7,062,572) (13,737,719) (3,205,095) (10,809,499) (215,133,394) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (6,274,353) (13,944,107) (3,420,684) (6,689,411) (209,262,941) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 233,189 532,632 1,342,887 1,933,226 118,335,866 Net transfers(1) (2,937,594) 7,536,306 2,236,456 5,002,995 224,227,960 Transfers for policy loans 180 1,012 31 (1,004) (48,555) Adjustments to net assets allocated to contracts in payment period (1,676) (665) 32,507 239 (2,250) Contract charges (8,957) (15,709) (2,938) (17,038) (1,788,225) Contract terminations: Surrender benefits (671,224) (976,080) (129,690) (1,005,490) (10,102,009) Death benefits (48,683) (108,998) (8,640) (160,011) (2,231,481) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (3,434,765) 6,968,498 3,470,613 5,752,917 328,391,306 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 15,340,630 17,731,099 3,080,689 18,500,472 342,380,926 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 5,631,512 $ 10,755,490 $ 3,130,618 $ 17,563,978 $ 461,509,291 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 10,864,203 16,656,560 3,427,045 16,065,485 234,064,317 Contract purchase payments 211,525 726,313 2,050,892 1,842,950 106,979,403 Net transfers(1) (2,674,482) 9,207,543 3,373,856 4,903,368 209,333,702 Transfers for policy loans 39 3,009 (620) (1,445) (34,685) Contract charges (8,478) (21,174) (4,841) (17,123) (1,635,189) Contract terminations: Surrender benefits (594,614) (1,326,142) (203,859) (1,025,817) (8,969,092) Death benefits (55,918) (127,113) (16,714) (163,618) (1,971,812) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 7,742,275 25,118,996 8,625,759 21,603,800 537,766,644 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 27 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, YEAR ENDED DEC. 31, 2008 (CONTINUED) SER I CL B CL B CL B CL B OPERATIONS Investment income (loss) -- net $ (201,490) $ (103,794) $ 2,142,434 $ (86,704) $ (27,143) Net realized gain (loss) on sales of investments 92,519 (746,338) (12,955,858) 1,532,880 (199,629) Distributions from capital gains -- -- 41,135,459 71,754,420 -- Net change in unrealized appreciation or depreciation of investments (12,981,479) (6,462,418) (140,323,608) (841,823,790) (1,172,785) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (13,090,450) (7,312,550) (110,001,573) (768,623,194) (1,399,557) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 586,751 975,261 6,409,990 161,253,262 574,827 Net transfers(1) (2,254,640) 304,566 (60,132,996) 23,971,567 (175,310) Transfers for policy loans 3,673 (33,350) 13,581 (17,013) (1,775) Adjustments to net assets allocated to contracts in payment period -- -- (13,980) 7,463 -- Contract charges (78,838) (11,318) (169,292) (2,615,851) (1,592) Contract terminations: Surrender benefits (1,321,066) (530,374) (12,132,008) (47,899,889) (59,634) Death benefits (129,468) (92,175) (1,578,107) (6,969,090) (7,131) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (3,193,588) 612,610 (67,602,812) 127,730,449 329,385 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 31,644,113 14,458,264 309,273,710 1,443,987,709 3,013,626 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 15,360,075 $ 7,758,324 $ 131,669,325 $ 803,094,964 $ 1,943,454 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 36,519,897 10,650,384 229,215,560 690,850,161 2,446,797 Contract purchase payments 841,259 905,906 6,010,190 159,225,323 547,255 Net transfers(1) (2,960,335) 86,324 (56,267,541) 133,981,714 (275,247) Transfers for policy loans 6,091 (47,585) 17,724 (5,185) (2,016) Contract charges (110,293) (10,973) (159,474) (2,185,013) (1,696) Contract terminations: Surrender benefits (1,908,415) (525,339) (11,169,756) (27,968,039) (59,981) Death benefits (187,530) (88,840) (1,461,400) (4,599,637) (6,587) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 32,200,674 10,969,877 166,185,303 949,299,324 2,648,525 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 28 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, YEAR ENDED DEC. 31, 2008 (CONTINUED) CL I CL II CL II CL II CL I OPERATIONS Investment income (loss) -- net $ 9,500 $ (162,420) $ (2,099,838) $ (280,276) $ 4,402,886 Net realized gain (loss) on sales of investments (803,331) 4,259,270 (23,922,102) (2,069,440) (19,655,356) Distributions from capital gains 5,077,940 9,919,707 -- 5,337,337 39,435,505 Net change in unrealized appreciation or depreciation of investments (31,526,012) (67,694,556) (38,592,255) (19,189,161) (108,993,245) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (27,241,903) (53,677,999) (64,614,195) (16,201,540) (84,810,210) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 688,524 1,985,383 69,520,247 1,958,346 4,811,659 Net transfers(1) (9,119,039) (18,402,998) (76,000,954) 465,320 (55,666,539) Transfers for policy loans (4,418) (8,603) (22,464) 5,855 284,360 Adjustments to net assets allocated to contracts in payment period (1,320) (6,573) 8,361 -- (244,561) Contract charges (16,933) (75,603) (1,057,234) (34,101) (165,697) Contract terminations: Surrender benefits (3,713,252) (5,981,768) (5,677,221) (1,378,939) (66,363,651) Death benefits (423,247) (609,844) (1,573,973) (162,676) (3,091,211) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (12,589,685) (23,100,006) (14,803,238) 853,805 (120,435,640) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 67,914,504 132,919,881 266,953,734 36,976,324 390,597,234 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 28,082,916 $ 56,141,876 $187,536,301 $ 21,628,589 $ 185,351,384 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 45,039,690 77,918,461 258,311,284 30,854,352 177,322,909 Contract purchase payments 573,439 1,461,590 68,865,332 1,964,728 2,493,430 Net transfers(1) (8,133,463) (14,425,990) (74,985,758) (54,106) (31,006,334) Transfers for policy loans (946) (7,657) (22,712) 6,427 138,018 Contract charges (14,297) (55,149) (1,144,325) (35,024) (82,098) Contract terminations: Surrender benefits (3,067,480) (4,220,298) (6,371,335) (1,426,639) (30,484,915) Death benefits (363,881) (450,013) (1,697,506) (161,474) (1,594,950) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 34,033,062 60,220,944 242,954,980 31,148,264 116,786,060 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 29 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- AC VP CALVERT COL COL COL VAL, VS SOCIAL HI YIELD, MARSICO GRO, MARSICO INTL YEAR ENDED DEC. 31, 2008 (CONTINUED) CL II BAL VS CL B VS CL A OPP, VS CL B OPERATIONS Investment income (loss) -- net $ 4,430,292 $ 542,401 $ 8,917,107 $ (5,818,040) $ 501,474 Net realized gain (loss) on sales of investments (25,552,297) (984,400) (3,980,722) (1,919,186) (8,601,724) Distributions from capital gains 39,005,503 491,524 -- -- 21,995,840 Net change in unrealized appreciation or depreciation of investments (102,934,758) (13,786,091) (29,451,187) (506,718,119) (81,729,339) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (85,051,260) (13,736,566) (24,514,802) (514,455,345) (67,833,749) --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 9,523,995 1,156,189 5,662,112 260,391,304 10,530,742 Net transfers(1) (86,811,356) (7,787,264) (22,889,512) 309,997,349 26,026,818 Transfers for policy loans 16,411 28,307 (35,402) (137,786) (29,568) Adjustments to net assets allocated to contracts in payment period (34,686) (33,610) (8,341) 223,359 317,938 Contract charges (231,033) (35,175) (141,702) (3,881,197) (74,829) Contract terminations: Surrender benefits (17,069,726) (2,273,634) (5,418,345) (27,425,115) (4,310,804) Death benefits (2,494,381) (453,979) (919,652) (5,423,288) (704,923) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (97,100,776) (9,399,166) (23,750,842) 533,744,626 31,755,374 --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 377,642,537 49,434,815 114,849,846 944,663,920 105,483,445 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 195,490,501 $ 26,299,083 $ 66,584,202 $ 963,953,201 $ 69,405,070 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 262,020,331 43,038,361 106,093,036 766,012,676 80,923,123 Contract purchase payments 8,352,153 1,123,759 5,505,269 255,171,938 9,186,833 Net transfers(1) (66,086,051) (7,873,291) (22,620,940) 315,156,481 18,749,536 Transfers for policy loans 14,165 23,789 (36,104) (127,474) (21,219) Contract charges (182,727) (34,477) (139,277) (3,998,684) (74,317) Contract terminations: Surrender benefits (13,440,286) (2,194,577) (5,460,025) (28,532,571) (4,436,540) Death benefits (2,013,183) (442,497) (914,432) (5,551,579) (704,280) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 188,664,402 33,641,067 82,427,527 1,298,130,787 103,623,136 ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 30 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY U.S. EQ U.S. EQ INTL EQ, INTL VAL, YEAR ENDED DEC. 31, 2008 (CONTINUED) RETURN FLEX III FLEX I SERV SERV OPERATIONS Investment income (loss) -- net $ 379,142 $ (138,633) $ (1,017,608) $ 20,693 $ 37,942 Net realized gain (loss) on sales of investments (2,846,358) (81,816) (5,674,802) (348,802) (459,239) Distributions from capital gains 5,566,078 -- -- 203,655 616,744 Net change in unrealized appreciation or depreciation of investments (40,786,586) (6,957,535) (27,706,340) (4,170,529) (1,738,276) ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations (37,687,724) (7,177,984) (34,398,750) (4,294,983) (1,542,829) ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 7,232,903 291,142 1,954,575 1,796,642 411,670 Net transfers(1) 41,355,894 (3,174,341) (7,306,965) 1,977,640 309,473 Transfers for policy loans (20,229) (2,586) 207,539 (3,245) (1,721) Adjustments to net assets allocated to contracts in payment period 23,966 (3,582) (57,194) -- 246 Contract charges (56,503) (9,767) (74,631) (5,639) (3,871) Contract terminations: Surrender benefits (4,134,580) (1,533,179) (26,228,544) (241,658) (102,050) Death benefits (402,491) (268,800) (874,469) (27,243) (94,417) ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 43,998,960 (4,701,113) (32,379,689) 3,496,497 519,330 ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 52,379,728 22,003,858 121,104,150 7,027,189 3,491,579 ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 58,690,964 $10,124,761 $ 54,325,711 $ 6,228,703 $ 2,468,080 ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 45,929,583 15,557,614 88,083,999 5,139,735 2,931,432 Contract purchase payments 5,834,205 244,891 1,686,620 1,543,299 409,008 Net transfers(1) 30,729,672 (2,601,366) (6,345,315) 1,556,971 206,532 Transfers for policy loans (14,924) (1,298) 181,481 (2,982) (1,726) Contract charges (48,823) (8,378) (64,700) (5,388) (4,127) Contract terminations: Surrender benefits (3,691,025) (1,286,630) (21,728,566) (224,614) (105,196) Death benefits (378,899) (203,871) (772,193) (20,959) (88,258) ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 78,359,789 11,700,962 61,041,326 7,986,062 3,347,665 ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 31 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING- FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, YEAR ENDED DEC. 31, 2008 (CONTINUED) RATE INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL OPERATIONS Investment income (loss) -- net $ 24,259,237 $ 101,898 $ (519,981) $ 607,849 $ 172,348 Net realized gain (loss) on sales of investments (11,044,550) (385,367) (2,002,966) (47,155,331) (5,804,568) Distributions from capital gains -- -- 1,716,442 32,251,009 17,058,362 Net change in unrealized appreciation or depreciation of investments (173,776,117) (10,595,606) (29,248,242) (628,121,687) (82,614,017) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (160,561,430) (10,879,075) (30,054,747) (642,418,160) (71,187,875) --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 132,226,226 1,771,960 3,394,257 265,507,861 2,309,595 Net transfers(1) 823,683 (1,440,389) (12,773,582) 188,298,202 (29,393,307) Transfers for policy loans (32,203) (165) (11,661) (122,156) 6,137 Adjustments to net assets allocated to contracts in payment period 63,448 (4,592) (2,344) 366,427 46,869 Contract charges (1,784,684) (19,760) (60,023) (3,874,005) (58,387) Contract terminations: Surrender benefits (18,245,360) (1,379,649) (3,261,319) (35,884,264) (12,392,642) Death benefits (3,959,308) (211,025) (358,835) (6,720,287) (1,229,221) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 109,091,802 (1,283,620) (13,073,507) 407,571,778 (40,710,956) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 485,908,376 33,190,528 79,458,167 1,258,736,312 196,235,488 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 434,438,748 $ 21,027,833 $ 36,329,913 $1,023,889,930 $ 84,336,657 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 469,434,029 27,463,490 46,006,324 1,018,249,324 154,279,836 Contract purchase payments 138,263,594 1,732,790 2,808,632 259,940,481 2,212,442 Net transfers(1) (861,457) (1,428,442) (9,149,047) 226,034,879 (28,841,446) Transfers for policy loans (30,096) (289) (12,730) (103,879) 14,887 Contract charges (1,884,184) (19,533) (42,716) (3,996,249) (59,083) Contract terminations: Surrender benefits (19,229,993) (1,304,198) (2,366,479) (37,411,309) (11,640,155) Death benefits (4,149,794) (202,833) (278,093) (6,856,731) (1,207,014) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 581,542,099 26,240,985 36,965,891 1,455,856,516 114,759,467 ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 32 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, YEAR ENDED DEC. 31, 2008 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 OPERATIONS Investment income (loss) -- net $ (12,007) $ (1,482,202) $ (7,914,068) $ 1,015,488 $ 2,692,571 Net realized gain (loss) on sales of investments (2,168,182) 8,479,289 (12,483,089) (1,339,472) 167,369 Distributions from capital gains 34,070,529 53,115,447 204,014,982 9,840,110 26,589,319 Net change in unrealized appreciation or depreciation of investments (174,868,782) (198,053,635) (775,162,198) (50,040,766) (141,543,366) ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (142,978,442) (137,941,101) (591,544,373) (40,524,640) (112,094,107) ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 6,298,771 4,445,132 153,902,188 1,074,683 8,342,292 Net transfers(1) (63,336,220) (52,852,026) 8,297,919 (13,668,349) (30,835,134) Transfers for policy loans 57,611 (53,445) (82,997) (4,248) (44,600) Adjustments to net assets allocated to contracts in payment period (103,982) 37,895 (53,659) (63,987) (31,844) Contract charges (240,576) (114,513) (2,644,397) (25,260) (163,625) Contract terminations: Surrender benefits (17,336,524) (20,770,803) (54,316,552) (5,901,165) (10,913,658) Death benefits (3,193,891) (2,728,748) (7,849,927) (505,598) (1,612,373) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (77,854,811) (72,036,508) 97,252,575 (19,093,924) (35,258,942) ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 390,430,570 395,275,416 1,459,930,264 103,079,398 272,379,000 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 169,597,317 $ 185,297,807 $ 965,638,466 $ 43,460,834 $ 125,025,951 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 278,465,380 109,849,441 738,938,581 66,055,426 146,997,035 Contract purchase payments 5,387,295 1,491,611 142,327,803 875,913 6,518,803 Net transfers(1) (56,243,671) (17,773,907) 70,668,718 (11,865,773) (21,842,266) Transfers for policy loans 52,917 (16,259) (51,605) (4,141) (23,729) Contract charges (209,976) (39,862) (2,059,311) (21,238) (111,326) Contract terminations: Surrender benefits (14,777,785) (6,870,031) (31,523,887) (4,618,940) (7,092,922) Death benefits (2,735,042) (885,768) (5,000,710) (407,852) (1,156,708) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 209,939,118 85,755,225 913,299,589 50,013,395 123,288,887 ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 33 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR YEAR ENDED DEC. 31, 2008 (CONTINUED) REAL EST, CL 2 VAL, CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 OPERATIONS Investment income (loss) -- net $ 503,905 $ 702,844 $ 5,246,263 $ 2,229,667 $ 568,746 Net realized gain (loss) on sales of investments (38,394,743) 5,172,829 (3,837,525) 10,315,871 1,313,367 Distributions from capital gains 87,261,284 20,382,263 10,893,796 25,138,413 3,563,678 Net change in unrealized appreciation or depreciation of investments (203,912,150) (119,712,412) (130,810,880) (124,463,455) (22,817,354) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (154,541,704) (93,454,476) (118,508,346) (86,779,504) (17,371,563) ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 11,204,368 8,679,849 11,767,484 1,810,583 488,265 Net transfers(1) (112,195,341) (54,730,943) (73,904,335) (11,584,862) (9,092,311) Transfers for policy loans 65,901 (692) (6,959) 157,640 (4,903) Adjustments to net assets allocated to contracts in payment period (26,771) (6,007) (127,947) (58,855) (26,115) Contract charges (251,691) (172,640) (200,749) (94,829) (10,725) Contract terminations: Surrender benefits (20,751,224) (14,580,137) (14,269,268) (36,417,657) (2,313,084) Death benefits (2,423,857) (1,783,250) (2,954,337) (1,269,884) (298,520) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (124,378,615) (62,593,820) (79,696,111) (47,457,864) (11,257,393) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 456,336,406 329,243,517 367,471,204 197,631,940 49,455,402 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 177,416,087 $ 173,195,221 $ 169,266,747 $ 63,394,572 $ 20,826,446 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 204,659,663 157,428,566 248,866,779 110,250,665 25,304,176 Contract purchase payments 8,908,558 6,684,534 10,505,500 1,387,143 305,341 Net transfers(1) (57,803,132) (27,020,048) (59,532,389) (9,443,409) (5,948,733) Transfers for policy loans 34,749 (8,049) (4,805) 126,318 (2,314) Contract charges (138,403) (95,620) (163,866) (73,500) (7,014) Contract terminations: Surrender benefits (11,284,241) (7,818,548) (11,236,361) (25,742,506) (1,428,537) Death benefits (1,356,182) (1,130,484) (2,343,638) (996,873) (204,214) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 143,021,012 128,040,351 186,091,220 75,507,838 18,018,705 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 34 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM CAP STRUCTD U.S. GLOBAL OVERSEAS, YEAR ENDED DEC. 31, 2008 (CONTINUED) VAL, INST EQ, INST EQ, INST TECH, SERV SERV OPERATIONS Investment income (loss) -- net $ 216,127 $ (45,106) $ 1,541,198 $ (145,011) $ 605,777 Net realized gain (loss) on sales of investments (32,773,125) (1,538,590) (11,622,093) (1,991,925) 2,506,051 Distributions from capital gains 838,210 23,491 2,274,591 -- 32,877,390 Net change in unrealized appreciation or depreciation of investments (183,567,970) (4,721,061) (119,801,756) (8,519,753) (165,722,340) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (215,286,758) (6,281,266) (127,608,060) (10,656,689) (129,733,122) --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 9,859,555 288,671 7,769,311 535,332 2,934,517 Net transfers(1) (172,655,431) (4,690,568) (97,640,213) (2,187,112) (10,085,784) Transfers for policy loans 37,539 13,908 43,188 17,121 (63,277) Adjustments to net assets allocated to contracts in payment period (89,130) (2,957) (189,538) (713) 108,148 Contract charges (507,399) (7,617) (533,685) (15,018) (100,208) Contract terminations: Surrender benefits (31,858,658) (1,382,714) (17,398,983) (1,490,583) (11,541,276) Death benefits (3,799,640) (97,887) (2,452,181) (161,502) (1,202,226) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (199,013,164) (5,879,164) (110,402,101) (3,302,475) (19,950,106) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 726,483,476 22,383,410 420,470,514 25,957,096 252,914,192 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 312,183,554 $10,222,980 $ 182,460,353 $ 11,997,932 $ 103,230,964 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 278,223,433 13,830,219 366,725,492 49,168,889 147,130,132 Contract purchase payments 4,530,966 210,858 8,022,571 1,295,628 2,190,099 Net transfers(1) (74,656,686) (3,337,390) (98,924,500) (5,645,355) (13,549,811) Transfers for policy loans 19,029 11,046 47,659 40,758 (40,236) Contract charges (225,186) (5,818) (545,110) (36,483) (76,914) Contract terminations: Surrender benefits (14,800,002) (983,945) (17,639,717) (3,432,864) (8,371,752) Death benefits (1,745,468) (76,919) (2,504,860) (368,859) (926,689) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 191,346,086 9,648,051 255,181,535 41,021,714 126,354,829 ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 35 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LAZARD LM PTNRS VAR MFS INV JANUS, ENTERPRISE, RETIRE INTL SM CAP GRO, GRO STOCK, YEAR ENDED DEC. 31, 2008 (CONTINUED) SERV SERV EQ, SERV CL I SERV CL OPERATIONS Investment income (loss) -- net $ (2,305,213) $ (200,137) $ 280,035 $ (40,633) $ (509,432) Net realized gain (loss) on sales of investments (6,928,103) (1,044,436) (586,623) (287,327) (924,029) Distributions from capital gains -- 1,544,381 417,672 146,613 4,623,408 Net change in unrealized appreciation or depreciation of investments (395,159,205) (13,710,078) (58,612,594) (2,285,723) (42,788,887) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (404,392,521) (13,410,270) (58,501,510) (2,467,070) (39,598,940) ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 247,687,503 709,738 2,079,957 877,948 2,613,345 Net transfers(1) 164,673,706 (2,743,512) (37,546,771) 1,944,674 (16,641,316) Transfers for policy loans (90,112) 38,093 23,083 (4,454) (19,457) Adjustments to net assets allocated to contracts in payment period 14,319 (54,051) (32,389) -- (12,682) Contract charges (3,804,074) (18,372) (81,223) (4,653) (68,003) Contract terminations: Surrender benefits (18,315,354) (1,972,016) (8,402,056) (254,146) (5,994,233) Death benefits (4,193,535) (224,114) (1,047,645) (15,093) (824,585) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 385,972,453 (4,264,234) (45,007,044) 2,544,276 (20,946,931) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 791,865,502 33,178,766 183,797,330 4,020,625 120,723,574 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 773,445,434 $ 15,504,262 $ 80,288,776 $ 4,097,831 $ 60,177,703 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 747,893,080 45,767,051 131,001,191 3,950,898 150,559,981 Contract purchase payments 286,576,052 1,193,239 1,736,233 999,926 3,399,530 Net transfers(1) 223,192,943 (4,946,979) (33,102,988) 2,215,935 (25,100,039) Transfers for policy loans (95,888) 64,714 22,426 (4,641) (28,112) Contract charges (4,525,898) (32,151) (70,896) (5,659) (100,145) Contract terminations: Surrender benefits (21,923,911) (3,226,597) (7,036,102) (283,839) (8,401,975) Death benefits (4,937,908) (341,442) (951,245) (16,939) (1,226,535) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,226,178,470 38,477,835 91,598,619 6,855,681 119,102,705 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 36 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, YEAR ENDED DEC. 31, 2008 (CONTINUED) SERV CL SERV CL SERV CL CL S CL S OPERATIONS Investment income (loss) -- net $ (513,955) $ 2,072,415 $ 1,537,568 $ (2,570,124) $ 18,611 Net realized gain (loss) on sales of investments (3,495,294) (4,124,083) (6,976,443) (15,591,622) (85,763) Distributions from capital gains 12,927,097 6,550,300 53,844,373 -- 158,727 Net change in unrealized appreciation or depreciation of investments (36,609,326) (30,023,193) (197,627,493) (115,196,669) (1,081,348) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (27,691,478) (25,524,561) (149,221,995) (133,358,415) (989,773) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,412,836 6,429,410 17,638,233 78,594,838 600,453 Net transfers(1) (14,951,575) (19,014,835) (23,668,023) (30,869,209) (80,204) Transfers for policy loans 8,281 11,333 (49,633) (17,325) 1,244 Adjustments to net assets allocated to contracts in payment period (51,358) 90,326 142,203 (2,847) -- Contract charges (48,562) (88,038) (229,836) (1,261,462) (2,030) Contract terminations: Surrender benefits (3,929,933) (6,379,310) (17,794,372) (6,174,801) (30,424) Death benefits (533,872) (1,849,555) (3,320,128) (1,537,805) (14,681) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (18,094,183) (20,800,669) (27,281,556) 38,731,389 474,358 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 82,088,385 122,396,783 389,227,693 313,048,610 2,109,252 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 36,302,724 $ 76,071,553 $ 212,724,142 $ 218,421,584 $ 1,593,837 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 80,673,123 98,587,433 181,258,692 273,245,434 1,744,217 Contract purchase payments 1,653,902 5,930,342 11,515,883 81,261,084 565,057 Net transfers(1) (17,691,840) (17,022,557) (18,159,748) 13,726,397 (68,796) Transfers for policy loans 12,477 8,966 (27,155) (16,152) 350 Contract charges (57,562) (78,382) (130,042) (1,395,789) (2,028) Contract terminations: Surrender benefits (4,415,692) (5,720,217) (9,359,471) (6,991,618) (27,158) Death benefits (643,508) (1,714,988) (1,921,520) (1,713,548) (13,425) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 59,530,900 79,990,597 163,176,639 358,115,808 2,198,217 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 37 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- OPPEN OPPEN OPPEN OPPEN PIMCO GLOBAL SEC MAIN ST SM CAP STRATEGIC BOND VAL VA, VIT ALL ASSET, YEAR ENDED DEC. 31, 2008 (CONTINUED) VA, SERV VA, SERV VA, SERV SERV ADVISOR CL OPERATIONS Investment income (loss) -- net $ 624,983 $ (577,902) $ 82,435,012 $ (18,047) $ 55,016,354 Net realized gain (loss) on sales of investments (5,151,933) (3,892,701) (24,612,845) (669,640) (5,336,873) Distributions from capital gains 9,673,420 5,608,068 24,866,375 -- 3,379,059 Net change in unrealized appreciation or depreciation of investments (70,922,180) (42,994,917) (483,290,791) (1,561,941) (245,021,116) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (65,775,710) (41,857,452) (400,602,249) (2,249,628) (191,962,576) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 6,629,977 5,152,070 413,463,715 835,603 284,761,229 Net transfers(1) (30,406,024) (17,997,334) 58,175,030 (1,455,174) 118,887,051 Transfers for policy loans 6,006 (9,664) (154,911) (2,106) (79,984) Adjustments to net assets allocated to contracts in payment period 38,116 11,678 950,257 -- 529,412 Contract charges (100,647) (68,573) (5,695,688) (2,721) (4,199,813) Contract terminations: Surrender benefits (6,829,217) (4,649,184) (103,820,171) (96,922) (25,329,389) Death benefits (906,569) (629,276) (17,494,240) (14,970) (5,773,796) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (31,568,358) (18,190,283) 345,423,992 (736,290) 368,794,710 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 181,570,893 121,815,788 2,131,138,444 5,723,096 855,249,980 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 84,226,825 $ 61,768,053 $2,075,960,187 $ 2,737,178 $1,032,082,114 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 117,626,819 91,910,733 1,745,767,764 5,116,281 754,096,049 Contract purchase payments 5,883,357 5,092,316 360,902,069 858,158 262,481,612 Net transfers(1) (24,025,887) (15,674,671) 14,615,938 (1,596,425) 108,874,036 Transfers for policy loans 8,236 (5,797) (130,174) (3,077) (74,291) Contract charges (80,452) (61,601) (4,930,441) (3,045) (3,966,045) Contract terminations: Surrender benefits (5,455,157) (4,098,857) (87,846,472) (122,445) (24,194,353) Death benefits (750,936) (576,793) (14,883,710) (14,210) (5,431,942) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 93,205,980 76,585,330 2,013,494,974 4,235,237 1,091,785,066 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 38 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, GLOBAL HLTH INTL EQ, INTL NEW YEAR ENDED DEC. 31, 2008 (CONTINUED) CL II CL II CARE, CL IB CL IB OPP, CL IB OPERATIONS Investment income (loss) -- net $ 790,912 $ 22,608 $ (278,114) $ 930,192 $ 500,382 Net realized gain (loss) on sales of investments 1,128,650 (321,443) 625,751 (733,014) (1,198,194) Distributions from capital gains 2,846,426 191,428 314,504 11,474,658 -- Net change in unrealized appreciation or depreciation of investments (20,877,228) (2,871,104) (6,592,938) (47,273,022) (32,428,752) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (16,111,240) (2,978,511) (5,930,797) (35,601,186) (33,126,564) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 669,488 64,609 768,699 1,063,305 1,222,154 Net transfers(1) (12,544,025) (1,832,842) (7,108,096) (18,594,269) (14,214,336) Transfers for policy loans 9,736 908 8,973 12,852 (10,112) Adjustments to net assets allocated to contracts in payment period (7,129) -- (13,260) (3,721) 36,894 Contract charges (28,105) (3,712) (30,343) (49,465) (42,102) Contract terminations: Surrender benefits (2,577,451) (369,619) (1,851,961) (3,927,793) (4,848,113) Death benefits (352,750) (36,862) (215,109) (436,835) (416,027) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (14,830,236) (2,177,518) (8,441,097) (21,935,926) (18,271,642) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 62,832,100 8,064,938 39,463,521 94,674,067 89,099,543 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 31,890,624 $ 2,908,909 $25,091,627 $ 37,136,955 $ 37,701,337 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 43,593,775 7,133,569 35,962,246 53,770,331 65,316,221 Contract purchase payments 522,765 74,902 746,884 743,329 1,130,761 Net transfers(1) (9,745,038) (2,051,023) (6,879,621) (13,492,860) (13,122,818) Transfers for policy loans 8,331 1,736 9,234 11,911 (34) Contract charges (22,468) (4,139) (29,546) (35,052) (39,359) Contract terminations: Surrender benefits (2,018,462) (388,523) (1,792,929) (2,728,332) (4,480,743) Death benefits (263,746) (37,471) (208,972) (322,453) (399,103) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 32,075,157 4,729,051 27,807,296 37,946,874 48,404,925 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 39 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ PUT VT PUT VT ROYCE DISC DISC NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, ASSET ALLOC, PERIOD ENDED DEC. 31, 2008 (CONTINUED) CL IA CL IB INVEST CL AGGR(2) CONSERV(2) OPERATIONS Investment income (loss) -- net $ (1,015,267) $ (407,036) $ 1,200,024 $ (27,495) $ (62,873) Net realized gain (loss) on sales of investments (9,050,504) (6,064,408) 4,373,996 (264,639) (490,485) Distributions from capital gains -- -- 8,000,920 -- -- Net change in unrealized appreciation or depreciation of investments (40,699,319) (20,077,045) (55,491,641) (1,661,420) (1,391,686) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (50,765,090) (26,548,489) (41,916,701) (1,953,554) (1,945,044) ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 2,558,923 1,298,219 1,238,647 1,252,934 993,675 Net transfers(1) (7,354,984) (10,320,649) (21,295,116) 9,400,148 23,332,184 Transfers for policy loans 294,021 40,753 24,443 2,193 (23,367) Adjustments to net assets allocated to contracts in payment period (90,024) (13,372) (1,236) (195) -- Contract charges (135,034) (44,382) (28,175) (2,891) (5,277) Contract terminations: Surrender benefits (28,545,485) (3,781,279) (6,345,642) (357,830) (837,560) Death benefits (851,236) (453,300) (715,816) -- (156,810) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (34,123,819) (13,274,010) (27,122,895) 10,294,359 23,302,845 ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 153,099,942 67,450,004 116,412,325 -- -- ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 68,211,033 $ 27,627,505 $ 47,372,729 $ 8,340,805 $21,357,801 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 97,679,315 61,544,884 33,733,553 -- -- Contract purchase payments 2,007,663 1,481,294 434,527 1,336,474 991,290 Net transfers(1) (5,880,189) (11,663,264) (7,339,770) 10,801,305 25,478,179 Transfers for policy loans 235,024 56,359 8,918 2,954 (24,186) Contract charges (107,335) (51,948) (10,177) (3,612) (6,077) Contract terminations: Surrender benefits (21,580,929) (4,192,107) (2,192,589) (370,772) (851,454) Death benefits (648,308) (501,145) (246,343) -- (161,406) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 71,705,241 46,674,073 24,388,119 11,766,349 25,426,346 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 40 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- DISC DISC DISC RVS PTNRS RVS PTNRS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, VP FUNDAMENTAL VP SELECT PERIOD ENDED DEC. 31, 2008 (CONTINUED) MOD(2) MOD AGGR(2) MOD CONSERV(2) VAL VAL OPERATIONS Investment income (loss) -- net $ (134,199) $ (96,479) $ (74,331) $ (5,901,159) $ (154,242) Net realized gain (loss) on sales of investments (548,718) (366,025) (743,884) (1,129,011) (1,587,521) Distributions from capital gains -- -- -- 5,167,283 167,075 Net change in unrealized appreciation or depreciation of investments (6,386,398) (5,428,645) (2,702,239) (319,039,412) (5,745,465) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (7,069,315) (5,891,149) (3,520,454) (320,902,299) (7,320,153) ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,105,294 2,027,043 1,633,496 196,909,373 571,960 Net transfers(1) 42,349,382 28,646,415 22,732,816 174,561,789 (5,912,474) Transfers for policy loans (4,392) (7,898) (12,876) (46,967) 8,002 Adjustments to net assets allocated to contracts in payment period 266,298 81,523 12,742 (832) (1,804) Contract charges (10,847) (5,984) (5,046) (3,031,355) (18,414) Contract terminations: Surrender benefits (725,899) (315,166) (734,652) (15,193,010) (1,373,482) Death benefits (136,462) (74,251) (28,456) (3,636,964) (119,262) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 44,843,374 30,351,682 23,598,024 349,562,034 (6,845,474) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- 606,200,877 25,326,978 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $37,774,059 $24,460,533 $20,077,570 $ 634,860,612 $11,161,351 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- -- -- 533,474,524 18,855,178 Contract purchase payments 3,378,562 2,222,979 1,662,306 206,839,189 512,163 Net transfers(1) 46,926,034 31,237,470 24,417,767 200,999,356 (4,832,398) Transfers for policy loans (3,756) (11,805) (13,126) (45,858) 5,518 Contract charges (12,844) (7,138) (5,894) (3,302,892) (16,211) Contract terminations: Surrender benefits (777,741) (271,630) (765,774) (16,692,769) (996,015) Death benefits (144,108) (106,586) (37,350) (3,898,074) (115,372) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 49,366,147 33,063,290 25,257,929 917,373,476 13,412,863 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 41 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------------- RVS RVS RVS RVS RVS PTNRS VP VP VP VP VP YEAR ENDED DEC. 31, 2008 (CONTINUED) SM CAP VAL BAL CASH MGMT DIV BOND DIV EQ INC OPERATIONS Investment income (loss) -- net $ (6,878,924) $ (2,275,199) $ 15,151,445 $ (18,626,804) $ (19,143,545) Net realized gain (loss) on sales of investments (11,207,354) (29,973,539) (54,691) (33,820,604) (24,614,473) Distributions from capital gains 30,800,789 23,249,115 -- -- 214,500,453 Net change in unrealized appreciation or depreciation of investments (315,458,032) (91,725,822) (325,511) (216,095,371) (1,351,061,550) ------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (302,743,521) (100,725,445) 14,771,243 (268,542,779) (1,180,319,115) ------------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 193,361,128 5,613,860 219,269,511 778,967,812 346,744,420 Net transfers(1) 49,520,605 (57,955,138) 280,290,723 (139,919,730) 132,509,673 Transfers for policy loans (953) 234,168 252,208 (1,881) (79,069) Adjustments to net assets allocated to contracts in payment period (94,261) (652,827) (1,169,218) (546,744) (310,509) Contract charges (3,389,664) (233,307) (650,066) (11,254,905) (5,605,751) Contract terminations: Surrender benefits (26,571,775) (46,856,334) (189,247,253) (166,895,226) (101,234,525) Death benefits (4,872,553) (5,068,011) (17,534,278) (30,597,103) (17,241,488) ------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 207,952,527 (104,917,589) 291,211,627 429,752,223 354,782,751 ------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 846,374,532 399,988,332 1,009,165,225 3,134,331,720 2,710,344,684 ------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 751,583,538 $ 194,345,298 $1,315,148,095 $3,295,541,164 $ 1,884,808,320 ------------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 617,370,344 271,897,845 868,750,481 2,530,298,748 1,615,553,755 Contract purchase payments 205,084,186 4,458,110 202,236,494 726,110,338 343,759,136 Net transfers(1) 61,585,396 (51,696,068) 225,008,434 (178,174,690) 192,179,798 Transfers for policy loans (12,550) 157,497 197,783 (31,604) (50,959) Contract charges (3,126,625) (181,071) (554,618) (9,852,338) (5,045,291) Contract terminations: Surrender benefits (20,679,903) (31,164,258) (159,414,965) (131,563,804) (70,779,936) Death benefits (4,107,151) (3,791,840) (15,158,849) (25,094,542) (12,831,036) ------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 856,113,697 189,680,215 1,121,064,760 2,911,692,108 2,062,785,467 -------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 42 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------------- RVS VP RVS VP SEL RVS RVS GLOBAL GLOBAL INFLATION VP VP HI YIELD VP INC YEAR ENDED DEC. 31, 2008 (CONTINUED) BOND PROT SEC GRO BOND OPP OPERATIONS Investment income (loss) -- net $ 74,436,353 $ 11,170,218 $ (1,465,709) $ (3,538,676) $ (4,583,999) Net realized gain (loss) on sales of investments (5,347,418) (186,918) (27,559,245) (30,801,819) (12,653,602) Distributions from capital gains 590,926 -- -- -- -- Net change in unrealized appreciation or depreciation of investments (100,051,681) (25,359,743) (113,519,466) (116,303,042) (120,902,224) ------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (30,371,820) (14,376,443) (142,544,420) (150,643,537) (138,139,825) ------------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 259,985,783 162,447,055 7,767,836 12,961,165 168,909,005 Net transfers(1) (68,677,513) 8,181,357 (109,420,420) (176,404,868) (8,794,640) Transfers for policy loans (286) (49,993) 92,813 91,031 (33,252) Adjustments to net assets allocated to contracts in payment period (131,929) (51,868) (168,448) (321,491) (30,672) Contract charges (3,829,196) (2,650,012) (262,930) (361,398) (2,634,839) Contract terminations: Surrender benefits (61,041,667) (26,495,759) (16,669,635) (57,863,381) (16,734,807) Death benefits (9,609,829) (5,375,017) (1,720,240) (8,237,322) (4,024,236) ------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 116,695,363 136,005,763 (120,381,024) (230,136,264) 136,656,559 ------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,133,348,233 605,794,082 404,027,400 763,178,955 577,420,763 ------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,219,671,776 $727,423,402 $ 141,101,956 $ 382,399,154 $ 575,937,497 ------------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 852,722,375 543,694,986 516,489,168 550,624,505 516,836,128 Contract purchase payments 229,091,526 145,260,311 11,297,360 11,063,632 165,306,074 Net transfers(1) (78,708,281) 110,288 (173,583,082) (138,517,692) (16,672,350) Transfers for policy loans (11,878) (43,839) 174,758 72,030 (31,183) Contract charges (3,091,241) (2,356,943) (413,755) (283,275) (2,552,940) Contract terminations: Surrender benefits (42,561,206) (23,579,811) (24,795,058) (43,180,171) (16,013,800) Death benefits (7,186,299) (4,784,575) (2,659,181) (6,502,309) (3,857,463) ------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 950,254,996 658,300,417 326,510,210 373,276,720 643,014,466 -------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 43 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- RVS SEL VP RVS VP RVS VP RVS VP LG CAP MID CAP MID CAP VP YEAR ENDED DEC. 31, 2008 (CONTINUED) DYN EQ VAL GRO VAL S&P 500 OPERATIONS Investment income (loss) -- net $ (5,601,293) $ (110,321) $ (1,307,193) $ (2,657,180) $ (1,574,030) Net realized gain (loss) on sales of investments (47,402,275) (1,631,807) (4,257,308) (8,941,924) 456,995 Distributions from capital gains 85,907,518 363,086 1,041,144 65,630,697 8,639,876 Net change in unrealized appreciation or depreciation of investments (413,649,619) (5,376,917) (70,171,114) (218,152,389) (96,065,586) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (380,745,669) (6,755,959) (74,694,471) (164,120,796) (88,542,745) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 18,553,001 620,986 3,921,623 51,341,501 7,187,475 Net transfers(1) (123,015,836) (4,210,975) (21,775,657) 23,883,843 (33,887,555) Transfers for policy loans 932,267 (1,830) 139,518 (37,345) 5,455 Adjustments to net assets allocated to contracts in payment period (956,748) (1,202) (88,195) (25,526) (42,372) Contract charges (1,333,784) (12,148) (136,650) (771,044) (147,578) Contract terminations: Surrender benefits (100,738,536) (1,296,926) (17,971,010) (10,642,279) (14,194,131) Death benefits (8,858,053) (70,507) (1,304,105) (1,810,593) (2,049,452) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (215,417,689) (4,972,602) (37,214,476) 61,938,557 (43,128,158) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,044,144,177 20,660,664 190,564,075 329,463,858 265,351,346 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 447,980,819 $ 8,932,103 $ 78,655,128 $ 227,281,619 $133,680,443 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 908,740,844 15,712,105 151,417,748 243,623,712 248,359,813 Contract purchase payments 20,110,295 598,569 3,930,990 52,641,750 7,744,957 Net transfers(1) (142,300,032) (3,711,048) (20,807,744) 31,631,997 (37,738,039) Transfers for policy loans 881,036 (58) 167,900 (30,476) 12,435 Contract charges (1,485,808) (11,236) (138,644) (770,796) (166,219) Contract terminations: Surrender benefits (90,707,110) (1,067,225) (18,835,898) (9,615,724) (15,541,389) Death benefits (9,758,229) (67,383) (1,361,150) (1,672,476) (2,360,094) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 685,480,996 11,453,724 114,373,202 315,807,987 200,311,464 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 44 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- RVS VP SEL VP THDL THDL THIRD SHORT SM CAP VP VP AVE YEAR ENDED DEC. 31, 2008 (CONTINUED) DURATION VAL EMER MKTS INTL OPP VAL OPERATIONS Investment income (loss) -- net $ (2,672,225) $ (721,334) $ (1,285,583) $ 3,413,289 $ (60,330) Net realized gain (loss) on sales of investments (1,293,058) (11,352,210) (837,475) 6,452,882 3,063,792 Distributions from capital gains -- 11,015,847 103,706,010 -- 15,950,216 Net change in unrealized appreciation or depreciation of investments (9,457,807) (38,652,357) (505,111,892) (138,759,111) (72,084,315) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (13,423,090) (39,710,054) (403,528,940) (128,892,940) (53,130,637) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 19,669,255 2,407,471 115,546,695 6,528,218 1,723,739 Net transfers(1) 50,214,527 (26,253,204) 139,406,078 (43,126,658) (32,159,394) Transfers for policy loans (48,830) 22,219 (82,961) 153,870 31,505 Adjustments to net assets allocated to contracts in payment period (96,267) (27,746) 4,516 (155,950) (11,469) Contract charges (229,204) (68,198) (1,941,691) (193,288) (34,908) Contract terminations: Surrender benefits (25,823,578) (6,354,400) (22,819,210) (45,856,351) (7,800,003) Death benefits (4,439,841) (1,027,183) (3,445,805) (2,586,422) (1,001,720) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 39,246,062 (31,301,041) 226,667,622 (85,236,581) (39,252,250) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 346,116,295 122,452,481 695,489,361 370,714,786 148,093,084 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $371,939,267 $ 51,441,386 $ 518,628,043 $ 156,585,265 $ 55,710,197 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 272,625,569 74,284,903 289,591,162 255,423,903 47,482,472 Contract purchase payments 17,456,091 1,958,478 82,837,438 5,562,026 676,583 Net transfers(1) 41,444,935 (19,209,461) 148,555,834 (40,743,875) (12,750,016) Transfers for policy loans (41,801) 17,463 (37,966) 120,746 14,146 Contract charges (183,827) (51,915) (1,279,766) (165,213) (14,167) Contract terminations: Surrender benefits (20,811,166) (4,683,104) (11,647,189) (33,784,319) (3,072,269) Death benefits (3,541,872) (763,275) (1,991,383) (2,267,055) (405,256) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 306,947,929 51,553,089 506,028,130 184,146,213 31,931,493 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 45 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP WANGER WANGER YEAR ENDED DEC. 31, 2008 (CONTINUED) CL II EST, CL II GRO, CL II INTL USA OPERATIONS Investment income (loss) -- net $ 9,934,129 $ 4,131,019 $ (61,992) $ 651,497 $ (6,967,912) Net realized gain (loss) on sales of investments (11,221,313) (2,941,501) (6,013,729) 12,249,365 (135,244) Distributions from capital gains 42,465,434 14,718,198 13,822,746 112,265,598 98,763,493 Net change in unrealized appreciation or depreciation of investments (395,413,857) (153,850,021) (35,740,924) (562,372,647) (458,879,494) ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (354,235,607) (137,942,305) (27,993,899) (437,206,187) (367,219,157) ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 162,120,678 55,717,716 3,905,006 76,078,521 81,011,616 Net transfers(1) 41,775,800 128,949,497 8,415,092 (18,512,205) (91,922,121) Transfers for policy loans (38,530) (12,997) (15,789) (86,271) 9,793 Adjustments to net assets allocated to contracts in payment period 12,669 (3,217) 12,157 120,303 (7,159) Contract charges (3,112,560) (854,197) (33,285) (1,399,138) (1,513,214) Contract terminations: Surrender benefits (30,359,657) (6,988,921) (2,348,267) (38,265,890) (38,964,384) Death benefits (4,920,727) (1,243,813) (314,304) (4,782,318) (4,951,058) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 165,477,673 175,564,068 9,620,610 13,153,002 (56,336,527) ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 869,865,179 203,382,069 47,492,816 970,136,740 973,831,286 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 681,107,245 $ 241,003,832 $ 29,119,527 $ 546,083,555 $ 550,275,602 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 706,657,539 179,033,512 38,592,716 416,769,930 565,036,815 Contract purchase payments 174,658,508 61,098,888 3,580,633 63,518,362 80,202,840 Net transfers(1) 45,994,255 152,920,756 5,565,769 28,905,438 (41,755,516) Transfers for policy loans (38,827) (15,995) (13,416) (35,954) 2,514 Contract charges (3,167,034) (990,995) (34,522) (977,645) (1,270,366) Contract terminations: Surrender benefits (28,910,108) (7,932,739) (2,455,285) (19,311,839) (26,081,981) Death benefits (4,882,721) (1,398,187) (316,231) (2,747,142) (3,552,079) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 890,311,612 382,715,240 44,919,664 486,121,150 572,582,227 ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 46 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------- WF ADV WF ADV WF ADV WF ADV VT ASSET VT INTL VT VT YEAR ENDED DEC. 31, 2008 (CONTINUED) ALLOC CORE OPP SM CAP GRO OPERATIONS Investment income (loss) -- net $ 1,135,226 $ 154,170 $ 666,791 $ (684,366) Net realized gain (loss) on sales of investments (1,689,602) (480,814) (3,064,442) (5,649,931) Distributions from capital gains 5,981,215 2,835,003 14,416,944 21,965,577 Net change in unrealized appreciation or depreciation of investments (30,721,309) (9,918,833) (41,233,853) (55,428,219) ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations (25,294,470) (7,410,474) (29,214,560) (39,796,939) ------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 1,206,884 205,812 2,112,338 4,174,718 Net transfers(1) (19,898,897) (3,910,562) (15,745,317) (10,394,214) Transfers for policy loans 13,341 (3,248) (17,912) (3,560) Adjustments to net assets allocated to contracts in payment period (20,924) (4,193) (6,003) (1,541) Contract charges (54,687) (10,287) (52,763) (53,040) Contract terminations: Surrender benefits (5,566,230) (796,937) (3,805,759) (3,734,895) Death benefits (1,111,202) (142,054) (496,130) (506,117) ------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (25,431,715) (4,661,469) (18,011,546) (10,518,649) ------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 98,668,714 19,885,705 85,505,254 100,983,953 ------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 47,942,529 $ 7,813,762 $ 38,279,148 $ 50,668,365 ------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 72,214,012 13,828,315 60,059,822 75,618,973 Contract purchase payments 1,017,946 175,616 1,820,547 3,879,797 Net transfers(1) (17,670,224) (3,537,792) (12,826,501) (10,058,185) Transfers for policy loans 13,619 (2,297) (14,360) (5,138) Contract charges (46,514) (8,796) (43,434) (50,239) Contract terminations: Surrender benefits (4,676,335) (661,997) (3,049,892) (3,481,146) Death benefits (983,444) (113,422) (432,284) (501,463) ------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 49,869,060 9,679,627 45,513,898 65,402,599 ------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other subaccounts and transfers from (to) RiverSource Life's fixed account. (2) For the period May 1, 2008 (commencement of operations) to Dec. 31, 2008. See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 47 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2007 SER I SER II SER I SER II SER I OPERATIONS Investment income (loss) -- net $ (594,952) $ (1,898,599) $ (457,066) $ (688,192) $ (1,153,170) Net realized gain (loss) on sales of investments (2,096,370) 9,822,851 4,010,377 4,182,135 40,079,024 Distributions from capital gains -- -- 3,895,530 6,260,565 -- Net change in unrealized appreciation or depreciation of investments 10,179,768 14,833,321 (2,205,829) (2,956,650) (13,731,842) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 7,488,446 22,757,573 5,243,012 6,797,858 25,194,012 ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,555,650 9,745,494 811,347 7,448,612 5,641,816 Net transfers(1) (13,448,112) (38,456,740) (6,507,480) (2,680,157) (13,020,713) Transfers for policy loans 10,585 (17,705) 10,887 (42,418) 491,079 Adjustments to net assets allocated to contracts in payment period (10,629) (2,361) (10,687) (4,037) (225,139) Contract charges (28,813) (682,581) (17,136) (53,128) (238,071) Contract terminations: