-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UTykJr+WrsepEnDbnjSl7QA12KuFeMpTJCKAs9E9h3MH2HdN+LDSMo+lzKw5LdCQ /MKsjSyQYLABEwNXyTW01A== 0000950135-08-004893.txt : 20080710 0000950135-08-004893.hdr.sgml : 20080710 20080710093625 ACCESSION NUMBER: 0000950135-08-004893 CONFORMED SUBMISSION TYPE: N-4 PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20080710 DATE AS OF CHANGE: 20080710 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES CENTRAL INDEX KEY: 0001209404 IRS NUMBER: 000000000 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-4 SEC ACT: 1940 Act SEC FILE NUMBER: 811-21262 FILM NUMBER: 08946187 BUSINESS ADDRESS: STREET 1: METLIFE INSURANCE COMPANY OF CONNECTICUT STREET 2: ONE CITYPLACE, 185 ASYLUM STREET, 3CP CITY: HARTFORD STATE: CT ZIP: 06103-3415 BUSINESS PHONE: 1-866-547-3793 MAIL ADDRESS: STREET 1: METLIFE INSURANCE COMPANY OF CONNECTICUT STREET 2: ONE CITYPLACE, 185 ASYLUM STREET, 3CP CITY: HARTFORD STATE: CT ZIP: 06103-3415 FORMER COMPANY: FORMER CONFORMED NAME: TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES DATE OF NAME CHANGE: 20021210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES CENTRAL INDEX KEY: 0001209404 IRS NUMBER: 000000000 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-4 SEC ACT: 1933 Act SEC FILE NUMBER: 333-152235 FILM NUMBER: 08946188 BUSINESS ADDRESS: STREET 1: METLIFE INSURANCE COMPANY OF CONNECTICUT STREET 2: ONE CITYPLACE, 185 ASYLUM STREET, 3CP CITY: HARTFORD STATE: CT ZIP: 06103-3415 BUSINESS PHONE: 1-866-547-3793 MAIL ADDRESS: STREET 1: METLIFE INSURANCE COMPANY OF CONNECTICUT STREET 2: ONE CITYPLACE, 185 ASYLUM STREET, 3CP CITY: HARTFORD STATE: CT ZIP: 06103-3415 FORMER COMPANY: FORMER CONFORMED NAME: TIC SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES DATE OF NAME CHANGE: 20021210 0001209404 S000005920 METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES C000068809 Pioneer Annuistar Annuity (A) C000068810 Portfolio Architect II Annuity (A) C000068811 Pioneer Annuistar Value Annuity (A) N-4 1 y61036a1nv4.txt METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES As filed with the Securities and Exchange Commission on July 10, 2008 REGISTRATION STATEMENT NO. 333 - 811-21262 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------- FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X] PRE-EFFECTIVE AMENDMENT NO. [ ] POST-EFFECTIVE AMENDMENT NO. [ ] AND REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 AMENDMENT NO. 35 [X] (Check Appropriate box or boxes.) METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES (Exact name of Registrant) METLIFE INSURANCE COMPANY OF CONNECTICUT (Name of Depositor) ONE CITYPLACE, 185 ASYLUM STREET, 3CP, HARTFORD, CONNECTICUT 06103-3415 (Address of Depositor's Principal Executive Offices) Depositor's Telephone Number, including area code: (860) 308-1000 MARIE C. SWIFT, ESQ. METROPOLITAN LIFE INSURANCE COMPANY 501 BOYLSTON STREET BOSTON, MA 02116 (Name and Address of Agent for Service) APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: AS SOON AS PRACTICABLE FOLLOWING THE EFFECTIVENESS OF THE REGISTRATION STATEMENT. THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SECTION 8(A), MAY DETERMINE. TITLE OF SECURITIES BEING REGISTERED: INDIVIDUAL VARIABLE ANNUITY CONTRACTS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PIONEER ANNUISTAR(SM) VARIABLE ANNUITY PIONEER ANNUISTAR VALUE(SM) ANNUITY ISSUED BY METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES METLIFE INSURANCE COMPANY OF CONNECTICUT SUPPLEMENT DATED OCTOBER 13, 2008 TO THE PROSPECTUS DATED APRIL 28, 2008 Effective October 13, 2008, the Company combined MetLife of CT Separate Account Thirteen for Variable Annuities (the "Former Separate Account") with and into MetLife of CT Separate Account Eleven for Variable Annuities (the "Separate Account"). The Separate Account was established on November 14, 2002 and is registered with the Securities and Exchange Commission as a unit investment trust under the Investment Company Act of 1940, as amended. In connection with the combination of the Former Separate Account with and into the Separate Account (the "Combination"), we transferred the assets of the Former Separate Account to the Separate Account and the Separate Account assumed the liabilities and contractual obligations of the Former Separate Account. All references in your Prospectus to the Former Separate Account now refer to the Separate Account. The Combination does not affect you in any way. More particularly: - There are no changes in our obligations or your rights and benefits under the Contract as a result of the Combination. - Your Contract Value is not affected by the Combination and no charges have been or will be imposed in connection therewith. - The Variable Funding Options available under your Contract have not changed as a result of the Combination. - Your Contract Value is allocated to the same Variable Funding Options (with the same Accumulation Unit values or Annuity Unit values) as it was before the Combination. - The Combination does not result in any federal income tax consequences to you. If you have any questions, please contact us at 866-547-3793. PIONEER ANNUISTAR(SM) VARIABLE ANNUITY PROSPECTUS: METLIFE OF CT SEPARATE ACCOUNT THIRTEEN FOR VARIABLE ANNUITIES METLIFE OF CT SEPARATE ACCOUNT FOURTEEN FOR VARIABLE ANNUITIES APRIL 28, 2008 This prospectus describes PIONEER ANNUISTAR VARIABLE ANNUITY, a flexible premium deferred variable annuity contract (the "Contract") issued by MetLife Insurance Company of Connecticut. The Contract is available in connection with certain retirement plans that qualify for special federal income tax treatment ("Qualified Contracts") as well as those that do not qualify for such treatment ("Non-qualified Contracts"). We may issue it as an individual contract or as a group contract. When we issue a group contract, you will receive a certificate summarizing the Contract's provisions. For convenience, we refer to contracts and certificates as "Contracts." You can choose to have your premium ("Purchase Payments") accumulate on a variable and/or, subject to availability, fixed basis in one or more of our funding options. Your Contract Value before the Maturity Date and the amount of monthly income afterwards will vary daily to reflect the investment experience of the Variable Funding Options you select. You bear the investment risk of investing in the Variable Funding Options. The Variable Funding Options available for contracts purchased on or after April 28, 2008 are: FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS Pioneer Cullen Value VCT Portfolio TRUST -- CLASS 2 Pioneer Emerging Markets VCT Portfolio Franklin Rising Dividends Securities Fund Pioneer Equity Income VCT Portfolio Franklin Small-Mid Cap Growth Securities Pioneer Fund VCT Portfolio Fund Pioneer Global High Yield VCT Portfolio Templeton Foreign Securities Fund Pioneer High Yield VCT Portfolio LEGG MASON PARTNERS VARIABLE EQUITY TRUST Pioneer Ibbotson Aggressive Allocation VCT Legg Mason Partners Variable Aggressive Portfolio Growth Portfolio -- Class II Pioneer Ibbotson Growth Allocation VCT Legg Mason Partners Variable Capital and Portfolio Income Portfolio -- Class II Pioneer Ibbotson Moderate Allocation VCT Legg Mason Partners Variable Fundamental Portfolio Value Portfolio -- Class I Pioneer Independence VCT Portfolio MET INVESTORS SERIES TRUST Pioneer International Value VCT Portfolio Lazard Mid Cap Portfolio -- Class B Pioneer Mid Cap Value VCT Portfolio Met/AIM Capital Appreciation Pioneer Oak Ridge Large Cap Growth VCT Portfolio -- Class E Portfolio MFS(R) Research International Pioneer Real Estate Shares VCT Portfolio Portfolio -- Class B Pioneer Small Cap Value VCT Portfolio Oppenheimer Capital Appreciation Pioneer Strategic Income VCT Portfolio Portfolio -- Class B METROPOLITAN SERIES FUND, INC. BlackRock Money Market Portfolio -- Class A MFS(R) Total Return Portfolio -- Class B Oppenheimer Global Equity Portfolio -- Class B PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio
Certain Variable Funding Options have been subject to a merger, substitution or other change. Please see "Appendix C -- Additional Information Regarding Underlying Funds" for more information. The Contract, certain Contract features and/or some of the funding options may not be available in all states. This prospectus provides the information that you should know before investing in the Contract. Please keep this prospectus for future reference. You can receive additional information about your Contract by requesting a copy of the Statement of Additional Information ("SAI") dated April 28, 2008. We filed the SAI with the Securities and Exchange Commission ("SEC"), and it is incorporated by reference into this prospectus. To request a copy, write to us at P.O. Box 10366, Des Moines, IA 50306-0366, call 866-547-3793 or access the SEC's website (http://www.sec.gov). See Appendix F for the SAI's table of contents. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. VARIABLE ANNUITY CONTRACTS ARE NOT DEPOSITS OF ANY BANK, AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. TABLE OF CONTENTS
PAGE ---- GLOSSARY................................................................ 3 SUMMARY................................................................. 5 FEE TABLE............................................................... 9 CONDENSED FINANCIAL INFORMATION......................................... 13 THE ANNUITY CONTRACT.................................................... 13 Contract Owner Inquiries................................................ 14 Purchase Payments....................................................... 15 Accumulation Units...................................................... 15 The Variable Funding Options............................................ 16 FIXED ACCOUNT........................................................... 19 CHARGES AND DEDUCTIONS.................................................. 20 General................................................................. 20 Withdrawal Charge....................................................... 20 Free Withdrawal Allowance............................................... 21 Transfer Charge......................................................... 21 Administrative Charges.................................................. 21 Mortality and Expense Risk Charge....................................... 22 Variable Liquidity Benefit Charge....................................... 22 Enhanced Stepped-Up Provision Charge.................................... 22 Guaranteed Minimum Withdrawal Benefit Charge............................ 22 Guaranteed Minimum Withdrawal Benefit for Life ("GMWB for Life") Charge................................................................ 22 Guaranteed Minimum Accumulation Benefit Charge.......................... 23 Variable Funding Option Expenses........................................ 23 Premium Tax............................................................. 23 Changes in Taxes Based upon Premium or Value............................ 23 TRANSFERS............................................................... 23 Market Timing/Excessive Trading......................................... 23 Dollar Cost Averaging................................................... 25 ACCESS TO YOUR MONEY.................................................... 26 Systematic Withdrawals.................................................. 26 OWNERSHIP PROVISIONS.................................................... 27 Types of Ownership...................................................... 27 Contract Owner.......................................................... 27 Beneficiary............................................................. 27 Annuitant............................................................... 27 DEATH BENEFIT........................................................... 28 Death Proceeds before the Maturity Date................................. 28 Enhanced Stepped-Up Provision ("E.S.P.")................................ 30 Payment of Proceeds..................................................... 31 Spousal Contract Continuance (subject to availability--does not apply if a non-spouse is a joint owner)........................................ 32 Beneficiary Contract Continuance (not permitted for non-natural beneficiaries)........................................................ 33 Planned Death Benefit................................................... 33 Death Proceeds after the Maturity Date.................................. 34 LIVING BENEFITS......................................................... 34 Guaranteed Minimum Withdrawal Benefit ("GMWB" or "Principal Guarantee")........................................................... 34 THE ANNUITY PERIOD...................................................... 55 Maturity Date........................................................... 55 Allocation of Annuity................................................... 55 Variable Annuity........................................................ 55 Fixed Annuity........................................................... 56 PAYMENTS OPTIONS........................................................ 56 Election of Options..................................................... 56 Annuity Options......................................................... 56 Variable Liquidity Benefit.............................................. 57 MISCELLANEOUS CONTRACT PROVISIONS....................................... 57 Right to Return......................................................... 57 Termination............................................................. 57 Required Reports........................................................ 58 Suspension of Payments.................................................. 58 THE SEPARATE ACCOUNTS................................................... 58 Performance Information................................................. 59 FEDERAL TAX CONSIDERATIONS.............................................. 59 General Taxation of Annuities........................................... 59 Types of Contracts: Qualified and Non-qualified......................... 60 Qualified Annuity Contracts............................................. 60 Taxation of Qualified Annuity Contracts................................. 61 Mandatory Distributions for Qualified Plans............................. 61 Individual Retirement Annuities......................................... 61 Roth IRAs............................................................... 62 TSAs (ERISA and Non-ERISA).............................................. 62 Non-qualified Annuity Contracts......................................... 64 Diversification Requirements for Variable Annuities..................... 65 Ownership of the Investments............................................ 65 Taxation of Death Benefit Proceeds...................................... 66 Other Tax Considerations................................................ 66 Treatment of Charges for Optional Benefits.............................. 66 Guaranteed Minimum Withdrawal Benefits.................................. 66 Puerto Rico Tax Considerations.......................................... 66 Non-Resident Aliens..................................................... 67 Tax Credits and Deductions.............................................. 67 OTHER INFORMATION....................................................... 67 The Insurance Company................................................... 67 Financial Statements.................................................... 68 Distribution of Variable Annuity Contracts.............................. 68 Conformity with State and Federal Laws.................................. 69 Voting Rights........................................................... 70 Restrictions on Financial Transactions.................................. 70 Legal Proceedings....................................................... 70 APPENDIX A: CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT THIRTEEN FOR VARIABLE ANNUITIES............................... A-1 APPENDIX B: CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT FOURTEEN FOR VARIABLE ANNUITIES............................... B-1 APPENDIX C: ADDITIONAL INFORMATION REGARDING UNDERLYING FUNDS........... C-1 APPENDIX D: THE FIXED ACCOUNT........................................... D-1 APPENDIX E: WAIVER OF WITHDRAWAL CHARGE FOR NURSING HOME CONFINEMENT.... E-1 APPENDIX F: CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION......... F-1
2 GLOSSARY ACCUMULATION UNIT -- an accounting unit of measure used to calculate the value of this Contract before Annuity Payments begin. ANNUITANT -- the person on whose life the Maturity Date and Annuity Payments depend. ANNUITY PAYMENTS -- a series of periodic payments (a) for life; (b) for life with a minimum number of payments; (c) for the joint lifetime of the Annuitant and another person, and thereafter during the lifetime of the survivor; or (d) for a fixed period. ANNUITY UNIT -- an accounting unit of measure used to calculate the amount of Annuity Payments. CASH SURRENDER VALUE -- the Contract Value less any withdrawal charge and premium tax not previously deducted. CODE -- the Internal Revenue Code of 1986, as amended, and all related laws and regulations that are in effect during the term of this Contract. CONTINGENT ANNUITANT -- the individual who becomes the Annuitant when the Annuitant who is not the owner dies prior to the Maturity Date. CONTRACT DATE -- the date on which the Contract is issued. CONTRACT OWNER (YOU) -- the person named in the Contract (on the specifications page) as the owner of the Contract. CONTRACT VALUE -- Purchase Payments, plus or minus any investment experience on the amounts allocated to the variable funds or interest on amounts allocated to the Fixed Account, adjusted by any applicable charges and withdrawals. CONTRACT YEARS -- twelve month periods beginning with the Contract Date. DEATH REPORT DATE -- the day on which we have received 1) Due Proof of Death and 2) written payment instructions or election of spousal or beneficiary contract continuation. DUE PROOF OF DEATH -- (i) a copy of a certified death certificate; (ii) a copy of a certified decree of a court of competent jurisdiction as to the finding of death; (iii) a written statement by a medical doctor who attended the deceased; or (iv) any other proof satisfactory to us. FIXED ACCOUNT -- an account that consists of all of the assets under this Contract other than those in the Separate Account. HOME OFFICE -- the Home Office of MetLife Insurance Company of Connecticut or any other office that we may designate for the purpose of administering this Contract. For transfer, withdrawal, surrender, and (if applicable) loan requests, our Home Office address is: MetLife, P.O. Box 10366, Des Moines, IA 50306-0366 (for overnight delivery or courier service only: 4700 Westown Parkway, Suite 200, West Des Moines, IA 50266). For Purchase Payments and (if applicable) loan repayments, our Home Office address is: MetLife, P.O. Box 371857, Pittsburgh, PA 15250-7857. MATURITY DATE -- the date on which the Annuity Payments are to begin. PAYMENT OPTION -- an annuity option elected under your Contract. PURCHASE PAYMENT -- any premium paid by you to initiate or supplement this Contract. QUALIFIED CONTRACT -- a contract used in a retirement plan or program that is intended to qualify under Sections 401, 403, 408 or 408A of the Code. SEPARATE ACCOUNT -- a segregated account registered with the Securities and Exchange Commission ("SEC"), the assets of which are invested solely in the Underlying Funds. The assets of the Separate Account are held exclusively for the benefit of Contract Owners. SUBACCOUNT -- that portion of the assets of a Separate Account that is allocated to a particular Underlying Fund. 3 UNDERLYING FUND -- a portfolio of an open-end management investment company that is registered with the SEC in which the Subaccounts invest. VALUATION DATE -- a date on which a Subaccount is valued. VALUATION PERIOD -- the period between successive valuations. VARIABLE FUNDING OPTION -- a Subaccount of the Separate Account that invests in an Underlying Fund. WE, US, OUR -- MetLife Insurance Company of Connecticut. WRITTEN REQUEST -- written information sent to us in a form and content satisfactory to us and received at our Home Office. YOU, YOUR -- "You" is the Contract Owner and a natural person, a trust established for the benefit of a natural person or a charitable remainder trust. 4 SUMMARY: PIONEER ANNUISTAR VARIABLE ANNUITY THIS SUMMARY DETAILS SOME OF THE MORE IMPORTANT POINTS THAT YOU SHOULD KNOW AND CONSIDER BEFORE PURCHASING THE CONTRACT. PLEASE READ THE ENTIRE PROSPECTUS CAREFULLY. WHAT COMPANY WILL ISSUE MY CONTRACT? Your issuing company is MetLife Insurance Company of Connecticut ("the Company," "We" or "Us"). The Company sponsors MetLife of CT Separate Account Thirteen for Variable Annuities ("Separate Account Thirteen") and MetLife of CT Separate Account Fourteen for Variable Annuities ("Separate Account Fourteen"), each a segregated account ("Separate Account"). Prior to December 7, 2007, Separate Account Fourteen was sponsored by MetLife Life and Annuity Company of Connecticut ("MLACC"). On that date, MLACC merged with and into the Company, and the Company became the sponsor of Separate Account Fourteen. Immediately following the merger, the Company stopped issuing Contracts under Separate Account Fourteen and now only issues Contracts under Separate Account Thirteen. When we refer to the Separate Account, we are referring to Separate Account Thirteen, except where the Contract was originally issued by MLACC, in which case, we are referring to Separate Account Fourteen. The Contract and/or certain optional benefits may not currently be available for sale in all states. For contracts issued in New York, a waiver of the withdrawal charge may apply to all Annuity Payments. CAN YOU GIVE ME A GENERAL DESCRIPTION OF THE CONTRACT? We designed the Contract for retirement savings or other long-term investment purposes. The Contract provides a death benefit as well as guaranteed payout options. You direct your payment(s) to one or more of the Variable Funding Options and/or to the Fixed Account that is part of our general account (the "Fixed Account"). We guarantee money directed to the Fixed Account as to principal and interest. The Variable Funding Options fluctuate with the investment performance of the Underlying Funds and are not guaranteed. You can also lose money in the Variable Funding Options. The Contract, like all deferred variable annuity contracts, has two phases: the accumulation phase and the payout phase (annuity period). During the accumulation phase generally, under a Qualified Contract, your pre-tax contributions accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal, presumably when you are in a lower tax bracket. During the accumulation phase, under a Non-qualified Contract, earnings on your after- tax contributions accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal. The payout phase occurs when you begin receiving payments from your Contract. The amount of money you accumulate in your Contract determines the amount of income (Annuity Payments) you receive during the payout phase. During the payout phase, you may choose one of a number of annuity options. You may receive income payments in the form of a variable annuity, a fixed annuity, or a combination of both. If you elect variable income payments, the dollar amount of your payments may increase or decrease. Once you choose one of the annuity options and begin to receive payments, it cannot be changed. WHO CAN PURCHASE THIS CONTRACT? The Contract is available for use in connection with (1) individual non-qualified purchases; (2) rollovers from Individual Retirement Annuities (IRAs); (3) rollovers from other qualified retirement plans and (4) beneficiary-directed transfers of death proceeds from another contract. Qualified Contracts include contracts qualifying under Section 401(a), 403(b), 408(b) or 408A of the Code. Purchase of this Contract through a tax qualified retirement plan ("Plan") does not provide any additional tax deferral benefits beyond those provided by the Plan. Accordingly, if you are purchasing this Contract through a Plan, you should consider purchasing this Contract for its death benefit, annuity option benefits, and other non-tax-related benefits. You may purchase the Contract with an initial payment of at least $5,000. You may make additional payments of at least $500 at any time during the accumulation phase. No additional payments are allowed if this Contract is purchased with a beneficiary-directed transfer of death proceeds. If your Contract was issued as a Qualified Contract under Section 403(b) of the Code in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax advisor prior to making additional purchase payments (if permitted) as significant adverse tax consequences may result from such additional payments. (See "Federal Tax Considerations.") The ages of the owner and Annuitant determine which death benefits and certain optional features are available to you. See "The Annuity Contract" section for more information. 5 CAN I EXCHANGE MY CURRENT ANNUITY CONTRACT FOR THIS CONTRACT? The Code generally permits you to exchange one annuity contract for another in a "tax-free exchange." Therefore, you can transfer the proceeds from another annuity contract to purchase this Contract. Before making an exchange to acquire this Contract, you should carefully compare this Contract to your current contract. You may have to pay a surrender charge under your current contract to exchange it for this Contract, and this Contract has its own surrender charges that would apply to you. The other fees and charges under this Contract may be higher or lower and the benefits may be different than those of your current contract. In addition, you may have to pay federal income or penalty taxes on the exchange if it does not qualify for tax-free treatment. You should not exchange another contract for this Contract unless you determine, after evaluating all the facts, the exchange is in your best interests. Remember that the person selling you the Contract generally will earn a commission on the sale. IS THERE A RIGHT TO RETURN PERIOD? If you cancel the Contract within ten days after you receive it, you will receive a full refund of your Contract Value plus any Contract charges and premium taxes you paid (but not fees and charges assessed by the Underlying Funds). Where state law requires a different right to return period, or the return of Purchase Payments, the Company will comply. You bear the investment risk on the Purchase Payment allocated to a Variable Funding Option during the right to return period; therefore, the Contract Value we return may be greater or less than your Purchase Payment. If you purchased your Contract as an Individual Retirement Annuity, and you return it within the first seven days after delivery, or longer if your state law permits, we will refund your full Purchase Payment. During the remainder of the right to return period, we will refund your Contract Value (including charges we assessed). We will determine your Contract Value at the close of business (generally, 4:00 p.m., Eastern Time) on the day we receive a Written Request for a refund. CAN YOU GIVE A GENERAL DESCRIPTION OF THE VARIABLE FUNDING OPTIONS AND HOW THEY OPERATE? The Variable Funding Options represent Subaccounts of the Separate Account. At your direction, the Separate Account, through its Subaccounts, uses your Purchase Payments to purchase shares of one or more of the Underlying Funds that holds securities consistent with its own investment policy. Depending on market conditions, you may make or lose money in any of these Variable Funding Options. You can transfer among the Variable Funding Options as frequently as you wish without any current tax implications. Currently there is no charge for transfers, nor a limit to the number of transfers allowed. We may, in the future, charge a fee for any transfer request, or limit the number of transfers allowed. At a minimum, we would always allow one transfer every six months. We reserve the right to restrict transfers that we determine will disadvantage other Contract Owners. You may transfer between the Fixed Account and the Variable Funding Options twice a year (during the 30 days after the six-month Contract Date anniversary), provided the amount is not greater than 15% of the Fixed Account value on that date. Where permitted by state law, we also reserve the right to restrict transfers into the Fixed Account if the credited interest rate is equal to the minimum guaranteed interest rate specified under the Contract. Amounts previously transferred from the Fixed Account to the Variable Funding Options may not be transferred back to the Fixed Account for a period of at least six months from the date of the transfer. WHAT EXPENSES WILL BE ASSESSED UNDER THE CONTRACT? The Contract has insurance features and investment features, and there are costs related to each. We deduct an administrative expense charge and a mortality and expense risk ("M&E") charge each business day from amounts you allocate to the Separate Account. We deduct the administrative expense charge at an annual rate of 0.15% and deduct the M&E charge at an annual rate of 1.40% for the Standard Death Benefit and 1.60% for the Enhanced Death Benefit. For Contracts with a value of less than $40,000, we also deduct an annual contract administrative charge of $30. Each Underlying Fund also charges for management costs and other expenses. We will apply a withdrawal charge to withdrawals from the Contract, and will calculate it as a percentage of the Purchase Payments withdrawn. The maximum percentage is 6%, decreasing to 0% after seven full years. (This includes withdrawals resulting from a request to divide the Contract Value due to divorce.) If you select the Enhanced Stepped-Up Provision ("E.S.P."), an additional 0.20% annually will be deducted each business day from amounts in the Variable Funding Options. THIS PROVISION IS NOT AVAILABLE TO A CUSTOMER WHEN EITHER THE ANNUITANT OR OWNER IS AGE 76 OR OLDER ON THE RIDER EFFECTIVE DATE. Upon annuitization, if the Variable Liquidity Benefit is selected, there is a maximum charge of 6% of the amounts withdrawn. Please refer to "Payment Options" for a description of this benefit. 6 We offer a Guaranteed Minimum Withdrawal Benefit ("GMWB") rider that you can select when you purchase the Contract. There are four different versions of the GMWB under this Contract: GMWB I, GMWB II, GMWB III and GMWB for Life. (Check with your registered representative to see which version(s) of the rider is available in your state.) If you select one of the GMWB riders, a charge will be deducted each business day from amounts allocated to the Variable Funding Options. The current charge for GMWB I, GMWB II and GMWB III, on an annual basis, is as follows: 0.40%, 0.50% and 0.25%, respectively. Your current charge will not change unless you are able to reset your benefits, at which time we may modify the charge, which will never exceed 1.00%. If you elect the GMWB for Life ("Living Income Guarantee") rider, a charge will be deducted each business day from amounts allocated to the Variable Funding Options. The charge depends on whether you purchase the Single Life Option or the Joint Life Option. The current charge, on an annual basis, is 0.65% for the Single Life Option and 0.80% for the Joint Life Option. The charge can increase but will never exceed 1.50%. This charge will continue until termination of the rider or Contract. You cannot cancel the rider, although the rider terminates under certain circumstances. (see "Termination". If you select the Guaranteed Minimum Accumulation Benefit ("GMAB"), we will deduct each business day a charge of 0.50% (on an annual basis) from amounts allocated to the Variable Funding Options. HOW WILL MY PURCHASE PAYMENTS AND WITHDRAWALS BE TAXED? Generally, the payments you make to a Qualified Contract during the accumulation phase are made with before-tax dollars. Generally, you will be taxed on your Purchase Payments and on any earnings when you make a withdrawal or begin receiving Annuity Payments. Under a Non-qualified Contract, payments to the Contract are made with after-tax dollars, and earnings will generally accumulate tax-deferred. You will be taxed on these earnings when they are withdrawn from the Contract. If you are younger than 59 1/2 when you take money out, you may be charged a 10% federal penalty tax on the amount withdrawn. For owners of Qualified Contracts, if you reach a certain age, you may be required by federal tax laws to begin receiving payments from your annuity or risk paying a penalty tax. In those cases, we can calculate and pay you the minimum required distribution amounts (see "Access to Your Money -- Systematic Withdrawals"). HOW MAY I ACCESS MY MONEY? You can take withdrawals any time during the accumulation phase. Withdrawal charges may apply, as well as income taxes, and/or a penalty tax on amounts withdrawn. WHAT IS THE DEATH BENEFIT UNDER THE CONTRACT? You may choose to purchase the Standard or Enhanced Death Benefit. The death benefit applies upon the first death of the Contract Owner, joint owner, or Annuitant. Assuming you are the Annuitant, the death benefit is as follows: If you die before the Contract is in the payout phase, the person you have chosen as your beneficiary will receive a death benefit. You may also choose to purchase the Enhanced Stepped-Up Provision, which, for a fee, may increase the amount of the death benefit. We calculate the death benefit value at the close of the business day on which our Home Office receives (1) Due Proof of Death and (2) written payment instructions or the election of spousal contract continuance or beneficiary contract continuance. Please refer to the Death Benefit section in the Prospectus for more details. WHERE MAY I FIND OUT MORE ABOUT ACCUMULATION UNIT VALUES? The Condensed Financial Information in Appendix A or Appendix B to this prospectus provides more information about Accumulation Unit values. ARE THERE ANY ADDITIONAL FEATURES? This Contract has other features you may be interested in. These include: - DOLLAR COST AVERAGING. This is a program that allows you to invest a fixed amount of money in Variable Funding Options each month, theoretically giving you a lower average cost per unit over time than a single one-time purchase. Dollar Cost Averaging requires regular investments regardless of fluctuating price levels, and does not guarantee profits or prevent losses in a declining market. Potential investors should consider their financial ability to continue purchases through periods of low price levels. - SYSTEMATIC WITHDRAWAL OPTION. Before the Maturity Date, you can arrange to have money sent to you at set intervals throughout the year. Of course, any applicable income and penalty taxes will apply on amounts withdrawn. Withdrawals in excess of the annual free withdrawal allowance may be subject to a withdrawal charge. - AUTOMATIC REBALANCING. You may elect to have the Company periodically reallocate the values in your Contract to match the rebalancing allocation selected. 7 - MANAGED DISTRIBUTION PROGRAM. This program allows us to automatically calculate and distribute to you, in November of the applicable tax year, an amount that will satisfy the Internal Revenue Service's minimum distribution requirements imposed on certain contracts once the owner reaches age 70 1/2 or retires. These minimum distributions occur during the accumulation phase. - ENHANCED STEPPED-UP PROVISION ("E.S.P."). For an additional charge, the total death benefit payable may be increased based on the earnings in your Contract. - SPOUSAL CONTRACT CONTINUANCE (SUBJECT TO AVAILABILITY). If your spouse is named as an owner and/or beneficiary, and you die prior to the Maturity Date, your spouse may elect to continue the Contract as owner rather than have the death benefit paid to the beneficiary. This feature applies to a spousal joint Contract Owner and/or beneficiary only. - BENEFICIARY CONTRACT CONTINUANCE (NOT PERMITTED FOR NON-NATURAL BENEFICIARIES). If you die before the Maturity Date, and if the value of any beneficiary's portion of the death benefit is between $20,000 and $1,000,000 as of the date of your death, that beneficiary may elect to continue his/her portion of the Contract and take required distributions over time, rather than have the death benefit paid to the beneficiary in a lump sum. - GUARANTEED MINIMUM WITHDRAWAL BENEFIT ("GMWB" OR "PRINCIPAL GUARANTEE"). For an additional charge, we will guarantee the periodic return of your investment. Under this benefit, we will pay you a percentage of your investment every year until your investment has been returned in full, regardless of market performance. Depending on when you elect to begin receiving payments and which GMWB rider you select, the maximum amount of your investment that you receive each year is 5% or 10%. When you add Purchase Payments to your Contract, we include them as part of the guarantee. In the future, however, we may discontinue including additional Purchase Payments as part of the guarantee. The guarantee is subject to restrictions on withdrawals and other restrictions. - GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE" OR "LIVING INCOME GUARANTEE"). For an additional charge, we will guarantee a fixed level of income for life after you attain a certain age as long as you do not withdraw more than a certain amount from your Contract each year. The guarantee is based on Purchase Payments received within two years of your initial purchase. Depending on when you elect to take your first withdrawal, the maximum amount of your investment that you may receive each year is 5%, 6%, or 7%. Payments are guaranteed for your life when you reach age 59 1/2 if you purchase the benefit alone (the "Single Life Option"), or guaranteed for the life of both you and your spouse (the "Joint Life Option") when both you and your spouse reach age 65 if you purchase the benefit with your spouse. The base guarantee increases each year automatically on your anniversary if your Contract Value is greater than the base guarantee. The guarantee is subject to restrictions on withdrawals, and you are required to remain invested in a limited number of specified Variable Funding Options. Currently, you may elect the GMWB for Life rider only at the time of your initial purchase of the Contract, and once you purchase the GMWB for Life rider, you cannot cancel it. Guaranteed withdrawals are also available before the qualifying age, however these payments are not guaranteed for life. There is also a guaranteed lump sum feature available after ten years in lieu of guaranteed periodic payments. - GUARANTEED MINIMUM ACCUMULATION BENEFIT ("GMAB" OR "ACCUMULATION ADVANTAGE"). For an additional charge, we will guarantee that your Contract Value will not be less than a minimum amount at the end of a specified number of years. The guaranteed amount is based on your Purchase Payments, including additional Purchase Payments you make within 12 months of electing the rider. Additional Purchase Payments made more than 12 months after you elect the rider will not increase the guaranteed amount. If your Contract Value is less than the minimum guaranteed amount on the Rider Maturity Date, we will apply additional amounts to increase your Contract Value so that it is equal to the guaranteed amount. 8 FEE TABLE - -------------------------------------------------------------------------------- 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, surrender the Contract, or transfer Contract Value between Variable Funding Options. Expenses shown do not include premium taxes, which may be applicable. CONTRACT OWNER TRANSACTION EXPENSES WITHDRAWAL CHARGE....................................... 6%(1) (as a percentage of the Purchase Payments withdrawn)
TRANSFER CHARGE......................................... $10(2) (assessed on transfers that exceed 12 per year)
VARIABLE LIQUIDITY BENEFIT CHARGE....................... 6%(3) (As a percentage of the present value of the remaining Annuity Payments that are surrendered. The interest rate used to calculate this present value is 1% higher than the Assumed (Daily) Net Investment Factor used to calculate the Annuity Payments.)
The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Underlying Fund fees and expenses. CONTRACT ADMINISTRATIVE CHARGES ANNUAL CONTRACT ADMINISTRATIVE CHARGE................... $30(4)
- --------- (1) The withdrawal charge declines to zero after the Purchase Payment has been in the Contract for seven years. The charge is as follows:
YEARS SINCE PURCHASE PAYMENT MADE - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 years+ 0%
(2) We do not currently assess the transfer charge. (3) This withdrawal charge only applies when you surrender the Contract after beginning to receive Annuity Payments. The Variable Liquidity Benefit Charge declines to zero after seven years. The charge is as follows:
YEARS SINCE INITIAL PURCHASE PAYMENT - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 years+ 0%
(4) We do not assess this charge if Contract Value is $40,000 or more on the fourth Friday of each August. 9 ANNUAL SEPARATE ACCOUNT CHARGES (as a percentage of the average daily net assets of the Separate Account) We will assess a minimum mortality and expense ("M & E") risk charge of 1.40% and an administrative expense charge of 0.15% on all Contracts. In addition, for optional features, there is a 0.20% charge for E.S.P., a 0.50% charge for GMAB, a 0.40% current charge (maximum of 1.00% upon reset) for GMWB I, a 0.50% current charge (maximum of 1.00% upon reset) for GMWB II, a 0.25% charge for GMWB III, a 0.65% current charge (maximum of 1.50% upon reset) for GMWB for Life (Single Life Option), and a 0.80% current charge (maximum of 1.50% upon reset) for GMWB for Life (Joint Life Option). Below is a summary of all of the maximum charges that may apply, depending on the death benefit and optional features you select:
STANDARD DEATH BENEFIT ENHANCED DEATH BENEFIT ---------------------- ---------------------- Mortality and Expense Risk Charge*..................... 1.40% 1.60% Administrative Expense Charge.......................... 0.15% 0.15% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH NO OPTIONAL FEATURES SELECTED.................................... 1.55% 1.75% Optional E.S.P. Charge................................. 0.20% 0.20% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. ONLY SELECTED............................................. 1.75% 1.95% Optional GMAB Charge................................... 0.50% 0.50% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMAB ONLY SELECTED............................................. 2.05% 2.25% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMAB SELECTED((5))................................... 2.25% 2.45% Optional GMWB I Charge (maximum upon reset)............ 1.00%(6) 1.00%(6) Optional GMWB II Charge (maximum upon reset)........... 1.00%(6) 1.00%(6) Optional GMWB III Charge............................... 0.25% 0.25% Optional GMWB for Life (Single Life Option) Charge (maximum upon reset)................................. 1.50%(6) 1.50%(6) Optional GMWB for Life (Joint Life Option) Charge (maximum upon reset)................................. 1.50%(6) 1.50%(6) TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB I ONLY SELECTED............................................. 2.55% 2.75% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB II ONLY SELECTED............................................. 2.55% 2.75% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB III ONLY SELECTED........................................ 1.80% 2.00% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB FOR LIFE (SINGLE LIFE OPTION) ONLY SELECTED.............. 3.05% 3.25% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB FOR LIFE (JOINT LIFE OPTION) ONLY SELECTED............... 3.05% 3.25% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB I SELECTED...................................... 2.75% 2.95% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB II SELECTED..................................... 2.75% 2.95% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB III SELECTED.................................... 2.00% 2.20% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB FOR LIFE (SINGLE LIFE OPTION) SELECTED.......... 3.25% 3.45% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB FOR LIFE (JOINT LIFE OPTION) SELECTED........... 3.25% 3.45%
- --------- * We will waive the following amounts of the Mortality and Expense Risk Charge: an amount, if any, equal to the underlying fund expenses that are in excess of 1.16% for the Subaccount investing in the Met/AIM Capital Appreciation Portfolio -- Class E; an amount, if any, equal to the underlying fund expenses that are in excess of 1.13% for the Subaccount investing in MFS(R) Research International Portfolio -- Class B, and an amount, if any, equal to the underlying fund expenses that are in excess of 0.90% for the Subaccount investing in Oppenheimer Global Equity Portfolio -- Class B. 10 (5) GMAB and GMWB cannot both be elected. (6) The current charges for the available GMWB riders with a reset feature (see "Living Benefits") are as follows:
- ------------------------------------------------------------------------------------------- GMWB RIDER CURRENT CHARGE - ------------------------------------------------------------------------------------------- GMWB I 0.40% - ------------------------------------------------------------------------------------------- GMWB II 0.50% - ------------------------------------------------------------------------------------------- GMWB for Life (Single Life Option) 0.65% - ------------------------------------------------------------------------------------------- GMWB for Life (Joint Life Option) 0.80% - -------------------------------------------------------------------------------------------
UNDERLYING FUND EXPENSES AS OF DECEMBER 31, 2007 (UNLESS OTHERWISE INDICATED): The first table below shows the range (minimum and maximum) of the total annual operating expenses charged by all of the Underlying Funds, before any voluntary or contractual fee waivers and/or expense reimbursements. The second table shows each Underlying Fund's management fee, distribution and/or service (12b-1) fees if applicable, and other expenses. The Underlying Funds provided this information and we have not independently verified it. More detail concerning each Underlying Fund's fees and expenses is contained in the prospectus for each Underlying Fund. Current prospectuses for the Underlying Funds can be obtained by calling 866-547-3793. MINIMUM AND MAXIMUM TOTAL ANNUAL UNDERLYING FUND OPERATING EXPENSES
MINIMUM MAXIMUM ------- ------- TOTAL ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Underlying Fund assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) 0.40% 1.90%
UNDERLYING FUND FEES AND EXPENSES (as a percentage of average daily net assets)
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Franklin Rising Dividends Securities Fund............. 0.58% 0.25% 0.02% 0.01% 0.86% 0.01% 0.85%(1) Franklin Small-Mid Cap Growth Securities Fund............. 0.47% 0.25% 0.28% 0.01% 1.01% 0.01% 1.00%(1) Templeton Foreign Securities Fund........................ 0.63% 0.25% 0.14% 0.02% 1.04% 0.02% 1.02%(1) LEGG MASON PARTNERS VARIABLE EQUITY TRUST Legg Mason Partners Variable Aggressive Growth Portfolio -- Class II++..... 0.75% 0.25% 0.15% -- 1.15% -- 1.15%(2) Legg Mason Partners Variable Capital and Income Portfolio -- Class II....... 0.75% 0.25% 0.13% -- 1.13% -- 1.13% Legg Mason Partners Variable Fundamental Value Portfolio -- Class I........ 0.75% -- 0.08% -- 0.83% -- 0.83%(2) MET INVESTORS SERIES TRUST Lazard Mid Cap Portfolio -- Class B........ 0.69% 0.25% 0.06% -- 1.00% -- 1.00% Met/AIM Capital Appreciation Portfolio -- Class E........ 0.76% 0.15% 0.10% -- 1.01% -- 1.01% MFS(R) Research International Portfolio -- Class B........ 0.70% 0.25% 0.09% -- 1.04% -- 1.04% Oppenheimer Capital Appreciation Portfolio -- Class B........ 0.58% 0.25% 0.06% -- 0.89% -- 0.89%
11
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- METROPOLITAN SERIES FUND, INC. BlackRock Money Market Portfolio -- Class A........ 0.33% -- 0.07% -- 0.40% 0.01% 0.39%(3) MFS(R) Total Return Portfolio -- Class B........ 0.53% 0.25% 0.05% -- 0.83% -- 0.83% Oppenheimer Global Equity Portfolio -- Class B........ 0.51% 0.25% 0.10% -- 0.86% -- 0.86% PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio..... 0.50% 0.25% 0.28% -- 1.03% 0.16% 0.87%(4) Pioneer Cullen Value VCT Portfolio................... 0.70% 0.25% 0.37% -- 1.32% 0.32% 1.00%(5) Pioneer Emerging Markets VCT Portfolio................... 1.15% 0.25% 0.24% -- 1.64% -- 1.64% Pioneer Equity Income VCT Portfolio................... 0.65% 0.25% 0.05% -- 0.95% -- 0.95% Pioneer Fund VCT Portfolio..... 0.65% 0.25% 0.05% -- 0.95% -- 0.95% Pioneer Global High Yield VCT Portfolio................... 0.65% 0.25% 0.48% -- 1.38% 0.38% 1.00%(6) Pioneer High Yield VCT Portfolio................... 0.65% 0.25% 0.10% -- 1.00% -- 1.00% Pioneer Ibbotson Aggressive Allocation VCT Portfolio.... 0.17% 0.25% 0.60% 0.88% 1.90% 0.47% 1.43%(7) Pioneer Ibbotson Growth Allocation VCT Portfolio.... 0.17% 0.25% 0.10% 0.82% 1.34% 0.14% 1.20%(8) Pioneer Ibbotson Moderate Allocation VCT Portfolio.... 0.17% 0.25% 0.14% 0.77% 1.33% 0.17% 1.16%(9) Pioneer Independence VCT Portfolio................... 0.70% 0.25% 0.32% -- 1.27% -- 1.27% Pioneer International Value VCT Portfolio................... 0.85% 0.25% 0.32% -- 1.42% -- 1.42% Pioneer Mid Cap Value VCT Portfolio................... 0.65% 0.25% 0.06% -- 0.96% -- 0.96% Pioneer Oak Ridge Large Cap Growth VCT Portfolio........ 0.75% 0.25% 0.29% -- 1.29% 0.34% 0.95%(10) Pioneer Real Estate Shares VCT Portfolio................... 0.80% 0.25% 0.11% -- 1.16% -- 1.16% Pioneer Small Cap Value VCT Portfolio................... 0.75% 0.25% 0.15% 0.05% 1.20% -- 1.20% Pioneer Strategic Income VCT Portfolio................... 0.65% 0.25% 0.18% -- 1.08% -- 1.08%
- --------- * Acquired Fund Fees and Expenses are fees and expenses incurred indirectly by a portfolio as a result of investing in shares of one or more underlying portfolios. ** Net Total Annual Operating Expenses do not reflect: (1) voluntary waivers of fees or expenses; (2) contractual waivers that are in effect for less than one year from the date of this Prospectus; or (3) expense reductions resulting from custodial fee credits or directed brokerage arrangements. ++ Fees and expenses of this Portfolio are based on the Portfolio's fiscal year ended October 31, 2007. (1) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the Sweep Money Fund which is the "acquired fund" in this case) 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. (2) Other Expenses have been revised to reflect the estimated effect of additional prospectus and shareholder report printing and mailing expenses expected to be incurred by the fund going forward. (3) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to the annual rate of 0.345% for the first $500 million of the Portfolio's average daily net assets and 0.335% for the next $500 million. (4) The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other ordinary operating expenses to the extent required to reduce Class I expenses to 0.62% of average daily net assets, and to waive fees or limit other expenses of the Class II shares to effect a like reduction in Class II expenses. (5) The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other ordinary operating expenses to the extent required to reduce Class II expenses, other than acquired fund fees and expenses, to 1.00% of average daily net assets. (6) The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other ordinary operating expenses to the extent required to reduce Class II expenses to 1.00% of average daily net assets. (7) The Portfolio is a "fund of funds" that invests in other underlying Pioneer portfolios. As an investor in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios, including the management fee. The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a 12 portion of its management fee and, if necessary, to limit other direct operating expenses to the extent required to reduce Class II expenses, other than acquired fund fees and expenses, to 0.55% of average daily net assets. (8) The Portfolio is a "fund of funds" that invests in other underlying Pioneer portfolios. As an investor in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios, including the management fee. The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other direct operating expenses to the extent required to reduce Class II expenses, other than acquired fund fees and expenses, to 0.38% of average daily net assets. (9) The Portfolio is a "fund of funds" that invests in other underlying Pioneer portfolios. As an investor in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios, including the management fee. The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other direct operating expenses to the extent required to reduce Class II expenses, other than acquired fund fees and expenses, to 0.39% of average daily net assets. (10) The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other ordinary operating expenses to the extent required to reduce Class II expenses to 0.95% of average daily net assets. EXAMPLE The example is 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 Contract Owner transaction expenses, Contract fees, separate account annual expenses, and Underlying Fund total annual operating expenses. The example does not represent past or future expenses. Your actual expenses may be more or less than those shown. The example assumes that you invest $10,000 in the Contract for the time periods indicated and that your investment has a 5% return each year. The example reflects the annual Contract administrative charge, factoring in that the charge is waived for contracts over a certain value. Additionally, the example is based on the minimum and maximum Underlying Fund total annual operating expenses shown above, and does not reflect any Underlying Fund fee waivers and/or expense reimbursements. The example assumes you have allocated all of your Contract Value to either the Underlying Fund with the maximum total annual operating expenses or the Underlying Fund with the minimum total annual operating expenses. Your actual expenses will be less than those shown if you do not elect all of the optional benefits. The GMAB and the GMWB cannot both be elected. EXAMPLE -- This example assumes that you have elected the most expensive death benefit option, the E.S.P. optional death benefit, and the Guaranteed Minimum Withdrawal Benefit for Life rider (assuming the maximum 1.50% charge applies in all Contract Years).
IF CONTRACT IS SURRENDERED AT THE IF CONTRACT IS NOT SURRENDERED OR END OF PERIOD SHOWN: ANNUITIZED AT THE END OF PERIOD SHOWN: ---------------------------------------------- ---------------------------------------------- FUNDING OPTION 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS - -------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Underlying Fund with Maximum Total Annual Operating Expenses......... $1,140 $2,065 $3,042 $5,314 $540 $1,615 $2,682 $5,314 Underlying Fund with Minimum Total Annual Operating Expenses......... $991 $1,632 $2,343 $4,034 $391 $1,182 $1,983 $4,034
CONDENSED FINANCIAL INFORMATION - -------------------------------------------------------------------------------- See Appendices A and B. THE ANNUITY CONTRACT - -------------------------------------------------------------------------------- Pioneer AnnuiStar Variable Annuity is a contract between the Contract Owner ("you") and the Company. This is the prospectus -- it is not the Contract. The prospectus highlights many Contract provisions to focus your attention on the Contract's essential features. Your rights and obligations under the Contract will be determined by the language of the Contract itself. When you receive your Contract, we suggest you read it promptly and carefully. There may be 13 differences in your Contract from the descriptions in this prospectus because of the requirements of the state where we issued your Contract. We will include any such differences in your Contract. The Company offers several different annuities that your investment professional may be authorized to offer to you. Each annuity offers different features and benefits that may be appropriate for you. In particular, the annuities differ based on variations in the standard and optional death benefit protection provided for your beneficiaries, the availability of optional living benefits, the ability to access your Contract Value if necessary and the charges that you will be subject to if you make a withdrawal or surrender the annuity. The separate account charges and other charges may be different between each annuity we offer. Optional death benefits and living benefits are subject to a separate charge for the additional protections they offer to you and your beneficiaries. Furthermore, annuities that offer greater flexibility to access your Contract Value generally are subject to higher separate account charges than annuities that deduct charges if you make a withdrawal or surrender. We encourage you to evaluate the fees, expenses, benefits and features of this annuity against those of other investment products, including other annuity products offered by us and other insurance companies. Before purchasing this or any other investment product you should consider whether the product you purchase is consistent with your risk tolerance, investment objectives, investment time horizon, financial and tax situation, liquidity needs and how you intend to use the annuity. You make Purchase Payments to us and we credit them to your Contract. We promise to pay you an income, in the form of Annuity Payments, beginning on a future date that you choose, the Maturity Date. The Purchase Payments accumulate tax deferred in the funding options of your choice. We offer multiple Variable Funding Options. We may also offer a Fixed Account option. Where permitted by state law, we also reserve the right to restrict allocation of Purchase Payments to the Fixed Account if the credited interest rate is equal to the minimum guaranteed interest rate specified under the Contract. The Contract Owner assumes the risk of gain or loss according to the performance of the Variable Funding Options. The Contract Value is the amount of Purchase Payments, plus or minus any investment experience on the amounts you allocate to the Separate Account ("Separate Account Contract Value") or interest on the amounts you allocate to the Fixed Account ("Fixed Account Contract Value"). The Contract Value also reflects all withdrawals made and charges deducted. There is generally no guarantee that at the Maturity Date the Contract Value will equal or exceed the total Purchase Payments made under the Contract. The date the Contract and its benefits become effective is referred to as the Contract Date. Each 12-month period following the Contract Date is called a Contract Year. Certain changes and elections must be made in writing to the Company. Where the term "Written Request" is used, it means that you must send written information to our Home Office in a form and content satisfactory to us. The Contract is not available for purchase if the proposed owner or Annuitant is age 81 or older. The ages of the owner and Annuitant determine which death benefits and certain optional features are available to you.
MAXIMUM AGE BASED ON THE OLDER OF THE OWNER AND DEATH BENEFIT/OPTIONAL FEATURE ANNUITANT ON THE CONTRACT/RIDER DATE - ------------------------------------------------------ ----------------------------------------------- Standard Death Benefit 80 Enhanced Death Benefit 75 Enhanced Stepped-Up Provision (E.S.P.) 75
Since optional death benefits carry higher charges, you should consider the ages of the owner and Annuitant when electing these benefits, as the additional value provided by the benefit may be significantly reduced or eliminated depending on the ages of the owner and Annuitant at the time of election. Purchase of this Contract through a tax qualified retirement plan or IRA does not provide any additional tax deferral benefits beyond those provided by the plan or the IRA. Accordingly, if you are purchasing this Contract through a plan or IRA, you should consider purchasing this Contract for its death benefit, annuity option benefits, and other non-tax-related benefits. You should consult with your tax adviser to determine if this Contract is appropriate for you. CONTRACT OWNER INQUIRIES Any questions you have about your Contract should be directed to our Home Office at 866-547-3793. 14 PURCHASE PAYMENTS Your initial Purchase Payment is due and payable before the Contract becomes effective. The initial Purchase Payment must be at least $5,000. You may make additional payments of at least $500 at any time. No additional Purchase Payments are allowed if this Contract is purchased with a beneficiary-directed transfer of death benefit proceeds. Under certain circumstances, we may waive the minimum Purchase Payment requirement. Initial Purchase Payments plus the total of any subsequent Purchase Payments may total more than $1,000,000 only with our prior consent. Where permitted by state law, we may restrict Purchase Payments into the Fixed Account whenever the current credited interest rate for the Fixed Account is equal to the minimum guaranteed rate specified in your Contract. Purchase Payments may be made at any time while the Annuitant is alive and before the date Annuity Payments begin. We accept Purchase Payments made by check or cashier's check. We do not accept cash, money orders or traveler's checks. We reserve the right to refuse Purchase Payments made via a personal check in excess of $100,000. Purchase Payments over $100,000 may be accepted in other forms, including but not limited to, EFT/wire transfers, certified checks, corporate checks, and checks written on financial institutions. The form in which we receive a Purchase Payment may determine how soon subsequent disbursement requests may be fulfilled. (See "Access To Your Money.") We will apply the initial Purchase Payment less any applicable premium tax within two business days after we receive it at our Home Office with a properly completed application or order request. If your request or other information accompanying the initial Purchase Payment is incomplete when received, we will hold the Purchase Payment for up to five business days. If we cannot obtain the necessary information within five business days, we will return the Purchase Payment in full, unless you specifically consent for us to keep it until you provide the necessary information. We will credit any subsequent Purchase Payment to a Contract on the same business day we receive it, if it is received in good order by our Home Office by 4:00 p.m. Eastern time. A business day is any day that the New York Stock Exchange is open for regular trading (except when trading is restricted due to an emergency as defined by the Securities and Exchange Commission). IF YOU SEND YOUR PURCHASE PAYMENTS OR TRANSACTION REQUESTS TO AN ADDRESS OTHER THAN THE ONE WE HAVE DESIGNATED FOR RECEIPT OF SUCH PURCHASE PAYMENTS OR REQUESTS, WE MAY RETURN THE PURCHASE PAYMENT TO YOU, OR THERE MAY BE A DELAY IN APPLYING THE PURCHASE PAYMENT OR TRANSACTION TO YOUR CONTRACT. QUALIFIED CONTRACTS UNDER SECTION 403(B). If your Contract was issued as a Qualified Contract under Section 403(b) of the Code (also called a "tax sheltered annuity" or "TSA") in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax advisor prior to making additional purchase payments. Such additional payments may have significant adverse tax consequences. (See "Federal Tax Consequences.") ACCUMULATION UNITS The period between the Contract Date and the Maturity Date is the accumulation period. During the accumulation period, an Accumulation Unit is used to calculate the value of a Contract. Each Variable Funding Option has a corresponding Accumulation Unit value. The Accumulation Units are valued each business day and their values may increase or decrease from day to day. The daily change in value of an Accumulation Unit each day is based on the investment performance of the corresponding Underlying Fund, and the deduction of separate account charges shown in the Fee Table in this prospectus. The number of Accumulation Units we will credit to your Contract once we receive a Purchase Payment or transfer request (or, liquidate for a withdrawal request) is determined by dividing the amount directed to each Variable Funding Option (or, taken from each Variable Funding Option) by the value of its Accumulation Unit. Normally, we calculate the value of an Accumulation Unit for each Variable Funding Option as of the close of regular trading (generally 4:00 p.m. Eastern time) each day the New York Stock Exchange is open. After the value is calculated, we credit your Contract. During the annuity period (i.e., after the Maturity Date), you are credited with Annuity Units. 15 THE VARIABLE FUNDING OPTIONS You choose the Variable Funding Options to which you allocate your Purchase Payments. From time to time we may make new Variable Funding Options available. These Variable Funding Options are Subaccounts of the Separate Account. The Subaccounts invest in the Underlying Funds. You are not investing directly in the Underlying Fund. Each Underlying Fund is a portfolio of an open-end management investment company that is registered with the SEC under the Investment Company Act of 1940. These Underlying Funds are not publicly traded and are only offered through variable annuity contracts, variable life insurance policies, and in some instances, certain retirement plans. They are not the same as the retail mutual funds offered outside of a variable annuity or variable life insurance product, although the investment practices and fund names may be similar and the portfolio managers may be identical. Accordingly, the performance of the retail mutual fund is likely to be different from that of the Underlying Fund. We select the Underlying Funds offered through this Contract based on a number of criteria, including asset class coverage, the strength of the adviser's or subadviser's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we consider during the selection process is whether the Underlying Fund's adviser or subadviser is one of our affiliates or whether the Underlying Fund, its adviser, its subadviser(s), or an affiliate will make payments to us or our affiliates. In this regard, the profit distributions we receive from our affiliated investment advisers are a component of the total revenue that we consider in configuring the features and investment choices available in the variable insurance products that we and our affiliated insurance companies issue. Since we and our affiliated insurance companies may benefit more from the allocation of assets to portfolios advised by our affiliates than those that are not, we may be more inclined to offer portfolios advised by our affiliates in the variable insurance products we issue. For additional information on these arrangements, see "Payments We Receive." We review the Underlying Funds periodically and may remove an Underlying Fund or limit its availability to new Purchase Payments and/or transfers of Contract Value if we determine that the Underlying Fund no longer meets one or more of the selection criteria, and/or if the Underlying Fund has not attracted significant allocations from Contract Owners. In some cases, we have included Underlying Funds based on recommendations made by broker-dealer firms. These broker-dealer firms may receive payments from the Underlying Funds they recommend and may benefit accordingly from the allocation of Contract Value to such Underlying Funds. When the Company develops a variable product in cooperation with a fund family or distributor (e.g. a "private label" product) the Company will generally include Underlying Funds based on recommendations made by the fund family or distributor, whose selection criteria may differ from the Company's selection criteria. WE DO NOT PROVIDE ANY INVESTMENT ADVICE AND DO NOT RECOMMEND OR ENDORSE ANY PARTICULAR UNDERLYING FUND. YOU BEAR THE RISK OF ANY DECLINE IN YOUR CONTRACT VALUE RESULTING FROM THE PERFORMANCE OF THE UNDERLYING FUNDS YOU HAVE CHOSEN. If investment in the Underlying Funds or a particular Underlying Fund is no longer possible, in our judgment becomes inappropriate for purposes of the Contract, or for any other reason in our sole discretion, we may substitute another Underlying Fund or Underlying Funds without your consent. The substituted Underlying Fund may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Purchase Payments, or both. However, we will not make such substitution without any necessary approval of the Securities and Exchange Commission and applicable state insurance departments. Furthermore, we may close Underlying Funds to allocations of Purchase Payments or Contract Value, or both, at any time in our sole discretion. In certain circumstances, the Company's ability to remove or replace an Underlying Fund may be limited by the terms of a five-year agreement between MetLife, Inc. (MetLife) and Legg Mason, Inc. (Legg Mason) relating to the use of certain Underlying Funds advised by Legg Mason affiliates. The agreement sets forth the conditions under which the Company can remove an Underlying Fund, which, in some cases, may differ from the Company's own selection criteria. In addition, during the term of the agreement, subject to the Company's fiduciary and other legal duties, the Company is generally obligated in the first instance to consider Underlying Funds advised by Legg Mason affiliates in seeking to make a substitution for an Underlying Fund advised by a Legg Mason affiliate. The agreement was originally entered into on July 1, 2005 by MetLife and certain affiliates of Citigroup Inc. (Citigroup) as part of MetLife's acquisition of The Travelers Insurance Company and The Travelers Life and Annuity Company (both of which are now MetLife Insurance Company of Connecticut) from Citigroup. Legg Mason replaced the Citigroup affiliates as a party to the agreement when Citigroup sold its asset management business to Legg Mason. The agreement also obligates Legg Mason to continue making payments to the Company with respect to Underlying 16 Funds advised by Legg Mason affiliates, on the same terms provided for in administrative services agreements between Citigroup's asset management affiliates and the Travelers insurance companies that predate the acquisition. PAYMENTS WE RECEIVE. As described above, an investment adviser (other than our affiliates MetLife Advisers, LLC, and Met Investors Advisory LLC) or subadviser of an Underlying Fund, or its affiliates, may make payments to the Company and/or certain of its affiliates. These payments may be used for a variety of purposes, including payment of expenses for certain administrative, marketing and support services with respect to the Contracts, and, in the Company's role as an intermediary, with respect to the Underlying Funds. The Company and its affiliates may profit from these payments. These payments may be derived, in whole or in part, from the advisory fee deducted from Underlying Fund assets. Contract Owners, through their indirect investment in the Underlying Funds, bear the costs of these advisory fees (see the Underlying Funds' prospectuses for more information). The amount of the payments we receive is based on a percentage of assets of the Underlying Funds attributable to the Contracts and certain other variable insurance products that the Company and its affiliates issue. These percentages differ and some advisers or subadvisers (or other affiliates) may pay the Company more than others. These percentages currently range up to 0.50%. Additionally, an investment adviser or subadviser of an Underlying Fund or its affiliates may provide the Company with wholesaling services that assist in the distribution of the Contracts and may pay the Company and/or certain of its affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the adviser or subadviser (or their affiliate) with increased access to persons involved in the distribution of the Contracts. The Company and/or certain of its affiliated insurance companies have joint ownership interests in its affiliated investment advisers MetLife Advisers, LLC and Met Investors Advisory LLC, which are formed as "limited liability companies." The Company's ownership interests in MetLife Advisers, LLC and Met Investors Advisory LLC entitle us to profit distributions if the adviser makes a profit with respect to the advisory fees it receives from the Underlying Fund. The Company will benefit accordingly from assets allocated to the Underlying Funds to the extent they result in profits to the advisers. (See "Fee Table -- Underlying Fund Fees and Expenses" for information on the management fees paid by the Underlying Funds and the Statement of Additional Information for the Underlying Funds for information on the management fees paid by the advisers to the subadvisers.) Certain Underlying Funds have adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act of 1940. An Underlying Fund's 12b-1 Plan, if any, is described in more detail in the Underlying Fund's prospectus. (See "Fee Table -- Underlying Fund Fees and Expenses" and "Other Information -- Distribution of Variable Annuity Contracts.") Any payments we receive pursuant to those 12b-1 Plans are paid to us or our distributor, MetLife Investors Distribution Company. Payments under an Underlying Fund's 12b-1 Plan decrease the Underlying Fund's investment return. Each Underlying Fund has different investment objectives and risks. The Underlying Fund prospectuses contain more detailed information on each Underlying Fund's investment strategy, investment advisers and its fees. You may obtain an Underlying Fund prospectus by calling 866-547-3793 or through your registered representative. We do not guarantee the investment results of the Underlying Funds. The current Underlying Funds are listed below, along with their investment advisers and any subadviser:
FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Franklin Rising Dividends Seeks long-term capital Franklin Advisory Services, LLC Securities Fund appreciation, with preservation of capital as an important consideration. Franklin Small-Mid Cap Growth Seeks long-term capital growth. Franklin Advisers, Inc. Securities Fund Templeton Foreign Securities Fund Seeks long-term capital growth. Templeton Investment Counsel, LLC Subadviser: Franklin Templeton Investment Management Limited
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- LEGG MASON PARTNERS VARIABLE EQUITY TRUST Legg Mason Partners Variable Seeks capital appreciation. Legg Mason Partners Fund Advisor, Aggressive Growth LLC Portfolio -- Class II Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks total return (that is, a Legg Mason Partners Fund Advisor, Capital and Income combination of income and long- LLC Portfolio -- Class II term capital appreciation). Subadvisers: Western Asset Management Company; ClearBridge Advisors, LLC; Western Asset Management Company Limited Legg Mason Partners Variable Seeks long-term capital growth. Legg Mason Partners Fund Advisor, Fundamental Value Current income is a secondary LLC Portfolio -- Class I consideration. Subadviser: ClearBridge Advisors, LLC MET INVESTORS SERIES TRUST Lazard Mid Cap Portfolio -- Class Seeks long-term growth of Met Investors Advisory, LLC B capital. Subadviser: Lazard Asset Management LLC Met/AIM Capital Appreciation Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class E Subadviser: Invesco Aim Capital Management, Inc. MFS(R) Research International Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class B Subadviser: Massachusetts Financial Services Company Oppenheimer Capital Appreciation Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class B Subadviser: OppenheimerFunds, Inc. METROPOLITAN SERIES FUND, INC. BlackRock Money Market Seeks a high level of current MetLife Advisers, LLC Portfolio -- Class A income consistent with Subadviser: BlackRock Advisors, preservation of capital. LLC MFS(R) Total Return Seeks a favorable total return MetLife Advisers, LLC Portfolio -- Class B through investment in a Subadviser: Massachusetts diversified portfolio. Financial Services Company Oppenheimer Global Equity Seeks capital appreciation. MetLife Advisers, LLC Portfolio -- Class B Subadviser: OppenheimerFunds, Inc. PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio Seeks to provide current income Pioneer Investment Management, from an investment grade Inc. portfolio with due regard to preservation of capital and prudent investment risk. Pioneer Cullen Value VCT Seeks capital appreciation, with Pioneer Investment Management, Portfolio current income as a secondary Inc. objective. Subadviser: Cullen Capital Management, Inc. Pioneer Emerging Markets VCT Seeks long-term growth of Pioneer Investment Management, Portfolio capital. Inc.
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- Pioneer Equity Income VCT Seeks current income and long- Pioneer Investment Management, Portfolio term growth of capital from a Inc. portfolio consisting primarily of income producing equity securities of U.S. corporations. Pioneer Fund VCT Portfolio Seeks reasonable income and Pioneer Investment Management, capital growth. Inc. Pioneer Global High Yield VCT Seeks to maximize total return Pioneer Investment Management, Portfolio through a combination of income Inc. and capital appreciation. Pioneer High Yield VCT Portfolio Seeks to maximize total return Pioneer Investment Management, through a combination of income Inc. and capital appreciation. Pioneer Ibbotson Aggressive Seeks long-term capital growth. Pioneer Investment Management, Allocation VCT Portfolio Inc. Subadviser: Ibbotson Associates, LLC Pioneer Ibbotson Growth Seeks long-term capital growth Pioneer Investment Management, Allocation VCT Portfolio and current income. Inc. Subadviser: Ibbotson Associates, LLC Pioneer Ibbotson Moderate Seeks long-term capital growth Pioneer Investment Management, Allocation VCT Portfolio and current income. Inc. Subadviser: Ibbotson Associates, LLC Pioneer Independence VCT Seeks appreciation of capital. Pioneer Investment Management, Portfolio Inc. Pioneer International Value VCT Seeks long-term capital growth. Pioneer Investment Management, Portfolio Inc. Pioneer Mid Cap Value VCT Seeks capital appreciation by Pioneer Investment Management, Portfolio investing in a diversified Inc. portfolio of securities consisting primarily of common stocks. Pioneer Oak Ridge Large Cap Seeks capital appreciation. Pioneer Investment Management, Growth VCT Portfolio Inc. Subadviser: Oak Ridge Investments, LLC Pioneer Real Estate Shares VCT Seeks long-term growth of Pioneer Investment Management, Portfolio capital. Current income is the Inc. portfolio's secondary investment Subadviser: AEW Management and objective. Advisors, L.P. Pioneer Small Cap Value VCT Seeks capital growth by investing Pioneer Investment Management, Portfolio in a diversified portfolio of Inc. securities consisting primarily of common stocks. Pioneer Strategic Income VCT Seeks a high level of current Pioneer Investment Management, Portfolio income. Inc.
Certain Variable Funding Options may have been subject to a merger, substitution or other change. Please see "Appendix C -- Additional Information Regarding Underlying Funds." FIXED ACCOUNT - -------------------------------------------------------------------------------- We may offer our Fixed Account as a funding option. Please refer to your Contract and Appendix D for more information. 19 CHARGES AND DEDUCTIONS - -------------------------------------------------------------------------------- GENERAL We deduct the charges described below. The charges are for the services and benefits we provide, costs and expenses we incur, and risks we assume under the Contracts. Services and benefits we provide include: - the ability for you to make withdrawals and surrenders under the Contracts - the death benefit paid on the death of the Contract Owner, Annuitant, or first of the joint owners - the available funding options and related programs (including dollar cost averaging, portfolio rebalancing, and systematic withdrawal programs) - administration of the annuity options available under the Contracts - the distribution of various reports to Contract Owners Costs and expenses we incur include: - losses associated with various overhead and other expenses associated with providing the services and benefits provided by the Contracts - sales and marketing expenses including commission payments to your registered representative - other costs of doing business Risks we assume include: - that Annuitants may live longer than estimated when the annuity factors under the Contracts were established - that the amount of the death benefit will be greater than the Contract Value - that the costs of providing the services and benefits under the Contracts will exceed the charges deducted We may also deduct a charge for taxes. Unless otherwise specified, charges are deducted proportionately from all funding options in which you are invested. The amount of a charge may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designated charge. For example, the withdrawal charge we collect may not fully cover all of the sales and distribution expenses we actually incur. We may also profit on one or more of the charges. We may use any such profits for any corporate purpose, including the payment of sales expenses. WITHDRAWAL CHARGE We do not deduct a sales charge from Purchase Payments when they are made to the Contract. However, a withdrawal charge will apply if Purchase Payments are withdrawn before they have been in the Contract for seven years. (This includes withdrawals resulting from a request to divide the Contract Value due to divorce.) We will assess the charge as a percentage of the Purchase Payment withdrawn as follows:
YEARS SINCE PURCHASE PAYMENT MADE - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 + years 0%
20 For purposes of the withdrawal charge calculation, withdrawals are deemed to be taken first from: (a) any Purchase Payment to which no withdrawal charge applies, then (b) any remaining free withdrawal allowance (as described below) (after being reduced by (a)), then (c) any remaining Purchase Payment to which a withdrawal charge applies (on a first-in, first-out basis), then (d) any Contract earnings Unless you instruct us otherwise, we will deduct the withdrawal charge from the amount requested. We will not deduct a withdrawal charge if Purchase Payments are distributed: - due to the death of the Contract Owner or the Annuitant (with no Contingent Annuitant surviving) - in the form of lifetime Annuity Payments or Annuity Payments for a fixed period of at least five years - under the Managed Distribution Program - under the Nursing Home Confinement provision (as described in Appendix E) FREE WITHDRAWAL ALLOWANCE Beginning in the second Contract Year, you may withdraw up to 10% of the Contract Value annually, without a withdrawal charge. We calculate the available withdrawal amount as of the end of the previous Contract Year. If you have Purchase Payments no longer subject to a withdrawal charge, the maximum you may withdraw without a withdrawal charge is the greater of (a) the free withdrawal allowance or (b) the total amount of Purchase Payments no longer subject to a withdrawal charge. Any free withdrawal taken will reduce Purchase Payments no longer subject to a withdrawal charge. The free withdrawal allowance applies to any partial or full withdrawal. The free withdrawal allowance is not cumulative from year to year. Any withdrawal is subject to federal income taxes on the taxable portion. In addition, a 10% federal penalty may be assessed on any withdrawal if the Contract Owner is under age 59 1/2. You should consult with your tax adviser regarding the tax consequences of a withdrawal. TRANSFER CHARGE We reserve the right to assess a transfer charge of up to $10.00 on transfers exceeding 12 per year. We will notify you in writing at your last known address at least 31 days before we impose any such transfer charge. ADMINISTRATIVE CHARGES There are two administrative charges: the $30 annual Contract administrative charge and the administrative expense charge. The annual Contract administrative charge will be deducted on a pro-rata basis from amounts allocated to the Variable Funding Options. We will deduct this charge on the fourth Friday of each August. This charge compensates us for expenses incurred in establishing and maintaining the Contract and we will prorate this charge (i.e. calculate) from the date of purchase. We will prorate this charge if you surrender your Contract, or if we terminate your Contract. We will not deduct a Contract administrative charge from the Fixed Account, if it is available, or: (1) from the distribution of death proceeds; (2) after an annuity payout has begun; or (3) if the Contract Value on the date of assessment equals or is greater than $40,000. We deduct the administrative expense charge (sometimes called "Subaccount administrative charge") on each business day from amounts allocated to the Variable Funding Options to compensate the Company for certain related administrative and operating expenses. The charge equals, on an annual basis, 0.15% of the daily net asset 21 value allocated to each of the Variable Funding Options, and is reflected in our Accumulation and Annuity Unit value calculations. MORTALITY AND EXPENSE RISK CHARGE Each business day, we deduct a mortality and expense risk ("M&E") charge from amounts held in the Variable Funding Options. We reflect the deduction in our calculation of Accumulation and Annuity Unit values. The charges stated are the maximum for this product. We reserve the right to lower this charge at any time. If you choose the Standard Death Benefit, the M&E charge is equal to 1.40% annually. If you choose the Enhanced Death Benefit, the M&E charge is equal to 1.60% annually. This charge compensates the Company for risks assumed, benefits provided and expenses incurred, including the payment of commissions to your registered representative. VARIABLE LIQUIDITY BENEFIT CHARGE If the Variable Liquidity Benefit is selected, there is a maximum charge of 6% of the amounts withdrawn. This charge is not assessed during the accumulation phase. We will assess the charge as a percentage of the total benefit received as follows:
YEARS SINCE PURCHASE PAYMENT MADE - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 + years 0%
Please refer to "Payment Options" for a description of this benefit. ENHANCED STEPPED-UP PROVISION CHARGE If the E.S.P. option is selected, a charge is deducted each business day from amounts held in the Variable Funding Options. The charge equals, on an annual basis, 0.20% of the amounts held in each funding option. The E.S.P. option is available if the owner and Annuitant are both age 75 or younger on the Contract Date. GUARANTEED MINIMUM WITHDRAWAL BENEFIT CHARGE If you elect to add a GMWB rider to your Contract, a charge is deducted each business day from amounts held in the Variable Funding Options. The charge depends on which GWMB rider you select. The current charge for each rider is as follows: GMWB I: 0.40%; GMWB II: 0.50%; and GMWB III: 0.25%. Your current charge will not change unless you are able to reset your benefits, at which time we may modify the charge, which will never exceed 1.00%. These GMWB riders may be elected only at the time of your initial purchase of the Contract. GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE") CHARGE If you elect the GMWB for Life rider, a charge is deducted each business day from amounts held in each Variable Funding Option. The current charge, on an annual basis, is 0.65% if you select the Single Life Option, or 0.80% if you select the Joint Life Option. Your current charge may increase when your benefits automatically reset, unless you notify us not to reset your benefits (see "LIVING BENEFITS -- Guaranteed Minimum Withdrawal Benefit for Life"). The charge will never exceed 1.50%. The charge will continue until termination of the rider or Contract. You cannot cancel the rider, although the rider terminates under certain circumstances (see "Termination"). You may elect the GMWB for Life rider only at the time of your initial purchase of the Contract. 22 GUARANTEED MINIMUM ACCUMULATION BENEFIT CHARGE If the GMAB option is selected, a charge is deducted each business day from amounts held in the Variable Funding Options. The charge equals, on an annual basis, 0.50% of the amounts held in each funding option. VARIABLE FUNDING OPTION EXPENSES We summarized the charges and expenses of the Underlying Funds in the fee table. Please review the prospectus for each Underlying Fund for a more complete description of that fund and its expenses. Underlying Fund expenses are not fixed or guaranteed and are subject to change by the Fund. PREMIUM TAX Certain state and local governments charge premium taxes ranging from 0% to 3.5%, depending upon jurisdiction. We are responsible for paying these taxes and will determine the method used to recover premium tax expenses incurred. We will deduct any applicable premium taxes from your Contract Value either upon death, surrender, annuitization, or at the time you make Purchase Payments to the Contract, but no earlier than when we have a tax liability under state law. CHANGES IN TAXES BASED UPON PREMIUM OR VALUE If there is any change in a law assessing taxes against the Company based upon premiums, contract gains or value of the Contract, we reserve the right to charge you proportionately for this tax. TRANSFERS - -------------------------------------------------------------------------------- Subject to the limitations described below, you may transfer all or part of your Contract Value between Variable Funding Options at any time up to 30 days before the Maturity Date. After the Maturity Date, you may make transfers only if allowed by your Contract or with our consent. Transfer requests received at our Home Office that are in good order before the close of the New York Stock Exchange (NYSE) will be processed according to the value(s) next computed following the close of business. Transfer requests received on a non-business day or after the close of the NYSE will be processed based on the value(s) next computed on the next business day. Where permitted by state law, we reserve the right to restrict transfers from the Variable Funding Options to the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified under the Contract. Currently, there are no charges for transfers; however, we reserve the right to charge a fee for any transfer request which exceeds twelve per year. Since each Underlying Fund may have different overall expenses, a transfer of Contract Values from one Variable Funding Option to another could result in your investment becoming subject to higher or lower expenses. Also, when making transfers, you should consider the inherent risks associated with the Variable Funding Options to which your Contract Value is allocated. MARKET TIMING/EXCESSIVE TRADING Frequent requests from Contract Owners to transfer Contract Value may dilute the value of an Underlying Fund's shares if the frequent trading involves an attempt to take advantage of pricing inefficiencies created by a lag between a change in the value of the securities held by the Underlying Fund and the reflection of that change in the Underlying Fund's share price ("arbitrage trading"). Regardless of the existence of pricing inefficiencies, frequent transfers may also increase brokerage and administrative costs of the Underlying Funds and may disrupt Underlying Fund management strategy, requiring an Underlying Fund to maintain a high cash position and possibly resulting in lost investment opportunities and forced liquidations ("disruptive trading"). Accordingly, arbitrage trading and disruptive trading activities (referred to collectively as "market timing") may adversely affect the long-term performance of the Underlying Funds, which may in turn adversely affect Contract Owners and other persons who may have an interest in the Contracts (e.g., annuitants and beneficiaries). 23 We have policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading. Currently, we believe that such situations may be presented in the international, small-cap, and high-yield Underlying Funds, i.e., Franklin Small- Mid Cap Growth Securities Fund, Templeton Foreign Securities Fund, MFS(R) Research International Portfolio, Oppenheimer Global Equity Portfolio, Pioneer Emerging Markets VCT Portfolio, Pioneer Global High Yield VCT Portfolio, Pioneer High Yield VCT Portfolio, Pioneer International Value VCT Portfolio, Pioneer Small Cap Value VCT Portfolio and Pioneer Strategic Income VCT Portfolio (the "Monitored Portfolios"), and we monitor transfer activity in those Monitored Portfolios. We employ various means to monitor transfer activity, such as examining the frequency and size of transfers into and out of the Monitored Portfolios within given periods of time. For example, we currently monitor transfer activity to determine if, for each of the Monitored Portfolios, in a three-month period there were two or more "round-trips" of a certain dollar amount or greater. A round-trip is defined as a transfer in followed by a transfer out within the next 10 calendar days, or a transfer out followed by a transfer in within the next 10 calendar days. In the case of a Contract that has been restricted previously, a single round-trip of a certain dollar amount or greater will trigger the transfer restrictions described below. We do not believe that other Underlying Funds present a significant opportunity to engage in arbitrage trading and therefore do not monitor transfer activity in those Underlying Funds. We may change the Monitored Portfolios at any time without notice in our sole discretion. In addition to monitoring transfer activity in certain Underlying Funds, we rely on the Underlying Funds to bring any potential disruptive trading activity they identify to our attention for investigation on a case-by-case basis. We will also investigate other harmful transfer activity that we identify from time to time. We may revise these policies and procedures in our sole discretion at any time without prior notice. Our policies and procedures may result in transfer restrictions being applied to deter market timing. Currently, when we detect transfer activity in the Monitored Portfolios that exceeds our current transfer limits, or other transfer activity that we believe may be harmful to other Owners or other persons who have an interest in the Contracts, we will exercise our contractual right to restrict your number of transfers to one every six months. In addition, we also reserve the right, but do not have the obligation, to further restrict the right to request transfers by any market timing firm or any other third party who has been authorized to initiate transfers on behalf of multiple Contract Owners. We may, among other things: - reject the transfer instructions of any agent acting under a power of attorney on behalf of more than one Owner, or - reject the transfer or exchange instructions of individual Owners who have executed pre-authorized transfer forms which are submitted by market timing firms or other third parties on behalf of more than one Owner. Transfers made under a Dollar Cost Averaging Program, a rebalancing program or, if applicable, any asset allocation program described in this prospectus are not treated as transfers when we evaluate trading patterns for market timing. The detection and deterrence of harmful transfer activity involves judgments that are inherently subjective, such as the decision to monitor only those Underlying Funds that we believe are susceptible to arbitrage trading or the determination of the transfer limits. Our ability to detect and/or restrict such transfer activity may be limited by operational and technological systems, as well as our ability to predict strategies employed by Owners to avoid such detection. Our ability to restrict such transfer activity also may be limited by provisions of the Contract. Accordingly, there is no assurance that we will prevent all transfer activity that may adversely affect Owners and other persons with interests in the Contracts. We do not accommodate market timing in any Underlying Fund and there are no arrangements in place to permit any Contract Owner to engage in market timing; we apply our policies and procedures without exception, waiver, or special arrangement. The Underlying Funds may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares and we reserve the right to enforce these policies and procedures. For example, Underlying Funds may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the Underlying Funds describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Although we may not have the contractual authority or the operational capacity to apply the frequent trading policies and procedures of the Underlying Funds, we have entered into a written agreement, as required by SEC regulation, with each Underlying Fund or its principal underwriter that obligates us to provide to the Underlying Fund promptly upon request certain information about the trading activity of individual Contract Owners, and to execute instructions from the 24 Underlying Fund to restrict or prohibit further purchases or transfers by specific Contract Owners who violate the frequent trading policies established by the Underlying Fund. In addition, Contract Owners and other persons with interests in the contracts should be aware that the purchase and redemption orders received by the Underlying Funds generally are "omnibus" orders from intermediaries, such as separate accounts funding variable insurance contracts or retirement plans. The omnibus orders reflect the aggregation and netting of multiple orders from individual owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Underlying Funds in their ability to apply their frequent trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the Underlying Funds (and thus Contract Owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the Underlying Funds. If an Underlying Fund believes that an omnibus order reflects one or more transfer requests from Contract Owners engaged in disruptive trading activity, the Underlying Fund may reject the entire omnibus order. In accordance with applicable law, we reserve the right to modify or terminate the transfer privilege at any time. We also reserve the right to defer or restrict the transfer privilege at any time that we are unable to purchase or redeem shares of any of the Underlying Funds, including any refusal or restriction on purchases or redemptions of their shares as a result of their own policies and procedures on market timing activities (even if an entire omnibus order is rejected due to the market timing activity of a single Contract Owner). You should read the Underlying Fund prospectuses for more details. DOLLAR COST AVERAGING Dollar cost averaging or the pre-authorized transfer program (the "DCA Program") allows you to transfer a set dollar amount to other funding options on a monthly or quarterly basis during the accumulation phase of the Contract. Using this method, you will purchase more Accumulation Units in a funding option if the value per unit is low and will purchase fewer Accumulation Units if the value per unit is high. Therefore, you may achieve a lower-than-average cost per unit in the long run if you have the financial ability to continue the program over a long enough period of time. Dollar cost averaging does not assure a profit or protect against a loss. You may elect the DCA Program through Written Request or other method acceptable to us. You must have a minimum total Contract Value of $5,000 to enroll in the DCA Program. The minimum amount that may be transferred through this program is $400. There is no additional fee to participate in the DCA Program. You may establish pre-authorized transfers of Contract Values from the Fixed Account, subject to certain restrictions. Under the DCA Program, automated transfers from the Fixed Account may not deplete your Fixed Account Value in less than twelve months from your enrollment in the DCA Program. In addition to the DCA Program, within the Fixed Account, we may credit increased interest rates to Contract Owners under an administrative Special DCA Program established at our discretion, depending on availability and state law. Under this program, the Contract Owner may pre-authorize level transfers to any of the funding options under a 6 Month, 12 Month or 24 Month Special DCA Program. The programs may have different credited interest rates. We must transfer all Purchase Payments and accrued interest on a level basis to the selected funding options in the applicable time period. Under each program, the interest will accrue only on the remaining amounts in the Special DCA Program. For example, under the 12 Month program, the interest rate can accrue up to 12 months on the remaining amounts in the Special DCA Program and we must transfer all Purchase Payments and accrued interest in this program on a level basis to the selected funding options in 12 months. The pre-authorized transfers will begin after the initial program Purchase Payment and complete enrollment instructions are received by the Company. If we do not receive complete program enrollment instructions within 15 days of receipt of the initial program Purchase Payment, the entire balance in the program will be transferred into the Money Market Variable Funding Option. You may start or stop participation in the DCA Program at any time, but you must give the Company at least 30 days' notice to change any automated transfer instructions that are currently in place. If you stop the Special DCA Program and elect to remain in the Fixed Account, we will credit your Contract Value for the remainder of 6 or 12 months with the interest rate for non-DCA Program funds. 