Surrender benefits (4,549,152) (9,398,226) (3,764,246) (3,965,775) (137,570,437) Death benefits (709,725) (1,068,092) (443,097) (466,526) (3,699,508) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (17,180,196) (39,880,211) (9,920,412) 236,571 (148,620,973) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 74,671,394 223,711,953 53,160,351 69,831,722 396,958,020 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 64,979,644 $206,589,315 $48,482,951 $76,866,151 $ 273,531,059 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 72,809,092 198,365,517 28,272,232 48,025,875 199,590,592 Contract purchase payments 1,418,538 8,170,620 393,196 5,782,848 2,712,527 Net transfers(1) (12,404,737) (31,814,485) (3,131,789) (1,387,872) (6,305,193) Transfers for policy loans 10,955 (14,512) 5,413 (27,940) 238,748 Contract charges (26,394) (559,314) (8,349) (33,541) (114,180) Contract terminations: Surrender benefits (4,141,327) (7,708,565) (1,835,352) (2,454,496) (65,842,041) Death benefits (648,157) (893,491) (217,727) (297,564) (1,810,354) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 57,017,970 165,545,770 23,477,624 49,607,310 128,470,099 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 48 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, YEAR ENDED DEC. 31, 2007 (CONTINUED) SER I SER I SER II CARE, SER II SER II OPERATIONS Investment income (loss) -- net $ (136,754) $ 164,280 $ 34,322 $ (673,480) $ (109,815) Net realized gain (loss) on sales of investments 1,408,822 1,540,058 (24,498) 10,642,604 54,483 Distributions from capital gains -- 1,475,154 238,746 -- -- Net change in unrealized appreciation or depreciation of investments 478,894 (8,800,955) (1,008,489) (2,389,015) (2,137,277) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,750,962 (5,621,463) (759,919) 7,580,109 (2,192,609) ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 351,354 735,360 2,360,754 37,133,985 97,199,022 Net transfers(1) (1,370,460) (5,356,452) 19,679 (116,132,891) 244,069,379 Transfers for policy loans (6,276) 1,332 (3,115) (18,944) (41,256) Adjustments to net assets allocated to contracts in payment period (2,204) (1,175) -- -- (175) Contract charges (12,917) (21,406) (1,037) (256,233) (486,884) Contract terminations: Surrender benefits (1,097,093) (1,928,192) (124,173) (1,216,958) (2,457,616) Death benefits (122,892) (178,441) (7,493) (270,330) (731,625) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (2,260,488) (6,748,974) 2,244,615 (80,761,371) 337,550,845 ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 15,850,156 30,101,536 1,595,993 91,681,734 7,022,690 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $15,340,630 $17,731,099 $ 3,080,689 $ 18,500,472 $342,380,926 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 12,476,898 21,798,120 1,364,020 87,789,464 5,225,792 Contract purchase payments 254,043 559,479 2,071,188 33,132,878 69,794,306 Net transfers(1) (980,604) (4,099,008) 114,121 (103,246,799) 161,555,158 Transfers for policy loans (4,502) 545 (2,690) (16,705) (29,221) Contract charges (9,315) (16,333) (997) (237,453) (333,749) Contract terminations: Surrender benefits (781,791) (1,449,971) (111,551) (1,111,611) (1,647,066) Death benefits (90,526) (136,272) (7,046) (244,289) (500,903) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 10,864,203 16,656,560 3,427,045 16,065,485 234,064,317 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 49 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, YEAR ENDED DEC. 31, 2007 (CONTINUED) SER I CL B CL B CL B CL B OPERATIONS Investment income (loss) -- net $ (294,133) $ (293,329) $ 1,140,337 $ 1,312,239 $ (17,934) Net realized gain (loss) on sales of investments 1,834,686 8,571,704 11,646,665 15,620,336 15,944 Distributions from capital gains -- -- 16,498,882 48,347,518 -- Net change in unrealized appreciation or depreciation of investments 906,081 (701,638) (16,092,757) (23,186,794) 213,019 ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 2,446,634 7,576,737 13,193,127 42,093,299 211,029 ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,077,715 14,879,292 19,119,413 257,161,881 1,442,238 Net transfers(1) (4,908,364) (45,843,841) (34,758,854) 151,573,881 676,132 Transfers for policy loans (5,807) (10,401) (45,536) (320,435) (796) Adjustments to net assets allocated to contracts in payment period -- -- (32,048) (85,962) -- Contract charges (103,267) (110,180) (235,059) (1,809,039) (760) Contract terminations: Surrender benefits (1,895,560) (686,368) (19,445,689) (55,109,620) (29,495) Death benefits (190,381) (95,309) (2,312,868) (6,703,222) (14,632) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,025,664) (31,866,807) (37,710,641) 344,707,484 2,072,687 ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 35,223,143 38,748,334 333,791,224 1,057,186,926 729,910 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $31,644,113 $ 14,458,264 $309,273,710 $1,443,987,709 $3,013,626 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 43,390,634 33,897,263 255,691,383 453,281,566 666,672 Contract purchase payments 1,247,395 12,581,164 15,057,871 185,482,868 1,257,074 Net transfers(1) (5,565,707) (35,092,837) (25,457,040) 77,763,017 561,478 Transfers for policy loans (7,041) (8,060) (34,243) (169,683) (685) Contract charges (118,984) (92,612) (173,825) (844,860) (621) Contract terminations: Surrender benefits (2,197,857) (555,732) (14,154,877) (21,708,416) (25,266) Death benefits (228,543) (78,802) (1,713,709) (2,954,331) (11,855) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 36,519,897 10,650,384 229,215,560 690,850,161 2,446,797 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 50 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, YEAR ENDED DEC. 31, 2007 (CONTINUED) CL I CL II CL II CL II CL I OPERATIONS Investment income (loss) -- net $ (118,612) $ (426,120) $ 341,278 $ (1,445,659) $ 3,412,557 Net realized gain (loss) on sales of investments 2,452,751 7,008,303 (14,517) 28,844,926 31,424,000 Distributions from capital gains -- -- 57,638 -- 48,692,959 Net change in unrealized appreciation or depreciation of investments 8,282,600 13,294,913 (28,848,480) 4,340,406 (106,252,864) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 10,616,739 19,877,096 (28,464,081) 31,739,673 (22,723,348) ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,074,847 3,263,758 83,308,165 75,856,497 8,291,357 Net transfers(1) (4,776,373) (4,431,098) 211,888,708 (270,229,661) (28,649,567) Transfers for policy loans 11,469 (33,420) (37,769) (23,476) 284,116 Adjustments to net assets allocated to contracts in payment period (116,327) (14,111) (2,052) -- (263,010) Contract charges (18,342) (97,296) (397,843) (558,253) (223,224) Contract terminations: Surrender benefits (4,441,667) (8,124,207) (1,865,454) (2,967,686) (188,068,507) Death benefits (610,000) (912,572) (652,090) (725,595) (5,201,804) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (8,876,393) (10,348,946) 292,241,665 (198,648,174) (213,830,639) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 66,174,158 123,391,731 3,176,150 203,884,825 627,151,221 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $67,914,504 $132,919,881 $266,953,734 $ 36,976,324 $ 390,597,234 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 51,286,353 84,428,917 2,742,969 202,330,807 258,017,796 Contract purchase payments 763,932 2,038,518 69,227,194 71,553,378 3,455,826 Net transfers(1) (3,433,643) (2,972,564) 189,104,478 (239,031,959) (12,989,231) Transfers for policy loans 8,321 (21,085) (30,858) (21,164) 100,915 Contract charges (13,090) (60,974) (367,001) (536,818) (87,798) Contract terminations: Surrender benefits (3,134,166) (4,912,901) (1,762,128) (2,765,655) (69,095,168) Death benefits (438,017) (581,450) (603,370) (674,237) (2,079,431) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 45,039,690 77,918,461 258,311,284 30,854,352 177,322,909 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 51 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AC VP CALVERT COL COL COL VAL, VS SOCIAL HI YIELD, MARSICO GRO, MARSICO INTL YEAR ENDED DEC. 31, 2007 (CONTINUED) CL II BAL VS CL B VS CL A OPP, VS CL B OPERATIONS Investment income (loss) -- net $ 2,455,843 $ 753,250 $ 5,220,000 $ (5,273,587) $ (1,187,331) Net realized gain (loss) on sales of investments 4,375,879 1,271,766 366,997 4,689,469 22,356,771 Distributions from capital gains 36,100,295 2,784,426 -- -- 9,957,866 Net change in unrealized appreciation or depreciation of investments (68,283,955) (3,765,859) (4,811,226) 93,040,509 (760,292) ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations (25,351,938) 1,043,583 775,771 92,456,391 30,367,014 ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 32,680,586 1,812,022 16,044,941 323,221,073 61,020,145 Net transfers(1) (37,836,037) (5,526,840) (9,871,038) 216,285,064 (149,406,976) Transfers for policy loans (122,174) (10,898) (21,238) (155,684) (33,941) Adjustments to net assets allocated to contracts in payment period (46,942) (11,773) (2,823) (15,304) (2,551) Contract charges (328,079) (40,678) (166,893) (1,820,989) (374,708) Contract terminations: Surrender benefits (25,077,851) (3,644,157) (5,485,049) (14,057,933) (5,460,017) Death benefits (3,883,507) (328,308) (975,664) (3,002,895) (623,466) ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (34,614,004) (7,750,632) (477,764) 520,453,332 (94,881,514) ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 437,608,479 56,141,864 114,551,839 331,754,197 169,997,945 ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $377,642,537 $49,434,815 $114,849,846 $944,663,920 $ 105,483,445 ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 279,304,114 49,740,729 106,859,135 317,945,827 153,626,994 Contract purchase payments 25,185,249 1,558,196 14,657,055 273,887,628 49,812,581 Net transfers(1) (23,958,638) (4,827,934) (9,292,183) 190,775,561 (117,006,196) Transfers for policy loans (75,793) (7,134) (19,522) (134,244) (28,271) Contract charges (206,215) (35,188) (153,666) (1,574,917) (332,939) Contract terminations: Surrender benefits (15,751,801) (3,106,179) (5,056,711) (12,323,275) (4,631,995) Death benefits (2,476,585) (284,129) (901,072) (2,563,904) (517,051) ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 262,020,331 43,038,361 106,093,036 766,012,676 80,923,123 ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 52 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY U.S. EQ U.S. EQ INTL EQ, INTL VAL, YEAR ENDED DEC. 31, 2007 (CONTINUED) RETURN FLEX III FLEX I SERV SERV OPERATIONS Investment income (loss) -- net $ 3,828,698 $ (205,288) $ (2,078,712) $ 2,630 $ (131) Net realized gain (loss) on sales of investments 5,552,001 583,642 1,118,559 67,091 2,051 Distributions from capital gains -- -- -- -- 237,522 Net change in unrealized appreciation or depreciation of investments 6,400,670 2,153,018 728,447 677,532 (209,561) ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 15,781,369 2,531,372 (231,706) 747,253 29,881 ----------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 52,135,888 495,110 3,219,727 4,107,651 1,940,637 Net transfers(1) (148,861,631) (4,473,615) (15,777,760) 476,347 237,487 Transfers for policy loans (31,704) 5,782 233,837 (1,334) (96) Adjustments to net assets allocated to contracts in payment period (1,815) (4,359) (71,269) -- -- Contract charges (352,746) (11,065) (97,749) (2,021) (1,216) Contract terminations: Surrender benefits (3,079,613) (1,696,362) (72,755,733) (109,674) (64,475) Death benefits (427,888) (185,876) (1,676,767) (35,546) (1,648) ----------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (100,619,509) (5,870,385) (86,925,714) 4,435,423 2,110,689 ----------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 137,217,868 25,342,871 208,261,570 1,844,513 1,351,009 ----------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 52,379,728 $22,003,858 $121,104,150 $7,027,189 $3,491,579 ----------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 139,242,701 19,842,603 148,637,832 1,559,767 1,166,615 Contract purchase payments 50,401,246 358,631 2,249,888 3,305,740 1,625,493 Net transfers(1) (139,924,665) (3,281,598) (11,023,565) 389,962 195,408 Transfers for policy loans (29,765) 4,295 171,993 (1,000) (123) Contract charges (350,170) (8,061) (68,362) (1,531) (1,007) Contract terminations: Surrender benefits (2,992,730) (1,223,317) (50,691,145) (84,441) (53,558) Death benefits (417,034) (134,939) (1,192,642) (28,762) (1,396) ----------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 45,929,583 15,557,614 88,083,999 5,139,735 2,931,432 -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 53 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING- FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, YEAR ENDED DEC. 31, 2007 (CONTINUED) RATE INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL OPERATIONS Investment income (loss) -- net $ 23,179,288 $ 314 $ 1,018,700 $ (244,681) $ 1,658,953 Net realized gain (loss) on sales of investments (1,642,504) 1,472,241 3,047,877 16,093,758 4,647,395 Distributions from capital gains -- 2,647,443 5,942,492 299,188,380 8,563,309 Net change in unrealized appreciation or depreciation of investments (20,258,229) (1,943,760) (332,182) (165,281,986) 6,664,383 ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,278,555 2,176,238 9,676,887 149,755,471 21,534,040 ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 219,615,249 2,399,208 7,689,286 467,633,246 3,644,825 Net transfers(1) (25,197,341) (1,611,646) (5,610,122) 16,587,806 (21,083,009) Transfers for policy loans (40,572) 3,616 (14,947) (218,630) (38,865) Adjustments to net assets allocated to contracts in payment period (18,785) (5,575) (2,873) (39,983) (170,233) Contract charges (1,130,178) (23,067) (70,550) (2,689,864) (66,539) Contract terminations: Surrender benefits (12,688,856) (2,185,550) (3,235,204) (22,340,871) (14,906,018) Death benefits (2,593,767) (182,975) (651,718) (4,562,157) (1,709,997) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 177,945,750 (1,605,989) (1,896,128) 454,369,547 (34,329,836) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 306,684,071 32,620,279 71,677,408 654,611,294 209,031,284 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $485,908,376 $33,190,528 $79,458,167 $1,258,736,312 $196,235,488 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 298,230,334 28,846,070 45,619,068 622,501,286 182,343,013 Contract purchase payments 211,468,136 2,026,988 5,699,944 397,943,190 2,992,284 Net transfers(1) (24,426,595) (1,438,587) (2,967,782) 23,717,680 (17,370,272) Transfers for policy loans (39,005) 2,966 (9,526) (189,203) (31,188) Contract charges (1,085,312) (19,281) (41,778) (2,340,750) (54,538) Contract terminations: Surrender benefits (12,213,457) (1,802,486) (1,899,074) (19,485,086) (12,210,151) Death benefits (2,500,072) (152,180) (394,528) (3,897,793) (1,389,312) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 469,434,029 27,463,490 46,006,324 1,018,249,324 154,279,836 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 54 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, YEAR ENDED DEC. 31, 2007 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 OPERATIONS Investment income (loss) -- net $ 2,168,448 $ (550,714) $ (5,329,403) $ 2,353,987 $ 5,356,386 Net realized gain (loss) on sales of investments 16,319,781 28,085,619 32,687,948 4,381,644 11,738,400 Distributions from capital gains 17,309,613 38,697,484 117,020,831 7,015,972 17,205,058 Net change in unrealized appreciation or depreciation of investments 6,576,299 (10,084,426) 29,464,027 1,847,817 4,259,131 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 42,374,141 56,147,963 173,843,403 15,599,420 38,558,975 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 10,032,755 6,615,148 218,118,455 1,613,232 17,842,196 Net transfers(1) (49,054,737) (49,477,279) (64,783,266) (8,092,209) (15,529,794) Transfers for policy loans (96,876) (47,397) (321,122) (35,934) (67,347) Adjustments to net assets allocated to contracts in payment period (76,771) 15,639 (85,823) (28,078) (39,114) Contract charges (317,749) (122,344) (1,804,323) (27,253) (192,245) Contract terminations: Surrender benefits (26,852,829) (28,493,115) (66,103,807) (7,460,902) (14,755,246) Death benefits (2,732,546) (2,658,816) (7,780,135) (987,194) (1,516,912) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (69,098,753) (74,168,164) 77,239,979 (15,018,338) (14,258,462) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 417,155,182 413,295,617 1,208,846,882 102,498,316 248,078,487 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $390,430,570 $395,275,416 $1,459,930,264 $103,079,398 $272,379,000 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 329,941,813 131,593,810 624,914,428 76,349,456 151,362,060 Contract purchase payments 7,472,160 1,930,525 170,249,933 1,108,461 12,895,479 Net transfers(1) (36,806,779) (14,573,394) (20,429,167) (5,601,528) (8,145,928) Transfers for policy loans (73,105) (13,208) (176,909) (24,996) (41,215) Contract charges (236,106) (35,815) (943,220) (18,667) (107,986) Contract terminations: Surrender benefits (19,780,765) (8,271,564) (30,825,699) (5,091,040) (8,100,797) Death benefits (2,051,838) (780,913) (3,850,785) (666,260) (864,578) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 278,465,380 109,849,441 738,938,581 66,055,426 146,997,035 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 55 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR YEAR ENDED DEC. 31, 2007 (CONTINUED) REAL EST, CL 2 VAL, CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 OPERATIONS Investment income (loss) -- net $ 10,415,731 $ (835,173) $ 1,983,843 $ 2,850,098 $ 573,356 Net realized gain (loss) on sales of investments 31,744,256 18,063,774 5,002,427 50,486,641 3,694,249 Distributions from capital gains 46,760,526 25,801,301 12,891,012 17,011,914 2,306,102 Net change in unrealized appreciation or depreciation of investments (237,003,468) (53,272,213) (13,121,360) (17,251,556) 242,811 ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations (148,082,955) (10,242,311) 6,755,922 53,097,097 6,816,518 ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 37,161,931 25,176,885 46,597,131 2,870,542 749,904 Net transfers(1) (160,396,780) (43,204,319) 25,861,096 (10,615,358) (6,388,725) Transfers for policy loans (151,684) (6,738) (42,326) 161,161 (6,851) Adjustments to net assets allocated to contracts in payment period (83,587) (28,368) (66,147) (317,592) (16,748) Contract charges (444,881) (233,952) (238,053) (111,437) (12,619) Contract terminations: Surrender benefits (40,079,116) (20,726,840) (17,978,439) (97,723,802) (3,279,145) Death benefits (5,122,737) (2,368,968) (2,532,153) (1,986,204) (238,151) ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (169,116,854) (41,392,300) 51,601,109 (107,722,690) (9,192,335) ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 773,536,215 380,878,128 309,114,173 252,257,533 51,831,219 ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 456,336,406 $329,243,517 $367,471,204 $ 197,631,940 $49,455,402 ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 257,420,723 166,830,224 207,209,310 179,402,572 30,344,425 Contract purchase payments 24,378,587 18,354,586 37,080,758 1,843,724 413,508 Net transfers(1) (60,265,326) (17,629,892) 17,748,332 (6,883,607) (3,522,369) Transfers for policy loans (63,965) (7,293) (30,870) 107,084 (3,538) Contract charges (161,793) (100,216) (152,990) (71,438) (6,931) Contract terminations: Surrender benefits (14,815,846) (9,009,685) (11,328,002) (62,783,345) (1,791,663) Death benefits (1,832,717) (1,009,158) (1,659,759) (1,364,325) (129,256) ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 204,659,663 157,428,566 248,866,779 110,250,665 25,304,176 ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 56 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM CAP STRUCTD U.S. GLOBAL OVERSEAS, YEAR ENDED DEC. 31, 2007 (CONTINUED) VAL, INST EQ, INST EQ, INST TECH, SERV SERV OPERATIONS Investment income (loss) -- net $ (1,294,578) $ (167,391) $ 396,182 $ (125,285) $ (913,350) Net realized gain (loss) on sales of investments 20,622,650 1,586,367 20,787,568 (1,056,707) 6,857,088 Distributions from capital gains 108,541,040 2,490,792 32,997,051 -- -- Net change in unrealized appreciation or depreciation of investments (106,244,792) (9,106,570) (63,764,197) 5,717,960 46,108,818 ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 21,624,320 (5,196,802) (9,583,396) 4,535,968 52,052,556 ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 19,785,963 475,528 25,532,105 715,950 3,640,650 Net transfers(1) (96,913,865) (7,600,007) (89,881,606) (1,117,889) 19,130,166 Transfers for policy loans (242,317) 497 (67,231) (5,684) (83,299) Adjustments to net assets allocated to contracts in payment period (79,953) (4,151) (56,763) (855) (26,076) Contract charges (697,942) (9,906) (707,863) (16,939) (100,900) Contract terminations: Surrender benefits (46,502,361) (2,280,442) (25,281,758) (1,602,360) (13,042,410) Death benefits (5,508,279) (273,454) (3,673,833) (194,806) (1,298,052) ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (130,158,754) (9,691,935) (94,136,949) (2,222,583) 8,220,079 ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 835,017,910 37,272,147 524,190,859 23,643,711 192,641,557 ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 726,483,476 $22,383,410 $420,470,514 $25,957,096 $252,914,192 ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 327,755,194 19,071,743 445,093,220 54,174,360 142,097,812 Contract purchase payments 7,583,395 254,027 21,654,426 1,488,571 2,369,349 Net transfers(1) (36,577,913) (4,127,116) (75,635,982) (2,853,435) 11,713,788 Transfers for policy loans (86,809) 851 (50,964) (7,601) (55,288) Contract charges (261,891) (5,321) (582,595) (33,684) (64,847) Contract terminations: Surrender benefits (18,110,101) (1,219,622) (20,652,593) (3,186,673) (8,089,522) Death benefits (2,078,442) (144,343) (3,100,020) (412,649) (841,160) ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 278,223,433 13,830,219 366,725,492 49,168,889 147,130,132 ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 57 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LAZARD LM PTNRS VAR MFS INV JANUS, ENTERPRISE, RETIRE INTL SM CAP GRO, GRO STOCK, PERIOD ENDED DEC. 31, 2007 (CONTINUED) SERV (2) SERV EQ, SERV CL I(3) SERV CL OPERATIONS Investment income (loss) -- net $ (872,741) $ (246,232) $ 2,968,892 $ (21,417) $ (1,009,164) Net realized gain (loss) on sales of investments 223,234 (134,653) 12,739,838 (1,142) 3,522,841 Distributions from capital gains -- 172,741 32,111,690 271,444 -- Net change in unrealized appreciation or depreciation of investments 16,710,828 6,139,996 (29,599,826) (199,287) 9,995,615 ---------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 16,061,321 5,931,852 18,220,594 49,598 12,509,292 ---------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 222,372,127 812,592 3,768,454 554,669 4,613,275 Net transfers(1) 561,334,075 (1,757,656) (31,931,769) 3,468,770 (23,713,182) Transfers for policy loans (69,657) (9,310) (36,521) (1,071) (15,582) Adjustments to net assets allocated to contracts in payment period -- (2,534) (52,304) -- (117,342) Contract charges (1,224,152) (18,829) (114,320) (2,378) (84,342) Contract terminations: Surrender benefits (4,876,858) (1,764,583) (12,262,268) (48,963) (8,317,842) Death benefits (1,731,354) (270,893) (1,316,375) -- (969,709) ---------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 775,804,181 (3,011,213) (41,945,103) 3,971,027 (28,604,724) ---------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- 30,258,127 207,521,839 -- 136,819,006 ---------------------------------------------------------------------------------------------------------------------- Net assets at end of year $791,865,502 $33,178,766 $183,797,330 $4,020,625 $120,723,574 ---------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- 50,493,115 162,152,756 -- 187,890,017 Contract purchase payments 215,063,494 1,209,218 2,744,079 545,934 5,294,270 Net transfers(1) 540,413,694 (2,841,619) (24,068,024) 3,456,850 (30,931,822) Transfers for policy loans (67,510) (13,267) (26,378) (1,026) (20,895) Contract charges (1,176,537) (27,894) (84,640) (2,335) (108,675) Contract terminations: Surrender benefits (4,671,431) (2,639,239) (8,710,187) (48,525) (10,272,011) Death benefits (1,668,630) (413,263) (1,006,415) -- (1,290,903) ---------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 747,893,080 45,767,051 131,001,191 3,950,898 150,559,981 ----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 58 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, YEAR ENDED DEC. 31, 2007 (CONTINUED) SERV CL SERV CL SERV CL CL S CL S OPERATIONS Investment income (loss) -- net $ (816,971) $ 1,595,282 $ (423,922) $ 2,927,174 $ (13,739) Net realized gain (loss) on sales of investments 3,781,465 782,025 6,009,398 2,544,036 24,548 Distributions from capital gains 6,963,838 2,799,310 21,330,336 18,145,524 6,423 Net change in unrealized appreciation or depreciation of investments (7,742,537) (2,036,457) 46,134,971 (23,905,479) 30,099 ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 2,185,795 3,140,160 73,050,783 (288,745) 47,331 ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 2,398,138 18,974,234 38,073,314 144,906,858 1,450,575 Net transfers(1) (14,460,199) (630,858) 44,080,263 14,362,129 103,945 Transfers for policy loans (15,100) (6,097) (148,474) (54,210) (6,478) Adjustments to net assets allocated to contracts in payment period (9,306) (11,741) (22,176) (3,408) -- Contract charges (67,593) (92,954) (209,179) (873,742) (552) Contract terminations: Surrender benefits (6,161,920) (4,965,179) (17,522,799) (3,963,004) (15,920) Death benefits (683,513) (842,056) (2,118,050) (1,143,088) -- ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (18,999,493) 12,425,349 62,132,899 153,231,535 1,531,570 ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 98,902,083 106,831,274 254,044,011 160,105,820 530,351 ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 82,088,385 $122,396,783 $389,227,693 $313,048,610 $2,109,252 ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 98,385,704 87,236,603 142,815,798 147,410,563 465,988 Contract purchase payments 2,219,884 16,228,221 25,039,260 118,168,399 1,207,721 Net transfers(1) (13,562,486) (195,437) 22,818,350 12,916,009 89,446 Transfers for policy loans (14,282) (4,716) (78,591) (44,729) (5,200) Contract charges (63,282) (73,329) (102,835) (762,057) (454) Contract terminations: Surrender benefits (5,641,774) (3,936,343) (8,173,901) (3,467,170) (13,284) Death benefits (650,641) (667,566) (1,059,389) (975,581) -- ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 80,673,123 98,587,433 181,258,692 273,245,434 1,744,217 ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 59 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- OPPEN OPPEN OPPEN OPPEN PIMCO GLOBAL SEC MAIN ST SM CAP STRATEGIC BOND VAL VA, VIT ALL ASSET, YEAR ENDED DEC. 31, 2007 (CONTINUED) VA, SERV VA, SERV VA, SERV SERV ADVISOR CL OPERATIONS Investment income (loss) -- net $ 483,272 $ (944,450) $ 23,350,781 $ (11,415) $ 49,976,170 Net realized gain (loss) on sales of investments 4,033,703 1,743,514 764,754 (10,238) 1,683,534 Distributions from capital gains 8,978,114 4,196,479 -- 205,060 -- Net change in unrealized appreciation or depreciation of investments (4,242,025) (8,514,848) 101,680,367 (442,794) (3,095,183) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 9,253,064 (3,519,305) 125,795,902 (259,387) 48,564,521 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 18,341,173 16,939,733 508,101,097 4,460,090 412,712,457 Net transfers(1) (10,981,688) 2,109,060 624,869,745 1,155,046 (48,873,968) Transfers for policy loans (51,422) (44,762) (268,583) (5,733) (125,195) Adjustments to net assets allocated to contracts in payment period (17,495) (8,531) (105,328) -- (9,828) Contract charges (123,363) (81,987) (2,875,269) (302) (2,465,268) Contract terminations: Surrender benefits (9,609,662) (6,338,756) (49,908,743) (22,236) (11,246,758) Death benefits (1,583,530) (731,559) (10,606,104) -- (3,538,653) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (4,025,987) 11,843,198 1,069,206,815 5,586,865 346,452,787 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 176,343,816 113,491,895 936,135,727 395,618 460,232,672 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $181,570,893 $121,815,788 $2,131,138,444 $5,723,096 $855,249,980 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 117,611,822 81,385,064 820,584,798 369,750 437,681,840 Contract purchase payments 13,911,165 13,955,931 450,266,644 3,807,145 375,366,089 Net transfers(1) (6,714,206) 1,465,921 528,315,251 963,920 (43,048,486) Transfers for policy loans (34,144) (32,635) (234,910) (5,154) (113,411) Contract charges (78,340) (56,371) (2,438,151) (255) (2,262,829) Contract terminations: Surrender benefits (6,049,961) (4,302,203) (41,770,209) (19,125) (10,298,315) Death benefits (1,019,517) (504,974) (8,955,659) -- (3,228,839) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 117,626,819 91,910,733 1,745,767,764 5,116,281 754,096,049 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 60 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, GLOBAL HLTH INTL EQ, INTL NEW YEAR ENDED DEC. 31, 2007 (CONTINUED) CL II CL II CARE, CL IB CL IB OPP, CL IB OPERATIONS Investment income (loss) -- net $ 997,687 $ (45,332) $ (12,290) $ 2,076,894 $ 23,923 Net realized gain (loss) on sales of investments 3,279,848 150,330 2,063,612 8,287,566 2,534,724 Distributions from capital gains 2,272,719 97,257 -- 12,826,457 -- Net change in unrealized appreciation or depreciation of investments (6,605,884) 792,166 (2,314,359) (15,429,145) 8,651,239 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (55,630) 994,421 (263,037) 7,761,772 11,209,886 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,167,042 89,823 1,412,436 1,999,730 1,892,906 Net transfers(1) (2,412,948) (1,107,037) (10,177,231) (11,080,575) (10,772,589) Transfers for policy loans (12,298) 2,811 583 (44,374) (36,857) Adjustments to net assets allocated to contracts in payment period (9,398) -- (3,695) (3,972) (13,023) Contract charges (40,445) (5,988) (41,313) (68,991) (48,161) Contract terminations: Surrender benefits (5,023,687) (529,168) (3,007,085) (6,009,199) (6,761,720) Death benefits (371,839) (47,516) (253,437) (499,843) (833,744) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,703,573) (1,597,075) (12,069,742) (15,707,224) (16,573,188) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 69,591,303 8,667,592 51,796,300 102,619,519 94,462,845 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $62,832,100 $ 8,064,938 $ 39,463,521 $ 94,674,067 $ 89,099,543 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 48,064,180 8,607,906 46,519,197 62,625,712 77,661,235 Contract purchase payments 773,396 82,625 1,226,423 1,134,721 1,424,087 Net transfers(1) (1,653,356) (1,022,015) (8,911,170) (6,271,356) (8,053,396) Transfers for policy loans (8,530) 2,645 499 (25,470) (27,384) Contract charges (26,998) (5,539) (36,081) (39,444) (36,312) Contract terminations: Surrender benefits (3,306,470) (490,678) (2,614,557) (3,369,391) (5,031,720) Death benefits (248,447) (41,375) (222,065) (284,441) (620,289) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 43,593,775 7,133,569 35,962,246 53,770,331 65,316,221 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 61 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- PUT VT PUT VT ROYCE RVS PTNRS RVS PTNRS NEW OPP, VISTA, MICRO-CAP, VP FUNDAMENTAL VP SELECT YEAR ENDED DEC. 31, 2007 (CONTINUED) CL IA CL IB INVEST CL VAL VAL OPERATIONS Investment income (loss) -- net $ (2,038,892) $ (658,697) $ 626,246 $ 478,130 $ 56,264 Net realized gain (loss) on sales of investments (5,813,311) (3,347,681) 10,481,845 14,014,438 1,144,114 Distributions from capital gains -- -- 9,937,870 1,157,874 2,717,672 Net change in unrealized appreciation or depreciation of investments 18,027,177 6,764,206 (16,392,834) (45,015) (2,428,317) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 10,174,974 2,757,828 4,653,127 15,605,427 1,489,733 ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 4,060,835 2,347,972 2,195,536 307,805,205 2,295,325 Net transfers(1) (13,050,527) (16,339,376) (16,148,848) (75,923,739) (291,149) Transfers for policy loans 359,796 (31,159) (15,165) (93,482) (21,301) Adjustments to net assets allocated to contracts in payment period (116,379) (9,530) (17,718) (5,193) (2,258) Contract charges (168,369) (55,248) (32,641) (1,889,556) (24,299) Contract terminations: Surrender benefits (69,708,303) (5,291,792) (9,349,731) (8,099,090) (5,630,583) Death benefits (1,498,830) (596,258) (854,924) (2,470,198) (105,027) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (80,121,777) (19,975,391) (24,223,491) 219,323,947 (3,779,292) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 223,046,745 84,667,567 135,982,689 371,271,503 27,616,537 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $153,099,942 $ 67,450,004 $116,412,325 $606,200,877 $25,326,978 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 149,235,834 79,536,775 40,616,644 338,653,851 18,509,821 Contract purchase payments 2,614,012 2,104,093 628,233 268,318,192 1,821,092 Net transfers(1) (8,463,422) (14,717,618) (4,587,258) (62,427,902) (190,717) Transfers for policy loans 235,934 (27,756) (4,312) (81,630) (16,997) Contract charges (108,521) (49,817) (9,324) (1,667,880) (17,595) Contract terminations: Surrender benefits (44,854,451) (4,762,398) (2,664,434) (7,149,206) (1,173,726) Death benefits (980,071) (538,395) (245,996) (2,170,901) (76,700) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 97,679,315 61,544,884 33,733,553 533,474,524 18,855,178 -------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 62 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ RVS RVS RVS RVS RVS PTNRS VP VP VP VP VP YEAR ENDED DEC. 31, 2007 (CONTINUED) SM CAP VAL BAL CASH MGMT DIV BOND DIV EQ INC OPERATIONS Investment income (loss) -- net $ 25,232 $ 7,926,310 $ 34,358,762 $ 94,034,943 $ 17,555,548 Net realized gain (loss) on sales of investments 5,071,267 (7,574,360) (7,446) (1,945,448) 35,558,298 Distributions from capital gains 15,919,708 9,861,055 -- -- 31,748,234 Net change in unrealized appreciation or depreciation of investments (90,463,298) (5,918,974) (209,319) 18,113,255 75,691,754 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (69,447,091) 4,294,031 34,141,997 110,202,750 160,553,834 ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 228,819,923 15,798,997 410,371,982 940,882,549 521,748,445 Net transfers(1) 236,442,494 13,234,748 (50,046,622) 425,095,610 (34,403,827) Transfers for policy loans (158,343) 230,539 74,513 (136,970) (586,578) Adjustments to net assets allocated to contracts in payment period (72,408) (702,716) (326,067) (656,135) (430,306) Contract charges (1,766,695) (277,743) (456,300) (5,969,428) (3,601,695) Contract terminations: Surrender benefits (24,061,079) (95,214,075) (164,206,651) (146,432,928) (114,516,729) Death benefits (3,467,703) (8,265,344) (14,461,869) (21,557,648) (17,590,429) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 435,736,189 (75,195,594) 180,948,986 1,191,225,050 350,618,881 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 480,085,434 470,889,895 794,074,242 1,832,903,920 2,199,171,969 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $846,374,532 $399,988,332 $1,009,165,225 $3,134,331,720 $2,710,344,684 ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 271,780,693 308,698,503 701,788,024 1,441,352,057 1,286,388,061 Contract purchase payments 195,575,471 11,978,308 389,104,888 874,503,949 418,446,949 Net transfers(1) 166,947,700 9,687,695 (71,178,101) 343,882,749 (15,444,471) Transfers for policy loans (106,592) 109,128 59,038 (154,055) (368,381) Contract charges (1,141,827) (182,602) (395,087) (4,869,952) (2,158,608) Contract terminations: Surrender benefits (13,479,928) (53,014,265) (137,774,679) (107,446,718) (61,394,418) Death benefits (2,205,173) (5,378,922) (12,853,602) (16,969,282) (9,915,377) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 617,370,344 271,897,845 868,750,481 2,530,298,748 1,615,553,755 -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 63 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------- RVS VP RVS VP SEL RVS RVS GLOBAL GLOBAL INFLATION VP VP HI YIELD VP INC YEAR ENDED DEC. 31, 2007 (CONTINUED) BOND PROT SEC GRO BOND OPP OPERATIONS Investment income (loss) -- net $ 23,877,843 $ 7,894,164 $ 686,137 $ 56,190,057 $ 28,752,396 Net realized gain (loss) on sales of investments 2,239,794 (1,524,966) 2,863,175 (10,753,852) (1,008,762) Distributions from capital gains -- -- -- -- 1,029,658 Net change in unrealized appreciation or depreciation of investments 35,571,222 29,875,142 7,597,489 (36,391,923) (24,172,199) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 61,688,859 36,244,340 11,146,801 9,044,282 4,601,093 ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 303,778,804 242,088,105 20,320,578 42,735,508 256,091,266 Net transfers(1) 184,569,480 (94,681,432) (49,776,475) (74,598,933) (15,106,352) Transfers for policy loans (78,333) (68,166) (7,110) (8,479) (66,333) Adjustments to net assets allocated to contracts in payment period 94,272 (4,349) (108,342) (224,878) (6,009) Contract charges (1,940,464) (1,871,592) (368,458) (471,920) (1,604,988) Contract terminations: Surrender benefits (54,866,874) (11,679,638) (23,254,154) (110,064,769) (9,448,375) Death benefits (6,896,322) (3,565,663) (3,079,780) (8,777,500) (2,749,143) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 424,660,563 130,217,265 (56,273,741) (151,410,971) 227,110,066 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 646,998,811 439,332,477 449,154,340 905,545,644 345,709,604 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,133,348,233 $605,794,082 $404,027,400 $ 763,178,955 $577,420,763 ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 472,738,206 420,004,328 590,277,974 649,203,946 309,652,725 Contract purchase payments 278,616,914 231,258,949 21,784,829 35,636,225 234,566,479 Net transfers(1) 145,311,805 (91,440,320) (63,203,972) (53,805,563) (15,171,516) Transfers for policy loans (74,698) (64,798) (5,089) (14,247) (60,265) Contract charges (1,490,404) (1,759,723) (456,519) (334,940) (1,411,993) Contract terminations: Surrender benefits (37,283,785) (10,947,999) (27,948,300) (73,884,901) (8,288,325) Death benefits (5,095,663) (3,355,451) (3,959,755) (6,176,015) (2,450,977) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 852,722,375 543,694,986 516,489,168 550,624,505 516,836,128 -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 64 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- RVS SEL VP RVS VP RVS VP RVS VP LG CAP MID CAP MID CAP VP YEAR ENDED DEC. 31, 2007 (CONTINUED) DYN EQ VAL GRO VAL S&P 500 OPERATIONS Investment income (loss) -- net $ 3,473,337 $ 134,560 $ (1,965,645) $ (625,392) $ 2,103,647 Net realized gain (loss) on sales of investments 32,274,793 1,287,524 4,341,621 43,586,166 9,258,299 Distributions from capital gains 6,905,170 1,549,666 2,112,965 3,924,810 2,083,883 Net change in unrealized appreciation or depreciation of investments (12,221,817) (3,155,202) 21,247,085 4,876,358 (2,031,407) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 30,431,483 (183,452) 25,736,026 51,761,942 11,414,422 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 33,709,944 1,747,027 7,436,207 158,520,090 12,369,920 Net transfers(1) (117,306,711) 309,196 (24,281,050) (214,934,955) (13,116,114) Transfers for policy loans 806,234 (8,898) 157,742 (100,478) (13,508) Adjustments to net assets allocated to contracts in payment period (1,446,539) (1,667) (142,518) (4,487) (40,019) Contract charges (1,700,452) (17,033) (168,693) (961,803) (186,013) Contract terminations: Surrender benefits (216,087,675) (5,441,280) (38,292,948) (10,339,597) (19,497,570) Death benefits (11,475,556) (198,790) (1,888,831) (2,009,877) (2,222,916) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (313,500,755) (3,611,445) (57,180,091) (69,831,107) (22,706,220) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,327,213,449 24,455,561 222,008,140 347,533,023 276,643,144 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,044,144,177 $20,660,664 $190,564,075 $ 329,463,858 $265,351,346 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,149,919,577 15,288,513 200,201,534 273,710,105 269,990,311 Contract purchase payments 29,354,807 1,406,406 6,213,205 133,771,150 11,019,652 Net transfers(1) (108,213,570) 231,762 (18,652,132) (154,414,427) (12,580,735) Transfers for policy loans 474,469 (6,761) 157,016 (78,441) (10,331) Contract charges (1,512,365) (12,445) (139,723) (677,427) (174,079) Contract terminations: Surrender benefits (151,465,569) (1,051,493) (34,774,557) (7,213,801) (17,744,335) Death benefits (9,816,505) (143,877) (1,587,595) (1,473,447) (2,140,670) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 908,740,844 15,712,105 151,417,748 243,623,712 248,359,813 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 65 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- RVS VP SEL VP THDL THDL THIRD SHORT SM CAP VP VP AVE YEAR ENDED DEC. 31, 2007 (CONTINUED) DURATION VAL EMER MKTS INTL OPP VAL OPERATIONS Investment income (loss) -- net $ 10,966,745 $ (1,067,410) $ (1,607,028) $ (343,974) $ 2,302,402 Net realized gain (loss) on sales of investments (928,130) 2,451,770 17,356,319 20,170,233 14,330,014 Distributions from capital gains -- 8,379,599 22,687,947 -- 11,072,723 Net change in unrealized appreciation or depreciation of investments 4,283,352 (15,657,261) 125,156,294 24,613,294 (35,865,306) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 14,321,967 (5,893,302) 163,593,532 44,439,553 (8,160,167) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 24,013,269 4,725,165 149,565,186 14,140,061 2,759,771 Net transfers(1) 3,803,004 (35,351,071) 28,305,976 (2,169,023) (23,205,413) Transfers for policy loans 28,595 (4,589) (119,597) 160,298 (22,684) Adjustments to net assets allocated to contracts in payment period (146,765) (115,375) (8,178) (350,000) (47,025) Contract charges (201,149) (103,663) (1,169,521) (233,640) (44,618) Contract terminations: Surrender benefits (22,536,679) (10,082,764) (21,437,522) (100,813,250) (11,699,073) Death benefits (5,157,031) (1,126,211) (2,444,431) (4,083,917) (1,054,091) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (196,756) (42,058,508) 152,691,913 (93,349,471) (33,313,133) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 331,991,084 170,404,291 379,203,916 419,624,704 189,566,384 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $346,116,295 $122,452,481 $695,489,361 $ 370,714,786 $148,093,084 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 270,830,576 97,485,723 191,857,012 314,504,903 57,364,981 Contract purchase payments 21,694,410 3,122,074 93,816,615 10,770,806 812,016 Net transfers(1) 2,820,316 (19,919,235) 14,603,860 (2,649,010) (6,922,226) Transfers for policy loans 23,304 (2,175) (61,719) 95,493 (6,372) Contract charges (161,871) (58,695) (540,870) (167,922) (13,156) Contract terminations: Surrender benefits (18,452,530) (5,701,535) (8,934,651) (64,210,854) (3,442,367) Death benefits (4,128,636) (641,254) (1,149,085) (2,919,513) (310,404) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 272,625,569 74,284,903 289,591,162 255,423,903 47,482,472 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 66 RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP WANGER WANGER YEAR ENDED DEC. 31, 2007 (CONTINUED) CL II EST, CL II GRO, CL II INTL USA OPERATIONS Investment income (loss) -- net $ 5,889,877 $ 809,604 $ (810,318) $ (337,940) $ (8,332,746) Net realized gain (loss) on sales of investments 18,999,895 5,384,698 16,789,506 50,875,966 41,410,604 Distributions from capital gains 19,453,460 667,347 7,437,818 72,464,160 47,038,069 Net change in unrealized appreciation or depreciation of investments (69,536,273) (31,924,850) (3,109,983) 11,009,845 (47,372,483) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (25,193,041) (25,063,201) 20,307,023 134,012,031 32,743,444 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 304,655,163 101,608,023 41,384,136 133,045,113 106,881,687 Net transfers(1) (187,203,632) (35,775,610) (112,141,196) (98,828,775) 1,989,558 Transfers for policy loans (183,851) (56,167) (18,610) (308,279) (175,937) Adjustments to net assets allocated to contracts in payment period (10,295) (9,848) -- (175,196) (62,704) Contract charges (2,681,323) (577,452) (264,787) (1,186,764) (1,036,750) Contract terminations: Surrender benefits (25,127,265) (5,496,872) (1,794,327) (48,074,860) (50,643,220) Death benefits (4,745,017) (867,941) (331,210) (5,662,515) (6,348,650) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 84,703,780 58,824,133 (73,165,994) (21,191,276) 50,603,984 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 810,354,440 169,621,137 100,351,787 857,315,985 890,483,858 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 869,865,179 $203,382,069 $ 47,492,816 $970,136,740 $973,831,286 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 615,159,689 136,442,482 98,447,751 392,888,045 489,658,854 Contract purchase payments 258,747,252 76,917,072 36,197,490 90,941,449 84,505,696 Net transfers(1) (143,069,714) (28,757,609) (93,894,177) (45,110,753) 21,685,099 Transfers for policy loans (141,678) (43,459) (16,176) (141,043) (102,904) Contract charges (1,984,478) (455,890) (244,685) (518,169) (602,214) Contract terminations: Surrender benefits (18,458,368) (4,386,383) (1,600,684) (18,873,658) (26,715,811) Death benefits (3,595,164) (682,701) (296,803) (2,415,941) (3,391,905) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 706,657,539 179,033,512 38,592,716 416,769,930 565,036,815 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 67 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------- WF ADV WF ADV WF ADV WF ADV VT ASSET VT INTL VT VT YEAR ENDED DEC. 31, 2007 (CONTINUED) ALLOC CORE OPP SM CAP GRO OPERATIONS Investment income (loss) -- net $ 1,354,182 $ (176,512) $ (248,811) $ (699,645) Net realized gain (loss) on sales of investments 2,688,039 1,111,341 4,271,528 1,537,058 Distributions from capital gains 1,501,009 1,492,329 12,900,103 12,019,803 Net change in unrealized appreciation or depreciation of investments 690,136 (144,481) (11,462,733) (4,910,640) ----------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 6,233,366 2,282,677 5,460,087 7,946,576 ----------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,927,651 282,943 5,703,848 10,010,724 Net transfers(1) 2,112,194 (853,219) (12,698,054) 28,099,306 Transfers for policy loans 2,151 (4,002) (12,992) (23,723) Adjustments to net assets allocated to contracts in payment period (14,679) (3,052) (5,599) (1,984) Contract charges (63,498) (13,200) (67,013) (50,917) Contract terminations: Surrender benefits (7,975,454) (1,388,216) (5,719,120) (4,685,679) Death benefits (943,114) (245,018) (648,900) (510,986) ----------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (4,954,749) (2,223,764) (13,447,830) 32,836,741 ----------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 97,390,097 19,826,792 93,492,997 60,200,636 ----------------------------------------------------------------------------------------------------------------- Net assets at end of year $98,668,714 $19,885,705 $ 85,505,254 $100,983,953 ----------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 76,000,244 15,404,286 68,746,422 50,565,632 Contract purchase payments 1,441,716 200,841 4,396,582 7,895,274 Net transfers(1) 1,478,320 (616,622) (8,656,959) 21,078,809 Transfers for policy loans 1,912 (2,823) (9,411) (17,632) Contract charges (47,620) (9,426) (46,354) (38,782) Contract terminations: Surrender benefits (5,946,190) (974,467) (3,922,074) (3,466,633) Death benefits (714,370) (173,474) (448,384) (397,695) ----------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 72,214,012 13,828,315 60,059,822 75,618,973 -----------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other subaccounts and transfers from (to) RiverSource Life's fixed account. (2) For the period May 1, 2007 (commencement of operations) to Dec. 31, 2007. (3) For the period April 27, 2007 (commencement of operations) to Dec. 31, 2007. See accompanying notes to financial statements. 68 RIVERSOURCE VARIABLE ACCOUNT 10 NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION RiverSource Variable Account 10 (the Account) was established under Minnesota law as a segregated asset account of RiverSource Life Insurance Company (RiverSource Life). The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act) and exists in accordance with the rules and regulations of the Insurance Division, Department of Commerce of the State of Minnesota. The Account is used as a funding vehicle for individual variable annuity contracts issued by RiverSource Life. The following is a list of each variable annuity product funded through the Account. RiverSource Retirement Advisor Variable Annuity(R) (RAVA) RiverSource Retirement Advisor Variable Annuity(R) - Band 3 (RAVA Band 3) RiverSource Retirement Advisor Advantage(R) Variable Annuity (RAVA Advantage) RiverSource Retirement Advisor Select(R) Variable Annuity (RAVA Select) RiverSource Retirement Advisor Advantage(R) Variable Annuity - Band 3 (RAVA Advantage Band 3) RiverSource Retirement Advisor Advantage Plus(R) Variable Annuity (RAVA Advantage Plus) RiverSource Retirement Advisor Select Plus(R) Variable Annuity (RAVA Select Plus) RiverSource Retirement Advisor 4 Advantage(R) Variable Annuity (RAVA 4 Advantage) RiverSource Retirement Advisor 4 Select(R) Variable Annuity (RAVA 4 Select) RiverSource Retirement Advisor 4 Access(R) Variable Annuity (RAVA 4 Access) RiverSource(R) Flexible Portfolio Annuity (FPA) The Account is comprised of various subaccounts. Each subaccount invests exclusively in shares of the following funds or portfolios (collectively, the Funds), which are registered under the 1940 Act as open-end management investment companies. The name of each Fund and the corresponding subaccount name are provided below.