25 You may only have one DCA Program or Special DCA Program in place at one time. We will allocate any subsequent Purchase Payments we receive within the DCA Program period selected to the current funding options over the remainder of that DCA Program transfer period, unless you direct otherwise. All provisions and terms of the Contract apply to the DCA and Special DCA Programs, including provisions relating to the transfer of money between funding options. Transfers made under any DCA Program will not be counted for purposes of restrictions we may impose on the number of transfers permitted under the Contract. We reserve the right to suspend or modify transfer privileges at any time and to assess a processing fee for this service. If the Fixed Account is not available as a funding option, you may still participate in the DCA Program. ACCESS TO YOUR MONEY - -------------------------------------------------------------------------------- Any time before the Maturity Date, you may redeem all or any portion of the Cash Surrender Value, that is, the Contract Value less any withdrawal charge, and any premium tax not previously deducted. Unless you submit a Written Request specifying the Variable Funding Option(s) and/or the Fixed Account from which we are to withdraw amounts, we will make the withdrawal on a pro rata basis. We will determine the Cash Surrender Value as of the close of business after we receive your surrender request at our Home Office. The Cash Surrender Value may be more or less than the Purchase Payments you made. You may not make withdrawals during the annuity period. For amounts allocated to the Variable Funding Options, we may defer payment of any Cash Surrender Value for a period of up to five business days after the Written Request is received. For amounts allocated to the Fixed Account, we may defer payment of any Cash Surrender Value for a period up to six months. In either case, it is our intent to pay as soon as possible. We cannot process requests for withdrawals that are not in good order. We will contact you if there is a deficiency causing a delay and will advise what is needed to act upon the withdrawal request. We may withhold payment of surrender or withdrawal proceeds if any portion of those proceeds would be derived from a Contract Owner's check that has not yet cleared (i.e., that could still be dishonored by your banking institution). We may use telephone, fax, Internet or other means of communications to verify that payment from the Contract Owner's check has been or will be collected. We will not delay payment longer than necessary for us to verify that payment has been or will be collected. Contract Owners may avoid the possibility of delay in the disbursement of proceeds coming from a check that has not yet cleared by providing us with a certified check. If your Contract is issued as part of a 403(b) plan, there are restrictions on your ability to make withdrawals from your Contract. You may not withdraw contributions or earnings made to your Contract after December 31, 1988 unless you are (a) age 59 1/2, (b) no longer employed, (c) deceased, (d) disabled, or (e) experiencing a financial hardship. Even if you are experiencing a financial hardship, you may only withdraw contributions, not earnings. You should consult with your tax adviser before making a withdrawal from your Contract. SYSTEMATIC WITHDRAWALS Before the Maturity Date, you may choose to withdraw a specified dollar amount (at least $100) on a monthly, quarterly, semiannual or annual basis. We will deduct any applicable premium taxes and withdrawal charge. To elect systematic withdrawals, you must have a Contract Value of at least $15,000 and you must make the election on the form we provide. We will surrender Accumulation Units pro rata from all funding options in which you have an interest, unless you instruct us otherwise. You may begin or discontinue systematic withdrawals at any time by notifying us in writing, but you must give at least 30 days' notice to change any systematic withdrawal instructions that are currently in place. We reserve the right to discontinue offering systematic withdrawals upon 30 days' written notice to Contract Owners (where allowed by state law). There is currently no additional fee for electing systematic withdrawals. Each systematic withdrawal is subject to federal income taxes on the taxable portion and may be subject to Contract charges. In addition, a 10% federal penalty tax may be assessed on systematic withdrawals if the Contract Owner is under age 59 1/2. You should consult with your tax adviser regarding the tax consequences of systematic withdrawals. MANAGED DISTRIBUTION PROGRAM. Under the systematic withdrawal option, you may choose to participate in the Managed Distribution Program. At no cost to you, you may instruct us to calculate and make minimum distributions 26 that may be required by the IRS upon reaching age 70 1/2. (See "Federal Tax Considerations.") These payments will not be subject to the withdrawal charge and will be in lieu of the free withdrawal allowance. No Dollar Cost Averaging will be permitted if you are participating in the Managed Distribution Program. OWNERSHIP PROVISIONS - -------------------------------------------------------------------------------- TYPES OF OWNERSHIP CONTRACT OWNER The Contract belongs to the Contract Owner named in the Contract (on the Contract Specifications page), or to any other person to whom you subsequently assign the Contract. You may only make an assignment of ownership or a collateral assignment for Non-qualified Contracts. You have sole power during the Annuitant's lifetime to exercise any rights and to receive all benefits given in the Contract provided you have not named an irrevocable beneficiary and provided you have not assigned the Contract. You receive all payments while the Annuitant is alive unless you direct them to an alternate recipient. An alternate recipient does not become the Contract Owner. If this Contract is purchased by a beneficiary of another contract who directly transferred the death proceeds due under that contract, he/she will be granted the same rights the owner has under the Contract except that he/she cannot transfer ownership, or make additional Purchase Payments. Joint Owner. For Non-qualified Contracts only, you may name joint owners (e.g., spouses) in a Written Request before the Contract is in effect. Joint owners may independently exercise transfers allowed under the Contract. All other rights of ownership must be exercised by both owners. Joint owners own equal shares of any benefits accruing or payments made to them. BENEFICIARY You name the beneficiary in a Written Request. The beneficiary has the right to receive any death benefit proceeds remaining under the Contract upon the death of the Annuitant or the Contract Owner. If more than one beneficiary survives the Annuitant or Contract Owner, they will share equally in benefits unless you recorded different shares with the Company by Written Request before the death of the Annuitant or Contract Owner. In the case of a non-spousal beneficiary or a spousal beneficiary who has not chosen to assume the Contract, we will not transfer or otherwise remove the death benefit proceeds from either the Variable Funding Options or the Fixed Account, as most recently elected by the Contract Owner, until the Death Report Date. Unless you have named an irrevocable beneficiary you have the right to change any beneficiary by Written Request during the lifetime of the Annuitant and while the Contract continues. ANNUITANT The Annuitant is designated in the Contract (on the Contract Specifications page), and is the individual on whose life the Maturity Date and the amount of the monthly Annuity Payments depend. You may not change the Annuitant after your Contract is in effect. Contingent Annuitant. You may name one individual as a Contingent Annuitant. A Contingent Annuitant may not be changed, deleted or added to the Contract after the Contract Date. If the Annuitant who is not the owner dies prior to the Maturity Date, and the Contingent Annuitant is still living: - the death benefit will not be payable upon the Annuitant's death - the Contingent Annuitant becomes the Annuitant - all other rights and benefits will continue in effect 27 When a Contingent Annuitant becomes the Annuitant, the Maturity Date remains the same as previously in effect. If the Annuitant is also the owner, a death benefit is paid to the beneficiary regardless of whether or not there is a Contingent Annuitant. DEATH BENEFIT - -------------------------------------------------------------------------------- Before the Maturity Date, generally, a death benefit is payable when either the Annuitant or a Contract Owner dies. We calculate the death benefit at the close of the business day on which our Home Office receives (1) Due Proof of Death and (2) written payment instructions or election of spousal contract continuance or beneficiary contract continuance ("Death Report Date"). There are age restrictions on certain death benefits (see "The Annuity Contract" section). Note: If the owner dies before the Annuitant, the death benefit is recalculated, replacing all references to "Annuitant" with "Owner". All death benefits will be reduced by any premium tax not previously deducted. DEATH PROCEEDS BEFORE THE MATURITY DATE STANDARD DEATH BENEFIT We will pay to the beneficiary a death benefit in an amount equal to the greatest of (1), (2) or (3) below, each reduced by any applicable premium tax: (1) the Contract Value (2) your Adjusted Purchase Payment (see below) or* (3) the Step-Up Value (if any, as described below)** ENHANCED DEATH BENEFIT
- ------------------------------------------------------------------------------------- If the Annuitant dies before age 80, the death benefit will be the greatest of: - the Contract Value; - your Adjusted Purchase Payment (see below)*; - the Step-Up Value, if any, as described below** or - the Roll-Up Death Benefit Value (as described below)** - ------------------------------------------------------------------------------------- If the Annuitant dies on or after age 80, the death benefit will be the greatest of: - the Contract Value; - your Adjusted Purchase Payment (see below)* or - the Step-Up Value, if any, as described below** or - the Roll-Up Death Benefit Value** (as described below) on the Annuitant's 80th birthday, plus any additional Purchase Payments and minus any partial surrender reductions (as described below) that occur after the Annuitant's 80th birthday - -------------------------------------------------------------------------------------
* If you purchased a GMWB rider and if your Contract provides for a death benefit amount that is the greatest of multiple benefits including the Adjusted Purchase Payment, your Adjusted Purchase Payment will not be calculated as described below, but instead will be equal to your aggregate Purchase Payments minus your aggregate withdrawals from the date the GMWB rider is added to your Contract. ** Your Step-Up Value or your Roll-Up Death Benefit Value will be subject to a partial surrender reduction below even if you have elected one of the four GMWB riders. ADJUSTED PURCHASE PAYMENT. The initial Adjusted Purchase Payment is equal to the initial Purchase Payment. Whenever an additional Purchase Payment is made, the Adjusted Purchase Payment is increased by the amount of 28 the Purchase Payment. Whenever a partial surrender is taken, the Adjusted Purchase Payment is reduced by a Partial Surrender Reduction, described below. STEP-UP VALUE+ The Step-Up Value will initially equal the Contract Value on the first Contract Date anniversary. On each subsequent Contract Date anniversary that occurs before the Annuitant's 80th birthday and before the Annuitant's death, if the Contract Value is greater than the Step-Up Value, the Step-Up Value will be increased to equal the Contract Value. If the Step-Up Value is greater than the Contract Value, the Step-Up Value will remain unchanged. Whenever a Purchase Payment is made, the Step-Up Value will be increased by the amount of that Purchase Payment. Whenever a withdrawal is taken, the Step-Up Value will be reduced by a partial surrender reduction as described below. The only changes made to the Step-Up Value on or after the Annuitant's 80th birthday will be those related to additional Purchase Payments or partial surrenders as described below. ROLL-UP DEATH BENEFIT VALUE+ On the Contract Date, the Roll-Up Death Benefit Value is equal to the Purchase Payment. On each Contract Date anniversary, the Roll-Up Death Benefit Value will be recalculated to equal a) plus b) minus c), increased by 5%, where: a) is the Roll-Up Death Benefit Value as of the previous Contract Date anniversary b) is any Purchase Payment made during the previous Contract Year c) is any Partial Surrender Reduction (as described below) during the previous Contract Year. On dates other than the Contract Date anniversary, the Roll-Up Death Benefit Value will equal a) plus b) minus c) where: a) is the Roll-Up Death Benefit Value as of the previous Contract Date anniversary b) is any Purchase Payment made since the previous Contract Date anniversary c) is any Partial Surrender Reduction (as described below) since the previous Contract Date anniversary The maximum Roll-Up Death Benefit equals 200% of the difference between all Purchase Payments and all partial surrender reductions** (as described below). + May not be available in all states. Please check with your registered representative. PARTIAL SURRENDER REDUCTIONS ADJUSTED PURCHASE PAYMENT: The Partial Surrender Reduction equals (1) the Adjusted Purchase Payment in effect immediately before the reduction for withdrawal, multiplied by (2) the amount of the withdrawal, divided by (3) the Contract Value before the surrender. For example, assume your current Contract Value is $55,000. If your current Adjusted Purchase Payment is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Adjusted Purchase Payment as follows: 50,000 x (10,000/55,000) = $9,090 Your new Adjusted Purchase Payment would be 50,000-9,090, or $40,910. The following example shows what would happen in a declining market. Assume your current Contract Value is $30,000. If your current Adjusted Purchase Payment is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Adjusted Purchase Payment as follows: 50,000 x (10,000/30,000) = $16,666 Your new Adjusted Purchase Payment would be 50,000-16,666, or $33,334. 29 STEP-UP AND ROLL-UP VALUE: The Partial Surrender Reduction equals (1) the death benefit value (Step-Up or Roll-Up Value) in effect immediately before the reduction for withdrawal, multiplied by (2) the amount of the withdrawal, divided by (3) the Contract Value before the surrender. For example, assume your current Contract Value is $55,000. If your current Step-Up Value is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Step-Up Value as follows: 50,000 x (10,000/55,000) = $9,090 Your new Step-Up Value would be 50,000-9,090, or $40,910. The following example shows what would happen in a declining market. Assume your current Contract Value is $30,000. If your current Step-Up Value is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Step-Up Value as follows: 50,000 x (10,000/30,000) = $16,666 Your new Step-Up Value would be 50,000-16,666, or $33,334. ENHANCED STEPPED-UP PROVISION ("E.S.P.") THIS PROVISION IS NOT AVAILABLE TO A CUSTOMER WHEN EITHER THE ANNUITANT OR OWNER IS AGE 76 OR OLDER ON THE RIDER EFFECTIVE DATE. THIS PROVISION MAY NOT BE AVAILABLE IN ALL STATES. PLEASE CHECK WITH YOUR REGISTERED REPRESENTATIVE. THE RIDER EFFECTIVE DATE is the date the rider is attached to and made a part of the Contract. If you have selected the E.S.P., the total death benefit as of the Death Report Date will equal the death benefit described above plus the greater of zero or the following amount: IF THE ANNUITANT IS YOUNGER THAN AGE 70 ON THE RIDER EFFECTIVE DATE, 40% OF THE LESSER OF: (1) 200% of the modified Purchase Payments excluding Purchase Payments that are both received after the first rider effective date anniversary and within 12 months of the Death Report Date, or (2) your Contract Value minus the modified Purchase Payments, calculated as of the Death Report Date; or IF THE ANNUITANT IS BETWEEN THE AGES OF 70 AND 75 ON THE RIDER EFFECTIVE DATE, 25% OF THE LESSER OF: (1) 200% of the modified Purchase Payments excluding Purchase Payments that are both received after the first rider effective date anniversary and within 12 months of the Death Report Date, or (2) your Contract Value minus the modified Purchase Payments, calculated as of the Death Report Date. THE INITIAL MODIFIED PURCHASE PAYMENT is equal to the Contract Value as of the rider effective date. Whenever a Purchase Payment is made after the rider effective date, the modified Purchase Payment(s) are increased by the amount of the Purchase Payment. Whenever a partial surrender is taken after the rider effective date, the modified Purchase Payment(s) are reduced by a partial surrender reduction as described below. THE PARTIAL SURRENDER REDUCTION IS EQUAL TO: (1) the modified Purchase Payment(s) in effect immediately prior to the reduction for the partial surrender, multiplied by (2) the amount of the partial surrender divided by (3) the Contract Value immediately prior to the partial surrender. For example, assume your current modified Purchase Payment is $50,000 and that your current Contract Value is $55,000. You decide to make a withdrawal of $10,000. We would reduce the modified Purchase Payment as follows: 50,000 x (10,000/55,000) = $9,090 You new modified Purchase Payment would be $50,000-$9,090 = $40,910. The following example shows what would happen in a declining market. Assume your current Contract Value is $30,000. If your current modified Purchase Payment is $50,000 and you decide to make a withdrawal of $10,000, we would reduce the modified Purchase Payment as follows: 50,000 x (10,000/30,000) = $16,666 Your new modified Purchase Payment would be 50,000-16,666 = $33,334. 30 PAYMENT OF PROCEEDS We describe the process of paying death benefit proceeds before the Maturity Date in the charts below. The charts do not encompass every situation and are merely intended as a general guide. More detailed information is provided in your Contract. Generally, the person(s) receiving the benefit may request that the proceeds be paid in a lump sum, or be applied to one of the settlement options available under the Contract. NON-QUALIFIED CONTRACTS
- -------------------------------------------------------------------------------------------------------------- MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: UNLESS... APPLY* - -------------------------------------------------------------------------------------------------------------- OWNER (WHO IS NOT THE The beneficiary(ies), or if The beneficiary elects to Yes ANNUITANT) (WITH NO JOINT none, to the Contract continue the Contract rather OWNER) Owner's estate. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- OWNER (WHO IS THE ANNUITANT) The beneficiary(ies), or if The beneficiary elects to Yes (WITH NO JOINT OWNER) none, to the Contract continue the Contract rather Owner's estate. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- NON-SPOUSAL JOINT OWNER (WHO The surviving joint owner. Yes IS NOT THE ANNUITANT) - -------------------------------------------------------------------------------------------------------------- NON-SPOUSAL JOINT OWNER (WHO The beneficiary(ies), or if The beneficiary elects to Yes IS THE ANNUITANT) none, to the surviving joint continue the Contract rather owner. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- SPOUSAL JOINT OWNER (WHO IS The surviving joint owner. The spouse elects to Yes NOT THE ANNUITANT) continue the Contract. - -------------------------------------------------------------------------------------------------------------- SPOUSAL JOINT OWNER (WHO IS The beneficiary(ies) or, if The spouse elects to Yes THE ANNUITANT) none, to the surviving joint continue the Contract. owner. A spouse who is not the beneficiary may decline to continue the Contract and instruct the Company to pay the beneficiary who may elect to continue the Contract. - -------------------------------------------------------------------------------------------------------------- ANNUITANT (WHO IS NOT THE The beneficiary(ies), or if The beneficiary elects to Yes CONTRACT OWNER) none, to the Contract Owner. continue the Contract rather than receive a lump sum distribution. But, if there is a Contingent Annuitant, then, the Contingent Annuitant becomes the Annuitant and the Contract continues in effect (generally using the original Maturity Date). The proceeds will then be paid upon the death of the Contingent Annuitant or owner. - --------------------------------------------------------------------------------------------------------------
31
- -------------------------------------------------------------------------------------------------------------- MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: UNLESS... APPLY* - -------------------------------------------------------------------------------------------------------------- ANNUITANT (WHO IS THE CONTRACT OWNER) See death of "owner who is Yes the Annuitant" above. - -------------------------------------------------------------------------------------------------------------- ANNUITANT (WHERE OWNER IS A The beneficiary(ies) or if Yes. Death of NON-NATURAL ENTITY/TRUST) none, to the owner. Annuitant is treated as death of the owner in these circumstances. - -------------------------------------------------------------------------------------------------------------- BENEFICIARY No death proceeds are N/A payable; Contract continues. - -------------------------------------------------------------------------------------------------------------- CONTINGENT BENEFICIARY No death proceeds are N/A payable; Contract continues. - --------------------------------------------------------------------------------------------------------------
QUALIFIED CONTRACTS
- -------------------------------------------------------------------------------------------------------------- MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: UNLESS... APPLY* - -------------------------------------------------------------------------------------------------------------- OWNER/ANNUITANT The beneficiary(ies), or if The beneficiary elects to Yes none, to the Contract continue the Contract rather Owner's estate. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- BENEFICIARY No death proceeds are N/A payable; Contract continues. - -------------------------------------------------------------------------------------------------------------- CONTINGENT BENEFICIARY No death proceeds are N/A payable; Contract continues. - --------------------------------------------------------------------------------------------------------------
- --------- * Certain payout rules of the Code are triggered upon the death of any owner. Non-spousal beneficiaries (as well as spousal beneficiaries who choose not to assume the Contract) must begin taking distributions based on the beneficiary's life expectancy within one year of death or take a complete distribution of Contract proceeds within 5 years of death. For Qualified Contracts, if mandatory distributions have begun at the Annuitant's death, the 5-year payout option is not available. SPOUSAL CONTRACT CONTINUANCE (SUBJECT TO AVAILABILITY -- DOES NOT APPLY IF A NON-SPOUSE IS A JOINT OWNER) Within one year of your death, if your spouse is named as an owner and/or beneficiary, and you die before the Maturity Date, your spouse may elect to continue the Contract as owner rather than have the death benefit paid to the beneficiary. If you were the Annuitant and your spouse elects to continue the Contract, your spouse will be named the Annuitant as of the Death Report Date. If your spouse elects to continue the Contract as Contract Owner, the death benefit will be calculated as of the Death Report Date. If the Contract Value is less than the calculated death benefit, the Contract Value will be increased to equal the death benefit. This amount is referred to as the adjusted Contract Value. Any difference between the Contract Value and the adjusted Contract Value will be allocated to the funding options in the same proportion as the allocations of the Contract prior to the Death Report Date. The terms and conditions that applied to the original Contract (including Contract fees and charges) will also apply to the continued Contract, with certain exceptions described in the Contract. Any Purchase Payment made before the Death Report Date is no longer subject to a withdrawal charge if your spouse elects to continue the Contract. Purchase Payments made to the Contract after the Death Report Date will be subject to the withdrawal charge. All other benefits and features of your Contract will be based on your spouse's age on the Death Report Date as if your spouse had purchased the Contract with the adjusted Contract Value on the Death Report Date. This spousal contract continuance is available only once for each Contract. For purposes of the death benefit on the continued Contract, 32 the death benefit will be calculated the same as prior to continuance except all values used to calculate the death benefit, which may include a Step-Up Value or Roll-Up Death Benefit Value (depending on the optional benefit), are reset on the date the spouse continues the contract. Spousal continuation will not satisfy required minimum distribution rules for Qualified Contracts other than IRAs. In addition, because the contract proceeds must be distributed within the time periods required by the federal Internal Revenue Code, the right of a spouse to continue the contract, and all contract provisions relating to spousal continuation, are available only to a person who is defined as a "spouse" under the federal Defense of Marriage Act, or any other applicable federal law. Accordingly, a purchaser who has or is contemplating a civil union should note that a a civil union partner would not be able to receive continued payments upon the death of the Owner under the Joint Life version of the GMWB for Life (the "Living Income Guarantee for 2"). Please consult a tax advisor before electing this option. BENEFICIARY CONTRACT CONTINUANCE (NOT PERMITTED FOR NON-NATURAL BENEFICIARIES) If you die before the Maturity Date, and if the value of any beneficiary's portion of the death benefit is between $20,000 and $1,000,000 as of the Death Report Date, (more than $1,000,000 is subject to Home Office approval), your beneficiary(ies) may elect to continue his/her portion of the Contract subject to applicable Internal Revenue Code distribution requirements, rather than receive the death benefit in a lump sum. If the beneficiary chooses to continue the Contract, the beneficiary can extend the payout phase of the Contract enabling the beneficiary to "stretch" the death benefit distributions out over his life expectancy as permitted by the Internal Revenue Code. If your beneficiary elects to continue the Contract, the death benefit will be calculated as of the Death Report Date. The initial Contract Value of the continued Contract (the "adjusted Contract Value") will equal the greater of the Contract Value or the death benefit calculated on the Death Report Date and will be allocated to the funding options in the same proportion as prior to the Death Report Date. If the adjusted Contract Value is allocated to the Variable Funding Options, the beneficiary bears the investment risk. The beneficiary who continues the Contract will be granted the same rights as the owner under the original Contract, except the beneficiary cannot: - transfer ownership - make additional Purchase Payments The beneficiary may also name his/her own beneficiary ("succeeding beneficiary") and has the right to take withdrawals at any time after the Death Report Date without a withdrawal charge. The E.S.P. option is not available to a beneficiary continuing the Contract under this provision. All other fees and charges applicable to the original Contract will also apply to the continued Contract; the E.S.P. charge no longer applies. All benefits and features of the continued Contract will be based on the beneficiary's age on the Death Report Date as if the beneficiary had purchased the Contract with the adjusted Contract Value on the Death Report Date. PLANNED DEATH BENEFIT You may request that rather than receive a lump-sum death benefit, the beneficiary(ies) receive all or a portion of the death benefit proceeds either: - as a variable or fixed annuity for life or a period that does not exceed the beneficiary's life expectancy, or - under the terms of the Beneficiary Continuance provision described above. If the Beneficiary Continuance provision is selected as a planned death benefit, no surrenders will be allowed other than payments meant to satisfy minimum distribution amounts or systematic withdrawal amounts, if greater. You must make the planned death benefit request as well as any revocation of this request in writing. Upon your death, your beneficiary(ies) cannot revoke or modify this request. If the death benefit at the time we receive Due Proof of Death is less than $2,000, we will only pay a lump sum to the beneficiary. If periodic payments due under the planned death benefit election are less than $100, we reserve the right to make Annuity Payments at less frequent intervals, resulting in a payment of at least $100 per year. If no beneficiary is alive when death benefits become payable, we will pay the death benefit as provided in your Contract. 33 DEATH PROCEEDS AFTER THE MATURITY DATE If any Contract Owner or the Annuitant dies on or after the Maturity Date, the Company will pay the beneficiary a death benefit consisting of any benefit remaining under the annuity option then in effect. LIVING BENEFITS - -------------------------------------------------------------------------------- GUARANTEED MINIMUM WITHDRAWAL BENEFIT ("GMWB" OR "PRINCIPAL GUARANTEE") For an additional charge, you may elect an optional rider for your Contract that provides a Guaranteed Minimum Withdrawal Benefit, or "GMWB". A GMWB rider is designed to protect your investment from poor market performance, as long as you do not withdraw more than a certain amount from your Contract each year. AVAILABILITY AND ELIGIBILITY We offer several different GMWB riders so that you can choose the level of benefits and costs that makes the most sense for you. This prospectus offers four different GMWB riders, and the availability of each depends on when you purchase your Contract and your state of residence. The four GMWB riders described in this prospectus are called "GMWB I", "GMWB II", "GMWB III" , and "GMWB for Life" (described separately below); we may refer to any one of these as GMWB. The availability of each rider is shown below. AVAILABLE GMWB RIDERS
- -------------------------------------------------------------------------------------------------------------- NAME OF RIDER: GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- ALSO CALLED: Principal Guarantee Principal Guarantee 5/10 Principal Guarantee 5 - -------------------------------------------------------------------------------------------------------------- AVAILABILITY: Not available for Available on or after Available on or after purchase on or after March 21, 2005 if March 21, 2005 if March 21, 2005, unless approved in your state approved in your state GMWB II is not approved in your state - --------------------------------------------------------------------------------------------------------------
CURRENTLY, YOU MAY ELECT A GMWB RIDER ONLY AT THE TIME OF YOUR INITIAL PURCHASE OF THE CONTRACT. You may not elect a GMWB rider if you have also elected the GMAB rider offered under this Contract. REMAINING BENEFIT BASE ("RBB") For all GMWB riders, the amount of your investment that is guaranteed is called the "remaining benefit base" or "RBB." Your initial RBB is equal to your initial Purchase Payment. If you added the GMWB after the initial purchase of the Contract, the Initial RBB is the Contract Value on the date the GMWB was added. The RBB is not a lump sum guarantee, rather, it is the amount that we guarantee to return to you through a series of payments that annually do not exceed a percentage of your RBB. ANNUAL WITHDRAWAL BENEFIT ("AWB") The annual percentage of your RBB that is available for withdrawal is called the "annual withdrawal benefit" or "AWB". Each year you may take withdrawals that do not exceed your AWB until your RBB is depleted. Each year you may take your AWB monthly, annually, or on any payment schedule you request. You may take withdrawals in any dollar amount up to your AWB without affecting your guarantee. If you choose to receive only a part of, or none of, your AWB in any given year, your AWB in any subsequent year will not be increased. In that case you are choosing to deplete your RBB over a longer period of time. 34 The AWB is a percentage of your RBB and depends on which GMWB rider you select. Your initial AWB is calculated as a percentage of the RBB immediately before your first withdrawal:
- -------------------------------------------------------------------------------------------------------------- GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- If you make your first 5% of RBB 5% of RBB 5% of RBB withdrawal before the 3rd anniversary after you purchase GMWB: - -------------------------------------------------------------------------------------------------------------- If you make your first 10% of RBB 10% of RBB 5% of RBB withdrawal on or after the 3(rd) anniversary after you purchase GMWB: - --------------------------------------------------------------------------------------------------------------
ADDITIONAL PREMIUM Currently, additional Purchase Payments serve to increase your RBB and AWB. After each Purchase Payment your new RBB equals your RBB immediately prior to the Purchase Payment plus the dollar amount of the Purchase Payment. Your new AWB is equal to the AWB immediately prior to the Purchase Payment, plus a percentage of the Purchase Payment. We use the same percentage as that used to calculate your original AWB as shown above. We reserve the right not to include additional Purchase Payments into the calculation of the RBB or AWB. WITHDRAWALS When you make a withdrawal, your AWB remains the same as long as the sum of all of your withdrawals since the most recent anniversary of your purchase or reset of GMWB (or "GMWB Anniversary"), including the current withdrawal, does not exceed your AWB immediately prior to the current withdrawal. In such case your RBB is decreased to equal the RBB immediately prior to the withdrawal, less the dollar amount of the current withdrawal. However, if you make a withdrawal so that the total of all your withdrawals since your GMWB anniversary, including the current withdrawal, exceeds your AWB immediately prior to the current withdrawal, we will recalculate both your RBB and AWB. The recalculation depends on which GMWB rider you select: IF YOU SELECT GMWB II OR GMWB III: - To recalculate your RBB, we reduce your RBB by the greater of the dollar amount of your withdrawal, or a "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal. - To recalculate your AWB, we reduce your AWB by a partial withdrawal reduction, which is equal to 1) the AWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. IF YOU PURCHASED GMWB I: - To recalculate your RBB, we reduce your RBB by a "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal. - To recalculate your AWB, we reduce your AWB by a partial withdrawal reduction, which is equal to 1) the AWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. We will waive any surrender charge on amounts that you withdraw up to your AWB on amounts up to the amount withdrawn under our Managed Distribution Program, even if such annual amount withdrawn is greater than your free withdrawal allowance. WITHDRAWAL EXAMPLES. The following examples are intended to illustrate the effect of withdrawals on your RBB and AWB, depending on which GMWB rider you select. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including the Variable Funding Options selected by you. The example does 35 not reflect the deduction of fees and charges, withdrawal charges and applicable income taxes and penalties. Assume your initial RBB is $100,000, your age is less than 70, and you take a withdrawal of $10,000 after your first GMWB Anniversary: WITHDRAWAL EXAMPLE FOR GMWB II AND GMWB III
- ------------------------------------------------------------------------------------------------------------------------- ASSUMES 10% GAIN ON INVESTMENT ASSUMES 10% LOSS ON INVESTMENT - ------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT VALUE RBB AWB (5%) VALUE RBB AWB (5%) - ------------------------------------------------------------------------------------------------------------------------- VALUES AS OF - ------------------------------------------------------------------------------------------------------------------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY PRIOR TO WITHDRAWAL $110,000 $100,000 $5,000 $90,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- PARTIAL WITHDRAWAL N/A (100,000 x [5,000 x (1- N/A (100,000 x [5,000 x (1- REDUCTION 10,000/110,000) = 90,000/100,000)] = 10,000/90,000) = 88,889/100,000)] = (PWR) 9,091 500 $11,111 $556 - ------------------------------------------------------------------------------------------------------------------------- GREATER OF PWR OR THE DOLLAR AMOUNT $10,000 $11,111 OF THE WITHDRAWAL (10,000>9,091) (11,111>10,000) - ------------------------------------------------------------------------------------------------------------------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $10,000 $500 $10,000 $11,111 $556 - ------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY AFTER WITHDRAWAL $100,000 $90,000 $4,500 $80,000 $88,889 $4,444 - -------------------------------------------------------------------------------------------------------------------------
WITHDRAWAL EXAMPLE FOR GMWB I
- ------------------------------------------------------------------------------------------------------------------------- ASSUMES 10% GAIN ON INVESTMENT ASSUMES 10% LOSS ON INVESTMENT - ------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT VALUE RBB AWB (5%) VALUE RBB AWB (5%) - ------------------------------------------------------------------------------------------------------------------------- VALUES AS OF - ------------------------------------------------------------------------------------------------------------------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY PRIOR TO WITHDRAWAL $110,000 $100,000 $5,000 $90,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY $90,909 $4,545 $88,889 $4,444 AFTER WITHDRAWAL [100,000 -- (100,000 [(5,000 [100,000 -- (100,000 [5,000 x $100,000 x10,000/110,000)] x90,909/100,000)] $80,000 x10,000/90,000)] (88,889/100,000)] - ------------------------------------------------------------------------------------------------------------------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $9,091 $455 $10,000 $11,111 $556 - -------------------------------------------------------------------------------------------------------------------------
TAX-QUALIFIED DISTRIBUTION PROGRAMS (GMWB II AND GMWB III ONLY). If you select GMWB II or GMWB III, subject to certain limitations and restrictions, your AWB will not incur a recalculation as a result of distributions taken under certain eligible Tax-Qualified Distribution Programs ("Tax-Qualified Distribution Programs"). Instead, such distributions will reduce the RBB by the amount of the withdrawal, and will not affect the AWB. For purposes of GMWB II and GMWB III, the following Tax-Qualified Distribution Programs are eligible. Only certain types of distribution methods are eligible as described below. Please consult with your tax adviser to make sure you are eligible: - Distributions intended to satisfy the required minimum distribution rules under Internal Revenue Code ("Code") Section 401(a)(9) and the Treasury Regulations promulgated thereunder, as applicable, to: - a qualified retirement plan (Code Section 401), - a tax-sheltered annuity (Code Section 403(b)), 36 - an individual retirement account (Code Sections 408(a)), - an individual retirement annuity (Code Section 408(b)), or - a qualified deferred compensation plan (Code Section 457). Required minimum distribution must be calculated using the Uniform Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-2) and/or the Joint and Last Survivor Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-3), and for distributions where the employee (owner) dies before the entire interest is distributed as described in Code Section 401(a)(9)(B)(iii) calculated using the Single Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-1), as appropriate (each table as in effect as of January 1, 2004). - Distributions intended to satisfy the exception under Code Section 72(s)(2) to the required minimum distribution rules which apply after the death of the holder of a nonqualified annuity contract provided under Code Section 72(s)(1) for certain amounts payable over the life of a designated beneficiary; - Distributions intended to satisfy the exception under Code Section 72(t)(2)(A)(iv) from the 10% additional tax on early distributions from qualified retirement plans imposed by Code Section 72(t)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and his designated beneficiary, provided, however, the amount of the substantially equal periodic payments must be calculated under the required minimum distribution method set forth in the Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Revenue Ruling 2002-62, 2002-42 I.R.B. 710 (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program); or - Distributions intended to satisfy the exception under Code Section 72(q)(2)(D) from the 10% additional tax on early distributions from nonqualified annuity contracts imposed by Code Section 72(q)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the Beneficiary or the joint lives (or joint life expectancies) of such Beneficiary and his designated beneficiary, provided, however, the amount of the substantially equal periodic payment must be calculated under the required minimum distribution method set forth in Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Internal Revenue Bulletin 2004-9, Notice 2004-15, page 526. (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program). You are subject to the following limitations if you are taking distributions under a Tax-Qualified Distribution Program: - YOU MUST ENROLL IN OUR MANAGED DISTRIBUTION PROGRAM. If you do not enroll or if you cancel your enrollment, you can continue to make withdrawals under your GMWB rider, however your RBB and AWB may be subject to a recalculation. Under our Managed Distribution Program, you select the frequency of payments. You may change the frequency of your payments only once every two years after your GMWB Anniversary, and you may only make the change during the 30-day period after your GMWB Anniversary. At the time you purchase GMWB, your initial frequency of payment must be annual if you did not take distributions pursuant to your Tax-Qualified Distribution Program at your previous financial institution, unless you turn age 70 1/2 before the first GMWB anniversary. You are advised to take your required distributions prior to purchasing GMWB in order to have the choice of taking your distributions on a monthly, quarterly, semi-annual or annual basis. If you do not take your distribution before purchasing GMWB, you will be limited to taking annual distributions for the first two Contract Years after which time you can choose an alternate mode of distribution. - ANY WITHDRAWALS OUTSIDE OF THE PROGRAM MAY DECREASE YOUR BENEFIT. All withdrawals under your Contract must be made pursuant to the Tax- Qualified Distribution Program during any 12-month period after an anniversary of your purchase of GMWB (a "GMWB Year"). If during any GMWB Year you take any additional withdrawals that are not made pursuant to the Program, you can continue to make withdrawals 37 under your GMWB rider, however for the remainder of the GMWB Year your RBB and AWB may be subject to a partial withdrawal reduction. To avoid any partial withdrawal reduction, all withdrawals under your Contract must be made pursuant to your Tax-Qualified Distribution Program. RESET (GMWB I AND GMWB II ONLY). If you select GMWB I or GMWB II, you may choose to reset your RBB starting with the 5th year anniversary date of your GMWB purchase. In accordance with the terms of the rider we have established the following procedures for resets. If you elect to reset within 30 days prior to the end of the 5th contract year, your new RBB will be reset to equal your current Contract Value. If you do not reset on the 5th year anniversary, you will have the opportunity to elect to reset during the 30-day period prior to each anniversary following the date of your 5th year anniversary of your GMWB purchase. In the event that you elect a reset you will be eligible to reset your RBB again provided that 5 contract years have elapsed since the most recent reset, so long as your election is made during the 30-day period prior to the anniversary date of your GMWB purchase. Each time you reset your RBB, your new AWB will equal a percentage of your new RBB. The percentage used is the same percentage used to calculate your AWB before the reset. If you are age 95 and are taking withdrawals under a Tax-Qualified Distribution Program, you may not reset if you purchased GMWB II. Depending on your Contract Value and the current fee for GMWB, it may not be beneficial to reset your RBB. Generally, it may be beneficial to reset your RBB if your Contract Value exceeds your RBB. However, the charge may increase if you elect to reset the RBB. (In such cases, the charge will never exceed the guaranteed maximum charge.) Further, if you reset your RBB, your new AWB may be higher or lower than your current AWB. In addition, the length of time over which you can expect to receive your RBB will be reset. INVESTMENT RESTRICTIONS (GMWB II AND GMWB III ONLY) We reserve the right to restrict allocations to a Variable Funding Option or limit the percentage of Contract value that may be allocated to a Variable Funding Option at any time. If we do so we would provide you with asset allocation requirements, and we reserve the right to require periodic rebalancing of Contract value allocated to Variable Funding Options according to specified percentages. We will provide no less than 30 days advanced written notice if we exercise our right to restrict or limit allocations to a Variable Funding Option and/or require periodic rebalancing between Variable Funding Options. Our ability to restrict allocations to a Variable Funding Option may be different depending on your state. If we restrict allocations to a Variable Funding Option, as of the effective date of the restriction, we will no longer allow additional Purchase Payments to be applied, or transfers of Contract value to be allocated into the restricted Variable Funding Option. Any Contract value previously allocated to a restricted Variable Funding Option will not be subject to the restriction. If we impose a limit on the percentage of Contract value allocated to a Variable Funding Option, as of the effective date of the restriction, we will impose the limit on all subsequent allocations. GMWB CHARGE. The charge for your GMWB rider is different depending on which version of GMWB you choose. For all GMWB riders, the charge is deducted each business day from amounts held in each Variable Funding Option. The current charge for each rider, on an annual basis, is shown below. Your current charge will not change unless you reset your benefits, at which time we may modify the charge. In such case the charge will never exceed 1.00%.
- -------------------------------------------------------------------------------------------------------------- GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- Current Annual Charge 0.40% 0.50% 0.25% - -------------------------------------------------------------------------------------------------------------- Maximum Annual Charge After a 1.00% 1.00% N/A Reset - --------------------------------------------------------------------------------------------------------------
MAXIMUM RBB. Although we have no current plans to do so, in the future we may impose a maximum RBB. If we do, we would stop including additional Purchase Payments into the calculation of your RBB. If we impose a maximum RBB for Purchase Payments or reset, the maximum RBB will never be less than the cumulative Purchase Payments to which we have previously consented. Currently you must obtain our consent to purchase any RBB over $1 million. Purchase Payments under $1 million are not subject to a maximum RBB. 38 TERMINATION. Once you purchase GMWB I, you cannot cancel it. If you select GMWB II or GMWB III, you may terminate your rider at any time after the 5(th) anniversary of your purchase of GMWB. Once you terminate a GMWB III rider, you cannot re-elect it. You must request your termination in writing. All GMWB riders terminate automatically when you reach the maturity date of your Contract, if your Contract is assigned, or if the rider is exchanged for a similar rider offered by us. OTHER INFORMATION ABOUT GMWB. If your Contract Value reaches zero, and you have purchased this benefit, the following will occur: - The AWB will continue to be paid to you until the RBB is depleted, not more frequently than monthly. Upon your death, your beneficiary will receive these payments. No other death benefit or optional benefit, if any, will be paid. - The total annual payment amount will equal the AWB and will never exceed your RBB, and - We will no longer accept subsequent Purchase Payments into the Contract. If a spouse or beneficiary continues this Contract upon your death, and you had elected GMWB, all terms and conditions of this benefit would apply to the new owner. Please refer to the Death Benefit section for information on how GMWB may impact your death benefit. COMPARISON OF IMPORTANT DIFFERENCES AMONG THE GMWB RIDERS The following chart may help you decide which version of GMWB is best for you.
- -------------------------------------------------------------------------------------------------------------- GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- AWB 5% of RBB if first 5% of RBB if first 5% of RBB withdrawal before 3(rd) withdrawal before 3(rd) anniversary 10% of RBB anniversary 10% of RBB if first withdrawal on if first withdrawal on or after 3(rd) or after 3(rd) anniversary anniversary - -------------------------------------------------------------------------------------------------------------- ANNUAL CHARGE 0.40% 0.50% 0.25% - -------------------------------------------------------------------------------------------------------------- RESET Yes Yes No - -------------------------------------------------------------------------------------------------------------- CAN I CANCEL MY GMWB? No Yes, after the 5(th) Yes, after the 5(th) anniversary of GMWB anniversary of GMWB purchase purchase - -------------------------------------------------------------------------------------------------------------- INVESTMENT RESTRICTIONS No Yes Yes - -------------------------------------------------------------------------------------------------------------- WAIVER OF RECALCULATION OF AWB No Yes Yes FOR DISTRIBUTIONS FROM TAX- QUALIFIED PLANS - --------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE" OR "LIVING INCOME GUARANTEE") SUMMARY OF BENEFITS. For an additional charge, you may elect an optional rider for your Contract that provides a Guaranteed Minimum Withdrawal Benefit for Life, or "GMWB for Life". The GMWB for Life rider is designed to protect your investment from poor market performance. CURRENTLY, YOU MAY ELECT THE GMWB FOR LIFE RIDER ONLY AT THE TIME OF YOUR INITIAL PURCHASE OF THE CONTRACT. The GMWB for Life rider: - Guarantees a fixed level of income for life after you attain a certain age as long as you do not withdraw more than a certain amount from your Contract each year; - Can be purchased for you alone or with your spouse; - Can accommodate tax-qualified distributions from your Contract; 39 - Increases in value on each anniversary if your Contract Value increases through an automatic reset feature; - Can provide an income until your guaranteed amount is recovered if your circumstances change before you reach the minimum age to begin lifetime income, as long as you do not withdraw more than a certain amount from your Contract each year; - Offers the option to receive a lump sum after a period of years in lieu of the guarantee to take periodic payments if your circumstances change. You must continue to meet several restrictions and conditions in order to receive the benefits of the GMWB for Life rider. Withdrawals that exceed the allowable annual maximum will more rapidly decrease the guarantees under the rider. Also, to be eligible for the guarantees you are permitted to invest only in a limited number of specified Variable Funding Options. Only Purchase Payments that you make within two years of purchase are eligible for the guarantees. See below for details. Currently, you may elect the GMWB for Life rider only at the time of your initial purchase of the Contract. In the future we may allow Contract Owners to add the rider after purchase. You may not elect the GMWB for Life rider if you have also elected the GMWB or GMAB rider offered under this Contract. The GMWB for Life rider may not be available in all states. Once you purchase the GMWB for Life rider, you cannot cancel it. In written materials other than this prospectus, we may refer to the GMWB for Life rider using different names. These names are "Living Income Guarantee" and "Living Income Guarantee for 2". These names refer to the same GMWB for Life rider described in this prospectus. SINGLE LIFE OPTION OR JOINT LIFE OPTION. The GMWB for Life rider is designed for use by you alone (the "Single Life Option"), or you and your spouse (the "Joint Life Option"). You must select either the Single Life Option or the Joint Life Option at the time you elect the GMWB for Life rider. The Single Life Option is available to all Contract Owners. However, if you select the Single Life Option and your Contract is jointly owned, the age of the older joint owner will determine when you are eligible for lifetime benefits under the rider, and income is guaranteed only over the lifetime of the older joint owner. The Joint Life Option is only available if you name your spouse as the joint owner or sole beneficiary of your Contract. Under the Joint Life Option, income is guaranteed over the joint lifetime of both you and your spouse. Under the Joint Life Option, the age of the younger spouse determines when you are eligible for lifetime benefits under the rider. This means you and your spouse will have to wait until the younger of you reaches the minimum age to qualify for the lifetime benefit. REMAINING BENEFIT BASE ("RBB"). The guarantees under the GMWB for Life rider are determined by applying an annual percentage to a base amount that we calculate called the "remaining benefit base" or "RBB." Your initial RBB is equal to your initial Purchase Payment if you elect GMWB for Life when you purchase your Contract. If in the future we permit the rider to be added after the Contract is issued, then your initial RBB is equal to your Contract Value when you elect the rider. The RBB is not a lump sum guarantee, rather, it is used to determine the amount that we return to you through a series of payments that annually do not exceed a percentage of your RBB. Your RBB is subject to a maximum of $5,000,000 for all deferred variable annuities issued by us in the same calendar year to you. LIFETIME WITHDRAWAL BENEFIT ("LWB"). The annual percentage of your RBB that is available for withdrawal is called the "Lifetime Withdrawal Benefit" or "LWB. " Each year you may take withdrawals that do not exceed your LWB. The level of your initial LWB payment depends on whether your GMWB for Life rider was issued under the Single Life Option or the Joint Life Option, and the timing of your first withdrawal from your Contract. You are eligible to receive payments under the LWB after you attain a certain age as shown below. Under the Joint Life Option, the age of the younger spouse determines eligibility. Under the Single Life Option, if your Contract is jointly owned, the age of the older joint owner determines eligibility. 40
- -------------------------------------------------------------------------------------------- MINIMUM AGE TO BE ELIGIBLE TO RECEIVE LWB - -------------------------------------------------------------------------------------------- Single Life Option 59 1/2 years - -------------------------------------------------------------------------------------------- Joint Life Option 65 years - --------------------------------------------------------------------------------------------
Your initial LWB is calculated as a percentage of the RBB immediately before your first withdrawal:
- ------------------------------------------------------------------------------------- SINGLE LIFE OPTION LWB - ------------------------------------------------------------------------------------- If you make your first withdrawal BEFORE the 5(th) anniversary after you purchase GMWB for Life: 5% of RBB - ------------------------------------------------------------------------------------- If you make your first withdrawal ON OR AFTER the 5(th) anniversary, but before the 10(th) anniversary: 6% of RBB - ------------------------------------------------------------------------------------- If you make your first withdrawal ON OR AFTER the 10(th) anniversary: 7% of RBB - -------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------- JOINT LIFE OPTION LWB - ------------------------------------------------------------------------------------- If you make your first withdrawal BEFORE the 8(th) anniversary after you purchase GMWB for Life: 5% of RBB - ------------------------------------------------------------------------------------- If you make your first withdrawal ON OR AFTER the 8(th) anniversary, but before the 15th anniversary: 6% of RBB - ------------------------------------------------------------------------------------- If you make your first withdrawal ON OR AFTER the 15(th) anniversary: 7% of RBB - -------------------------------------------------------------------------------------
You should carefully choose when you take your first withdrawal from your Contract, because it will determine your LWB annual percentage which will not change for the life of your Contract. For example, if you take your first withdrawal before the 5th anniversary, your LWB will be 5% of RBB for the life of your Contract, and you will never qualify for a 6% or 7% of RBB. As long as your total annual withdrawals do not exceed your LWB amount, you may continue to take your LWB payments until death, even if the aggregate payments exceed your RBB. Under the Joint Life Option, payments cease upon the death of the last surviving spouse. Under the Single Life Option, payments cease upon your death, or the death of the older joint owner. You may adjust the amount and frequency of payments during the year. Each year you may take your LWB monthly, annually, or on any payment schedule you request. You may take withdrawals in any dollar amount up to your LWB without affecting your guarantee. If you choose to receive only a part of, or none of, your LWB in any given year, your LWB in any subsequent year will not be increased. In certain circumstances we may limit the frequency of LWB payments to annual, such as payments under our Managed Distribution Program, payments to a beneficiary after your death, or if your Contract Value reduces to zero (see below). ADDITIONAL PREMIUM. Additional Purchase Payments made within two years after you purchase the GMWB for Life rider will increase your RBB, which will serve to increase your LWB. After each Purchase Payment your new RBB equals your RBB immediately prior to the Purchase Payment plus the dollar amount of the Purchase Payment. Your new LWB is equal to the LWB immediately prior to the Purchase Payment, plus a percentage of the Purchase Payment. We use the same percentage as that used to calculate your original LWB as shown above. Additional Purchase Payments made more than two years after you purchase the GMWB for Life rider will not be included in your RBB, and will be excluded from the guarantees under your rider. However, additional Purchase Payments will be added to your Contract Value and would be reflected in any reset of the RBB. (See the "Reset" section below.) WITHDRAWALS. When you make a withdrawal, your LWB remains the same as long as the sum of all of your withdrawals since the most recent anniversary of your purchase of GMWB for Life (or "GMWB for Life Anniversary"), including the current withdrawal, does not exceed your LWB immediately prior to the current withdrawal. In such case your RBB is decreased to equal the RBB immediately prior to the withdrawal, less the dollar amount of the current withdrawal. 41 However, if you make a withdrawal so that the total of all your withdrawals since your GMWB for Life Anniversary, including the current withdrawal, exceeds your LWB immediately prior to the current withdrawal, we will recalculate your RBB and LWB. To recalculate your RBB, we reduce your RBB by the greater of the dollar amount of your withdrawal, or a proportional "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal. To recalculate your LWB, we reduce your LWB by a partial withdrawal reduction, which is equal to 1) the LWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. These recalculations magnify the effect of a withdrawal when your Contract Value is less than your RBB, as shown in the example below. WITHDRAWAL EXAMPLES The following example is intended to illustrate the effect of withdrawals on your RBB and LWB. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including the Variable Funding Options selected by you. The example does not reflect the deduction of fees and charges, withdrawal charges and applicable income taxes and penalties. Assume your initial RBB is $100,000, your age is greater than 65, and you take a withdrawal of $10,000 after your first GMWB Anniversary: WITHDRAWAL EXAMPLE
- ------------------------------------------------------------------------------------------------------------------------- ASSUMES 10% GAIN ON INVESTMENT ASSUMES 10% LOSS ON INVESTMENT - ------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT VALUE RBB LWB (5%) VALUE RBB LWB (5%) - ------------------------------------------------------------------------------------------------------------------------- VALUES AS OF - ------------------------------------------------------------------------------------------------------------------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY PRIOR TO WITHDRAWAL AND AFTER THE FIRST GMWB ANNIVERSARY $110,000 $110,000 $5,500 $90,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- PARTIAL [$5,000 x WITHDRAWAL N/A [$110,000 x [$5,500 x (1- N/A [$100,000 x (- REDUCTION ($10,000/ $110,000)] $100,000/$110,000)] ($10,000/$90,000)] = 1 -- 88,889- = $10,000 = 500 $11,111 /$100,000)] = $556 - ------------------------------------------------------------------------------------------------------------------------- GREATER OF PWR OR THE DOLLAR AMOUNT $10,000 $11,111 OF THE WITHDRAWAL ($10,000 = $10,000) ($11,111 > 10,000) - ------------------------------------------------------------------------------------------------------------------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $10,000 $500 $10,000 $11,111 $556 - ------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY AFTER WITHDRAWAL $100,000 $100,000 $5,000 $80,000 $88,889 $4,444 - -------------------------------------------------------------------------------------------------------------------------
RESET. On each anniversary after you purchase the GMWB for Life rider, we will automatically reset your RBB, under our Automatic RBB Reset Program, to an amount equal to 100% of the then Contract Value. We will not automatically reset your RBB if the Contract Value on your anniversary is less than your current RBB, or, if you (or you and your spouse) are over age 85. You may choose to opt out of the Automatic RBB Reset Program, if a reset of your RBB would cause the charge for your rider to increase. This can happen since the rate you pay for the rider will be changed to the rate in effect at the time of reset and that may be higher than the rate before the reset. We will send you advance notice if the charge for your rider would increase upon reset in order to give you the opportunity to opt out of the Automatic RBB Reset Program. In order to opt out of the Automatic RBB Reset Program, you must notify us in writing which we must receive by the 7th calendar day prior to the scheduled reset. Your rider will no longer be reset for the life of the rider unless you subsequently elect in writing to opt back into the Automatic RBB Reset Program. Your opt back in election will go into effect upon the next GMWB for Life Anniversary following the receipt of your request. 42 Upon reset, the LWB will be recalculated as the greater of the a) LWB prior to the reset, or b) a percentage of the Reset RBB value. The percentage will equal the percentage of the RBB (e.g. 5%) used in determining the initial LWB. GUARANTEED PRINCIPAL OPTION. If your circumstances change and you no longer want the lifetime features of the GMWB for Life rider, you may wish to opt out and receive an adjustment to your Contract Value. In this case, once you have held the rider for ten (10) years or more you will have the option each year to elect the Guaranteed Principal Option. Each year you will have a 30-day window period during which you may elect the option. You may only elect the option once, as your GMWB for Life rider will terminate when you exercise the option. The Guaranteed Principal Option will be paid to you as a positive adjustment to your Contract Value. The adjustment is equal to (a) minus (b): a) Purchase Payments credited within 120 days after you purchase the GMWB for Life rider, reduced by a "Percentage Reduction in the Contract Value" attributable to any partial withdrawals taken. We compute the "Percentage Reduction in Contract Value" attributable to a partial withdrawal by dividing the dollar amount of the withdrawal, plus any applicable withdrawal charges, by the Contract Value immediately preceding such withdrawal. We apply the Percentage Reduction in the Contract Value as a factor equal to 1 minus the percentage reduction. b) Your Contract Value on the GMWB Anniversary immediately preceding exercise of the Guaranteed Principal Option. For example, assume you make a single Purchase Payment of $100,000 and elect the GMWB for Life rider. Also assume that you make no withdrawals, and that ten years later your Contract Value has declined to $80,000. If you elect to receive the Guaranteed Principal Option, we will apply $20,000 to your Contract Value to restore it to $100,000. To exercise the Guaranteed Principal Option you must notify us in writing within 30 days following any anniversary of your purchase of the GMWB for Life rider, on or after the tenth (10th) anniversary of your purchase of the rider. We will adjust your Contract Value at the end of the 30-day window period. The adjustment will be added to each Variable Funding Option in the ratio that the Contract Value in such Variable Funding Option bears to the total Contract Value in all Variable Funding Options. The adjustment will never be less than zero. If you exercise the Guaranteed Principal Option, the GMWB for Life rider will terminate on the date the adjustment is added to your Contract Value. Only Purchase Payments credited within 120 days after you purchase the GMWB for Life rider are taken into consideration in determining the amount paid under the Guaranteed Principal Option. If you anticipate making Purchase Payments after the 120-day period, you should understand that such payments will not increase the amount paid under the Guaranteed Principal Option. However, Purchase Payments credited after 120 days are added to your Contract Value and will impact whether or not any benefit is due. Therefore, GMWB for Life may not be appropriate for you if you intend to make additional Purchase Payments after the 120-day period and are purchasing the GMWB for Life rider for this feature. REQUIRED ALLOCATION OF YOUR CONTRACT VALUE AND PREMIUM PAYMENTS. If you elect the GMWB for Life rider, you will be required to invest in a limited number of specific Variable Funding Options, and you will be foreclosed from investing in all the other Variable Funding Options that would otherwise be available to you while the rider is in effect. In addition, you may not allocate any portion of your Contract Value or Premium Payments to the Fixed Account. You will be required to allocate 100% of your Contract Value or Purchase Payments to one or more of the following Variable Funding Options. Some of these Variable Funding Options invest in mutual funds that invest in other mutual funds, also known as "funds of funds." Please see the section in this prospectus entitled "Variable Funding Options" for a description of the investment objectives of these Variable Funding Options, as well as the section entitled "Fee Table" for the charges associated with these Variable Funding Options. 43
PERMITTED VARIABLE FUNDING OPTIONS -------------------------------------------------------- LEGG MASON PARTNERS VARIABLE EQUITY TRUST -- CLASS II Legg Mason Partners Variable Capital and Income Portfolio METROPOLITAN SERIES FUND, INC. BlackRock Money Market Portfolio -- Class A MFS(R) Total Return Portfolio -- Class B PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio Pioneer Global High Yield VCT Portfolio Pioneer High Yield VCT Portfolio Pioneer Ibbotson Growth Allocation VCT Portfolio Pioneer Ibbotson Moderate Allocation VCT Portfolio Pioneer Strategic Income VCT Portfolio
We will reject any request by you to transfer Contract Value or allocate Purchase Payments to a Variable Funding Option other than the permitted Variable Funding Options listed above. You will be required to re-submit your request to comply with the above restrictions. We will not be responsible for any financial impact caused by delays in processing your transaction if your request is rejected because it violated the above restrictions. We may make additions to or deletions from the list of permitted Variable Funding Options. GMWB FOR LIFE CHARGE. The charge for your GMWB for Life rider depends on whether you purchase the Single Life Option or the Joint Life Option. The charge is deducted each business day from amounts held in each Variable Funding Option. The current charge, on an annual basis, is shown below. Your current charge may increase when your RBB automatically resets, unless you notify us not to reset your RBB (see "Reset" above). The charge may increase provided that this rate will not exceed the rate currently applicable to the same rider available for new contract purchases at the time of the Step-Up; but it will never exceed 1.50%.
- ----------------------------------------------------------------------------------------- CURRENT CHARGE - ----------------------------------------------------------------------------------------- GMWB for Life (Single Life Option) 0.65% - ----------------------------------------------------------------------------------------- GMWB for Life (Joint Life Option) 0.80% - -----------------------------------------------------------------------------------------
ANNUAL WITHDRAWAL BENEFIT ("AWB"). If your circumstances change, you may wish to take guaranteed withdrawals even though you have not yet reached the minimum age to be eligible for lifetime payments under LWB. In this case, you can take an "Annual Withdrawal Benefit" or "AWB" which allows you to withdraw an amount each year until your RBB is depleted. AWB payments are not guaranteed for life. The level of your AWB is determined in the same manner as the level of your LWB as described in the above section entitled "Lifetime Withdrawal Benefit ("LWB")", except that there is no minimum age to be eligible to receive AWB payments. Additional Premium Payments affect your AWB in the same manner as they do the LWB as described in the "Additional Premium Payments" section above. The reset of your RBB will affect your AWB in the same manner as it affects the LWB as described in the "Reset" section above. Withdrawals affect your AWB in the same manner as your LWB as described in the "Withdrawals" section above, with the following exception. If you begin taking AWB withdrawals before you reach the minimum age to qualify for payments under LWB, when you reach the minimum age any withdrawals in excess of your LWB amount will subject your LWB and RBB to a partial withdrawal reduction, even if your withdrawal does not exceed your AWB. This could serve to decrease the amount of your future monthly payments under LWB, and the length of the time period during which you may continue to take payments under AWB. SHOULD I TAKE WITHDRAWALS UNDER LWB OR AWB? The GMWB for Life rider works best, and is designed, for the Contract Owner who can wait until the minimum age is attained to qualify for LWB payments. If you take your first withdrawal after you have reached the minimum age to qualify for LWB payments, payments under AWB or LWB are equal and the same. However, if you take your first withdrawal before you have reached the minimum age to qualify 44 for LWB payments, the AWB or LWB payments available to you when you reach the minimum age may not be equal. AWB is designed for the Contract Owner who has undergone a change in circumstances and wants to take withdrawals before reaching the minimum age to qualify for LWB payments. If you choose to take AWB payments before you qualify for LWB payments, you should consider that the charges for the GMWB for Life rider are designed to support LWB payments for life, and that you may be paying a higher charge without receiving the full benefit. IF YOU CONTINUE TO MAKE WITHDRAWALS IN EXCESS OF THE LWB ONCE THE MINIMUM AGE TO QUALIFY FOR LWB HAS BEEN REACHED, YOU MAY EVENTUALLY LOSE ANY BENEFIT UNDER LWB. Whether you choose to access your money using the LWB, AWB, or Guaranteed Principal Option depends on your individual financial circumstances and the performance of your Contract. You should consult with your financial adviser to determine which method is best for you. TAX-QUALIFIED DISTRIBUTION PROGRAMS. Subject to certain limitations and restrictions, your LWB and AWB will not incur a recalculation as a result of distributions taken under certain eligible Tax-Qualified Distribution Programs ("Tax-Qualified Distribution Programs"). Instead, such distributions will reduce the RBB by the amount of the withdrawal, but will not affect the LWB or AWB. The following Tax-Qualified Distribution Programs are eligible. Only certain types of distribution methods are eligible as described below. Please consult with your tax adviser to make sure you are eligible: 1) distributions relating to this Contract intended to satisfy the required minimum distribution rules under Internal Revenue Code of 1986, as amended, ("Code"), Code Section 401(a)(9) and the Treasury Regulations promulgated thereunder, as applicable, to a qualified retirement plan (Code Section 401), a tax-sheltered annuity (Code Section 403(b)), an individual retirement annuity (Code Section 408(b)), or an eligible deferred compensation plan (Code Section 457(b)), which required minimum distribution is calculated using the Uniform Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-2) and/or the Joint and Last Survivor Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-3), and for distributions where the employee (owner) dies before entire interest is distributed as described in Code Section 401(a)(9)(B)(iii) calculated using the Single Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-1), as appropriate, or as otherwise required to be calculated under the Code and the regulations thereunder; 2) distributions intended to satisfy the exception under Code Section 72(s)(2) to the required minimum distribution rules which apply after the death of the holder of a nonqualified annuity contract provided under Code Section 72(s)(1) for certain amounts payable over the life, or over a period no longer than the remaining life expectancy, of a designated beneficiary relating to this Contract; 3) distributions intended to satisfy the exception under Code Section 72(t)(2)(A)(iv) from the 10% additional tax on early distributions from qualified retirement plans imposed by Code Section 72(t)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the participant or the joint lives (or joint life expectancies) of such participant and his designated beneficiary, provided, however, the amount of the substantially equal periodic payments must be calculated under the required minimum distribution method set forth in the Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Revenue Ruling 2002-62, 2002-42 I.R.B. 710, or as subsequently determined under the tax law (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program) relating to this Contract; or 4) distributions intended to satisfy the exception under Code Section 72(q)(2)(D) from the 10% additional tax on early distributions from nonqualified annuity contracts imposed by Code Section 72(q)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of such taxpayer and his designated beneficiary, provided, however, the amount of the substantially equal periodic payment must be calculated under the required minimum distribution method set forth in Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Internal Revenue Bulletin 2004-9, Notice 45 2004-15, page 526, or as subsequently determined under the tax law (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program) relating to this Contract. You are subject to the following limitations if you are taking distributions under a Tax-Qualified Distribution Program: YOU MUST ENROLL IN OUR MANAGED DISTRIBUTION PROGRAM. If you do not enroll or if you cancel your enrollment, you can continue to make withdrawals under your GMWB for Life rider, however your RBB, LWB and AWB may be subject to a recalculation. Under our Managed Distribution Program, you select the frequency of payments. You may change the frequency of your payments only once every two years after your GMWB for Life Anniversary, and you may only make the change during the 30- day period after your GMWB for Life Anniversary. At the time you purchase GMWB for Life, your initial frequency of payment must be annual if you did not take distributions pursuant to your Tax-Qualified Distribution Program at your previous financial institution, unless you turn age 70 1/2 before the first GMWB for Life Anniversary. You are advised to take your required distributions prior to purchasing GMWB for Life in order to have the choice of taking your distributions on a monthly, quarterly, semi-annual or annual basis. If you do not take your distribution before purchasing GMWB for Life, you will be limited to taking annual distributions for the first two Contract Years after which time you can choose an alternate mode of distribution. ANY WITHDRAWALS OUTSIDE THE PROGRAM MAY DECREASE YOUR BENEFIT. All withdrawals under your Contract must be made pursuant to the Tax-Qualified Distribution Program during any 12-month period after an anniversary of your purchase of GMWB for Life (a "GMWB for Life Year"). If during any GMWB for Life Year you take any additional withdrawals that are not made pursuant to the Program, you can continue to make withdrawals under your GMWB for Life rider, however for the remainder of the GMWB for Life Year your RBB, LWB and AWB may be subject to a partial withdrawal reduction. To avoid any partial withdrawal reduction, all withdrawals under your Contract must be made pursuant to your Tax-Qualified Distribution Program. DISTRIBUTIONS UNDER THE TAX-QUALIFIED DISTRIBUTION PROGRAM WILL BE DETERMINED AS IF YOUR CONTRACT UNDER WHICH YOUR GMWB FOR LIFE RIDER WAS ISSUED WERE THE ONLY CONTRACT SUBJECT TO THE ABOVE TAX RULES. TERMINATION. Once you purchase the GMWB for Life rider, you cannot cancel it. However, the rider will automatically terminate when: - you make a full withdrawal of your Contract Value; - you apply all of your Contract Value to an Annuity Option; - the Contract Owner dies and a death benefit under your Contract becomes payable, unless the Contract is continued by the beneficiary; - the Annuitant dies and the Annuitant is not the person whose life is used to determine guaranteed payments; - you transfer ownership of your Contract, or change the spousal beneficiary under the Joint Life Option; - you opt to take the Guaranteed Principal Option; or - you terminate your Contract. Charges for the rider cease upon termination. OTHER INFORMATION. You should also consider the following before you purchase the GMWB for Life rider: - The charge for the GMWB for Life rider continues for the life of the rider, even if you never need nor exercise the guarantees under the rider. - Withdrawals that are greater than your LWB or AWB will erode your guarantee by serving to more rapidly deplete your RBB. 46 - The GMWB for Life rider is not transferable; if you transfer ownership of your Contract, or change the spousal beneficiary under the Joint Life Option, the rider terminates automatically. - If you only plan to take AWB, or take the Guaranteed Principal Option, you should consider the higher cost of the GMWB for Life rider which is designed to support payments for life under LWB. - If you continue to take AWB once eligible for LWB, you may eventually lose any benefit under LWB. EFFECT ON THE DEATH BENEFIT. The GMWB for Life rider terminates when a death benefit under your Contract becomes payable, except in certain circumstances when the beneficiary may continue the Contract along with the GMWB for Life rider (see "Contract Continuation by Beneficiary" and "Contract Value Reduces to Zero" below). However, if your Contract provides for a death benefit amount that is the greatest of multiple benefits including the Adjusted Purchase Payment, your Adjusted Purchase Payment will not be calculated as described in the "Death Benefit" section, but instead will be equal to your aggregate Purchase Payments minus your aggregate withdrawals from the date the rider is added to your Contract. If the Annuitant dies before the Contract Owner(s), then the GMWB for Life rider will terminate and the beneficiary cannot continue the rider. Under the Joint Life Option, if the spousal beneficiary predeceases the Contract Owner, the rider continues and no death benefit is paid out; the Contract Owner may then name a new beneficiary for the purposes of the death benefit provisions under the Contract, but not for purposes of the GMWB for Life rider. Notwithstanding anything in the GMWB for Life rider to the contrary: a) In order to comply with section 72(s) of the Code, if the GMWB for Life rider is purchased with respect to a non-qualified annuity contract, any death benefit paid out under the terms of the GMWB for Life rider to a non-spousal Beneficiary upon the death of the owner (or to a payee other than the spouse of the Annuitant on the death of the Annuitant, where the Contract is owned by a non-natural person) (including payments made under the "Contract Continuation by the Beneficiary" provision, "Contract Value Reset to Zero" provision, and any other payments of the AWB and RBB otherwise made after a death) will be paid out in non-increasing annual installments over a period no longer than the remaining single life expectancy of the Beneficiary under the appropriate IRS life expectancy table under Code Section 72 and the regulation thereunder or as otherwise provided under the tax law for non-qualified annuities and under Code Section 72(s). Such payments must begin within 12 months of the date of death in all cases. b) Where the Beneficiary or other payee under paragraph (a) is not a natural person, such period may not extend beyond the fifth anniversary of the date of the death. c) If the GMWB for Life rider is issued under a Qualified Contract and the death occurs on or after the Required Beginning Date of distributions to the participant under Code Section 401(a)(9), the period for the payments described in paragraph (a) above may not exceed the longer of: (i) the Beneficiary's or other payee's remaining life expectancy or (ii) the deceased Annuitant's remaining life expectancy in the year of his or her death, reduced by one for each calendar year thereafter. d) Where under other sections of the GMWB for Life rider, any payment described in this section ("Effect on Death Benefits") is payable over a shorter period of time, required to begin at an earlier date, or would otherwise be paid more rapidly than under this section ("Effect on Death Benefit"), then such payment will be made under the terms of such other provision. If annual payments must exceed the AWB in order to comply with these requirements, then these payments will not result in a Partial Withdrawal Reduction to the RBB and AWB as described in the RBB and AWB sections of the GMWB for Life rider. Each withdrawal will reduce the RBB by the amount of the withdrawal, and will not affect the AWB. You should consult with your tax advisor prior to purchasing a variable annuity contract and optional rider, such as the GMWB for Life rider. CONTRACT CONTINUATION BY THE BENEFICIARY. Under the Joint Life Option, if the spousal beneficiary elects to continue the Contract instead of receiving the death benefit, the GMWB for Life rider will also continue for the benefit of the 47 spouse. Upon the death of the spouse, the LWB will terminate. However, if there are any remaining AWB payments, such payments may be continued by a surviving beneficiary instead of receiving a death benefit. In such case payments will be made annually on the next rider anniversary, no further resets will be made of the RBB, and the RBB will be reduced by the amount of each payment. Upon the death of such beneficiary, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. Under the Single Life Option, the LWB terminates when a death benefit becomes payable under the Contract, regardless of whether the Contract is continued by a beneficiary. If a non-spousal beneficiary continues the Contract, even under the Joint Life Option, the LWB terminates. However, if there are any remaining AWB payments, such payments may also be continued by a surviving beneficiary as described in the preceding paragraph. Payments made under the Continuation by the Beneficiary provision of the GMWB for Life rider will be adjusted to the extent required so that upon the death of the owner (or upon the death of the Annuitant where the owner is not a natural person), the RBB is paid out at regular intervals in non-increasing annual payments over a period no longer than permitted under Code Section 72(s) in the case of a rider made a part of a non-qualified Contract. For riders issued under a Qualified Contract, the payments under the Continuation by the Beneficiary provision of the GMWB for Life rider must be paid out at regular intervals in non-increasing annual payments made over a period no longer than that permitted under Code Section 401(a)(9) and the regulations thereunder. Payments to the Beneficiary or to the owner's estate on the death of the owner, or payments to the Beneficiary's estate (or to the successor beneficiary) in the case of the Beneficiary's death must be made beginning within twelve months of such death in each case and will be made at least as rapidly as under the payment method, if any, being used at the time of the death. CONTRACT VALUE REDUCES TO ZERO. If your Contract Value reduces to zero for reasons other than you making 1) a withdrawal that exceeds your AWB or LWB or 2) a full withdrawal of your Contract Value, and the minimum age has already been reached to be eligible to receive LWB payments, then we will automatically begin paying you annual payments equal to the LWB as long as you (or you or your spouse under the Joint Life Option) are alive unless you elect to receive annual payments equal to the AWB as set forth below. Payments will be made once a year on each rider effective date anniversary starting with the next anniversary. Each payment will reduce the RBB by the amount of the payment. Alternatively, you have the option to elect in writing to instead receive annual payments equal to the current AWB, as of the date your written election is received in good order at our Home Office, until the RBB is depleted. Upon such election, we will begin paying you the AWB starting on the next rider effective date anniversary following the date your written election is received in good order in our Home Office. If the minimum age to be eligible for LWB payments has not yet been reached, and the RBB is greater than zero, we will automatically begin paying you annual payments equal to the AWB until the RBB is depleted. All other rights under your Contract cease, we will no longer accept subsequent Purchase Payments and no future resets will be allowed. All other optional endorsements are terminated without value. Upon your death (or your or your spouse's death under the Joint Life Option), your Beneficiary(s) will receive the following: 1) Under the Single Life Option, the LWB will be set to $0.00 and the beneficiary(s) will receive annual payments equal to the current AWB until the RBB is depleted. No other death benefit or Enhanced Stepped- Up Provision (if any) will be paid if the RBB is already equal to zero upon the owner's death. The death benefit under the Contract is cancelled. Upon the beneficiary's death, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. 2) Under the Joint Life Option, the terms of the rider continue and we will continue to your spouse annual payments equal to either the LWB or AWB according to your election prior to your death and the terms described above. The death benefit under the Contract is cancelled. Upon the spouse's death, the LWB will be set to $0.00 and the spousal beneficiary's estate or Beneficiary, as applicable, will receive annual payments equal to the current AWB until the RBB is depleted. Upon that beneficiary's death, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other 48 designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. 3) Payments made under the "Contract value reduces to Zero" provision of the GMWB for Life rider will be adjusted to the extent required so that upon the death of the owner, the RBB is paid out at regular intervals in non-increasing annual payments over a period no longer than permitted under Code Section 72(s) in the case of a rider made a part of a non-qualified Contract. 4) For riders issued under a Contract that is issued to an Individual Retirement Account under Code Section 408(a), an Individual Retirement Annuity under Code Section 408(b), a Roth IRA annuity under Code Section 408A, a SIMPLE IRA annuity under Code Section 408(p) or any other annuity under an employer's retirement plan that is subject to the required minimum distribution rules under Code Section 401(a)(9), including the after-death distribution rules under Code Section 401(a)(9)(B) ("Qualified Contracts"), The payments under this provision of the GMWB for Life rider will be adjusted as required to be paid out in a non-increasing annual payments over a period no longer than permitted under Code Section 401(a)(9). Payments to the Beneficiary (or to the owner's estate on the death of the owner), or payments to the successor beneficiary (or to the Beneficiary's estate) in the case of the Beneficiary's death must be made beginning within twelve months of such death in each case and will be made at least as rapidly as under the payment method, if any, being used at the time of the death. GUARANTEED MINIMUM ACCUMULATION BENEFIT ("GMAB" OR "ACCUMULATION ADVANTAGE") We offer a Guaranteed Minimum Accumulation Benefit rider ("GMAB Rider") for an additional charge. The GMAB Rider guarantees that your Contract Value will not be less than a minimum amount at the end of a specified number of years. If your Contract Value is less than the minimum guaranteed amount on the Rider Maturity Date, we will apply additional amounts to increase your Contract Value so that it is equal to the guaranteed amount. If you elect the GMAB Rider, we require that you allocate your Contract Value according to certain limitations and restrictions, and agree to periodic rebalancing of your Contract Value. Currently, the GMAB Rider may only be elected at the time that you purchase your Contract. We may make the GMAB Rider available to Contracts after their effective date at a later date subject to certain additional terms and restrictions. You may not elect the GMAB Rider if you have also elected the GMWB Rider offered under the Contract. BENEFIT DESCRIPTION & KEY TERMS If you elect the GMAB Rider, we guarantee that if your Contract Value is less than your Benefit Base (defined below) on the Rider Maturity Date (defined below), we will apply additional amounts to your Contract to increase your Contract Value so that it is equal to the Benefit Base. Any additional amounts that we apply to your Contract to increase the Contract Value to equal the Benefit Base will be allocated to the money market Subaccount on the Rider Maturity Date. Any such additional amounts will be treated as earnings under your Contract, and will not be subject to a withdrawal charge once they are applied to your Contract. If your Contract Value is equal to or greater than the Benefit Base on the Rider Maturity Date, the GMAB Rider will terminate and no additional amounts will be applied to your Contract. Benefit Base: The Benefit Base is equal to the Base Calculation Amount on the Rider Maturity Date and represents the minimum Contract Value that we guarantee on such date. We do not guarantee the Benefit Base on any day other than the Rider Maturity Date. The Benefit Base will not be available for withdrawal nor will it be used to calculate any benefits under the Contract prior to the Rider Maturity Date. The Benefit Base can never be less than zero. Base Calculation Amount: We calculate the Base Calculation Amount to determine the Benefit Base. On the Rider Effective Date, the Base Calculation Amount is equal to your initial Purchase Payment. Aggregate Purchase Payments over $1 million are subject to our consent, including our consent to limit the Base Calculation Amount applicable to your GMAB Rider. We may impose a maximum Base Calculation Amount (and thereby, a maximum Benefit Base) in the future for Contract Owners who elect the GMAB Rider, but the maximum Base Calculation Amount will never be 49 less than the Base Calculation Amount to which we have previously consented. We reserve the right to restrict increases in your maximum Base Calculation Amount based on subsequent Purchase Payments if such Purchase Payments would cause you Base Calculation Amount to be greater than our maximum Base Calculation Amount. We will not limit or impose a maximum Base Calculation Amount if your aggregate Purchase Payments are under $1 million. If you purchase more than one contract issued by the Company in the same calendar year and elect the GMAB Rider on each contract, the $1,000,000 Benefit Base maximum may be applied to the aggregate Benefit Base for all contracts. State variations may apply. The Base Calculation Amount will not be used to calculate any benefits under the Contract, other than the GMAB Rider Liquidity Option described below. The Base Calculation Amount can never be less than zero. The Base Calculation Amount may change between the Rider Effective Date and Rider Maturity Date if you make additional Purchase Payments or request withdrawals from your Contract. - If you make an additional Purchase Payment(s) within 12 months after the Rider Effective Date, we will increase the Base Calculation Amount by the amount of the Purchase Payment. If you make an additional Purchase Payment(s) more than 12 months after the Rider Effective Date, we will not increase the Base Calculation Amount; however your Contract Value will increase, reflecting the amount of the Purchase Payment. Therefore, Purchase payments made more than 12 months after the Rider Effective Date may have a significant impact on whether a benefit is due under the GMAB Rider. Even if Purchase Payments made prior to and during the 12-month period after the Rider Effective Date lose significant value, if on the Rider Maturity Date the Contract Value, which includes all Purchase Payments, is equal to or greater than the Benefit Base, which includes all the Purchase Payments prior to or during that 12-month period, then no benefit is due. You should consider this prior to making an additional Purchase Payment more than 12 months after the Rider Effective Date. The GMAB Rider may not be appropriate for you if you anticipate making Purchase Payments after the 12-month period. - If you request a partial withdrawal, we will decrease the Base Calculation Amount in effect as of the date of the request by the actual dollar amount of the withdrawal or the Partial Withdrawal Reduction amount, whichever is greater. The Partial Withdrawal Reduction amount is equal to the Base Calculation Amount in effect immediately prior to the reduction for the partial withdrawal multiplied by the actual amount of the partial withdrawal divided by the Contract Value immediately prior to the partial withdrawal. When determining the impact of a partial withdrawal on the Base Calculation Amount, the actual amount of the partial withdrawal will include any withdrawal charges and taxes that were deducted at the time of the partial withdrawal. Rider Maturity Date: The Rider Maturity Date is the anniversary of the Rider Effective Date that corresponds to the number of years you elect as the Rider Period (described below). Rider Period: The Rider Period is the number of years you select between the Rider Effective Date and the Rider Maturity Date. Currently, we only offer a Rider Period of ten (10) years. We may offer Rider Periods of lesser or greater duration available in the future, subject to additional terms, conditions and limitations. EXAMPLES OF BENEFIT BASE/BASE CALCULATION AMOUNT Below are examples of how we determine the Benefit Base and Base Calculation Amount, as well as examples showing the impact of subsequent Purchase Payments and partial withdrawals. For purposes of each example below, assume that you elect the GMAB Rider on the effective date of your Contract and that your initial Purchase Payment is $100,000. The example below illustrates the impact of the guarantee provided under the GMAB Rider assuming that your Contract Value increases or decreases during the Rider Period. 50 EXAMPLES OF GMAB RIDER ON THE RIDER MATURITY DATE
- ------------------------------------------------------------------------------------------------------------------- INCREASING CONTRACT VALUE DECLINING CONTRACT VALUE - ------------------------------------------------------------------------------------------------------------------- BASE BASE CONTRACT CALCULATION CONTRACT CALCULATION VALUE AMOUNT BENEFIT BASE VALUE AMOUNT BENEFIT BASE - ------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 Not Applicable $100,000 $100,000 Not Applicable - ------------------------------------------------------------------------------------------------------------------- VALUE AS OF RIDER MATURITY DATE $110,000 $100,000 $100,000 $90,000 $100,000 $100,000 - ------------------------------------------------------------------------------------------------------------------- AMOUNT APPLIED TO CONTRACT VALUE DUE TO GMAB RIDER $0(1) $10,000(2) - -------------------------------------------------------------------------------------------------------------------
(1) If your Contract Value on the GMAB Rider Maturity Date is equal to or greater than the Benefit Base, we will not apply any additional amounts to your Contract Value. Your GMAB Rider will terminate and we will no longer deduct the annual charge for the rider. (2) If your Contract Value on the GMAB Rider Maturity Date is less than the Benefit Base, we will apply additional amounts to your Contract Value so that it is equal to the Benefit Base. The additional amount will be added to the money market Subaccount. The example below illustrates the impact of making an additional $10,000 Purchase Payment while the GMAB Rider is in effect, specifically the different manner in which we will treat Purchase Payments for purpose of determining the Base Calculation Amount based on when the Purchase Payment is made. EXAMPLES OF ADDITIONAL PURCHASE PAYMENTS -- IMPACT ON BASE CALCULATION AMOUNT
- ------------------------------------------------------------------------------------------------------------------- ADDITIONAL PURCHASE PAYMENT WITHIN 12 MONTHS ADDITIONAL PURCHASE PAYMENT AFTER 12 MONTHS - ------------------------------------------------------------------------------------------------------------------- BASE BASE CONTRACT PURCHASE CALCULATION CONTRACT PURCHASE CALCULATION VALUE PAYMENT AMOUNT VALUE PAYMENT AMOUNT - ------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 - ------------------------------------------------------------------------------------------------------------------- VALUE BEFORE ADDITIONAL PURCHASE PAYMENT $110,000 Not Applicable $100,000 $110,000 Not Applicable $100,000 - ------------------------------------------------------------------------------------------------------------------- VALUE AFTER ADDITIONAL PURCHASE PAYMENT $120,000 $10,000 $110,000 $120,000 $10,000 $100,000 - -------------------------------------------------------------------------------------------------------------------
The example below illustrates the impact of making a $10,000 partial withdrawal while the GMAB Rider is in effect, specifically the difference in the manner in which a partial withdrawal affects your Base Calculation Amount in an increasing market versus a decreasing market. The example assumes that the partial withdrawal does not qualify under the GMAB Rider Liquidity Option described below. EXAMPLES OF PARTIAL WITHDRAWALS -- IMPACT ON BASE CALCULATION AMOUNT
- --------------------------------------------------------------------------------------------------------------------------- ASSUMING INCREASING CONTRACT VALUE - --------------------------------------------------------------------------------------------------------------------------- BASE REDUCTION TO BASE CONTRACT CALCULATION PARTIAL WITHDRAWAL PARTIAL SURRENDER CALCULATION VALUE AMOUNT AMOUNT REDUCTION AMOUNT - --------------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY PRIOR TO PARTIAL WITHDRAWAL $110,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY [100,000 x FOLLOWING PARTIAL 10,000/110,000] = WITHDRAWAL $100,000 $90,000 $10,000 $9,091 $10,000 - ---------------------------------------------------------------------------------------------------------------------------
51
- --------------------------------------------------------------------------------------------------------------------------- ASSUMING DECLINING CONTRACT VALUE - --------------------------------------------------------------------------------------------------------------------------- BASE REDUCTION TO BASE CONTRACT CALCULATION PARTIAL WITHDRAWAL PARTIAL SURRENDER CALCULATION VALUE AMOUNT AMOUNT REDUCTION AMOUNT - --------------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY PRIOR TO PARTIAL WITHDRAWAL $90,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY [100,000 x FOLLOWING PARTIAL 10,000/90,000] = WITHDRAWAL $80,000 $88,889 $10,000 $11,111 $11,111 - ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT LIMITATIONS/RESTRICTIONS/REBALANCING If you elect the GMAB Rider, your Contract will be subject to additional limitations and restrictions on your right to allocate Contract Value among the Subaccounts, your right to request transfers between Subaccounts and your right to allocate Purchase Payments to Subaccounts. We classify each Subaccount as Class A or Class B based on our assessment of the relative risk and volatility of the Underlying Fund in which the Subaccount invests. Subaccounts that we classify as "Class A" will generally invest in Underlying Funds that invest primarily in equity securities, or securities that we believe will approximate the relative volatility and relative risk of equity securities. Subaccounts that we classify as "Class B" will generally invest in Underlying Funds that invest primarily in debt securities or cash. A Subaccount that invests in an Underlying Fund that invests in a combination of equity securities and debt securities will be classified as either Class A or Class B. We have sole discretion to determine whether a Subaccount is classified as Class A or Class B. We reserve the right to change the classification of a Subaccount from Class A to Class B or from Class B to Class A. Any change in Subaccount classification will apply to Contract Owners who elect the GMAB Rider after the effective date of the change in classification, as well as existing Contract Owner who have the GMAB Rider in force as of the effective date of the change in classification. You will be required to establish a personal allocation profile at the time that you elect the GMAB Rider specifying the Subaccounts and the allocation percentages for each Subaccount in which you intend to allocate your initial Purchase Payment and any credits that we apply to your initial Purchase Payment. Your personal allocation profile will remain in effect for any additional Purchase Payments you make until you elect to change it. Your personal allocation profile may include any combination of Class A and Class B Subaccounts so long as the overall allocation does not violate the limitations and restrictions described below. You may only allocate up to 80% of your initial Purchase Payment and any credits that we apply to your initial Purchase Payment to Subaccounts that we classify as Class A. You must allocate 20% or more of your initial Purchase Payment and any credits that we apply to your initial Purchase Payment to Subaccounts that we classify as Class B. Any time that you request a transfer of Contract Value between Subaccounts or make an additional Purchase Payment, you must comply with the following limitations or restrictions: - You may allocate your Contract Value in one or more of the Class A Subaccounts that you choose; however, you may only allocate up to 80% of your Contract Value to Subaccounts that we classify as Class A. - You may allocate your Contract Value in one or more of the Class B Subaccounts that you choose; however, you must allocate 20% or more of your Contract Value to Subaccounts that we classify as Class B. - If you make an additional Purchase Payment, you can only allocate up to 80% of the Purchase Payment to Subaccounts that we classify as Class A. - If you make an additional Purchase Payment, you must allocate 20% or more of the Purchase Payment to Subaccounts that we classify as Class B. 52 Any request to transfer Contract Value or allocate subsequent Purchase Payments that would violate these limitations and restrictions will be rejected. You will be required to submit a new request that complies with the applicable limitation or restriction. We will not be responsible for any financial impact caused by delays in processing your transaction if your request is rejected because it does not comply with an applicable limitation or restriction. Rebalancing: On a quarterly basis, we will rebalance your Contract Value according to the current personal allocation profile that you chose for Class A and Class B Subaccounts. Unless you instruct us otherwise, we will rebalance your Contract Value in each Class A and Class B Subaccount, respectively, according to the relative proportions indicated in your personal allocation profile. Below is a list of the Subaccounts that are currently classified as Class B Subaccounts. All remaining Subaccounts offered under the Contract are classified as Class A Subaccounts.