SUBACCOUNT FUND -------------------------------------------------------------------------------------------------------------- AIM VI Cap Appr, Ser I AIM V.I. Capital Appreciation Fund, Series I Shares AIM VI Cap Appr, Ser II AIM V.I. Capital Appreciation Fund, Series II Shares AIM VI Cap Dev, Ser I AIM V.I. Capital Development Fund, Series I Shares AIM VI Cap Dev, Ser II AIM V.I. Capital Development Fund, Series II Shares AIM VI Core Eq, Ser I AIM V.I. Core Equity Fund, Series I Shares AIM VI Dyn, Ser I AIM V.I. Dynamics Fund, Series I Shares AIM VI Fin Serv, Ser I AIM V.I. Financial Services Fund, Series I Shares AIM VI Fin Serv, Ser II AIM V.I. Financial Services Fund, Series II Shares AIM VI Global Hlth Care, Ser II AIM V.I. Global Health Care Fund, Series II Shares AIM VI Intl Gro, Ser II AIM V.I. International Growth Fund, Series II Shares(1) AIM VI Tech, Ser I AIM V.I. Technology Fund, Series I Shares AB VPS Global Tech, Cl B AllianceBernstein VPS Global Technology Portfolio (Class B) AB VPS Gro & Inc, Cl B AllianceBernstein VPS Growth and Income Portfolio (Class B) AB VPS Intl Val, Cl B AllianceBernstein VPS International Value Portfolio (Class B)(2),(3) AB VPS Lg Cap Gro, Cl B AllianceBernstein VPS Large Cap Growth Portfolio (Class B) AC VP Intl, Cl I American Century VP International, Class I AC VP Intl, Cl II American Century VP International, Class II AC VP Mid Cap Val, Cl II American Century VP Mid Cap Value, Class II AC VP Ultra, Cl II American Century VP Ultra(R), Class II AC VP Val, Cl I American Century VP Value, Class I(4) AC VP Val, Cl II American Century VP Value, Class II Calvert VS Social Bal Calvert Variable Series, Inc. Social Balanced Portfolio Col Hi Yield, VS Cl B Columbia High Yield Fund, Variable Series, Class B Col Marsico Gro, VS Cl A Columbia Marsico Growth Fund, Variable Series, Class A Col Marsico Intl Opp, VS Cl B Columbia Marsico International Opportunities Fund, Variable Series, Class B CS Commodity Return Credit Suisse Trust - Commodity Return Strategy Portfolio CS U.S. Eq Flex III Credit Suisse Trust - U.S. Equity Flex III Portfolio (previously Credit Suisse Trust - Mid-Cap Core Portfolio) CS U.S. Eq Flex I Credit Suisse Trust - U.S. Equity Flex I Portfolio (previously Credit Suisse Trust - Small Cap Core I Portfolio) Drey VIF Intl Eq, Serv Dreyfus Variable Investment Fund International Equity Portfolio, Service Shares Drey VIF Intl Val, Serv Dreyfus Variable Investment Fund International Value Portfolio, Service Shares(2) EV VT Floating-Rate Inc Eaton Vance VT Floating-Rate Income Fund EG VA Fundamental Lg Cap, Cl 2 Evergreen VA Fundamental Large Cap Fund - Class 2 EG VA Intl Eq, Cl 2 Evergreen VA International Equity Fund - Class 2(5) Fid VIP Contrafund, Serv Cl 2 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 2 Fid VIP Gro & Inc, Serv Cl Fidelity(R) VIP Growth & Income Portfolio Service Class Fid VIP Gro & Inc, Serv Cl 2 Fidelity(R) VIP Growth & Income Portfolio Service Class 2 --------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 69
SUBACCOUNT FUND -------------------------------------------------------------------------------------------------------------- Fid VIP Mid Cap, Serv Cl Fidelity(R) VIP Mid Cap Portfolio Service Class Fid VIP Mid Cap, Serv Cl 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 Fid VIP Overseas, Serv Cl Fidelity(R) VIP Overseas Portfolio Service Class Fid VIP Overseas, Serv Cl 2 Fidelity(R) VIP Overseas Portfolio Service Class 2 FTVIPT Frank Global Real Est, Cl FTVIPT Franklin Global Real Estate Securities Fund - Class 2 2 FTVIPT Frank Sm Cap Val, Cl 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 FTVIPT Mutual Shares Sec, Cl 2 FTVIPT Mutual Shares Securities Fund - Class 2 FTVIPT Temp Dev Mkts Sec, Cl 1 FTVIPT Templeton Developing Markets Securities Fund - Class 1(6) FTVIPT Temp For Sec, Cl 2 FTVIPT Templeton Foreign Securities Fund - Class 2(5) GS VIT Mid Cap Val, Inst Goldman Sachs VIT Mid Cap Value Fund - Institutional Shares GS VIT Structd Sm Cap Eq, Inst Goldman Sachs VIT Structured Small Cap Equity Fund - Institutional Shares GS VIT Structd U.S. Eq, Inst Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares Janus Aspen Global Tech, Serv Janus Aspen Series Global Technology Portfolio: Service Shares Janus Aspen Overseas, Serv Janus Aspen Series Overseas Portfolio: Service Shares (previously Janus Aspen Series International Growth Portfolio: Service Shares) Janus Aspen Janus, Serv Janus Aspen Series Janus Portfolio: Service Shares (previously Janus Aspen Series Large Cap Growth Portfolio: Service Shares) Janus Aspen Enterprise, Serv Janus Aspen Series Enterprise Portfolio: Service Shares (previously Janus Aspen Series Mid Cap Growth Portfolio: Service Shares) Lazard Retire Intl Eq, Serv Lazard Retirement International Equity Portfolio - Service Shares(3) LM Ptnrs Var Sm Cap Gro, Cl I Legg Mason Partners Variable Small Cap Growth Portfolio, Class I MFS Inv Gro Stock, Serv Cl MFS(R) Investors Growth Stock Series - Service Class MFS New Dis, Serv Cl MFS(R) New Discovery Series - Service Class MFS Total Return, Serv Cl MFS(R) Total Return Series - Service Class(7) MFS Utilities, Serv Cl MFS(R) Utilities Series - Service Class NB AMT Intl, Cl S Neuberger Berman Advisers Management Trust International Portfolio (Class S) NB AMT Soc Responsive, Cl S Neuberger Berman Advisers Management Trust Socially Responsive Portfolio (Class S) Oppen Global Sec VA, Serv Oppenheimer Global Securities Fund/VA, Service Shares Oppen Main St Sm Cap VA, Serv Oppenheimer Main Street Small Cap Fund/VA, Service Shares Oppen Strategic Bond VA, Serv Oppenheimer Strategic Bond Fund/VA, Service Shares Oppen Val VA, Serv Oppenheimer Value Fund/VA, Service Shares PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Share Class Pioneer Eq Inc VCT, Cl II Pioneer Equity Income VCT Portfolio - Class II Shares(8) Pioneer Intl Val VCT, Cl II Pioneer International Value VCT Portfolio - Class II Shares(9) Put VT Global Hlth Care, Cl IB Putnam VT Global Health Care Fund - Class IB Shares (previously Putnam VT Health Sciences Fund - Class IB Shares) Put VT Intl Eq, Cl IB Putnam VT International Equity Fund - Class IB Shares Put VT Intl New Opp, Cl IB Putnam VT International New Opportunities Fund - Class IB Shares(1) Put VT New Opp, Cl IA Putnam VT New Opportunities Fund - Class IA Shares Put VT Vista, Cl IB Putnam VT Vista Fund - Class IB Shares Royce Micro-Cap, Invest Cl Royce Capital Fund - Micro-Cap Portfolio, Investment Class Disc Asset Alloc, Aggr RVST Disciplined Asset Allocation Portfolios - Aggressive Disc Asset Alloc, Conserv RVST Disciplined Asset Allocation Portfolios - Conservative Disc Asset Alloc, Mod RVST Disciplined Asset Allocation Portfolios - Moderate Disc Asset Alloc, Mod Aggr RVST Disciplined Asset Allocation Portfolios - Moderately Aggressive Disc Asset Alloc, Mod Conserv RVST Disciplined Asset Allocation Portfolios - Moderately Conservative RVS Ptnrs VP Fundamental Val RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund RVS Ptnrs VP Select Val RVST RiverSource Partners Variable Portfolio - Select Value Fund RVS Ptnrs VP Sm Cap Val RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund RVS VP Bal RVST RiverSource Variable Portfolio - Balanced Fund(7) RVS VP Cash Mgmt RVST RiverSource Variable Portfolio - Cash Management Fund RVS VP Div Bond RVST RiverSource Variable Portfolio - Diversified Bond Fund(10) RVS VP Div Eq Inc RVST RiverSource Variable Portfolio - Diversified Equity Income Fund(4),(8) RVS VP Global Bond RVST RiverSource Variable Portfolio - Global Bond Fund RVS VP Global Inflation Prot Sec RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund Sel VP Gro RVST Seligman Variable Portfolio - Growth Fund (previously RVST RiverSource Variable Portfolio - Growth Fund) RVS VP Hi Yield Bond RVST RiverSource Variable Portfolio - High Yield Bond Fund RVS VP Inc Opp RVST RiverSource Variable Portfolio - Income Opportunities Fund RVS VP Dyn Eq RVST RiverSource Variable Portfolio - Dynamic Equity Fund (previously RVST RiverSource Variable Portfolio - Large Cap Equity Fund) Sel VP Lg Cap Val RVST Seligman Variable Portfolio - Larger-Cap Value Fund (previously RVST RiverSource Variable Portfolio - Large Cap Value Fund) RVS VP Mid Cap Gro RVST RiverSource Variable Portfolio - Mid Cap Growth Fund RVS VP Mid Cap Val RVST RiverSource Variable Portfolio - Mid Cap Value Fund RVS VP S&P 500 RVST RiverSource Variable Portfolio - S&P 500 Index Fund RVS VP Short Duration RVST RiverSource Variable Portfolio - Short Duration U.S. Government Fund --------------------------------------------------------------------------------------------------------------
70 RIVERSOURCE VARIABLE ACCOUNT 10
SUBACCOUNT FUND -------------------------------------------------------------------------------------------------------------- Sel VP Sm Cap Val RVST Seligman Variable Portfolio - Smaller-Cap Value Fund (previously RVST RiverSource Variable Portfolio - Small Cap Advantage Fund) THDL VP Emer Mkts RVST Threadneedle Variable Portfolio - Emerging Markets Fund(6) THDL VP Intl Opp RVST Threadneedle Variable Portfolio - International Opportunity Fund Third Ave Val Third Avenue Value Portfolio VanK LIT Comstock, Cl II Van Kampen Life Investment Trust Comstock Portfolio, Class II Shares VanK UIF Global Real Est, Cl II Van Kampen UIF Global Real Estate Portfolio, Class II Shares VanK UIF Mid Cap Gro, Cl II Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares Wanger Intl Wanger International Wanger USA Wanger USA WF Adv VT Asset Alloc Wells Fargo Advantage VT Asset Allocation Fund WF Adv VT Intl Core Wells Fargo Advantage VT International Core Fund WF Adv VT Opp Wells Fargo Advantage VT Opportunity Fund WF Adv VT Sm Cap Gro Wells Fargo Advantage VT Small Cap Growth Fund --------------------------------------------------------------------------------------------------------------
(1) Effective Feb. 13, 2009, Putman VT International New Opportunities Fund - Class IB Shares was substituted with AIM V.I. International Growth Fund, Series II Shares. (2) Effective Feb. 13, 2009, Dreyfus Variable Investment Fund International Value Portfolio, Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). (3) Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). (4) Effective Feb. 13, 2009, for FPA only, American Century VP Value, Class I was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. (5) Effective Feb. 13, 2009, FTVIPT Templeton Foreign Securities Fund - Class 2 was substituted with Evergreen VA International Equity Fund - Class 2. (6) Effective Feb. 13, 2009, FTVIPT Templeton Developing Markets Securities Fund - Class 1 was substituted with RVST Threadneedle Variable Portfolio - Emerging Markets Fund. (7) Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund. (8) Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund. (9) Pioneer International Value VCT Portfolio - Class II Shares liquidated on April 24, 2009. (10) At the close of business on March 7, 2008, RVST RiverSource Variable Portfolio - Core Bond Fund merged into RVST RiverSource Variable Portfolio - Diversified Bond Fund. The assets of each subaccount of the Account are not chargeable with liabilities arising out of the business conducted by any other segregated asset account or by RiverSource Life. RiverSource Life serves as issuer of the contract. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS IN THE FUNDS Investment transactions are accounted for on the date the shares are purchased and sold. Realized gains and losses on the sales of investments are computed using the average cost method. Income from dividends and gains from realized capital gain distributions are reinvested in additional shares of the Funds and are recorded as income by the subaccounts on the ex-dividend date. Unrealized appreciation or depreciation of investments in the accompanying financial statements represents the subaccounts' share of the Funds' undistributed net investment income, undistributed realized gain or loss and the unrealized appreciation or depreciation on their investment securities. In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement No. 157, "Fair Value Measurements" ("SFAS 157"). SFAS 157 was adopted by the Funds effective Jan. 1, 2008. SFAS 157 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Where applicable, SFAS 157 codifies fair value related guidance within U.S. generally accepted accounting principles. Under SFAS 157, the Account categorizes its fair value measurements according to a three-level hierarchy. This hierarchy prioritizes the inputs used by the Account to value investment securities. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 - Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 - Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Funds in the Accounts have been assigned a Level 2 hierarchy, which indicates that the Funds are not considered to be active as there are few daily net asset values released publicly. Investments in shares of the Funds are stated at market value which is the net asset value per share as determined by the respective Funds. RIVERSOURCE VARIABLE ACCOUNT 10 71 VARIABLE PAYOUT Net assets allocated to contracts in the payout period are periodically compared to a computation which uses the Annuity 2000 Basic Mortality Table and which assumes future mortality improvement. The assumed investment return is 5% unless the annuitant elects otherwise, in which case the rate would be 3.5%, as regulated by the laws of the respective states. The mortality risk is fully borne by RiverSource Life and may result in additional amounts being transferred into the variable annuity account by RiverSource Life to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the insurance company. FEDERAL INCOME TAXES RiverSource Life is taxed as a life insurance company. The Account is treated as part of RiverSource Life for federal income tax purposes. Under existing federal income tax law, no income taxes are payable with respect to any investment income of the Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Account for federal income taxes. RiverSource Life will review periodically the status of this policy. In the event of changes in the tax law, a charge may be made in future years for any federal income taxes that would be attributable to the contracts. USE OF ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. 3. VARIABLE ACCOUNT EXPENSES RiverSource Life deducts a daily mortality and expense risk fee equal, on an annual basis, to the following percent of the average daily net assets of each subaccount.
PRODUCT MORTALITY AND EXPENSE RISK FEE --------------------------------------------------------------------------------------------- RAVA 0.75% to 0.95% (depending on the contract selected) --------------------------------------------------------------------------------------------- RAVA Band 3 0.55% --------------------------------------------------------------------------------------------- RAVA Advantage 0.75% to 0.95% (depending on the contract selected) --------------------------------------------------------------------------------------------- RAVA Select 1.00% to 1.20% (depending on the contract selected) --------------------------------------------------------------------------------------------- RAVA Advantage Band 3 0.55% --------------------------------------------------------------------------------------------- RAVA Advantage Plus 0.55% to 0.95% (depending on the contract selected) --------------------------------------------------------------------------------------------- RAVA Select Plus 0.75% to 1.20% (depending on the contract selected) --------------------------------------------------------------------------------------------- RAVA 4 Advantage 0.85% to 1.05% (depending on the contract selected) --------------------------------------------------------------------------------------------- RAVA 4 Select 1.10% to 1.30% (depending on the contract selected) --------------------------------------------------------------------------------------------- RAVA 4 Access 1.25% to 1.45% (depending on the contract selected) --------------------------------------------------------------------------------------------- FPA 1.25% ---------------------------------------------------------------------------------------------
4. CONTRACT CHARGES RiverSource Life deducts a contract administrative charge of $30 per year on the contract anniversary. This charge reimburses RiverSource Life for expenses incurred in establishing and maintaining the annuity records. Certain products may waive this charge based upon the underlying contract value. Optional riders are available on certain products and if selected, the related fees are deducted annually from the contract value on the contract anniversary. Additional information can be found in the applicable product's prospectus. 5. SURRENDER CHARGES RiverSource Life may use a surrender charge to help it recover certain expenses related to the sale of the annuity. When applicable, a surrender charge will apply for a maximum number of years, as depicted in the surrender charge schedule included in the applicable product's prospectus. Such charges are not treated as a separate expense of the subaccounts as they are ultimately deducted from contract surrender benefits paid by RiverSource Life. Charges by RiverSource Life for surrenders are not identified on an individual subaccount basis. 6. RELATED PARTY TRANSACTIONS Management fees are paid indirectly to RiverSource Investments, LLC, an affiliate of RiverSource Life, in its capacity as investment manager for the RiverSource Variable Series Trust (RVST) funds. The Fund's Investment Management Services 72 RIVERSOURCE VARIABLE ACCOUNT 10 Agreement provides for a fee at a percentage of each Fund's average daily net assets on a tiered schedule that ranges from 1.100% to 0.120%. For certain RVST funds, the management fee may be adjusted upward or downward by a performance incentive adjustment (PIA). The adjustment is based on a comparison of the performance of each Fund to an index of similar funds up to a maximum percentage of each Fund's average daily net assets after deducting 0.50% from the performance difference. If the performance difference is less than 0.50%, the adjustment will be zero. For RVST funds with PIA, the maximum adjustment is 0.08% or 0.12%. The Funds have a Transfer Agency and Servicing Agreement with RiverSource Service Corporation. The fee under this agreement is uniform for all RVST funds at an annual rate of 0.06% of each Fund's average daily net assets. The Funds have an agreement with RiverSource Distributors, Inc. (the Distributor) for distribution services. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, each Fund pays the Distributor a fee at an annual rate of up to 0.125% of each Fund's average daily net assets. RVST funds have an Administrative Services Agreement with Ameriprise Financial, Inc. (Ameriprise Financial). Under this agreement, each Fund pays Ameriprise Financial a fee on a tiered schedule that ranges from 0.080% to 0.030% of each Fund's average daily net assets for administration and accounting services. For the period from Jan. 1, 2008 to Dec. 12, 2008, the RVST funds paid custodian fees to Ameriprise Trust Company, an affiliate of RiverSource Life. Subsequent to Dec. 12, 2008, assets were transferred to an unaffiliated custodian. In addition to the fees and expenses which each RVST fund bears directly, each Fund indirectly bears a pro rata share of the fees and expenses of the funds in which it invests (also referred to as "acquired funds"), including affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange traded funds). Because the acquired funds have varied expense and fee levels and each Fund may own different proportions of acquired funds at different times, the amount of fees and expenses incurred indirectly by each Fund will vary. 7. INVESTMENT TRANSACTIONS The subaccounts' purchases of Funds' shares, including reinvestment of dividend distributions, for the year ended Dec. 31, 2008 were as follows:
SUBACCOUNT FUND PURCHASES -------------------------------------------------------------------------------------------------------------- AIM VI Cap Appr, Ser I AIM V.I. Capital Appreciation Fund, Series I Shares $ 764,155 AIM VI Cap Appr, Ser II AIM V.I. Capital Appreciation Fund, Series II Shares 10,993,839 AIM VI Cap Dev, Ser I AIM V.I. Capital Development Fund, Series I Shares 4,338,603 AIM VI Cap Dev, Ser II AIM V.I. Capital Development Fund, Series II Shares 8,010,283 AIM VI Core Eq, Ser I AIM V.I. Core Equity Fund, Series I Shares 4,095,055 AIM VI Dyn, Ser I AIM V.I. Dynamics Fund, Series I Shares 296,318 AIM VI Fin Serv, Ser I AIM V.I. Financial Services Fund, Series I Shares 12,578,824 AIM VI Fin Serv, Ser II AIM V.I. Financial Services Fund, Series II Shares 5,324,957 AIM VI Global Hlth Care, Ser II AIM V.I. Global Health Care Fund, Series II Shares 15,574,816 AIM VI Intl Gro, Ser II AIM V.I. International Growth Fund, Series II Shares 348,135,160 AIM VI Tech, Ser I AIM V.I. Technology Fund, Series I Shares 3,112,265 AB VPS Global Tech, Cl B AllianceBernstein VPS Global Technology Portfolio (Class B) 4,626,437 AB VPS Gro & Inc, Cl B AllianceBernstein VPS Growth and Income Portfolio (Class B) 49,071,187 AllianceBernstein VPS International Value Portfolio (Class AB VPS Intl Val, Cl B B) 388,188,909 AB VPS Lg Cap Gro, Cl B AllianceBernstein VPS Large Cap Growth Portfolio (Class B) 1,356,597 AC VP Intl, Cl I American Century VP International, Class I 6,586,992 AC VP Intl, Cl II American Century VP International, Class II 15,058,444 AC VP Mid Cap Val, Cl II American Century VP Mid Cap Value, Class II 109,119,194 AC VP Ultra, Cl II American Century VP Ultra(R), Class II 15,115,881 AC VP Val, Cl I American Century VP Value, Class I 47,602,806 AC VP Val, Cl II American Century VP Value, Class II 53,638,487 Calvert VS Social Bal Calvert Variable Series, Inc. Social Balanced Portfolio 2,920,560 Col Hi Yield, VS Cl B Columbia High Yield Fund, Variable Series, Class B 17,225,072 Col Marsico Gro, VS Cl A Columbia Marsico Growth Fund, Variable Series, Class A 538,240,755 Columbia Marsico International Opportunities Fund, Variable Col Marsico Intl Opp, VS Cl B Series, Class B 71,322,302 CS Commodity Return Credit Suisse Trust - Commodity Return Strategy Portfolio 67,943,197 CS U.S. Eq Flex III Credit Suisse Trust - U.S. Equity Flex III Portfolio 312,234 CS U.S. Eq Flex I Credit Suisse Trust - U.S. Equity Flex I Portfolio -- Dreyfus Variable Investment Fund International Equity Drey VIF Intl Eq, Serv Portfolio, Service Shares 5,463,284 Dreyfus Variable Investment Fund International Value Drey VIF Intl Val, Serv Portfolio, Service Shares 2,208,136 EV VT Floating-Rate Inc Eaton Vance VT Floating-Rate Income Fund 214,096,221 EG VA Fundamental Lg Cap, Cl 2 Evergreen VA Fundamental Large Cap Fund - Class 2 6,972,468 EG VA Intl Eq, Cl 2 Evergreen VA International Equity Fund - Class 2 8,587,247 --------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 73
SUBACCOUNT FUND PURCHASES -------------------------------------------------------------------------------------------------------------- Fid VIP Contrafund, Serv Cl 2 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 2 $ 585,835,096 Fid VIP Gro & Inc, Serv Cl Fidelity(R) VIP Growth & Income Portfolio Service Class 19,487,398 Fid VIP Gro & Inc, Serv Cl 2 Fidelity(R) VIP Growth & Income Portfolio Service Class 2 37,954,648 Fid VIP Mid Cap, Serv Cl Fidelity(R) VIP Mid Cap Portfolio Service Class 55,318,284 Fid VIP Mid Cap, Serv Cl 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 480,024,692 Fid VIP Overseas, Serv Cl Fidelity(R) VIP Overseas Portfolio Service Class 13,062,090 Fid VIP Overseas, Serv Cl 2 Fidelity(R) VIP Overseas Portfolio Service Class 2 42,556,739 FTVIPT Frank Global Real Est, Cl 2 FTVIPT Franklin Global Real Estate Securities Fund - Class 2 95,478,183 FTVIPT Frank Sm Cap Val, Cl 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 33,913,463 FTVIPT Mutual Shares Sec, Cl 2 FTVIPT Mutual Shares Securities Fund - Class 2 26,395,441 FTVIPT Templeton Developing Markets Securities Fund - Class FTVIPT Temp Dev Mkts Sec, Cl 1 1 28,614,305 FTVIPT Temp For Sec, Cl 2 FTVIPT Templeton Foreign Securities Fund - Class 2 5,084,290 GS VIT Mid Cap Val, Inst Goldman Sachs VIT Mid Cap Value Fund - Institutional Shares 6,885,951 Goldman Sachs VIT Structured Small Cap Equity GS VIT Structd Sm Cap Eq, Inst Fund - Institutional Shares 618,737 Goldman Sachs VIT Structured U.S. Equity GS VIT Structd U.S. Eq, Inst Fund - Institutional Shares 12,219,799 Janus Aspen Series Global Technology Portfolio: Service Janus Aspen Global Tech, Serv Shares 1,923,887 Janus Aspen Overseas, Serv Janus Aspen Series Overseas Portfolio: Service Shares 48,822,243 Janus Aspen Janus, Serv Janus Aspen Series Janus Portfolio: Service Shares 442,211,945 Janus Aspen Enterprise, Serv Janus Aspen Series Enterprise Portfolio: Service Shares 3,445,454 Lazard Retirement International Equity Portfolio - Service Lazard Retire Intl Eq, Serv Shares 2,372,216 Legg Mason Partners Variable Small Cap Growth Portfolio, LM Ptnrs Var Sm Cap Gro, Cl I Class I 3,899,194 MFS Inv Gro Stock, Serv Cl MFS(R) Investors Growth Stock Series - Service Class 9,026,761 MFS New Dis, Serv Cl MFS(R) New Discovery Series - Service Class 13,562,466 MFS Total Return, Serv Cl MFS(R) Total Return Series - Service Class 17,969,363 MFS Utilities, Serv Cl MFS(R) Utilities Series - Service Class 90,662,349 Neuberger Berman Advisers Management Trust International NB AMT Intl, Cl S Portfolio (Class S) 169,018,882 Neuberger Berman Advisers Management Trust Socially NB AMT Soc Responsive, Cl S Responsive Portfolio (Class S) 1,216,976 Oppen Global Sec VA, Serv Oppenheimer Global Securities Fund/VA, Service Shares 17,806,642 Oppen Main St Sm Cap VA, Serv Oppenheimer Main Street Small Cap Fund/VA, Service Shares 12,464,385 Oppen Strategic Bond VA, Serv Oppenheimer Strategic Bond Fund/VA, Service Shares 766,113,424 Oppen Val VA, Serv Oppenheimer Value Fund/VA, Service Shares 1,770,448 PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Share Class 520,866,212 Pioneer Eq Inc VCT, Cl II Pioneer Equity Income VCT Portfolio - Class II Shares 5,387,326 Pioneer Intl Val VCT, Cl II Pioneer International Value VCT Portfolio - Class II Shares 455,071 Put VT Global Hlth Care, Cl IB Putnam VT Global Health Care Fund - Class IB Shares 1,777,163 Put VT Intl Eq, Cl IB Putnam VT International Equity Fund - Class IB Shares 14,220,244 Putnam VT International New Opportunities Fund - Class IB Put VT Intl New Opp, Cl IB Shares 1,265,695 Put VT New Opp, Cl IA Putnam VT New Opportunities Fund - Class IA Shares 166,650 Put VT Vista, Cl IB Putnam VT Vista Fund - Class IB Shares 822,188 Royce Micro-Cap, Invest Cl Royce Capital Fund - Micro-Cap Portfolio, Investment Class 10,605,515 Disc Asset Alloc, Aggr RVST Disciplined Asset Allocation Portfolios - Aggressive 11,776,541 Disc Asset Alloc, Conserv RVST Disciplined Asset Allocation Portfolios - Conservative 28,533,770 Disc Asset Alloc, Mod RVST Disciplined Asset Allocation Portfolios - Moderate 48,436,223 RVST Disciplined Asset Allocation Portfolios - Moderately Disc Asset Alloc, Mod Aggr Aggressive 32,471,833 RVST Disciplined Asset Allocation Portfolios - Moderately Disc Asset Alloc, Mod Conserv Conservative 28,480,915 RVST RiverSource Partners Variable Portfolios - Fundamental RVS Ptnrs VP Fundamental Val Value Fund 380,610,967 RVST RiverSource Partners Variable Portfolio - Select Value RVS Ptnrs VP Select Val Fund 1,877,353 RVST RiverSource Partners Variable Portfolio - Small Cap RVS Ptnrs VP Sm Cap Val Value Fund 329,270,005 RVS VP Bal RVST RiverSource Variable Portfolio - Balanced Fund 28,424,214 RVS VP Cash Mgmt RVST RiverSource Variable Portfolio - Cash Management Fund 637,802,339 RVS VP Div Bond RVST RiverSource Variable Portfolio - Diversified Bond Fund 1,218,294,236 RVST RiverSource Variable Portfolio - Diversified Equity RVS VP Div Eq Inc Income Fund 841,816,644 RVS VP Global Bond RVST RiverSource Variable Portfolio - Global Bond Fund 448,605,977 RVS VP Global Inflation Prot RVST RiverSource Variable Portfolio - Global Inflation Sec Protected Securities Fund 350,016,435 Sel VP Gro RVST Seligman Variable Portfolio - Growth Fund 4,202,985 RVS VP Hi Yield Bond RVST RiverSource Variable Portfolio - High Yield Bond Fund 9,466,386 RVST RiverSource Variable Portfolio - Income Opportunities RVS VP Inc Opp Fund 220,127,878 RVS VP Dyn Eq RVST RiverSource Variable Portfolio - Dynamic Equity Fund 97,981,565 Sel VP Lg Cap Val RVST Seligman Variable Portfolio - Larger-Cap Value Fund 2,459,730 RVS VP Mid Cap Gro RVST RiverSource Variable Portfolio - Mid Cap Growth Fund 3,364,568 RVS VP Mid Cap Val RVST RiverSource Variable Portfolio - Mid Cap Value Fund 155,216,757 RVS VP S&P 500 RVST RiverSource Variable Portfolio - S&P 500 Index Fund 20,465,235 RVST RiverSource Variable Portfolio - Short Duration U.S. RVS VP Short Duration Government Fund 110,340,992 Sel VP Sm Cap Val RVST Seligman Variable Portfolio - Smaller-Cap Value Fund 12,443,763 THDL VP Emer Mkts RVST Threadneedle Variable Portfolio - Emerging Markets Fund 384,975,416 RVST Threadneedle Variable Portfolio - International THDL VP Intl Opp Opportunity Fund 11,110,934 --------------------------------------------------------------------------------------------------------------
74 RIVERSOURCE VARIABLE ACCOUNT 10
SUBACCOUNT FUND PURCHASES -------------------------------------------------------------------------------------------------------------- Third Ave Val Third Avenue Value Portfolio $ 16,618,090 Van Kampen Life Investment Trust Comstock Portfolio, Class VanK LIT Comstock, Cl II II Shares 280,025,284 VanK UIF Global Real Est, Cl II Van Kampen UIF Global Real Estate Portfolio, Class II Shares 210,907,140 VanK UIF Mid Cap Gro, Cl II Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares 36,050,499 Wanger Intl Wanger International 283,554,162 Wanger USA Wanger USA 190,058,581 WF Adv VT Asset Alloc Wells Fargo Advantage VT Asset Allocation Fund 12,363,297 WF Adv VT Intl Core Wells Fargo Advantage VT International Core Fund 3,719,428 WF Adv VT Opp Wells Fargo Advantage VT Opportunity Fund 18,978,269 WF Adv VT Sm Cap Gro Wells Fargo Advantage VT Small Cap Growth Fund 32,843,763 --------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 75 8. ACCUMULATION UNIT VALUES, UNITS OUTSTANDING AND NET ASSETS The following is a summary of accumulation unit values at Dec. 31, 2008:
AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, PRICE LEVEL SER I SER II SER I SER II SER I ---------------------------------------------------------------------------------------- 0.55% $0.67 $0.72 $1.12 $0.86 $ -- 0.75% 0.65 0.71 1.09 0.84 -- 0.85% -- 0.69 -- 0.63 -- 0.95% 0.64 0.70 1.07 0.83 -- 1.00% -- 0.74 -- 0.88 -- 1.05% -- 0.68 -- 0.63 -- 1.10% -- 0.68 -- 0.63 -- 1.20% -- 0.73 -- 0.86 -- 1.25% -- -- -- -- -- 1.25% -- 0.68 -- 0.63 1.46 1.30% -- 0.68 -- 0.63 -- 1.45% -- 0.68 -- 0.62 -- ----------------------------------------------------------------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PRICE LEVEL SER I SER I SER II CARE, SER II SER II ---------------------------------------------------------------------------------------- 0.55% $0.74 $0.44 $ -- $0.81 $0.93 0.75% 0.73 0.43 -- 0.80 0.93 0.85% -- -- 0.36 0.85 0.83 0.95% 0.72 0.42 -- 0.80 0.92 1.00% 0.78 0.45 -- 0.80 0.92 1.05% -- -- 0.36 0.84 0.82 1.10% -- -- 0.36 0.84 0.82 1.20% 0.77 0.44 -- 0.79 0.92 1.25% -- -- -- -- -- 1.25% -- -- 0.36 0.84 0.82 1.30% -- -- 0.36 0.84 0.82 1.45% -- -- 0.36 0.83 0.81 ----------------------------------------------------------------------------------------------------------------------------------- AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PRICE LEVEL SER I CL B CL B CL B CI B ---------------------------------------------------------------------------------------- 0.55% $0.48 $0.71 $0.81 $1.24 $ -- 0.75% 0.47 0.71 0.80 1.23 -- 0.85% -- 0.71 0.72 0.60 0.74 0.95% 0.46 0.70 0.78 1.21 -- 1.00% 0.54 0.70 0.85 1.25 -- 1.05% -- 0.71 0.71 0.60 0.73 1.10% -- 0.71 0.71 0.60 0.73 1.20% 0.53 0.70 0.84 1.24 -- 1.25% -- -- -- -- -- 1.25% -- 0.71 0.71 0.60 0.73 1.30% -- 0.71 0.71 0.60 0.73 1.45% -- 0.70 0.71 0.59 0.73 -----------------------------------------------------------------------------------------------------------------------------------
76 RIVERSOURCE VARIABLE ACCOUNT 10
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PRICE LEVEL CL I CL II CL II CL II CL I ---------------------------------------------------------------------------------------- 0.55% $0.85 $0.93 $0.68 $0.69 $1.30 0.75% 0.83 0.92 0.68 0.69 1.28 0.85% -- -- 0.84 0.72 -- 0.95% 0.82 0.91 0.67 0.69 1.25 1.00% -- 1.05 0.67 0.68 -- 1.05% -- -- 0.83 0.72 -- 1.10% -- -- 0.83 0.72 -- 1.20% -- 1.03 0.67 0.68 -- 1.25% -- -- -- -- -- 1.25% -- -- 0.83 0.71 1.87 1.30% -- -- 0.83 0.71 -- 1.45% -- -- 0.83 0.71 -- ----------------------------------------------------------------------------------------------------------------------------------- AC VP CALVERT COL COL COL VAL, VS SOCIAL HI YIELD, MARSICO GRO, MARSICO INTL PRICE LEVEL CL II BAL VS CL B VS CL A OPP, VS CL B ---------------------------------------------------------------------------------------- 0.55% $1.10 $0.79 $0.81 $0.72 $0.65 0.75% 1.08 0.78 0.81 0.72 0.65 0.85% 0.79 -- 0.82 0.77 0.73 0.95% 1.07 0.76 0.80 0.71 0.65 1.00% 1.06 0.87 0.80 0.71 0.64 1.05% 0.79 -- 0.81 0.76 0.73 1.10% 0.79 -- 0.81 0.76 0.73 1.20% 1.05 0.86 0.80 0.71 0.64 1.25% -- -- -- -- -- 1.25% 0.78 -- 0.81 0.76 0.72 1.30% 0.78 -- 0.81 0.76 0.72 1.45% 0.78 -- 0.80 0.75 0.72 ----------------------------------------------------------------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF INTL COMMODITY U.S. EQ U.S. EQ INTL EQ, VAL, PRICE LEVEL RETURN FLEX III FLEX I SERV SERV ---------------------------------------------------------------------------------------- 0.55% $0.75 $0.89 $ -- $ -- $ -- 0.75% 0.74 0.87 -- -- -- 0.85% 0.78 -- -- 0.78 0.74 0.95% 0.74 0.86 -- -- -- 1.00% 0.74 -- -- -- -- 1.05% 0.77 -- -- 0.78 0.74 1.10% 0.77 -- -- 0.78 0.74 1.20% 0.73 -- -- -- -- 1.25% -- -- -- -- -- 1.25% 0.77 -- 0.88 0.78 0.73 1.30% 0.77 -- -- 0.77 0.73 1.45% 0.77 -- -- 0.77 0.73 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 77
EV VT EG VA EG VA FID VIP FID VIP FLOATING- FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PRICE LEVEL RATE INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ---------------------------------------------------------------------------------------- 0.55% $0.76 $0.81 $1.07 $0.69 $0.75 0.75% 0.75 0.80 1.06 0.68 0.74 0.85% 0.75 0.80 0.77 0.73 -- 0.95% 0.75 0.79 1.05 0.68 0.73 1.00% 0.75 0.87 1.05 0.68 -- 1.05% 0.74 0.79 0.77 0.72 -- 1.10% 0.74 0.79 0.77 0.72 -- 1.20% 0.74 0.86 1.04 0.68 -- 1.25% -- -- -- -- -- 1.25% 0.74 0.79 0.77 0.72 -- 1.30% 0.74 0.79 0.76 0.72 -- 1.45% 0.74 0.79 0.76 0.71 -- ----------------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, PRICE LEVEL SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ---------------------------------------------------------------------------------------- 0.55% $0.82 $2.21 $1.43 $0.89 $1.08 0.75% 0.81 2.17 1.41 0.87 1.06 0.85% -- -- 0.75 -- 0.75 0.95% 0.80 2.13 1.39 0.86 1.05 1.00% 0.83 -- 1.35 -- 1.16 1.05% -- -- 0.74 -- 0.75 1.10% -- -- 0.74 -- 0.74 1.20% 0.81 -- 1.33 -- 1.14 1.25% -- -- -- -- -- 1.25% -- -- 0.74 -- 0.74 1.30% -- -- 0.74 -- 0.74 1.45% -- -- 0.74 -- 0.74 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR PRICE LEVEL REAL EST, CL 2 VAL, CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ---------------------------------------------------------------------------------------- 0.55% $1.48 $1.61 $0.98 $ -- $1.18 0.75% 1.45 1.58 0.97 -- 1.16 0.85% 0.55 0.70 0.73 -- -- 0.95% 1.42 1.55 0.96 -- 1.14 1.00% 1.06 1.18 1.01 -- -- 1.05% 0.54 0.70 0.73 -- -- 1.10% 0.54 0.70 0.73 -- -- 1.20% 1.05 1.16 0.99 -- -- 1.25% -- -- -- -- -- 1.25% 0.53 0.70 0.73 0.84 -- 1.30% 0.54 0.69 0.72 -- -- 1.45% 0.53 0.69 0.72 -- -- -----------------------------------------------------------------------------------------------------------------------------------
78 RIVERSOURCE VARIABLE ACCOUNT 10
GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM CAP STRUCTD U.S. GLOBAL OVERSEAS, PRICE LEVEL VAL, INST EQ, INST EQ, INST TECH, SERV SERV ---------------------------------------------------------------------------------------- 0.55% $1.74 $1.09 $0.72 $0.29 $0.82 0.75% 1.71 1.07 0.71 0.29 0.81 0.85% -- -- 0.69 -- -- 0.95% 1.68 1.05 0.70 0.28 0.80 1.00% 1.24 -- 0.84 0.72 1.40 1.05% -- -- 0.68 -- -- 1.10% -- -- 0.68 -- -- 1.20% 1.22 -- 0.83 0.71 1.38 1.25% -- -- -- -- -- 1.25% -- -- 0.68 -- -- 1.30% -- -- 0.68 -- -- 1.45% -- -- 0.68 -- -- ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LAZARD LM PTNRS VAR MFS INV JANUS, ENTERPRISE, RETIRE INTL SM CAP GRO, GRO STOCK, PRICE LEVEL SERV SERV EQ, SERV CL I SERV CL ---------------------------------------------------------------------------------------- 0.55% $0.63 $0.41 $0.87 $0.60 $0.49 0.75% 0.63 0.41 0.86 0.60 0.48 0.85% 0.63 -- -- 0.60 0.76 0.95% 0.63 0.40 0.84 0.60 0.48 1.00% 0.63 -- 1.21 0.60 0.75 1.05% 0.63 -- -- 0.60 0.75 1.10% 0.63 -- -- 0.60 0.75 1.20% 0.63 -- 1.20 0.59 0.74 1.25% -- -- -- -- -- 1.25% 0.63 -- -- 0.59 0.75 1.30% 0.63 -- -- 0.59 0.75 1.45% 0.63 -- -- 0.59 0.74 ----------------------------------------------------------------------------------------------------------------------------------- MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, PRICE LEVEL SERV CL SERV CL SERV CL CL S CL S ---------------------------------------------------------------------------------------- 0.55% $0.62 $0.99 $1.41 $0.57 $ -- 0.75% 0.61 0.98 1.39 0.57 -- 0.85% -- 0.88 0.97 0.64 0.73 0.95% 0.60 0.97 1.37 0.57 -- 1.00% 0.71 0.97 1.71 0.56 -- 1.05% -- 0.88 0.96 0.64 0.72 1.10% -- 0.88 0.96 0.63 0.72 1.20% 0.70 0.96 1.69 0.56 -- 1.25% -- -- -- -- -- 1.25% -- 0.87 0.96 0.63 0.72 1.30% -- 0.87 0.96 0.63 0.72 1.45% -- 0.87 0.95 0.63 0.72 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 79
OPPEN OPPEN OPPEN OPPEN PIMCO GLOBAL SEC MAIN ST SM CAP STRATEGIC BOND VAL VA, VIT ALL ASSET, PRICE LEVEL VA, SERV VA, SERV VA, SERV SERV ADVISOR CL ---------------------------------------------------------------------------------------- 0.55% $0.96 $0.87 $1.08 $ -- $0.94 0.75% 0.95 0.86 1.07 -- 0.93 0.85% 0.73 0.66 1.00 0.65 0.96 0.95% 0.94 0.85 1.06 -- 0.93 1.00% 0.94 0.85 1.05 -- 0.93 1.05% 0.72 0.66 0.99 0.65 0.95 1.10% 0.72 0.66 0.99 0.65 0.95 1.20% 0.93 0.84 1.04 -- 0.92 1.25% -- -- -- -- -- 1.25% 0.72 0.66 0.99 0.64 0.95 1.30% 0.72 0.65 0.98 0.64 0.95 1.45% 0.72 0.65 0.98 0.64 0.94 ----------------------------------------------------------------------------------------------------------------------------------- PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, GLOBAL HLTH INTL EQ, INTL NEW PRICE LEVEL CL II CL II CARE, CL IB CL IB OPP, CL IB ---------------------------------------------------------------------------------------- 0.55% $1.01 $0.62 $0.92 $0.99 $0.80 0.75% 0.99 0.62 0.90 0.98 0.78 0.85% -- -- -- -- -- 0.95% 0.98 0.61 0.89 0.96 0.77 1.00% 1.02 0.61 0.92 1.05 -- 1.05% -- -- -- -- -- 1.10% -- -- -- -- -- 1.20% 1.01 0.61 0.91 1.04 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.30% -- -- -- -- -- 1.45% -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- PUT VT PUT VT ROYCE DISC DISC NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, ASSET ALLOC, PRICE LEVEL CL IA CL IB INVEST CL AGGR CONSERV ---------------------------------------------------------------------------------------- 0.55% $ -- $0.60 $1.99 $0.70 $0.84 0.75% -- 0.59 1.95 0.71 0.84 0.85% -- -- -- 0.71 0.84 0.95% -- 0.58 1.92 0.71 0.84 1.00% -- 0.73 -- 0.71 0.84 1.05% -- -- -- 0.71 0.84 1.10% -- -- -- 0.71 0.84 1.20% -- 0.72 -- 0.71 0.84 1.25% -- -- -- -- -- 1.25% 0.94 -- -- 0.71 0.84 1.30% -- -- -- 0.71 0.84 1.45% -- -- -- 0.71 0.84 -----------------------------------------------------------------------------------------------------------------------------------
80 RIVERSOURCE VARIABLE ACCOUNT 10
DISC DISC DISC RVS PTNRS RVS PTNRS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, VP FUNDAMENTAL VP SELECT PRICE LEVEL MOD MOD AGGR MOD CONSERV VAL VAL ---------------------------------------------------------------------------------------- 0.55% $0.76 $0.73 $0.79 $0.69 $0.86 0.75% 0.76 0.74 0.80 0.68 0.85 0.85% 0.76 0.73 0.79 0.70 0.73 0.95% 0.76 0.73 0.79 0.68 0.84 1.00% 0.76 0.73 0.79 0.68 0.84 1.05% 0.76 0.73 0.79 0.70 0.72 1.10% 0.76 0.73 0.79 0.70 0.72 1.20% 0.76 0.73 0.79 0.67 0.83 1.25% -- -- -- -- -- 1.25% 0.76 0.73 0.79 0.69 0.72 1.30% 0.76 0.73 0.79 0.69 0.72 1.45% 0.76 0.73 0.79 0.69 0.72 ----------------------------------------------------------------------------------------------------------------------------------- RVS RVS RVS RVS RVS PTNRS VP VP VP VP VP PRICE LEVEL SM CAP VAL BAL CASH MGMT DIV BOND DIV EQ INC ---------------------------------------------------------------------------------------- 0.55% $1.24 $0.88 $1.25 $1.33 $1.16 0.75% 1.22 0.86 1.22 1.30 1.15 0.85% 0.72 0.79 1.07 1.02 0.71 0.95% 1.21 0.85 1.20 1.28 1.13 1.00% 1.14 0.94 1.10 1.12 1.14 1.05% 0.72 0.79 1.07 1.01 0.71 1.10% 0.71 0.79 1.07 1.01 0.71 1.20% 1.12 0.93 1.08 1.11 1.12 1.25% -- 0.78(1) 1.06(1) 1.01(1) -- 1.25% 0.71 1.30(2) 1.33(2) 1.40(2) 0.71 1.30% 0.71 0.78 1.06 1.01 0.71 1.45% 0.71 0.78 1.06 1.00 0.70 ----------------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP SEL RVS RVS GLOBAL GLOBAL INFLATION VP VP HI YIELD VP INC PRICE LEVEL BOND PROT SEC GRO BOND OPP ---------------------------------------------------------------------------------------- 0.55% $1.55 $1.13 $0.42 $1.05 $0.95 0.75% 1.52 1.12 0.41 1.03 0.94 0.85% 1.11 1.10 0.64 0.81 0.88 0.95% 1.49 1.11 0.41 1.01 0.93 1.00% 1.45 1.11 0.66 1.08 0.93 1.05% 1.10 1.09 0.64 0.80 0.87 1.10% 1.10 1.09 0.64 0.80 0.87 1.20% 1.43 1.10 0.65 1.06 0.92 1.25% 1.10(1) -- -- 0.80(1) -- 1.25% 1.61(2) 1.09 0.63 1.13(2) 0.87 1.30% 1.10 1.09 0.63 0.80 0.87 1.45% 1.09 1.08 0.63 0.80 0.86 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 81
RVS SEL VP RVS VP RVS VP RVS VP LG CAP MID CAP MID CAP VP PRICE LEVEL DYN EQ VAL GRO VAL S&P 500 ---------------------------------------------------------------------------------------- 0.55% $0.57 $0.81 $0.78 $0.82 $0.66 0.75% 0.56 0.80 0.75 0.81 0.65 0.85% 0.68 0.69 0.65 0.65 0.74 0.95% 0.55 0.79 0.74 0.81 0.64 1.00% 0.70 0.79 0.76 0.81 0.84 1.05% 0.67 0.69 0.65 0.65 0.74 1.10% 0.67 0.69 0.64 0.65 0.74 1.20% 0.75 0.78 0.75 0.80 0.83 1.25% 0.67(1) -- 0.64(1) -- -- 1.25% 0.89(2) 0.68 0.59(2) 0.64 0.74 1.30% 0.67 0.68 0.64 0.64 0.73 1.45% 0.67 0.68 0.64 0.64 0.73 ----------------------------------------------------------------------------------------------------------------------------------- RVS VP SEL VP THDL THDL THIRD SHORT SM CAP VP VP AVE PRICE LEVEL DURATION VAL EMER MKTS INTL OPP VAL ---------------------------------------------------------------------------------------- 0.55% $1.30 $1.04 $1.33 $0.76 $1.79 0.75% 1.27 1.03 1.29 0.74 1.75 0.85% 1.04 0.63 0.84 0.78 -- 0.95% 1.24 1.01 1.27 0.73 1.72 1.00% 1.09 0.97 1.69 1.15 -- 1.05% 1.03 0.63 0.84 0.77 -- 1.10% 1.03 0.63 0.84 0.77 -- 1.20% 1.07 0.95 1.67 1.13 -- 1.25% -- -- -- 0.77(1) -- 1.25% 1.03 0.63 0.84 0.99(2) -- 1.30% 1.03 0.63 0.84 0.77 -- 1.45% 1.02 0.63 0.83 0.77 -- ----------------------------------------------------------------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP WANGER WANGER PRICE LEVEL CL II EST, CL II GRO, CL II INTL USA ---------------------------------------------------------------------------------------- 0.55% $0.85 $0.62 $0.64 $1.44 $1.21 0.75% 0.85 0.61 0.64 1.42 1.18 0.85% 0.70 0.64 0.69 0.77 0.68 0.95% 0.84 0.61 0.63 1.39 1.16 1.00% 0.84 0.61 0.63 1.68 1.03 1.05% 0.70 0.64 0.69 0.77 0.67 1.10% 0.69 0.64 0.69 0.77 0.67 1.20% 0.83 0.61 0.63 1.66 1.02 1.25% -- -- -- -- -- 1.25% 0.69 0.64 0.69 0.76 0.67 1.30% 0.69 0.64 0.69 0.76 0.67 1.45% 0.69 0.63 0.68 0.76 0.67 -----------------------------------------------------------------------------------------------------------------------------------
82 RIVERSOURCE VARIABLE ACCOUNT 10
WF ADV WF ADV WF ADV WF ADV VT ASSET VT INTL VT VT PRICE LEVEL ALLOC CORE OPP SM CAP GRO ---------------------------------------------------------------------- 0.55% $0.98 $0.81 $0.87 $0.79 0.75% 0.96 0.80 0.86 0.78 0.85% -- -- 0.70 0.75 0.95% 0.95 0.79 0.84 0.76 1.00% 1.00 0.93 0.88 0.88 1.05% -- -- 0.70 0.75 1.10% -- -- 0.70 0.75 1.20% 0.98 0.91 0.87 0.87 1.25% -- -- -- -- 1.25% -- -- 0.69 0.74 1.30% -- -- 0.69 0.74 1.45% -- -- 0.69 0.74 --------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 83 The following is a summary of units outstanding at Dec. 31, 2008:
AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, PRICE LEVEL SER I SER II SER I SER II SER I ---------------------------------------------------------------------------------------- 0.55% 334,582 494,520 118,029 71,084 -- 0.75% 21,777,382 76,677,371 8,209,540 16,533,537 -- 0.85% -- 2,879,165 -- 2,546,415 -- 0.95% 19,004,099 38,700,474 8,401,950 9,784,103 -- 1.00% -- 12,622,269 -- 2,198,647 -- 1.05% -- 1,890,611 -- 1,749,877 -- 1.10% -- 451,510 -- 1,144,386 -- 1.20% -- 5,453,300 -- 1,232,216 -- 1.25% -- -- -- -- -- 1.25% -- 37,915 -- 95,175 92,624,670 1.30% -- 386,534 -- 674,062 -- 1.45% -- 187,617 -- 94,651 -- ----------------------------------------------------------------------------------------------------------------------------------- Total 41,116,063 139,781,286 16,729,519 36,124,153 92,624,670 ----------------------------------------------------------------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PRICE LEVEL SER I SER I SER II CARE, SER II SER II ---------------------------------------------------------------------------------------- 0.55% 8,268 148,745 -- 73,202 2,794,258 0.75% 4,638,942 13,624,616 -- 8,014,268 99,289,542 0.85% -- -- 3,710,725 3,220,194 191,749,041 0.95% 2,583,014 8,723,313 -- 5,239,869 53,710,631 1.00% 326,527 1,606,382 -- 922,702 14,785,233 1.05% -- -- 2,598,539 1,901,521 82,817,368 1.10% -- -- 1,064,595 830,495 53,378,184 1.20% 185,524 1,015,940 -- 665,335 7,388,621 1.25% -- -- -- -- -- 1.25% -- -- 141,747 21,300 2,466,960 1.30% -- -- 507,377 576,885 26,041,331 1.45% -- -- 602,776 138,029 3,345,475 ----------------------------------------------------------------------------------------------------------------------------------- Total 7,742,275 25,118,996 8,625,759 21,603,800 537,766,644 ----------------------------------------------------------------------------------------------------------------------------------- AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PRICE LEVEL SER I CL B CL B CL B CL B ---------------------------------------------------------------------------------------- 0.55% 350,748 48,685 452,303 3,352,177 -- 0.75% 19,001,391 3,749,739 84,420,059 202,780,132 -- 0.85% -- 1,964,104 5,991,900 295,091,221 1,324,916 0.95% 8,852,800 2,593,166 53,105,193 122,929,518 -- 1.00% 2,807,566 425,307 10,044,630 29,486,152 -- 1.05% -- 867,570 3,338,549 134,103,085 905,464 1.10% -- 587,365 1,591,882 87,243,773 150,304 1.20% 1,188,169 301,450 6,034,736 15,719,770 -- 1.25% -- -- -- -- -- 1.25% -- 38,402 213,001 5,357,523 11,979 1.30% -- 279,646 800,020 45,368,200 205,660 1.45% -- 114,443 193,030 7,867,773 50,202 ----------------------------------------------------------------------------------------------------------------------------------- Total 32,200,674 10,969,877 166,185,303 949,299,324 2,648,525 -----------------------------------------------------------------------------------------------------------------------------------
84 RIVERSOURCE VARIABLE ACCOUNT 10
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PRICE LEVEL CL I CL II CI II CL II CL I ---------------------------------------------------------------------------------------- 0.55% 19,661 286,439 1,326,672 71,843 524,281 0.75% 16,842,431 32,735,556 54,402,232 12,809,425 28,575,616 0.85% -- -- 74,526,856 3,394,814 -- 0.95% 17,170,970 19,242,029 30,504,371 7,930,956 27,547,101 1.00% -- 5,162,403 7,411,539 2,187,772 -- 1.05% -- -- 34,238,687 2,187,097 -- 1.10% -- -- 21,845,636 576,733 -- 1.20% -- 2,794,517 4,001,385 1,337,553 -- 1.25% -- -- -- -- -- 1.25% -- -- 1,325,059 59,501 60,139,062 1.30% -- -- 11,348,428 465,500 -- 1.45% -- -- 2,024,115 127,070 -- ----------------------------------------------------------------------------------------------------------------------------------- Total 34,033,062 60,220,944 242,954,980 31,148,264 116,786,060 ----------------------------------------------------------------------------------------------------------------------------------- AC VP CALVERT COL COL COL VAL, VS SOCIAL HI YIELD, MARSICO GRO, MARSICO INTL PRICE LEVEL CL II BAL VS CL B VS CL A OPP, VS CL B ---------------------------------------------------------------------------------------- 0.55% 483,039 23,623 402,184 6,505,956 730,412 0.75% 82,748,588 18,431,434 31,527,002 310,526,842 41,006,102 0.85% 10,332,687 -- 8,519,188 391,001,605 10,806,445 0.95% 56,747,017 12,239,912 19,526,933 176,790,643 26,848,710 1.00% 13,643,336 1,873,029 6,782,759 42,915,163 5,120,790 1.05% 8,787,746 -- 5,531,624 170,601,935 7,828,077 1.10% 3,834,803 -- 2,026,539 110,062,252 4,367,476 1.20% 8,079,109 1,073,069 4,864,234 20,912,508 2,856,682 1.25% -- -- -- -- -- 1.25% 477,178 -- 321,068 5,685,402 414,803 1.30% 2,591,474 -- 1,828,764 54,826,781 2,756,998 1.45% 939,425 -- 1,097,232 8,301,700 886,641 ----------------------------------------------------------------------------------------------------------------------------------- Total 188,664,402 33,641,067 82,427,527 1,298,130,787 103,623,136 ----------------------------------------------------------------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY U.S. EQ U.S. EQ INTL EQ, INTL VAL, PRICE LEVEL RETURN FLEX III FLEX I SERV SERV ---------------------------------------------------------------------------------------- 0.55% 506,006 18,221 -- -- -- 0.75% 30,400,230 6,134,171 -- -- -- 0.85% 6,606,217 -- -- 3,075,099 1,427,464 0.95% 22,010,674 5,548,570 -- -- -- 1.00% 4,848,135 -- -- -- -- 1.05% 4,551,520 -- -- 2,215,630 795,184 1.10% 3,330,004 -- -- 1,322,000 739,732 1.20% 2,963,150 -- -- -- -- 1.25% -- -- -- -- -- 1.25% 608,605 -- 61,041,326 230,202 40,838 1.30% 1,652,619 -- -- 826,409 268,423 1.45% 882,629 -- -- 316,722 76,024 ----------------------------------------------------------------------------------------------------------------------------------- Total 78,359,789 11,700,962 61,041,326 7,986,062 3,347,665 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 85
EV VT EG VA EG VA FID VIP FID VIP FLOATING- FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PRICE LEVEL RATE INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ---------------------------------------------------------------------------------------- 0.55% 2,025,446 46,682 408,178 8,517,858 225,656 0.75% 119,740,803 11,156,921 12,644,933 398,514,764 58,689,796 0.85% 165,980,725 1,826,913 4,122,737 379,750,804 -- 0.95% 79,726,546 8,058,921 8,283,333 237,020,331 55,844,015 1.00% 18,361,678 1,155,756 3,851,499 53,545,757 -- 1.05% 85,447,304 1,756,980 2,444,314 170,866,314 -- 1.10% 52,811,861 508,382 1,393,567 108,729,691 -- 1.20% 11,375,576 822,983 2,507,528 27,514,579 -- 1.25% -- -- -- -- -- 1.25% 4,095,293 66,198 97,461 6,247,130 -- 1.30% 33,620,621 633,639 1,018,080 55,331,067 -- 1.45% 8,356,246 207,610 194,261 9,818,221 -- ----------------------------------------------------------------------------------------------------------------------------------- Total 581,542,099 26,240,985 36,965,891 1,455,856,516 114,759,467 ----------------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, PRICE LEVEL SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ---------------------------------------------------------------------------------------- 0.55% 963,423 491,867 3,823,302 48,307 771,064 0.75% 113,689,810 44,233,714 236,346,279 25,279,544 53,512,528 0.85% -- -- 248,092,134 -- 10,112,648 0.95% 72,387,358 41,029,644 136,525,411 24,685,544 37,943,151 1.00% 14,570,137 -- 38,796,942 -- 6,431,911 1.05% -- -- 111,747,276 -- 5,706,737 1.10% -- -- 70,934,980 -- 1,886,530 1.20% 8,328,390 -- 20,609,850 -- 4,258,959 1.25% -- -- -- -- -- 1.25% -- -- 4,269,965 -- 371,557 1.30% -- -- 36,142,430 -- 1,669,733 1.45% -- -- 6,011,020 -- 624,069 ----------------------------------------------------------------------------------------------------------------------------------- Total 209,939,118 85,755,225 913,299,589 50,013,395 123,288,887 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR PRICE LEVEL REAL EST, CL 2 VAL, CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ---------------------------------------------------------------------------------------- 0.55% 262,109 465,331 670,338 -- 171,122 0.75% 62,872,555 52,033,372 68,254,575 -- 8,600,484 0.85% 13,507,827 12,624,660 17,651,926 -- -- 0.95% 39,491,093 36,256,253 47,291,975 -- 9,247,099 1.00% 9,150,118 8,815,419 14,362,472 -- -- 1.05% 6,069,901 6,684,113 13,358,347 -- -- 1.10% 3,060,369 3,508,279 7,975,528 -- -- 1.20% 5,481,079 4,646,605 8,192,535 -- -- 1.25% -- -- -- -- -- 1.25% 374,096 273,952 862,052 75,507,838 -- 1.30% 2,318,512 2,046,949 5,780,448 -- -- 1.45% 433,353 685,418 1,691,024 -- -- ----------------------------------------------------------------------------------------------------------------------------------- Total 143,021,012 128,040,351 186,091,220 75,507,838 18,018,705 -----------------------------------------------------------------------------------------------------------------------------------
86 RIVERSOURCE VARIABLE ACCOUNT 10
GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM CAP STRUCTD U.S. GLOBAL OVERSEAS, PRICE LEVEL VAL, INST EQ, INST EQ, INST TECH, SERV SERV ---------------------------------------------------------------------------------------- 0.55% 1,059,519 10,654 1,127,653 21,777 275,017 0.75% 97,290,500 4,573,647 131,281,768 23,828,354 69,375,063 0.85% -- -- 7,320,519 -- -- 0.95% 65,990,317 5,063,750 87,685,490 16,670,558 54,115,811 1.00% 16,557,856 -- 13,564,107 367,072 1,603,400 1.05% -- -- 3,713,934 -- -- 1.10% -- -- 1,887,213 -- -- 1.20% 10,447,894 -- 7,206,880 133,953 985,538 1.25% -- -- -- -- -- 1.25% -- -- 233,437 -- -- 1.30% -- -- 825,246 -- -- 1.45% -- -- 335,288 -- -- ----------------------------------------------------------------------------------------------------------------------------------- Total 191,346,086 9,648,051 255,181,535 41,021,714 126,354,829 ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LAZARD LM PTNRS VAR SM MFS INV JANUS, ENTERPRISE, RETIRE INTL CAP GRO, GRO STOCK, PRICE LEVEL SERV SERV EQ, SERV CL I SERV CL ---------------------------------------------------------------------------------------- 0.55% 6,239,983 29,805 276,574 127,019 259,579 0.75% 238,471,987 23,256,813 49,465,730 1,524,252 63,755,237 0.85% 430,106,512 -- -- 1,683,165 1,141,172 0.95% 128,192,290 15,191,217 36,022,067 1,202,673 44,360,260 1.00% 33,657,743 -- 3,562,105 443,067 4,927,467 1.05% 182,177,265 -- -- 928,535 807,002 1.10% 119,626,594 -- -- 405,831 556,220 1.20% 16,905,800 -- 2,272,143 130,077 2,427,165 1.25% -- -- -- -- -- 1.25% 5,624,421 -- -- 16,495 165,849 1.30% 57,558,933 -- -- 291,887 478,766 1.45% 7,616,942 -- -- 102,680 223,988 ----------------------------------------------------------------------------------------------------------------------------------- Total 1,226,178,470 38,477,835 91,598,619 6,855,681 119,102,705 ----------------------------------------------------------------------------------------------------------------------------------- MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, PRICE LEVEL SERV CL SERV CL SERV CL CL S CL S ---------------------------------------------------------------------------------------- 0.55% 92,497 257,404 821,249 1,970,943 -- 0.75% 32,038,898 27,797,845 67,988,825 78,811,467 -- 0.85% -- 8,001,862 18,558,588 119,726,122 833,148 0.95% 22,830,729 16,634,014 43,832,157 41,078,879 -- 1.00% 2,718,139 8,375,447 6,021,135 10,873,400 -- 1.05% -- 6,154,717 10,996,456 49,940,499 614,658 1.10% -- 2,816,259 4,902,934 32,228,593 441,516 1.20% 1,850,637 5,661,066 4,697,841 5,047,646 -- 1.25% -- -- -- -- -- 1.25% -- 607,479 436,478 1,455,200 69,763 1.30% -- 2,842,499 3,917,485 15,088,546 155,088 1.45% -- 842,005 1,003,491 1,894,513 84,044 ----------------------------------------------------------------------------------------------------------------------------------- Total 59,530,900 79,990,597 163,176,639 358,115,808 2,198,217 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 87
OPPEN OPPEN OPPEN OPPEN PIMCO GLOBAL SEC MAIN ST SM CAP STRATEGIC BOND VAL VA, VIT ALL ASSET, PRICE LEVEL VA, SERV VA, SERV VA, SERV SERV ADVISOR CL ---------------------------------------------------------------------------------------- 0.55% 777,210 646,459 8,497,657 -- 4,627,806 0.75% 36,705,334 27,205,348 569,070,333 -- 228,911,853 0.85% 7,145,054 7,813,979 420,661,172 1,604,241 346,274,533 0.95% 24,949,709 18,860,697 395,297,855 -- 131,660,654 1.00% 8,456,142 7,256,325 82,157,199 -- 31,669,207 1.05% 5,426,132 5,372,851 222,193,555 1,236,337 158,174,171 1.10% 2,482,848 3,709,685 133,106,908 557,531 101,672,743 1.20% 4,437,175 3,183,875 58,676,811 -- 18,405,592 1.25% -- -- -- -- -- 1.25% 521,106 261,826 11,659,407 73,878 5,994,714 1.30% 1,611,931 1,924,751 90,371,518 440,545 54,963,803 1.45% 693,339 349,534 21,802,559 322,705 9,429,990 ----------------------------------------------------------------------------------------------------------------------------------- Total 93,205,980 76,585,330 2,013,494,974 4,235,237 1,091,785,066 ----------------------------------------------------------------------------------------------------------------------------------- PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, GLOBAL HLTH INTL EQ, INTL NEW PRICE LEVEL CL II CL II CARE, CL IB CL IB OPP, CL IB ---------------------------------------------------------------------------------------- 0.55% 51,623 1,723 111,413 90,603 55,513 0.75% 16,672,481 2,949,284 15,247,879 20,501,696 26,132,884 0.85% -- -- -- -- -- 0.95% 11,354,735 1,474,082 8,550,511 13,381,157 22,216,528 1.00% 2,700,337 150,181 2,705,053 2,476,243 -- 1.05% -- -- -- -- -- 1.10% -- -- -- -- -- 1.20% 1,295,981 153,781 1,192,440 1,497,175 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.30% -- -- -- -- -- 1.45% -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Total 32,075,157 4,729,051 27,807,296 37,946,874 48,404,925 ----------------------------------------------------------------------------------------------------------------------------------- PUT VT PUT VT ROYCE DISC DISC NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, ASSET ALLOC, PRICE LEVEL CL IA CL IB INVEST CL AGGR CONSERV ---------------------------------------------------------------------------------------- 0.55% -- 221,350 80,869 547,300 462 0.75% -- 25,511,348 12,387,969 6,187,988 11,486,633 0.85% -- -- -- 876,606 1,568,798 0.95% -- 20,077,211 11,919,281 3,115,383 7,435,743 1.00% -- 600,640 -- 87,810 1,581,838 1.05% -- -- -- 494,261 775,972 1.10% -- -- -- 169,338 435,909 1.20% -- 263,524 -- 65,849 1,505,543 1.25% -- -- -- -- -- 1.25% 71,705,241 -- -- 13,998 107,101 1.30% -- -- -- 196,692 275,060 1.45% -- -- -- 11,124 253,287 ----------------------------------------------------------------------------------------------------------------------------------- Total 71,705,241 46,674,073 24,388,119 11,766,349 25,426,346 -----------------------------------------------------------------------------------------------------------------------------------
88 RIVERSOURCE VARIABLE ACCOUNT 10
DISC DISC DISC RVS PTNRS RVS PTNRS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, VP FUNDAMENTAL VP SELECT PRICE LEVEL MOD MOD AGGR MOD CONSERV VAL VAL ---------------------------------------------------------------------------------------- 0.55% 294 67,406 341 4,640,773 73,773 0.75% 25,616,854 16,957,909 11,804,569 183,634,773 6,409,296 0.85% 2,113,753 1,980,084 1,295,070 315,690,327 670,885 0.95% 15,034,148 9,299,453 8,524,461 98,708,416 3,806,863 1.00% 2,012,837 1,761,805 829,220 25,635,861 766,117 1.05% 1,254,485 763,777 660,414 135,010,099 682,033 1.10% 633,768 965,174 324,353 88,037,155 95,250 1.20% 1,183,836 466,317 993,493 12,895,958 613,700 1.25% -- -- -- -- -- 1.25% 77,929 52,164 140,805 4,317,439 31,508 1.30% 781,871 705,097 264,187 42,821,756 144,883 1.45% 656,372 44,104 421,016 5,980,919 118,555 ----------------------------------------------------------------------------------------------------------------------------------- Total 49,366,147 33,063,290 25,257,929 917,373,476 13,412,863 ----------------------------------------------------------------------------------------------------------------------------------- RVS RVS RVS RVS RVS PTNRS VP VP VP VP VP PRICE LEVEL SM CAP VAL BAL CASH MGMT DIV BOND DIV EQ INC ---------------------------------------------------------------------------------------- 0.55% 3,352,745 601,903 10,988,286 8,140,047 8,564,930 0.75% 156,844,802 61,707,319 399,214,317 610,707,397 530,216,409 0.85% 309,935,374 2,681,857 97,398,827 788,507,388 581,358,836 0.95% 85,345,437 51,094,805 290,094,588 430,992,576 329,220,189 1.00% 23,170,368 2,967,298 51,260,063 93,379,102 64,717,330 1.05% 131,215,077 2,259,805 78,386,136 396,543,690 252,045,764 1.10% 85,155,513 1,156,628 37,394,563 248,818,203 159,468,652 1.20% 11,505,771 2,378,395 39,093,996 63,727,975 36,755,159 1.25% -- 134,173(1) 12,816,552(1) 18,072,199(1) -- 1.25% 3,929,528 63,701,335(2) 52,399,249(2) 74,131,607(2) 9,200,790 1.30% 40,608,784 621,726 30,883,306 147,501,926 78,564,240 1.45% 5,050,298 374,971 21,134,877 31,169,998 12,673,168 ----------------------------------------------------------------------------------------------------------------------------------- Total 856,113,697 189,680,215 1,121,064,760 2,911,692,108 2,062,785,467 ----------------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP SEL RVS RVS GLOBAL GLOBAL INFLATION VP VP HI YIELD VP INC PRICE LEVEL BOND PROT SEC GRO BOND OPP ---------------------------------------------------------------------------------------- 0.55% 2,861,461 2,306,667 2,601,422 712,545 2,233,181 0.75% 201,728,213 171,392,662 180,649,751 147,297,183 128,652,781 0.85% 259,518,115 159,104,784 3,524,294 13,873,781 209,056,281 0.95% 142,773,297 113,443,633 116,109,820 125,862,474 76,770,302 1.00% 26,925,040 23,320,982 12,689,192 13,015,658 19,611,974 1.05% 130,419,638 81,236,100 2,743,008 10,347,147 95,420,462 1.10% 79,448,630 48,592,562 1,180,609 2,850,235 59,935,013 1.20% 18,675,293 17,318,682 6,110,088 11,972,724 11,539,828 1.25% 6,375,913(1) -- -- 714,032(1) -- 1.25% 24,386,931(2) 3,984,798 110,445 42,231,376(2) 3,301,888 1.30% 47,521,320 30,532,774 585,539 2,938,499 31,637,714 1.45% 9,621,145 7,066,773 206,042 1,461,066 4,855,042 ----------------------------------------------------------------------------------------------------------------------------------- Total 950,254,996 658,300,417 326,510,210 373,276,720 643,014,466 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 89
RVS SEL VP RVS VP RVS VP RVS VP LG CAP MID CAP MID CAP VP PRICE LEVEL DYN EQ VAL GRO VAL S&P 500 ---------------------------------------------------------------------------------------- 0.55% 1,397,402 67,114 242,166 1,657,590 1,446,745 0.75% 301,682,462 5,696,138 38,729,554 76,989,249 100,420,242 0.85% 1,237,132 794,264 1,407,059 94,510,590 4,519,763 0.95% 180,806,528 2,900,279 25,503,598 45,362,485 73,795,088 1.00% 18,985,803 582,335 2,134,606 9,681,728 7,849,412 1.05% 913,531 542,537 950,667 41,871,295 3,648,846 1.10% 365,994 99,997 309,449 25,171,256 1,025,614 1.20% 7,478,560 583,791 1,169,855 5,048,866 5,854,415 1.25% 123,420(1) -- 46,177(1) -- -- 1.25% 171,960,627(2) 4,875 43,646,676(2) 1,355,715 213,564 1.30% 443,541 159,193 152,661 12,410,407 1,062,029 1.45% 85,996 23,201 80,734 1,748,806 475,746 ----------------------------------------------------------------------------------------------------------------------------------- Total 685,480,996 11,453,724 114,373,202 315,807,987 200,311,464 ----------------------------------------------------------------------------------------------------------------------------------- RVS VP SEL VP THDL THDL THIRD PRICE LEVEL SHORT SM CAP VP VP AVE ----------- DURATION VAL EMER MKTS INTL OPP VAL ---------------------------------------------------------------------------------------- 0.55% 1,393,673 112,758 2,437,171 1,079,555 123,078 0.75% 125,698,228 26,621,006 111,551,151 55,411,979 16,208,807 0.85% 18,319,220 1,212,912 170,447,418 3,440,205 -- 0.95% 108,777,916 18,734,416 61,879,039 42,730,007 15,599,608 1.00% 12,804,391 2,382,750 11,453,365 3,748,204 -- 1.05% 13,686,085 744,537 71,157,189 3,287,660 -- 1.10% 3,556,236 263,065 45,351,704 1,655,811 -- 1.20% 13,971,810 1,315,220 5,786,755 2,196,555 -- 1.25% -- -- -- 145,077(1) -- 1.25% 1,011,172 22,021 2,146,433 68,927,594(2) -- 1.30% 5,026,384 122,502 21,216,440 1,341,652 -- 1.45% 2,702,814 21,902 2,601,465 181,914 -- ----------------------------------------------------------------------------------------------------------------------------------- Total 306,947,929 51,553,089 506,028,130 184,146,213 31,931,493 ----------------------------------------------------------------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP WANGER WANGER PRICE LEVEL CL II EST, CL II GRO, CL II INTL USA ---------------------------------------------------------------------------------------- 0.55% 3,700,133 1,960,720 270,248 2,432,981 3,271,785 0.75% 227,595,374 88,969,495 17,545,582 142,735,670 176,482,846 0.85% 251,842,860 117,565,988 4,975,067 120,530,484 123,418,202 0.95% 120,655,728 50,325,807 11,265,700 88,898,507 117,299,321 1.00% 43,693,859 14,095,438 2,776,221 16,310,865 28,343,552 1.05% 107,604,361 50,443,363 2,825,415 53,866,501 53,861,215 1.10% 70,084,528 32,801,314 2,003,236 32,472,197 34,099,357 1.20% 21,700,987 7,112,725 1,487,006 8,509,220 14,444,374 1.25% -- -- -- -- -- 1.25% 3,644,943 1,623,651 162,971 1,818,673 2,064,005 1.30% 34,546,185 15,704,699 1,340,043 16,160,427 16,958,049 1.45% 5,242,654 2,112,040 268,175 2,385,625 2,339,521 ----------------------------------------------------------------------------------------------------------------------------------- Total 890,311,612 382,715,240 44,919,664 486,121,150 572,582,227 -----------------------------------------------------------------------------------------------------------------------------------
90 RIVERSOURCE VARIABLE ACCOUNT 10
WF ADV WF ADV WF ADV WF ADV VT ASSET VT INTL VT VT PRICE LEVEL ALLOC CORE OPP SM CAP GRO ---------------------------------------------------------------------- 0.55% 4,338 1,180 181,851 258,403 0.75% 25,423,212 5,126,437 22,799,087 29,487,809 0.85% -- -- 1,766,645 5,756,853 0.95% 19,991,897 3,896,782 13,584,885 19,000,271 1.00% 2,738,896 498,388 3,344,042 3,049,622 1.05% -- -- 1,079,910 3,443,769 1.10% -- -- 883,423 1,466,960 1.20% 1,710,717 156,840 1,471,554 1,359,732 1.25% -- -- -- -- 1.25% -- -- 39,555 182,631 1.30% -- -- 295,785 1,062,682 1.45% -- -- 67,161 333,867 -------------------------------------------------------------------------------------------------------------------------- Total 49,869,060 9,679,627 45,513,898 65,402,599 --------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 91 The following is a summary of net assets at Dec. 31, 2008:
AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, PRICE LEVEL SER I SER II SER I SER II SER I ---------------------------------------------------------------------------------------- 0.55% $ 222,791 $ 355,921 $ 131,606 $ 60,936 $ -- 0.75% 14,288,020 54,378,550 8,985,506 13,960,687 -- 0.85% -- 1,973,335 -- 1,617,742 -- 0.95% 12,234,672 27,053,553 9,031,110 8,151,439 -- 1.00% -- 9,391,262 -- 1,924,023 -- 1.05% -- 1,289,319 -- 1,103,251 -- 1.10% -- 307,506 -- 720,654 -- 1.20% -- 4,008,069 -- 1,063,606 -- 1.25% -- -- -- -- -- 1.25% -- 25,720 -- 59,707 136,521,974 1.30% -- 261,919 -- 422,215 -- 1.45% -- 126,675 -- 59,080 -- ----------------------------------------------------------------------------------------------------------------------------------- Total $26,745,483 $99,171,829 $ 18,148,222 $ 29,143,340 $136,521,974 ----------------------------------------------------------------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PRICE LEVEL SER I SER I SER II CARE, SER II SER II ---------------------------------------------------------------------------------------- 0.55% $ 6,087 $ 64,715 $ -- $ 58,896 $ 2,611,700 0.75% 3,373,531 5,838,161 -- 6,421,717 92,236,608 0.85% -- -- 1,368,044 2,728,161 158,616,570 0.95% 1,852,286 3,684,503 -- 4,176,098 49,570,498 1.00% 256,094 719,429 -- 734,423 13,623,737 1.05% -- -- 933,952 1,602,628 68,163,364 1.10% -- -- 382,183 699,120 43,877,324 1.20% 143,514 448,682 -- 526,792 6,765,093 1.25% -- -- -- -- -- 1.25% -- -- 50,699 17,862 2,020,195 1.30% -- -- 181,234 483,110 21,298,423 1.45% -- -- 214,506 115,171 2,725,779 ----------------------------------------------------------------------------------------------------------------------------------- Total $ 5,631,512 $10,755,490 $ 3,130,618 $ 17,563,978 $461,509,291 ----------------------------------------------------------------------------------------------------------------------------------- AIM AB VPS AB VPS AB VPS AB VPS VI TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PRICE LEVEL SER I CL B CL B CL B CL B ---------------------------------------------------------------------------------------- 0.55% $ 167,375 $ 34,569 $ 365,393 $ 4,221,637 $ -- 0.75% 8,934,314 2,650,436 67,340,843 248,633,179 -- 0.85% -- 1,404,020 4,313,432 177,742,102 975,420 0.95% 4,101,255 1,821,451 41,652,033 148,616,109 -- 1.00% 1,521,978 298,256 8,554,281 36,948,367 -- 1.05% -- 617,006 2,383,781 80,405,841 663,241 1.10% -- 417,203 1,135,280 52,218,576 109,960 1.20% 635,153 210,054 5,068,885 19,424,307 -- 1.25% -- -- -- -- -- 1.25% -- 27,173 151,282 3,194,511 8,731 1.30% -- 197,581 567,664 27,017,584 149,698 1.45% -- 80,575 136,451 4,672,751 36,404 ----------------------------------------------------------------------------------------------------------------------------------- Total $15,360,075 $ 7,758,324 $131,669,325 $803,094,964 $ 1,943,454 -----------------------------------------------------------------------------------------------------------------------------------
92 RIVERSOURCE VARIABLE ACCOUNT 10
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PRICE LEVEL CL I CL II CL II CL II CL I ---------------------------------------------------------------------------------------- 0.55% $ 16,665 $ 267,198 $ 900,367 $ 49,893 $ 682,504 0.75% 14,041,871 30,111,024 36,801,441 8,837,877 36,591,004 0.85% -- -- 62,546,086 2,448,550 -- 0.95% 14,024,380 17,476,364 20,592,829 5,437,616 34,730,596 1.00% -- 5,400,319 4,992,214 1,497,565 -- 1.05% -- -- 28,608,752 1,569,378 -- 1.10% -- -- 18,218,338 413,374 -- 1.20% -- 2,886,971 2,686,153 909,760 -- 1.25% -- -- -- -- -- 1.25% -- -- 1,100,847 42,370 113,347,280 1.30% -- -- 9,416,164 331,923 -- 1.45% -- -- 1,673,110 90,283 -- ----------------------------------------------------------------------------------------------------------------------------------- Total $ 28,082,916 $56,141,876 $187,536,301 $ 21,628,589 $185,351,384 ----------------------------------------------------------------------------------------------------------------------------------- AC VP CALVERT COL COL COL VAL, VS SOCIAL HI YIELD, MARSICO GRO, VS MARSICO INTL PRICE LEVEL CL II BAL VS CL B CL A OPP, VS CL B ---------------------------------------------------------------------------------------- 0.55% $ 531,611 $ 18,674 $ 326,798 $ 4,783,268 $ 476,245 0.75% 89,827,321 14,349,208 25,479,593 222,535,136 26,629,488 0.85% 8,192,022 -- 6,945,042 299,373,741 7,918,617 0.95% 60,946,244 9,385,229 15,760,622 126,130,345 17,471,854 1.00% 14,457,331 1,626,794 5,445,511 30,542,345 3,298,769 1.05% 6,932,000 -- 4,486,658 129,972,114 5,683,336 1.10% 3,021,182 -- 1,641,692 83,739,857 3,166,816 1.20% 8,443,539 919,178 3,884,262 14,803,446 1,834,142 1.25% -- -- -- -- -- 1.25% 374,505 -- 259,110 4,309,399 299,611 1.30% 2,031,162 -- 1,473,902 41,503,029 1,988,999 1.45% 733,584 -- 881,012 6,260,521 637,193 ----------------------------------------------------------------------------------------------------------------------------------- Total $195,490,501 $26,299,083 $ 66,584,202 $963,953,201 $ 69,405,070 ----------------------------------------------------------------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY U.S. EQ U.S. EQ INTL EQ, INTL VAL, PRICE LEVEL RETURN FLEX III FLEX I SERV SERV ---------------------------------------------------------------------------------------- 0.55% $ 378,748 $ 16,195 $ -- $ -- $ -- 0.75% 22,607,951 5,355,864 -- -- -- 0.85% 5,137,825 -- -- 2,409,266 1,056,725 0.95% 16,288,100 4,752,702 -- -- -- 1.00% 3,580,846 -- -- -- -- 1.05% 3,529,057 -- -- 1,727,168 585,542 1.10% 2,573,099 -- -- 1,029,198 544,054 1.20% 2,176,826 -- -- -- -- 1.25% -- -- -- -- -- 1.25% 468,631 -- 54,325,711 178,529 29,921 1.30% 1,270,530 -- -- 640,146 196,418 1.45% 679,351 -- -- 244,396 55,420 ----------------------------------------------------------------------------------------------------------------------------------- Total $ 58,690,964 $10,124,761 $ 54,325,711 $ 6,228,703 $ 2,468,080 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 93
EV VT EG VA EG VA FID VIP FID VIP FLOATING- FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PRICE LEVEL RATE INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ---------------------------------------------------------------------------------------- 0.55% $ 1,530,585 $ 37,841 $ 437,261 $ 5,857,413 $ 171,253 0.75% 90,088,352 8,914,326 13,411,317 272,840,908 43,517,910 0.85% 124,104,154 1,457,394 3,188,466 275,621,826 -- 0.95% 59,702,072 6,374,749 8,705,800 161,561,393 40,647,494 1.00% 13,718,012 1,009,356 4,034,077 36,400,113 -- 1.05% 63,573,475 1,394,478 1,880,776 123,395,985 -- 1.10% 39,237,671 402,962 1,070,956 78,407,011 -- 1.20% 8,446,346 721,502 2,600,238 18,600,083 -- 1.25% -- -- -- -- -- 1.25% 3,031,047 52,301 74,596 4,487,872 -- 1.30% 24,853,260 499,769 778,450 39,699,568 -- 1.45% 6,153,774 163,155 147,976 7,017,758 -- ----------------------------------------------------------------------------------------------------------------------------------- Total $434,438,748 $ 21,027,833 $ 36,329,913 $1,023,889,930 $ 84,336,657 ----------------------------------------------------------------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, PRICE LEVEL SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ---------------------------------------------------------------------------------------- 0.55% $ 790,570 $ 1,098,410 $ 5,484,968 $ 42,957 $ 830,205 0.75% 92,079,788 96,385,454 334,387,168 22,194,712 56,858,190 0.85% -- -- 185,442,665 -- 7,591,268 0.95% 57,901,248 87,813,943 190,512,058 21,223,165 39,783,052 1.00% 12,038,831 -- 52,291,783 -- 7,458,378 1.05% -- -- 83,131,992 -- 4,257,421 1.10% -- -- 52,688,586 -- 1,403,941 1.20% 6,786,880 -- 27,404,165 -- 4,871,083 1.25% -- -- -- -- -- 1.25% -- -- 3,159,600 -- 275,483 1.30% -- -- 26,709,964 -- 1,236,563 1.45% -- -- 4,425,517 -- 460,367 ----------------------------------------------------------------------------------------------------------------------------------- Total $169,597,317 $185,297,807 $965,638,466 $ 43,460,834 $125,025,951 ----------------------------------------------------------------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT FTVIPT FTVIPT FRANK GLOBAL FRANK SM CAP MUTUAL SHARES TEMP DEV MKTS TEMP FOR PRICE LEVEL REAL EST, CL 2 VAL, CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ---------------------------------------------------------------------------------------- 0.55% $ 390,262 $ 748,778 $ 659,814 $ -- $ 201,082 0.75% 91,228,599 82,280,773 66,325,471 -- 10,043,950 0.85% 7,362,897 8,868,670 12,887,185 -- -- 0.95% 56,347,248 56,318,069 45,252,978 -- 10,581,414 1.00% 9,709,440 10,376,316 14,471,911 -- -- 1.05% 3,295,181 4,671,537 9,703,473 -- -- 1.10% 1,657,635 2,448,861 5,785,976 -- -- 1.20% 5,741,397 5,394,452 8,155,243 -- -- 1.25% -- -- -- -- -- 1.25% 199,964 190,869 627,521 63,394,572 -- 1.30% 1,249,403 1,421,628 4,172,409 -- -- 1.45% 234,061 475,268 1,224,766 -- -- ----------------------------------------------------------------------------------------------------------------------------------- Total $177,416,087 $173,195,221 $169,266,747 $ 63,394,572 $ 20,826,446 -----------------------------------------------------------------------------------------------------------------------------------
94 RIVERSOURCE VARIABLE ACCOUNT 10
GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM CAP STRUCTD U.S. GLOBAL OVERSEAS, PRICE LEVEL VAL, INST EQ, INST EQ, INST TECH, SERV SERV ---------------------------------------------------------------------------------------- 0.55% $ 1,843,786 $ 11,581 $ 828,656 $ 6,380 $ 226,392 0.75% 166,315,886 4,882,979 93,248,753 6,864,473 56,187,632 0.85% -- -- 5,035,965 -- -- 0.95% 110,805,223 5,328,420 61,217,836 4,766,256 43,204,857 1.00% 20,472,243 -- 11,383,943 265,328 2,248,804 1.05% -- -- 2,542,091 -- -- 1.10% -- -- 1,289,963 -- -- 1.20% 12,746,416 -- 5,965,688 95,495 1,363,279 1.25% -- -- -- -- -- 1.25% -- -- 158,935 -- -- 1.30% -- -- 561,297 -- -- 1.45% -- -- 227,226 -- -- ----------------------------------------------------------------------------------------------------------------------------------- Total $312,183,554 $10,222,980 $182,460,353 $ 11,997,932 $103,230,964 ----------------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN LAZARD LM PTNRS VAR MFS INV JANUS, ENTERPRISE, RETIRE INTL SM CAP GRO, GRO STOCK, PRICE LEVEL SERV SERV EQ, SERV CL I SERV CL ---------------------------------------------------------------------------------------- 0.55% $ 3,961,047 $ 12,295 $ 241,788 $ 76,422 $ 127,895 0.75% 150,882,052 9,431,357 42,497,829 913,845 30,905,698 0.85% 271,655,483 -- -- 1,007,388 862,563 0.95% 80,832,113 6,060,610 30,491,609 718,623 21,137,192 1.00% 21,204,860 -- 4,317,168 264,511 3,682,196 1.05% 114,679,209 -- -- 553,884 606,905 1.10% 75,242,138 -- -- 241,814 417,778 1.20% 10,615,359 -- 2,740,382 77,394 1,788,866 1.25% -- -- -- -- -- 1.25% 3,528,698 -- -- 9,809 124,091 1.30% 36,081,852 -- -- 173,304 357,767 1.45% 4,762,623 -- -- 60,837 166,752 ----------------------------------------------------------------------------------------------------------------------------------- Total $773,445,434 $15,504,262 $ 80,288,776 $ 4,097,831 $ 60,177,703 ----------------------------------------------------------------------------------------------------------------------------------- MFS MFS MFS NB AMT NB AMT SOC NEW DIS, TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, PRICE LEVEL SERV CL SERV CL SERV CL CL S CL S ---------------------------------------------------------------------------------------- 0.55% $ 56,998 $ 255,256 $ 1,158,977 $ 1,126,741 $ -- 0.75% 19,424,060 27,337,422 94,737,722 44,815,505 -- 0.85% -- 7,056,044 17,964,953 76,446,946 606,705 0.95% 13,605,693 16,173,787 60,214,652 23,244,419 -- 1.00% 1,923,941 8,122,067 10,294,306 6,141,827 -- 1.05% -- 5,484,810 10,591,146 31,725,767 445,420 1.10% -- 2,467,794 4,716,142 20,448,134 319,484 1.20% 1,292,032 5,434,842 7,922,015 2,835,774 -- 1.25% -- -- -- -- -- 1.25% -- 530,104 418,234 919,920 50,291 1.30% -- 2,478,242 3,749,212 9,525,134 111,657 1.45% -- 731,185 956,783 1,191,417 60,280 ----------------------------------------------------------------------------------------------------------------------------------- Total $ 36,302,724 $76,071,553 $212,724,142 $218,421,584 $ 1,593,837 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 95
OPPEN OPPEN OPPEN OPPEN PIMCO GLOBAL SEC MAIN ST SM CAP STRATEGIC BOND VAL VA, VIT ALL ASSET, PRICE LEVEL VA, SERV VA, SERV VA, SERV SERV ADVISOR CL ---------------------------------------------------------------------------------------- 0.55% $ 747,984 $ 561,792 $ 9,406,854 $ -- $ 4,348,330 0.75% 34,922,188 23,422,946 607,806,185 -- 214,021,337 0.85% 5,187,274 5,174,420 418,709,159 1,041,389 331,110,453 0.95% 23,541,516 16,123,242 418,535,755 -- 122,587,167 1.00% 7,935,043 6,166,251 86,649,716 -- 29,385,583 1.05% 3,952,054 3,539,939 220,174,372 798,795 150,507,268 1.10% 1,791,029 2,441,113 131,647,215 359,844 96,608,875 1.20% 4,122,516 2,678,681 61,232,202 -- 16,996,452 1.25% -- -- -- -- -- 1.25% 374,512 171,661 11,487,466 47,519 5,674,688 1.30% 1,156,925 1,260,113 88,919,440 283,025 51,960,836 1.45% 495,784 227,895 21,391,823 206,606 8,881,125 ----------------------------------------------------------------------------------------------------------------------------------- Total $84,226,825 $61,768,053 $2,075,960,187 $ 2,737,178 $1,032,082,114 ----------------------------------------------------------------------------------------------------------------------------------- PIONEER PIONEER PUT VT PUT VT PUT VT EQ INC VCT, INTL VAL VCT, GLOBAL HLTH INTL EQ, INTL NEW PRICE LEVEL CL II CL II CARE, CL IB CL IB OPP, CL IB ---------------------------------------------------------------------------------------- 0.55% $ 51,997 $ 1,112 $ 102,086 $ 89,685 $ 44,393 0.75% 16,648,998 1,817,370 13,789,339 20,005,472 20,538,315 0.85% -- -- -- -- -- 0.95% 11,116,894 904,464 7,619,128 12,880,734 17,118,629 1.00% 2,764,255 92,071 2,496,037 2,606,668 -- 1.05% -- -- -- -- -- 1.10% -- -- -- -- -- 1.20% 1,308,480 93,892 1,085,037 1,554,396 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.30% -- -- -- -- -- 1.45% -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Total $31,890,624 $ 2,908,909 $ 25,091,627 $37,136,955 $ 37,701,337 ----------------------------------------------------------------------------------------------------------------------------------- PUT VT PUT VT ROYCE DISC DISC NEW OPP, VISTA, MICRO-CAP, ASSET ALLOC, ASSET ALLOC, PRICE LEVEL CL IA CL IB INVEST CL AGGR CONSERV ---------------------------------------------------------------------------------------- 0.55% $ -- $ 133,571 $ 160,876 $ 389,363 $ 388 0.75% -- 15,173,049 24,218,869 4,388,515 9,657,500 0.85% -- -- -- 621,277 1,318,110 0.95% -- 11,696,451 22,992,984 2,206,498 6,243,225 1.00% -- 435,828 -- 62,168 1,327,716 1.05% -- -- -- 349,828 651,097 1.10% -- -- -- 119,817 365,641 1.20% -- 188,606 -- 46,560 1,262,005 1.25% -- -- -- -- -- 1.25% 68,211,033 -- -- 9,894 89,745 1.30% -- -- -- 138,980 230,417 1.45% -- -- -- 7,905 211,957 ----------------------------------------------------------------------------------------------------------------------------------- Total $68,211,033 $27,627,505 $ 47,372,729 $ 8,340,805 $ 21,357,801 -----------------------------------------------------------------------------------------------------------------------------------
96 RIVERSOURCE VARIABLE ACCOUNT 10
DISC DISC DISC RVS PTNRS RVS PTNRS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, VP FUNDAMENTAL VP SELECT PRICE LEVEL MOD MOD AGGR MOD CONSERV VAL VAL ---------------------------------------------------------------------------------------- 0.55% $ 223 $ 49,293 $ 270 $ 3,204,160 $ 63,461 0.75% 19,504,138 12,513,512 9,385,657 125,197,594 5,460,195 0.85% 1,625,218 1,487,107 1,029,001 221,197,915 488,676 0.95% 11,405,239 6,851,094 6,781,539 67,002,357 3,217,836 1.00% 1,526,080 1,293,531 658,198 17,361,236 644,578 1.05% 1,126,397 628,695 524,037 94,122,929 494,302 1.10% 480,183 708,190 257,294 61,298,686 68,944 1.20% 896,361 341,914 787,544 8,686,904 511,229 1.25% -- -- -- -- -- 1.25% 58,984 38,236 111,576 2,994,865 22,720 1.30% 591,689 516,677 209,278 29,666,008 104,343 1.45% 559,547 32,284 333,176 4,127,958 85,067 ----------------------------------------------------------------------------------------------------------------------------------- Total $ 37,774,059 $ 24,460,533 $ 20,077,570 $ 634,860,612 $ 11,161,351 ----------------------------------------------------------------------------------------------------------------------------------- RVS RVS RVS RVS RVS PTNRS VP VP VP VP VP PRICE LEVEL SM CAP VAL BAL CASH MGMT DIV BOND DIV EQ INC ---------------------------------------------------------------------------------------- 0.55% $ 4,151,407 $ 743,067 $ 13,682,152 $ 10,808,188 $ 10,069,709 0.75% 192,078,834 53,680,296 487,983,010 797,267,264 609,562,328 0.85% 222,937,472 2,121,509 104,647,720 802,804,499 414,777,613 0.95% 103,057,568 43,967,936 348,188,613 552,591,772 372,172,665 1.00% 26,384,953 2,862,129 56,214,406 104,777,889 74,100,986 1.05% 93,915,640 1,859,071 83,797,804 401,777,642 178,961,972 1.10% 60,866,868 909,193 39,929,990 251,761,178 113,066,063 1.20% 12,934,457 2,216,225 42,286,228 70,580,268 41,267,278 1.25% -- 105,074(1) 13,633,961(1) 18,215,451(1) -- 1.25% 2,798,220 85,102,345(2) 69,609,604(2) 105,210,313(2) 6,498,247 1.30% 28,879,916 486,270 32,806,443 148,486,495 55,417,502 1.45% 3,578,203 292,183 22,368,164 31,260,205 8,913,957 ----------------------------------------------------------------------------------------------------------------------------------- Total $ 751,583,538 $194,345,298 $1,315,148,095 $3,295,541,164 $1,884,808,320 ----------------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP SEL RVS RVS GLOBAL GLOBAL INFLATION VP VP HI YIELD VP INC PRICE LEVEL BOND PROT SEC GRO BOND OPP ---------------------------------------------------------------------------------------- 0.55% $ 4,432,018 $ 2,603,981 $ 1,084,545 $ 748,426 $ 2,112,487 0.75% 307,052,178 192,268,540 75,094,857 152,317,691 120,724,810 0.85% 288,066,229 174,634,608 2,258,704 11,205,660 183,104,149 0.95% 213,386,364 126,161,438 47,275,299 127,902,315 71,388,807 1.00% 39,123,391 25,877,758 8,339,601 14,056,799 18,197,648 1.05% 144,046,253 88,718,207 1,749,176 8,315,076 83,175,344 1.10% 87,624,960 53,000,071 761,892 2,297,270 52,166,583 1.20% 26,772,444 19,053,707 3,966,694 12,903,374 10,615,922 1.25% 7,005,752(1) -- -- 570,893(1) -- 1.25% 39,494,098(2) 4,329,800 70,074 48,572,802(2) 2,863,073 1.30% 52,149,745 33,135,219 371,044 2,346,525 27,399,710 1.45% 10,518,344 7,640,073 130,070 1,162,323 4,188,964 ----------------------------------------------------------------------------------------------------------------------------------- Total $1,219,671,776 $727,423,402 $ 141,101,956 $ 382,399,154 $ 575,937,497 -----------------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 97
RVS SEL VP RVS VP RVS VP RVS VP LG CAP MID CAP MID CAP VP PRICE LEVEL DYN EQ VAL GRO VAL S&P 500 ---------------------------------------------------------------------------------------- 0.55% $ 797,874 $ 54,082 $ 187,792 $ 1,361,681 $ 952,926 0.75% 169,720,863 4,545,326 29,207,911 62,562,462 65,662,712 0.85% 835,232 547,784 913,236 61,524,423 3,355,973 0.95% 100,258,200 2,300,291 18,931,869 36,599,152 47,493,842 1.00% 13,298,634 458,934 1,630,846 7,803,640 6,605,771 1.05% 613,664 373,989 613,917 27,130,003 2,708,279 1.10% 245,545 68,529 208,160 16,282,830 756,745 1.20% 5,615,267 455,523 896,121 4,034,728 4,859,581 1.25% 82,490(1) -- 29,670(1) -- -- 1.25% 156,159,792(2) 3,328 25,886,021(2) 873,634 156,989 1.30% 296,073 108,557 97,972 7,987,721 779,674 1.45% 57,185 15,760 51,613 1,121,345 347,951 ----------------------------------------------------------------------------------------------------------------------------------- Total $447,980,819 $ 8,932,103 $ 78,655,128 $227,281,619 $133,680,443 ----------------------------------------------------------------------------------------------------------------------------------- RVS VP SEL VP THDL THDL THIRD SHORT SM CAP VP VP AVE PRICE LEVEL DURATION VAL EMER MKTS INTL OPP VAL ---------------------------------------------------------------------------------------- 0.55% $ 1,807,480 $ 117,169 $ 3,250,260 $ 817,595 $ 229,799 0.75% 159,773,255 27,392,827 144,143,164 41,238,214 28,557,132 0.85% 19,053,399 770,184 143,985,174 2,672,484 -- 0.95% 135,611,605 18,850,514 78,598,343 31,323,623 26,923,266 1.00% 13,901,955 2,307,041 19,415,599 4,295,349 -- 1.05% 14,162,685 470,396 59,812,785 2,541,137 -- 1.10% 3,675,562 165,996 38,071,011 1,278,255 -- 1.20% 14,974,219 1,262,808 9,671,040 2,482,645 -- 1.25% -- -- -- 111,572(1) -- 1.25% 1,041,176 13,843 1,795,083 68,654,689(2) -- 1.30% 5,168,981 76,909 17,720,862 1,030,507 -- 1.45% 2,768,950 13,699 2,164,722 139,195 -- ----------------------------------------------------------------------------------------------------------------------------------- Total $371,939,267 $ 51,441,386 $518,628,043 $156,585,265 $ 55,710,197 ----------------------------------------------------------------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP WANGER WANGER PRICE LEVEL CL II EST, CL II GRO, CL II INTL USA ---------------------------------------------------------------------------------------- 0.55% $ 3,162,167 $ 1,211,942 $ 172,599 $ 3,512,613 $ 3,948,120 0.75% 192,609,024 54,715,569 11,153,168 202,408,896 209,009,866 0.85% 176,142,886 75,666,093 3,448,523 93,042,397 83,341,139 0.95% 101,109,648 30,813,243 7,118,315 123,835,230 136,543,519 1.00% 36,513,819 8,608,381 1,751,849 27,372,478 29,337,759 1.05% 74,875,332 32,323,941 1,948,595 41,372,846 36,205,217 1.10% 48,706,491 20,977,657 1,379,794 24,909,277 22,881,232 1.20% 17,965,561 4,320,489 933,306 14,092,311 14,751,070 1.25% -- -- -- -- -- 1.25% 2,523,580 1,034,513 111,831 1,389,811 1,379,754 1.30% 23,887,395 9,993,043 918,466 12,333,896 11,321,872 1.45% 3,611,342 1,338,961 183,081 1,813,800 1,556,054 ----------------------------------------------------------------------------------------------------------------------------------- Total $681,107,245 $241,003,832 $ 29,119,527 $546,083,555 $550,275,602 -----------------------------------------------------------------------------------------------------------------------------------
98 RIVERSOURCE VARIABLE ACCOUNT 10
WF ADV WF ADV WF ADV WF ADV VT ASSET VT INTL VT VT PRICE LEVEL ALLOC CORE OPP SM CAP GRO ---------------------------------------------------------------------- 0.55% $ 4,231 $ 960 $ 158,152 $ 203,711 0.75% 24,529,351 4,122,618 19,543,384 22,891,426 0.85% -- -- 1,237,480 4,321,080 0.95% 18,995,674 3,085,768 11,476,347 14,535,222 1.00% 2,730,823 461,261 2,941,230 2,694,906 1.05% -- -- 752,562 2,571,688 1.10% -- -- 614,916 1,094,213 1.20% 1,682,450 143,155 1,276,469 1,185,091 1.25% -- -- -- -- 1.25% -- -- 27,429 135,708 1.30% -- -- 204,843 788,490 1.45% -- -- 46,336 246,830 -------------------------------------------------------------------------------------------------------------------------- Total $47,942,529 $7,813,762 $38,279,148 $50,668,365 --------------------------------------------------------------------------------------------------------------------------
(1) Applicable to RAVA 4 Advantage, RAVA 4 Select and RAVA 4 Access products only. (2) Applicable to FPA product only. RIVERSOURCE VARIABLE ACCOUNT 10 99 9. FINANCIAL HIGHLIGHTS The following is a summary for each period in the five year period ended Dec. 31, 2008 of units, net assets and investment income ratios in addition to the accumulation unit values, total returns and expense ratios for variable annuity contracts with the highest and lowest expense. Some of these subaccounts only offer one price level.