CLASS B SUBACCOUNTS/ UNDERLYING FUNDS -------------------------------------------------------- METROPOLITAN SERIES FUND, INC. BlackRock Money Market Portfolio -- Class A MFS(R) Total Return Portfolio -- Class B PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio Pioneer Global High Yield VCT Portfolio Pioneer Ibbotson Growth Allocation VCT Portfolio Pioneer Ibbotson Moderate Allocation VCT Portfolio Pioneer Strategic Income VCT Portfolio
GMAB RIDER LIQUIDITY OPTION During the 90-day period prior to the 5th anniversary of the Rider Effective Date, you may request a partial withdrawal of up to 15% of the Base Calculation Amount immediately prior to the request. Under this option, we will reduce the Base Calculation Amount by the dollar amount of the withdrawal so long as the withdrawal does not exceed the amount available for withdrawal under this provision. If you request a partial withdrawal greater than 15% of the Base Calculation Amount, we will reduce the Base Calculation Amount by the dollar amount of the withdrawal for amounts withdrawn up to the 15% limit and, for the excess amount, we will reduce the Base Calculation Amount as described above under the sub-section "Base Calculation Amount." Any partial withdrawal you make under this provision will be made free of withdrawal charges that would otherwise apply under the terms of your Contract. Additionally, any withdrawals taken under this feature will reduce your Free Withdrawal Allowance under the Contract. This feature can only be exercised once before the Rider Maturity Date and must occur during the 90-day period prior to the 5th anniversary of the Rider Effective Date. We reserve the right to require you to exercise your rights under this provision on the anniversary of your Rider Effective Date. You must notify us in a form acceptable to us that you are exercising your rights under this GMAB Rider Liquidity Option. CANCELLATION OF THE GMAB RIDER You may elect to cancel the GMAB Rider at any time after the 5th anniversary of the GMAB Rider Effective Date. Upon cancellation, we will no longer deduct the annual charge for the GMAB Rider. Upon cancellation of the GMAB Rider, all rights and benefits under the GMAB Rider will cease. Upon cancellation, we will no longer apply any of the investment limitations and restrictions described above. GMAB Rider Exchange Option -- If, during the 90-day period following the 5th anniversary of the Rider Effective Date, your Contract Value is greater than the Base Calculation Amount, you may elect to cancel the GMAB Rider and simultaneously elect either a new GMAB Rider or a GMWB Rider. You will be required to meet any eligibility requirements that apply to each rider at the time you make the election. Exchange for New GMAB Rider: If you elect to cancel the GMAB Rider and elect the GMAB Rider that we make available under this Rider Exchange Option, the Rider Effective Date for your new GMAB Rider will be the date we receive your request in good order. Your new GMAB Rider will be subject to a new 53 Rider Maturity Date. The Benefit Base of your prior GMAB Rider will not apply to the new GMAB Rider. Your Contract Value as of the date you elect to exchange your GMAB Rider will be used to determine your initial Base Calculation Amount for the new rider. The new GMAB Rider will be subject to a new charge that may be higher or lower than the charge you paid for your original GMAB Rider. The GMAB Rider that we make available under this Rider Exchange Option will always feature a ten year Rider Period and may include other Rider Period durations. Exchange for GMWB Rider: If you elect to cancel the GMAB Rider and elect the GMWB Rider that we make available under this Rider Exchange Option, the Rider Effective Date for your GMWB Rider will be the date we receive your request. The GMWB Rider that we make available under this Rider Exchange Option will feature a 10% minimum annual withdrawal amount. The GMWB Rider will be subject to the charge then in effect for a GMWB Rider that is offered under this Rider Exchange Option. TERMINATION The GMAB Rider will terminate on the earliest to occur of: (1) the Rider Maturity Date; (2) the date you elect to begin receiving Annuity Payments under the Contract; (3) the date you fully surrender your Contract; (4) the date you elect to cancel the GMAB Rider (including assignments); (5) the date we receive Due Proof of Death if the surviving spouse or beneficiary does not elect to continue the Contract (if allowed); or (6) the date the GMAB Rider is cancelled and replaced with a new GMAB Rider or GMWB Rider under the Rider Exchange Option. The annual charge for the GMAB Rider will no longer be deducted and all guarantees will cease when the rider is terminated. Further, any investment limitations and restrictions will no longer apply after the GMAB Rider is terminated. If the GMAB Rider is terminated before the Rider Maturity Date, the Benefit Base will not be paid. CHARGE FOR GMAB If you elect the GMAB Rider, we will deduct an additional charge on each business day that is equal to an annual charge of 0.50% from your Contract Value invested in the Subaccounts. The charge will be applied and will not change from the Rider Effective Date until the Rider Maturity Date unless the rider is cancelled or terminates prior to such date. If you elect to terminate the GMAB Rider prior to the Rider Maturity Date, the charge will no longer be deducted. If you elect to exchange this GMAB Rider and elect a new GMAB Rider under the Rider Exchange Option (described above), the current charge in effect for the GMAB rider will be applied, which may be higher or lower than the charge you paid for this rider. ADDITIONAL CONSIDERATIONS - Your Contract cannot have any outstanding loans if you elect the GMAB Rider. Further, you may not request a loan from your Contract if you have previously elected the GMAB Rider. - If you die while the GMAB Rider is in effect, and your surviving spouse or Beneficiary elects to continue the Contract under the spousal contract continuance or beneficiary contract continuance provision, then the GMAB Rider will remain in effect and will continue until the Rider Maturity Date. - Any DCA Program that is in effect while the GMAB Rider is in effect must meet the investment limitations and restrictions of the GMAB Rider, as described above. In addition, you may not request a DCA Program that makes transfers from Class B Subaccounts to Class A Subaccounts. - If you are expecting to request withdrawals from your Contract, including withdrawals intended to satisfy required minimum distribution requirements, the impact of such withdrawals on the guarantees provided under the GMAB Rider will make the rider less valuable. 54 THE ANNUITY PERIOD - -------------------------------------------------------------------------------- MATURITY DATE Under the Contract, you can receive regular payments ("Annuity Payments"). You can choose the month and the year in which those payments begin ("Maturity Date"). You can also choose among payout options or elect a lump sum distribution. While the Annuitant is alive, you can change your selection any time up to the Maturity Date. Annuity Payments will begin on the Maturity Date stated in the Contract unless (1) you fully surrendered the Contract; (2) we paid the proceeds to the beneficiary before that date; or (3) you elected another date. Annuity Payments are a series of periodic payments (a) for life; (b) for life with a minimum number of payments assured; (c) for the joint lifetime of the Annuitant and another person, and thereafter during the lifetime of the survivor; or (d) for a fixed period. We may require proof that the Annuitant is alive before we make Annuity Payments. Not all options may be available in all states. Please be aware that once the Contract is annuitized, you are ineligible to receive the death benefit you have selected and any living benefit rider is terminated. You may choose to annuitize at any time after the first Contract Date anniversary. Unless you elect otherwise, the Maturity Date will be the Annuitant's 90(th) birthday for Non-qualified Contracts and the Annuitant's 70(th) birthday for Qualified Contracts or ten years after the effective date of the Contract, if later (this requirement may be changed by us). At least 30 days before the original Maturity Date, you may elect to extend the Maturity Date to any time prior to the Annuitant's 90th birthday or to a later date with our consent. You may use certain annuity options taken at the Maturity Date to meet the minimum required distribution requirements of federal tax law, or you may use a program of withdrawals instead. These mandatory distribution requirements take effect generally upon the death of the Contract Owner, or with certain Qualified Contracts upon either the later of the Contract Owner's attainment of age 70 1/2 or year of retirement; or the death of the Contract Owner. You should seek independent tax advice regarding the election of minimum required distributions. ALLOCATION OF ANNUITY You may elect to receive your Annuity Payments in the form of a variable annuity, a fixed annuity, or a combination of both. If, at the time Annuity Payments begin, you have not made an election, we will apply your Cash Surrender Value to provide an annuity funded by the same funding options as you have selected during the accumulation period. At least 30 days before the Maturity Date, you may transfer the Contract Value among the funding options in order to change the basis on which we will determine Annuity Payments. (See "Transfers.") VARIABLE ANNUITY You may choose an annuity payout that fluctuates depending on the investment experience of the Variable Funding Options. We determine the number of Annuity Units credited to the Contract by dividing the first monthly Annuity Payment attributable to each Variable Funding Option by the corresponding Accumulation Unit value as of 14 days before the date Annuity Payments begin. We use an Annuity Unit to measure the dollar value of an Annuity Payment. The number of Annuity Units (but not their value) remains fixed during the annuity period. DETERMINATION OF FIRST ANNUITY PAYMENT. Your Contract contains the tables we use to determine your first monthly Annuity Payment. If you elect a variable annuity, the amount we apply to it will be the Cash Surrender Value as of 14 days before the date Annuity Payments begin, less any applicable premium taxes not previously deducted. The amount of your first monthly payment depends on the annuity option you elected and the Annuitant's adjusted age. Your Contract contains the formula for determining the adjusted age. We determine the total first monthly Annuity Payment by multiplying the benefit per $1,000 of value shown in the Contract tables by the number of thousands of dollars of Contract Value you apply to that annuity option. The Contract tables factor in an assumed daily net investment factor of 3.0%. We call this your net investment rate. Your net investment rate of 3% corresponds to an annual interest rate of 3%. This means that if the annualized investment performance, after expenses, of your Variable Funding Options is less than 3%, then the dollar amount of your variable Annuity Payments will decrease. However, if the annualized investment performance, after expenses, of your Variable Funding Options is greater than 3%, then the dollar amount of your variable Annuity Payments will increase. 55 DETERMINATION OF SECOND AND SUBSEQUENT ANNUITY PAYMENTS. The dollar amount of all subsequent Annuity Payments changes from month to month based on the investment experience, as described above, of the applicable funding options. The total amount of each Annuity Payment will equal the sum of the basic payments in each funding option. We determine the actual amounts of these payments by multiplying the number of Annuity Units we credited to each funding option by the corresponding Annuity Unit value as of the date 14 days before the date the payment is due. FIXED ANNUITY You may choose a fixed annuity that provides payments that do not vary during the annuity period. We will calculate the dollar amount of the first fixed Annuity Payment as described under "Variable Annuity," except that the amount we apply to begin the annuity will be your Cash Surrender Value as of the date Annuity Payments begin. Payout rates will not be lower than that shown in the Contract. If it would produce a larger payment, the first fixed Annuity Payment will be determined using the Annuity Tables in effect on the Maturity Date. PAYMENT OPTIONS - -------------------------------------------------------------------------------- ELECTION OF OPTIONS While the Annuitant is alive, you can change your annuity option selection any time up to the Maturity Date. Once Annuity Payments have begun, no further elections are allowed. During the Annuitant's lifetime, if you do not elect otherwise before the Maturity Date, we will pay you (or another designated payee) the first of a series of monthly Annuity Payments based on the life of the Annuitant, in accordance with Annuity Option 2 (Life Annuity with 120 monthly payments assured). For certain Qualified Contracts, Annuity Option 4 (Joint and Last Survivor Life Annuity -- Annuity Reduced on Death of Primary Payee) will be the automatic option as described in the Contract. (See "Annuity Options.") The minimum amount that can be placed under an annuity option will be $2,000 unless we agree to a lesser amount. If any monthly periodic payment due is less than $100, the Company reserves the right to make payments at less frequent intervals, or to pay the Contract Value in a lump-sum. On the Maturity Date, we will pay the amount due under the Contract in accordance with the payment option that you select. You may choose to receive a single lump-sum payment. You must elect an option in writing, in a form satisfactory to the Company. Any election made during the lifetime of the Annuitant must be made by the Contract Owner. ANNUITY OPTIONS Subject to the conditions described in "Election of Options" above, we may pay all or any part of the Cash Surrender Value under one or more of the following annuity options. Payments under the annuity options are generally made on a monthly basis. We may offer additional options. Option 1 -- Life Annuity -- No Refund. The Company will make Annuity Payments during the lifetime of the Annuitant ending with the last payment before death. This option offers the maximum periodic payment, since there is no assurance of a minimum number of payments or provision for a death benefit for beneficiaries. Option 2 -- Life Annuity with 120, 180 or 240 Monthly Payments Assured. The Company will make monthly Annuity Payments during the lifetime of the Annuitant, with the agreement that if, at the death of that person, payments have been made for less than 120, 180 or 240 months, as elected, we will continue making payments to the beneficiary during the remainder of the period. Option 3 -- Joint and Last Survivor Life Annuity -- No Refund. The Company will make regular Annuity Payments during the lifetime of the Annuitant and a second person. When either person dies, we will continue making payments to the survivor. No further payments will be made following the death of the survivor. 56 Option 4 -- Joint and Last Survivor Life Annuity -- Annuity Reduced on Death of Primary Payee. The Company will make Annuity Payments during the lifetimes of the Annuitant and a second person. You will designate one as primary payee, and the other will be designated as secondary payee. On the death of the secondary payee, the Company will continue to make monthly Annuity Payments to the primary payee in the same amount that would have been payable during the joint lifetime of the two persons. On the death of the primary payee, the Company will continue to make Annuity Payments to the secondary payee in an amount equal to 50% of the payments, which would have been made during the lifetime of the primary payee. No further payments will be made once both payees have died. Option 5 -- Payments for a Fixed Period without Life Contingency. We will make periodic payments for the period selected. This option may not satisfy the minimum required distribution rules for Qualified Contracts. Consult a tax adviser before electing this option. Option 6 -- Other Annuity Options. We will make any other arrangements for Annuity Payments as may be mutually agreed upon. VARIABLE LIQUIDITY BENEFIT This benefit is only offered with the annuity option "Payments for a Fixed Period without Life Contingency." At any time after annuitization and before death, the Contract Owner may surrender and receive a payment equal to (A) minus (B), where (A) equals the present value of remaining certain payments, and (B) equals a withdrawal charge not to exceed the maximum withdrawal charge rate shown on the specifications page of the Contract multiplied by (A). The interest rate used to calculate the present value is a rate 1% higher than the Assumed (Daily) Net Investment Factor used to calculate the Annuity Payments. The remaining period certain payments are assumed to be level payments equal to the most recent period certain payment prior to the request for this liquidity benefit. A withdrawal charge is not imposed if the surrender is made after the expiration of the withdrawal charge period shown on the specifications page of the Contract. MISCELLANEOUS CONTRACT PROVISIONS - -------------------------------------------------------------------------------- RIGHT TO RETURN You may return the Contract for a full refund of the Contract Value plus any Contract charges and premium taxes you paid (but not any fees and charges the Underlying Fund assessed) within ten days after you receive it (the "right to return period"). You bear the investment risk of investing in the Variable Funding Options during the right to return period; therefore, the Contract Value we return may be greater or less than your Purchase Payment. If you purchase the Contract as an Individual Retirement Annuity, and return it within the first seven days after delivery, or longer if your state law permits, we will refund your Purchase Payment in full; during the remainder of the right to return period, we will refund the Contract Value (including charges). We will determine the Contract Value following the close of the business day on which we receive your Contract and a Written Request for a refund. Where state law requires a different period, or the return of Purchase Payments or other variations of this provision, we will comply. Refer to your Contract for any state-specific information. TERMINATION We reserve the right to terminate the Contract on any business day if your Contract Value as of that date is less than $2,000 and you have not made Purchase Payments for at least two years, unless otherwise specified by state law. Accordingly, no Contract will be terminated due solely to negative investment performance. Termination will not occur until 31 days after we have mailed notice of termination to your last known address and to any assignee of record. If we terminate the Contract, we will pay you the Cash Surrender Value less any applicable taxes. In certain states, we may be required to pay you the Contract Value. Federal tax law may impose additional restrictions on our right to terminate your traditional IRA, Roth IRA or other Qualified Contract. 57 REQUIRED REPORTS As often as required by law, but at least once in each Contract Year before the due date of the first Annuity Payment, we will furnish a report showing the number of Accumulation Units credited to the Contract and the corresponding Accumulation Unit value(s) as of the report date for each funding option to which the Contract Owner has allocated amounts during the applicable period. The Company will keep all records required under federal and state laws. SUSPENSION OF PAYMENTS The Company reserves the right to suspend or postpone the date of any payment or determination of values on any business day (1) when the New York Stock Exchange ("the Exchange") is closed; (2) when trading on the Exchange is restricted; (3) when an emergency exists, as determined by the SEC, so that the sale of securities held in the Separate Account may not reasonably occur, or so that the Company may not reasonably determine the value the Separate Account's net assets; or (4) during any other period when the SEC, by order, so permits for the protection of security holders. At any time, payments from the Fixed Account may be delayed up to 6 months. THE SEPARATE ACCOUNTS - -------------------------------------------------------------------------------- The Company sponsors Separate Account Thirteen and Separate Account Fourteen. When we refer to the Separate Account, we are referring to Separate Account Thirteen, except where the Contract was originally issued by MLACC, in which case, we are referring to Separate Account Fourteen. (See "The Insurance Company" .) Both Separate Account Thirteen and Separate Account Fourteen were established on November 14, 2002 and are registered with the SEC as unit investment trusts under the Investment Company Act of 1940, as amended. We will invest Separate Account assets attributable to the Contracts exclusively in the shares of the Variable Funding Options. We anticipate merging Separate Account Thirteen and Separate Account Fourteen with and into another separate account of the Company (the MetLife of CT Separate Account Eleven for Variable Annuities) during the fourth quarter of 2008 at the earliest, subject to regulatory approval. This merger will have no effect on the provisions of, and the rights and obligations under, the Contract. Similarly, the merger will not have any adverse impact on your Contract Value or any tax consequences for you. We hold the assets of the Separate Account for the exclusive and separate benefit of the owners of each Separate Account, according to the laws of Connecticut. Income, gains and losses, whether or not realized, from assets allocated to the Separate Account are, in accordance with the Contracts, credited to or charged against the Separate Account without regard to other income, gains and losses of the Company. The assets held by the Separate Account are not chargeable with liabilities arising out of any other business that we may conduct. Obligations under the Contract are obligations of the Company. Any obligations that exceed the assets in the Separate Account are payable by the Company's general account. The amount of the guaranteed death benefit that exceeds the Contract Value is paid from the Company's general account. Benefit amounts paid from the general account are subject to the financial strength and claims-paying ability of the Company. All investment income and other distributions of the funding options are payable to the Separate Account. We reinvest all such income and/or distributions in shares of the respective funding option at net asset value. Shares of the funding options are currently sold only to life insurance company separate accounts to fund variable annuity and variable life insurance contracts. Certain variable annuity separate accounts and variable life insurance separate accounts may invest in the funding options simultaneously (called "mixed" and "shared" funding). It is conceivable that in the future it may be disadvantageous to do so. Although the Company and the Variable Funding Options do not currently foresee any such disadvantages either to variable annuity contract owners or variable life policy owners, each Underlying Fund's Board of Directors intends to monitor events in order to identify any material conflicts between them and to determine what action, if any, should be taken. If a Board of Directors was to conclude that separate funds should be established for variable life and variable annuity separate accounts, the variable annuity contract owners would not bear any of the related expenses, but variable annuity contract owners and variable life insurance policy owners would no longer have the economies of scale resulting from a larger combined fund. 58 We reserve the right to transfer assets of the Separate Account to another separate account, and/or to modify the structure or operation of the Separate Account, subject to the necessary regulatory approvals. If we do so, we guarantee that the modification will not affect your Contract Value. PERFORMANCE INFORMATION In advertisements for the Contract, we may include performance figures to show you how a Variable Funding Option has performed in the past. These figures are rates of return or yield quotations shown as a percent. These figures show past performance of a Variable Funding Option and are not an indication of how a Variable Funding Option will perform in the future. Our advertisements may show performance figures assuming that you do not elect any optional features such as the E.S.P., GMAB or GMWB. However, if you elect any of these optional features, they involve additional charges that will serve to decrease the performance of your Variable Funding Options. You may wish to speak with your registered representative to obtain performance information specific to the optional features you may wish to select. Performance figures for each Variable Funding Option are based in part on the performance of a corresponding Underlying Fund. In some cases, the Underlying Fund may have existed before the technical inception of the corresponding Variable Funding Option. In those cases, we can create "hypothetical historical performance" of a Variable Funding Option. These figures show the performance that the Variable Funding Option would have achieved had it been available during the entire history of the Underlying Fund. In a low interest rate environment, yields for money market Subaccounts, after deduction of the Mortality and Expense Risk Charge, Administrative Expense Charge and the charge for any optional benefit riders (if applicable), may be negative even though the Underlying Fund's yield, before deducting for such charges, is positive. If you allocate a portion of your Contract Value to a money market Subaccount or participate in an asset allocation program where Contract Value is allocated to a money market Subaccount under the applicable asset allocation model, that portion of your Contract Value may decrease in value. FEDERAL TAX CONSIDERATIONS - -------------------------------------------------------------------------------- The following general discussion of the federal income tax consequences related to your investment in this Contract is not intended to cover all situations, and is not meant to provide tax or legal advice. Because of the complexity of the law and the fact that the tax results will vary depending on many factors, you should consult your tax and/or legal adviser regarding the tax implications of purchasing this Contract based upon your individual situation. For further tax information, an additional discussion of certain tax matters is contained in the SAI. You are responsible for determining whether your purchase of a Contract, withdrawals, income payments and any other transaction under your Contract satisfy applicable tax law. We are not responsible for determining if your employer's plan or arrangement satisfies the requirements of the Code and/or the Employee Retirement Income Security Act of 1974 (ERISA). GENERAL TAXATION OF ANNUITIES Congress has recognized the value of saving for retirement by providing certain tax benefits, in the form of tax deferral, for premiums paid under an annuity and permitting tax-free transfers between the various investment options offered under the Contract. The Internal Revenue Code ("Code") governs how earnings on your investment in the Contract are ultimately taxed, depending upon the type of contract, qualified or non-qualified, and the manner in which the money is distributed, as briefly described below. In analyzing the benefits of tax deferral it is important to note that the Jobs and Growth Tax Relief Reconciliation Act of 2003 amended Code Section 1 to reduce the marginal tax rates on long-term capital gains and dividends to 5% and 15%. The reduced rates apply during 2003 through 2008, and thereafter will increase to prior levels. Under current federal tax law, the taxable portion of distributions under variable annuity contracts and qualified plans (including IRAs) is not eligible for the reduced tax rate applicable to long-term capital gains and dividends. Earnings under annuity contracts, like interest payable on fixed investments (notes, bonds, etc.), continue to be taxed as ordinary income (top rate of 35%). The tax law provides deferred annuities issued after October 21, 1988 by the same insurance company or an affiliate in the same 59 calendar year to the same owner are combined for tax purposes. As a result, a greater portion of your withdrawals may be considered taxable income than you would otherwise expect. Although the law is not clear, the aggregation rule may also adversely affect the tax treatment of payments received under an income annuity where the owner has purchased more than one non-qualified annuity during the same calendar year from the same or an affiliated company after October 21, 1988, and is not receiving income payments from all annuities at the same time. Please consult your own tax advisor. STATE AND LOCAL TAXES. The rules for state and local income taxes may differ from the federal income tax rules. Purchasers and prospective purchasers of the Contract should consult their own tax advisers and the law of the applicable taxing jurisdiction to determine what rules and tax benefits apply to the Contract. PENALTY TAX FOR PREMATURE DISTRIBUTIONS. For both Qualified and Non-qualified Contracts, taxable distributions taken before the Contract Owner has reached the age of 59 1/2 will be subject to a 10% additional tax penalty unless the distribution is taken in a series of periodic distributions, for life or life expectancy, or unless the distribution follows the death or disability of the Contract Owner. Other exceptions may be available in certain qualified plans. The 10% tax penalty is in addition to any other penalties that may apply under your Contract and the normal income taxes due on the distribution. TAX-FREE EXCHANGES. Code Section 1035 provides that, if certain conditions are met, no gain or loss is recognized when an annuity contract is received in exchange for a life insurance policy, endowment, or annuity contract. Since different annuity contracts have different expenses, fees and benefits, a tax- free exchange could result in your investment becoming subject to higher or lower fees and/or expenses. FEDERAL ESTATE TAXES. While no attempt is being made to discuss the federal estate tax implications of the Contract, you should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent's gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning adviser for more information. GENERATION-SKIPPING TRANSFER TAX. Under certain circumstances, the Code may impose a "generation-skipping transfer tax" when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Contract Owner. Regulations issued under the Code may require us to deduct the tax from your Contract, or from any applicable payment, and pay it directly to the IRS. TYPES OF CONTRACTS: QUALIFIED AND NON-QUALIFIED QUALIFIED ANNUITY CONTRACTS If you purchase your Contract with proceeds of an eligible rollover distribution from any qualified employee pension plan or retirement savings plan or individual retirement annuity (IRA), your Contract is referred to as a Qualified Contract. Some examples of Qualified Contracts are: IRAs (including Roth IRAs), tax-sheltered annuities established by public school systems or certain tax- exempt organizations under Code Section 403(b), corporate sponsored pension, retirement savings, and profit-sharing plans (including 401(k) plans), Keogh Plans (for self-employed individuals), and certain other qualified deferred compensation plans. Another type of Qualified Contract is a Roth IRA, under which after-tax contributions accumulate until maturity, when amounts (including earnings) may be withdrawn tax-free. The rights and benefits under a Qualified Contract may be limited by the terms of the retirement plan, regardless of the terms and conditions of the Contract. Plan participants making contributions to Qualified Contracts will be subject to the required minimum distribution rules as provided by the Code and described below. All qualified plans (including IRAs) receive tax-deferral under the Code. Although there are no additional tax benefits to funding your qualified plan or IRA with an annuity, it does offer you additional insurance benefits, such as the availability of a guaranteed income for life. The Contract has been submitted to the IRS for review and is awaiting approval as to form as a valid IRA. Such approval would not constitute an IRS approval or endorsement of any funding options under the contract. IRS approval as to form is not required to constitute a valid IRA. Disqualification of the Contract as an IRA could result in the immediate taxation of amounts held in the Contract and other adverse tax consequences. 60 TAXATION OF QUALIFIED ANNUITY CONTRACTS Under a qualified annuity, since amounts paid into the Contract generally have not yet been taxed, the full amount of any distributions (including the amount attributable to Purchase Payments), whether paid in the form of lump sum withdrawals or Annuity Payments, are generally taxed at ordinary income tax rates unless the distribution is transferred to an eligible rollover account or contract. There are special rules which govern the taxation of Qualified Contracts, including withdrawal restrictions, requirements for mandatory distributions, and contribution limits. Amounts rolled over to the Contract from other qualified funding vehicles generally are not subject to current taxation. MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS Federal tax law requires that minimum annual distributions begin by April 1st of the calendar year following the calendar year in which an IRA owner attains age 70 1/2. Participants in qualified plans and 403(b) annuities may defer minimum distributions until the later of April 1st of the calendar year following the calendar year in which they attain age 70 1/2 or the year of retirement (except for participants who are 5% or more owners of the plan sponsor). If you own more than one individual retirement annuity and/or account, you may satisfy the minimum distribution rules on an aggregate basis (i.e. determine the total amount of required distributions from all IRAs and take the required amount from any one or more IRAs). A similar aggregate approach is available to meet your 403(b) minimum distribution requirements if you have multiple 403(b) annuities. Recently promulgated Treasury regulations changed the distribution requirements; therefore, it is important that you consult your tax adviser as to the impact of these regulations on your personal situation. Final income tax regulations regarding minimum distribution requirements were released in June 2004. These regulations affect both deferred and income annuities. Under these new rules, effective with respect to minimum distributions required for the 2006 distribution year, in general, the value of all benefits under a deferred annuity (including death benefits in excess of cash value, including the Enhanced Stepped-Up Provision, as well as all living benefits such as GMAB and GMWB ) must be added to the Contract Value in computing the amount required to be distributed over the applicable period. We will provide you with additional information as to the amount of your interest in the Contract that is subject to required minimum distributions under this new rule and either compute the required amount for you or offer to do so at your request. The new rules are not entirely clear and you should consult your personal tax advisor as to how these rules affect your Contract. MINIMUM DISTRIBUTIONS FOR BENEFICIARIES UPON THE CONTRACT OWNER'S DEATH: Upon the death of the Contract Owner and/or Annuitant of a Qualified Contract, the funds remaining in the Contract must be completely withdrawn within five years from the date of death or minimum distributions may be taken over the life expectancy of the individual beneficiaries (or in the case of certain trusts that are contract beneficiaries, over the life expectancy of the individuals who are the beneficiaries of the trust), provided such distributions are payable at least annually and begin within one year from the date of death. Special rules apply where the beneficiary is the surviving spouse, which allow the spouse to assume the Contract and defer the minimum distribution requirements. NOTE TO PARTICIPANTS IN QUALIFIED PLANS INCLUDING 401, 403(B), 408 OR 457, INCLUDING IRA OWNERS: While annual plan contribution limits may be increased from time to time by Congress and the IRS for federal income tax purposes, these limits must be adopted by each state for any higher limits to be effective at a state income tax level. In other words, the permissible contribution limits for federal and state income tax purposes may be different. Therefore, in certain states, a portion of the contributions may not be excludible or deductible from state income taxes. Please consult your employer or tax adviser regarding this issue. INDIVIDUAL RETIREMENT ANNUITIES To the extent of earned income for the year and not exceeding the applicable limit for the taxable year, an individual may make contributions, which in some cases may be deductible, to an individual retirement annuity (IRA). The applicable limit is $4,000 in 2007 and $5,000 in 2008, and it may be indexed for inflation in years after 2008. Additional "catch-up contributions" may be made to an IRA by individuals age 50 or over. There are certain limits on the deductible amount based on the adjusted gross income of the individual and spouse and on their participation in a retirement plan. If an individual is married and the spouse is not employed, the individual may establish IRAs for the individual and spouse. Purchase Payments may then be made annually into IRAs for both 61 spouses in the maximum amount of 100% of earned income up to a combined limit based on the individual limits outlined above. Deductible contributions to an IRA and Roth IRA for the year must be aggregated for purposes of the individual Code Section 408A limits and the Code Section 219 limits (age 50+catch-up). Partial or full distributions are treated as ordinary income, except that amounts contributed after 1986 on a non-deductible basis are not includable in income when distributed. An additional tax of 10% will apply to any taxable distribution from the IRA that is received by the participant before the age of 59 1/2 except by reason of death, disability or as part of a series of payments for life or life expectancy. Distributions must commence by April 1st of the calendar year after the close of the calendar year in which the individual attains the age of 70 1/2. Certain other mandatory distribution rules apply on the death of the individual. The individual must maintain personal and tax return records of any non-deductible contributions and distributions. Section 408 (k) of the Code provides for the purchase of a Simplified Employee Pension (SEP) plan. A SEP is funded through an IRA and can accept an annual employer contribution limited to the lesser of $46,000 or 100% of pay for each participant in 2008. ROTH IRAS Effective January 1, 1998, Section 408A of the Code permits certain individuals to contribute to a Roth IRA. Eligibility to make contributions is based upon income, and the applicable limits vary based on marital status and/or whether the contribution is a rollover contribution from another IRA or an annual contribution. Contributions to a Roth IRA, which are subject to certain limitations, (similar to the annual limits for traditional IRAs), are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A conversion of "traditional" IRA to a Roth IRA may be subject to tax and other special rules apply. You should consult a tax adviser before combining any converted amounts with other Roth IRA contributions, including any other conversion amounts from other tax years. Qualified distributions from a Roth IRA are tax-free. A qualified distribution requires that the Roth IRA has been held for at least 5 years, and the distribution is made after age 59 1/2, on death or disability of the owner, or for a limited amount ($10,000) for a qualified first time home purchase for the owner or certain relatives. Income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during five taxable years starting with the year in which the first contribution is made to the Roth IRA. TSAS (ERISA AND NON-ERISA) GENERAL. TSAs fall under sec.403(b) of the Code, which provides certain tax benefits to eligible employees of public school systems and organizations that are tax exempt under sec.501(c)(3) of the Code. In general contributions to sec.403(b) arrangements are subject to limitations under sec.415(c) of the Code (the lesser of 100% of includable compensation or the applicable limit for the year). Recently, the IRS announced new regulations affecting sec.403(b) plans and arrangements. As part of these regulations, employers will need to meet certain requirements in order for their employees' annuity contracts that fund these programs to retain a tax deferred status under sec.403(b). These regulations are generally effective January 1, 2009. Prior to the new rules, transfers of one annuity contract to another would not result in a loss of tax deferred status under sec.403(b) under certain conditions (so-called "90-24 transfers"). The new regulations have the following effect regarding transfers: (1) a newly issued contract funded by a transfer which is completed after September 24, 2007, is subject to the employer requirements referred to above; (2) additional purchase payments made after September 24, 2007, to a contract that was funded by a 90-24 transfer on or before September 24, 2007, may subject the contract to this new employer requirement. If your Contract was issued previously in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax advisor prior to making additional purchase payments (if permitted). 62 WITHDRAWALS AND INCOME PAYMENTS. If you are under 59 1/2, you cannot withdraw money from your TSA Contract unless the withdrawal: - Relates to Purchase Payments made prior to 1989 (and pre-1989 earnings on those Purchase Payments); - Is directly transferred to another permissible investment under sec.403(b) arrangements; - Relates to amounts that are not salary reduction elective deferrals; - Occurs after you die, leave your job or become disabled (as defined by the Code); or - Is for financial hardship (but only to the extent of Purchase Payments) if your plan allows it. DESIGNATED ROTH ACCOUNT FOR 403(B) PLANS. Effective January 1, 2006, employers that established and maintain a TSA/403(b) plan ("the Plan") may also establish a Qualified Roth Contribution Program under Section 402A of the Code ("Designated Roth Accounts") to accept after-tax contributions as part of the TSA plan. In accordance with our administrative procedures, we may permit these contributions to be made as purchase payments to a Section 403(b) Contract under the following conditions: (1) The employer maintaining the plan has demonstrated to our satisfaction that Designated Roth Accounts are permitted under the Plan. (2) In accordance with our administrative procedures, the amount of elective deferrals has been irrevocably designated as an after-tax contribution to the Designated Roth Account. (3) All state regulatory approvals have been obtained to permit the Contract to accept such after-tax elective deferral contributions (and, where permitted under the Qualified Roth Contribution Program and the Contract, rollovers and trustee-to-trustee transfers from other Designated Roth Accounts). (4) In accordance with our procedures and in a form satisfactory to us, we may accept rollovers from other funding vehicles under any Qualified Roth Contribution Program of the same type in which the employee participates as well as trustee-to-trustee transfers from other funding vehicles under the same Qualified Roth Contribution Program for which the participant is making elective deferral contributions to the Contract. (5) No other contribution types (including employer contributions, matching contributions, etc.) will be allowed as designated Roth contributions, unless they become permitted under the Code. (6) If permitted under the federal tax law, we may permit both pre-tax contributions under a 403(b) plan as well as after-tax contributions under the Plan's Qualified Roth Contribution Program to be made under the same Contract as well as rollover contributions and contributions by trustee-to-trustee transfers. In such cases, we will account separately for the designated Roth contributions and the earnings thereon from the contributions and earnings made under the pre-tax TSA plan (whether made as elective deferrals, rollover contributions or trustee-to-trustee transfers). As between the pre-tax or traditional Plan and the Qualified Roth Contribution Program, we will allocate any living benefits or death benefits provided under the Contract on a reasonable basis, as permitted under the tax law. (7) We may refuse to accept contributions made as rollovers and trustee- to-trustee transfers, unless we are furnished with a breakdown as between participant contributions and earnings at the time of the contribution. Many of the federal income tax rules pertaining to Designated Roth Accounts have not yet been finalized. Both you and your employer should consult their own tax and legal advisors prior to making or permitting contributions to be made to a Qualified Roth Contribution Program. The following general tax rules are based on our understanding of the Code and any regulations issued through December 31, 2005, and are subject to change and to different interpretation as well as additional guidance in respect to areas not previously addressed: The employer must permit contributions under a pre-tax 403(b) plan in order to permit contributions to be irrevocably designated and made part of a Qualified Roth Contribution Program. 