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- AIM VI CAP APPR, SER I 2008 41,116 $0.67 to $0.64 $26,745 -- 0.55% to 0.95% (42.81%) to (43.04%) 2007 57,018 $1.16 to $1.13 $64,980 -- 0.55% to 0.95% 11.40% to 10.95% 2006 72,809 $1.05 to $1.02 $74,671 0.05% 0.55% to 0.95% 5.72% to 5.30% 2005 80,703 $0.99 to $0.96 $78,514 0.06% 0.55% to 0.95% 8.24% to 7.81% 2004 86,822 $0.91 to $0.89 $78,248 -- 0.55% to 0.95% 6.04% to 5.62% --------------------------------------------------------------------------------------------------------------------------- AIM VI CAP APPR, SER II 2008 139,781 $0.72 to $0.68 $99,172 -- 0.55% to 1.45% (42.94%) to (43.45%) 2007 165,546 $1.26 to $1.19 $206,589 -- 0.55% to 1.45% 11.12% to 10.12% 2006 198,366 $1.14 to $1.08 $223,712 -- 0.55% to 1.45% 5.48% to 8.06%(10) 2005 236,683 $1.08 to $1.12 $254,026 -- 0.55% to 1.20% 7.98% to 7.29% 2004 69,240 $1.00 to $1.04 $68,891 -- 0.55% to 1.20% 5.75% to 5.07% --------------------------------------------------------------------------------------------------------------------------- AIM VI CAP DEV, SER I 2008 16,730 $1.12 to $1.07 $18,148 -- 0.55% to 0.95% (47.32%) to (47.53%) 2007 23,478 $2.12 to $2.05 $48,483 -- 0.55% to 0.95% 10.23% to 9.79% 2006 28,272 $1.92 to $1.86 $53,160 -- 0.55% to 0.95% 15.88% to 15.42% 2005 32,971 $1.66 to $1.62 $53,665 -- 0.55% to 0.95% 9.01% to 8.57% 2004 38,648 $1.52 to $1.49 $57,869 -- 0.55% to 0.95% 14.87% to 14.41% --------------------------------------------------------------------------------------------------------------------------- AIM VI CAP DEV, SER II 2008 36,124 $0.86 to $0.62 $29,143 -- 0.55% to 1.45% (47.42%) to (47.89%) 2007 49,607 $1.63 to $1.20 $76,866 -- 0.55% to 1.45% 9.94% to 8.95% 2006 48,026 $1.48 to $1.10 $69,832 -- 0.55% to 1.45% 15.62% to 9.49%(10) 2005 42,661 $1.28 to $1.32 $54,342 -- 0.55% to 1.20% 8.67% to 7.97% 2004 36,244 $1.18 to $1.22 $42,616 -- 0.55% to 1.20% 14.64% to 13.89% --------------------------------------------------------------------------------------------------------------------------- AIM VI CORE EQ, SER I 2008 92,625 $1.46 to $1.46 $136,522 1.92% 1.25% to 1.25% (31.01%) to (31.01%) 2007 128,470 $2.11 to $2.11 $273,531 0.92% 1.25% to 1.25% 6.77% to 6.77% 2006 199,591 $1.98 to $1.98 $396,958 0.49% 1.25% to 1.25% 15.26% to 15.26% 2005 281,112 $1.72 to $1.72 $484,439 1.38% 1.25% to 1.25% 4.01% to 4.01% 2004 351,566 $1.65 to $1.65 $582,105 0.96% 1.25% to 1.25% 7.62% to 7.62% --------------------------------------------------------------------------------------------------------------------------- AIM VI DYN, SER I 2008 7,742 $0.74 to $0.77 $5,632 -- 0.55% to 1.20% (48.36%) to (48.70%) 2007 10,864 $1.43 to $1.51 $15,341 -- 0.55% to 1.20% 11.57% to 10.84% 2006 12,477 $1.28 to $1.36 $15,850 -- 0.55% to 1.20% 15.48% to 14.73% 2005 14,869 $1.11 to $1.19 $16,410 -- 0.55% to 1.20% 10.12% to 9.40% 2004 17,584 $1.01 to $1.08 $17,670 -- 0.55% to 1.20% 12.72% to 11.99% --------------------------------------------------------------------------------------------------------------------------- AIM VI FIN SERV, SER I 2008 25,119 $0.44 to $0.44 $10,755 3.06% 0.55% to 1.20% (59.67%) to (59.93%) 2007 16,657 $1.08 to $1.10 $17,731 1.48% 0.55% to 1.20% (22.65%) to (23.15%) 2006 21,798 $1.39 to $1.43 $30,102 1.72% 0.55% to 1.20% 15.81% to 15.06% 2005 19,311 $1.20 to $1.25 $23,108 1.42% 0.55% to 1.20% 5.33% to 4.65% 2004 19,444 $1.14 to $1.19 $22,147 0.80% 0.55% to 1.20% 8.08% to 7.38% ---------------------------------------------------------------------------------------------------------------------------
100 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- AIM VI FIN SERV, SER II 2008 8,626 $0.36 to $0.36 $3,131 3.69% 0.85% to 1.45% (59.90%) to (60.15%) 2007 3,427 $0.90 to $0.89 $3,081 2.20% 0.85% to 1.45% (23.06%) to (23.52%) 2006 1,364 $1.17 to $1.17 $1,596 6.35% 0.85% to 1.45% 16.10%(10) to 15.74%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- AIM VI GLOBAL HLTH CARE, SER II 2008 21,604 $0.81 to $0.83 $17,564 -- 0.55% to 1.45% (29.17%) to (29.81%) 2007 16,065 $1.14 to $1.19 $18,500 -- 0.55% to 1.45% 10.90% to 9.90% 2006 87,789 $1.03 to $1.08 $91,682 -- 0.55% to 1.45% 3.11%(9) to 8.12%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- AIM VI INTL GRO, SER II 2008 537,767 $0.93 to $0.81 $461,509 0.72% 0.55% to 1.45% (40.87%) to (41.40%) 2007 234,064 $1.58 to $1.39 $342,381 0.86% 0.55% to 1.45% 13.82% to 12.79% 2006 5,226 $1.39 to $1.23 $7,023 1.97% 0.55% to 1.45% 27.18% to 22.52%(10) 2005 247 $1.09 to $1.09 $269 4.53% 0.55% to 1.20% 8.28%(7) to 8.17%(7) 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- AIM VI TECH, SER I 2008 32,201 $0.48 to $0.53 $15,360 -- 0.55% to 1.20% (44.81%) to (45.17%) 2007 36,520 $0.86 to $0.98 $31,644 -- 0.55% to 1.20% 7.11% to 6.41% 2006 43,391 $0.81 to $0.92 $35,223 -- 0.55% to 1.20% 9.88% to 9.17% 2005 54,315 $0.73 to $0.84 $40,261 -- 0.55% to 1.20% 1.61% to 0.96% 2004 25,352 $0.72 to $0.83 $18,466 -- 0.55% to 1.20% 4.06% to 3.38% --------------------------------------------------------------------------------------------------------------------------- AB VPS GLOBAL TECH, CL B 2008 10,970 $0.71 to $0.70 $7,758 -- 0.55% to 1.45% (47.75%) to (48.22%) 2007 10,650 $1.36 to $1.36 $14,458 -- 0.55% to 1.45% 19.23% to 18.16% 2006 33,897 $1.14 to $1.15 $38,748 -- 0.55% to 1.45% 7.79% to 14.78%(10) 2005 3,446 $1.06 to $1.06 $3,648 -- 0.55% to 1.20% 5.87%(7) to 5.76%(7) 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- AB VPS GRO & INC, CL B 2008 166,185 $0.81 to $0.71 $131,669 1.86% 0.55% to 1.45% (41.02%) to (41.55%) 2007 229,216 $1.37 to $1.21 $309,274 1.21% 0.55% to 1.45% 4.28% to 3.34% 2006 255,691 $1.31 to $1.17 $333,791 1.18% 0.55% to 1.45% 16.34% to 16.48%(10) 2005 277,477 $1.13 to $1.20 $312,799 1.25% 0.55% to 1.20% 4.02% to 3.35% 2004 229,828 $1.09 to $1.16 $249,752 0.71% 0.55% to 1.20% 10.61% to 9.90% --------------------------------------------------------------------------------------------------------------------------- AB VPS INTL VAL, CL B 2008 949,299 $1.24 to $0.59 $803,095 0.88% 0.55% to 1.45% (53.54%) to (53.96%) 2007 690,850 $2.68 to $1.29 $1,443,988 0.99% 0.55% to 1.45% 5.00% to 4.05% 2006 453,282 $2.55 to $1.24 $1,057,187 1.25% 0.55% to 1.45% 34.38% to 23.04%(10) 2005 292,660 $1.90 to $1.92 $551,186 0.47% 0.55% to 1.20% 15.88% to 15.13% 2004 135,770 $1.64 to $1.67 $221,322 0.41% 0.55% to 1.20% 24.21% to 23.40% --------------------------------------------------------------------------------------------------------------------------- AB VPS LG CAP GRO, CL B 2008 2,649 $0.74 to $0.73 $1,943 -- 0.85% to 1.45% (40.33%) to (40.69%) 2007 2,447 $1.23 to $1.22 $3,014 -- 0.85% to 1.45% 12.65% to 11.97% 2006 667 $1.10 to $1.09 $730 -- 0.85% to 1.45% 8.99%(10) to 8.66%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 101
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- AC VP INTL, CL I 2008 34,033 $0.85 to $0.82 $28,083 0.87% 0.55% to 0.95% (45.13%) to (45.35%) 2007 45,040 $1.54 to $1.49 $67,915 0.69% 0.55% to 0.95% 17.41% to 16.93% 2006 51,286 $1.32 to $1.28 $66,174 1.64% 0.55% to 0.95% 24.34% to 23.85% 2005 58,674 $1.06 to $1.03 $61,060 1.15% 0.55% to 0.95% 12.63% to 12.19% 2004 59,554 $0.94 to $0.92 $55,192 0.54% 0.55% to 0.95% 14.29% to 13.84% --------------------------------------------------------------------------------------------------------------------------- AC VP INTL, CL II 2008 60,221 $0.93 to $1.03 $56,142 0.69% 0.55% to 1.20% (45.20%) to (45.56%) 2007 77,918 $1.70 to $1.90 $132,920 0.54% 0.55% to 1.20% 17.27% to 16.51% 2006 84,429 $1.45 to $1.63 $123,392 1.41% 0.55% to 1.20% 24.06% to 23.26% 2005 82,367 $1.17 to $1.32 $97,265 0.91% 0.55% to 1.20% 12.49% to 11.76% 2004 63,756 $1.04 to $1.18 $66,949 0.34% 0.55% to 1.20% 14.14% to 13.41% --------------------------------------------------------------------------------------------------------------------------- AC VP MID CAP VAL, CL II 2008 242,955 $0.68 to $0.83 $187,536 0.08% 0.55% to 1.45% (24.92%) to (25.60%) 2007 258,311 $0.90 to $1.11 $266,954 1.22% 0.55% to 1.45% (10.10%)(14)to (3.84%) 2006 2,743 $1.16 to $1.16 $3,176 2.31% 0.85% to 1.45% 15.32%(10) to 14.97%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- AC VP ULTRA, CL II 2008 31,148 $0.69 to $0.71 $21,629 -- 0.55% to 1.45% (41.97%) to (42.49%) 2007 30,854 $1.20 to $1.24 $36,976 -- 0.55% to 1.45% 20.18% to 19.09% 2006 202,331 $1.00 to $1.04 $203,885 -- 0.55% to 1.45% (3.92%) to 3.52%(10) 2005 18,578 $1.04 to $1.04 $19,240 -- 0.55% to 1.20% 3.73%(7) to 3.62%(7) 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- AC VP VAL, CL I 2008 116,786 $1.30 to $1.87 $185,351 2.70% 0.55% to 1.25% (27.18%) to (27.69%) 2007 177,323 $1.79 to $2.58 $390,597 1.76% 0.55% to 1.25% (5.66%) to (6.32%) 2006 258,018 $1.89 to $2.75 $627,151 1.48% 0.55% to 1.25% 18.00% to 17.18% 2005 341,956 $1.61 to $2.35 $722,148 0.87% 0.55% to 1.25% 4.46% to 3.73% 2004 348,194 $1.54 to $2.27 $713,848 0.97% 0.55% to 1.25% 13.71% to 12.92% --------------------------------------------------------------------------------------------------------------------------- AC VP VAL, CL II 2008 188,664 $1.10 to $0.78 $195,491 2.48% 0.55% to 1.45% (27.20%) to (27.86%) 2007 262,020 $1.51 to $1.08 $377,643 1.42% 0.55% to 1.45% (5.83%) to (6.68%) 2006 279,304 $1.61 to $1.16 $437,608 1.20% 0.55% to 1.45% 17.82% to 15.39%(10) 2005 281,618 $1.36 to $1.32 $378,826 0.64% 0.55% to 1.20% 4.28% to 3.61% 2004 210,265 $1.31 to $1.27 $272,314 0.73% 0.55% to 1.20% 13.55% to 12.81% --------------------------------------------------------------------------------------------------------------------------- CALVERT VS SOCIAL BAL 2008 33,641 $0.79 to $0.86 $26,299 2.23% 0.55% to 1.20% (31.70%) to (32.14%) 2007 43,038 $1.16 to $1.26 $49,435 2.28% 0.55% to 1.20% 2.19% to 1.53% 2006 49,741 $1.13 to $1.24 $56,142 2.32% 0.55% to 1.20% 8.18% to 7.48% 2005 48,625 $1.05 to $1.16 $50,853 1.93% 0.55% to 1.20% 5.07% to 4.39% 2004 42,435 $1.00 to $1.11 $42,296 1.96% 0.55% to 1.20% 7.66% to 6.97% --------------------------------------------------------------------------------------------------------------------------- COL HI YIELD, VS CL B 2008 82,428 $0.81 to $0.80 $66,584 10.36% 0.55% to 1.45% (25.17%) to (25.84%) 2007 106,093 $1.09 to $1.08 $114,850 5.23% 0.55% to 1.45% 1.14% to 0.23% 2006 106,859 $1.07 to $1.08 $114,552 3.44% 0.55% to 1.45% 7.36%(8) to 8.13%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
102 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- COL MARSICO GRO, VS CL A 2008 1,298,131 $0.72 to $0.75 $963,953 0.35% 0.55% to 1.45% (39.78%) to (40.32%) 2007 766,013 $1.20 to $1.26 $944,664 0.07% 0.55% to 1.45% 16.83% to 15.78% 2006 317,946 $1.02 to $1.09 $331,754 -- 0.55% to 1.45% 2.95%(9) to 8.65%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- COL MARSICO INTL OPP, VS CL B 2008 103,623 $0.65 to $0.72 $69,405 1.37% 0.55% to 1.45% (48.77%) to (49.23%) 2007 80,923 $1.27 to $1.42 $105,483 0.17% 0.55% to 1.45% 19.02% to 17.94% 2006 153,627 $1.07 to $1.20 $169,998 0.53% 0.55% to 1.45% 6.74%(9) to 19.72%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- CS COMMODITY RETURN 2008 78,360 $0.75 to $0.77 $58,691 1.33% 0.55% to 1.45% (34.09%) to (34.69%) 2007 45,930 $1.13 to $1.17 $52,380 4.11% 0.55% to 1.45% 16.68% to 15.63% 2006 139,243 $0.97 to $1.01 $137,218 4.43% 0.55% to 1.45% (4.10%)(9) to 0.65%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- CS U.S. EQ FLEX III 2008 11,701 $0.89 to $0.86 $10,125 -- 0.55% to 0.95% (38.65%) to (38.89%) 2007 15,558 $1.45 to $1.40 $22,004 -- 0.55% to 0.95% 11.07% to 10.62% 2006 19,843 $1.30 to $1.27 $25,343 -- 0.55% to 0.95% 1.34% to 0.93% 2005 25,218 $1.29 to $1.26 $31,881 -- 0.55% to 0.95% 6.39% to 5.97% 2004 30,758 $1.21 to $1.18 $36,657 -- 0.55% to 0.95% 12.50% to 12.05% --------------------------------------------------------------------------------------------------------------------------- CS U.S. EQ FLEX I 2008 61,041 $0.88 to $0.88 $54,326 0.08% 1.25% to 1.25% (35.41%) to (35.41%) 2007 88,084 $1.37 to $1.37 $121,104 -- 1.25% to 1.25% (2.07%) to (2.07%) 2006 148,638 $1.40 to $1.40 $208,262 -- 1.25% to 1.25% 3.47% to 3.47% 2005 226,170 $1.35 to $1.35 $305,959 -- 1.25% to 1.25% (3.88%) to (3.88%) 2004 295,070 $1.40 to $1.40 $415,056 -- 1.25% to 1.25% 9.49% to 9.49% --------------------------------------------------------------------------------------------------------------------------- DREY VIF INTL EQ, SERV 2008 7,986 $0.78 to $0.77 $6,229 1.30% 0.85% to 1.45% (42.85%) to (43.19%) 2007 5,140 $1.37 to $1.36 $7,027 1.08% 0.85% to 1.45% 15.85% to 15.15% 2006 1,560 $1.18 to $1.18 $1,845 -- 0.85% to 1.45% 18.06%(10) to 17.70%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- DREY VIF INTL VAL, SERV 2008 3,348 $0.74 to $0.73 $2,468 2.17% 0.85% to 1.45% (38.01%) to (38.38%) 2007 2,931 $1.19 to $1.18 $3,492 1.00% 0.85% to 1.45% 3.04% to 2.42% 2006 1,167 $1.16 to $1.16 $1,351 -- 0.85% to 1.45% 15.81%(10) to 15.45%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- EV VT FLOATING-RATE INC 2008 581,542 $0.76 to $0.74 $434,439 5.74% 0.55% to 1.45% (27.54%) to (28.19%) 2007 469,434 $1.04 to $1.03 $485,908 6.25% 0.55% to 1.45% 1.08% to 0.16% 2006 298,230 $1.03 to $1.02 $306,684 6.14% 0.55% to 1.45% 3.18%(9) to 2.50%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 103
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- EG VA FUNDAMENTAL LG CAP, CL 2 2008 26,241 $0.81 to $0.79 $21,028 1.24% 0.55% to 1.45% (33.37%) to (33.97%) 2007 27,463 $1.22 to $1.19 $33,191 0.87% 0.55% to 1.45% 7.42% to 6.45% 2006 28,846 $1.13 to $1.12 $32,620 0.98% 0.55% to 1.45% 11.78% to 11.31%(10) 2005 30,155 $1.01 to $1.10 $30,645 0.82% 0.55% to 1.20% 8.15% to 7.45% 2004 23,448 $0.94 to $1.02 $22,145 1.06% 0.55% to 1.20% 8.33% to 7.63% --------------------------------------------------------------------------------------------------------------------------- EG VA INTL EQ, CL 2 2008 36,966 $1.07 to $0.76 $36,330 -- 0.55% to 1.45% (41.92%) to (42.44%) 2007 46,006 $1.84 to $1.32 $79,458 2.23% 0.55% to 1.45% 14.09% to 13.07% 2006 45,619 $1.62 to $1.17 $71,677 3.71% 0.55% to 1.45% 22.21% to 16.75%(10) 2005 33,531 $1.32 to $1.31 $44,080 3.25% 0.55% to 1.20% 15.04% to 14.30% 2004 8,450 $1.15 to $1.14 $9,684 2.51% 0.55% to 1.20% 16.83%(4) to 16.14%(4) --------------------------------------------------------------------------------------------------------------------------- FID VIP CONTRAFUND, SERV CL 2 2008 1,455,857 $0.69 to $0.71 $1,023,890 0.96% 0.55% to 1.45% (43.01%) to (43.52%) 2007 1,018,249 $1.21 to $1.27 $1,258,736 0.89% 0.55% to 1.45% 16.66% to 15.61% 2006 622,501 $1.03 to $1.09 $654,611 1.75% 0.55% to 1.45% 3.50%(9) to 8.94%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- FID VIP GRO & INC, SERV CL 2008 114,759 $0.75 to $0.73 $84,337 0.96% 0.55% to 0.95% (42.09%) to (42.33%) 2007 154,280 $1.30 to $1.26 $196,235 1.66% 0.55% to 0.95% 11.38% to 10.94% 2006 182,343 $1.17 to $1.14 $209,031 0.85% 0.55% to 0.95% 12.39% to 11.95% 2005 216,583 $1.04 to $1.01 $221,496 1.50% 0.55% to 0.95% 6.94% to 6.51% 2004 251,135 $0.97 to $0.95 $241,008 0.79% 0.55% to 0.95% 5.18% to 4.76% --------------------------------------------------------------------------------------------------------------------------- FID VIP GRO & INC, SERV CL 2 2008 209,939 $0.82 to $0.81 $169,597 0.85% 0.55% to 1.20% (42.22%) to (42.59%) 2007 278,465 $1.42 to $1.42 $390,431 1.39% 0.55% to 1.20% 11.24% to 10.52% 2006 329,942 $1.28 to $1.28 $417,155 0.71% 0.55% to 1.20% 12.24% to 11.51% 2005 358,054 $1.14 to $1.15 $404,610 1.30% 0.55% to 1.20% 6.81% to 6.12% 2004 353,479 $1.06 to $1.09 $375,117 0.64% 0.55% to 1.20% 4.95% to 4.27% --------------------------------------------------------------------------------------------------------------------------- FID VIP MID CAP, SERV CL 2008 85,755 $2.21 to $2.13 $185,298 0.35% 0.55% to 0.95% (39.84%) to (40.08%) 2007 109,849 $3.68 to $3.56 $395,275 0.72% 0.55% to 0.95% 14.85% to 14.39% 2006 131,594 $3.20 to $3.11 $413,296 0.26% 0.55% to 0.95% 11.97% to 11.53% 2005 144,212 $2.86 to $2.79 $405,434 1.62% 0.55% to 0.95% 17.56% to 17.09% 2004 147,113 $2.43 to $2.38 $352,910 -- 0.55% to 0.95% 24.09% to 23.59% --------------------------------------------------------------------------------------------------------------------------- FID VIP MID CAP, SERV CL 2 2008 913,300 $1.43 to $0.74 $965,638 0.25% 0.55% to 1.45% (39.94%) to (40.48%) 2007 738,939 $2.39 to $1.24 $1,459,930 0.49% 0.55% to 1.45% 14.70% to 13.67% 2006 624,914 $2.08 to $1.09 $1,208,847 0.16% 0.55% to 1.45% 11.79% to 8.10%(10) 2005 496,239 $1.86 to $1.76 $908,519 1.41% 0.55% to 1.20% 17.37% to 16.61% 2004 356,492 $1.59 to $1.51 $558,130 -- 0.55% to 1.20% 23.97% to 23.17% --------------------------------------------------------------------------------------------------------------------------- FID VIP OVERSEAS, SERV CL 2008 50,013 $0.89 to $0.86 $43,461 2.20% 0.55% to 0.95% (44.17%) to (44.40%) 2007 66,055 $1.59 to $1.54 $103,079 3.12% 0.55% to 0.95% 16.56% to 16.09% 2007 76,349 $1.37 to $1.33 $102,498 0.78% 0.55% to 0.95% 17.30% to 16.84% 2005 81,957 $1.16 to $1.14 $93,982 0.57% 0.55% to 0.95% 18.32% to 17.85% 2004 86,132 $0.98 to $0.96 $83,695 0.96% 0.55% to 0.95% 12.86% to 12.41% ---------------------------------------------------------------------------------------------------------------------------
104 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- FID VIP OVERSEAS, SERV CL 2 2008 123,289 $1.08 to $0.74 $125,026 2.18% 0.55% to 1.45% (44.27%) to (44.77%) 2007 146,997 $1.93 to $1.34 $272,379 2.91% 0.55% to 1.45% 16.41% to 15.36% 2006 151,362 $1.66 to $1.16 $248,078 0.65% 0.55% to 1.45% 17.13% to 15.34%(10) 2005 136,453 $1.42 to $1.53 $193,596 0.49% 0.55% to 1.20% 18.13% to 17.37% 2004 122,929 $1.20 to $1.31 $147,870 0.73% 0.55% to 1.20% 12.68% to 11.95% --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK GLOBAL REAL EST, CL 2 2008 143,021 $1.48 to $0.53 $177,416 1.02% 0.55% to 1.45% (42.71%) to (43.22%) 2007 204,660 $2.58 to $0.94 $456,336 2.45% 0.55% to 1.45% (21.30%) to (22.01%) 2006 257,421 $3.27 to $1.20 $773,536 2.06% 0.55% to 1.45% 19.92% to 19.66%(10) 2005 266,642 $2.73 to $1.97 $690,004 1.39% 0.55% to 1.20% 12.85% to 12.12% 2004 230,881 $2.42 to $1.76 $533,004 1.86% 0.55% to 1.20% 31.08% to 30.23% --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK SM CAP VAL, CL 2 2008 128,040 $1.61 to $0.69 $173,195 1.15% 0.55% to 1.45% (33.38%) to (33.98%) 2007 157,429 $2.42 to $1.05 $329,244 0.65% 0.55% to 1.45% (2.92%) to (3.79%) 2006 166,830 $2.49 to $1.09 $380,878 0.64% 0.55% to 1.45% 16.34% to 7.75%(10) 2005 156,167 $2.14 to $1.57 $316,893 0.75% 0.55% to 1.20% 8.17% to 7.47% 2004 118,566 $1.98 to $1.46 $224,252 0.18% 0.55% to 1.20% 23.07% to 22.27% --------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SEC, CL 2 2008 186,091 $0.98 to $0.72 $169,267 2.85% 0.55% to 1.45% (37.45%) to (38.01%) 2007 248,867 $1.57 to $1.17 $367,471 1.44% 0.55% to 1.45% 2.91% to 1.98% 2006 207,209 $1.53 to $1.15 $309,114 1.28% 0.55% to 1.45% 17.73% to 13.33%(10) 2005 151,140 $1.30 to $1.34 $196,107 0.87% 0.55% to 1.20% 9.95% to 9.24% 2004 99,871 $1.18 to $1.22 $118,373 0.76% 0.55% to 1.20% 12.02% to 11.29% --------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMP DEV MKTS SEC, CL 1 2008 75,508 $0.84 to $0.84 $63,395 3.01% 1.25% to 1.25% (53.21%) to (53.21%) 2007 110,251 $1.79 to $1.79 $197,632 2.56% 1.25% to 1.25% 27.47% to 27.47% 2006 179,403 $1.40 to $1.40 $252,258 1.27% 1.25% to 1.25% 26.84% to 26.84% 2005 254,244 $1.10 to $1.10 $281,629 1.43% 1.25% to 1.25% 26.18% to 26.18% 2004 274,586 $0.88 to $0.88 $240,781 1.92% 1.25% to 1.25% 23.28% to 23.28% --------------------------------------------------------------------------------------------------------------------------- FTVIPT TEMP FOR SEC, CL 2 2008 18,019 $1.18 to $1.14 $20,826 2.44% 0.55% to 0.95% (40.71%) to (40.94%) 2007 25,304 $1.98 to $1.94 $49,455 1.98% 0.55% to 0.95% 14.82% to 14.36% 2006 30,344 $1.73 to $1.69 $51,831 1.25% 0.55% to 0.95% 20.78% to 20.30% 2005 36,373 $1.43 to $1.41 $51,495 1.18% 0.55% to 0.95% 9.57% to 9.13% 2004 31,651 $1.30 to $1.29 $41,042 1.04% 0.55% to 0.95% 17.88% to 17.41% --------------------------------------------------------------------------------------------------------------------------- GS VIT MID CAP VAL, INST 2008 191,346 $1.74 to $1.22 $312,184 0.90% 0.55% to 1.20% (37.40%) to (37.80%) 2007 278,223 $2.78 to $1.96 $726,483 0.70% 0.55% to 1.20% 2.63% to 1.97% 2006 327,755 $2.71 to $1.92 $835,018 0.90% 0.55% to 1.20% 15.53% to 14.78% 2005 345,787 $2.34 to $1.68 $765,494 0.70% 0.55% to 1.20% 12.21% to 11.48% 2004 226,018 $2.09 to $1.50 $451,843 0.70% 0.55% to 1.20% 25.19% to 24.38% --------------------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD SM CAP EQ, INST 2008 9,648 $1.09 to $1.05 $10,223 0.58% 0.55% to 0.95% (34.38%) to (34.65%) 2007 13,830 $1.66 to $1.60 $22,383 0.31% 0.55% to 0.95% (16.94%) to (17.28%) 2006 19,072 $2.00 to $1.94 $37,272 0.61% 0.55% to 0.95% 11.66% to 11.21% 2005 23,432 $1.79 to $1.74 $41,091 0.23% 0.55% to 0.95% 5.49% to 5.07% 2004 26,859 $1.69 to $1.66 $44,779 0.19% 0.55% to 0.95% 15.69% to 15.23% ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 105
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD U.S. EQ, INST 2008 255,182 $0.72 to $0.68 $182,460 1.39% 0.55% to 1.45% (37.35%) to (37.91%) 2007 366,725 $1.15 to $1.09 $420,471 0.94% 0.55% to 1.45% (2.17%) to (3.05%) 2006 445,093 $1.18 to $1.13 $524,191 1.05% 0.55% to 1.45% 12.27% to 11.89%(10) 2005 467,555 $1.05 to $1.23 $492,636 1.00% 0.55% to 1.20% 5.93% to 5.24% 2004 253,878 $0.99 to $1.17 $251,604 1.38% 0.55% to 1.20% 14.31% to 13.57% --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN GLOBAL TECH, SERV 2008 41,022 $0.29 to $0.71 $11,998 0.09% 0.55% to 1.20% (44.28%) to (44.64%) 2007 49,169 $0.53 to $1.29 $25,957 0.34% 0.55% to 1.20% 21.03% to 20.24% 2006 54,174 $0.43 to $1.07 $23,644 -- 0.55% to 1.20% 7.24% to 6.54% 2005 57,634 $0.41 to $1.01 $23,479 -- 0.55% to 1.20% 10.94% to 10.22% 2004 65,787 $0.37 to $0.91 $24,174 -- 0.55% to 1.20% 0.02% to (0.63%) --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN OVERSEAS, SERV 2008 126,355 $0.82 to $1.38 $103,231 1.14% 0.55% to 1.20% (52.49%) to (52.80%) 2007 147,130 $1.73 to $2.93 $252,914 0.45% 0.55% to 1.20% 27.31% to 26.48% 2006 142,098 $1.36 to $2.32 $192,642 1.88% 0.55% to 1.20% 45.83% to 44.88% 2005 134,816 $0.93 to $1.60 $125,579 1.08% 0.55% to 1.20% 31.22% to 30.37% 2004 139,788 $0.71 to $1.23 $99,632 0.84% 0.55% to 1.20% 18.04% to 17.27% --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS, SERV 2008 1,226,178 $0.63 to $0.63 $773,445 0.64% 0.55% to 1.45% (40.20%) to (40.74%) 2007 747,893 $1.06 to $1.06 $791,866 0.66% 0.55% to 1.45% 6.28%(14) to 5.64%(14) 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN ENTERPRISE, SERV 2008 38,478 $0.41 to $0.40 $15,504 0.06% 0.55% to 0.95% (44.17%) to (44.39%) 2007 45,767 $0.74 to $0.72 $33,179 0.07% 0.55% to 0.95% 21.07% to 20.59% 2006 50,493 $0.61 to $0.59 $30,258 -- 0.55% to 0.95% 12.69% to 12.24% 2005 59,483 $0.54 to $0.53 $31,715 -- 0.55% to 0.95% 11.41% to 10.97% 2004 71,059 $0.49 to $0.48 $34,099 -- 0.55% to 0.95% 19.82% to 19.34% --------------------------------------------------------------------------------------------------------------------------- LAZARD RETIRE INTL EQ, SERV 2008 91,599 $0.87 to $1.20 $80,289 1.07% 0.55% to 1.20% (37.36%) to (37.77%) 2007 131,001 $1.40 to $1.92 $183,797 2.37% 0.55% to 1.20% 10.17% to 9.46% 2006 162,153 $1.27 to $1.75 $207,522 1.00% 0.55% to 1.20% 21.86% to 21.07% 2005 188,675 $1.04 to $1.45 $198,502 0.98% 0.55% to 1.20% 10.04% to 9.33% 2004 168,208 $0.94 to $1.33 $160,817 0.54% 0.55% to 1.20% 14.35% to 13.61% --------------------------------------------------------------------------------------------------------------------------- LM PTNRS VAR SM CAP GRO, CL I 2008 6,856 $0.60 to $0.59 $4,098 -- 0.55% to 1.45% (41.03%) to (41.56%) 2007 3,951 $1.02 to $1.01 $4,021 -- 0.55% to 1.45% 2.02%(13) to 1.39%(13) 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- MFS INV GRO STOCK, SERV CL 2008 119,103 $0.49 to $0.74 $60,178 0.30% 0.55% to 1.45% (37.33%) to (37.89%) 2007 150,560 $0.79 to $1.20 $120,724 0.09% 0.55% to 1.45% 10.41% to 9.42% 2006 187,890 $0.71 to $1.10 $136,819 -- 0.55% to 1.45% 6.72% to 9.33%(10) 2005 216,007 $0.67 to $1.02 $146,971 0.14% 0.55% to 1.20% 3.66% to 2.99% 2004 195,430 $0.64 to $0.99 $127,400 -- 0.55% to 1.20% 8.39% to 7.69% ---------------------------------------------------------------------------------------------------------------------------
106 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- MFS NEW DIS, SERV CL 2008 59,531 $0.62 to $0.70 $36,303 -- 0.55% to 1.20% (39.85%) to (40.24%) 2007 80,673 $1.02 to $1.17 $82,088 -- 0.55% to 1.20% 1.69% to 1.02% 2006 98,386 $1.01 to $1.16 $98,902 -- 0.55% to 1.20% 12.31% to 11.59% 2005 122,560 $0.90 to $1.04 $109,920 -- 0.55% to 1.20% 4.46% to 3.78% 2004 149,075 $0.86 to $1.00 $128,085 -- 0.55% to 1.20% 5.63% to 4.94% --------------------------------------------------------------------------------------------------------------------------- MFS TOTAL RETURN, SERV CL 2008 79,991 $0.99 to $0.87 $76,072 2.98% 0.55% to 1.45% (22.75%) to (23.44%) 2007 98,587 $1.28 to $1.13 $122,397 2.26% 0.55% to 1.45% 3.36% to 2.43% 2006 87,237 $1.24 to $1.11 $106,831 2.09% 0.55% to 1.45% 11.01% to 10.48%(10) 2005 74,459 $1.12 to $1.10 $82,895 1.46% 0.55% to 1.20% 2.04% to 1.38% 2004 26,242 $1.10 to $1.09 $28,760 0.61% 0.55% to 1.20% 9.02%(4) to 8.38%(4) --------------------------------------------------------------------------------------------------------------------------- MFS UTILITIES, SERV CL 2008 163,177 $1.41 to $0.95 $212,724 1.35% 0.55% to 1.45% (38.15%) to (38.71%) 2007 181,259 $2.28 to $1.56 $389,228 0.75% 0.55% to 1.45% 26.85% to 25.71% 2006 142,816 $1.80 to $1.24 $254,044 1.88% 0.55% to 1.45% 30.25% to 23.49%(10) 2005 103,681 $1.38 to $1.68 $145,619 0.42% 0.55% to 1.20% 15.93% to 15.18% 2004 52,792 $1.19 to $1.46 $64,198 1.21% 0.55% to 1.20% 29.13% to 28.30% --------------------------------------------------------------------------------------------------------------------------- NB AMT INTL, CL S 2008 358,116 $0.57 to $0.63 $218,422 -- 0.55% to 1.45% (46.73%) to (47.21%) 2007 273,245 $1.07 to $1.19 $313,049 2.12% 0.55% to 1.45% 2.64% to 1.72% 2006 147,411 $1.05 to $1.17 $160,106 2.30% 0.55% to 1.45% 4.11%(9) to 16.75%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- NB AMT SOC RESPONSIVE, CL S 2008 2,198 $0.73 to $0.72 $1,594 1.94% 0.85% to 1.45% (39.94%) to (40.30%) 2007 1,744 $1.21 to $1.20 $2,109 0.03% 0.85% to 1.45% 6.46% to 5.82% 2006 466 $1.14 to $1.14 $530 -- 0.85% to 1.45% 13.43%(10) to 13.09%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL SEC VA, SERV 2008 93,206 $0.96 to $0.72 $84,227 1.36% 0.55% to 1.45% (40.66%) to (41.19%) 2007 117,627 $1.62 to $1.22 $181,571 1.15% 0.55% to 1.45% 5.50% to 4.55% 2006 117,612 $1.53 to $1.16 $176,344 0.72% 0.55% to 1.45% 16.72% to 15.87%(10) 2005 72,423 $1.31 to $1.30 $94,587 0.57% 0.55% to 1.20% 13.44% to 12.70% 2004 24,526 $1.16 to $1.15 $28,389 0.15% 0.55% to 1.20% 15.92%(4) to 15.24%(4) --------------------------------------------------------------------------------------------------------------------------- OPPEN MAIN ST SM CAP VA, SERV 2008 76,585 $0.87 to $0.65 $61,768 0.29% 0.55% to 1.45% (38.34%) to (38.90%) 2007 91,911 $1.41 to $1.07 $121,816 0.15% 0.55% to 1.45% (1.94%) to (2.82%) 2006 81,385 $1.44 to $1.10 $113,492 0.02% 0.55% to 1.45% 14.03% to 8.72%(10) 2005 41,895 $1.26 to $1.24 $52,482 -- 0.55% to 1.20% 9.11% to 8.41% 2004 16,643 $1.16 to $1.15 $19,170 -- 0.55% to 1.20% 17.36%(4) to 16.67%(4) --------------------------------------------------------------------------------------------------------------------------- OPPEN STRATEGIC BOND VA, SERV 2008 2,013,495 $1.08 to $0.98 $2,075,960 4.44% 0.55% to 1.45% (14.95%) to (15.72%) 2007 1,745,768 $1.27 to $1.16 $2,131,138 2.47% 0.55% to 1.45% 8.95% to 7.97% 2006 820,585 $1.16 to $1.08 $936,136 2.90% 0.55% to 1.45% 6.65% to 7.74%(10) 2005 306,977 $1.09 to $1.08 $332,896 1.97% 0.55% to 1.20% 1.92% to 1.26% 2004 46,499 $1.07 to $1.06 $49,696 0.56% 0.55% to 1.20% 7.06%(4) to 6.43%(4) ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 107
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- OPPEN VAL VA, SERV 2008 4,235 $0.65 to $0.64 $2,737 0.63% 0.85% to 1.45% (42.11%) to (42.46%) 2007 5,116 $1.12 to $1.11 $5,723 0.65% 0.85% to 1.45% 4.80% to 4.17% 2006 370 $1.07 to $1.07 $396 -- 0.85% to 1.45% 6.99%(11) to 6.81%(11) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET, ADVISOR CL 2008 1,091,785 $0.94 to $0.94 $1,032,082 6.54% 0.55% to 1.45% (16.37%) to (17.12%) 2007 754,096 $1.12 to $1.14 $855,250 8.20% 0.55% to 1.45% 7.59% to 6.62% 2006 437,682 $1.04 to $1.07 $460,233 9.03% 0.55% to 1.45% 4.65%(9) to 6.59%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- PIONEER EQ INC VCT, CL II 2008 32,075 $1.01 to $1.01 $31,891 2.54% 0.55% to 1.20% (30.86%) to (31.31%) 2007 43,594 $1.46 to $1.47 $62,832 2.26% 0.55% to 1.20% (0.01%) to (0.66%) 2006 48,064 $1.46 to $1.48 $69,591 2.33% 0.55% to 1.20% 21.45% to 20.67% 2005 53,522 $1.20 to $1.23 $64,029 2.13% 0.55% to 1.20% 4.94% to 4.26% 2004 48,892 $1.14 to $1.18 $55,958 2.13% 0.55% to 1.20% 15.40% to 14.66% --------------------------------------------------------------------------------------------------------------------------- PIONEER INTL VAL VCT, CL II 2008 4,729 $0.62 to $0.61 $2,909 1.27% 0.55% to 1.20% (45.44%) to (45.80%) 2007 7,134 $1.13 to $1.13 $8,065 0.33% 0.55% to 1.20% 12.62% to 11.89% 2006 8,608 $1.01 to $1.01 $8,668 -- 0.55% to 1.20% 0.70%(12) to 0.68%(12) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- PUT VT GLOBAL HLTH CARE, CL IB 2008 27,807 $0.92 to $0.91 $25,092 -- 0.55% to 1.20% (17.52%) to (18.06%) 2007 35,962 $1.11 to $1.11 $39,464 0.83% 0.55% to 1.20% (1.15%) to (1.79%) 2006 46,519 $1.12 to $1.13 $51,796 0.33% 0.55% to 1.20% 2.23% to 1.57% 2005 48,773 $1.10 to $1.11 $53,264 0.05% 0.55% to 1.20% 12.58% to 11.85% 2004 37,011 $0.98 to $1.00 $35,996 0.17% 0.55% to 1.20% 6.54% to 5.85% --------------------------------------------------------------------------------------------------------------------------- PUT VT INTL EQ, CL IB 2008 37,947 $0.99 to $1.04 $37,137 2.26% 0.55% to 1.20% (44.26%) to (44.62%) 2007 53,770 $1.78 to $1.87 $94,674 2.89% 0.55% to 1.20% 7.77% to 7.07% 2006 62,626 $1.65 to $1.75 $102,620 0.62% 0.55% to 1.20% 27.02% to 26.20% 2005 68,854 $1.30 to $1.39 $89,094 1.45% 0.55% to 1.20% 11.58% to 10.86% 2004 72,649 $1.16 to $1.25 $84,438 1.45% 0.55% to 1.20% 15.56% to 14.81% --------------------------------------------------------------------------------------------------------------------------- PUT VT INTL NEW OPP, CL IB 2008 48,405 $0.80 to $0.77 $37,701 1.63% 0.55% to 0.95% (42.80%) to (43.02%) 2007 65,316 $1.40 to $1.35 $89,100 0.88% 0.55% to 0.95% 12.59% to 12.14% 2006 77,661 $1.24 to $1.21 $94,463 1.35% 0.55% to 0.95% 25.44% to 24.94% 2005 90,632 $0.99 to $0.97 $88,142 0.68% 0.55% to 0.95% 17.72% to 17.25% 2004 107,334 $0.84 to $0.82 $88,924 1.02% 0.55% to 0.95% 12.73% to 12.28% --------------------------------------------------------------------------------------------------------------------------- PUT VT NEW OPP, CL IA 2008 71,705 $0.94 to $0.94 $68,211 0.32% 1.25% to 1.25% (39.38%) to (39.38%) 2007 97,679 $1.56 to $1.56 $153,100 0.18% 1.25% to 1.25% 4.70% to 4.70% 2006 149,236 $1.49 to $1.49 $223,047 0.19% 1.25% to 1.25% 7.48% to 7.48% 2005 206,197 $1.38 to $1.38 $286,496 0.38% 1.25% to 1.25% 8.96% to 8.96% 2004 265,044 $1.27 to $1.27 $337,875 -- 1.25% to 1.25% 9.20% to 9.20% ---------------------------------------------------------------------------------------------------------------------------
108 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- PUT VT VISTA, CL IB 2008 46,674 $0.60 to $0.72 $27,628 -- 0.55% to 1.20% (45.84%) to (46.20%) 2007 61,545 $1.11 to $1.33 $67,450 -- 0.55% to 1.20% 3.24% to 2.56% 2006 79,537 $1.08 to $1.30 $84,668 -- 0.55% to 1.20% 4.88% to 4.20% 2005 94,134 $1.03 to $1.24 $95,729 -- 0.55% to 1.20% 11.53% to 10.81% 2004 110,020 $0.92 to $1.12 $100,428 -- 0.55% to 1.20% 17.96% to 17.19% --------------------------------------------------------------------------------------------------------------------------- ROYCE MICRO-CAP, INVEST CL 2008 24,388 $1.99 to $1.92 $47,373 2.28% 0.55% to 0.95% (43.58%) to (43.81%) 2007 33,734 $3.53 to $3.41 $116,412 1.33% 0.55% to 0.95% 3.41% to 2.99% 2006 40,617 $3.41 to $3.32 $135,983 0.17% 0.55% to 0.95% 20.41% to 19.93% 2005 46,205 $2.83 to $2.76 $128,705 0.53% 0.55% to 0.95% 11.00% to 10.56% 2004 54,526 $2.55 to $2.50 $137,329 -- 0.55% to 0.95% 13.22% to 12.77% --------------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, AGGR 2008 11,766 $0.70 to $0.71 $8,341 -- 0.55% to 1.45% (29.70%)(15)to (30.12%)(15) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, CONSERV 2008 25,426 $0.84 to $0.84 $21,358 -- 0.55% to 1.45% (16.24%)(15)to (16.74%)(15) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD 2008 49,366 $0.76 to $0.76 $37,774 -- 0.55% to 1.45% (24.58%)(15)to (25.03%)(15) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD AGGR 2008 33,063 $0.73 to $0.73 $24,461 -- 0.55% to 1.45% (27.03%)(15)to (27.47%)(15) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD CONSERV 2008 25,258 $0.79 to $0.79 $20,078 -- 0.55% to 1.45% (20.96%)(15)to (21.43%)(15) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- RVS PTNRS VP FUNDAMENTAL VAL 2008 917,373 $0.69 to $0.69 $634,861 0.03% 0.55% to 1.45% (38.92%) to (39.47%) 2007 533,475 $1.13 to $1.14 $606,201 1.01% 0.55% to 1.45% 3.27% to 2.34% 2006 338,654 $1.09 to $1.11 $371,272 0.98% 0.55% to 1.45% 8.85%(9) to 10.70%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 109
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- RVS PTNRS VP SELECT VAL 2008 13,413 $0.86 to $0.72 $11,161 -- 0.55% to 1.45% (37.03%) to (37.60%) 2007 18,855 $1.37 to $1.15 $25,327 1.03% 0.55% to 1.45% 5.45% to 4.50% 2006 18,510 $1.30 to $1.10 $27,617 2.14% 0.55% to 1.45% 15.18% to 9.42%(10) 2005 18,946 $1.13 to $1.11 $24,577 0.49% 0.55% to 1.20% (0.05%) to (0.69%) 2004 9,024 $1.13 to $1.12 $13,503 1.11% 0.55% to 1.20% 12.84%(4) to 12.18%(4) --------------------------------------------------------------------------------------------------------------------------- RVS PTNRS VP SM CAP VAL 2008 856,114 $1.24 to $0.71 $751,584 0.10% 0.55% to 1.45% (31.95%) to (32.56%) 2007 617,370 $1.82 to $1.05 $846,375 0.89% 0.55% to 1.45% (5.42%) to (6.27%) 2006 271,781 $1.92 to $1.12 $480,085 0.41% 0.55% to 1.45% 19.59% to 10.88%(10) 2005 234,333 $1.61 to $1.49 $370,927 0.21% 0.55% to 1.20% 5.19% to 4.51% 2004 168,145 $1.53 to $1.42 $254,207 0.03% 0.55% to 1.20% 19.36% to 18.58% --------------------------------------------------------------------------------------------------------------------------- RVS VP BAL 2008 189,680 $0.88 to $0.78 $194,345 0.26% 0.55% to 1.45% (30.30%) to (30.92%) 2007 271,898 $1.26 to $1.13 $399,988 2.84% 0.55% to 1.45% 1.18% to 0.27% 2006 308,699 $1.25 to $1.13 $470,890 2.46% 0.55% to 1.45% 13.76% to 12.16%(10) 2005 360,863 $1.10 to $1.66 $501,036 2.59% 0.55% to 1.25% 3.35% to 2.63% 2004 373,845 $1.06 to $1.61 $515,992 2.28% 0.55% to 1.25% 9.00% to 8.23% --------------------------------------------------------------------------------------------------------------------------- RVS VP CASH MGMT 2008 1,121,065 $1.25 to $1.06 $1,315,148 2.24% 0.55% to 1.45% 1.71% to 0.81% 2007 868,750 $1.22 to $1.05 $1,009,165 4.72% 0.55% to 1.45% 4.25% to 3.32% 2006 701,788 $1.17 to $1.02 $794,074 4.44% 0.55% to 1.45% 3.92% to 1.65%(10) 2005 429,069 $1.13 to $1.23 $477,358 2.58% 0.55% to 1.25% 2.05% to 1.34% 2004 426,212 $1.11 to $1.21 $468,695 0.73% 0.55% to 1.25% 0.19% to (0.51%) --------------------------------------------------------------------------------------------------------------------------- RVS VP DIV BOND 2008 2,911,692 $1.33 to $1.00 $3,295,541 0.39% 0.55% to 1.45% (6.83%) to (7.66%) 2007 2,530,299 $1.43 to $1.09 $3,134,332 4.75% 0.55% to 1.45% 4.62% to 3.68% 2006 1,441,352 $1.36 to $1.05 $1,832,904 4.39% 0.55% to 1.45% 3.84% to 4.86%(10) 2005 842,520 $1.31 to $1.41 $1,094,933 3.71% 0.55% to 1.25% 1.56% to 0.85% 2004 639,931 $1.29 to $1.40 $835,025 3.83% 0.55% to 1.25% 3.92% to 3.19% --------------------------------------------------------------------------------------------------------------------------- RVS VP DIV EQ INC 2008 2,062,785 $1.16 to $0.70 $1,884,808 0.08% 0.55% to 1.45% (40.79%) to (41.32%) 2007 1,615,554 $1.96 to $1.20 $2,710,345 1.57% 0.55% to 1.45% 7.43% to 6.46% 2006 1,286,388 $1.83 to $1.12 $2,199,172 1.41% 0.55% to 1.45% 19.09% to 11.90%(10) 2005 772,974 $1.53 to $1.51 $1,175,707 1.61% 0.55% to 1.20% 12.88% to 12.15% 2004 482,647 $1.36 to $1.35 $652,523 1.65% 0.55% to 1.20% 17.56% to 16.80% --------------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL BOND 2008 950,255 $1.55 to $1.09 $1,219,672 6.92% 0.55% to 1.45% (0.98%) to (1.87%) 2007 852,722 $1.56 to $1.11 $1,133,348 3.68% 0.55% to 1.45% 7.05% to 6.09% 2006 472,738 $1.46 to $1.05 $646,999 3.28% 0.55% to 1.45% 6.15% to 4.85%(10) 2005 331,823 $1.38 to $1.46 $454,346 3.91% 0.55% to 1.25% (5.52%) to (6.17%) 2004 242,562 $1.46 to $1.55 $355,988 4.10% 0.55% to 1.25% 9.42% to 8.66% --------------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL INFLATION PROT SEC 2008 658,300 $1.13 to $1.08 $727,423 2.47% 0.55% to 1.45% (0.41%) to (1.30%) 2007 543,695 $1.13 to $1.10 $605,794 2.38% 0.55% to 1.45% 7.34% to 6.37% 2006 420,004 $1.06 to $1.03 $439,332 3.36% 0.55% to 1.45% 0.64% to 3.04%(10) 2005 177,692 $1.05 to $1.04 $186,090 7.05% 0.55% to 1.20% 2.24% to 1.59% 2004 9,951 $1.03 to $1.03 $10,223 3.47% 0.55% to 1.20% 2.67%(5) to 2.47%(5) ---------------------------------------------------------------------------------------------------------------------------
110 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- SEL VP GRO 2008 326,510 $0.42 to $0.63 $141,102 0.30% 0.55% to 1.45% (44.65%) to (45.15%) 2007 516,489 $0.75 to $1.15 $404,027 1.01% 0.55% to 1.45% 2.50% to 1.58% 2006 590,278 $0.73 to $1.13 $449,154 0.93% 0.55% to 1.45% 10.47% to 13.46%(10) 2005 579,086 $0.67 to $1.05 $398,436 0.39% 0.55% to 1.20% 8.02% to 7.32% 2004 340,148 $0.62 to $0.98 $213,399 0.32% 0.55% to 1.20% 7.84% to 7.14% --------------------------------------------------------------------------------------------------------------------------- RVS VP HI YIELD BOND 2008 373,277 $1.05 to $0.80 $382,399 0.32% 0.55% to 1.45% (25.58%) to (26.25%) 2007 550,625 $1.41 to $1.08 $763,179 7.40% 0.55% to 1.45% 1.29% to 0.38% 2006 649,204 $1.39 to $1.07 $905,546 7.40% 0.55% to 1.45% 10.21% to 7.67%(10) 2005 715,854 $1.26 to $1.39 $919,121 6.46% 0.55% to 1.25% 3.45% to 2.73% 2004 730,172 $1.22 to $1.36 $914,940 6.99% 0.55% to 1.25% 10.78% to 10.01% --------------------------------------------------------------------------------------------------------------------------- RVS VP INC OPP 2008 643,014 $0.95 to $0.86 $575,937 0.18% 0.55% to 1.45% (19.25%) to (19.98%) 2007 516,836 $1.17 to $1.08 $577,421 6.88% 0.55% to 1.45% 2.08% to 1.16% 2006 309,653 $1.15 to $1.07 $345,710 6.45% 0.55% to 1.45% 7.39% to 6.77%(10) 2005 59,285 $1.07 to $1.06 $63,157 5.94% 0.55% to 1.20% 2.76% to 2.10% 2004 2,406 $1.04 to $1.04 $2,505 5.77% 0.55% to 1.20% 3.92%(5) to 3.72%(5) --------------------------------------------------------------------------------------------------------------------------- RVS VP DYN EQ 2008 685,481 $0.57 to $0.67 $447,981 0.24% 0.55% to 1.45% (42.48%) to (43.00%) 2007 908,741 $0.99 to $1.17 $1,044,144 1.30% 0.55% to 1.45% 2.37% to 1.44% 2006 1,149,920 $0.97 to $1.15 $1,327,213 1.16% 0.55% to 1.45% 14.65% to 14.68%(10) 2005 587,040 $0.85 to $1.35 $570,540 1.15% 0.55% to 1.25% 5.59% to 4.86% 2004 386,123 $0.80 to $1.28 $384,039 0.92% 0.55% to 1.25% 5.30% to 4.57% --------------------------------------------------------------------------------------------------------------------------- SEL VP LG CAP VAL 2008 11,454 $0.81 to $0.68 $8,932 0.08% 0.55% to 1.45% (39.79%) to (40.33%) 2007 15,712 $1.34 to $1.14 $20,661 1.37% 0.55% to 1.45% (1.01%) to (1.90%) 2006 15,289 $1.35 to $1.16 $24,456 1.26% 0.55% to 1.45% 18.41% to 15.50%(10) 2005 11,470 $1.14 to $1.13 $16,462 1.60% 0.55% to 1.20% 3.96% to 3.29% 2004 6,542 $1.10 to $1.09 $10,459 1.89% 0.55% to 1.20% 10.01%(4) to 9.37%(4) --------------------------------------------------------------------------------------------------------------------------- RVS VP MID CAP GRO 2008 114,373 $0.78 to $0.64 $78,655 0.02% 0.55% to 1.45% (45.15%) to (45.64%) 2007 151,418 $1.41 to $1.18 $190,564 0.06% 0.55% to 1.45% 13.11% to 12.09% 2006 200,202 $1.25 to $1.05 $222,008 0.24% 0.55% to 1.45% (0.62%) to 4.74%(10) 2005 87,824 $1.26 to $1.25 $107,722 -- 0.55% to 1.20% 9.52% to 8.81% 2004 98,758 $1.15 to $1.15 $110,889 -- 0.55% to 1.20% 8.50% to 7.80% --------------------------------------------------------------------------------------------------------------------------- RVS VP MID CAP VAL 2008 315,808 $0.82 to $0.64 $227,282 -- 0.55% to 1.45% (45.41%) to (45.90%) 2007 243,624 $1.50 to $1.19 $329,464 0.74% 0.55% to 1.45% 9.75% to 8.76% 2006 273,710 $1.37 to $1.09 $347,533 1.09% 0.55% to 1.45% 14.69% to 8.46%(10) 2005 12,717 $1.20 to $1.19 $17,507 1.13% 0.55% to 1.20% 17.78%(6) to 17.28%(6) 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- RVS VP S&P 500 2008 200,311 $0.66 to $0.73 $133,680 0.08% 0.55% to 1.45% (37.44%) to (38.00%) 2007 248,360 $1.05 to $1.18 $265,351 1.62% 0.55% to 1.45% 4.44% to 3.50% 2006 269,990 $1.01 to $1.14 $276,643 1.45% 0.55% to 1.45% 14.63% to 13.44%(10) 2005 304,082 $0.88 to $1.13 $272,014 1.40% 0.55% to 1.20% 3.83% to 3.16% 2004 283,879 $0.85 to $1.10 $244,571 1.50% 0.55% to 1.20% 9.66% to 8.95% ---------------------------------------------------------------------------------------------------------------------------
RIVERSOURCE VARIABLE ACCOUNT 10 111
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- RVS VP SHORT DURATION 2008 306,948 $1.30 to $1.02 $371,939 0.13% 0.55% to 1.45% (3.17%) to (4.04%) 2007 272,626 $1.34 to $1.07 $346,116 4.18% 0.55% to 1.45% 4.74% to 3.80% 2006 270,831 $1.28 to $1.03 $331,991 3.80% 0.55% to 1.45% 3.27% to 2.92%(10) 2005 302,534 $1.24 to $1.04 $361,417 2.89% 0.55% to 1.20% 1.02% to 0.37% 2004 326,084 $1.23 to $1.04 $387,853 2.44% 0.55% to 1.20% 0.30% to (0.35%) --------------------------------------------------------------------------------------------------------------------------- SEL VP SM CAP VAL 2008 51,553 $1.04 to $0.63 $51,441 -- 0.55% to 1.45% (38.93%) to (39.48%) 2007 74,285 $1.70 to $1.03 $122,452 0.16% 0.55% to 1.45% (4.71%) to (5.57%) 2006 97,486 $1.79 to $1.09 $170,404 0.04% 0.55% to 1.45% 11.08% to 8.04%(10) 2005 116,136 $1.61 to $1.51 $183,927 -- 0.55% to 1.20% 4.25% to 3.58% 2004 122,818 $1.54 to $1.45 $187,181 -- 0.55% to 1.20% 17.89% to 17.13% --------------------------------------------------------------------------------------------------------------------------- THDL VP EMER MKTS 2008 506,028 $1.33 to $0.83 $518,628 0.68% 0.55% to 1.45% (53.96%) to (54.37%) 2007 289,591 $2.90 to $1.82 $695,489 0.59% 0.55% to 1.45% 37.35% to 36.11% 2006 191,857 $2.11 to $1.34 $379,204 0.35% 0.55% to 1.45% 33.17% to 33.82%(10) 2005 134,343 $1.58 to $2.02 $213,076 0.20% 0.55% to 1.20% 33.07% to 32.21% 2004 42,521 $1.19 to $1.53 $50,449 3.09% 0.55% to 1.20% 23.47% to 22.67% --------------------------------------------------------------------------------------------------------------------------- THDL VP INTL OPP 2008 184,146 $0.76 to $0.77 $156,585 2.35% 0.55% to 1.45% (40.76%) to (41.29%) 2007 255,424 $1.28 to $1.30 $370,715 0.99% 0.55% to 1.45% 12.06% to 11.05% 2006 314,505 $1.14 to $1.17 $419,625 1.93% 0.55% to 1.45% 23.49% to 16.79%(10) 2005 335,839 $0.92 to $1.23 $370,645 1.43% 0.55% to 1.25% 13.24% to 12.45% 2004 281,107 $0.82 to $1.09 $282,571 1.13% 0.55% to 1.25% 16.76% to 15.95% --------------------------------------------------------------------------------------------------------------------------- THIRD AVE VAL 2008 31,931 $1.79 to $1.72 $55,710 0.79% 0.55% to 0.95% (43.97%) to (44.19%) 2007 47,482 $3.19 to $3.08 $148,093 2.12% 0.55% to 0.95% (5.33%) to (5.71%) 2006 57,365 $3.37 to $3.27 $189,566 1.29% 0.55% to 0.95% 15.15% to 14.69% 2005 64,866 $2.92 to $2.85 $186,631 1.31% 0.55% to 0.95% 14.00% to 13.55% 2004 66,587 $2.57 to $2.51 $168,558 0.54% 0.55% to 0.95% 19.24% to 18.76% --------------------------------------------------------------------------------------------------------------------------- VANK LIT COMSTOCK, CL II 2008 890,312 $0.85 to $0.69 $681,107 2.13% 0.55% to 1.45% (36.15%) to (36.73%) 2007 706,658 $1.34 to $1.09 $869,865 1.54% 0.55% to 1.45% (2.87%) to (3.74%) 2006 615,160 $1.38 to $1.13 $810,354 1.11% 0.55% to 1.45% 15.41% to 12.68%(10) 2005 384,396 $1.19 to $1.18 $456,175 0.49% 0.55% to 1.20% 3.54% to 2.87% 2004 75,664 $1.15 to $1.15 $87,005 0.11% 0.55% to 1.20% 14.41%(4) to 13.74%(4) --------------------------------------------------------------------------------------------------------------------------- VANK UIF GLOBAL REAL EST, CL II 2008 382,715 $0.62 to $0.63 $241,004 2.66% 0.55% to 1.45% (44.65%) to (45.15%) 2007 179,034 $1.12 to $1.16 $203,382 1.28% 0.55% to 1.45% (8.98%) to (9.80%) 2006 136,442 $1.23 to $1.28 $169,621 4.39% 0.55% to 1.45% 23.57%(9) to 26.94%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VANK UIF MID CAP GRO, CL II 2008 44,920 $0.64 to $0.68 $29,120 0.77% 0.55% to 1.45% (47.11%) to (47.58%) 2007 38,593 $1.21 to $1.30 $47,493 -- 0.55% to 1.45% 21.94% to 20.84% 2006 98,448 $0.99 to $1.08 $100,352 -- 0.55% to 1.45% (0.22%)(9) to 7.27%(10) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
112 RIVERSOURCE VARIABLE ACCOUNT 10
FOR THE YEAR ENDED DEC. 31 AT DEC. 31 ----------------------------------------------------------- -------------------------------------------------- EXPENSE RATIO UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT LOWEST TO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- WANGER INTL 2008 486,121 $1.44 to $0.76 $546,084 0.96% 0.55% to 1.45% (45.90%) to (46.39%) 2007 416,770 $2.67 to $1.42 $970,137 0.84% 0.55% to 1.45% 15.67% to 14.63% 2006 392,888 $2.31 to $1.24 $857,316 0.51% 0.55% to 1.45% 36.41% to 22.89%(10) 2005 318,154 $1.69 to $1.98 $539,107 0.86% 0.55% to 1.20% 20.86% to 20.08% 2004 201,340 $1.40 to $1.65 $282,034 0.59% 0.55% to 1.20% 29.56% to 28.72% --------------------------------------------------------------------------------------------------------------------------- WANGER USA 2008 572,582 $1.21 to $0.67 $550,276 -- 0.55% to 1.45% (40.02%) to (40.56%) 2007 565,037 $2.01 to $1.12 $973,831 -- 0.55% to 1.45% 4.81% to 3.86% 2006 489,659 $1.92 to $1.08 $890,484 0.23% 0.55% to 1.45% 7.28% to 7.16%(10) 2005 478,752 $1.79 to $1.54 $828,367 -- 0.55% to 1.20% 10.64% to 9.93% 2004 368,407 $1.62 to $1.40 $579,332 -- 0.55% to 1.20% 17.68% to 16.92% --------------------------------------------------------------------------------------------------------------------------- WF ADV VT ASSET ALLOC 2008 49,869 $0.98 to $0.98 $47,943 2.38% 0.55% to 1.20% (29.50%) to (29.96%) 2007 72,214 $1.38 to $1.40 $98,669 2.24% 0.55% to 1.20% 7.00% to 6.31% 2006 76,000 $1.29 to $1.32 $97,390 2.31% 0.55% to 1.20% 11.53% to 10.81% 2005 84,219 $1.16 to $1.19 $96,853 2.09% 0.55% to 1.20% 4.41% to 3.74% 2004 80,918 $1.11 to $1.15 $89,406 2.16% 0.55% to 1.20% 8.74% to 8.04% --------------------------------------------------------------------------------------------------------------------------- WF ADV VT INTL CORE 2008 9,680 $0.81 to $0.91 $7,814 1.96% 0.55% to 1.20% (43.72%) to (44.09%) 2007 13,828 $1.45 to $1.63 $19,886 0.01% 0.55% to 1.20% 12.05% to 11.32% 2006 15,404 $1.29 to $1.47 $19,827 1.61% 0.55% to 1.20% 20.15% to 19.37% 2005 17,549 $1.07 to $1.23 $18,913 1.88% 0.55% to 1.20% 9.07% to 8.37% 2004 19,728 $0.99 to $1.13 $19,596 0.23% 0.55% to 1.20% 9.03% to 8.32% --------------------------------------------------------------------------------------------------------------------------- WF ADV VT OPP 2008 45,514 $0.87 to $0.69 $38,279 1.90% 0.55% to 1.45% (40.43%) to (40.96%) 2007 60,060 $1.46 to $1.17 $85,505 0.59% 0.55% to 1.45% 6.05% to 5.09% 2006 68,746 $1.38 to $1.11 $93,493 -- 0.55% to 1.45% 11.61% to 10.85%(10) 2005 78,280 $1.23 to $1.25 $95,962 -- 0.55% to 1.20% 7.22% to 6.52% 2004 80,225 $1.15 to $1.18 $91,972 -- 0.55% to 1.20% 17.43% to 16.67% --------------------------------------------------------------------------------------------------------------------------- WF ADV VT SM CAP GRO 2008 65,403 $0.79 to $0.74 $50,668 -- 0.55% to 1.45% (41.74%) to (42.27%) 2007 75,619 $1.35 to $1.28 $100,984 -- 0.55% to 1.45% 13.18% to 12.16% 2006 50,566 $1.20 to $1.14 $60,201 -- 0.55% to 1.45% 22.08% to 12.91%(10) 2005 38,139 $0.98 to $1.10 $37,471 -- 0.55% to 1.20% 5.66% to 4.98% 2004 42,675 $0.93 to $1.05 $39,748 -- 0.55% to 1.20% 13.15% to 12.41% ---------------------------------------------------------------------------------------------------------------------------
(1) These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude variable account expenses that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest. These ratios are annualized for periods less than one year. (2) These ratios represent the annualized contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded. (3) These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. Although the total return is presented as a range of maximum to minimum values, based on the price level representing the minimum and maximum expense ratio amounts, some individual price level total returns are not within the ranges presented due to the introduction of new price levels during the year and other market factors. (4) New price level operations commenced on Feb. 4, 2004. (5) New price level operations commenced on Sept. 13, 2004. (6) New price level operations commenced on May 2, 2005. (7) New price level operations commenced on Nov. 1, 2005. (8) New price level operations commenced on April 28, 2006. RIVERSOURCE VARIABLE ACCOUNT 10 113 (9) New price level operations commenced on May 1, 2006. (10) New price level operations commenced on June 26, 2006. (11) New price level operations commenced on Sept. 15, 2006. (12) New price level operations commenced on Dec. 15, 2006. (13) New price level operations commenced on April 27, 2007. (14) New price level operations commenced on May 1, 2007. (15) New price level operations commenced on May 1, 2008. 114 RIVERSOURCE VARIABLE ACCOUNT 10 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying consolidated balance sheets of RiverSource Life Insurance Company, (a wholly owned subsidiary of Ameriprise Financial, Inc.) (the Company) as of December 31, 2008 and 2007, and the related consolidated statements of income, shareholder's equity, and cash flows for each of the three years in the period ended December 31, 2008. These financial statements are the responsibility of RiverSource Life Insurance Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of RiverSource Life Insurance Company at December 31, 2008 and 2007, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2008, in conformity with U.S. generally accepted accounting principles. As discussed in Note 3 to the consolidated financial statements, in 2008 the Company adopted Statement of Financial Accounting Standards (FAS) No. 157, Fair Value Measurements. Also discussed in Note 3, in 2007 the Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109, and American Institute of Certified Public Accountants Statement of Position 05- 1, Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts. /s/ Ernst & Young LLP Minneapolis, Minnesota March 2, 2009 RIVERSOURCE VARIABLE ACCOUNT 10 115 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (IN MILLIONS, EXCEPT SHARE AMOUNTS)
DECEMBER 31, 2008 2007 ASSETS Investments: Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2008, $19,452; 2007, $21,020) $18,070 $20,792 Common and preferred stocks, at fair value (cost: 2008 and 2007, $30) 16 29 Commercial mortgage loans, at cost (less allowance for loan losses: 2008, $17; 2007, $16) 2,737 2,892 Policy loans 722 697 Trading securities and other investments 452 155 ------------------------------------------------------------------------------------------------- Total investments 21,997 24,565 Cash and cash equivalents 3,307 980 Reinsurance recoverables 1,592 1,290 Amounts due from brokers 3 123 Deferred income taxes, net 599 9 Other accounts receivable 99 119 Accrued investment income 239 252 Deferred acquisition costs 4,424 4,429 Deferred sales inducement costs 518 511 Other assets 2,658 609 Separate account assets 41,787 58,070 ------------------------------------------------------------------------------------------------- Total assets $77,223 $90,957 ================================================================================================= LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities: Future policy benefits $28,753 $26,977 Policy claims and other policyholders' funds 172 91 Amounts due to brokers 1,862 361 Other liabilities 910 392 Separate account liabilities 41,787 58,070 ------------------------------------------------------------------------------------------------- Total liabilities 73,484 85,891 ------------------------------------------------------------------------------------------------- Shareholder's equity: Common stock, $30 par value; 100,000 shares authorized, issued and outstanding 3 3 Additional paid-in capital 2,116 2,031 Retained earnings 2,336 3,188 Accumulated other comprehensive loss, net of tax: Net unrealized securities losses (678) (116) Net unrealized derivative losses (38) (40) ------------------------------------------------------------------------------------------------- Total accumulated other comprehensive loss (716) (156) ------------------------------------------------------------------------------------------------- Total shareholder's equity 3,739 5,066 ------------------------------------------------------------------------------------------------- Total liabilities and shareholder's equity $77,223 $90,957 =================================================================================================
See Notes to Consolidated Financial Statements. 116 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2008 2007 2006 REVENUES Premiums $ 481 $ 485 $ 533 Net investment income 1,252 1,424 1,622 Policy and contract charges 1,352 1,217 1,045 Other revenue 255 255 189 Net realized investment gains (losses) (442) 61 51 ------------------------------------------------------------------------------------------------------- Total revenues 2,898 3,442 3,440 ------------------------------------------------------------------------------------------------------- BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 673 760 724 Interest credited to fixed accounts 790 847 955 Amortization of deferred acquisition costs 861 470 356 Separation costs -- 97 131 Other insurance and operating expenses 692 781 637 ------------------------------------------------------------------------------------------------------- Total benefits and expenses 3,016 2,955 2,803 ------------------------------------------------------------------------------------------------------- Pretax income (loss) (118) 487 637 Income tax provision (benefit) (189) 53 129 ------------------------------------------------------------------------------------------------------- Net income $ 71 $ 434 $ 508 =======================================================================================================
See Notes to Consolidated Financial Statements. RIVERSOURCE VARIABLE ACCOUNT 10 117 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2008 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 71 $ 434 $ 508 Adjustments to reconcile net income to net cash provided by operating activities: Capitalization of deferred acquisition costs and deferred sales inducement costs (679) (828) (813) Amortization of deferred acquisition costs and deferred sales inducement costs 982 523 404 Premium and discount amortization on Available-for-Sale 57 70 75 Deferred income taxes, net (234) 83 121 Contractholder and policyholder charges, non-cash (248) (206) (220) Net realized investment losses (gains) 442 (61) (51) Change in operating assets and liabilities: Trading securities and equity method investments, net (110) 166 320 Future policy benefits for traditional life, disability income and long term care insurance 308 275 274 Policy claims and other policyholders' funds 81 2 3 Reinsurance recoverables (302) (153) (154) Other accounts receivable 20 (28) (27) Accrued investment income 14 49 21 Other assets and liabilities, net 1,623 22 (76) ------------------------------------------------------------------------------------------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES 2,025 348 385 ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Available-for-Sale securities: Proceeds from sales 246 3,020 1,895 Maturities, sinking fund payments and calls 2,510 1,908 2,014 Purchases (1,684) (677) (1,416) Other investments, excluding policy loans: Proceeds from sales, maturities, sinking fund payments and calls 282 473 513 Purchases (250) (504) (441) Change in policy loans, net (25) (47) (36) ------------------------------------------------------------------------------------------------------- NET CASH PROVIDED BY INVESTING ACTIVITIES 1,079 4,173 2,529 ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Activity related to investment contracts and universal life- type insurance: Considerations received 2,913 1,093 1,267 Net transfers from (to) separate accounts 91 (50) (307) Surrenders and other benefits (2,931) (3,838) (3,688) Other (77) (8) -- Tax adjustment of share-based incentive compensation plan 2 2 1 Cash dividend to Ameriprise Financial, Inc. (775) (900) (300) ------------------------------------------------------------------------------------------------------- NET CASH USED IN FINANCING ACTIVITIES (777) (3,701) (3,027) ------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,327 820 (113) Cash and cash equivalents at beginning of year 980 160 273 ------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF YEAR $ 3,307 $ 980 $ 160 ======================================================================================================= Supplemental Disclosures: Income taxes paid (received), net $ 168 $ (4) $ 64 Interest paid on borrowings -- -- 1
See Notes to Consolidated Financial Statements. 118 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY THREE YEARS ENDED DECEMBER 31, 2008 (IN MILLIONS)
ACCUMULATED ADDITIONAL OTHER COMMON PAID-IN RETAINED COMPREHENSIVE STOCK CAPITAL EARNINGS INCOME/(LOSS) TOTAL --------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2005 $ 3 $2,020 $3,580 $(131) $5,472 Comprehensive income: Net income -- -- 508 -- 508 Other comprehensive income (loss), net of tax: Change in net unrealized securities losses -- -- -- (77) (77) Change in net unrealized derivative losses -- -- -- (1) (1) ------------ Total comprehensive income 430 Tax adjustment of share-based incentive compensation plan -- 1 -- -- 1 Cash dividends to Ameriprise Financial, Inc. -- -- (300) -- (300) --------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2006 $ 3 $2,021 $3,788 $(209) $5,603 Change in accounting principles, net of tax -- -- (134) -- (134) Comprehensive income: Net income -- -- 434 -- 434 Other comprehensive income (loss), net of tax: Change in net unrealized securities losses -- -- -- 52 52 Change in net unrealized derivative losses -- -- -- 1 1 ------------ Total comprehensive income 487 Tax adjustment of share-based incentive compensation plan -- 2 -- -- 2 Cash dividends to Ameriprise Financial, Inc. -- -- (900) -- (900) Non-cash capital contribution from Ameriprise Financial, Inc. -- 8 -- -- 8 --------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2007 $ 3 $2,031 $3,188 $(156) $5,066 Change in accounting principles, net of tax -- -- (30) -- (30) Comprehensive income: Net income -- -- 71 -- 71 Other comprehensive income (loss), net of tax: Change in net unrealized securities losses -- -- -- (562) (562) Change in net unrealized derivative losses -- -- -- 2 2 ------------ Total comprehensive loss (489) Tax adjustment of share-based incentive compensation plan -- 2 -- -- 2 Cash dividends to Ameriprise Financial, Inc. -- -- (775) -- (775) Non-cash capital contribution from Ameriprise Financial, Inc. -- 83 -- -- 83 Non-cash dividend to Ameriprise Financial, Inc. -- -- (118) -- (118) --------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2008 $ 3 $2,116 $2,336 $(716) $3,739 =====================================================================================================================
See Notes to Consolidated Financial Statements. RIVERSOURCE VARIABLE ACCOUNT 10 119 RiverSource Life Insurance Company -------------------------------------------------------------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Nature of Business RiverSource Life Insurance Company is a stock life insurance company with one wholly owned operating subsidiary, RiverSource Life Insurance Co. of New York ("RiverSource Life of NY"). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. ("Ameriprise Financial"). - RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. - RiverSource Life of NY is a stock life insurance company domiciled in New York, which holds Certificates of Authority in New York, North Dakota and Delaware. RiverSource Life of NY issues insurance and annuity products. On December 31, 2008, Ameriprise Financial contributed all of the issued and outstanding shares of RiverSource Tax Advantaged Investments, Inc. ("RiverSource Tax Adv. Inv.") to RiverSource Life Insurance Company. RiverSource Tax Adv. Inv. is domiciled in Delaware and is a limited partner in affordable housing partnership investments. RiverSource Life Insurance Company and its two subsidiaries are referred to collectively in these notes as "RiverSource Life". Ameriprise Financial was formerly a wholly owned subsidiary of American Express Company ("American Express"). On February 1, 2005, the American Express Board of Directors announced its intention to pursue the disposition of 100% of its shareholdings in Ameriprise Financial (the "Separation") through a tax-free distribution to American Express shareholders. Effective as of the close of business on September 30, 2005, American Express completed the Separation and the distribution of Ameriprise Financial common shares to American Express shareholders (the "Distribution"). In connection with the Distribution, Ameriprise Financial entered into certain agreements with American Express to effect the Separation and to define the responsibility for obligations arising before and after the date of the Distribution, including, among others, obligations relating to transition services, taxes, and employees. Through 2007, RiverSource Life was allocated certain expenses incurred as a result of Ameriprise Financial becoming an independent company. The separation from American Express was completed in 2007. RiverSource Life's principal products are variable deferred annuities and variable universal life insurance which are issued primarily to individuals. It also offers fixed annuities where assets accumulate until the contract is surrendered, the contractholder (or in some contracts, the annuitant) dies, or the contractholder or annuitant begins receiving benefits under an annuity payout option. It also offers immediate annuities in which payments begin within one year of issue and continue for life or for a fixed period of time. RiverSource Life's fixed deferred annuities guarantee a relatively low annual interest rate during the accumulation period (the time before annuity payments begin). However, RiverSource Life has the option of paying a higher rate set at its discretion. In addition, persons owning one type of annuity may have their interest calculated based on an increase in a broad-based stock market index. RiverSource Life issues both variable and fixed universal life insurance, traditional life insurance and disability income ("DI") insurance. Universal life insurance is a form of permanent life insurance characterized by flexible premiums, flexible death benefit amounts and unbundled pricing factors (i.e., mortality, interest and expenses). Traditional life insurance refers to whole and term life insurance policies that pay a specified sum to a beneficiary upon death of the insured for a fixed premium. Variable universal life insurance combines the premium and death benefit flexibility of universal life with underlying fund investment flexibility and the risks associated therewith. Waiver of premium and accidental death benefit riders are generally available with these life insurance products. RiverSource Life issues only non- participating life insurance policies which do not pay dividends to policyholders from realized policy margins. Under RiverSource Life's variable life insurance and variable annuity products described above, the purchaser may choose among investment options that include RiverSource Life's "general account" as well as from a variety of portfolios including common stocks, bonds, managed assets and/or short-term securities. Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and its wholly owned subsidiaries, RiverSource Life of NY and RiverSource Tax Adv. Inv. All significant intercompany accounts and transactions have been eliminated in consolidation. RESTATEMENT FOR CONSOLIDATION OF RIVERSOURCE TAX ADV. INV. The consolidated financial statements give effect to the RiverSource Tax Adv. Inv. transfer as a pooling of interests for entities under common control. Prior periods have been restated to include the accounts of RiverSource Tax Adv. Inv. using the 120 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- pooling of interests method in order to be comparable to the current year. Following are the amounts related to RiverSource Tax Adv. Inv. which are included in RiverSource Life's consolidated financial statements:
DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Total revenues $(31) $(33) $(41) Net income 11 13 22 Shareholder's equity: Retained earnings 239 347 334
RECLASSIFICATIONS The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities as described in Note 13. Certain reclassifications of prior year amounts have been made to conform to the current presentation. In the second quarter of 2008, RiverSource Life reclassified the mark-to-market adjustment on certain derivatives from net investment income to various expense lines where the mark-to-market adjustment on the related embedded derivative resides. The mark-to-market adjustment on derivatives hedging variable annuity living benefits and equity indexed annuities were reclassified to benefits, claims, losses and settlement expenses and interest credited to fixed accounts, respectively. The following table shows the impact of the reclassification of the mark-to- market adjustment and the effect of the pooling of interests of RiverSource Tax. Adv. Inv. made to RiverSource Life's previously reported Consolidated Statements of Income.
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2007 2006 ------------------------------------------------------ PREVIOUSLY RESTATED AND PREVIOUSLY RESTATED AND (IN MILLIONS) REPORTED RECLASSIFIED REPORTED RECLASSIFIED ------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 485 $ 485 $ 533 $ 533 Net investment income 1,555 1,424 1,657 1,622 Policy and contract charges 1,217 1,217 1,045 1,045 Other revenue 255 255 189 189 Net realized investment gain 61 61 51 51 ------------------------------------------------------------------------------------------------------------- Total revenues 3,573 3,442 3,475 3,440 ------------------------------------------------------------------------------------------------------------- BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 855 760 705 724 Interest credited to fixed accounts 850 847 968 955 Amortization of deferred acquisition costs 470 470 356 356 Separation costs 97 97 131 131 Other insurance and operating expenses 781 781 637 637 ------------------------------------------------------------------------------------------------------------- Total benefits and expenses 3,053 2,955 2,797 2,803 ------------------------------------------------------------------------------------------------------------- Pretax income 520 487 678 637 Income tax provision 99 53 192 129 ------------------------------------------------------------------------------------------------------------- NET INCOME $ 421 $ 434 $ 486 $ 508 =============================================================================================================
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION RiverSource Life consolidates all entities in which it holds a greater than 50% voting interest or when certain conditions are met for variable interest entities ("VIEs") and limited partnerships, except for immaterial seed money investments in separate accounts, which are accounted for as trading securities. Entities in which RiverSource Life holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. Additionally, other investments in hedge funds in which RiverSource Life holds an interest that is less than 50% are accounted for under the equity method. All other investments that are not reported at fair value as Available-for-Sale or trading securities are accounted for under the cost method where RiverSource Life owns less than a 20% voting interest and does not exercise significant influence. RiverSource Life consolidates all VIEs for which it is considered to be the primary beneficiary. The determination as to whether an entity is a VIE is based on the amount and nature of RiverSource Life's equity investment in the entity. RiverSource Life also considers other characteristics such as the ability to influence the decision making about the entity's activities and how the entity is financed. The determination as to whether RiverSource Life is considered to be the primary beneficiary is based on whether RiverSource Life will absorb a majority of the VIE's expected losses, receive a majority of the RIVERSOURCE VARIABLE ACCOUNT 10 121 RiverSource Life Insurance Company -------------------------------------------------------------------------------- VIE's expected residual return, or both. There were no consolidated VIEs as of December 31, 2008, 2007 and 2006. See Note 5 for additional information about RiverSource Life's VIEs. AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, valuation of deferred acquisition costs ("DAC") and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. INVESTMENTS Investments consist of the following: AVAILABLE-FOR-SALE SECURITIES Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (loss), net of income tax provision (benefit) and net of adjustments in other asset and liability balances, such as DAC, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet date. Gains and losses are recognized in consolidated results of operations upon disposition of the securities. In addition, losses are also recognized when management determines that a decline in value is other- than-temporary, which requires judgment regarding the amount and timing of recovery. RiverSource Life regularly reviews Available-for-Sale securities for impairments in value considered to be other-than-temporary. The cost basis of securities that are determined to be other-than-temporarily impaired is written down to current fair value with a corresponding charge to net income. A write- down for impairment can be recognized for both credit-related events and for change in fair value due to changes in interest rates. Once a security is written down to fair value through net income, any subsequent recovery in value cannot be recognized in net income until the principal is returned. Factors RiverSource Life considers in determining whether declines in the fair value of fixed-maturity securities are other-than-temporary include: 1) the extent to which the market value is below amortized cost; 2) RiverSource Life's ability and intent to hold the investment for a sufficient period of time for it to recover to an amount at least equal to its carrying value; 3) the duration of time in which there has been a significant decline in value; 4) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and 5) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. For structured investments (e.g., mortgage backed securities), RiverSource Life also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments, cumulative loss projections and discounted cash flows in assessing potential other-than- temporary impairment of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management. Other-than-temporary impairment charges are recorded in net realized investment gains (losses) within the Consolidated Statements of Income. See Note 11 for information regarding the fair values of assets and liabilities. COMMERCIAL MORTGAGE LOANS, NET Commercial mortgage loans, net, reflect principal amounts outstanding less the allowance for loan losses. The allowance for loan losses is measured as the excess of the loan's recorded investment over (i) present value of its expected principal and interest payments discounted at the loan's effective interest rate, or (ii) the fair value of collateral. Additionally, the level of the allowance for loan losses considers other factors, including historical experience, economic conditions and geographic concentrations. Management regularly evaluates the adequacy of the allowance for loan losses and believes it is adequate to absorb estimated losses in the portfolio. RiverSource Life generally stops accruing interest on commercial mortgage loans for which interest payments are delinquent more than three months. Based on management's judgment as to the ultimate collectibility of principal, interest payments received are either recognized as income or applied to the recorded investment in the loan. POLICY LOANS Policy loans include life insurance policy and annuity loans. These loans are carried at the aggregate of the unpaid loan balances, which do not exceed the cash surrender values of underlying products, plus accrued interest. 122 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- TRADING SECURITIES AND OTHER INVESTMENTS Included in trading securities and other investments are separate account and mutual fund seed money, equity method investments in hedge funds, trading bonds, interests in affordable housing partnerships and below investment grade syndicated bank loans. Separate account and mutual fund seed money is carried at fair value with changes in value recognized within net investment income. Affordable housing partnerships and investments in hedge funds are accounted for under the equity method. Below investment grade syndicated bank loans reflect amortized cost less allowance for losses. CASH AND CASH EQUIVALENTS Cash equivalents include highly liquid investments with original maturities of 90 days or less. REINSURANCE RiverSource Life cedes significant amounts of insurance risk to other insurers under reinsurance agreements. Reinsurance premium paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Traditional life, long term care ("LTC") and DI reinsurance premium, net of change in any prepaid reinsurance asset, is reported as a reduction of premiums. Fixed and variable universal life reinsurance premium is reported as a reduction of policy and contract charges. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Future policy benefits and policy claims and other policyholders' funds recoverable under reinsurance contracts are recorded as reinsurance recoverables. RiverSource Life also assumes life insurance and fixed annuity business from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within future policy benefits. See Note 7 for additional information on reinsurance. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. See Note 11 for information regarding RiverSource Life's fair value measurement of derivative instruments. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. RiverSource Life primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. RiverSource Life occasionally designates derivatives as (1) hedges of changes in the fair value of assets, liabilities, or firm commitments ("fair value hedges") or (2) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedges"). For derivative instruments that do not qualify for hedge accounting or are not designated as hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives hedging variable annuity living benefits and equity indexed annuities are included within benefits, claims, losses and settlement expenses and interest credited to fixed accounts, respectively. Changes in fair value of all other derivatives is a component of net investment income. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as of the corresponding hedged assets, liabilities or firm commitments, are recognized in current earnings. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portions of the gain or loss on the derivative instruments are reported in accumulated other comprehensive income (loss) and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported currently in earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) may be recognized into earnings over the period that the hedged item impacts earnings. For any hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately. Derivative instruments that are entered into for hedging purposes are designated as such at the time RiverSource Life enters into the contract. For all derivative instruments that are designated for hedging activities, RiverSource Life formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. RIVERSOURCE VARIABLE ACCOUNT 10 123 RiverSource Life Insurance Company -------------------------------------------------------------------------------- RiverSource Life formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, RiverSource Life will discontinue the application of hedge accounting. The equity component of the equity indexed annuity obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed minimum accumulation benefit ("GMAB") and guaranteed minimum withdrawal benefit ("GMWB") provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. The fair value of embedded derivatives associated with annuities is included in future policy benefits. The change in fair value of the equity indexed annuity embedded derivatives is reflected in the interest credited to fixed accounts. The changes in the fair value of the GMWB and GMAB embedded derivatives are reflected in benefits, claims, losses and settlement expenses. DEFERRED ACQUISITION COSTS DAC represent the costs of acquiring new business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity and insurance products. These costs are deferred to the extent they are recoverable from future profits or premiums. The DAC associated with insurance or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. Direct sales commissions and other costs deferred as DAC are amortized over time. For annuity and universal life contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For annuity and universal life insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management's best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. For other life, DI and LTC insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and therefore are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in RiverSource Life's consolidated results of operations. For annuity, life, DI and LTC insurance products, key assumptions underlying those long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing annuity and insurance business during the DAC amortization period. The client asset value growth rates are the rates at which variable annuity and variable universal life insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. RiverSource Life typically uses a mean reversion process as a guideline in setting near-term equity asset growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term growth rate is reviewed to ensure consistency with management's assessment of anticipated equity market performance. In the fourth quarter of 2008, RiverSource Life decided to constrain near-term equity growth rates below the level suggested by mean reversion. This constraint is based on RiverSource Life's analysis of historical equity returns following downturns in the market. DAC amortization expense recorded in a period when client asset value growth rates exceed near-term estimates will typically be less than in a period when growth rates fall short of near-term estimate. 124 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless management identifies a significant deviation over the course of its quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. DEFERRED SALES INDUCEMENT COSTS Deferred sales inducement costs ("DSIC") consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. The amortization of DSIC is recorded in benefits, claims, losses and settlement expenses. SEPARATE ACCOUNT ASSETS AND LIABILITIES Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity contractholder and variable life insurance policyholders. RiverSource Life receives mortality and expense risk and other fees, guarantee fees and cost of insurance charges from the related accounts. FUTURE POLICY BENEFITS AND POLICY CLAIMS AND OTHER POLICYHOLDERS' FUNDS FIXED ANNUITIES AND VARIABLE ANNUITY GUARANTEES Future policy benefits and policy claims and other policyholders' funds related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status. Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. The majority of the variable annuity contracts offered by RiverSource Life contain guaranteed minimum death benefit ("GMDB") provisions. When market values of the customer's accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. RiverSource Life also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up ("GGU") benefits. In addition, RiverSource Life offers contracts containing GMWB and GMAB provisions and, until May 2007, RiverSource Life offered contracts containing guaranteed minimum income benefit ("GMIB") provisions. As a result of the recent market decline, the amount by which guarantees exceed the accumulation value has increased significantly. In determining the liabilities for variable annuity death benefits, GMIB and the life contingent benefits associated with GMWB, RiverSource Life projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management will review, and where appropriate, adjust its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management will review and update these assumptions annually in the third quarter of each year. The variable annuity death benefit liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments. The embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions are recorded at fair value. See Note 11 for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions are determined in the same way as the liability for variable annuity death benefits. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 4.6% to 9.5% at December 31, 2008, depending on year of issue, with an average rate of approximately 5.8%. RIVERSOURCE VARIABLE ACCOUNT 10 125 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Liabilities for equity indexed annuities are equal to the accumulation of host contract values covering guaranteed benefits and the market value of embedded equity options. LIFE, DISABILITY INCOME AND LONG TERM CARE INSURANCE Future policy benefits and policy claims and other policyholders' funds related to life, DI and LTC insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC policies as claims are incurred in the future. Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders. Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for RiverSource Life's experience. Interest rates used with DI claims ranged from 3.0% to 8.0% at December 31, 2008, with an average rate of 4.8%. Interest rates used with LTC claims ranged from 4.0% to 7.0% at December 31, 2008, with an average rate of 4.1%. Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life, DI and LTC policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on RiverSource Life's experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. Anticipated interest rates for term and whole life ranged from 4.0% to 10.0% at December 31, 2008, depending on policy form, issue year and policy duration. Anticipated interest rates for DI vary by plan and were 7.5% and 6.0% at policy issue grading to 5.0% over five years and 4.5% over 20 years, respectively. Anticipated discount rates for LTC vary by plan and were 5.8% at December 31, 2008 and range from 5.9% to 6.3% over 40 years. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverable. SOURCES OF REVENUE RiverSource Life's principal sources of revenue include premium revenues, net investment income and policy and contract charges. PREMIUM REVENUES Premium revenues include premiums on traditional life, DI and LTC insurance products and immediate annuities with a life contingent feature. Premiums on traditional life, DI and LTC insurance are net of reinsurance ceded and are recognized as revenue when due. NET INVESTMENT INCOME Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial mortgage loans and policy loans, mark-to-market adjustment on trading securities and certain derivatives and pro-rata share of net income or loss of equity method investments. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available- for-Sale and commercial mortgage loans so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. POLICY AND CONTRACT CHARGES Policy and contract charges include mortality and expense risk fees and certain charges assessed on annuities and fixed and variable universal life insurance, such as cost of insurance, net of reinsurance premiums for universal life insurance products, and administrative and surrender charges. Mortality and expense risk fees include risk, management and administration fees, which are generated directly and indirectly from RiverSource Life's separate account assets. Cost of insurance charges on fixed 126 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- and variable universal life insurance and contract charges and surrender charges on annuities and universal and variable universal life insurance are recognized as revenue when collected. NET REALIZED INVESTMENT GAINS (LOSSES) Realized gains and losses are recognized using the specific identification method, on a trade date basis, and charges are recorded when securities are determined to be other-than-temporarily impaired. OTHER INSURANCE AND OPERATING EXPENSES Other insurance and operating expenses primarily include expenses allocated to RiverSource Life from its parent, Ameriprise Financial, for RiverSource Life's share of compensation, professional and consultant fees, information technology and communications, facilities and equipment, advertising and promotion and legal and regulatory. INCOME TAXES As a result of the Separation of Ameriprise Financial from American Express, RiverSource Life will not be able to file a consolidated U.S. federal income tax return with other members of Ameriprise Financial's affiliated group until 2010. RiverSource Life's provision for income taxes represents the net amount of income taxes that it expects to pay or to receive from various taxing jurisdictions in connection with its operations. RiverSource Life provides for income taxes based on amounts that it believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. In connection with the provision for income taxes, the consolidated financial statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. Among RiverSource Life's deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. RiverSource Life is required to establish a valuation allowance for any portion of deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination, a) future taxable income exclusive of reversing temporary differences and carryforwards, b) future reversals of existing taxable temporary differences, c) taxable income in prior carryback years, and d) tax planning strategies. 3. RECENT ACCOUNTING PRONOUNCEMENTS In January 2009, the Financial Accounting Standards Board ("FASB") issued FASB Staff Position ("FSP") Emerging Issues Task Force ("EITF") No. 99-20-1 "Amendments to the Impairment Guidance of EITF Issue No. 99-20" ("FSP EITF 99- 20-1"). FSP EITF 99-20-1 amends the impairment guidance in EITF 99-20 to be more consistent with other impairment models used for debt securities. FSP EITF 99- 20-1 is effective prospectively for reporting periods ending after December 15, 2008. The adoption of FSP EITF 99-20-1 did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. In December 2008, the FASB issued FSP FAS 140-4 and FASB Interpretation No. ("FIN") 46(R)-8 "Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities" ("FSP 140-4"), which is effective for the first reporting period ending after December 15, 2008. This FSP requires additional disclosure related to transfers of financial assets and variable interest entities. RiverSource Life applied the disclosure requirements of this FSP as of December 31, 2008. In November 2008, the FASB issued EITF No. 08-6 "Equity Method Investments Accounting Considerations" ("EITF 08-6"), which is effective for the first annual reporting period beginning on or after December 15, 2008. EITF 08-6 clarifies the effects of the issuance of Statement of Financial Accounting Standards ("SFAS") No. 141 (revised 2007) "Business Combinations" ("SFAS 141(R)") and SFAS No. 160 "Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB No. 51" ("SFAS 160"). See further information on the issuance of SFAS 141(R) and SFAS 160 below. RiverSource Life will apply EITF 08-6 to any transactions within scope occurring after December 31, 2008. In November 2008, the FASB issued EITF No. 08-7 "Accounting for Defensive Intangible Assets" ("EITF 08-7"), which is effective for the first annual reporting period beginning on or after December 15, 2008. EITF 08-7 provides guidance on intangible assets acquired after the effective date of SFAS 141(R) that an entity does not intend to actively use but intends to hold to prevent others from using. RiverSource Life will apply EITF 08-7 to any transactions within scope occurring after December 31, 2008. RIVERSOURCE VARIABLE ACCOUNT 10 127 RiverSource Life Insurance Company -------------------------------------------------------------------------------- In October 2008, the FASB issued FSP FAS 157-3, "Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active" ("FSP 157-3"), which was effective upon issuance, including prior periods for which financial statements have not been issued. FSP 157-3 clarifies the application of SFAS No. 157 "Fair Value Measurements" ("SFAS 157") in a market that is not active and provides an example of key considerations to determine the fair value of financial assets when the market for those assets is not active. The adoption of FSP 157-3 did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. In March 2008, the FASB issued SFAS No. 161 "Disclosures about Derivative Instruments and Hedging Activities -- an amendment of FASB Statement No. 133" ("SFAS 161"). SFAS 161 intends to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures about their impact on an entity's financial position, financial performance and cash flows. SFAS 161 requires disclosures regarding the objectives for using derivative instruments, the fair value of derivative instruments and their related gains and losses, and the accounting for derivatives and related hedged items. SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008, with early adoption permitted. RiverSource Life is currently evaluating the impact of SFAS 161 on its disclosures. RiverSource Life's adoption of SFAS 161 will not impact its consolidated financial condition and results of operations. In December 2007, the FASB issued SFAS 141(R), which establishes principles and requirements for how an acquirer recognizes and measures the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in an acquiree, and goodwill acquired. SFAS 141(R) also requires an acquirer to disclose information about the financial effects of a business combination. SFAS 141(R) is effective prospectively for business combinations with an acquisition date on or after the beginning of the first annual reporting period beginning on or after December 15, 2008, with early adoption prohibited. RiverSource Life will apply the standard to any business combinations within the scope of SFAS 141(R) occurring after December 31, 2008. In December 2007, the FASB issued SFAS No. 160, which establishes the accounting and reporting for ownership interest in subsidiaries not attributable, directly or indirectly, to a parent. SFAS 160 requires that noncontrolling (minority) interests be classified as equity (instead of as a liability) within the consolidated balance sheets, and net income attributable to both the parent and the noncontrolling interest be disclosed on the face of the consolidated statements of income. SFAS 160 is effective for fiscal years beginning after December 15, 2008, and interim periods within those years with early adoption prohibited. The provisions of SFAS 160 are to be applied prospectively, except for the presentation and disclosure requirements which are to be applied retrospectively to all periods presented. RiverSource Life is currently evaluating the impact of SFAS 160 on its consolidated financial condition and results of operations. In September 2006, the FASB issued SFAS 157 which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 applies under other accounting pronouncements that require or permit fair value measurements. Accordingly, SFAS 157 does not require any new fair value measurements. The provisions of SFAS 157 are required to be applied prospectively as of the beginning of the fiscal year in which SFAS 157 is initially applied, except for certain financial instruments as defined in SFAS 157 that require retrospective application. Any retrospective application will be recognized as a cumulative effect adjustment to the opening balance of retained earnings for the fiscal year of adoption. RiverSource Life adopted SFAS 157 effective January 1, 2008 and recorded a cumulative effect reduction to the opening balance of retained earnings of $30 million, net of DAC and DSIC amortization and income taxes. This reduction to retained earnings was related to adjusting the fair value of certain derivatives RiverSource Life uses to hedge its exposure to market risk related to certain variable annuity riders. RiverSource Life initially recorded these derivatives in accordance with EITF Issue No. 02-3 "Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities" ("EITF 02-3"). SFAS 157 nullifies the guidance in EITF 02-3 and requires these derivatives to be marked to the price RiverSource Life would receive to sell the derivatives to a market participant (an exit price). The adoption of SFAS 157 also resulted in adjustments to the fair value of RiverSource Life's embedded derivative liabilities associated with certain variable annuity riders. Since there is no market for these liabilities, RiverSource Life considered the assumptions participants in a hypothetical market would make to determine an exit price. As a result, RiverSource Life adjusted the valuation of these liabilities by updating certain policyholder assumptions, adding explicit margins to provide for profit, risk and expenses and adjusting the rate used to discount expected cash flows to reflect a current market estimate of RiverSource Life's risk of nonperformance specific to these liabilities. These adjustments resulted in an adoption impact of a $4 million increase in earnings, net of DAC and DSIC amortization and income taxes, at January 1, 2008. The nonperformance risk component of the adjustment is specific to the risk of RiverSource Life not fulfilling these liabilities. As RiverSource Life's estimate of this credit spread widens or tightens, the liability will decrease or increase. 128 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- In accordance with FSP FAS 157-2, "Effective Date of FASB Statement No. 157" ("FSP 157-2"), RiverSource Life deferred the adoption of SFAS 157 until January 1, 2009 for all nonfinancial assets and nonfinancial liabilities, except for those that are recognized or disclosed at fair value in the financial statements on a recurring basis. See Note 11 for additional information regarding the fair values of RiverSource Life's assets and liabilities. In June 2006, the FASB issued FIN 48, "Accounting for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. RiverSource Life adopted FIN 48 as of January 1, 2007. The effect of adopting FIN 48 on RiverSource Life's consolidated financial condition and results of operations was not material. In September 2005, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position ("SOP") 05-1, "Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts," ("SOP 05-1"). SOP 05-1 provides clarifying guidance on accounting for DAC associated with an insurance or annuity contract that is significantly modified or is internally replaced with another contract. Prior to adoption, RiverSource Life accounted for many of these transactions as contract continuations and continued amortizing existing DAC against revenue for the new or modified contract. Effective January 1, 2007, RiverSource Life adopted SOP 05-1 resulting in these transactions being prospectively accounted for as contract terminations. Consistent with this, RiverSource Life now anticipates these transactions in establishing amortization periods and other valuation assumptions. As a result of adopting SOP 05-1, RiverSource Life recorded as a cumulative change in accounting principle $206 million, reducing DAC by $204 million, DSIC by $11 million and liabilities for future policy benefits by $9 million. The after-tax decrease to retained earnings for these changes was $134 million. 4. INVESTMENTS AVAILABLE-FOR-SALE SECURITIES The following is a summary of Available-for-Sale securities by type:
DECEMBER 31, 2008 ------------------------------------------------------ GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR DESCRIPTION OF SECURITIES (IN MILLIONS) COST GAINS LOSSES VALUE ------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $12,030 $ 86 $(1,123) $10,993 Mortgage and other asset backed securities 6,961 98 (454) 6,605 U.S. government and agencies obligations 200 11 -- 211 State and municipal obligations 164 1 (20) 145 Foreign government bonds and obligations 95 16 (4) 107 Structured investments(a) 2 7 -- 9 ------------------------------------------------------------------------------------------------------------- Total fixed maturities 19,452 219 (1,601) 18,070 Common and preferred stocks 30 -- (14) 16 ------------------------------------------------------------------------------------------------------------- Total $19,482 $219 $(1,615) $18,086 =============================================================================================================
(a) Includes unconsolidated collateralized debt obligations.