63 Elective deferral contributions to the Designated Roth Account must be aggregated with all other elective deferral contributions made by a taxpayer for purposes of the individual Code Section 402(g) limits and the Code Section 414(v) limits (relating to age 50 and over catch-up contributions) as well as contribution limits that apply under the Plan. In general, the same tax law rules with respect to restricted monies, triggering events and permitted distributions will apply to the Designated Roth Accounts under the Plan as apply to the traditional pre-tax accounts under the plan (e.g., death or disability of participant, severance from employment, attainment of age 59 1/2 and hardship withdrawals only with respect to contributions (if permitted under the Plan)). If the amounts have been held under any Designated Roth Account of a participant for at least five years and are made on account of death, disability or after attainment of age 59 1/2, then any withdrawal, distribution or payment of these amounts is generally free of federal income tax ("Qualified Distributions"). Unlike Roth IRAs, withdrawal, distributions and payments that do not meet the five year rule will generally be taxed on a pro-rated basis with respect to earnings and after-tax contributions. The 10% penalty tax will generally apply on the same basis as a traditional pre-tax account under the Plan. Additionally, rollover distributions may only be made tax-free into another Designated Roth Account or into a Roth IRA. Some states may not permit contributions to be made to a Qualified Roth Contribution Program or may require additional conforming legislation for these rules to become effective. LOANS. If your TSA Contract permits loans, such loans will be made only from any Fixed Interest Account balance and only up to certain limits. In that case, we credit your Fixed Interest Account balance up to the amount of the outstanding loan balance with a rate of interest that is less than the interest rate we charge for the loan. The Code and applicable income tax regulations limit the amount that may be borrowed from your Contract and all you employer plans in the aggregate and also require that loans be repaid, at a minimum, in scheduled level payments over a proscribed term. Your Contract will indicate whether loans are permitted. The terms of the loan are governed by the Contract and loan agreement. Failure to satisfy loan limits under the Code or to make any scheduled payments according to the terms of your loan agreement and Federal tax law could have adverse tax consequences. Consult a tax advisor and read your loan agreement and Contract prior to taking any loan. NON-QUALIFIED ANNUITY CONTRACTS If you purchase the Contract on an individual basis with after-tax dollars and not under one of the programs described above, your Contract is referred to as non-qualified. As the owner of a non-qualified annuity, you do not receive any tax benefit (deduction or deferral of income) on Purchase Payments, but you will not be taxed on increases in the value of your Contract until a distribution occurs -- either as a withdrawal made prior to the Maturity Date or in the form of periodic Annuity Payments. As a general rule, there is income in the Contract (earnings) to the extent the Contract Value exceeds your investment in the Contract. The investment in the Contract equals the total Purchase Payments less any amount received previously which was excludible from gross income. Generally, different tax rules apply to Annuity Payments than to withdrawals and payments received before the annuity starting date. When a withdrawal is made, you are taxed on the amount of the withdrawal that is considered earnings under federal tax laws. Similarly, when you receive an Annuity Payment, part of each periodic payment is considered a return of your Purchase Payments and will not be taxed, but the remaining portion of the Annuity Payment (i.e., any earnings) will be considered ordinary income for federal income tax purposes. Annuity Payments are subject to an "excludable amount" or "exclusion ratio" which determines how much of each payment is treated as: - a non-taxable return of your Purchase Payment; or - a taxable payment of earnings. We generally will tell you how much of each Annuity Payment is a non-taxable return of your Purchase Payments. However, it is possible that the IRS could conclude that the taxable portion of Annuity Payments under a non- 64 qualified contract is an amount greater (or less) than the taxable amount determined by us and reported by us to you and the IRS. Generally, once the total amount treated as a non-taxable return of your Purchase Payments equals your Purchase Payments, then all remaining payments are fully taxable. We will withhold a portion of the taxable amount of your Annuity Payment for income taxes, unless you elect otherwise. The amount we withhold is determined by the Code. Code Section 72(s) requires that non-qualified annuity contracts meet minimum mandatory distribution requirements upon the death of the Contract Owner, including the death of either of the Joint Owners. If these requirements are not met, the Contract will not be treated as an annuity contract for federal income tax purposes and earnings under the Contract will be taxable currently, not when distributed. The distribution required depends, among other things, upon whether an annuity option is elected or whether the succeeding Contract Owner is the surviving spouse. We will administer contracts in accordance with these rules and we will notify you when you should begin receiving payments. There is a more complete discussion of these rules in the SAI. If a non-qualified annuity is owned by a non-natural person (e.g., a corporation), increases in the value of the Contract attributable to Purchase Payments made after February 28, 1986 are includable in income annually and taxed at ordinary income tax rates. Furthermore, for contracts issued after April 22, 1987, if the Contract is transferred to another person or entity without adequate consideration, all deferred increases in value will be treated as income for federal income tax purposes at the time of the transfer. PARTIAL WITHDRAWALS: If you make a partial withdrawal of your Contract Value, the distribution generally will be taxed as first coming from earnings (income in the Contract) and then from your Purchase Payments. These withdrawn earnings are includable in your taxable income. (See "Penalty Tax for Premature Distributions" below.) Any direct or indirect borrowing against the value of the Contract or pledging of the Contract as security for a loan will be treated as a cash distribution under the tax law, and will have tax consequences in the year taken. It should be noted that there is no guidance as to the determination of the amount of income in a Contract if it is issued with a Guaranteed Minimum Withdrawal Benefit (GMWB). Therefore, you should consult with your tax adviser as to the potential tax consequences of a partial surrender if your Contract is issued with a GMWB. PARTIAL ANNUITIZATIONS (IF AVAILABLE WITH YOUR CONTRACT): At the present time the IRS has not approved the use of an exclusion ratio or exclusion amount when only part of your Contract Value is applied to a payment option. Currently, we will treat the application of less than your entire Contract Value under a Non- qualified Contract to a payment option (i.e. taking Annuity Payments) as a taxable withdrawal for federal income tax purposes (which may also be subject to the 10% penalty tax if you are under age 59 1/2). We will then treat the amount of the withdrawal (after any deductions for taxes) as the purchase price of an income annuity and tax report the income payments received under that annuity under the rules for variable income annuities. Consult your tax attorney prior to partially annuitizing your Contract. We will determine the excludable amount for each income payment under the Contract as a whole by using the rules applicable to variable income payments in general (i.e. by dividing your after-tax purchase price, as adjusted for any refund or guarantee feature, by the number of expected income payments from the appropriate IRS table). However, the IRS may determine that the excludable amount is different from our computation. DIVERSIFICATION REQUIREMENTS FOR VARIABLE ANNUITIES The Code requires that any non-qualified variable annuity contracts based on a Separate Account must meet specific diversification standards. Non-qualified variable annuity contracts shall not be treated as an annuity for federal income tax purposes if investments made in the account are not adequately diversified. Final tax regulations define how Separate Accounts must be diversified. The Company constantly monitors the diversification of investments and believes that its accounts are adequately diversified. The consequence of any failure to diversify is essentially the loss to the Contract Owner of tax-deferred treatment, requiring the current inclusion of a proportionate share of the income and gains from the Separate Account assets in the income of each Contract Owner. The Company intends to administer all contracts subject to this provision of law in a manner that will maintain adequate diversification. OWNERSHIP OF THE INVESTMENTS In certain circumstances, owners of variable annuity contracts have been considered to be the owners of the assets of the underlying Separate Account for federal income tax purposes due to their ability to exercise investment control 65 over those assets. When this is the case, the Contract Owners have been currently taxed on income and gains attributable to the Separate Account assets. There is little guidance in this area, and some features of the Contract, such as the number of funds available and the flexibility of the Contract Owner to allocate premium payments and transfer amounts among the funding options, have not been addressed in public rulings. While we believe that the Contract does not give the Contract Owner investment control over Separate Account assets, we reserve the right to modify the Contract as necessary to prevent a Contract Owner from being treated as the owner of the Separate Account assets supporting the Contract. TAXATION OF DEATH BENEFIT PROCEEDS Amounts may be distributed from a Non-qualified Contract because of the death of an owner or Annuitant. Generally, such amounts are includable in the income of the recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a full surrender of the Contract; or (ii) if distributed under a payment option, they are taxed in the same way as Annuity Payments. OTHER TAX CONSIDERATIONS TREATMENT OF CHARGES FOR OPTIONAL BENEFITS The Contract may provide one or more optional enhanced death benefits or other minimum guaranteed benefit that in some cases may exceed the greater of purchase price or the Contract Value. It is possible that the Internal Revenue Service may take the position that certain benefits or the charges for certain benefits such as guaranteed death benefits (including the Roll-up Death Benefit) and certain living benefits (e.g. Guaranteed Minimum Withdrawal Benefit) could be considered to be taxable each year as deemed distributions from the Contract to pay for non-annuity benefits. We currently treat these earnings and benefits as an intrinsic part of the Contract and not report them as taxable income until distributions are actually made. However, it is possible that this may change if we determine that this is required by the IRS. If so, the charges or benefits could also be subject to a 10% penalty tax if the taxpayer is under 59 1/2. You should consult with your tax adviser before selecting any rider or endorsement to the Contract. GUARANTEED MINIMUM WITHDRAWAL BENEFITS If you have purchased the Guaranteed Minimum Withdrawal Benefit Rider or the Guaranteed Minimum Withdrawal Benefit for Life Rider, where otherwise made available, note the following: The tax treatment of withdrawals under such a benefit is uncertain. It is conceivable that the amount of potential gain could be determined based on the remaining amounts guaranteed to be available for withdrawal at the time of the withdrawal if greater than the Contract Value (prior to surrender charges). This could result in a greater amount of taxable income in certain cases. In general, at the present time, the Company intends to tax report such withdrawals using the Contract Value rather than the remaining benefit to determine gain. However, in cases where the maximum permitted withdrawal in any year under any version of the GMWB exceeds the Contract Value, the portion of the withdrawal treated as taxable gain (not to exceed the amount of the withdrawal) should be measured as the difference between the maximum permitted withdrawal amount under the benefit and the remaining after-tax basis immediately preceding the withdrawal. In the event that the Contract Value goes to zero, and the Remaining Benefit Base is paid out in fixed installments or the Lifetime Withdrawal Benefit is paid for life, we will treat such payments as income annuity payments under the tax law and allow recovery of any remaining basis ratably over the expected number of payments. The Company reserves the right to change its tax reporting practices where it determines they are not in accordance with IRS guidance (whether formal or informal). PUERTO RICO TAX CONSIDERATIONS The Puerto Rico Internal Revenue Code of 1994 (the "1994 Code") taxes distributions from non-qualified annuity contracts differently than in the U.S. Distributions that are not in the form of an annuity (including partial surrenders and period certain payments) are treated under the 1994 Code first as a return of investment. Therefore, a substantial 66 portion of the amounts distributed generally will be excluded from gross income for Puerto Rico tax purposes until the cumulative amount paid exceeds your tax basis. The amount of income on annuity distributions (payable over your lifetime) is also calculated differently under the 1994 Code. Since Puerto Rico residents are also subject to U.S. income tax on all income other than income sourced to Puerto Rico and the Internal Revenue Service issued guidance in 2004 which indicated that the income from an annuity contract issued by a U.S. life insurer would be considered U.S. source income, the timing of recognition of income from an annuity contract could vary between the two jurisdictions. Although the 1994 Code provides a credit against the Puerto Rico income tax for U.S. income taxes paid, an individual may not get full credit because of the timing differences. You should consult with a personal tax adviser regarding the tax consequences of purchasing an annuity contract and/or any proposed distribution, particularly a partial distribution or election to annuitize. NON-RESIDENT ALIENS Distributions to non resident aliens ("NRAs") are subject to special and complex tax and withholding rules under the Code with respect to U.S. source income, some of which are based upon the particular facts and circumstances of the Contract Owner, the beneficiary and the transaction itself. As stated above, the IRS has taken the position that income from the Contract received by NRAs is considered U.S. source income. In addition, Annuity Payments to NRAs in many countries are exempt from U.S. tax (or subject to lower rates) based upon a tax treaty, provided that the Contract Owner complies with the applicable requirements. NRAs should seek guidance from a tax adviser regarding their personal situation. TAX CREDITS AND DEDUCTIONS The Company may be entitled to certain tax benefits related to the assets of the Separate Account. These tax benefits, which may include foreign tax credits and corporate dividend received deductions, are not passed back to the Separate Account or to Contract Owners since the Company is the owner of the assets from which the tax benefits are derived. OTHER INFORMATION - -------------------------------------------------------------------------------- THE INSURANCE COMPANY Please refer to your Contract to determine which Company issued your Contract. MetLife Insurance Company of Connecticut is a stock insurance company chartered in 1863 in Connecticut and continuously engaged in the insurance business since that time. It is licensed to conduct life insurance business in all states of the United States, the District of Columbia, Puerto Rico, Guam, the U.S. and British Virgin Islands and the Bahamas. The Company is a wholly-owned subsidiary of MetLife, Inc., a publicly-traded company. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. The Company's Home Office is located at One Cityplace, Hartford, Connecticut 06103-3415. Before December 7, 2007, certain of the Contracts were issued by MetLife Life and Annuity Company of Connecticut, a stock life insurance company chartered in 1973 in Connecticut. These Contracts were funded through Separate Account Fourteen, a separate account registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended. On December 7, 2007, MLACC, a wholly-owned subsidiary of the Company and an indirect, wholly-owned subsidiary of MetLife, Inc., merged with and into the Company. Upon consummation of the merger, MLACC's corporate existence ceased by operation of law, and the Company assumed legal ownership of all of the assets of MLACC, including Separate Account Fourteen and its assets. Pursuant to the merger, therefore, Separate Account Fourteen became a separate account of the Company. As a result of the merger, the Company also has become responsible for all of MLACC's liabilities and obligations, including those created under the Contract as initially issued by MLACC (formerly known as The Travelers Life and Annuity Company) and outstanding on the date of the merger. The Contract has thereby become a variable contract funded by a separate account of the Company, and each owner thereof has become a Contract Owner of the Company. 67 FINANCIAL STATEMENTS The financial statements for the Company and its Separate Account are located in the Statement of Additional Information. DISTRIBUTION OF VARIABLE ANNUITY CONTRACTS DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT. MetLife Insurance Company of Connecticut (the "Company") has appointed MetLife Investors Distribution Company ("MLIDC") to serve as the principal underwriter and distributor of the securities offered through this Prospectus, pursuant to the terms of a Distribution and Principal Underwriting Agreement. MLIDC, which is an affiliate of the Company, also acts as the principal underwriter and distributor of other variable annuity contracts and variable life insurance policies issued by the Company and its affiliated companies. The Company reimburses MLIDC for expenses MLIDC incurs in distributing the Contracts (e.g. commissions payable to retail broker-dealers who sell the Contracts). MLIDC does not retain any fees under the Contracts; however, MLIDC may receive 12b-1 fees from the Underlying Funds. MLIDC's principal executive offices are located at 5 Park Plaza, Suite 1900, Irvine, California 92614. MLIDC is registered as a broker-dealer with the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934, as well as the securities commissions in the states in which it operates, and is a member of the Financial Industry Regulatory Authority (FINRA). An investor brochure that includes information describing FINRA's Public Disclosure Program is available by calling FINRA's Public Disclosure Program hotline at 1- 800-289-9999, or by visiting FINRA's website at www.finra.org. MLIDC and the Company enter into selling agreements with affiliated and unaffiliated broker-dealers who are registered with the SEC and are members of FINRA, and with entities that may offer the Contracts but are exempt from registration. Applications for the Contract are solicited by registered representatives who are associated persons of such affiliated or unaffiliated broker-dealer firms. Such representatives act as appointed agents of the Company under applicable state insurance law and must be licensed to sell variable insurance products. The Company intends to offer the Contract in all jurisdictions where it is licensed to do business and where the Contract is approved. The Contracts are offered on a continuous basis. COMPENSATION. Broker-dealers who have selling agreements with MLIDC and the Company are paid compensation for the promotion and sale of the Contracts. Registered representatives who solicit sales of the Contract typically receive a portion of the compensation payable to the broker-dealer firm. The amount the registered representative receives depends on the agreement between the firm and the registered representative. This agreement may also provide for the payment of other types of cash and non-cash compensation and other benefits. A broker- dealer firm or registered representative of a firm may receive different compensation for selling one product over another and/or may be inclined to favor one product provider over another product provider due to differing compensation rates. We generally pay compensation as a percentage of purchase payments invested in the Contract. Alternatively, we may pay lower compensation on purchase payments but pay periodic asset-based compensation based on all or a portion of the Contract Value. The amount and timing of compensation may vary depending on the selling agreement but is not expected to exceed 7.50% of Purchase Payments (if up-front compensation is paid to registered representatives) and up to 1.50% annually of average Contract Value (if asset-based compensation is paid to registered representatives). The Company and MLIDC have also entered into preferred distribution arrangements with certain broker-dealer firms. These arrangements are sometimes called "shelf space" arrangements. Under these arrangements, the Company and MLIDC pay separate, additional compensation to the broker-dealer firm for services the broker-dealer provides in connection with the distribution of the Company's products. These services may include providing the Company with access to the distribution network of the broker-dealer, the hiring and training of the broker-dealer's sales personnel, the sponsoring of conferences and seminars by the broker-dealer, or general marketing services performed by the broker-dealer. The broker-dealer may also provide other services or incur other costs in connection with distributing the Company's products. These preferred distribution arrangements will not be offered to all broker- dealer firms and the terms of such arrangements may differ between broker-dealer firms. Compensation payable under such arrangements may be based on aggregate, net or anticipated sales of the Contracts, total assets attributable to sales of the Contract by registered representatives of the broker-dealer firm or based on the length of time that a Contract Owner has owned the 68 Contract. Any such compensation payable to a broker-dealer firm will be made by MLIDC or the Company out of their own assets and will not result in any additional direct charge to you. Such compensation may cause the broker-dealer firm and its registered representatives to favor the Company's products. The Company and MLIDC have entered into a preferred distribution arrangement with their affiliate Tower Square Securities, Inc. and with the unaffiliated broker- dealer firms identified in the Statement of Additional Information. The Company and MLIDC may enter into similar arrangements with their other affiliates MetLife Securities, Inc., Walnut Street Securities, Inc., and New England Securities Corporation. See the "Statement of Additional Information -- DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT" for a list of the broker-dealer firms that received such additional compensation during 2007, as well as the range of additional compensation paid. The Company and MLIDC have entered into selling agreements with certain broker- dealer firms that have an affiliate that acts as investment adviser or sub- adviser to one or more Underlying Funds that may be offered under the Contracts. These investment advisory firms include Fidelity Management & Research Company, Morgan Stanley Investment Advisers Inc., MetLife Investment Funds Management LLC, MetLife Advisers, LLC and Met Investors Advisory LLC. MetLife Investment Funds Management LLC, MetLife Advisers LLC and Met Investors Advisory LLC are affiliates of the Company. Registered representatives of broker-dealer firms with an affiliated company acting as an adviser or a sub-adviser may favor these Funds when offering the Contracts. SALE BY AFFILIATES OF THE COMPANY. The Company and MLIDC may offer the Contracts through retail broker-dealer firms that are affiliates of the Company, including Tower Square Securities, Inc., MetLife Securities, Inc. and/or Metropolitan Life Insurance Company, Walnut Street Securities, Inc. and New England Securities Corporation. The compensation paid to affiliated broker-dealer firms for sales of the Contracts is generally not expected to exceed, on a present value basis, the percentages described above. These broker-dealer firms pay their registered representatives all or a portion of the commissions received for their sales of Contracts; some firms may retain a portion of commissions. The amount the broker dealer firms pass on to their registered representatives is determined in accordance with their internal compensation programs. These programs may also include other types of cash compensation, such as bonuses, equity awards (such as stock options), training allowances, supplementary salary, financing arrangements, marketing support, medical and other insurance benefits, retirement benefits, and other benefits. For registered representatives of certain affiliates, the amount of this additional cash compensation is based primarily on the amount of proprietary products sold and serviced by the representative. Proprietary products are those issued by the Company or its affiliates. The managers who supervise these registered representatives may also be entitled to additional cash compensation based on the sale of proprietary products by their representatives. Because the additional cash compensation paid to these registered representatives and their managers is primarily based on sales of proprietary products, these registered representatives and their managers have an incentive to favor the sale of proprietary products over other products issued by non-affiliates. MetLife registered representatives receive cash payments for the products they sell and service based upon a 'gross dealer concession' model. The cash payment is equal to a percentage of the gross dealer concession. For MetLife registered representatives other than those in our MetLife Resources (MLR) Division, the percentage is determined by a formula that takes into consideration the amount of premiums and purchase payments applied to proprietary products that the registered representative sells and services. The percentage could be as high as 100%. (MLR registered representatives receive compensation based upon premiums and purchase payments applied to all products sold and serviced by the representative.) In addition, all MetLife registered representatives are entitled to the additional compensation described above based on sales of proprietary products. Because sales of proprietary products are a factor determining the percentage of gross dealer concession and/or the amount of additional compensation to which MetLife registered representatives are entitled, they have an incentive to favor the sale of proprietary products. In addition, because their sales managers' compensation is based on the sales made by the representatives they supervise, these sales managers also have an incentive to favor the sale of proprietary products. The Company's affiliates also offer their registered representatives and their managers non-cash compensation incentives, such as conferences, trips, prizes and awards. Other non-cash compensation payments may be made for other services that are not directly related to the sale of products. These payments may include support services in the form of recruitment and training of personnel, production of promotional materials and similar services. CONFORMITY WITH STATE AND FEDERAL LAWS The laws of the state in which we deliver a contract govern that Contract. Where a state has not approved a contract feature or funding option, it will not be available in that state. Any paid-up annuity, Cash Surrender Value or death 69 benefits that are available under the Contract are not less than the minimum benefits required by the statutes of the state in which we delivered the Contract. We reserve the right to make any changes, including retroactive changes, in the Contract to the extent that the change is required to meet the requirements of any law or regulation issued by any governmental agency to which the Company, the Contract or the Contract Owner is subject. VOTING RIGHTS The Company is the legal owner of the shares of the Underlying Funds. However, we believe that when an Underlying Fund solicits proxies in conjunction with a vote of shareholders we are required to obtain from you and from other owners instructions on how to vote those shares. We will vote all shares, including those we may own on our own behalf, and those where we have not received instructions from Contract Owners, in the same proportion as shares for which we received voting instructions. The effect of this proportional voting is that a small number of Contract Owners may control the outcome of a vote. Should we determine that we are no longer required to comply with the above, we will vote the shares in our own right. In certain limited circumstances, and when permitted by law, we may disregard voting instructions. If we do disregard voting instructions, a summary of that action and the reasons for such action would be included in the next annual report to Contract Owners. RESTRICTIONS ON FINANCIAL TRANSACTIONS Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to block a Contract Owner's ability to make certain transactions and thereby refuse to accept any request for transfers, withdrawals, surrenders, or death benefits, until the instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your Contract to government regulators. LEGAL PROCEEDINGS In the ordinary course of business, the Company, similar to other life insurance companies, is involved in lawsuits (including class action lawsuits), arbitrations and other legal proceedings. Also, from time to time, state and federal regulators or other officials conduct formal and informal examinations or undertake other actions dealing with various aspects of the financial services and insurance industries. In some legal proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. It is not possible to predict with certainty the ultimate outcome of any pending legal proceeding or regulatory action. However, the Company does not believe any such action or proceeding will have a material adverse effect upon the Separate Account or upon the ability of MLIDC to perform its contract with the Separate Account or of the Company to meet its obligations under the Contracts. 70 APPENDIX A - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT THIRTEEN FOR VARIABLE ANNUITIES ACCUMULATION UNIT VALUES (IN DOLLARS) The following Accumulation Unit Value ("AUV") information should be read in conjunction with the Separate Account's audited financial statement and notes, which are included in the Statement of Additional Information ("SAI"). The first table provides the AUV information for the MINIMUM Separate Account Charge available under the contract. The second table provides the AUV information for the MAXIMUM Separate Account Charge available under the contract. Please refer to the Fee Table section of this prospectus for more information on Separate Account Charges. PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.432 1.527 -- 2006 1.371 1.432 62,101 2005 1.283 1.371 61,224 2004 1.225 1.283 39,093 2003 1.000 1.225 16,655 AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.606 1.728 75,600 2006 1.470 1.606 87,262 2005 1.392 1.470 75,943 2004 1.244 1.392 4,645 2003 1.000 1.244 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.561 1.495 422,934 2006 1.353 1.561 403,200 2005 1.329 1.353 371,617 2004 1.216 1.329 259,711 2003 1.000 1.216 33,517 FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.618 1.772 192,500 2006 1.512 1.618 172,563 2005 1.465 1.512 163,746 2004 1.335 1.465 142,176 2003 1.000 1.335 --
A-1 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 2.026 2.303 149,120 2006 1.694 2.026 150,829 2005 1.562 1.694 159,523 2004 1.338 1.562 136,647 2003 1.000 1.338 10,473 Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.625 1.566 154,213 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.367 1.372 115,498 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.732 1.660 77,987 Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.203 1.261 -- 2006 1.037 1.203 85,924 2005 0.951 1.037 49,141 LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.334 1.372 -- 2006 1.207 1.334 116,140 2005 1.191 1.207 119,061 2004 1.115 1.191 74,720 2003 1.000 1.115 42,640 Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.585 1.640 -- 2006 1.453 1.585 151,437 2005 1.346 1.453 143,457 2004 1.257 1.346 47,535 2003 1.000 1.257 1,293 Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.508 1.574 65,169 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.008 1.134 516,496 2006 1.000 1.008 553,425 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.034 1.070 210,903 2006 1.000 1.034 302,728 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.980 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.052 1.101 446,847 2006 1.000 1.052 425,433
A-2 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.002 1.011 -- 2005 0.989 1.002 127,661 2004 0.994 0.989 55,015 2003 1.000 0.994 13,810 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.337 1.397 -- 2005 1.295 1.337 372,259 2004 1.233 1.295 247,784 2003 1.000 1.233 29,629 Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.858 2.023 -- 2005 1.654 1.858 201,739 2004 1.413 1.654 130,771 2003 1.000 1.413 2,962 Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.028 1.067 -- 2006 1.012 1.028 190,659 2005 1.010 1.012 177,201 2004 0.996 1.010 114,631 2003 1.000 0.996 8,327 Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.998 1.123 -- 2005 1.002 0.998 6,230 2004 0.994 1.002 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.168 1.243 -- 2005 1.143 1.168 66,867 2004 1.110 1.143 31,780 2003 1.000 1.110 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.054 1.092 247,099 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.252 1.312 246,702 2006 1.086 1.252 130,177 2005 1.020 1.086 59,240 Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.190 4.474 55,631 2006 2.391 3.190 19,898 2005 1.765 2.391 18,563 2004 1.510 1.765 19,451 2003 1.000 1.510 --
A-3 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.720 1.703 160,520 2006 1.430 1.720 123,552 2005 1.377 1.430 130,534 2004 1.205 1.377 114,770 2003 1.000 1.205 12,289 Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.251 1.377 -- 2006 1.065 1.251 4,361 2005 1.000 1.065 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.585 2.015 -- 2005 1.493 1.585 -- 2004 1.283 1.493 -- 2003 1.000 1.283 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.583 1.633 225,278 2006 1.382 1.583 196,485 2005 1.324 1.382 162,705 2004 1.213 1.324 53,093 2003 1.000 1.213 5,141 Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.148 1.154 336,051 2006 1.041 1.148 68,721 2005 1.026 1.041 77,824 Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.305 1.357 186,880 2006 1.224 1.305 168,199 2005 1.223 1.224 171,546 2004 1.153 1.223 137,405 2003 1.000 1.153 14,646 Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.222 1.266 -- 2006 1.085 1.222 10,926 2005 1.014 1.085 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.182 1.230 514,455 2006 1.065 1.182 535,108 2005 0.991 1.065 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.144 1.190 1,719,260 2006 1.050 1.144 1,755,889 2005 0.976 1.050 56,719
A-4 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.318 1.394 82,109 2006 1.228 1.318 87,903 2005 1.208 1.228 90,378 2004 1.154 1.208 65,311 2003 1.000 1.154 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.059 2.296 50,787 2006 1.706 2.059 18,087 2005 1.504 1.706 17,330 2004 1.290 1.504 17,330 2003 1.000 1.290 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.859 1.929 320,588 2006 1.682 1.859 299,644 2005 1.587 1.682 286,391 2004 1.324 1.587 223,479 2003 1.000 1.324 11,380 Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.181 1.257 132,741 2006 1.167 1.181 141,036 2005 1.095 1.167 148,247 2004 1.023 1.095 61,245 Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.555 2.035 101,946 2006 1.901 2.555 62,090 2005 1.681 1.901 61,710 2004 1.261 1.681 53,949 2003 1.000 1.261 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.174 1.388 -- 2006 1.106 1.174 43,521 2005 1.074 1.106 45,136 2004 1.050 1.074 27,027 Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.966 1.797 34,469 2006 1.749 1.966 33,892 2005 1.599 1.749 30,295 2004 1.355 1.599 26,176 2003 1.000 1.355 7,387 Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.434 1.523 -- 2005 1.433 1.434 -- 2004 1.285 1.433 -- 2003 1.000 1.285 --
A-5 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.245 1.301 264,186 2006 1.190 1.245 218,868 2005 1.179 1.190 206,023 2004 1.089 1.179 174,929 2003 1.000 1.089 18,718 Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.526 1.528 -- 2006 1.347 1.526 37,333 2005 1.307 1.347 36,932 2004 1.192 1.307 38,899 2003 1.000 1.192 3,492
PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.156 1.229 -- 2006 1.117 1.156 -- 2005 1.054 1.117 -- 2004 1.000 1.054 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.207 1.287 -- 2006 1.115 1.207 -- 2005 1.065 1.115 -- 2004 1.000 1.065 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.237 1.174 -- 2006 1.082 1.237 -- 2005 1.072 1.082 -- 2004 1.000 1.072 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.176 1.277 -- 2006 1.109 1.176 -- 2005 1.084 1.109 -- 2004 1.000 1.084 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.472 1.658 -- 2006 1.242 1.472 -- 2005 1.155 1.242 -- 2004 1.000 1.155 --
A-6 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.244 1.191 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.183 1.181 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.282 1.221 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.183 1.237 -- 2006 1.029 1.183 -- 2005 0.949 1.029 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.159 1.189 -- 2006 1.058 1.159 -- 2005 1.053 1.058 -- 2004 1.000 1.053 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.217 1.255 -- 2006 1.126 1.217 -- 2005 1.052 1.126 -- 2004 1.000 1.052 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.213 1.259 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.002 1.117 -- 2006 1.000 1.002 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.020 1.046 -- 2006 1.000 1.020 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.974 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.046 1.085 -- 2006 1.000 1.046 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.998 1.004 -- 2005 0.994 0.998 -- 2004 1.000 0.994 --
A-7 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.071 1.116 -- 2005 1.046 1.071 -- 2004 1.000 1.046 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.300 1.412 -- 2005 1.168 1.300 -- 2004 1.000 1.168 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.032 1.063 -- 2006 1.025 1.032 -- 2005 1.032 1.025 -- 2004 1.000 1.032 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.979 1.092 -- 2005 0.992 0.979 -- 2004 0.989 0.992 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.038 1.095 -- 2005 1.025 1.038 -- 2004 1.000 1.025 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.233 1.280 -- 2006 1.078 1.233 -- 2005 1.017 1.078 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.299 3.195 -- 2006 1.738 2.299 -- 2005 1.295 1.738 -- 2004 1.000 1.295 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.380 1.354 -- 2006 1.158 1.380 -- 2005 1.124 1.158 -- 2004 1.000 1.124 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.231 1.345 -- 2006 1.058 1.231 -- 2005 1.000 1.058 --
A-8 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.238 1.560 -- 2005 1.177 1.238 -- 2004 1.000 1.177 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.279 1.308 -- 2006 1.127 1.279 -- 2005 1.090 1.127 -- 2004 1.000 1.090 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.130 1.126 -- 2006 1.033 1.130 -- 2005 1.023 1.033 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.137 1.171 -- 2006 1.076 1.137 -- 2005 1.084 1.076 -- 2004 1.000 1.084 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.203 1.235 -- 2006 1.077 1.203 -- 2005 1.012 1.077 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.163 1.200 -- 2006 1.058 1.163 -- 2005 0.991 1.058 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.126 1.161 -- 2006 1.043 1.126 -- 2005 0.975 1.043 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.158 1.214 -- 2006 1.088 1.158 -- 2005 1.081 1.088 -- 2004 1.000 1.081 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.573 1.738 -- 2006 1.315 1.573 -- 2005 1.170 1.315 -- 2004 1.000 1.170 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.315 1.352 -- 2006 1.201 1.315 -- 2005 1.143 1.201 -- 2004 1.000 1.143 --
A-9 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.133 1.195 -- 2006 1.129 1.133 -- 2005 1.070 1.129 -- 2004 1.000 1.070 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.952 1.541 -- 2006 1.465 1.952 -- 2005 1.307 1.465 -- 2004 1.000 1.307 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.085 1.273 -- 2006 1.031 1.085 -- 2005 1.010 1.031 -- 2004 0.992 1.010 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.393 1.261 -- 2006 1.250 1.393 -- 2005 1.153 1.250 -- 2004 1.000 1.153 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.098 1.162 -- 2005 1.107 1.098 -- 2004 1.000 1.107 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.138 1.179 -- 2006 1.098 1.138 -- 2005 1.098 1.098 -- 2004 1.000 1.098 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.245 1.237 -- 2006 1.109 1.245 -- 2005 1.086 1.109 -- 2004 1.000 1.086 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix C for more information on Variable Funding Option mergers, substitutions and other changes. A-10 Effective on or about 05/01/2006, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Capital Appreciation Fund/VA was replaced by Met Investors Series Trust- Oppenheimer Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Global Securities Fund/VA was replaced by Metropolitan Series Fund, Inc.- Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/24/2006, Pioneer Variable Contracts Trust-Pioneer Small Company VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer AmPac Growth VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Oak Ridge Large Cap Growth VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Balanced VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Ibbotson Moderate Allocation VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Europe VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer International Value VCT Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, AIM Variable Insurance Funds-AIM V.I. Capital Appreciation Fund was replaced by Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Total Return Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Capital and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II, Inc.-Legg Mason Partners Variable Aggressive Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer Value VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Fund VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer America Income VCT Portfolio merged into Pioneer Variable Contracts Trust- Pioneer Bond VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust -- Pioneer Equity Opportunity VCT Portfolio liquidated its assets and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust -- Pioneer Small and Mid Cap Growth VCT Portfolio liquidated its assets and is no longer available as a funding option. A-11 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX B - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT FOURTEEN FOR VARIABLE ANNUITIES ACCUMULATION UNIT VALUES (IN DOLLARS) The following Accumulation Unit Value ("AUV") information should be read in conjunction with the Separate Account's audited financial statement and notes, which are included in the Statement of Additional Information ("SAI"). The first table provides the AUV information for the MINIMUM Separate Account Charge available under the contract. The second table provides the AUV information for the MAXIMUM Separate Account Charge available under the contract. Please refer to the Fee Table section of this prospectus for more information on Separate Account Charges. PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (6/03)......................................... 2007 1.432 1.527 -- 2006 1.371 1.432 74,611 2005 1.283 1.371 90,361 2004 1.225 1.283 70,363 2003 1.000 1.225 102,973 AIM V.I. Mid Cap Core Equity Subaccount (Series II) (6/03)............................................. 2007 1.606 1.728 97,733 2006 1.470 1.606 110,829 2005 1.392 1.470 138,051 2004 1.244 1.392 138,541 2003 1.000 1.244 16,060 Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.561 1.495 340,206 2006 1.353 1.561 445,274 2005 1.329 1.353 464,455 2004 1.216 1.329 415,254 2003 1.000 1.216 263,583 FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (6/03)........................ 2007 1.618 1.772 79,595 2006 1.512 1.618 166,806 2005 1.465 1.512 178,373 2004 1.335 1.465 206,802 2003 1.000 1.335 121,712
B-1 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (6/03)................................... 2007 2.026 2.303 125,831 2006 1.694 2.026 185,473 2005 1.562 1.694 181,047 2004 1.338 1.562 97,374 2003 1.000 1.338 46,950 Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.625 1.566 71,555 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.367 1.372 92,437 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.732 1.660 26,154 Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (11/05)....... 2007 1.203 1.261 -- 2006 1.037 1.203 -- 2005 1.018 1.037 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.334 1.372 -- 2006 1.207 1.334 106,018 2005 1.191 1.207 111,751 2004 1.115 1.191 122,812 2003 1.000 1.115 18,372 Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (7/03)............................................. 2007 1.585 1.640 -- 2006 1.453 1.585 72,453 2005 1.346 1.453 275,500 2004 1.257 1.346 265,847 2003 1.000 1.257 135,300 Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.508 1.574 67,496 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.008 1.134 225,717 2006 1.000 1.008 283,487 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.034 1.070 782,740 2006 1.000 1.034 183,898 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.980 80,419 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.052 1.101 93,076 2006 1.000 1.052 218,957
B-2 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Money Market Portfolio Money Market Subaccount (6/03)..................... 2006 1.002 1.011 -- 2005 0.989 1.002 17,323 2004 0.994 0.989 60,459 2003 1.000 0.994 59,552 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.337 1.397 -- 2005 1.295 1.337 210,125 2004 1.233 1.295 245,463 2003 1.000 1.233 346,877 Oppenheimer Global Securities Subaccount/VA (Service Shares) (8/03)............................ 2006 1.858 2.023 -- 2005 1.654 1.858 106,627 2004 1.413 1.654 91,372 2003 1.000 1.413 96,013 Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (7/03)............................................. 2007 1.028 1.067 -- 2006 1.012 1.028 172,634 2005 1.010 1.012 190,197 2004 0.996 1.010 186,533 2003 1.000 0.996 75,439 Pioneer AmPac Growth VCT Subaccount (Class II) (4/04)............................................. 2006 0.998 1.123 -- 2005 1.002 0.998 -- 2004 1.027 1.002 -- Pioneer Balanced VCT Subaccount (Class II) (6/03).. 2006 1.168 1.243 -- 2005 1.143 1.168 114,955 2004 1.110 1.143 57,039 2003 1.000 1.110 107,929 Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.092 112,678 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.252 1.312 110,563 2006 1.086 1.252 79,028 2005 1.006 1.086 35,442 Pioneer Emerging Markets VCT Subaccount (Class II) (6/03)............................................. 2007 3.190 4.474 30,121 2006 2.391 3.190 32,231 2005 1.765 2.391 37,073 2004 1.510 1.765 28,063 2003 1.000 1.510 27,892
B-3 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Income VCT Subaccount (Class II) (6/03)............................................. 2007 1.720 1.703 256,721 2006 1.430 1.720 263,957 2005 1.377 1.430 268,042 2004 1.205 1.377 227,382 2003 1.000 1.205 477,856 Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.251 1.377 -- 2006 1.065 1.251 -- 2005 1.000 1.065 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.585 2.015 -- 2005 1.493 1.585 10,286 2004 1.283 1.493 11,186 2003 1.000 1.283 11,186 Pioneer Fund VCT Subaccount (Class II) (6/03)...... 2007 1.583 1.633 302,470 2006 1.382 1.583 443,492 2005 1.324 1.382 451,670 2004 1.213 1.324 827,946 2003 1.000 1.213 224,211 Pioneer Global High Yield VCT Subaccount (Class II) (9/05)............................................. 2007 1.148 1.154 46,137 2006 1.041 1.148 14,971 2005 1.034 1.041 -- Pioneer High Yield VCT Subaccount (Class II) (6/03)............................................. 2007 1.305 1.357 434,367 2006 1.224 1.305 705,392 2005 1.223 1.224 952,907 2004 1.153 1.223 1,312,795 2003 1.000 1.153 987,536 Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (3/05)....................... 2007 1.222 1.266 181,385 2006 1.085 1.222 101,347 2005 0.987 1.085 101,347 Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (7/05).................................. 2007 1.182 1.230 155,071 2006 1.065 1.182 83,581 2005 1.019 1.065 67,694 Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.144 1.190 59,821 2006 1.050 1.144 96,610 2005 0.999 1.050 --
B-4 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Independence VCT Subaccount (Class II) (7/03)............................................. 2007 1.318 1.394 33,741 2006 1.228 1.318 54,517 2005 1.208 1.228 57,046 2004 1.154 1.208 60,163 2003 1.000 1.154 30,996 Pioneer International Value VCT Subaccount (Class II) (7/03)......................................... 2007 2.059 2.296 28,530 2006 1.706 2.059 22,057 2005 1.504 1.706 13,270 2004 1.290 1.504 13,236 2003 1.000 1.290 13,806 Pioneer Mid Cap Value VCT Subaccount (Class II) (6/03)............................................. 2007 1.859 1.929 208,382 2006 1.682 1.859 207,918 2005 1.587 1.682 213,464 2004 1.324 1.587 221,978 2003 1.000 1.324 102,907 Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (4/04).................................. 2007 1.181 1.257 53,272 2006 1.167 1.181 39,015 2005 1.095 1.167 29,435 2004 1.039 1.095 55,286 Pioneer Real Estate Shares VCT Subaccount (Class II) (7/03)......................................... 2007 2.555 2.035 17,247 2006 1.901 2.555 47,848 2005 1.681 1.901 38,066 2004 1.261 1.681 17,124 2003 1.000 1.261 7,399 Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (3/04).................................. 2007 1.174 1.388 -- 2006 1.106 1.174 37,676 2005 1.074 1.106 25,157 2004 0.990 1.074 48,035 Pioneer Small Cap Value VCT Subaccount (Class II) (8/03)............................................. 2007 1.966 1.797 113,092 2006 1.749 1.966 83,786 2005 1.599 1.749 100,795 2004 1.355 1.599 92,203 2003 1.000 1.355 79,274 Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.434 1.523 -- 2005 1.433 1.434 3,771 2004 1.285 1.433 4,694 2003 1.000 1.285 2,996
B-5 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Strategic Income VCT Subaccount (Class II) (6/03)............................................. 2007 1.245 1.301 404,041 2006 1.190 1.245 447,726 2005 1.179 1.190 505,065 2004 1.089 1.179 434,953 2003 1.000 1.089 73,086 Pioneer Value VCT Subaccount (Class II) (7/03)..... 2007 1.526 1.528 -- 2006 1.347 1.526 34,144 2005 1.307 1.347 32,323 2004 1.192 1.307 49,476 2003 1.000 1.192 22,290
PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (6/03)......................................... 2007 1.156 1.229 -- 2006 1.117 1.156 -- 2005 1.054 1.117 -- 2004 1.000 1.054 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (6/03)............................................. 2007 1.207 1.287 -- 2006 1.115 1.207 -- 2005 1.065 1.115 -- 2004 1.000 1.065 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.237 1.174 -- 2006 1.082 1.237 -- 2005 1.072 1.082 -- 2004 1.000 1.072 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (6/03)........................ 2007 1.176 1.277 -- 2006 1.109 1.176 -- 2005 1.084 1.109 -- 2004 1.000 1.084 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (6/03)................................... 2007 1.472 1.658 -- 2006 1.242 1.472 -- 2005 1.155 1.242 -- 2004 1.000 1.155 --
B-6 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.244 1.191 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.183 1.181 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.282 1.221 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (11/05)....... 2007 1.183 1.237 -- 2006 1.029 1.183 -- 2005 1.011 1.029 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.159 1.189 -- 2006 1.058 1.159 -- 2005 1.053 1.058 -- 2004 1.000 1.053 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (7/03)............................................. 2007 1.217 1.255 -- 2006 1.126 1.217 -- 2005 1.052 1.126 -- 2004 1.000 1.052 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.213 1.259 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.002 1.117 -- 2006 1.000 1.002 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.020 1.046 -- 2006 1.000 1.020 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.974 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.046 1.085 -- 2006 1.000 1.046 -- Money Market Portfolio Money Market Subaccount (6/03)..................... 2006 0.998 1.004 -- 2005 0.994 0.998 -- 2004 1.000 0.994 --
B-7 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.071 1.116 -- 2005 1.046 1.071 -- 2004 1.000 1.046 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (8/03)............................ 2006 1.300 1.412 -- 2005 1.168 1.300 -- 2004 1.000 1.168 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (7/03)............................................. 2007 1.032 1.063 -- 2006 1.025 1.032 -- 2005 1.032 1.025 -- 2004 1.000 1.032 -- Pioneer AmPac Growth VCT Subaccount (Class II) (4/04)............................................. 2006 0.979 1.092 -- 2005 0.992 0.979 -- 2004 1.000 0.992 -- Pioneer Balanced VCT Subaccount (Class II) (6/03).. 2006 1.038 1.095 -- 2005 1.025 1.038 -- 2004 1.000 1.025 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.233 1.280 -- 2006 1.078 1.233 -- 2005 1.003 1.078 -- Pioneer Emerging Markets VCT Subaccount (Class II) (6/03)............................................. 2007 2.299 3.195 -- 2006 1.738 2.299 -- 2005 1.295 1.738 -- 2004 1.000 1.295 -- Pioneer Equity Income VCT Subaccount (Class II) (6/03)............................................. 2007 1.380 1.354 -- 2006 1.158 1.380 -- 2005 1.124 1.158 -- 2004 1.000 1.124 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.231 1.345 -- 2006 1.058 1.231 -- 2005 1.000 1.058 --
B-8 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.238 1.560 -- 2005 1.177 1.238 -- 2004 1.000 1.177 -- Pioneer Fund VCT Subaccount (Class II) (6/03)...... 2007 1.279 1.308 -- 2006 1.127 1.279 -- 2005 1.090 1.127 -- 2004 1.000 1.090 -- Pioneer Global High Yield VCT Subaccount (Class II) (9/05)............................................. 2007 1.130 1.126 -- 2006 1.033 1.130 -- 2005 1.030 1.033 -- Pioneer High Yield VCT Subaccount (Class II) (6/03)............................................. 2007 1.137 1.171 -- 2006 1.076 1.137 -- 2005 1.084 1.076 -- 2004 1.000 1.084 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (3/05)....................... 2007 1.203 1.235 -- 2006 1.077 1.203 -- 2005 0.987 1.077 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (7/05).................................. 2007 1.163 1.200 -- 2006 1.058 1.163 -- 2005 1.016 1.058 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.126 1.161 -- 2006 1.043 1.126 -- 2005 0.999 1.043 -- Pioneer Independence VCT Subaccount (Class II) (7/03)............................................. 2007 1.158 1.214 -- 2006 1.088 1.158 -- 2005 1.081 1.088 -- 2004 1.000 1.081 -- Pioneer International Value VCT Subaccount (Class II) (7/03)......................................... 2007 1.573 1.738 -- 2006 1.315 1.573 -- 2005 1.170 1.315 -- 2004 1.000 1.170 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (6/03)............................................. 2007 1.315 1.352 -- 2006 1.201 1.315 -- 2005 1.143 1.201 -- 2004 1.000 1.143 --
B-9 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (4/04).................................. 2007 1.133 1.195 -- 2006 1.129 1.133 -- 2005 1.070 1.129 -- 2004 1.000 1.070 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (7/03)......................................... 2007 1.952 1.541 -- 2006 1.465 1.952 -- 2005 1.307 1.465 -- 2004 1.000 1.307 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (3/04).................................. 2007 1.085 1.273 -- 2006 1.031 1.085 -- 2005 1.010 1.031 -- 2004 1.000 1.010 -- Pioneer Small Cap Value VCT Subaccount (Class II) (8/03)............................................. 2007 1.393 1.261 -- 2006 1.250 1.393 -- 2005 1.153 1.250 -- 2004 1.000 1.153 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.098 1.162 -- 2005 1.107 1.098 -- 2004 1.000 1.107 -- Pioneer Strategic Income VCT Subaccount (Class II) (6/03)............................................. 2007 1.138 1.179 -- 2006 1.098 1.138 -- 2005 1.098 1.098 -- 2004 1.000 1.098 -- Pioneer Value VCT Subaccount (Class II) (7/03)..... 2007 1.245 1.237 -- 2006 1.109 1.245 -- 2005 1.086 1.109 -- 2004 1.000 1.086 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix C for more information on Variable Funding Option mergers, substitutions and other changes. B-10 Effective on or about 05/01/2006, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Capital Appreciation Fund/VA was replaced by Met Investors Series Trust- Oppenheimer Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Global Securities Fund/VA was replaced by Metropolitan Series Fund, Inc.- Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/24/2006, Pioneer Variable Contracts Trust-Pioneer Small Company VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer AmPac Growth VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Oak Ridge Large Cap Growth VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Balanced VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Ibbotson Moderate Allocation VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Europe VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer International Value VCT Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, AIM Variable Insurance Funds-AIM V.I. Capital Appreciation Fund was replaced by Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Total Return Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Capital and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II, Inc.-Legg Mason Partners Variable Aggressive Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer Value VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Fund VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer America Income VCT Portfolio merged into Pioneer Variable Contracts Trust- Pioneer Bond VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust -- Pioneer Equity Opportunity VCT Portfolio liquidated its assets and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust -- Pioneer Small and Mid Cap Growth VCT Portfolio liquidated its assets and is no longer available as a funding option. B-11 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX C - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION REGARDING UNDERLYING FUNDS Certain Underlying Funds were subject to a merger, substitution, liquidation or other change. The chart below identifies the former name and new name of each of these Underlying Funds, and the former name and new name of the trust of which the Underlying Fund is a part. UNDERLYING FUND NAME CHANGE
FORMER NAME NEW NAME - --------------------------------------------- --------------------------------------------- PIONEER VARIABLE CONTRACTS TRUST PIONEER VARIABLE CONTRACTS TRUST Pioneer Growth Shares VCT Portfolio Pioneer Independence VCT Portfolio
UNDERLYING FUND MERGERS/REORGANIZATIONS The following former Underlying Funds were merged with or reorganized into the new Underlying Funds and /or were reorganized into a new trust.
FORMER UNDERLYING FUND/TRUST NEW UNDERLYING FUND/TRUST - --------------------------------------------- --------------------------------------------- PIONEER VARIABLE CONTRACTS TRUST PIONEER VARIABLE CONTRACTS TRUST Pioneer America Income VCT Portfolio Pioneer Bond VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST PIONEER VARIABLE CONTRACTS TRUST Pioneer Value VCT Portfolio Pioneer Fund VCT Portfolio
UNDERLYING FUND SUBSTITUTION The following new Underlying Fund was substituted for the former Underlying Fund.