DECEMBER 31, 2007 ------------------------------------------------------ GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR DESCRIPTION OF SECURITIES (IN MILLIONS) COST GAINS LOSSES VALUE ------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $12,870 $112 $(307) $12,675 Mortgage and other asset backed securities 7,637 33 (84) 7,586 U.S. government and agencies obligations 249 7 (1) 255 State and municipal obligations 165 3 (6) 162 Foreign government bonds and obligations 97 15 -- 112 Structured investments(a) 2 -- -- 2 ------------------------------------------------------------------------------------------------------------- Total fixed maturities 21,020 170 (398) 20,792 Common and preferred stocks 30 -- (1) 29 ------------------------------------------------------------------------------------------------------------- Total $21,050 $170 $(399) $20,821 =============================================================================================================
(a) Includes unconsolidated collateralized debt obligations. RIVERSOURCE VARIABLE ACCOUNT 10 129 RiverSource Life Insurance Company -------------------------------------------------------------------------------- At December 31, 2008 and 2007, fixed maturity securities comprised approximately 82% and 85%, respectively, of RiverSource Life's total investments. These securities were rated by Moody's Investors Service ("Moody's") and Standard & Poor's ("S&P"), except for approximately $1.1 billion and $1.3 billion of securities at December 31, 2008 and 2007, respectively, which were rated by RiverSource Investments, LLC's internal analysts using criteria similar to Moody's and S&P. Ratings on investment grade securities are presented using S&P's convention and, if the two agencies' ratings differ, the lower rating was used. A summary of fixed maturity securities by rating was as follows:
DECEMBER 31, 2008 DECEMBER 31, 2007 ---------------------------------------------------------------------------------- PERCENT OF PERCENT OF RATINGS (IN MILLIONS, EXCEPT AMORTIZED FAIR TOTAL FAIR AMORTIZED FAIR TOTAL FAIR PERCENTAGES) COST VALUE VALUE COST VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- AAA $ 7,038 $ 6,779 38% $ 7,854 $ 7,815 38% AA 1,071 1,017 6 2,046 2,029 10 A 4,132 3,883 21 3,973 3,938 19 BBB 5,901 5,388 30 5,586 5,514 26 Below investment grade 1,310 1,003 5 1,561 1,496 7 -------------------------------------------------------------------------------------------------------------------------- Total fixed maturities $19,452 $18,070 100% $21,020 $20,792 100% ==========================================================================================================================
At December 31, 2008 and 2007, approximately 44% and 45%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of shareholder's equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:
DECEMBER 31, 2008 ---------------------------------------------------------------------------------- (IN MILLIONS) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL -------------------------------------------------------------------------------------------------------------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED DESCRIPTION OF SECURITIES VALUE LOSSES VALUE LOSSES VALUE LOSSES -------------------------------------------------------------------------------------------------------------------------- Corporate debt securities $5,086 $(372) $3,309 $ (751) $ 8,395 $(1,123) Mortgage and other asset backed securities 879 (139) 1,457 (315) 2,336 (454) U.S. government and agencies obligations -- -- 11 -- 11 -- State and municipal obligations 17 (1) 78 (19) 95 (20) Foreign government bonds and obligations 20 (4) -- -- 20 (4) Common and preferred stock -- -- 16 (14) 16 (14) -------------------------------------------------------------------------------------------------------------------------- Total $6,002 $(516) $4,871 $(1,099) $10,873 $(1,615) ==========================================================================================================================
DECEMBER 31, 2007 ---------------------------------------------------------------------------------- (IN MILLIONS) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL -------------------------------------------------------------------------------------------------------------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED DESCRIPTION OF SECURITIES VALUE LOSSES VALUE LOSSES VALUE LOSSES -------------------------------------------------------------------------------------------------------------------------- Corporate debt securities $1,477 $(45) $ 7,083 $(262) $ 8,560 $(307) Mortgage and other asset backed securities 888 (15) 4,219 (69) 5,107 (84) U.S. government and agencies obligations -- -- 154 (1) 154 (1) State and municipal obligations 47 (4) 63 (2) 110 (6) Foreign government bonds and obligations -- -- 2 -- 2 -- Common and preferred stock 29 (1) -- -- 29 (1) -------------------------------------------------------------------------------------------------------------------------- Total $2,441 $(65) $11,521 $(334) $13,962 $(399) ==========================================================================================================================
In evaluating potential other-than-temporary impairments, RiverSource Life considers the extent to which amortized costs exceeds fair value and the duration of that difference. The following table summarizes the unrealized losses by ratio of fair value to amortized cost:
DECEMBER 31, 2008 (IN MILLIONS, EXCEPT ------------------------------------------------------------------------------------------------ NUMBER OF SECURITIES) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL ------------------------------------------------------------------------------------------------------------------------ GROSS GROSS RATIO OF FAIR VALUE NUMBER OF FAIR UNREALIZED NUMBER OF FAIR UNREALIZED NUMBER OF TO AMORTIZED COST SECURITIES VALUE LOSSES SECURITIES VALUE LOSSES SECURITIES ------------------------------------------------------------------------------------------------------------------------ 95% -- 100% 191 $3,181 $ (75) 69 $1,068 $ (23) 260 90% -- 95% 98 1,667 (129) 48 1,001 (86) 146 80% -- 90% 62 747 (119) 82 1,465 (271) 144 Less than 80% 47 407 (193) 150 1,337 (719) 197 ------------------------------------------------------------------------------------------------------------------------ Total 398 $6,002 $(516) 349 $4,871 $(1,099) 747 ======================================================================================================================== DECEMBER 31, 2008 (IN MILLIONS, EXCEPT -------------------------- NUMBER OF SECURITIES) TOTAL -------------------------------------------------- GROSS RATIO OF FAIR VALUE FAIR UNREALIZED TO AMORTIZED COST VALUE LOSSES -------------------------------------------------- 95% -- 100% $ 4,249 $ (98) 90% -- 95% 2,668 (215) 80% -- 90% 2,212 (390) Less than 80% 1,744 (912) -------------------------------------------------- Total $10,873 $(1,615) ==================================================
130 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company --------------------------------------------------------------------------------
DECEMBER 31, 2007 (IN MILLIONS, EXCEPT ------------------------------------------------------------------------------------------------ NUMBER OF SECURITIES) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL ------------------------------------------------------------------------------------------------------------------------ GROSS GROSS RATIO OF FAIR VALUE NUMBER OF FAIR UNREALIZED NUMBER OF FAIR UNREALIZED NUMBER OF TO AMORTIZED COST SECURITIES VALUE LOSSES SECURITIES VALUE LOSSES SECURITIES ------------------------------------------------------------------------------------------------------------------------ 95% -- 100% 164 $2,015 $(25) 486 $10,169 $(180) 650 90% -- 95% 31 305 (22) 48 811 (57) 79 80% -- 90% 4 121 (18) 32 461 (66) 36 Less than 80% 1 -- -- 10 80 (31) 11 ------------------------------------------------------------------------------------------------------------------------ Total 200 $2,441 $(65) 576 $11,521 $(334) 776 ======================================================================================================================== DECEMBER 31, 2007 (IN MILLIONS, EXCEPT -------------------------- NUMBER OF SECURITIES) TOTAL -------------------------------------------------- GROSS RATIO OF FAIR VALUE FAIR UNREALIZED TO AMORTIZED COST VALUE LOSSES -------------------------------------------------- 95% -- 100% $12,184 $(205) 90% -- 95% 1,116 (79) 80% -- 90% 582 (84) Less than 80% 80 (31) -------------------------------------------------- Total $13,962 $(399) ==================================================
As part of RiverSource Life's ongoing monitoring process, management determined that a majority of the increase in gross unrealized losses on its Available-for- Sale securities in 2008 was attributable primarily to widening of credit spreads across sectors. A majority of the unrealized losses for the year ended December 31, 2008 related to corporate debt securities and mortgage backed and asset backed securities. From an overall perspective, the gross unrealized losses were not concentrated in any individual industries or with any individual securities. The securities with a fair value to amortized cost ratio of 80%-90% primarily related to the banking, communications, energy, and utility industries. The total gross unrealized loss related to the banking industry was $91 million. The securities with a fair value to amortized cost ratio of less than 80% primarily relate to the consumer cyclical, communications, real estate investment trusts, and consumer non-cyclical industries. The largest unrealized loss associated with an individual issuer, excluding GNMA, FNMA and FHLMC mortgage backed securities, was $34 million. The securities related to this issuer have a fair value to amortized cost ratio of 65% and have been in an unrealized loss position for more than 12 months. RiverSource Life believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value. In addition, RiverSource Life has the ability and intent to hold these securities until anticipated recovery which may not be until maturity. RiverSource Life regularly reviews Available-for-Sale securities for impairments in value considered to be other-than-temporary. See Note 2 for additional information regarding RiverSource Life's evaluation of potential other-than- temporary impairments. RiverSource Life's total mortgage and asset backed exposure at December 31, 2008 was $6.6 billion which included $3.5 billion of residential mortgage backed securities and $2.4 billion of commercial mortgage backed securities. At December 31, 2008, residential mortgage backed securities included $3.0 billion of agency-backed securities, $0.3 billion of Alt-A securities, and $0.2 billion of prime, non-agency securities. With respect to the Alt-A securities, the vast majority are rated AAA. None of the structures are levered, and the majority of the AAA-rated holdings are "super senior" bonds, meaning they have more collateral support or credit enhancement than required to receive a AAA rating. The prime, non-agency securities are a seasoned portfolio, almost entirely 2005 and earlier production, with the vast majority AAA-rated. With regard to asset backed securities, RiverSource Life's exposure at December 31, 2008 was $0.7 billion, which included $0.1 billion of securities backed by subprime collateral. These securities are predominantly AAA-rated bonds backed by seasoned, traditional, first lien collateral. Holdings include both floating rate and short-duration, fixed securities. RiverSource Life has no other structured or hedge fund investments with exposure to subprime residential mortgages. The change in net unrealized securities gains (losses) in other comprehensive income includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period (holding gains (losses)); (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales and other-than-temporary impairments of Available-for-Sale securities (reclassification of realized gains (losses)) and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC and annuity liabilities, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following table presents the components of the net unrealized securities gains (losses), net of tax, included in accumulated other comprehensive loss:
(IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Net unrealized securities losses at January 1 $(116) $(168) $ (91) Holding (losses) gains, net of tax of $405, $38 and $63, respectively (754) 70 (116) Reclassification of realized gains, net of tax of $3, $16 and $17, respectively (5) (28) (33) DAC, net of tax of $80, $5 and $15, respectively 148 (7) 29 DSIC, net of tax of $11, nil and $2, respectively 21 (1) 3 Fixed annuity liabilities, net of tax of $15, $11 and $22, respectively 28 18 40 ------------------------------------------------------------------------------------------------------- Net unrealized securities losses at December 31 $(678) $(116) $(168) =======================================================================================================
RIVERSOURCE VARIABLE ACCOUNT 10 131 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Available-for-Sale securities by maturity at December 31, 2008 were as follows:
AMORTIZED FAIR (IN MILLIONS) COST VALUE ------------------------------------------------------------------------------------------------- Due within one year $ 830 $ 824 Due after one year through five years 7,229 6,718 Due after five years through 10 years 3,112 2,707 Due after 10 years 1,318 1,207 ------------------------------------------------------------------------------------------------- 12,489 11,456 Mortgage and other asset backed securities 6,961 6,605 Structured investments 2 9 Common and preferred stocks 30 16 ------------------------------------------------------------------------------------------------- Total $19,482 $18,086 =================================================================================================
The expected payments on mortgage and other asset backed securities and structured investments may not coincide with their contractual maturities. As such, these securities, as well as common and preferred stocks, were not included in the maturities distribution. The table below includes sales, maturities, and purchases of investments classified as Available-for-Sale:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Sales $ 246 $3,020 $ 1,895 Maturities, sinking fund payments and calls 2,510 1,908 2,014 Purchases (1,684) (677) (1,416)
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Gross realized investment gains $ 13 $ 64 $ 61 Gross realized investment losses (6) (20) (10) Other-than-temporary impairments (440) (4) --
The $440 million of other-than-temporary impairments in 2008 primarily related to credit-related losses on non-agency residential mortgage backed securities, corporate debt securities primarily in the financial services industry and asset backed and other securities. The $4 million of other-than-temporary impairments in 2007 related to corporate debt securities in the publishing and home building industries which were downgraded in 2007. At December 31, 2008 and 2007, bonds carried at $6 million and $7 million, respectively, were on deposit with various states as required by law. COMMERCIAL MORTGAGE LOANS, NET The following is a summary of commercial mortgage loans:
DECEMBER 31, -------------------------- (IN MILLIONS) 2008 2007 ------------------------------------------------------------------------------------------------- Commercial mortgage loans $2,754 $2,908 Less: allowance for loan losses (17) (16) ------------------------------------------------------------------------------------------------- Commercial mortgage loans, net $2,737 $2,892 =================================================================================================
Commercial mortgage loans are first mortgages on real estate. RiverSource Life holds the mortgage documents, which gives it the right to take possession of the property if the borrower fails to perform according to the terms of the agreements. Commercial mortgage loan fundings are restricted by state insurance regulatory authorities to 80% or less of the market value of the real estate at the time of origination of the loan. The balances of and changes in the allowance for loan losses were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Balance at January 1 $16 $ 37 $41 Provision for loan losses 1 (21) -- Foreclosures, write-offs and loan sales -- -- (4) ------------------------------------------------------------------------------------------------------- Balance at December 31 $17 $ 16 $37 =======================================================================================================
132 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Concentrations of credit risk of commercial mortgage loans by region were as follows:
DECEMBER 31, ------------------------------------------------------ (IN MILLIONS) 2008 2007 ------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING SHEET COMMITMENTS SHEET COMMITMENTS ------------------------------------------------------------------------------------------------------------- Commercial mortgage loans by U.S. region Atlantic $ 880 $ 3 $ 922 $ 22 North Central 629 10 687 33 Pacific 463 20 461 21 Mountain 319 10 343 9 South Central 287 -- 298 8 New England 176 -- 197 8 ------------------------------------------------------------------------------------------------------------- 2,754 43 2,908 101 Less: allowance for loan losses (17) -- (16) -- ------------------------------------------------------------------------------------------------------------- Total $2,737 $43 $2,892 $101 =============================================================================================================
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
DECEMBER 31, ------------------------------------------------------ (IN MILLIONS) 2008 2007 ------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING SHEET COMMITMENTS SHEET COMMITMENTS ------------------------------------------------------------------------------------------------------------- Commercial mortgage loans by property type Office buildings $ 777 $18 $ 874 $ 12 Shopping centers and retail 869 23 860 66 Apartments 383 -- 419 8 Industrial buildings 485 2 510 9 Hotels and motels 76 -- 78 -- Medical buildings 32 -- 42 -- Mixed use 50 -- 52 1 Other 82 -- 73 5 ------------------------------------------------------------------------------------------------------------- 2,754 43 2,908 101 Less: allowance for loan losses (17) -- (16) -- ------------------------------------------------------------------------------------------------------------- Total $2,737 $43 $2,892 $101 =============================================================================================================
Commitments to fund commercial mortgages were made in the ordinary course of business. The funding commitments at December 31, 2008 and 2007 approximate fair value. BELOW INVESTMENT GRADE SYNDICATED BANK LOANS, NET The following is a summary of below investment grade syndicated bank loans:
DECEMBER 31, -------------------------- (IN MILLIONS) 2008 2007 ------------------------------------------------------------------------------------------------- Below investment grade syndicated bank loans $260 $62 Less: allowance for loan losses (12) (4) ------------------------------------------------------------------------------------------------- Net below investment grade syndicated bank loans $248 $58 =================================================================================================
Below investment grade syndicated bank loans, which are included as a component of other investments, represent loans in which a group of lenders provide funds to borrowers. There is usually one originating lender which retains a small percentage and syndicates the remainder. TRADING SECURITIES Net recognized gains related to trading securities were $10 million at December 31, 2008 and net recognized losses were $24 million and $36 million for the years ended December 31, 2007 and 2006, respectively. RIVERSOURCE VARIABLE ACCOUNT 10 133 RiverSource Life Insurance Company -------------------------------------------------------------------------------- SOURCES OF INVESTMENT INCOME AND NET REALIZED INVESTMENT GAINS (LOSSES) Net investment income is summarized as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Income on fixed maturities $1,043 $1,187 $1,409 Income on commercial mortgage loans 173 173 181 Trading securities and other investments 55 82 51 ------------------------------------------------------------------------------------------------------- 1,271 1,442 1,641 Less: Investment expenses 19 18 19 ------------------------------------------------------------------------------------------------------- Total $1,252 $1,424 $1,622 =======================================================================================================
Net realized investment gains (losses) are summarized as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Fixed maturities $(433) $40 $50 Commercial mortgage loans (1) -- 1 Trading securities and other investments (8) -- -- Reduction in the allowance for loan losses -- 21 -- ------------------------------------------------------------------------------------------------------- Total $(442) $61 $51 =======================================================================================================
5. VARIABLE INTEREST ENTITIES RiverSource Tax Adv. Inv., a subsidiary of RiverSource Life Insurance Company, has variable interests in affordable housing partnerships for which it is not the primary beneficiary and, therefore, does not consolidate. RiverSource Tax Adv. Inv.'s maximum exposure to loss as a result of its investment in the affordable housing partnerships is limited to the carrying values. RiverSource Tax Adv. Inv. has no obligation to provide further financial or other support to the affordable housing partnerships nor has RiverSource Tax Adv. Inv. provided any additional support to the affordable housing partnerships. RiverSource Life had no liabilities recorded as of December 31, 2008 and 2007 related to the affordable housing partnerships. RiverSource Tax Adv. Inv. is a limited partner in affordable housing partnerships which qualify for government sponsored low income housing tax credit programs. In most cases, RiverSource Tax Adv. Inv. has less than 50% interest in the partnerships sharing in benefits and risks with other limited partners in proportion to RiverSource Tax Adv. Inv.'s ownership interest. In the limited cases in which RiverSource Tax Adv. Inv. has a greater than 50% interest in affordable housing partnerships, it was determined that the relationship with the general partner is an agent relationship and the general partner was most closely related to the partnership as it is the key decision maker and controls the operations. The carrying values are reflected in trading securities and other investments and were $54 million and $88 million as of December 31, 2008 and 2007, respectively. 6. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS During the third quarter of 2008, RiverSource Life completed the annual detailed review of valuation assumptions. In addition, during the third quarter of 2008, RiverSource Life converted to a new industry standard valuation system that provides enhanced modeling capabilities. The total pretax impacts on RiverSource Life's assets and liabilities attributable to the review of valuation assumptions and the valuation system conversion during the third quarter of 2008 and the review of the valuation assumptions during the third quarter of 2007 and 2006 were as follows:
FUTURE BALANCE SHEET IMPACT REINSURANCE OTHER POLICY OTHER DEBIT (CREDIT) (IN MILLIONS) RECOVERABLES DAC DSIC ASSETS BENEFITS LIABILITIES ------------------------------------------------------------------------------------------------------------------------ 2008 period $92 $(82) $(6) $ 1 $ 96 $ 5 2007 period (2) (16) 3 -- (15) -- 2006 period (1) 38 -- -- (12) -- BALANCE SHEET IMPACT DEBIT (CREDIT) (IN MILLIONS) TOTAL -------------------------------------------------- 2008 period $106 2007 period (30) 2006 period 25
134 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The total pretax impacts on RiverSource Life's revenues and expenses attributable to the review of the valuation assumptions and the valuation system conversion for the year ended December 31, 2008 and the review of the valuation assumptions for the years ended December 31, 2007 and 2006 were as follows:
BENEFITS, OTHER CLAIMS, INSURANCE POLICY AND LOSSES AND AND PRETAX CONTRACT SETTLEMENT AMORTIZATION OPERATING BENEFIT (CHARGE) (IN MILLIONS) PREMIUMS CHARGES EXPENSES OF DAC EXPENSES TOTAL ------------------------------------------------------------------------------------------------------------------------------- 2008 period $ 2 $95 $ 90 $(82) $ 1 $106 2007 period -- (2) (12) (16) -- (30) 2006 period -- (1) (12) 38 -- 25
The balances of and changes in DAC were as follows:
(IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Balance at January 1 $4,429 $4,411 $4,036 Cumulative effect of accounting change 36 (204) -- Capitalization of acquisition costs 592 704 687 Amortization, excluding impacts of valuation assumptions review and valuation system conversion (779) (454) (394) Amortization, impact of valuation assumptions review and valuation system conversion (82) (16) 38 Impact of change in net unrealized securities losses (gains) 228 (12) 44 ------------------------------------------------------------------------------------------------------- Balance at December 31 $4,424 $4,429 $4,411 =======================================================================================================
The balances of and changes in DSIC were as follows:
(IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Balance at January 1 $ 511 $452 $370 Cumulative effect of accounting change 9 (11) -- Capitalization of sales inducements 87 124 126 Amortization, excluding impacts of valuation assumptions review and valuation system conversion (115) (56) (48) Amortization, impact of valuation assumptions review and valuation system conversion (6) 3 -- Impact of change in net unrealized securities losses (gains) 32 (1) 4 ------------------------------------------------------------------------------------------------------- Balance at December 31 $ 518 $511 $452 =======================================================================================================
Effective January 1, 2008, RiverSource Life adopted SFAS 157 and recorded as a cumulative change in accounting principle a pretax increase of $36 million and $9 million to DAC and DSIC, respectively. See Note 3 and Note 11 for additional information regarding SFAS 157. Effective January 1, 2007, RiverSource Life adopted SOP 05-1 and recorded as a cumulative change in accounting principle a pretax reduction of $204 million and $11 million to DAC and DSIC, respectively. 7. REINSURANCE Generally, RiverSource Life reinsures 90% of the death benefit liability related to individual fixed and variable universal life and term life insurance products. As a result, RiverSource Life typically retains and is at risk for, at most, 10% of each policy's death benefit from the first dollar of coverage for new sales of these policies, subject to the reinsurers fulfilling their obligations. RiverSource Life began reinsuring risks at this level beginning in 2001 for term life insurance and 2002 for individual fixed and variable universal life insurance. Policies issued prior to these dates are not subject to these same reinsurance levels. Generally, the maximum amount of life insurance risk retained by RiverSource Life is $1.5 million (increased from $750,000 during 2008) on any policy insuring a single life and $1.5 million on any flexible premium survivorship life policy. Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. For existing LTC policies, RiverSource Life (and RiverSource Life of NY for 1996 and later issues) retained 50% of the risk and ceded the remaining 50% of the risk on a coinsurance basis to a subsidiary of Genworth Financial, Inc. ("Genworth"). Generally, RiverSource Life retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in October 2007 in most states and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. RiverSource Life retains all risk for new claims on DI contracts sold on other policy forms. RiverSource Life also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. In addition, RiverSource Life assumes life insurance and fixed annuity risk under reinsurance arrangements with unaffiliated insurance companies. RIVERSOURCE VARIABLE ACCOUNT 10 135 RiverSource Life Insurance Company -------------------------------------------------------------------------------- At December 31, 2008, 2007 and 2006, traditional life and universal life insurance in force aggregated $192.3 billion, $187.3 billion and $174.1 billion, respectively, of which $127.6 billion, $117.4 billion and $102.4 billion were reinsured at the respective year ends. Life insurance in force is reported on a statutory basis. RiverSource Life also reinsures a portion of the risks assumed under its DI and LTC policies. The effect of reinsurance on premiums was as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Direct premiums $ 631 $ 621 $ 645 Reinsurance assumed 2 2 3 Reinsurance ceded (152) (138) (115) ------------------------------------------------------------------------------------------------------- Net premiums $ 481 $ 485 $ 533 =======================================================================================================
Policy and contract charges are presented on the Consolidated Statements of Income net of $61 million, $57 million and $55 million of reinsurance ceded for the years ended December 31, 2008, 2007 and 2006, respectively. Reinsurance recovered from reinsurers was $142 million, $126 million and $115 million for the years ended December 31, 2008, 2007 and 2006, respectively. Reinsurance contracts do not relieve RiverSource Life from its primary obligation to policyholders. Included in reinsurance recoverables is approximately $1.2 billion and $1.0 billion related to LTC risk ceded to Genworth as of December 31, 2008 and 2007, respectively. Included in future policy benefits is $689 million and $730 million related to assumed reinsurance arrangements as of December 31, 2008 and 2007, respectively. 8. FUTURE POLICY BENEFITS, POLICY CLAIMS AND OTHER POLICYHOLDERS' FUNDS AND SEPARATE ACCOUNT LIABILITIES Future policy benefits and policy claims and other policyholders' funds consisted of the following:
DECEMBER 31, -------------------------- (IN MILLIONS) 2008 2007 ------------------------------------------------------------------------------------------------- Fixed annuities $14,058 $14,382 Equity indexed annuities accumulated host values 228 253 Equity indexed annuities embedded derivatives 16 53 Variable annuities fixed sub-accounts 5,623 5,419 Variable annuity GMWB 1,471 136 Variable annuity GMAB 367 33 Other variable annuity guarantees 67 27 ------------------------------------------------------------------------------------------------- Total annuities 21,830 20,303 Variable universal life ("VUL")/universal life ("UL") insurance 2,526 2,568 Other life, DI and LTC insurance 4,397 4,106 ------------------------------------------------------------------------------------------------- Total future policy benefits 28,753 26,977 Policy claims and other policyholders' funds 172 91 ------------------------------------------------------------------------------------------------- Total future policy benefits and policy claims and other policyholders' funds $28,925 $27,068 =================================================================================================
Separate account liabilities consisted of the following:
DECEMBER 31, -------------------------- (IN MILLIONS) 2008 2007 ------------------------------------------------------------------------------------------------- Variable annuity variable sub-accounts $37,657 $51,764 VUL insurance variable sub-accounts 4,091 6,244 Other insurance variable sub-accounts 39 62 ------------------------------------------------------------------------------------------------- Total separate account liabilities $41,787 $58,070 =================================================================================================
Fixed Annuities Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. RiverSource Life generally invests the proceeds from the annuity payments in fixed rate securities. The interest rate risks under these obligations were partially hedged with derivative instruments designated as a cash flow hedge of the interest credited on forecasted sales. As of January 1, 2007 the hedge designation was removed. See Note 15 for additional information regarding RiverSource Life's derivative instruments. 136 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Equity Indexed Annuities The Index 500 Annuity, RiverSource Life's equity indexed annuity product, is a single premium deferred fixed annuity. The contract is issued with an initial term of seven years and interest earnings are linked to the S&P 500 Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. RiverSource Life generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. See Note 15 for additional information regarding RiverSource Life's derivative instruments. Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts issued by RiverSource Life contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. RiverSource Life previously offered contracts with GMIB provisions. See Note 2 and Note 9 for additional information regarding RiverSource Life's variable annuity guarantees. RiverSource Life does not currently hedge its risk under the GMDB, GGU and GMIB provisions. The total value of variable annuity contracts with GMWB riders decreased from $13.1 billion at December 31, 2007 to $12.7 billion at December 31, 2008. The total value of variable annuity contracts with GMAB riders decreased from $2.3 billion at December 31, 2007 to $2.0 billion at December 31, 2008. See Note 15 for additional information regarding derivative instruments used to hedge GMWB and GMAB risk. Insurance Liabilities VUL/UL is the largest group of insurance policies written by RiverSource Life. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for VUL contracts are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. RiverSource Life also offers term and whole life insurance as well as disability products. RiverSource Life no longer offers LTC products but has in-force policies from prior years. Insurance liabilities include accumulation values, unpaid reported claims, incurred but not reported claims, and obligations for anticipated future claims. 9. VARIABLE ANNUITY AND INSURANCE GUARANTEES The majority of the variable annuity contracts offered by RiverSource Life contain GMDB provisions. RiverSource Life also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as GGU benefits. In addition, RiverSource Life offers contracts with GMWB and GMAB provisions. RiverSource Life previously offered contracts containing GMIB provisions. See Note 2 and Note 8 for additional information regarding the liabilities related to variable annuity guarantees. The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. RiverSource Life has three primary GMDB provisions: - RETURN OF PREMIUM -- provides purchase payments minus adjusted partial surrenders. - RESET -- provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision is often provided in combination with the return of premium provision. This provision is no longer offered. - RATCHET -- provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on equity market performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a "step-up") in the case of favorable market performance. The GMWB offered initially guarantees that the contractholder can withdraw 7% per year until the amount withdrawn is equal to the guaranteed amount, regardless of the performance of the underlying funds. In 2006, RiverSource Life began offering an enhanced withdrawal benefit that gives contractholders a choice to withdraw 6% per year for the life of the contractholder ("GMWB for life") or 7% per year until the amount withdrawn is equal to the guaranteed amount. In 2007, RiverSource Life added a new GMWB benefit design that is available in a joint version that promises 6% withdrawals while either contractholder remains alive. In addition, once withdrawals begin, the contractholder's funds are moved to one of the three less aggressive asset allocation models (of the five that are available prior to withdrawal). RIVERSOURCE VARIABLE ACCOUNT 10 137 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or 80% of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. Certain universal life contracts offered by RiverSource Life provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides summary information related to all variable annuity guarantees for which RiverSource Life has established additional liabilities:
DECEMBER 31, 2008 DECEMBER 31, 2007 --------------------------------------------------------------------------------------- CONTRACT CONTRACT VARIABLE ANNUITY GUARANTEES BY TOTAL VALUE IN WEIGHTED TOTAL VALUE IN BENEFIT TYPE(1) CONTRACT SEPARATE NET AMOUNT AVERAGE CONTRACT SEPARATE (IN MILLIONS, EXCEPT AGE) VALUE ACCOUNTS AT RISK(2) ATTAINED AGE VALUE ACCOUNTS --------------------------------------------------------------------------------------------------------------------------- GMDB: Return of Premium $22,249 $20,153 $ 4,873 61 $25,804 $23,892 Six-Year Reset 12,719 10,063 2,802 61 20,231 17,617 One-Year Ratchet 5,770 5,061 2,163 62 7,908 7,143 Five-Year Ratchet 951 888 199 59 1,211 1,163 Other 471 429 192 66 693 639 --------------------------------------------------------------------------------------------------------------------------- Total -- GMDB $42,160 $36,594 $10,229 61 $55,847 $50,454 =========================================================================================================================== GGU DEATH BENEFIT $ 699 $ 619 $ 65 63 $ 950 $ 873 =========================================================================================================================== GMIB $ 567 $ 511 $ 245 63 $ 927 $ 859 =========================================================================================================================== GMWB: GMWB $ 3,513 $ 3,409 $ 1,312 63 $ 5,104 $ 4,980 GMWB for life 9,194 8,764 2,704 63 7,958 7,685 --------------------------------------------------------------------------------------------------------------------------- Total -- GMWB $12,707 $12,173 $ 4,016 63 $13,062 $12,665 =========================================================================================================================== GMAB $ 2,006 $ 1,937 $ 608 56 $ 2,260 $ 2,205 =========================================================================================================================== DECEMBER 31, 2007 --------------------------- WEIGHTED VARIABLE ANNUITY GUARANTEES BY NET AVERAGE BENEFIT TYPE(1) AMOUNT ATTAINED (IN MILLIONS, EXCEPT AGE) AT RISK(2) AGE --------------------------------------------------------------- GMDB: Return of Premium $ 26 60 Six-Year Reset 167 60 One-Year Ratchet 81 61 Five-Year Ratchet 1 58 Other 12 65 --------------------------------------------------------------- Total -- GMDB $287 60 =============================================================== GGU DEATH BENEFIT $ 80 62 =============================================================== GMIB $ 18 62 =============================================================== GMWB: GMWB $ 22 62 GMWB for life 33 62 --------------------------------------------------------------- Total -- GMWB $ 55 62 =============================================================== GMAB $ 3 55 ===============================================================
(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit always equals account value are not shown in this table. (2) Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in the contract. As a result of the recent market decline, the amount by which guarantees exceed the accumulation value has increased significantly. Changes in additional liabilities (assets) were as follows:
(IN MILLIONS) GMDB & GGU GMIB GMWB GMAB UL -------------------------------------------------------------------------------------------------------------------- Liability (asset) balance at January 1, 2007 $ 26 $ 5 $ (12) $ (5) $ 1 Incurred claims 1 -- 148 38 4 Paid claims (3) (2) -- -- (1) -------------------------------------------------------------------------------------------------------------------- Liability balance at December 31, 2007 24 3 136 33 4 Incurred claims 58 10 1,335 334 6 Paid claims (27) (1) -- -- (3) -------------------------------------------------------------------------------------------------------------------- Liability balance at December 31, 2008 $ 55 $12 $1,471 $367 $ 7 ====================================================================================================================
The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
DECEMBER 31, -------------------------- (IN MILLIONS) 2008 2007 ------------------------------------------------------------------------------------------------- Mutual funds: Equity $21,899 $34,540 Bond 12,135 12,549 Other 3,463 4,478 ------------------------------------------------------------------------------------------------- Total mutual funds $37,497 $51,567 =================================================================================================
No gains or losses were recognized on assets transferred to separate accounts for the periods presented. 138 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 10. LINES OF CREDIT In September 2008, RiverSource Life, as the lender, entered into a revolving credit agreement with Ameriprise Financial as the borrower. This line of credit is not to exceed 3% of RiverSource Life's statutory admitted assets as of the prior year end. The interest rate for any borrowing is established by reference to LIBOR plus 28 basis points. In the event of default, an additional 1% interest will accrue during such period of default. There were no amounts outstanding on this revolving credit agreement as of December 31, 2008. RiverSource Life had a collateral loan agreement with Ameriprise Financial aggregating up to $75 million which expired on October 31, 2008. RiverSource Life has available a committed line of credit with Ameriprise Financial aggregating $200 million. The interest rate for any borrowings is established by reference to LIBOR plus 28 basis points. There were no amounts outstanding on this line of credit at December 31, 2008 and 2007. 11. FAIR VALUES OF ASSETS AND LIABILITIES Effective January 1, 2008, RiverSource Life adopted SFAS 157, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. VALUATION HIERARCHY Under SFAS 157, RiverSource Life categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by RiverSource Life's valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. DETERMINATION OF FAIR VALUE RiverSource Life uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. RiverSource Life's market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. RiverSource Life's income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, RiverSource Life maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. ASSETS CASH EQUIVALENTS Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value ("NAV") and classified as Level 1. RiverSource Life's remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. AVAILABLE-FOR-SALE SECURITIES When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from nationally-recognized pricing services, broker quotes, or other model-based valuation techniques such as the present value of cash flows. Level 1 securities include U.S. Treasuries. Level 2 securities include corporate and municipal bonds, agency mortgage backed securities, commercial mortgage backed securities, asset backed securities and U.S. and foreign government and agency securities. Level 3 securities include corporate bonds, non-agency residential mortgage backed securities and asset backed securities. RIVERSOURCE VARIABLE ACCOUNT 10 139 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Through RiverSource Life's own experience transacting in the marketplace and through discussions with its pricing vendors, RiverSource Life believes that the market for non-agency residential mortgage backed securities is inactive. Indicators of inactive markets include: pricing services' reliance on brokers or discounted cash flow analyses to provide prices, an increase in the disparity between prices provided by different pricing services for the same security, unreasonably large bid-offer spreads and a significant decrease in the volume of trades relative to historical levels. In certain cases, this market inactivity has resulted in RiverSource Life applying valuation techniques that rely more on an income approach (discounted cash flows using market rates) than on a market approach (prices from pricing services). RiverSource Life considers market observable yields for other asset classes it considers to be of similar risk which includes nonperformance and liquidity for individual securities to set the discount rate for applying the income approach to certain non-agency residential mortgage backed securities. At the beginning of the fourth quarter of 2008, $219 million of prime non-agency residential mortgage backed securities were transferred from Level 2 to Level 3 of the fair value hierarchy because management believes the market for these prime quality assets is now inactive. The loss recognized on these assets during the fourth quarter of 2008 was $47 million of which $13 million was included in net investment income and $34 million was included in other comprehensive loss. SEPARATE ACCOUNT ASSETS The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. DERIVATIVES The fair value of derivatives that are traded in certain over-the-counter markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include interest rate swaps and options. Derivatives that are valued using pricing models that have significant unobservable inputs are classified as Level 3 measurements. Structured derivatives that are used by RiverSource Life to hedge its exposure to market risk related to certain variable annuity riders are classified as Level 3. LIABILITIES EMBEDDED DERIVATIVES VARIABLE ANNUITY RIDERS -- GUARANTEED MINIMUM ACCUMULATION BENEFIT AND GUARANTEED MINIMUM WITHDRAWAL BENEFIT RiverSource Life values the embedded derivative liability attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk, and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to policyholder behavior assumptions and margins for risk, profit and expenses that RiverSource Life believes an exit market participant would expect. The fair value of these embedded derivatives also reflects a current estimate of RiverSource Life's nonperformance risk specific to these liabilities. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivative liability attributable to these provisions is recorded in future policy benefits. EQUITY INDEXED ANNUITIES RiverSource Life uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its equity indexed annuities. The inputs to these calculations are primarily market observable. As a result, these measurements are classified as Level 2. The embedded derivative liability attributable to the provisions of RiverSource Life's equity indexed annuities is recorded in future policy benefits. 140 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:
DECEMBER 31, 2008 ------------------------------------------------------ (IN MILLIONS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------------------------- Assets Available-for-Sale: Fixed maturities $ 21 $16,336 $1,713 $18,070 Common and preferred stocks -- 16 -- 16 Trading securities 70 77 -- 147 Cash equivalents 432 2,861 -- 3,293 Other assets -- 2,238 200 2,438 Separate account assets -- 41,787 -- 41,787 ------------------------------------------------------------------------------------------------------------- Total assets at fair value $523 $63,315 $1,913 $65,751 ============================================================================================================= Liabilities Future policy benefits $ -- $ 16 $1,832 $ 1,848 Other liabilities -- 645 -- 645 ------------------------------------------------------------------------------------------------------------- Total liabilities at fair value $ -- $ 661 $1,832 $ 2,493 =============================================================================================================
The following table provides a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the year ended December 31, 2008:
AVAILABLE- FOR-SALE SECURITIES: FUTURE FIXED OTHER POLICY OTHER (IN MILLIONS) MATURITIES ASSETS BENEFITS LIABILITIES ------------------------------------------------------------------------------------------------------------- Balance, January 1 $1,810 $ 280 $ (158) $-- Total gains (losses) included in: Net income (loss) (169)(1) 149(2) (1,611)(2) (9)(2) Other comprehensive loss (304) -- -- -- Purchases, sales, issuances and settlements, net 157 (229) (63) 9 Transfers into Level 3 219(3) -- -- -- ------------------------------------------------------------------------------------------------------------- Balance, December 31 $1,713 $ 200 $(1,832) $-- ============================================================================================================= Change in unrealized gains (losses) included in net income relating to assets and liabilities held at December 31 $ (172)(4) $ 126(2) $(1,608)(2) $-- =============================================================================================================
(1) Represents a $176 million loss included in net realized investment gains (losses) and a $7 million gain included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. (3) Represents prime non-agency residential mortgage backed securities previously classified as Level 2 for which management believes the market for these prime quality assets is now inactive. (4) Represents a $175 million loss included in net realized investment gains (losses) and a $3 million gain included in net investment income in the Consolidated Statements of Income. During the reporting period, there were no material assets or liabilities measured at fair value on a nonrecurring basis. The following table provides the carrying value and the estimated fair value of financial instruments that are not reported at fair value as of December 31, 2008 and 2007. All other financial instruments that are reported at fair value have been included above in the table with balances of assets and liabilities measured at fair value on a recurring basis.