FORMER UNDERLYING FUND NEW UNDERLYING FUND - --------------------------------------------- --------------------------------------------- AIM VARIABLE INSURANCE FUNDS MET INVESTORS SERIES TRUST AIM V.I. Mid Cap Core Equity Portfolio Lazard Mid Cap Portfolio
UNDERLYING FUND LIQUIDATIONS The following Underlying Funds were liquidated and are no longer available in your contract. PIONEER VARIABLE CONTRACTS TRUST Pioneer Equity Opportunity Portfolio PIONEER VARIABLE CONTRACTS TRUST Pioneer Small and Mid Cap Portfolio
C-1 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX D - -------------------------------------------------------------------------------- THE FIXED ACCOUNT The Fixed Account is part of the Company's general account assets. These general account assets include all assets of the Company other than those held in the Separate Accounts sponsored by the Company or its affiliates. The staff of the SEC does not generally review the disclosure in the prospectus relating to the Fixed Account. Disclosure regarding the Fixed Account and the general account may, however, be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in the prospectus. Under the Fixed Account, the Company assumes the risk of investment gain or loss, guarantees a specified interest rate, and guarantees a specified periodic Annuity Payment. The investment gain or loss of the Separate Account or any of the funding options does not affect the Fixed Account Contract Value, or the dollar amount of fixed Annuity Payments made under any payout option. We guarantee that, at any time, the Fixed Account Contract Value will not be less than the amount of the Purchase Payments allocated to the Fixed Account, plus interest credited as described below, less any applicable premium taxes or prior withdrawals. Purchase Payments allocated to the Fixed Account and any transfers made to the Fixed Account become part of the Company's general account, which supports insurance and annuity obligations. Where permitted by state law, we reserve the right to restrict Purchase Payments into the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified in your Contract. The general account and any interest therein are not registered under, or subject to the provisions of, the Securities Act of 1933 or Investment Company Act of 1940. We will invest the assets of the Fixed Account at our discretion. Investment income from such Fixed Account assets will be allocated to us and to the Contracts participating in the Fixed Account. Investment income from the Fixed Account allocated to us includes compensation for mortality and expense risks borne by us in connection with Fixed Account Contracts. The amount of such investment income allocated to the Contracts will vary from year to year in our sole discretion at such rate or rates as we prospectively declare from time to time. We guarantee the initial rate for any allocations into the Fixed Account for one year from the date of such allocation. We guarantee subsequent renewal rates for the calendar quarter. We also guarantee that for the life of the Contract we will credit interest at a rate not less than the minimum interest rate allowed by state law. We reserve the right to change the rate subject to applicable state law. We will determine any interest we credit to amounts allocated to the Fixed Account in excess of the minimum guaranteed rate in our sole discretion. You assume the risk that interest credited to the Fixed Account may not exceed the minimum guaranteed rate for any given year. We have no specific formula for determining the interest rate. Some factors we may consider are regulatory and tax requirements, general economic trends and competitive factors. TRANSFERS You may make transfers from the Fixed Account to any available Variable Funding Option(s) twice a year during the 30 days following the semiannual anniversary of the Contract Date. We limit transfers to an amount of up to 15% of the Fixed Account Contract Value on the semiannual Contract Date anniversary. (This restriction does not apply to transfers under the Dollar Cost Averaging Program.) Amounts previously transferred from the Fixed Account to Variable Funding Options may not be transferred back to the Fixed Account for a period of at least six months from the date of transfer. We reserve the right to waive either of these restrictions. Where permitted by state law, we reserve the right to restrict transfers into the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified in your Contract. Automated transfers from the Fixed Account to any of the Variable Funding Options may begin at any time. Automated transfers from the Fixed Account may not deplete your Fixed Account value in a period of less than twelve months from your enrollment in the Dollar Cost Averaging Program. D-1 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX E - -------------------------------------------------------------------------------- WAIVER OF WITHDRAWAL CHARGE FOR NURSING HOME CONFINEMENT (AVAILABLE ONLY IF THE OWNER IS AGE 70 OR YOUNGER ON THE DATE THE CONTRACT IS ISSUED.) If, after the first Contract Year and before the Maturity Date, and you begin confinement in an eligible nursing home, you may surrender or make withdrawal, subject to the maximum withdrawal amount described below, without incurring a withdrawal charge. In order for the Company to waive the withdrawal charge, the withdrawal must be made during continued confinement in an eligible nursing home after the qualifying period has been satisfied, or within sixty (60) days after such confinement ends. The qualifying period is confinement in an eligible nursing home for ninety (90) consecutive days. We will require proof of confinement in a form satisfactory to us, which may include certification by a licensed physician that such confinement is medically necessary. An eligible nursing home is defined as an institution or special nursing unit of a hospital which: (a) is Medicare approved as a provider of skilled nursing care services; and (b) is not, other than in name only, an acute care hospital, a home for the aged, a retirement home, a rest home, a community living center, or a place mainly for the treatment of alcoholism. OR Meets all of the following standards: (a) is licensed as a nursing care facility by the state in which it is licensed; (b) is either a freestanding facility or a distinct part of another facility such as a ward, wing, unit or swing-bed of a hospital or other facility; (c) provides nursing care to individuals who are not able to care for themselves and who require nursing care; (d) provides, as a primary function, nursing care and room and board; and charges for these services; (e) provides care under the supervision of a licensed physician, registered nurse (RN) or licensed practical nurse (LPN); (f) may provide care by a licensed physical, respiratory, occupational or speech therapist; and (g) is not, other than in name only, an acute care hospital, a home for the aged, a retirement home, a rest home, a community living center, or a place mainly for the treatment of alcoholism. We will not waive withdrawal charges if confinement is due to one or more of the following causes: (a) mental, nervous, emotional or personality disorder without demonstrable organic disease, including, but not limited to, neurosis, psychoneurosis, psychopathy or psychosis (b) the voluntary taking or injection of drugs, unless prescribed or administered by a licensed physician (c) the voluntary taking of any drugs prescribed by a licensed physician and intentionally not taken as prescribed (d) sensitivity to drugs voluntarily taken, unless prescribed by a physician (e) drug addiction, unless addiction results from the voluntary taking of drugs prescribed by a licensed physician, or the involuntary taking of drugs. FILING A CLAIM: You must provide the Company with written notice of a claim during continued confinement after the 90-day qualifying period, or within sixty days after such confinement ends. E-1 The maximum withdrawal amount for which we will waive the withdrawal charge is the Contract Value on the next valuation date following written proof of claim, less any Purchase Payments made within a one-year period before confinement in an eligible nursing home begins, less any Purchase Payment made on or after the Annuitant's 71st birthday. We will pay any withdrawal requested under the scope of this waiver as soon as we receive proper written proof of your claim, and we will pay the withdrawal in a lump sum. You should consult with your tax adviser regarding the tax impact of any withdrawals taken from your Contract. E-2 APPENDIX F - -------------------------------------------------------------------------------- CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION The Statement of Additional Information contains more specific information and financial statements relating to the Separate Account and MetLife Insurance Company of Connecticut. A list of the contents of the Statement of Additional Information is set forth below: The Insurance Company Principal Underwriter Distribution and Principal Underwriting Agreement Valuation of Assets Federal Tax Considerations Independent Registered Public Accounting Firm Condensed Financial Information Financial Statements - -------------------------------------------------------------------------------- Copies of the Statement of Additional Information dated April 28, 2008 are available without charge. To request a copy, please clip this coupon on the line above, enter your name and address in the spaces provided below, and mail to MetLife Insurance Company of Connecticut, P.O. Box 10366, Des Moines, IA 50306- 0366. For the MetLife Insurance Company of Connecticut Statement of Additional Information please request MIC-Book-72-73-87. For the Statement of Additional Information for the contracts issued by the former MetLife Life and Annuity Company of Connecticut please request MLAC-Book-72-73-87. Name: ------------------------------------------------- Address: ---------------------------------------------- CHECK BOX: [ ] MIC-Book-72-73-87 [ ] MLAC-Book-72-73-87 F-1 PORTFOLIO ARCHITECT II ANNUITY ISSUED BY METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES METLIFE INSURANCE COMPANY OF CONNECTICUT SUPPLEMENT DATED OCTOBER 13, 2008 TO THE PROSPECTUS DATED APRIL 28, 2008 Effective October 13, 2008, the Company combined MetLife of CT Separate Account Thirteen for Variable Annuities (the "Former Separate Account") with and into MetLife of CT Separate Account Eleven for Variable Annuities (the "Separate Account"). The Separate Account was established on November 14, 2002 and is registered with the Securities and Exchange Commission as a unit investment trust under the Investment Company Act of 1940, as amended. In connection with the combination of the Former Separate Account with and into the Separate Account (the "Combination"), we transferred the assets of the Former Separate Account to the Separate Account and the Separate Account assumed the liabilities and contractual obligations of the Former Separate Account. All references in your Prospectus to the Former Separate Account now refer to the Separate Account. The Combination does not affect you in any way. More particularly: - There are no changes in our obligations or your rights and benefits under the Contract as a result of the Combination. - Your Contract Value is not affected by the Combination and no charges have been or will be imposed in connection therewith. - The Variable Funding Options available under your Contract have not changed as a result of the Combination. - Your Contract Value is allocated to the same Variable Funding Options (with the same Accumulation Unit values or Annuity Unit values) as it was before the Combination. - The Combination does not result in any federal income tax consequences to you. If you have any questions, please contact us at 800-842-9368. PORTFOLIO ARCHITECT II ANNUITY PROSPECTUS: METLIFE OF CT SEPARATE ACCOUNT THIRTEEN FOR VARIABLE ANNUITIES METLIFE OF CT SEPARATE ACCOUNT FOURTEEN FOR VARIABLE ANNUITIES APRIL 28, 2008 This prospectus describes PORTFOLIO ARCHITECT II ANNUITY, a flexible premium deferred variable annuity contract (the "Contract") issued by MetLife Insurance Company of Connecticut. The Contract is available in connection with certain retirement plans that qualify for special federal income tax treatment ("Qualified Contracts") as well as those that do not qualify for such treatment ("Non-qualified Contracts"). We may issue it as an individual contract or as a group contract. When we issue a group contract, you will receive a certificate summarizing the Contract's provisions. For convenience, we refer to contracts and certificates as "Contracts." You can choose to have your premium ("Purchase Payments") accumulate on a variable and/or, subject to availability, fixed basis in one or more of our funding options. Your Contract Value before the Maturity Date and the amount of monthly income afterwards will vary daily to reflect the investment experience of the Variable Funding Options you select. You bear the investment risk of investing in the Variable Funding Options. The Variable Funding Options available for contracts purchased on or after April 28, 2008 are: AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 Lord Abbett Bond Debenture American Funds Global Growth Fund Portfolio -- Class A American Funds Growth Fund Lord Abbett Growth and Income American Funds Growth-Income Fund Portfolio -- Class B FIDELITY(R) VARIABLE INSURANCE Lord Abbett Mid Cap Value PRODUCTS -- SERVICE CLASS 2 Portfolio -- Class B Contrafund(R) Portfolio Met/AIM Capital Appreciation Mid Cap Portfolio Portfolio -- Class A FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS Met/AIM Small Cap Growth Portfolio -- Class TRUST -- CLASS 2 A Templeton Foreign Securities Fund MFS(R) Emerging Markets Equity JANUS ASPEN SERIES -- SERVICE SHARES Portfolio -- Class B Global Technology Portfolio PIMCO Inflation Protected Bond LEGG MASON PARTNERS VARIABLE EQUITY TRUST Portfolio -- Class A Legg Mason Partners Variable Aggressive Pioneer Fund Portfolio -- Class A Growth Portfolio -- Class I Pioneer Strategic Income Portfolio -- Class Legg Mason Partners Variable Appreciation A Portfolio -- Class I Third Avenue Small Cap Value Legg Mason Partners Variable Equity Index Portfolio -- Class B Portfolio -- Class II METROPOLITAN SERIES FUND, INC. Legg Mason Partners Variable Fundamental BlackRock Aggressive Growth Value Portfolio -- Class I Portfolio -- Class D Legg Mason Partners Variable Investors BlackRock Bond Income Portfolio -- Class A Portfolio -- Class I BlackRock Money Market Portfolio -- Class A Legg Mason Partners Variable Large Cap Davis Venture Value Portfolio -- Class A Growth Portfolio -- Class I FI Large Cap Portfolio -- Class A Legg Mason Partners Variable Small Cap FI Value Leaders Portfolio -- Class D Growth Portfolio -- Class I MetLife Aggressive Allocation Legg Mason Partners Variable Social Portfolio -- Class B Awareness Portfolio MetLife Conservative Allocation LEGG MASON PARTNERS VARIABLE INCOME TRUST Portfolio -- Class B Legg Mason Partners Variable Adjustable MetLife Conservative to Moderate Allocation Rate Income Portfolio Portfolio -- Class B MET INVESTORS SERIES TRUST MetLife Moderate Allocation BlackRock High Yield Portfolio -- Class A Portfolio -- Class B BlackRock Large Cap Core Portfolio -- Class MetLife Moderate to Aggressive Allocation E Portfolio -- Class B Clarion Global Real Estate MFS(R) Total Return Portfolio -- Class F Portfolio -- Class A MFS(R) Value Portfolio -- Class A Dreman Small Cap Value Portfolio -- Class A Oppenheimer Global Equity Harris Oakmark International Portfolio -- Class B Portfolio -- Class A T. Rowe Price Small Cap Growth Janus Forty Portfolio -- Class A Portfolio -- Class B Lazard Mid Cap Portfolio -- Class B Western Asset Management U.S. Government Legg Mason Partners Managed Assets Portfolio -- Class A Portfolio -- Class A PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS Total Return Portfolio VAN KAMPEN LIFE INVESTMENT TRUST -- CLASS II Comstock Portfolio
Certain Variable Funding Options have been subject to a merger, substitution or other change. Please see "Appendix C -- Additional Information Regarding Underlying Funds" for more information. The Contract, certain Contract features and/or some of the funding options may not be available in all states. This prospectus provides the information that you should know before investing in the Contract. Please keep this prospectus for future reference. You can receive additional information about your Contract by requesting a copy of the Statement of Additional Information ("SAI") dated April 28, 2008. We filed the SAI with the Securities and Exchange Commission ("SEC"), and it is incorporated by reference into this prospectus. To request a copy, write to us at P.O. Box 10366, Des Moines, IA 50306-0366, call 800-842-9368 or access the SEC's website (http://www.sec.gov). See Appendix F for the SAI's table of contents. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. VARIABLE ANNUITY CONTRACTS ARE NOT DEPOSITS OF ANY BANK, AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. TABLE OF CONTENTS
PAGE ---- GLOSSARY................................................................ 3 SUMMARY................................................................. 5 FEE TABLE............................................................... 9 CONDENSED FINANCIAL INFORMATION......................................... 14 THE ANNUITY CONTRACT.................................................... 14 Contract Owner Inquiries................................................ 15 Purchase Payments....................................................... 15 Accumulation Units...................................................... 16 The Variable Funding Options............................................ 16 FIXED ACCOUNT........................................................... 22 CHARGES AND DEDUCTIONS.................................................. 22 General................................................................. 22 Withdrawal Charge....................................................... 23 Free Withdrawal Allowance............................................... 24 Transfer Charge......................................................... 24 Administrative Charges.................................................. 24 Mortality and Expense Risk Charge....................................... 24 Variable Liquidity Benefit Charge....................................... 25 Enhanced Stepped-Up Provision Charge.................................... 25 Guaranteed Minimum Withdrawal Benefit Charge............................ 25 Guaranteed Minimum Accumulation Benefit Charge.......................... 25 Variable Funding Option Expenses........................................ 25 Premium Tax............................................................. 25 Changes in Taxes Based upon Premium or Value............................ 25 TRANSFERS............................................................... 26 Market Timing/Excessive Trading......................................... 26 Dollar Cost Averaging................................................... 28 ACCESS TO YOUR MONEY.................................................... 29 Systematic Withdrawals.................................................. 29 OWNERSHIP PROVISIONS.................................................... 30 Types of Ownership...................................................... 30 Contract Owner.......................................................... 30 Beneficiary............................................................. 30 Annuitant............................................................... 30 DEATH BENEFIT........................................................... 31 Death Proceeds before the Maturity Date................................. 31 Enhanced Stepped-Up Provision ("E.S.P.")................................ 34 Payment of Proceeds..................................................... 34 Spousal Contract Continuance (subject to availability--does not apply if a non-spouse is a joint owner)........................................ 36 Beneficiary Contract Continuance (not permitted for non-natural beneficiaries)........................................................ 37 Planned Death Benefit................................................... 37 Death Proceeds after the Maturity Date.................................. 38 LIVING BENEFITS......................................................... 38 Guaranteed Minimum Withdrawal Benefit ("GMWB" or "Principal Guarantee")........................................................... 38 THE ANNUITY PERIOD...................................................... 49 Maturity Date........................................................... 49 Allocation of Annuity................................................... 49 Variable Annuity........................................................ 49 Fixed Annuity........................................................... 50 PAYMENTS OPTIONS........................................................ 50 Election of Options..................................................... 50 Annuity Options......................................................... 51 Variable Liquidity Benefit.............................................. 51 MISCELLANEOUS CONTRACT PROVISIONS....................................... 51 Right to Return......................................................... 51 Termination............................................................. 52 Required Reports........................................................ 52 Suspension of Payments.................................................. 52 THE SEPARATE ACCOUNTS................................................... 52 Performance Information................................................. 53 FEDERAL TAX CONSIDERATIONS.............................................. 53 General Taxation of Annuities........................................... 54 Types of Contracts: Qualified and Non-qualified......................... 54 Qualified Annuity Contracts............................................. 54 Taxation of Qualified Annuity Contracts................................. 55 Mandatory Distributions for Qualified Plans............................. 55 Individual Retirement Annuities......................................... 56 Roth IRAs............................................................... 56 TSAs (ERISA and Non-ERISA).............................................. 56 Non-qualified Annuity Contracts......................................... 58 Diversification Requirements for Variable Annuities..................... 60 Ownership of the Investments............................................ 60 Taxation of Death Benefit Proceeds...................................... 60 Other Tax Considerations................................................ 60 Treatment of Charges for Optional Benefits.............................. 60 Guaranteed Minimum Withdrawal Benefits.................................. 60 Puerto Rico Tax Considerations.......................................... 61 Non-Resident Aliens..................................................... 61 Tax Credits and Deductions.............................................. 61 OTHER INFORMATION....................................................... 61 The Insurance Company................................................... 61 Financial Statements.................................................... 62 Distribution of Variable Annuity Contracts.............................. 62 Conformity with State and Federal Laws.................................. 64 Voting Rights........................................................... 64 Restrictions on Financial Transactions.................................. 64 Legal Proceedings....................................................... 64 APPENDIX A: CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT THIRTEEN FOR VARIABLE ANNUITIES............................... A-1 APPENDIX B: CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT FOURTEEN FOR VARIABLE ANNUITIES............................... B-1 APPENDIX C: ADDITIONAL INFORMATION REGARDING UNDERLYING FUNDS........... C-1 APPENDIX D: THE FIXED ACCOUNT........................................... D-1 APPENDIX E: WAIVER OF WITHDRAWAL CHARGE FOR NURSING HOME CONFINEMENT.... E-1 APPENDIX F: CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION......... F-1
2 GLOSSARY ACCUMULATION UNIT -- an accounting unit of measure used to calculate the value of this Contract before Annuity Payments begin. ANNUITANT -- the person on whose life the Maturity Date and Annuity Payments depend. ANNUITY PAYMENTS -- a series of periodic payments (a) for life; (b) for life with a minimum number of payments; (c) for the joint lifetime of the Annuitant and another person, and thereafter during the lifetime of the survivor; or (d) for a fixed period. ANNUITY UNIT -- an accounting unit of measure used to calculate the amount of Annuity Payments. CASH SURRENDER VALUE -- the Contract Value less any withdrawal charge and premium tax not previously deducted. CODE -- the Internal Revenue Code of 1986, as amended, and all related laws and regulations that are in effect during the term of this Contract. CONTINGENT ANNUITANT -- the individual who becomes the Annuitant when the Annuitant who is not the owner dies prior to the Maturity Date. CONTRACT DATE -- the date on which the Contract is issued. CONTRACT OWNER (YOU) -- the person named in the Contract (on the specifications page) as the owner of the Contract. CONTRACT VALUE -- Purchase Payments, plus or minus any investment experience on the amounts allocated to the variable funds or interest on amounts allocated to the Fixed Account, adjusted by any applicable charges and withdrawals. CONTRACT YEARS -- twelve month periods beginning with the Contract Date. DEATH REPORT DATE -- the day on which we have received 1) Due Proof of Death and 2) written payment instructions or election of spousal or beneficiary contract continuation. DUE PROOF OF DEATH -- (i) a copy of a certified death certificate; (ii) a copy of a certified decree of a court of competent jurisdiction as to the finding of death; (iii) a written statement by a medical doctor who attended the deceased; or (iv) any other proof satisfactory to us. FIXED ACCOUNT -- an account that consists of all of the assets under this Contract other than those in the Separate Account. HOME OFFICE -- the Home Office of MetLife Insurance Company of Connecticut or any other office that we may designate for the purpose of administering this Contract. For transfer, withdrawal, surrender, and (if applicable) loan requests, our Home Office address is: MetLife, P.O. Box 10366, Des Moines, IA 50306-0366 (for overnight delivery or courier service only: 4700 Westown Parkway, Suite 200, West Des Moines, IA 50266). For Purchase Payments and (if applicable) loan repayments, our Home Office address is: MetLife, P.O. Box 371857, Pittsburgh, PA 15250-7857. MATURITY DATE -- the date on which the Annuity Payments are to begin. PAYMENT OPTION -- an annuity option elected under your Contract. PURCHASE PAYMENT -- any premium paid by you to initiate or supplement this Contract. QUALIFIED CONTRACT -- a contract used in a retirement plan or program that is intended to qualify under Sections 401, 403, 408, 408A or 414(d) of the Code. SEPARATE ACCOUNT -- a segregated account registered with the Securities and Exchange Commission ("SEC"), the assets of which are invested solely in the Underlying Funds. The assets of the Separate Account are held exclusively for the benefit of Contract Owners. SUBACCOUNT -- that portion of the assets of a Separate Account that is allocated to a particular Underlying Fund. 3 UNDERLYING FUND A portfolio of an open-end management investment company that is registered with the Securities and Exchange Commission in which the Subaccounts invest. VALUATION DATE -- a date on which a Subaccount is valued. VALUATION PERIOD -- the period between successive valuations. VARIABLE FUNDING OPTION -- a Subaccount of the Separate Account that invests in an Underlying Fund. WE, US, OUR -- MetLife Insurance Company of Connecticut. WRITTEN REQUEST -- written information sent to us in a form and content satisfactory to us and received at our Home Office. YOU, YOUR -- "You" is the Contract Owner and a natural person, a trust established for the benefit of a natural person or a charitable remainder trust. 4 SUMMARY: PORTFOLIO ARCHITECT II ANNUITY THIS SUMMARY DETAILS SOME OF THE MORE IMPORTANT POINTS THAT YOU SHOULD KNOW AND CONSIDER BEFORE PURCHASING THE CONTRACT. PLEASE READ THE ENTIRE PROSPECTUS CAREFULLY. WHAT COMPANY WILL ISSUE MY CONTRACT? Your issuing company is MetLife Insurance Company of Connecticut ("the Company," "We" or "Us"). The Company sponsors MetLife of CT Separate Account Thirteen for Variable Annuities ("Separate Account Thirteen") and MetLife of CT Separate Account Fourteen for Variable Annuities ("Separate Account Fourteen"), each a segregated account ("Separate Account"). Prior to December 7, 2007, Separate Account Fourteen was sponsored by MetLife Life and Annuity Company of Connecticut ("MLACC"). On that date, MLACC merged with and into the Company, and the Company became the sponsor of Separate Account Fourteen. Immediately following the merger, the Company stopped issuing Contracts under Separate Account Fourteen and now only issues Contracts under Separate Account Thirteen. When we refer to the Separate Account, we are referring to Separate Account Thirteen, except where the Contract was originally issued by MLACC, in which case, we are referring to Separate Account Fourteen. The Contract and/or certain optional benefits may not currently be available for sale in all states. For contracts issued in New York, a waiver of the withdrawal charge may apply to all Annuity Payments. CAN YOU GIVE ME A GENERAL DESCRIPTION OF THE CONTRACT? We designed the Contract for retirement savings or other long-term investment purposes. The Contract provides a death benefit as well as guaranteed payout options. You direct your payment(s) to one or more of the Variable Funding Options and/or to the Fixed Account that is part of our general account (the "Fixed Account"). We guarantee money directed to the Fixed Account as to principal and interest. The Variable Funding Options fluctuate with the investment performance of the Underlying Funds and are not guaranteed. You can also lose money in the Variable Funding Options. The Contract, like all deferred variable annuity contracts, has two phases: the accumulation phase and the payout phase (annuity period). During the accumulation phase generally, under a Qualified Contract, your pre-tax contributions accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal, presumably when you are in a lower tax bracket. During the accumulation phase, under a Non-qualified Contract, earnings on your after- tax contributions accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal. The payout phase occurs when you begin receiving payments from your Contract. The amount of money you accumulate in your Contract determines the amount of income (Annuity Payments) you receive during the payout phase. During the payout phase, you may choose one of a number of annuity options. You may receive income payments in the form of a variable annuity, a fixed annuity, or a combination of both. If you elect variable income payments, the dollar amount of your payments may increase or decrease. Once you choose one of the annuity options and begin to receive payments, it cannot be changed. WHO CAN PURCHASE THIS CONTRACT? The Contract is available for use in connection with (1) individual non-qualified purchases; (2) rollovers from Individual Retirement Annuities (IRAs); (3) rollovers from other qualified retirement plans and (4) beneficiary-directed transfers of death proceeds from another contract. Qualified Contracts include contracts qualifying under Section 401(a), 403(b), 408(b) or 408A of the Code. Purchase of this Contract through a tax qualified retirement plan ("Plan") does not provide any additional tax deferral benefits beyond those provided by the Plan. Accordingly, if you are purchasing this Contract through a Plan, you should consider purchasing this Contract for its death benefit, annuity option benefits, and other non-tax-related benefits. You may purchase the Contract with an initial payment of at least $5,000. You may make additional payments of at least $500 at any time during the accumulation phase. No additional payments are allowed if this Contract is purchased with a beneficiary-directed transfer of death proceeds. If your Contract was issued as a Qualified Contract under Section 403(b) of the Code in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax advisor prior to making additional purchase payments (if permitted) as significant adverse tax consequences may result from such additional payments. (See "Federal Tax Considerations.") The ages of the owner and Annuitant determine which death benefits and certain optional features are available to you. See "The Annuity Contract" section for more information. 5 CAN I EXCHANGE MY CURRENT ANNUITY CONTRACT FOR THIS CONTRACT? The Code generally permits you to exchange one annuity contract for another in a "tax-free exchange." Therefore, you can transfer the proceeds from another annuity contract to purchase this Contract. Before making an exchange to acquire this Contract, you should carefully compare this Contract to your current contract. You may have to pay a surrender charge under your current contract to exchange it for this Contract, and this Contract has its own surrender charges that would apply to you. The other fees and charges under this Contract may be higher or lower and the benefits may be different than those of your current contract. In addition, you may have to pay federal income or penalty taxes on the exchange if it does not qualify for tax-free treatment. You should not exchange another contract for this Contract unless you determine, after evaluating all the facts, the exchange is in your best interests. Remember that the person selling you the Contract generally will earn a commission on the sale. IS THERE A RIGHT TO RETURN PERIOD? If you cancel the Contract within ten days after you receive it, you will receive a full refund of your Contract Value plus any Contract charges and premium taxes you paid (but not fees and charges assessed by the Underlying Funds). Where state law requires a different right to return period, or the return of Purchase Payments, the Company will comply. You bear the investment risk on the Purchase Payment allocated to a Variable Funding Option during the right to return period; therefore, the Contract Value we return may be greater or less than your Purchase Payment. If you purchased your Contract as an Individual Retirement Annuity, and you return it within the first seven days after delivery, or longer if your state law permits, we will refund your full Purchase Payment. During the remainder of the right to return period, we will refund your Contract Value (including charges we assessed). We will determine your Contract Value at the close of business (generally, 4:00 p.m., Eastern Time) on the day we receive a Written Request for a refund. CAN YOU GIVE A GENERAL DESCRIPTION OF THE VARIABLE FUNDING OPTIONS AND HOW THEY OPERATE? The Variable Funding Options represent Subaccounts of the Separate Account. At your direction, the Separate Account, through its Subaccounts, uses your Purchase Payments to purchase shares of one or more of the Underlying Funds that holds securities consistent with its own investment policy. Depending on market conditions, you may make or lose money in any of these Variable Funding Options. You can transfer among the Variable Funding Options as frequently as you wish without any current tax implications. Currently there is no charge for transfers, nor a limit to the number of transfers allowed. We may, in the future, charge a fee for any transfer request, or limit the number of transfers allowed. At a minimum, we would always allow one transfer every six months. We reserve the right to restrict transfers that we determine will disadvantage other Contract Owners. You may transfer between the Fixed Account and the Variable Funding Options twice a year (during the 30 days after the six-month Contract Date anniversary), provided the amount is not greater than 15% of the Fixed Account value on that date. Where permitted by state law, we also reserve the right to restrict transfers into the Fixed Account if the credited interest rate is equal to the minimum guaranteed interest rate specified under the Contract. Amounts previously transferred from the Fixed Account to the Variable Funding Options may not be transferred back to the Fixed Account for a period of at least six months from the date of the transfer. WHAT EXPENSES WILL BE ASSESSED UNDER THE CONTRACT? The Contract has insurance features and investment features, and there are costs related to each. We deduct an administrative expense charge and a mortality and expense risk ("M&E") charge each business day from amounts you allocate to the Separate Account. We deduct the administrative expense charge at an annual rate of 0.15% and deduct the M&E charge at an annual rate of 1.30% for the Standard Death Benefit, 1.40% for the Step-Up Death Benefit, and 1.60% for the Roll-Up Death Benefit. For Contracts with a value of less than $40,000, we also deduct an annual contract administrative charge of $30. Each Underlying Fund also charges for management costs and other expenses. We will apply a withdrawal charge to withdrawals from the Contract, and will calculate it as a percentage of the Purchase Payments withdrawn. The maximum percentage is 6%, decreasing to 0% after seven full years. (This includes withdrawals resulting from a request to divide the Contract Value due to divorce.) If you select the Enhanced Stepped-Up Provision ("E.S.P."), an additional 0.20% annually will be deducted each business day from amounts in the Variable Funding Options. THIS PROVISION IS NOT AVAILABLE TO A CUSTOMER WHEN EITHER THE ANNUITANT OR OWNER IS AGE 76 OR OLDER ON THE RIDER EFFECTIVE DATE. Upon annuitization, if the Variable Liquidity Benefit is selected, there is a maximum charge of 6% of the amounts withdrawn. Please refer to "Payment Options" for a description of this benefit. 6 If you elect a Guaranteed Minimum Withdrawal Benefit ("GMWB") rider, a charge will be deducted each business day from amounts in the Variable Funding Options. There are three GMWB rider options, and the current charge for each rider, on an annual basis, is as follows: GMWB I: 0.40%; GMWB II: 0.50%; and GMWB III: 0.25%. Your current charge will not change unless you are able to reset your benefits, at which time we may modify the charge, which will never exceed 1.00%. If you select the Guaranteed Minimum Accumulation Benefit ("GMAB"), we will deduct each business day a charge of 0.50% (on an annual basis) from amounts allocated to the Variable Funding Options. HOW WILL MY PURCHASE PAYMENTS AND WITHDRAWALS BE TAXED? Generally, the payments you make to a Qualified Contract during the accumulation phase are made with before-tax dollars. Generally, you will be taxed on your Purchase Payments and on any earnings when you make a withdrawal or begin receiving Annuity Payments. Under a Non-qualified Contract, payments to the Contract are made with after-tax dollars, and earnings will generally accumulate tax-deferred. You will be taxed on these earnings when they are withdrawn from the Contract. If you are younger than 59 1/2 when you take money out, you may be charged a 10% federal penalty tax on the amount withdrawn. For owners of Qualified Contracts, if you reach a certain age, you may be required by federal tax laws to begin receiving payments from your annuity or risk paying a penalty tax. In those cases, we can calculate and pay you the minimum required distribution amounts (see "Access to Your Money -- Systematic Withdrawals"). HOW MAY I ACCESS MY MONEY? You can take withdrawals any time during the accumulation phase. Withdrawal charges may apply, as well as income taxes, and/or a penalty tax on amounts withdrawn. WHAT IS THE DEATH BENEFIT UNDER THE CONTRACT? You may choose to purchase the Standard, Step-Up or Roll-Up Death Benefit. The death benefit applies upon the first death of the Contract Owner, joint owner, or Annuitant. Assuming you are the Annuitant, the death benefit is as follows: If you die before the Contract is in the payout phase, the person you have chosen as your beneficiary will receive a death benefit. You may also choose to purchase the Enhanced Stepped-Up Provision, which, for a fee, may increase the amount of the death benefit. We calculate the death benefit value at the close of the business day on which our Home Office receives (1) Due Proof of Death and (2) written payment instructions or the election of spousal contract continuance or beneficiary contract continuance. Please refer to the Death Benefit section in the prospectus for more details. WHERE MAY I FIND OUT MORE ABOUT ACCUMULATION UNIT VALUES? The Condensed Financial Information in Appendix A or Appendix B to this prospectus provides more information about Accumulation Unit values. ARE THERE ANY ADDITIONAL FEATURES? This Contract has other features you may be interested in. These include: - DOLLAR COST AVERAGING. This is a program that allows you to invest a fixed amount of money in Variable Funding Options each month, theoretically giving you a lower average cost per unit over time than a single one-time purchase. Dollar Cost Averaging requires regular investments regardless of fluctuating price levels, and does not guarantee profits or prevent losses in a declining market. Potential investors should consider their financial ability to continue purchases through periods of low price levels. - SYSTEMATIC WITHDRAWAL OPTION. Before the Maturity Date, you can arrange to have money sent to you at set intervals throughout the year. Of course, any applicable income and penalty taxes will apply on amounts withdrawn. Withdrawals in excess of the annual free withdrawal allowance may be subject to a withdrawal charge. - MANAGED DISTRIBUTION PROGRAM. This program allows us to automatically calculate and distribute to you, in November of the applicable tax year, an amount that will satisfy the Internal Revenue Service's minimum distribution requirements imposed on certain contracts once the owner reaches age 70 1/2 or retires. These minimum distributions occur during the accumulation phase. - AUTOMATIC REBALANCING. You may elect to have the Company periodically reallocate the values in your Contract to match the rebalancing allocation selected. - ENHANCED STEPPED-UP PROVISION ("E.S.P."). For an additional charge, the total death benefit payable may be increased based on the earnings in your Contract. 7 - SPOUSAL CONTRACT CONTINUANCE (SUBJECT TO AVAILABILITY). If your spouse is named as an owner and/or beneficiary, and you die prior to the Maturity Date, your spouse may elect to continue the Contract as owner rather than have the death benefit paid to the beneficiary. This feature applies to a spousal joint Contract Owner and/or beneficiary only. - BENEFICIARY CONTRACT CONTINUANCE (NOT PERMITTED FOR NON-NATURAL BENEFICIARIES). If you die before the Maturity Date, and if the value of any beneficiary's portion of the death benefit is between $20,000 and $1,000,000 as of the date of your death, that beneficiary may elect to continue his/her portion of the Contract and take required distributions over time, rather than have the death benefit paid to the beneficiary in a lump sum. - GUARANTEED MINIMUM WITHDRAWAL BENEFIT ("GMWB" OR "PRINCIPAL GUARANTEE"). For an additional charge, we will guarantee the periodic return of your investment. Under this benefit, we will pay you a percentage of your investment every year until your investment has been returned in full, regardless of market performance. Depending on when you elect to begin receiving payments and which GMWB rider you select, the maximum amount of your investment that you receive each year is 5% or 10%. When you add Purchase Payments to your Contract, we include them as part of the guarantee. In the future, however, we may discontinue including additional Purchase Payments as part of the guarantee. The guarantee is subject to restrictions on withdrawals and other restrictions. - GUARANTEED MINIMUM ACCUMULATION BENEFIT ("GMAB"). For an additional charge, we will guarantee that your Contract Value will not be less than a minimum amount at the end of a specified number of years. The guaranteed amount is based on your Purchase Payments, including additional Purchase Payments you make within 12 months of electing the rider. Additional Purchase Payments made more than 12 months after you elect the rider will not increase the guaranteed amount. If your Contract Value is less than the minimum guaranteed amount on the Rider Maturity Date, we will apply additional amounts to increase your Contract Value so that it is equal to the guaranteed amount. 8 FEE TABLE - -------------------------------------------------------------------------------- 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, surrender the Contract, or transfer Contract Value between Variable Funding Options. Expenses shown do not include premium taxes, which may be applicable. CONTRACT OWNER TRANSACTION EXPENSES WITHDRAWAL CHARGE....................................... 6%(1) (as a percentage of the Purchase Payments withdrawn)
TRANSFER CHARGE......................................... $10(2) (assessed on transfers that exceed 12 per year)
VARIABLE LIQUIDITY BENEFIT CHARGE....................... 6%(3) (as a percentage of the present value of the remaining Annuity Payments that are surrendered. The interest rate used to calculate this present value is 1% higher than the Assumed (Daily) Net Investment Factor used to calculate the Annuity Payments.)
The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Underlying Fund fees and expenses. CONTRACT ADMINISTRATIVE CHARGES ANNUAL CONTRACT ADMINISTRATIVE CHARGE................... $30(4)
- --------- (1) The withdrawal charge declines to zero after the Purchase Payment has been in the Contract for seven years. The charge is as follows:
YEARS SINCE PURCHASE PAYMENT MADE - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 + years 0%
(2) We do not currently assess the transfer charge. (3) This withdrawal charge only applies when you surrender the Contract after beginning to receive Annuity Payments. The Variable Liquidity Benefit Charge declines to zero after seven years. The charge is as follows:
YEARS SINCE INITIAL PURCHASE PAYMENT - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 + years 0%
(4) We do not assess this charge if Contract Value is $40,000 or more on the fourth Friday of each August. 9 ANNUAL SEPARATE ACCOUNT CHARGES (as a percentage of the average daily net assets of the Separate Account) We will assess a minimum mortality and expense risk charge ("M&E") of 1.30% and an administrative expense charge of 0.15% on all Contracts. In addition, for optional features, there is a charge of 0.20% for E.S.P., a 0.50% charge for GMAB, a 0.40% current charge (maximum of 1.00% upon reset) for GMWB I, a 0.50% current charge (maximum of 1.00% upon reset) for GMWB II, and a 0.25% charge for GMWB III. Below is a summary of all charges that may apply, depending on the death benefit and optional features you select:
STANDARD DEATH STEP-UP DEATH ROLL-UP DEATH BENEFIT BENEFIT BENEFIT -------------- ------------- ------------- Mortality and Expense Risk Charge*.................... 1.30% 1.40% 1.60% Administrative Expense Charge......................... 0.15% 0.15% 0.15% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH NO OPTIONAL FEATURES SELECTED................................... 1.45% 1.55% 1.75% Optional E.S.P. Charge................................ 0.20% 0.20% 0.20% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. ONLY SELECTED............................................ 1.65% 1.75% 1.95% Optional GMAB Charge.................................. 0.50% 0.50% 0.50% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMAB ONLY SELECTED............................................ 1.95% 2.05% 2.25% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMAB SELECTED((5)).................................. 2.15% 2.25% 2.45% Optional GMWB I Charge................................ 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB II Charge............................... 1.00%(6) 1.00%(6) 1.00%(6) Optional GMWB III Charge.............................. 0.25% 0.25% 0.25% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB I ONLY SELECTED............................................ 2.45% 2.55% 2.75% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB II ONLY SELECTED....................................... 2.45% 2.55% 2.75% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB III ONLY SELECTED....................................... 1.70% 1.80% 2.00% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB I SELECTED..................................... 2.65% 2.75% 2.95% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB II SELECTED.................................... 2.65% 2.75% 2.95% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB III SELECTED................................... 1.90% 2.00% 2.20%
- --------- (5) GMAB and GMWB cannot both be elected. (6) The current charges for the available GMWB riders with a reset feature (see "Living Benefits") are 0.40% for GMWB I and 0.50% for GMWB II. * We will waive the following amounts of the Mortality and Expense Risk Charge: an amount equal to the underlying fund expenses that are in excess of 0.90% for the Subaccount investing in Harris Oakmark International Portfolio; an amount equal to the underlying fund expenses that are in excess of 0.11% for the Subaccount investing in the BlackRock High Yield Portfolio; an amount equal to the Underlying Fund expenses that are in excess of 0.87% for the Subaccount investing in Lord Abbett Growth and Income Portfolio -- Class B; an amount equal to the underlying fund expenses that are in excess of 0.65% for the Subaccount investing in the PIMCO Inflation Protected Bond Portfolio -- Class A; an amount equal to the underlying fund expenses that are in excess of 1.12% for the Subaccount investing in the Lord Abbett Mid Cap Value Portfolio -- Class B; an amount equal to the underlying fund expenses that are in excess of 1.10% for the Subaccount investing in the Third Avenue Small Cap Value Portfolio -Class B; an amount, if any, equal to the underlying fund expenses that are in excess of 0.84% for the Subaccount investing in the T. Rowe Price Small Cap Growth Portfolio -- Class B; an amount, if any, equal to the underlying fund expenses that are in excess of 1.13% for the Subaccount investing in the MFS(R) Research International Portfolio -- Class B; an amount, if any, equal to the underlying fund expenses that are in excess of 0.90% for the Subaccount investing in the Oppenheimer Global Equity Portfolio -- Class B; and an amount, if any, equal to the underlying fund expenses that are in excess of 0.68% for the Subaccount investing in the Western Asset Management U.S. Government Portfolio -- Class A. 10 UNDERLYING FUND EXPENSES AS OF DECEMBER 31, 2007 (UNLESS OTHERWISE INDICATED): The first table below shows the range (minimum and maximum) of the total annual operating expenses charged by all of the Underlying Funds, before any voluntary or contractual fee waivers and/or expense reimbursements. The second table shows each Underlying Fund's management fee, distribution and/or service (12b-1) fees if applicable, and other expenses. The Underlying Funds provided this information and we have not independently verified it. More detail concerning each Underlying Fund's fees and expenses is contained in the prospectus for each Underlying Fund. Current prospectuses for the Underlying Funds can be obtained by calling 800-842-9368. MINIMUM AND MAXIMUM TOTAL ANNUAL UNDERLYING FUND OPERATING EXPENSES
MINIMUM MAXIMUM ------- ------- TOTAL ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Underlying Fund assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) 0.40% 1.52%
UNDERLYING FUND FEES AND EXPENSES (as a percentage of average daily net assets)
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 American Funds Global Growth Fund........................ 0.53% 0.25% 0.02% -- 0.80% -- 0.80% American Funds Growth Fund..... 0.32% 0.25% 0.01% -- 0.58% -- 0.58% American Funds Growth-Income Fund........................ 0.26% 0.25% 0.01% -- 0.52% -- 0.52% FIDELITY(R) VARIABLE INSURANCE PRODUCTS -- SERVICE CLASS 2 Contrafund(R) Portfolio........ 0.56% 0.25% 0.09% -- 0.90% -- 0.90% Dynamic Capital Appreciation Portfolio+.................. 0.56% 0.25% 0.23% -- 1.04% -- 1.04% Mid Cap Portfolio.............. 0.56% 0.25% 0.10% -- 0.91% -- 0.91% FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Templeton Foreign Securities Fund........................ 0.63% 0.25% 0.14% 0.02% 1.04% 0.02% 1.02%(1) JANUS ASPEN SERIES -- SERVICE SHARES Global Life Sciences Portfolio+.................. 0.64% 0.25% 0.45% -- 1.34% -- 1.34% Global Technology Portfolio.... 0.64% 0.25% 0.18% 0.01% 1.08% -- 1.08% LEGG MASON PARTNERS VARIABLE EQUITY TRUST Legg Mason Partners Variable Aggressive Growth Portfolio -- Class I++...... 0.75% -- 0.07% -- 0.82% -- 0.82%(2) Legg Mason Partners Variable Appreciation Portfolio -- Class I........ 0.69% -- 0.11% 0.01% 0.81% -- 0.81%(2) Legg Mason Partners Variable Equity Index Portfolio -- Class II....... 0.31% 0.25% 0.08% -- 0.64% -- 0.64%(2) Legg Mason Partners Variable Fundamental Value Portfolio -- Class I........ 0.75% -- 0.08% -- 0.83% -- 0.83%(2) Legg Mason Partners Variable Investors Portfolio -- Class I........................... 0.62% -- 0.14% -- 0.76% -- 0.76%(2) Legg Mason Partners Variable Large Cap Growth Portfolio -- Class I++...... 0.75% -- 0.15% -- 0.90% -- 0.90%(3) Legg Mason Partners Variable Small Cap Growth Portfolio -- Class I........ 0.75% -- 0.35% -- 1.10% -- 1.10%(2) Legg Mason Partners Variable Social Awareness Portfolio++................. 0.67% -- 0.38% -- 1.05% -- 1.05%(2) LEGG MASON PARTNERS VARIABLE INCOME TRUST Legg Mason Partners Variable Adjustable Rate Income Portfolio++................. 0.55% 0.25% 0.60% -- 1.40% -- 1.40%(2)
11
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- MET INVESTORS SERIES TRUST BlackRock High Yield Portfolio -- Class A........ 0.60% -- 0.13% -- 0.73% -- 0.73% BlackRock Large Cap Core Portfolio -- Class E........ 0.58% 0.15% 0.06% -- 0.79% -- 0.79% Clarion Global Real Estate Portfolio -- Class A........ 0.61% -- 0.04% -- 0.65% -- 0.65% Dreman Small Cap Value Portfolio -- Class A........ 0.79% -- 0.13% -- 0.92% -- 0.92%(4) Harris Oakmark International Portfolio -- Class A........ 0.77% -- 0.09% -- 0.86% -- 0.86% Janus Forty Portfolio -- Class A........................... 0.65% -- 0.05% -- 0.70% -- 0.70% Lazard Mid Cap Portfolio -- Class A++...... 0.69% -- 0.07% -- 0.76% -- 0.76% Lazard Mid Cap Portfolio -- Class B........ 0.69% 0.25% 0.06% -- 1.00% -- 1.00% Legg Mason Partners Managed Assets Portfolio -- Class A........................... 0.50% -- 0.12% -- 0.62% -- 0.62% Lord Abbett Bond Debenture Portfolio -- Class A........ 0.49% -- 0.05% -- 0.54% -- 0.54% Lord Abbett Growth and Income Portfolio -- Class B........ 0.49% 0.25% 0.03% -- 0.77% -- 0.77% Lord Abbett Mid Cap Value Portfolio -- Class B........ 0.67% 0.25% 0.09% -- 1.01% -- 1.01% Met/AIM Capital Appreciation Portfolio -- Class A........ 0.76% -- 0.10% -- 0.86% -- 0.86% Met/AIM Small Cap Growth Portfolio -- Class A........ 0.86% -- 0.06% -- 0.92% -- 0.92% MFS(R) Emerging Markets Equity Portfolio -- Class B........ 1.00% 0.25% 0.27% -- 1.52% -- 1.52% MFS(R) Research International Portfolio -- Class B+....... 0.70% 0.25% 0.09% -- 1.04% -- 1.04% PIMCO Inflation Protected Bond Portfolio -- Class A........ 0.50% -- 0.05% -- 0.55% -- 0.55% Pioneer Fund Portfolio -- Class A........................... 0.75% -- 0.23% -- 0.98% -- 0.98%(5) Pioneer Strategic Income Portfolio -- Class A........ 0.60% -- 0.09% -- 0.69% -- 0.69%(4) Third Avenue Small Cap Value Portfolio -- Class B........ 0.73% 0.25% 0.03% -- 1.01% -- 1.01% METROPOLITAN SERIES FUND, INC. BlackRock Aggressive Growth Portfolio -- Class D........ 0.71% 0.10% 0.05% -- 0.86% -- 0.86% BlackRock Bond Income Portfolio -- Class A........ 0.38% -- 0.06% -- 0.44% 0.01% 0.43%(6) BlackRock Money Market Portfolio -- Class A........ 0.33% -- 0.07% -- 0.40% 0.01% 0.39%(7) Davis Venture Value Portfolio -- Class A........ 0.69% -- 0.04% -- 0.73% -- 0.73% FI Large Cap Portfolio -- Class A........................... 0.77% -- 0.07% -- 0.84% -- 0.84% FI Value Leaders Portfolio -- Class D........ 0.64% 0.10% 0.07% -- 0.81% -- 0.81% MetLife Aggressive Allocation Portfolio -- Class B........ 0.10% 0.25% 0.04% 0.73% 1.12% 0.04% 1.08%(8) MetLife Conservative Allocation Portfolio -- Class B........ 0.10% 0.25% 0.05% 0.59% 0.99% 0.05% 0.94%(8) MetLife Conservative to Moderate Allocation Portfolio -- Class B........ 0.10% 0.25% 0.01% 0.64% 1.00% 0.01% 0.99%(8) MetLife Moderate Allocation Portfolio -- Class B........ 0.08% 0.25% 0.01% 0.67% 1.01% -- 1.01%(8) MetLife Moderate to Aggressive Allocation Portfolio -- Class B........ 0.08% 0.25% 0.01% 0.70% 1.04% -- 1.04%(8)
12
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- MFS(R) Total Return Portfolio -- Class F........ 0.53% 0.20% 0.05% -- 0.78% -- 0.78% MFS(R) Value Portfolio -- Class A........................... 0.72% -- 0.05% -- 0.77% 0.07% 0.70%(9) Oppenheimer Global Equity Portfolio -- Class B........ 0.51% 0.25% 0.10% -- 0.86% -- 0.86% T. Rowe Price Large Cap Growth Portfolio -- Class B+....... 0.60% 0.25% 0.07% -- 0.92% -- 0.92% T. Rowe Price Small Cap Growth Portfolio -- Class B........ 0.51% 0.25% 0.08% -- 0.84% -- 0.84% Western Asset Management U.S. Government Portfolio -- Class A........ 0.49% -- 0.05% -- 0.54% -- 0.54% PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS Total Return Portfolio......... 0.25% -- 0.58% -- 0.83% -- 0.83% VAN KAMPEN LIFE INVESTMENT TRUST -- CLASS II Comstock Portfolio............. 0.56% 0.25% 0.03% -- 0.84% -- 0.84% Enterprise Portfolio+.......... 0.50% 0.25% 0.17% -- 0.92% -- 0.92%
- --------- * Acquired Fund Fees and Expenses are fees and expenses incurred indirectly by a portfolio as a result of investing in shares of one or more underlying portfolios. ** Net Total Annual Operating Expenses do not reflect: (1) voluntary waivers of fees or expenses; (2) contractual waivers that are in effect for less than one year from the date of this Prospectus; or (3) expense reductions resulting from custodial fee credits or directed brokerage arrangements. + Not available under all Contracts. Availability depends on Contract issue date. ++ Closed to new investments except under dollar cost averaging and rebalancing programs in existence at the time of closing. ++ Fees and expenses of this Portfolio are based on the Portfolio's fiscal year ended October 31, 2007. (1) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the Sweep Money Fund which is the "acquired fund" in this case) 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. (2) Other Expenses have been revised to reflect the estimated effect of additional prospectus and shareholder report printing and mailing expenses expected to be incurred by the fund going forward. (3) Other Expenses have been revised to reflect the estimated effect of additional prospectus and shareholder report printing and mailing expenses expected to be incurred by the fund going forward. Due to contractual waivers and/or reimbursements in place through March 1, 2009, the Portfolio's actual total net operating expenses, excluding brokerage, taxes, interest and extraordinary expenses, are not expected to exceed 0.78% prior to that date. (4) The Management Fee has been restated to reflect an amended management fee agreement, as if the agreement had been in effect during the preceding fiscal year. (5) Other Expenses have been Restated to reflect change in Transfer Agent fee schedule as if fees had been in effect during the previous fiscal year. (6) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to the annual rate of 0.325% for the amounts over $1 billion but less than $2 billion. (7) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to the annual rate of 0.345% for the first $500 million of the Portfolio's average daily net assets and 0.335% for the next $500 million. (8) The Portfolio is a "fund of funds" that invests substantially all of its assets in other portfolios of the Metropolitan Series Fund, Inc. and the Met Investors Series Trust. Because the Portfolio invests in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios in which it invests, including the management fee. MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to waive fees or pay all expenses (other than acquired fund fees and expenses, brokerage costs, taxes, interest and any extraordinary expenses) so as to limit the net operating expenses of the Portfolio (other than acquired fund fees and expenses, brokerage costs, taxes, interest and any extraordinary expenses) to 0.10% for the Class A shares, 0.35% for the Class B shares and 0.25% for the Class E shares. (9) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to the annual rate of 0.65% for the first $1.25 billion of the Portfolio's average daily net assets, 0.60% for the next $250 million and 0.50% for amounts over $1.5 billion. 13 EXAMPLE The example is 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 Contract Owner transaction expenses, Contract fees, separate account annual expenses, and Underlying Fund total annual operating expenses. The example does not represent past or future expenses. Your actual expenses may be more or less than those shown. The example assumes that you invest $10,000 in the Contract for the time periods indicated and that your investment has a 5% return each year. The example reflects the annual Contract administrative charge, factoring in that the charge is waived for contracts over a certain value. Additionally, the example is based on the minimum and maximum Underlying Fund total annual operating expenses shown above, and does not reflect any Underlying Fund fee waivers and/or expense reimbursements. The example assumes you have allocated all of your Contract Value to either the Underlying Fund with the maximum total annual operating expenses or the Underlying Fund with the minimum total annual operating expenses. Your actual expenses will be less than those shown if you do not elect all of the optional benefits. The GMAB and a GMWB rider cannot both be elected. EXAMPLE -- This example assumes that you have elected the most expensive death benefit option, the E.S.P. optional death benefit and the Guaranteed Minimum Withdrawal Benefit (assuming the maximum 1.00% charge applies in all Contract Years).