DECEMBER 31, ------------------------------------------------------ 2008 2007 ------------------------------------------------------------------------------------------------------------- CARRYING FAIR CARRYING FAIR (IN MILLIONS) VALUE VALUE VALUE VALUE ------------------------------------------------------------------------------------------------------------- FINANCIAL ASSETS Commercial mortgage loans, net $ 2,737 $ 2,506 $ 2,892 $ 2,868 Policy loans 722 779 697 697 Other investments 248 202 58 59 FINANCIAL LIABILITIES Future policy benefits 13,116 12,418 18,622 18,077 Separate account liabilities 386 386 748 748
RIVERSOURCE VARIABLE ACCOUNT 10 141 RiverSource Life Insurance Company -------------------------------------------------------------------------------- COMMERCIAL MORTGAGE LOANS, NET The fair value of commercial mortgage loans, except those with significant credit deterioration is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities and characteristics including loan-to-value ratio, occupancy rate, refinance risk, debt-service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for RiverSource Life's estimate of the amount recoverable on the loan. POLICY LOANS The fair value of policy loans has been determined using discounted cash flows. FUTURE POLICY BENEFITS The fair value of fixed annuities, in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a provision for adverse deviation from estimated early policy surrender behavior and RiverSource Life's non-performance risk specific to these liabilities. The fair value of fixed annuities, in payout status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for expense margin and RiverSource Life's non-performance risk specific to these liabilities. Variable annuity fixed sub-accounts classified as investment contracts and equity indexed annuities fair value is determined by discounting cash flows adjusted for policyholder behavior and RiverSource Life's non-performance risk specific to these liabilities. SEPARATE ACCOUNT LIABILITIES Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. Carrying value is a reasonable estimate of the fair value as it represents the exit value as evidenced by withdrawal transactions between contractholders and RiverSource Life. A non-performance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize non- performance risk. 12. RELATED PARTY TRANSACTIONS RiverSource Investments, LLC is the investment manager for the proprietary mutual funds used as investment options by RiverSource Life's variable annuity contractholders and variable life insurance policyholders. RiverSource Life provides all fund management services, other than investment management, and is compensated for the administrative services it provides. For the years ended December 31, 2008, 2007 and 2006, RiverSource Life received $101 million, $97 million and $76 million, respectively, from RiverSource Investments, LLC for administrative services provided by RiverSource Life. RiverSource Life participates in the Ameriprise Financial Retirement Plan which covers all permanent employees age 21 and over who have met certain employment requirements. RiverSource Life contributions to the plan are based on participants' age, years of service and total compensation for the year. Funding of retirement costs for this plan complies with the applicable minimum funding requirements specified by the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). RiverSource Life's share of the total net periodic pension cost was approximately $1 million for each of the years ended December 31, 2008, 2007 and 2006. RiverSource Life participates in the Ameriprise Financial 2005 Incentive Compensation Plan. Employees, directors and independent contractors are eligible to receive incentive awards including stock options, restricted stock awards, restricted stock units, performance shares and similar awards designed to comply with the applicable federal regulations and laws of jurisdiction. The expense for incentive awards was $3 million in 2008, $3 million in 2007 and $2 million in 2006. RiverSource Life also participates in the defined contribution pension plans of Ameriprise Financial which cover all employees who have met certain employment requirements. RiverSource Life contributions to the plans are a percent of either each employee's eligible compensation or basic contributions. Costs of these plans charged to operations were nil in 2008 and $3 million in both 2007 and 2006. RiverSource Life participates in the defined benefit health care plans of Ameriprise Financial that provide health care and life insurance benefits to retired employees and retired financial advisors. The plans include participant contributions and service related eligibility requirements. Upon retirement, such employees are considered to have been employees of Ameriprise Financial. Ameriprise Financial expenses these benefits and allocates the expenses to its subsidiaries. The cost of these plans charged to operations in 2008, 2007 and 2006 were $1 million, $2 million and $1 million, respectively. Charges by Ameriprise Financial and affiliated companies to RiverSource Life for use of joint facilities, technology support, marketing services and other services aggregated $673 million, $909 million and $755 million for 2008, 2007 and 2006, respectively. Certain of these costs are included in DAC. Expenses allocated to RiverSource Life may not be reflective of expenses that would have been incurred by RiverSource Life on a stand-alone basis. 142 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Dividends paid and received were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Cash dividends paid to Ameriprise Financial $775 $900 $300 Cash dividends paid to RiverSource Life Insurance Company from RiverSource Life of NY 77 83 25 Non-cash dividend paid to Ameriprise Financial from RiverSource Tax Adv. Inv. 118 -- --
Notifications to state insurance regulators were made in advance of payments of dividends for amounts in excess of statutorily defined thresholds. See Note 13 for additional information. During 2008, RiverSource Life received a non-cash capital contribution of $83 million comprised of below investment grade syndicated bank loans from Ameriprise Financial. In addition, RiverSource Life Insurance Company received a $239 million contribution from Ameriprise Financial, consisting of all the issued and outstanding shares of RiverSource Tax Adv. Inv. There were no amounts included in other liabilities at December 31, 2008 and 2007 payable to Ameriprise Financial for federal income taxes. 13. STATUTORY CAPITAL AND SURPLUS State insurance statutes contain limitations as to the amount of dividends or distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, dividends or distributions in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life Insurance Company's primary regulator, and are subject to potential disapproval. RiverSource Life Insurance Company's statutory unassigned surplus aggregated $173 million and $788 million as of December 31, 2008 and 2007, respectively. In addition, dividends or distributions, whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed the greater of the previous year's statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as "extraordinary dividends." Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory net gain from operations and net income for the years ended December 31 and capital and surplus as of December 31 are summarized as follows:
(IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- (unaudited) Statutory net gain (loss) from operations(1) $(1,184) $ 523 $ 469 Statutory net income (loss)(1) (1,407) 555 514 Statutory capital and surplus 2,529 2,820 3,258
(1) An increase in statutory reserves for variable annuity guaranteed benefits contributed significantly to the loss in 2008, but was substantially offset by unrealized gains on derivatives which are not included in the statutory income statement, but recorded directly to surplus. 14. INCOME TAXES RiverSource Life qualifies as a life insurance company for federal income tax purposes. As such, RiverSource Life is subject to the Internal Revenue Code provisions applicable to life insurance companies. The components of income tax provision (benefit) were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Current income tax: Federal $ 42 $(30) $ 8 State 3 -- -- ------------------------------------------------------------------------------------------------------- Total current income tax 45 (30) 8 Deferred income tax Federal (236) 83 124 State 2 -- (3) ------------------------------------------------------------------------------------------------------- Total deferred income tax (234) 83 121 ------------------------------------------------------------------------------------------------------- Income tax provision (benefit) $(189) $ 53 $129 =======================================================================================================
RIVERSOURCE VARIABLE ACCOUNT 10 143 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 35% are as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Tax at U.S. statutory rate 35.0% 35.0% 35.0% Changes in taxes resulting from: Tax-exempt interest and dividend income 56.6 (10.9) (6.8) State taxes, net of federal benefit (3.7) -- (0.4) Low income housing credit 27.9 (7.0) (6.9) Foreign tax credit, net of addback 15.3 (2.3) (0.7) Taxes applicable to prior years 29.2 (4.0) -- Other, net (0.2) -- 0.1 ------------------------------------------------------------------------------------------------------- Income tax provision 160.1% 10.8% 20.3% =======================================================================================================
RiverSource Life's effective tax rate was 160.1% and 10.8% for the years ended December 31, 2008 and 2007, respectively. The increase in the effective tax rate is primarily due to a pretax loss in relation to a net tax benefit for 2008 compared to pretax income for 2007. RiverSource Life's effective tax rate for 2008 included a $39 million tax benefit related to changes in the status of current audits. RiverSource Life's effective tax rate for 2007 included a $7 million tax benefit related to the finalization of the prior year tax return. Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for U.S. GAAP reporting versus income tax return purposes. The significant components of RiverSource Life's deferred income tax assets and liabilities are reflected in the following table:
DECEMBER 31, -------------------------- (IN MILLIONS) 2008 2007 ------------------------------------------------------------------------------------------------- Deferred income tax assets: Liabilities for future policy benefits $1,744 $1,144 Investment related -- 61 Net unrealized losses on Available-for Sale securities and derivatives 399 87 Net operating loss and tax credit carryforwards 159 125 Other 44 38 ------------------------------------------------------------------------------------------------- Gross deferred income tax assets 2,346 1,455 Deferred income tax liabilities: DAC 1,168 1,253 Investment related 398 -- DSIC 181 179 Other -- 14 ------------------------------------------------------------------------------------------------- Gross deferred income tax liabilities 1,747 1,446 ------------------------------------------------------------------------------------------------- Net deferred income tax assets $ 599 $ 9 =================================================================================================
RiverSource Life is required to establish a valuation allowance for any portion of the deferred income tax assets that management believes will not be realized. Included in RiverSource Life's deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination, a) future taxable income exclusive of reversing temporary differences and carryforwards, b) future reversals of existing taxable temporary differences, c) taxable income in prior carryback years, and d) tax planning strategies. Additionally, RiverSource Life has net operating loss carryforwards of $15 million which expire on December 31, 2025 and 2026 as well as tax credit carryforwards of $124 million which expire December 31, 2025, 2026, 2027 and 2028. RiverSource Life also has $20 million of foreign tax credit carryforwards which expire on December 31, 2016 and 2017. Based on analysis of RiverSource Life's tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will generate sufficient taxable income to enable RiverSource Life to utilize all of its deferred tax assets. Accordingly, no valuation allowance for deferred tax assets has been established as of December 31, 2008 and 2007. 144 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Effective January 1, 2007, RiverSource Life adopted the provisions of FIN 48. The amount RiverSource Life recognized as a result of the implementation of FIN 48 was not material. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
(IN MILLIONS) 2008 ------------------------------------------------------------------------------------------- Balance at December 31, 2007 $ 97 Additions based on tax positions related to the current year (165) Additions for tax positions of prior years 38 Reductions for tax positions of prior years (59) ------------------------------------------------------------------------------------------- Balance at December 31, 2008 $ (89) ===========================================================================================
If recognized, approximately $30 million and $49 million, net of federal tax benefits, of the unrecognized tax benefits as of December 31, 2008 and 2007, respectively, would affect the effective tax rate. RiverSource Life recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. RiverSource Life recognized a net reduction of $14 million in interest and penalties for the year ended December 31, 2008. RiverSource Life had a $15 million and a $1 million receivable for the payment of interest and penalties accrued at December 31, 2008 and 2007, respectively. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. However, there are a number of open audits and quantification of a range cannot be made at this time. RiverSource Life or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, RiverSource Life is no longer subject to U.S. federal or state and local income tax examinations by tax authorities for years before 1997. The Internal Revenue Service ("IRS"), as part of the overall examination of the American Express Company consolidated return completed its field examination of the RiverSource Life's income tax returns for 1997 through 2002 during 2008. However, for federal income tax purposes, these years continue to remain open as a consequence of certain issues under appeal. The IRS continued its examination of 2003 through 2004 which is expected to be completed during 2009. In the fourth quarter of 2008, the IRS commenced an examination of RiverSource Life's U.S. income tax returns for 2005 through 2007. RiverSource Life or certain of its subsidiaries' state income tax returns are currently under examination by various jurisdictions for years ranging from 1998 through 2006. On September 25, 2007, the IRS issued Revenue Ruling 2007-61 in which it announced that it intends to issue regulations with respect to certain computational aspects of the Dividends Received Deduction ("DRD") related to separate account assets held in connection with variable contracts of life insurance companies. Revenue Ruling 2007-61 suspended a revenue ruling issued in August 2007 that purported to change accepted industry and IRS interpretations of the statutes governing these computational questions. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other members of the public will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time, but they may result in the elimination of some or all of the separate account DRD tax benefit that RiverSource Life receives. Management believes that it is likely that any such regulations would apply prospectively only. As a result of the separation of Ameriprise Financial from American Express, RiverSource Life and subsidiaries will not be able to file a consolidated U.S. federal income tax return with other members of Ameriprise Financial's affiliated group until 2010. The items comprising other comprehensive loss are presented net of the following income tax provision (benefit) amounts:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Net unrealized securities gains (losses) $(302) $28 $(41) Net unrealized derivative gains (losses) 2 -- (1) ------------------------------------------------------------------------------------------------------- Net income tax provision (benefit) $(300) $28 $(42) =======================================================================================================
RIVERSOURCE VARIABLE ACCOUNT 10 145 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 15. DERIVATIVES AND HEDGING ACTIVITIES Derivative instruments enable RiverSource Life to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. RiverSource Life does not engage in any derivative instrument trading activities. The following table presents a summary of the notional amount and the current fair value of derivative instruments held at:
DECEMBER 31, ---------------------------------------------------------------------------------- 2008 2007 -------------------------------------------------------------------------------------------------------------------------- NOTIONAL FAIR VALUE NOTIONAL FAIR VALUE (IN MILLIONS) AMOUNT ASSET LIABILITY AMOUNT ASSET LIABILITY -------------------------------------------------------------------------------------------------------------------------- Interest rate swaps $11,445 $ 853 $(250) $ 202 $ 6 $ (3) Swaptions 3,200 26 -- 800 1 -- Purchased equity options 16,572 1,512 (79) 6,485 416 (36) Written equity options 2,766 22 (255) 57 -- (1) Total return swaps 1,706 24 (60) -- -- -- Equity futures purchased(1) 1 -- -- 70 -- -- Equity futures sold(1) 599 -- -- 202 -- -- -------------------------------------------------------------------------------------------------------------------------- Total(2) $36,289 $2,437 $(644) $7,816 $423 $(40) ==========================================================================================================================
(1) Equity futures have no recorded value as they are cash settled daily. (2) The above table does not include certain embedded derivatives. The following table presents a summary of the notional amount and fair value of derivative instruments based on the risk they hedge:
DECEMBER 31, ---------------------------------------------------------------------------------- 2008 2007 -------------------------------------------------------------------------------------------------------------------------- NOTIONAL FAIR VALUE NOTIONAL FAIR VALUE (IN MILLIONS) AMOUNT ASSET LIABILITY AMOUNT ASSET LIABILITY -------------------------------------------------------------------------------------------------------------------------- Equity indexed annuities $ 213 $ 3 $ -- $ 295 $ 43 $ (1) GMWB and GMAB 36,076 2,434 (644) 6,721 379 (39) Other -- -- -- 800 1 -- -------------------------------------------------------------------------------------------------------------------------- Total $36,289 $2,437 $(644) $7,816 $423 $(40) ==========================================================================================================================
See Note 11 for additional information regarding RiverSource Life's fair value measurement of derivative instruments. Cash Flow Hedges RiverSource Life uses interest rate derivative products, primarily swaps and swaptions, to manage funding costs related to RiverSource Life's fixed annuity business. As of January 1, 2007, RiverSource Life removed the hedge designation from its swaptions used to hedge the risk of increasing interest rates on forecasted fixed premium product sales. The designation was removed due to the hedge relationship no longer being highly effective. Accordingly, all changes in fair value of the swaptions were recorded directly to earnings. As of December 31, 2008, all of these swaptions had expired. Amounts previously recorded in accumulated other comprehensive income (loss) are reclassified into earnings as the originally forecasted transactions occur. The following is a summary of net unrealized derivatives gains (losses) related to cash flow hedging activity, net of tax:
(IN MILLIONS) 2008 2007 2006 ------------------------------------------------------------------------------------------------------- Net unrealized derivatives losses at January 1 $(40) $(41) $(40) Holding losses, net of tax of nil, $1 and $2, respectively (1) -- (4) Reclassification of realized gains, net of tax of $2, $1 and $1, respectively 3 1 3 ------------------------------------------------------------------------------------------------------- Net unrealized derivatives losses at December 31 $(38) $(40) $(41) =======================================================================================================
At December 31, 2008, RiverSource Life expects to reclassify $6 million of net pretax gains on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next 12 months related to interest rate swaptions that will be recorded in net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) may be recognized into earnings over the period that the hedged item impacts earnings. As discussed above, RiverSource Life removed the hedge designation from its swaptions in 2007 and during 2008 and 2006 there were no other hedges that were terminated or the hedge designation removed. For any hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately. No hedge 146 RIVERSOURCE VARIABLE ACCOUNT 10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- relationships were discontinued during the years ended December 31, 2008, 2007 and 2006 due to forecasted transactions no longer expected to occur according to the original hedge strategy. Currently, the longest period of time over which RiverSource Life is hedging exposure to the variability in future cash flows is 10 years and relates to interest credited on forecasted fixed premium product sales. For the years ended December 31, 2008, 2007 and 2006, there were nil, $2 million and $4 million, respectively, in losses on derivative transactions or portions thereof that were ineffective as hedges, excluded from the assessment of hedge effectiveness or reclassified into earnings as a result of the discontinuance of cash flow hedges. Derivatives Not Designated as Hedges RiverSource Life holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of interest rate risk related to various RiverSource Life products. Certain annuity products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the amount of expenses incurred by RiverSource Life related to equity indexed annuities products will positively or negatively impact earnings. As a means of economically hedging its obligations under the provisions of these products, RiverSource Life writes and purchases index options and occasionally enters into futures contracts. Additionally, certain annuity products contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of considerations received at the beginning of the contract period, after a specified holding period, respectively. RiverSource Life economically hedges the exposure related to GMWB and GMAB provisions using various equity futures, equity options, swaptions and interest rate swaps. The premium associated with certain of these options is paid semi-annually over the life of the option contract. As of December 31, 2008, the remaining payments RiverSource Life is scheduled to make for these options, net of amounts receivable on written deferred premium options, were $805 million through July 31, 2023. Embedded Derivatives The equity component of the equity indexed annuity product obligations is considered an embedded derivative. Additionally, certain annuities contain GMAB and non-life contingent GMWB provisions which are also considered embedded derivatives. The fair value of embedded derivatives for annuity related products is included in future policy benefits. The change in fair value of the equity indexed annuity embedded derivatives is reflected in interest credited to fixed accounts. The changes in fair values of the GMWB and GMAB embedded derivatives are reflected in benefits, claims, losses and settlement expenses. At December 31, 2008 and 2007, the total fair value of these embedded derivatives, excluding the host contract and a liability for life contingent GMWB benefits of $5 million and $2 million, respectively, was a net liability of $1.8 billion and $220 million, respectively. Credit Risk Credit risk associated with RiverSource Life's derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the contract. To mitigate such risk, counterparties are all required to be preapproved. Additionally, RiverSource Life may, from time to time, enter into master netting arrangements and collateral arrangements wherever practical. At December 31, 2008 and 2007, RiverSource Life accepted collateral consisting primarily of cash and securities of $1.8 billion and $243 million, respectively, from counterparties. In addition, as of December 31, 2008, RiverSource Life provided collateral consisting primarily of cash and securities of $432 million and $14 million, respectively, to counterparties. As of December 31, 2008, RiverSource Life's maximum credit exposure to derivative transactions after considering netting arrangements with counterparties and collateral arrangements was approximately $83 million. 16. COMMITMENTS AND CONTINGENCIES At December 31, 2008 and 2007, RiverSource Life had no material commitments to purchase investments other than mortgage loan fundings. See Note 4 for additional information. RiverSource Life's annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2008, these guarantees range up to 5.0%. To the extent the yield on RiverSource Life's invested assets portfolio declines below its target spread plus the minimum guarantee, RiverSource Life's profitability would be negatively affected. The Securities and Exchange Commission, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities have brought proceedings challenging several mutual fund and variable product financial practices, generally including suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements. RiverSource Life has received requests for information and has been contacted by regulatory authorities concerning its practices and is cooperating fully with these inquiries. RIVERSOURCE VARIABLE ACCOUNT 10 147 RiverSource Life Insurance Company -------------------------------------------------------------------------------- RiverSource Life is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. 148 RIVERSOURCE VARIABLE ACCOUNT 10 S-6325 G (5/09) PART C. Item 24. Financial Statements and Exhibits (a) Financial statements included in Part B of this Registration Statement: The audited financial statements of the RiverSource Variable Account 10 including: Report of Independent Registered Public Accounting Firm dated April 24, 2009. Statements of Assets and Liabilities for the year ended Dec. 31, 2008. Statements of Operations for the year ended Dec. 31, 2008. Statements of Changes and Net Assets for the years ended Dec. 31, 2008 and 2007. Notes to Financial Statements. The audited financial statements of the RiverSource Life Insurance Company including: Report of Independent Registered Public Accounting Firm dated March 2, 2009. Consolidated Balance Sheets as of Dec. 31, 2008 and 2007. Consolidated Statements of Income for the years ended Dec. 31, 2008, 2007 and 2006. Consolidated Statements of Cash Flows for the years ended Dec. 31, 2008, 2007 and 2006. Consolidated Statements of Stockholder's Equity for the three years ended Dec. 31, 2008, 2007 and 2006. Notes to Consolidated Financial Statements. (b) Exhibits: 1.1 Resolution of the Board of Directors of IDS Life Insurance Company establishing the IDS Life Variable Account 10 dated August 23, 1995, filed electronically as Exhibit 1 to Registrant's Initial Registration Statement No. 33-62407 is incorporated herein by reference. 1.2 Resolution of the Board of Directors of IDS Life Insurance Company establishing 105 additional subaccounts within the separate account, filed electronically as Exhibit 1.2 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999, is incorporated herein by reference. 1.3 Resolution of the Board of Directors of IDS life Insurance Company establishing 25 additional subaccounts within the separate account, filed electronically as Exhibit 1.3 to Registrant's Post-Effective Amendment No. 2 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.4 Resolution of the Board of Directors of IDS Life Insurance Company establishing 12 additional subaccounts within the separate account, filed electronically as Exhibit 1.3 to Registrant's Post-Effective Amendment No. 3 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.5 Resolution of the Board of Directors of IDS Life Insurance Company establishing 69 additional subaccounts within the separate account, filed electronically as Exhibit 1.5 to Registrant's Post-Effective Amendment No. 6 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.6 Resolution of the Board of Directors of IDS Life Insurance Company establishing 112 additional subaccounts within the separate account, dated Feb. 11, 2002, filed electronically as Exhibit 1.6 to Registrant's Post-Effective Amendment No. 8 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.7 Resolution of the Board of Directors of IDS Life Insurance Company establishing 3 additional subaccounts within the separate account, dated Feb. 28, 2002, filed electronically as Exhibit 1.7 to Registrant's Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.8 Resolution of the Board of Directors of IDS Life Insurance Company establishing 8 additional subaccounts within the separate account, dated January 6, 2004, filed electronically as Exhibit 1.8 to Registrant's Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 1.9 Resolution of the Board of Directors of IDS Life Insurance Company establishing 6 additional subaccounts within the separate account, dated August 12, 2004 filed electronically as Exhibit 1.9 to Post-Effective Amendment No. 32 to Registration Statement No. 333-79311 is incorporated by reference. 1.10 Resolution of the Board of Directors of IDS Life Insurance Company establishing an additional subaccount within the separate account, dated April 27, 2005 filed electronically as Exhibit 1.10 to Post-Effective Amendment No. 32 to Registration Statement No. 333-79311 is incorporated by reference. 1.11 Resolution of the Board of Directors establishing 18 additional subaccounts within the separate accounts dated April 12, 2006 filed electronically as Exhibit 1.11 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 1.12 Unanimous Written Consent of the Board of Directors In Lieu of a Meeting for IDS Life Insurance Company, adopted December 8, 2006 for the Re-designation of the Separate Accounts to Reflect Entity Consolidation and Rebranding filed electronically as Exhibit 27(a)(6) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated by reference. 2. Not applicable. 3. Form of Principal Underwriter Agreement for RiverSource Life Insurance Company Variable Annuities and Variable Life Insurance filed electronically as Exhibit 3.1 to the Initial Registration Statement on Form N-4 for RiverSource Variable Annuity Account (previously American Enterprise Variable Annuity Account), RiverSource Signature(SM) Select Variable Annuity and RiverSource Signature(SM) Variable Annuity, on or about Jan. 2, 2007, is incorporated by reference. 4.1 Form of Deferred Annuity Contract for non-qualified contracts (form 31043) filed electronically as Exhibit 4.1 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.2 Form of Deferred Annuity Contract for tax qualified contracts (form 31044) filed electronically as Exhibit 4.2 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.3 Form of Deferred Annuity Contract for IRA contracts (form 31045-IRA) filed electronically as Exhibit 4.3 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.4 Form of Deferred Annuity Contract for non-qualified contracts (form 31046) filed electronically as Exhibit 4.4 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.5 Form of Deferred Annuity Contract for tax qualified contracts (form 31047) filed electronically as Exhibit 4.5 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.6 Form of Deferred Annuity Contract for IRA contracts (form 31048-IRA) filed electronically as Exhibit 4.6 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.7 Form of TSA Endorsement (form 31049), filed electronically as Exhibit 4.7 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999 is incorporated herein by reference. 4.8 Form of Maximum Anniversary Value Death Benefit Rider, filed electronically as Exhibit 4.8 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.9 Form of Enhanced Earnings Death Benefit Rider, filed electronically as Exhibit 4.9 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.10 Form of Enhanced Earnings Plus Death Benefit Rider, filed electronically as Exhibit 4.10 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.11 Form of Traditional IRA or SEP-IRA Annuity Endorsement (form 131061) filed electronically as Exhibit 4.11 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.12 Form of Roth IRA Annuity Endorsement (form 131062) filed electronically as Exhibit 4.12 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.13 Form of SIMPLE IRA Annuity Endorsement (form 131063) filed electronically as Exhibit 4.13 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.14 Form of Deferred Annuity Contract for non-qualified contracts (form 131041) filed electronically as Exhibit 4.14 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.15 Form of Deferred Annuity Contract for Retirement Advisor Advantage Plus (form 1043 A) filed electronically as Exhibit 4.15 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.16 Form of Deferred Annuity Contract for Retirement Advisor Select Plus (form 131041 A) filed electronically as Exhibit 4.16 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.17 Form of Deferred Annuity Contract for RiverSource Retirement Advisor 4 Advantage Variable Annuity (form 131101), filed electronically as Exhibit 4.17 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.18 Form of Deferred Annuity Contract for RiverSource Retirement Advisor 4 Select Variable Annuity (form 131102), filed electronically as Exhibit 4.18 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.19 Form of Deferred Annuity Contract for RiverSource Retirement Advisor 4 Access Variable Annuity (form 131103), filed electronically as Exhibit 4.19 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.20 Form of TSA Endorsement (form 131068), filed electronically as Exhibit 4.17 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.21 Form of Return of Purchase Payments Rider (form 131072), filed electronically as Exhibit 4.18 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.22 Form of Maximum Anniversary Value Death Benefit Rider (form 131031), filed electronically as Exhibit 4.19 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.23 Form of 5-Year Maximum Anniversary Value Death Benefit Rider (form 131071), filed electronically as Exhibit 4.20 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.24 Form of Enhanced Earnings Death Benefit Rider (form 131032 A), filed electronically as Exhibit 4.21 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.25 Form of Enhanced Earnings Plus Death Benefit Rider (form 131033 A), filed electronically as Exhibit 4.22 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.26 Form of 401 (a) Annuity Endorsement (form 131069), filed electronically as Exhibit 4.23 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.27 Form of Guarantee Period Accounts Rider filed electronically as Exhibit 4.24 to Post-Effective Amendment No. 25 to Registration Statement No. 333-79311, filed on or about June 2, 2004, is incorporated by reference. 4.28 Form of Guaranteed Minimum Withdrawal Benefit Rider (form 131034) filed electronically as Exhibit 4.25 to Post-Effective Amendment No. 29 to Registration Statement No. 333-79311, filed on or about Oct. 21, 2004, is incorporated by reference. 4.29 Form of Guaranteed Minimum Accumulation Benefit Rider (GMAB) (form 131035) filed electronically as Exhibit 4.29 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 4.30 Form of Portfolio Navigator Model Portfolio Rider (form 131070C) filed electronically as Exhibit 4.30 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 4.31 Form of Guaranteed Minimum Lifetime Withdrawal Benefit Rider (Withdrawal Benefit for Life), filed electronically as Exhibit 4.31 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.32 Copy of Company name change endorsement (form 131115) for RiverSource Life Insurance Company, filed electronically as Exhibit 4.32 to Registrant's Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 filed on or about Jan. 2, 2007, is incorporated by reference. 4.33 Form of SecureSource Joint Life rider filed electronically as Exhibit 4.33 to Registrant's Post-Effective Amendment No. 44 to Registration Statement No. 333-79311 is incorporated herein by reference. 4.34 Form of SecureSource Single Life rider filed electronically as Exhibit 4.34 to Registrant's Post-Effective Amendment No. 44 to Registration Statement No. 333-79311 is incorporated herein by reference. 4.35 Form of Guaranteed Minimum Withdrawal Benefit Rider (form 131034-E) filed electronically as Exhibit 4.35 to Registrant's Post-Effective Amendment No. 47 to Registration Statement No. 333-79311 is incorporated herein by reference. 5. Form of Variable Annuity Application (form 31063), filed electronically as Exhibit 5 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999 is incorporated herein by reference. 6.1 Certificate of Incorporation of IDS Life dated July 24, 1957, filed electronically as Exhibit 6.1 to Registrant's Initial Registration Statement No. 33-62407 is incorporated herein by reference. 6.2 Copy of Certificate of Amendment of Certificate of Incorporation of IDS Life Insurance Company dated June 22, 2006, filed electronically as Exhibit 27(f)(1) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated by reference. 6.3 Copy of Amended and Restated By-Laws of RiverSource Life Insurance Company filed electronically as Exhibit 27(f)(2) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated by reference. 7. Not applicable. 8.1 Copy of Amended and Restated Participation Agreement dated April 17, 2006, by and among AIM Variable Insurance Funds, AIM Distributors, Inc. American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, and Ameriprise Financial Services, Inc. filed electronically as Exhibit 27(h) (1) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.2 Copy of Amended and Restated Participation Agreement dated August 1, 2006, among American Enterprise Life Insurance Company, IDS Life Insurance Company, Ameriprise Financial Services, Inc., AllianceBernstein L.P. and AllianceBernstein Investments, Inc. filed electronically as Exhibit 27(h) (20) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777is incorporated herein by reference. 8.3 Copy of Amended and Restated Fund Participation Agreement dated June 1, 2006, by and among American Centurion Life Assurance Company, American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, IDS Life Insurance Company of New York, Ameriprise Financial Services, Inc. and American Century Investment Services, Inc. filed electronically as Exhibit 27(h)(3) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated herein by reference. 8.4 Copy of Amended and Restated Participation Agreement dated June 19, 2006, by and among Calvert Variable Series, Inc., Calvert Asset Management Company, Inc., Calvert Distributors, Inc. and IDS Life Insurance Company filed electronically as Exhibit 27(h)(4) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.5 Copy of Fund Participation Agreement dated May 1, 2006 among American Enterprise Life Insurance Company, IDS Life Insurance Company, Columbia Funds Variable Insurance Trust I, Columbia Management Advisors, LLC and Columbia Management Distributors, Inc. filed electronically as Exhibit 27(h) (22) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.6 Copy of Amended and Restated Participation Agreement dated May 1, 2006, by and among American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, Credit Suisse Trust, Credit Suisse Asset Management, LLC. and Credit Suisse Asset Management Securities, Inc. filed electronically as Exhibit 8.6 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.7 Copy of Fund Participation Agreement dated May 1, 2006, by and among American Enterprise Life Insurance Company, IDS Life Insurance Company, The Dreyfus Corporation, Dreyfus Variable Investment Fund, and Dreyfus Investment Portfolios filed electronically as Exhibit 8.7 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.8 Copy of Participation Agreement dated May 1, 2006, among Eaton Vance Variable Trust, Eaton Vance Distributors, Inc. and IDS Life Insurance Company filed electronically as Exhibit 8.8 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.9 Copy of Evergreen Variable Annuity Trust Amended and Restated Participation Agreement dated June 1, 2006, by and among American Enterprise Life Insurance Company, IDS Life Insurance Company and Evergreen Variable Annuity Trust filed electronically as Exhibit 27(h) (6) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.10 Copy of Amended and Restated Fund Participation Agreement dated January 1, 2007,among Variable Insurance Products Funds, Fidelity Distributors Corporation and RiverSource Life Insurance Co. of New York filed electronically as Exhibit 8.16 to RiverSource of New York Variable Annuity Account 2's Post-Effective Amendment No. 3 to Registration Statement No. 333-139764 on or about April 24, 2008 is incorporated by reference herein. 8.11 Copy of Amended and Restated Participation Agreement by and between Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., American Centurion Life Assurance Company, American Enterprise Life Insurance Company, IDS Life Insurance Company, IDS Life Insurance Company of New York, Ameriprise Financial Services, Inc. (formerly American Express Financial Advisors Inc.), dated August 1, 2005 filed electronically as Exhibit 8.7 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 8.12 Copy of Amended and Restated Participation Agreement dated June 9, 2006, by and among American Enterprise Life Insurance Company, IDS Life Insurance Company, Goldman Sachs Variable Insurance Trust and Goldman, Sachs & Co. filed electronically as Exhibit 27(h)(24) to Post Effective Amendment No.28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.13 Copy of Janus Aspen Series Amended and Restated Fund Participation Agreement dated September 1, 2006, by and among American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company and Janus Aspen Series filed electronically as Exhibit 27(h)(12) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.14 Copy of Amended and Restated Participation Agreement by and among IDS Life Insurance Company, American Enterprise Life Insurance Company, Ameriprise Financial Services, Inc., Lazard Asset Management Securities LLC, and Lazard Retirement Series, Inc., dated Oct. 16, 2006, filed electronically as Exhibit 8.14 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.15 Copy of Fund Participation Agreement dated Jan. 1, 2007, by and among RiverSource Life Insurance Company, RiverSource Distributors, Inc. and Lazard Asset Management Securities LLC and Lazard Retirement Series, Inc. filed electronically as Exhibit 8.15 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.16 Copy of Amended and Restated Participation Agreement dated September 1, 2006, by and among IDS Life Insurance Company, Legg Mason Partners Variable Portfolios I, Inc. (formerly Salomon Brothers Variable Series Fund, Inc.), Legg Mason Partners Variable Portfolios II, Inc. (formerly Greenwich Street Series Fund, formerly Smith Barney Series Fund, formerly Smith Barney Shearson Series Fund, formerly Shearson Series Fund), Legg Mason Partners Variable Portfolios III, Inc. (formerly Travelers Series Fund Inc., formerly Smith Barney Travelers Series Fund Inc.) and Legg Mason Investor Services, LLC filed electronically as Exhibit 8.15 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.17 Copy of Participation Agreement Among MFS Variable Insurance Trust, American Enterprise Life Insurance Company, IDS Life Insurance Company and Massachusetts Financial Services Company, dated June 9, 2006, filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.18 Copy of Fund Participation Agreement dated March 2, 2006, by and between Neuberger Berman Advisers Management Trust, Neuberger Berman Management, Inc. and IDS Life Insurance Company filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.19 Copy of Amended and Restated Fund Participation Agreement dated March 30, 2007, among Oppenheimer Variable Account funds, Oppenheimer Funds, Inc. and RiverSource Life Insurance Company filed electronically as Exhibit 8.4 to RiverSource Variable Annuity Account Post-Effective Amendment No. 2 to Registration Statement No. 333-139760 on or about April 24, 2008 is incorporated by reference herein. 8.20 Copy of Participation Agreement dated March 1, 2006, among IDS Life Insurance Company, PIMCO Variable Insurance Trust and Allianz Global Investors Distributors LLC filed electronically as Exhibit 8.19 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.21 Copy of Amended and Restated Fund Participation Agreement dated September 1, 2006, among Pioneer Variable Contracts Trust, IDS Life Insurance Company, Pioneer Investment Management, Inc., and Pioneer Funds Distributor, Inc. filed electronically as Exhibit 27(h)(15) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.22 Copy of Amended and Restated Fund Participation Agreement dated Jan. 1, 2007, among Riversource Life Insurance Company, Putnam Variable Trust and Putnam Retail Management Limited Partnership filed electronically as Exhibit 8.2 to RiverSource Variable Annuity Account's Post-Effective Amendment No. 2 to Registration Statement No. 333-139760 on or about April 24, 2008 is incorporated by reference herein. 8.23 Copy of Participation Agreement dated January 1, 2007, by and among RiverSource Life Insurance Company, RiverSource Life Insurance Co. of New York and RiverSource Distributors, Inc. filed electronically as Exhibit 8.23 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.24 Copy of Participation Agreement by and among Royce Capital Fund and Royce & Associates, Inc. and RiverSource Life Insurance Company, dated Jan. 1, 2007, filed electronically as Exhibit 8.24 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.25 Copy of Amended and Restated Participation Agreement dated May 1, 2006, among The Universal Institutional Funds, Inc., Morgan Stanley Investment Management Inc., Morgan Stanley Distribution, Inc., American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 8.24 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.26 Copy of Amended and Restated Participation Agreement dated October 12, 2006, by and among Third Avenue Variable Series Trust, Third Avenue Management LLC, American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 27(h)(18) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.27 Copy of Amended and Restated Participation Agreement dated May 1, 2006, among Van Kampen Life Investment Trust, Van Kampen Funds Inc., Van Kampen Asset Management, American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 8.26 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.28 Copy of Fund Participation Agreement dated April 2, 2007, RiverSource Life Insurance Company, Wanger Advisors Trust, Columbia Wanger Asset Management, L.P. and Columbia Management Distributors, Inc. filed electronically as Exhibit 8.11 to RiverSource Variable Annuity Account Post-Effective Amendment No. 2 to Registration Statement No. 333-139760 on or about April 24, 2008 is incorporated by reference herein. 8.29 Copy of Participation Agreement by and among Wells Fargo Variable Trust and RiverSource Life Insurance Company and Wells Fargo Funds Distributors, LLC dated Jan. 1, 2007, filed electronically as Exhibit 8.29 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 9. Opinion of counsel and consent to its use as the legality of the securities being registered is filed electronically herewith. 10.1 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Variable Annuity is filed electronically herewith. 10.2 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Variable Annuity - Band 3 is filed electronically herewith. 10.3 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Advantage Variable Annuity/ Retirement Advisor Select Variable Annuity is filed electronically herewith. 10.4 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Advantage Variable Annuity - Band 3 is filed electronically herewith. 10.5 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor Advantage Plus Variable Annuity/ RiverSource Retirement Advisor Select Plus Variable Annuity is filed electronically herewith. 10.6 Consent of Independent Registered Public Accounting Firm for RiverSource Retirement Advisor 4 Advantage Variable Annuity/ RiverSource Retirement Advisor 4 Select Variable Annuity/RiverSource Retirement Advisor 4 Access Variable Annuity is filed electronically herewith. 11. None 12. Not applicable. 13. Power of Attorney dated Oct.22, 2008 is filed electronically herewith. 14. Not applicable. Item 25. Item 25. Directors and Officers of the Depositor RiverSource Life Insurance Company
Name Principal Business Address* Position and Offices With Depositor ---- --------------------------- ----------------------------------- Lynn Abbott Vice President - National Accounts and Fund Management Gumer C. Alvero Director and Executive Vice President - Annuities Timothy V. Bechtold Director and President Kent M. Bergene Vice President - Affiliated Investments Walter Stanley Berman Vice President and Treasurer Richard N. Bush Senior Vice President - Corporate Tax Charles R. Caswell Reinsurance Officer James L Hamalainen Vice President - Investments Michelle Marie Keeley Vice President - Investments Timothy J. Masek Vice President - Investments Brian Joseph McGrane Director, Executive Vice President and Chief Financial Officer Thomas W. Murphy Vice President - Investments Kevin Palmer Director, Vice President and Chief Actuary Bridget Mary Sperl Director, Executive Vice President - Client Service David Kent Stewart Vice President and Controller William Frederick "Ted" Truscott Director John Robert Woerner Director
* The business address is 70100 Amerprise Financial Center, Minneapolis, MN 55474. Item 26. Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant The following list includes the names of major subsidiaries of Ameriprise Financial, Inc.
Jurisdiction of Name of Subsidiary Incorporation ------------------ --------------- Advisory Capital Strategies Group Inc. Minnesota AEXP Affordable Housing LLC Delaware American Enterprise Investment Services Inc. Minnesota American Express Property Casualty Insurance Agency of Pennsylvania,Inc. Pennsylvania Ameriprise Advisor Services, Inc. Michigan Ameriprise Auto & Home Insurance Agency, Inc. Wisconsin Ameriprise Bank, FSB USA Ameriprise Captive Insurance Company Vermont Ameriprise Capital Trusts I-IV Delaware Ameriprise Certificate Company Delaware Ameriprise Financial Services,Inc. Delaware Ameriprise Holdings, Inc. Delaware Ameriprise India Private Ltd. India Ameriprise Insurance Agency of Massachusetts, Inc. Massachusetts Ameriprise Insurance Agency Wisconsin Ameriprise Trust Company Minnesota AMPF Holding Corporation Michigan AMPF Property Corporation Michigan AMPF Realty Corporation Michigan Brecek & Young Advisors, Inc. California Brecek & Young Financial Group Insurance Agency of Texas, Inc. Texas Brecek & Young Financial Services Group of Montana, Inc. Montana Boston Equity General Partner LLC Delaware 4230 W. Green Oaks, Inc. Michigan IDS Capital Holdings Inc. Minnesota IDS Futures Corporation Minnesota IDS Management Corporation Minnesota IDS Property Casualty Insurance Company Wisconsin Investors Syndicate Development Corporation Nevada J. & W. Seligman & Co. Incorporated New York Kenwood Capital Management LLC (47.7% owned) Delaware Realty Assets Inc. Nebraska RiverSource CDO Seed Investments, LLC Minnesota RiverSource Distributors,Inc. Delaware RiverSource Fund Distributors, Inc. Delaware RiverSource Investments,LLC Minnesota RiverSource Life Insurance Company Minnesota RiverSource Life Insurance Co. of New York New York RiverSource REO 1, LLC Minnesota RiverSource Service Corporation Minnesota RiverSource Services, Inc. Delaware RiverSource Tax Advantaged Investments, Inc. Delaware Securities America Advisors,Inc. Nebraska Securities America Financial Corporation Nebraska Securities America, Inc. Nebraska Seligman Asia, Inc. Delaware Seligman Focus Partners LLC Delaware
Seligman Health Partners LLC Delaware Seligman Health Plus Partners LLC Delaware Seligman Partners LLC Delaware Threadneedle Asset Management Holdings SARL England
Item 27. Number of Contract owners As of March 31, 2009 there were 206,731 non-qualified contract owners and 419,379 qualified contract owners. Item 28. Indemnification The amended and restated By-Laws of the depositor provide that the depositor will indemnify, to the fullest extent now or hereafter provided for or permitted by law, each person involved in, or made or threatened to be made a party to, any action, suit, claim or proceeding, whether civil or criminal, including any investigative, administrative, legislative, or other proceeding, and including any action by or in the right of the depositor or any other corporation, or any partnership, joint venture, trust, employee benefit plan, or other enterprise (any such entity, other than the depositor, being hereinafter referred to as an "Enterprise"), and including appeals therein (any such action or process being hereinafter referred to as a "Proceeding"), by reason of the fact that such person, such person's testator or intestate (i) is or was a director or officer of the depositor, or (ii) is or was serving, at the request of the depositor, as a director, officer, or in any other capacity, or any other Enterprise, against any and all judgments, amounts paid in settlement, and expenses, including attorney's fees, actually and reasonably incurred as a result of or in connection with any Proceeding, except as provided below. No indemnification will be made to or on behalf of any such person if a judgment or other final adjudication adverse to such person establishes that such person's acts were committed in bad faith or were the result of active and deliberate dishonesty and were material to the cause of action so adjudicated, or that such person personally gained in fact a financial profit or other advantage to which such person was not legally entitled. In addition, no indemnification will be made with respect to any Proceeding initiated by any such person against the depositor, or a director or officer of the depositor, other than to enforce the terms of this indemnification provision, unless such Proceeding was authorized by the Board of Directors of the depositor. Further, no indemnification will be made with respect to any settlement or compromise of any Proceeding unless and until the depositor has consented to such settlement or compromise. The depositor may, from time to time, with the approval of the Board of Directors, and to the extent authorized, grant rights to indemnification, and to the advancement of expenses, to any employee or agent of the depositor or to any person serving at the request of the depositor as a director or officer, or in any other capacity, of any other Enterprise, to the fullest extent of the provisions with respect to the indemnification and advancement of expenses of directors and officers of the depositor. Insofar as indemnification for liability arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the depositor or the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Item 29. Principal Underwriter RiverSource Distributors Inc. ITEM 29. PRINCIPAL UNDERWRITERS. (a) RiverSource Distributors Inc. acts as principal underwriter, depositor or sponsor for: RiverSource Variable Annuity Account ; RiverSource Account F; RiverSource Variable Annuity Fund A, RiverSource Variable Annuity Fund B, RiverSource Variable Account 10; RiverSource Account MGA; RiverSource MVA Account; RiverSource Variable Life Separate Account; RiverSource Variable Life Account; RiverSource Life Insurance Company; RiverSource of New York Variable Annuity Account ; RiverSource of New York Account 8; RiverSource of New York Variable Annuity Account; RiverSource Bond Series, Inc.; RiverSource California Tax-Exempt Trust; RiverSource Dimensions Series, Inc.; RiverSource Diversified Income Series, Inc.; RiverSource Equity Series, Inc.; RiverSource Global Series, Inc.; RiverSource Government Income Series, Inc.; RiverSource High Yield Income Series, Inc.; RiverSource Income Series, Inc.; RiverSource International Managers Series, Inc.; RiverSource International Series, Inc.; RiverSource Investment Series, Inc.; RiverSource Large Cap Series, Inc.; RiverSource Managers Series, Inc.; RiverSource Market Advantage Series, Inc.; RiverSource Money Market Series, Inc.; RiverSource Sector Series, Inc.; RiverSource Selected Series, Inc.; RiverSource Series Trust; RiverSource Short Term Investments Series, Inc.; RiverSource Special Tax-Exempt Series Trust; RiverSource Strategic Allocation Series; Inc., RiverSource Strategy Series, Inc.; RiverSource Tax-Exempt Income Series, Inc.; RiverSource Tax-Exempt Money Market Series, Inc.; RiverSource Tax-Exempt Series, Inc.; RiverSource Variable Series Trust. (b) As to each director, officer or partner of the principal underwriter:
Name and Principal Business Address* Positions and Offices with Underwriter ------------------------------------ -------------------------------------------------------- Gumer C. Alvero Director and Vice President Patrick Thomas Bannigan Director and Vice President Timothy V. Bechtold Director and Vice President Paul J. Dolan Chief Operating Officer and Chief Administrative Officer Jeffrey P. Fox Chief Financial Officer Bimal Gandhi Senior Vice President - Strategic Transformation Jeffrey McGregor President Thomas R. Moore Secretary Scott Roane Plummer Chief Counsel Julie A. Ruether Chief Compliance Officer William Frederick "Ted" Truscott Chairman of the Board and Chief Executive Officer
* Business address is: 50611 Ameriprise Financial Center, Minneapolis, MN 55474 (c) RiverSource Distributors Inc., the principal underwriter during Registrant's last fiscal year, was paid the following commissions:
NAME OF NET UNDERWRITING PRINCIPAL DISCOUNTS AND COMPENSATION ON BROKERAGE UNDERWRITER COMMISSIONS REDEMPTION COMMISSIONS COMPENSATION ----------- ---------------- --------------- ----------- ------------ RiverSource Distributors,Inc. $383,542,107 None None None
Item 30. Location of Accounts and Records RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 Item 31. Management Services Not applicable. Item 32. Undertakings (a) Registrant undertakes to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted. (b) Registrant undertakes to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information. (c) Registrant undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request. (d) Registrant represents that it is relying upon the no-action assurance given to the American Council of Life Insurance (pub. avail. Nov. 28, 1988). Further, Registrant represents that it has complied with the provisions of paragraphs (1)-(4) of that no-action letter. (e) The sponsoring insurance company represents that the fees and charges deducted under the contract, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the insurance company. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, RiverSource Life Insurance Company, on behalf of the Registrant, certifies that it meets all of the requirements of Securities Act Rule 485(b) for effectiveness of this Amendment to its Registration Statement and has caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Minneapolis, and State of Minnesota, on the 24th day of April, 2009. RIVERSOURCE VARIABLE ACCOUNT 10 (Registrant) By RiverSource Life Insurance Company (Sponsor) By /s/ Timothy V. Bechtold* ------------------------------------- Timothy V. Bechtold President As required by the Securities Act of 1933, Amendment to this Registration Statement has been signed by the following persons in the capacities indicated on the 24th day of April, 2009.
Signature Title --------- ---------------------------------------- /s/ Gumer C. Alvero* Director and Executive Vice ------------------------------------- President - Annuities Gumer C. Alvero /s/ Timothy V. Bechtold* Director, President and Chief Executive ------------------------------------- Officer Timothy V. Bechtold /s/ Richard N. Bush* Senior Vice President - Corporate Tax ------------------------------------- Richard N. Bush /s/ Brian J. McGrane* Director, Executive Vice President and ------------------------------------- Chief Financial Officer Brian J. McGrane /s/ Kevin E. Palmer* Director, Vice President and Chief ------------------------------------- Actuary Kevin E. Palmer
/s/ Bridget M. Sperl* Executive Vice President - ------------------------------------- Client Services Bridget M. Sperl /s/ David K. Stewart* Vice President and Controller ------------------------------------- (Principal Accounting Officer) David K. Stewart /s/ William F. "Ted" Truscott* Director ------------------------------------- William F. "Ted" Truscott /s/ John R. Woerner* Director ------------------------------------- John R. Woerner
* Signed pursuant to Power of Attorney dated Oct.22, 2008 filed electronically as Exhibit 13 herewith, by: /s/ Dixie Carroll -------------------------------------- Dixie Carroll Assistant General Counsel and Assistant Secretary CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 53 TO REGISTRATION STATEMENT This Post-Effective Amendment is comprised of the following papers and documents: The Cover Page. Part A. The Prospectuses for: RiverSource Retirement Advisor Variable Annuity RiverSource Retirement Advisor Variable Annuity - Band 3 RiverSource Retirement Advisor Advantage Variable Annuity RiverSource Retirement Advisor Select Variable Annuity RiverSource Retirement Advisor Advantage Variable Annuity - Band 3 RiverSource Retirement Advisor Advantage Plus Variable Annuity RiverSource Retirement Advisor Select Plus Variable Annuity RiverSource Retirement Advisor 4 Advantage Variable Annuity RiverSource Retirement Advisor 4 Select Variable Annuity RiverSource Retirement Advisor 4 Access Variable Annuity Part B. Combined Statement of Additional Information and Financial Information. Part C. Other Information. The signatures. Exhibits. Exhibit Index 9. Opinion of counsel and consent to its use as to the legality of the securities being registered. 10.1 - 10.6 Consents of Independent Registered Public Accounting Firm. 13. Power of Attorney dated Oct. 22, 2008.