IF CONTRACT IS SURRENDERED AT THE IF CONTRACT IS NOT SURRENDERED OR END OF PERIOD SHOWN: ANNUITIZED AT THE END OF PERIOD SHOWN: ---------------------------------------------- ---------------------------------------------- FUNDING OPTION 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS - -------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Underlying Fund with Maximum Total Annual Operating Expenses......... $1,052 $1,861 $2,676 $4,588 $452 $1,361 $2,276 $4,588 Underlying Fund with Minimum Total Annual Operating Expenses......... $941 $1,534 $2,143 $3,587 $341 $1,034 $1,743 $3,587
CONDENSED FINANCIAL INFORMATION - -------------------------------------------------------------------------------- See Appendices A and B. THE ANNUITY CONTRACT - -------------------------------------------------------------------------------- Portfolio Architect II Annuity is a contract between the Contract Owner ("you") and the Company. This is the prospectus -- it is not the Contract. The prospectus highlights many Contract provisions to focus your attention on the Contract's essential features. Your rights and obligations under the Contract will be determined by the language of the Contract itself. When you receive your Contract, we suggest you read it promptly and carefully. There may be differences in your Contract from the descriptions in this prospectus because of the requirements of the state where we issued your Contract. We will include any such differences in your Contract. The Company offers several different annuities that your investment professional may be authorized to offer to you. Each annuity offers different features and benefits that may be appropriate for you. In particular, the annuities differ based on variations in the standard and optional death benefit protection provided for your beneficiaries, the availability of optional living benefits, the ability to access your Contract Value if necessary and the charges that you will be subject to if you make a withdrawal or surrender the annuity. The separate account charges and other charges may be different between each annuity we offer. Optional death benefits and living benefits are subject to a separate charge for the additional protections they offer to you and your beneficiaries. Furthermore, annuities that offer greater flexibility to access your Contract Value generally are subject to higher separate account charges than annuities that deduct charges if you make a withdrawal or surrender. We encourage you to evaluate the fees, expenses, benefits and features of this annuity against those of other investment products, including other annuity products offered by us and other insurance companies. Before purchasing this or any other investment product you should consider whether the product you purchase is consistent 14 with your risk tolerance, investment objectives, investment time horizon, financial and tax situation, liquidity needs and how you intend to use the annuity. You make Purchase Payments to us and we credit them to your Contract. We promise to pay you an income, in the form of Annuity Payments, beginning on a future date that you choose, the Maturity Date. The Purchase Payments accumulate tax deferred in the funding options of your choice. We offer multiple Variable Funding Options. We may also offer a Fixed Account option. Where permitted by state law, we also reserve the right to restrict allocation of Purchase Payments to the Fixed Account if the credited interest rate is equal to the minimum guaranteed interest rate specified under the Contract. The Contract Owner assumes the risk of gain or loss according to the performance of the Variable Funding Options. The Contract Value is the amount of Purchase Payments, plus or minus any investment experience on the amounts you allocate to the Separate Account ("Separate Account Contract Value") or interest on the amounts you allocate to the Fixed Account ("Fixed Account Contract Value"). The Contract Value also reflects all withdrawals made and charges deducted. There is generally no guarantee that at the Maturity Date the Contract Value will equal or exceed the total Purchase Payments made under the Contract. The date the Contract and its benefits become effective is referred to as the Contract Date. Each 12-month period following the Contract Date is called a Contract Year. Certain changes and elections must be made in writing to the Company. Where the term "Written Request" is used, it means that you must send written information to our Home Office in a form and content satisfactory to us. The ages of the owner and Annuitant determine which death benefits and certain optional features are available to you.
MAXIMUM AGE BASED ON THE OLDER OF THE OWNER AND DEATH BENEFIT/OPTIONAL FEATURE ANNUITANT ON THE CONTRACT DATE - ------------------------------------------------------ ----------------------------------------------- Deferred Annual Step Up Death Benefit (Standard Death Benefit) 75 Step Up Death Benefit 85 5% Roll Up Death Benefit 75 Enhanced Stepped-Up Provision (E.S.P.) 75
Since optional death benefits carry higher charges, you should consider the ages of the owner and Annuitant when electing these benefits, as the additional value provided by the benefit may be significantly reduced or eliminated depending on the ages of the owner and Annuitant at the time of election. Purchase of this Contract through a tax qualified retirement plan or IRA does not provide any additional tax deferral benefits beyond those provided by the plan or the IRA. Accordingly, if you are purchasing this Contract through a plan or IRA, you should consider purchasing this Contract for its death benefit, annuity option benefits, and other non-tax-related benefits. You should consult with your tax adviser to determine if this Contract is appropriate for you. CONTRACT OWNER INQUIRIES Any questions you have about your Contract should be directed to our Home Office at 800-842-9368. PURCHASE PAYMENTS Your initial Purchase Payment is due and payable before the Contract becomes effective. The initial Purchase Payment must be at least $5,000. You may make additional payments of at least $500 at any time. No additional Purchase Payments are allowed if this Contract is purchased with a beneficiary-directed transfer of death benefit proceeds. Under certain circumstances, we may waive the minimum Purchase Payment requirement. Initial Purchase Payments plus the total of any subsequent Purchase Payments may total more than $1,000,000 only with our prior consent. Where permitted by state law, we may restrict Purchase Payments into the Fixed Account whenever the current credited interest rate for the Fixed Account is equal to the minimum guaranteed rate specified in your Contract. Purchase Payments may be made at any time while the Annuitant is alive and before the date Annuity Payments begin. We accept Purchase Payments made by check or cashier's check. We do not accept cash, money orders or traveler's checks. We reserve the right to refuse Purchase Payments made via a personal check in excess of $100,000. Purchase Payments over $100,000 may be accepted in other forms, including but not limited to, EFT/wire transfers, 15 certified checks, corporate checks, and checks written on financial institutions. The form in which we receive a Purchase Payment may determine how soon subsequent disbursement requests may be fulfilled. (See "Access To Your Money.") We will apply the initial Purchase Payment less any applicable premium tax within two business days after we receive it at our Home Office with a properly completed application or order request. If your request or other information accompanying the initial Purchase Payment is incomplete when received, we will hold the Purchase Payment for up to five business days. If we cannot obtain the necessary information within five business days, we will return the Purchase Payment in full, unless you specifically consent for us to keep it until you provide the necessary information. We will credit any subsequent Purchase Payment to a Contract on the same business day we receive it, if it is received in good order by our Home Office by 4:00 p.m. Eastern time. A business day is any day that the New York Stock Exchange is open for regular trading (except when trading is restricted due to an emergency as defined by the Securities and Exchange Commission). IF YOU SEND YOUR PURCHASE PAYMENTS OR TRANSACTION REQUESTS TO AN ADDRESS OTHER THAN THE ONE WE HAVE DESIGNATED FOR RECEIPT OF SUCH PURCHASE PAYMENTS OR REQUESTS, WE MAY RETURN THE PURCHASE PAYMENT TO YOU, OR THERE MAY BE A DELAY IN APPLYING THE PURCHASE PAYMENT OR TRANSACTION TO YOUR CONTRACT. QUALIFIED CONTRACTS UNDER SECTION 403(B). If your Contract was issued as a Qualified Contract under Section 403(b) of the Code (also called a "tax sheltered annuity" or "TSA") in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax advisor prior to making additional purchase payments. Such additional payments may have significant adverse tax consequences. (See "Federal Tax Consequences.") ACCUMULATION UNITS The period between the Contract Date and the Maturity Date is the accumulation period. During the accumulation period, an Accumulation Unit is used to calculate the value of a Contract. Each Variable Funding Option has a corresponding Accumulation Unit value. The Accumulation Units are valued each business day and their values may increase or decrease from day to day. The daily change in value of an Accumulation Unit each day is based on the investment performance of the corresponding Underlying Fund, and the deduction of separate account charges shown in the Fee Table in this prospectus. The number of Accumulation Units we will credit to your Contract once we receive a Purchase Payment or transfer request (or, liquidate for a withdrawal request) is determined by dividing the amount directed to each Variable Funding Option (or, taken from each Variable Funding Option) by the value of its Accumulation Unit. Normally, we calculate the value of an Accumulation Unit for each Variable Funding Option as of the close of regular trading (generally 4:00 p.m. Eastern time) each day the New York Stock Exchange is open. After the value is calculated, we credit your Contract. During the annuity period (i.e., after the Maturity Date), you are credited with Annuity Units. THE VARIABLE FUNDING OPTIONS You choose the Variable Funding Options to which you allocate your Purchase Payments. From time to time we may make new Variable Funding Options available. These Variable Funding Options are Subaccounts of the Separate Account. The Subaccounts invest in the Underlying Funds. You are not investing directly in the Underlying Fund. Each Underlying Fund is a portfolio of an open-end management investment company that is registered with the SEC under the Investment Company Act of 1940. These Underlying Funds are not publicly traded and are only offered through variable annuity contracts, variable life insurance policies, and in some instances, certain retirement plans. They are not the same as the retail mutual funds offered outside of a variable annuity or variable life insurance product, although the investment practices and fund names may be similar and the portfolio managers may be identical. Accordingly, the performance of the retail mutual fund is likely to be different from that of the Underlying Fund. We select the Underlying Funds offered through this Contract based on a number of criteria, including asset class coverage, the strength of the adviser's or subadviser's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we consider during the selection process is whether the Underlying Fund's adviser or subadviser is one of our affiliates or whether the Underlying Fund, its adviser, its subadviser(s), or an affiliate will make payments to us or our affiliates. In this regard, the profit 16 distributions we receive from our affiliated investment advisers are a component of the total revenue that we consider in configuring the features and investment choices available in the variable insurance products that we and our affiliated insurance companies issue. Since we and our affiliated insurance companies may benefit more from the allocation of assets to portfolios advised by our affiliates than those that are not, we may be more inclined to offer portfolios advised by our affiliates in the variable insurance products we issue. For additional information on these arrangements, see "Payments We Receive." We review the Underlying Funds periodically and may remove an Underlying Fund or limit its availability to new Purchase Payments and/or transfers of Contract Value if we determine that the Underlying Fund no longer meets one or more of the selection criteria, and/or if the Underlying Fund has not attracted significant allocations from Contract Owners. In some cases, we have included Underlying Funds based on recommendations made by broker-dealer firms. These broker-dealer firms may receive payments from the Underlying Funds they recommend and may benefit accordingly from the allocation of Contract Value to such Underlying Funds. When the Company develops a variable product in cooperation with a fund family or distributor (e.g. a "private label" product) the Company will generally include Underlying Funds based on recommendations made by the fund family or distributor, whose selection criteria may differ from the Company's selection criteria. WE DO NOT PROVIDE ANY INVESTMENT ADVICE AND DO NOT RECOMMEND OR ENDORSE ANY PARTICULAR UNDERLYING FUND. YOU BEAR THE RISK OF ANY DECLINE IN YOUR CONTRACT VALUE RESULTING FROM THE PERFORMANCE OF THE UNDERLYING FUNDS YOU HAVE CHOSEN. If investment in the Underlying Funds or a particular Underlying Fund is no longer possible, in our judgment becomes inappropriate for purposes of the Contract, or for any other reason in our sole discretion, we may substitute another Underlying Fund or Underlying Funds without your consent. The substituted Underlying Fund may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Purchase Payments, or both. However, we will not make such substitution without any necessary approval of the Securities and Exchange Commission and applicable state insurance departments. Furthermore, we may close Underlying Funds to allocations of Purchase Payments or Contract Value, or both, at any time in our sole discretion. In certain circumstances, the Company's ability to remove or replace an Underlying Fund may be limited by the terms of a five-year agreement between MetLife, Inc. (MetLife) and Legg Mason, Inc. (Legg Mason) relating to the use of certain Underlying Funds advised by Legg Mason affiliates. The agreement sets forth the conditions under which the Company can remove an Underlying Fund, which, in some cases, may differ from the Company's own selection criteria. In addition, during the term of the agreement, subject to the Company's fiduciary and other legal duties, the Company is generally obligated in the first instance to consider Underlying Funds advised by Legg Mason affiliates in seeking to make a substitution for an Underlying Fund advised by a Legg Mason affiliate. The agreement was originally entered into on July 1, 2005 by MetLife and certain affiliates of Citigroup Inc. (Citigroup) as part of MetLife's acquisition of The Travelers Insurance Company and The Travelers Life and Annuity Company (both of which are now MetLife Insurance Company of Connecticut) from Citigroup. Legg Mason replaced the Citigroup affiliates as a party to the agreement when Citigroup sold its asset management business to Legg Mason. The agreement also obligates Legg Mason to continue making payments to the Company with respect to Underlying Funds advised by Legg Mason affiliates, on the same terms provided for in administrative services agreements between Citigroup's asset management affiliates and the Travelers insurance companies that predate the acquisition. PAYMENTS WE RECEIVE. As described above, an investment adviser (other than our affiliates MetLife Advisers, LLC, and Met Investors Advisory LLC) or subadviser of an Underlying Fund, or its affiliates, may make payments to the Company and/or certain of its affiliates. These payments may be used for a variety of purposes, including payment of expenses for certain administrative, marketing and support services with respect to the Contracts, and, in the Company's role as an intermediary, with respect to the Underlying Funds. The Company and its affiliates may profit from these payments. These payments may be derived, in whole or in part, from the advisory fee deducted from Underlying Fund assets. Contract Owners, through their indirect investment in the Underlying Funds, bear the costs of these advisory fees (see the Underlying Funds' prospectuses for more information). The amount of the payments we receive is based on a percentage of assets of the Underlying Funds attributable to the Contracts and certain other variable insurance products that the Company and its affiliates issue. These percentages differ and some advisers or subadvisers (or other affiliates) may pay the Company more than others. These percentages currently range up to 0.50%. Additionally, an investment adviser or subadviser of an Underlying Fund or its affiliates may provide the Company with wholesaling services that assist in the distribution of the Contracts and may pay the Company and/or certain of 17 its affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the adviser or subadviser (or their affiliate) with increased access to persons involved in the distribution of the Contracts. The Company and/or certain of its affiliated insurance companies have joint ownership interests in its affiliated investment advisers MetLife Advisers, LLC and Met Investors Advisory LLC, which are formed as "limited liability companies." The Company's ownership interests in MetLife Advisers, LLC and Met Investors Advisory LLC entitle us to profit distributions if the adviser makes a profit with respect to the advisory fees it receives from the Underlying Fund. The Company will benefit accordingly from assets allocated to the Underlying Funds to the extent they result in profits to the advisers. (See "Fee Table -- Underlying Fund Fees and Expenses" for information on the management fees paid by the Underlying Funds and the Statement of Additional Information for the Underlying Funds for information on the management fees paid by the advisers to the subadvisers.) Certain Underlying Funds have adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act of 1940. An Underlying Fund's 12b-1 Plan, if any, is described in more detail in the Underlying Fund's prospectus. (See "Fee Table -- Underlying Fund Fees and Expenses" and "Other Information -- Distribution of Variable Annuity Contracts.") Any payments we receive pursuant to those 12b-1 Plans are paid to us or our distributor, MetLife Investors Distribution Company. Payments under an Underlying Fund's 12b-1 Plan decrease the Underlying Fund's investment return. We make certain payments to American Funds Distributors, Inc., principal underwriter for the American Funds Insurance Series. (See "Distribution of Variable Annuity Contracts.") Each Underlying Fund has different investment objectives and risks. The Underlying Fund prospectuses contain more detailed information on each Underlying Fund's investment strategy, investment advisers and its fees. You may obtain an Underlying Fund prospectus by calling 800-842-9368 or through your registered representative. We do not guarantee the investment results of the Underlying Funds. The current Underlying Funds are listed below, along with their investment advisers and any subadviser:
FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 American Funds Global Growth Fund Seeks capital appreciation Capital Research and Management through stocks. Company American Funds Growth Fund Seeks capital appreciation Capital Research and Management through stocks. Company American Funds Growth-Income Fund Seeks both capital appreciation Capital Research and Management and income. Company FIDELITY(R) VARIABLE INSURANCE PRODUCTS -- SERVICE CLASS 2 Contrafund(R) Portfolio Seeks capital appreciation. Fidelity Management & Research Company Dynamic Capital Appreciation Seeks capital appreciation. Fidelity Management & Research Portfolio+ Company Mid Cap Portfolio Seeks long-term growth of Fidelity Management & Research capital. Company FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Templeton Foreign Securities Fund Seeks long-term capital growth. Templeton Investment Counsel, LLC Subadviser: Franklin Templeton Investment Management Limited JANUS ASPEN SERIES -- SERVICE SHARES Global Life Sciences Portfolio+ Seeks long-term growth of Janus Capital Management LLC capital. Global Technology Portfolio Seeks long-term capital growth. Janus Capital Management LLC
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- LEGG MASON PARTNERS VARIABLE EQUITY TRUST Legg Mason Partners Variable Seeks capital appreciation. Legg Mason Partners Fund Advisor, Aggressive Growth LLC Portfolio -- Class I Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks long-term appreciation of Legg Mason Partners Fund Advisor, Appreciation Portfolio -- Class capital. LLC I Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks investment results that, Legg Mason Partners Fund Advisor, Equity Index Portfolio -- Class before expenses, correspond to LLC II the price and yield performance Subadviser: Batterymarch of the S&P 500(R) Index. Financial Management, Inc. Legg Mason Partners Variable Seeks long-term capital growth. Legg Mason Partners Fund Advisor, Fundamental Value Current income is a secondary LLC Portfolio -- Class I consideration. Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks long-term growth of Legg Mason Partners Fund Advisor, Investors Portfolio -- Class I capital. Current income is a LLC secondary objective. Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks long-term growth of Legg Mason Partners Fund Advisor, Large Cap Growth capital. LLC Portfolio -- Class I Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks long-term growth of Legg Mason Partners Fund Advisor, Small Cap Growth capital. LLC Portfolio -- Class I Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks capital appreciation and Legg Mason Partners Fund Advisor, Social Awareness Portfolio retention of net investment LLC income. Subadviser: Legg Mason Investment Counsel, LLC LEGG MASON PARTNERS VARIABLE INCOME TRUST Legg Mason Partners Variable Seeks to provide high current Legg Mason Partners Fund Advisor, Adjustable Rate Income income and to limit the degree of LLC Portfolio fluctuation of its net asset Subadviser: Western Asset value resulting from movements in Management Company interest rates. MET INVESTORS SERIES TRUST BlackRock High Yield Seeks to maximize total return, Met Investors Advisory, LLC Portfolio -- Class A consistent with income generation Subadviser: BlackRock Financial and prudent investment Management, Inc. management. BlackRock Large Cap Core Seeks long-term capital growth. Met Investors Advisory, LLC Portfolio -- Class E Subadviser: BlackRock Advisors, LLC Clarion Global Real Estate Seeks to provide total return Met Investors Advisory, LLC Portfolio -- Class A through investment in real estate Subadviser: ING Clarion Real securities, emphasizing both Estate Securities, L.P. capital appreciation and current income.
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- Dreman Small Cap Value Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class A Subadviser: Dreman Value Management, L.L.C. Harris Oakmark International Seeks long-term capital Met Investors Advisory, LLC Portfolio -- Class A appreciation. Subadviser: Harris Associates L.P. Janus Forty Portfolio -- Class A Seeks capital appreciation. Met Investors Advisory, LLC Subadviser: Janus Capital Management LLC Lazard Mid Cap Portfolio -- Class Seeks long-term growth of Met Investors Advisory, LLC A++ capital. Subadviser: Lazard Asset Management LLC Lazard Mid Cap Portfolio -- Class Seeks long-term growth of Met Investors Advisory, LLC B capital. Subadviser: Lazard Asset Management LLC Legg Mason Partners Managed Seeks high total return. Met Investors Advisory, LLC Assets Portfolio -- Class A Subadvisers: Batterymarch Financial Management, Inc.; Western Asset Management Company; ClearBridge Advisors, LLC; Legg Mason Global Asset Allocation, LLC Lord Abbett Bond Debenture Seeks high current income and the Met Investors Advisory, LLC Portfolio -- Class A opportunity for capital Subadviser: Lord, Abbett & Co. appreciation to produce a high LLC total return. Lord Abbett Growth and Income Seeks long-term growth of capital Met Investors Advisory, LLC Portfolio -- Class B and income without excessive Subadviser: Lord, Abbett & Co. fluctuation in market value. LLC Lord Abbett Mid Cap Value Seeks capital appreciation Met Investors Advisory, LLC Portfolio -- Class B through investments primarily in Subadviser: Lord, Abbett & Co. equity securities which are LLC believed to be undervalued in the marketplace. Met/AIM Capital Appreciation Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class A Subadviser: Invesco Aim Capital Management, Inc. Met/AIM Small Cap Growth Seeks long-term growth of Met Investors Advisory, LLC Portfolio -- Class A capital. Subadviser: Invesco Aim Capital Management, Inc. MFS(R) Emerging Markets Equity Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class B Subadviser: Massachusetts Financial Services Company MFS(R) Research International Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class B+ Subadviser: Massachusetts Financial Services Company PIMCO Inflation Protected Bond Seeks to provide maximum real Met Investors Advisory, LLC Portfolio -- Class A return, consistent with Subadviser: Pacific Investment preservation of capital and Management Company LLC prudent investment management. Pioneer Fund Portfolio -- Class A Seeks reasonable income and Met Investors Advisory, LLC capital growth. Subadviser: Pioneer Investment Management, Inc.
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- Pioneer Strategic Income Seeks a high level of current Met Investors Advisory, LLC Portfolio -- Class A income. Subadviser: Pioneer Investment Management, Inc. Third Avenue Small Cap Value Seeks long-term capital Met Investors Advisory, LLC Portfolio -- Class B appreciation. Subadviser: Third Avenue Management LLC METROPOLITAN SERIES FUND, INC. BlackRock Aggressive Growth Seeks maximum capital MetLife Advisers, LLC Portfolio -- Class D appreciation. Subadviser: BlackRock Advisors, LLC BlackRock Bond Income Seeks a competitive total return MetLife Advisers, LLC Portfolio -- Class A primarily from investing in Subadviser: BlackRock Advisors, fixed-income securities. LLC BlackRock Money Market Seeks a high level of current MetLife Advisers, LLC Portfolio -- Class A income consistent with Subadviser: BlackRock Advisors, preservation of capital. LLC Davis Venture Value Seeks growth of capital. MetLife Advisers, LLC Portfolio -- Class A Subadviser: Davis Selected Advisers, L.P. FI Large Cap Portfolio -- Class A Seeks long-term growth of MetLife Advisers, LLC capital. Subadviser: Pyramis Global Advisors, LLC FI Value Leaders Seeks long-term growth of MetLife Advisers, LLC Portfolio -- Class D capital. Subadviser: Pyramis Global Advisors, LLC MetLife Aggressive Allocation Seeks growth of capital. MetLife Advisers, LLC Portfolio -- Class B MetLife Conservative Allocation Seeks high level of current MetLife Advisers, LLC Portfolio -- Class B income, with growth of capital as a secondary objective. MetLife Conservative to Moderate Seeks high total return in the MetLife Advisers, LLC Allocation Portfolio -- Class B form of income and growth of capital, with a greater emphasis on income. MetLife Moderate Allocation Seeks a balance between a high MetLife Advisers, LLC Portfolio -- Class B level of current income and growth of capital, with a greater emphasis on growth of capital. MetLife Moderate to Aggressive Seeks growth of capital. MetLife Advisers, LLC Allocation Portfolio -- Class B MFS(R) Total Return Seeks a favorable total return MetLife Advisers, LLC Portfolio -- Class F through investment in a Subadviser: Massachusetts diversified portfolio. Financial Services Company MFS(R) Value Portfolio -- Class A Seeks capital appreciation and MetLife Advisers, LLC reasonable income. Subadviser: Massachusetts Financial Services Company Oppenheimer Global Equity Seeks capital appreciation. MetLife Advisers, LLC Portfolio -- Class B Subadviser: OppenheimerFunds, Inc. T. Rowe Price Large Cap Growth Seeks long-term growth of capital MetLife Advisers, LLC Portfolio -- Class B+ and, secondarily, dividend Subadviser: T. Rowe Price income. Associates, Inc.
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- T. Rowe Price Small Cap Growth Seeks long-term capital growth. MetLife Advisers, LLC Portfolio -- Class B Subadviser: T. Rowe Price Associates, Inc. Western Asset Management U.S. Seeks to maximize total return MetLife Advisers, LLC Government Portfolio -- Class A consistent with preservation of Subadviser: Western Asset capital and maintenance of Management Company liquidity. PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS Total Return Portfolio Seeks maximum total return, Pacific Investment Management consistent with preservation of Company LLC capital and prudent investment management. VAN KAMPEN LIFE INVESTMENT TRUST -- CLASS II Comstock Portfolio Seeks capital growth and income Van Kampen Asset Management through investments in equity securities, including common stocks, preferred stocks and securities convertible into common and preferred stocks. Enterprise Portfolio+ Seeks capital appreciation Van Kampen Asset Management through investments in securities believed by the Portfolio's investment adviser to have above average potential for capital appreciation.
- --------- + Not available under all Contracts. Availability depends on Contract issue date. ++ Closed to new investments except under dollar cost averaging and rebalancing programs in existence at the time of closing. Certain Variable Funding Options may have been subject to a merger, substitution or other change. Please see "Appendix C -- Additional Information Regarding Underlying Funds." FIXED ACCOUNT - -------------------------------------------------------------------------------- We may offer our Fixed Account as a funding option. Please refer to your Contract and Appendix D for more information. CHARGES AND DEDUCTIONS - -------------------------------------------------------------------------------- GENERAL We deduct the charges described below. The charges are for the services and benefits we provide, costs and expenses we incur, and risks we assume under the Contracts. Services and benefits we provide include: - the ability for you to make withdrawals and surrenders under the Contracts - the death benefit paid on the death of the Contract Owner, Annuitant, or first of the joint owners - the available funding options and related programs (including dollar cost averaging, portfolio rebalancing, and systematic withdrawal programs) - administration of the annuity options available under the Contracts 22 - the distribution of various reports to Contract Owners Costs and expenses we incur include: - losses associated with various overhead and other expenses associated with providing the services and benefits provided by the Contracts - sales and marketing expenses including commission payments to your registered representative - other costs of doing business Risks we assume include: - that Annuitants may live longer than estimated when the annuity factors under the Contracts were established - that the amount of the death benefit will be greater than the Contract Value - that the costs of providing the services and benefits under the Contracts will exceed the charges deducted We may also deduct a charge for taxes. Unless otherwise specified, charges are deducted proportionately from all funding options in which you are invested. The amount of a charge may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designated charge. For example, the withdrawal charge we collect may not fully cover all of the sales and distribution expenses we actually incur. We may also profit on one or more of the charges. We may use any such profits for any corporate purpose, including the payment of sales expenses. WITHDRAWAL CHARGE We do not deduct a sales charge from Purchase Payments when they are made to the Contract. However, a withdrawal charge will apply if Purchase Payments are withdrawn before they have been in the Contract for seven years. (This includes withdrawals resulting from a request to divide the Contract Value due to divorce.) We will assess the charge as a percentage of the Purchase Payment withdrawn as follows:
YEARS SINCE PURCHASE PAYMENT MADE - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 + years 0%
For purposes of the withdrawal charge calculation, withdrawals are deemed to be taken first from: (a) any Purchase Payment to which no withdrawal charge applies, then (b) any remaining free withdrawal allowance (as described below) (after being reduced by (a)), then (c) any remaining Purchase Payment to which a withdrawal charge applies (on a first-in, first-out basis), then (d) any Contract earnings Unless you instruct us otherwise, we will deduct the withdrawal charge from the amount requested. We will not deduct a withdrawal charge if Purchase Payments are distributed: - due to the death of the Contract Owner or the Annuitant (with no Contingent Annuitant surviving) - in the form of lifetime Annuity Payments or Annuity Payments for a fixed period of at least five years 23 - under the Managed Distribution Program - under the Nursing Home Confinement provision (as described in Appendix E) FREE WITHDRAWAL ALLOWANCE Beginning in the second Contract Year, you may withdraw up to 10% of the Contract Value annually, without a withdrawal charge. We calculate the available withdrawal amount as of the end of the previous Contract Year. If you have Purchase Payments no longer subject to a withdrawal charge, the maximum you may withdraw without a withdrawal charge is the greater of (a) the free withdrawal allowance or (b) the total amount of Purchase Payments no longer subject to a withdrawal charge. Any free withdrawal taken will reduce Purchase Payments no longer subject to a withdrawal charge. The free withdrawal allowance applies to any partial or full withdrawal. The free withdrawal allowance is not cumulative from year to year. Any withdrawal is subject to federal income taxes on the taxable portion. In addition, a 10% federal penalty may be assessed on any withdrawal if the Contract Owner is under age 59 1/2. You should consult with your tax adviser regarding the tax consequences of a withdrawal. TRANSFER CHARGE We reserve the right to assess a transfer charge of up to $10.00 on transfers exceeding 12 per year. We will notify you in writing at your last known address at least 31 days before we impose any such transfer charge. ADMINISTRATIVE CHARGES There are two administrative charges: the $30 annual Contract administrative charge and the administrative expense charge. The annual Contract administrative charge will be deducted on a pro-rata basis from amounts allocated to the Variable Funding Options. We will deduct this charge on the fourth Friday of each August. This charge compensates us for expenses incurred in establishing and maintaining the Contract and we will prorate this charge (i.e. calculate) from the date of purchase. We will prorate this charge if you surrender your Contract, or if we terminate your Contract. We will not deduct a Contract administrative charge from the Fixed Account, if it is available, or: (1) from the distribution of death proceeds; (2) after an annuity payout has begun; or (3) if the Contract Value on the date of assessment equals or is greater than $40,000. We deduct the administrative expense charge (sometimes called "Subaccount administrative charge") on each business day from amounts allocated to the Variable Funding Options to compensate the Company for certain related administrative and operating expenses. The charge equals, on an annual basis, 0.15% of the daily net asset value allocated to each of the Variable Funding Options, and is reflected in our Accumulation and Annuity Unit value calculations. MORTALITY AND EXPENSE RISK CHARGE Each business day, we deduct a mortality and expense risk ("M&E") charge from amounts held in the Variable Funding Options. We reflect the deduction in our calculation of Accumulation and Annuity Unit values. The charges stated are the maximum for this product. We reserve the right to lower this charge at any time. If you choose the Standard Death Benefit, the M&E charge is 1.30% annually. If you choose the Step-Up Death Benefit, the M&E charge is 1.40% annually. If you choose the Roll-Up Death Benefit, the M&E charge is 1.60% annually. This charge compensates the Company for risks assumed, benefits provided and expenses incurred, including the payment of commissions to your registered representative. 24 VARIABLE LIQUIDITY BENEFIT CHARGE If the Variable Liquidity Benefit is selected, there is a maximum charge of 6% of the amounts withdrawn. This charge is not assessed during the accumulation phase. We will assess the charge as a percentage of the total benefit received as follows:
YEARS SINCE INITIAL PURCHASE PAYMENT - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7+ years 0%
Please refer to "Payment Options" for a description of this benefit. ENHANCED STEPPED-UP PROVISION CHARGE If the E.S.P. option is selected, a charge is deducted each business day from amounts held in the Variable Funding Options. The charge equals, on an annual basis, 0.20% of the amounts held in each funding option. The E.S.P. option is available if the owner and Annuitant are both age 75 or younger on the Contract Date. GUARANTEED MINIMUM WITHDRAWAL BENEFIT CHARGE If you elect to add a GMWB rider to your Contract, a charge is deducted each business day from amounts held in the Variable Funding Options. The charge depends on which GWMB rider you select. The current charge for each rider is as follows: GMWB I: 0.40%; GMWB II: 0.50%; and GMWB III: 0.25%. Your current charge will not change unless you are able to reset your benefits, at which time we may modify the charge, which will never exceed 1.00%. These GMWB riders may be elected only at the time of your initial purchase of the Contract. GUARANTEED MINIMUM ACCUMULATION BENEFIT CHARGE If the GMAB option is selected, a charge is deducted each business day from amounts held in the Variable Funding Options. The charge equals, on an annual basis, 0.50% of the amounts held in each funding option. VARIABLE FUNDING OPTION EXPENSES We summarized the charges and expenses of the Underlying Funds in the fee table. Please review the prospectus for each Underlying Fund for a more complete description of that fund and its expenses. Underlying Fund expenses are not fixed or guaranteed and are subject to change by the Fund. PREMIUM TAX Certain state and local governments charge premium taxes ranging from 0% to 3.5%, depending upon jurisdiction. We are responsible for paying these taxes and will determine the method used to recover premium tax expenses incurred. We will deduct any applicable premium taxes from your Contract Value either upon death, surrender, annuitization, or at the time you make Purchase Payments to the Contract, but no earlier than when we have a tax liability under state law. CHANGES IN TAXES BASED UPON PREMIUM OR VALUE If there is any change in a law assessing taxes against the Company based upon premiums, contract gains or value of the Contract, we reserve the right to charge you proportionately for this tax. 25 TRANSFERS - -------------------------------------------------------------------------------- Subject to the limitations described below, you may transfer all or part of your Contract Value between Variable Funding Options at any time up to 30 days before the Maturity Date. After the Maturity Date, you may make transfers only if allowed by your Contract or with our consent. Transfer requests received at our Home Office that are in good order before the close of the New York Stock Exchange (NYSE) will be processed according to the value(s) next computed following the close of business. Transfer requests received on a non-business day or after the close of the NYSE will be processed based on the value(s) next computed on the next business day. Where permitted by state law, we reserve the right to restrict transfers from the Variable Funding Options to the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified under the Contract. Currently, there are no charges for transfers; however, we reserve the right to charge a fee for any transfer request which exceeds twelve per year. Since each Underlying Fund may have different overall expenses, a transfer of Contract Values from one Variable Funding Option to another could result in your investment becoming subject to higher or lower expenses. Also, when making transfers, you should consider the inherent risks associated with the Variable Funding Options to which your Contract Value is allocated. MARKET TIMING/EXCESSIVE TRADING Frequent requests from Contract Owners to transfer Contract Value may dilute the value of an Underlying Fund's shares if the frequent trading involves an attempt to take advantage of pricing inefficiencies created by a lag between a change in the value of the securities held by the Underlying Fund and the reflection of that change in the Underlying Fund's share price ("arbitrage trading"). Regardless of the existence of pricing inefficiencies, frequent transfers may also increase brokerage and administrative costs of the Underlying Funds and may disrupt Underlying Fund management strategy, requiring an Underlying Fund to maintain a high cash position and possibly resulting in lost investment opportunities and forced liquidations ("disruptive trading"). Accordingly, arbitrage trading and disruptive trading activities (referred to collectively as "market timing") may adversely affect the long-term performance of the Underlying Funds, which may in turn adversely affect Contract Owners and other persons who may have an interest in the Contracts (e.g., annuitants and beneficiaries). We have policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading. Currently, we believe that such situations may be presented in the international, small-cap, and high-yield Underlying Funds, i.e., American Funds Global Growth Fund, Templeton Foreign Securities Fund, Janus Aspen Series Global Life Sciences Portfolio, Janus Aspen Series Global Technology Portfolio, Legg Mason Partners Variable Small Cap Growth Portfolio, BlackRock High Yield Portfolio, Clarion Global Real Estate Portfolio, Dreman Small-Cap Value Portfolio, Harris Oakmark International Portfolio, Lord Abbett Bond Debenture Portfolio, Met/AIM Small Cap Growth Portfolio, MFS(R) Emerging Markets Equity Portfolio, MFS(R) Research International Portfolio, Pioneer Strategic Income Portfolio, Third Avenue Small Cap Value Portfolio, Oppenheimer Global Equity Portfolio, and T. Rowe Price Small Cap Growth Portfolio (the "Monitored Portfolios"), and we monitor transfer activity in those Monitored Portfolios. In addition, as described below, we treat all American Funds Insurance Series portfolios ("American Funds portfolios") as Monitored Portfolios. We employ various means to monitor transfer activity, such as examining the frequency and size of transfers into and out of the Monitored Portfolios within given periods of time. For example, we currently monitor transfer activity to determine if, for each of the Monitored Portfolios, in a three-month period there were two or more "round-trips" of a certain dollar amount or greater. A round-trip is defined as a transfer in followed by a transfer out within the next 10 calendar days, or a transfer out followed by a transfer in within the next 10 calendar days. In the case of a Contract that has been restricted previously, a single round-trip of a certain dollar amount or greater will trigger the transfer restrictions described below. We do not believe that other Underlying Funds present a significant opportunity to engage in arbitrage trading and therefore do not monitor transfer activity in those Underlying Funds. We may change the Monitored Portfolios at any time without notice in our sole discretion. In addition to monitoring transfer activity in certain Underlying Funds, we rely on the Underlying Funds to bring any potential disruptive trading activity they identify to our attention for investigation on a case-by-case basis. We will also investigate other harmful transfer activity that we identify from time to time. We may revise these policies and procedures in our sole discretion at any time without prior notice. 26 AMERICAN FUNDS MONITORING POLICY. As a condition to making their portfolios available in our products, American Funds requires us to treat all American Funds portfolios as Monitored Portfolios under our current market timing and excessive trading policies and procedures. Further, American Funds requires us to impose additional specified monitoring criteria for all American Funds portfolios available under the Contract, regardless of the potential for arbitrage trading. We are required to monitor transfer activity in American Funds portfolios to determine if there were two or more transfers in followed by transfers out, in each case of a certain dollar amount or greater, in any 30-day period. A first violation of the American Funds monitoring policy will result in a written notice of violation; any additional violation will result in the imposition of the transfer restrictions described below. Further, as Monitored Portfolios, American Funds portfolios also will be subject to our current market timing and excessive trading policies, procedures and restrictions, and transfer restrictions may be imposed upon a violation of either monitoring policy. Our policies and procedures may result in transfer restrictions being applied to deter market timing. Currently, when we detect transfer activity in the Monitored Portfolios that exceeds our current transfer limits, or other transfer activity that we believe may be harmful to other Owners or other persons who have an interest in the Contracts, we will exercise our contractual right to restrict your number of transfers to one every six months. In addition, we also reserve the right, but do not have the obligation, to further restrict the right to request transfers by any market timing firm or any other third party who has been authorized to initiate transfers on behalf of multiple Contract Owners. We may, among other things: - reject the transfer instructions of any agent acting under a power of attorney on behalf of more than one Owner, or - reject the transfer or exchange instructions of individual Owners who have executed pre-authorized transfer forms which are submitted by market timing firms or other third parties on behalf of more than one Owner. Transfers made under a Dollar Cost Averaging Program, a rebalancing program or, if applicable, any asset allocation program described in this prospectus are not treated as transfers when we evaluate trading patterns for market timing. The detection and deterrence of harmful transfer activity involves judgments that are inherently subjective, such as the decision to monitor only those Underlying Funds that we believe are susceptible to arbitrage trading or the determination of the transfer limits. Our ability to detect and/or restrict such transfer activity may be limited by operational and technological systems, as well as our ability to predict strategies employed by Owners to avoid such detection. Our ability to restrict such transfer activity also may be limited by provisions of the Contract. Accordingly, there is no assurance that we will prevent all transfer activity that may adversely affect Owners and other persons with interests in the Contracts. We do not accommodate market timing in any Underlying Fund and there are no arrangements in place to permit any Contract Owner to engage in market timing; we apply our policies and procedures without exception, waiver, or special arrangement. The Underlying Funds may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares and we reserve the right to enforce these policies and procedures. For example, Underlying Funds may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the Underlying Funds describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Although we may not have the contractual authority or the operational capacity to apply the frequent trading policies and procedures of the Underlying Funds, we have entered into a written agreement, as required by SEC regulation, with each Underlying Fund or its principal underwriter that obligates us to provide to the Underlying Fund promptly upon request certain information about the trading activity of individual Contract Owners, and to execute instructions from the Underlying Fund to restrict or prohibit further purchases or transfers by specific Contract Owners who violate the frequent trading policies established by the Underlying Fund. In addition, Contract Owners and other persons with interests in the contracts should be aware that the purchase and redemption orders received by the Underlying Funds generally are "omnibus" orders from intermediaries, such as separate accounts funding variable insurance contracts or retirement plans. The omnibus orders reflect the aggregation and netting of multiple orders from individual owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Underlying Funds in their ability to apply their frequent trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the Underlying Funds (and thus Contract 27 Owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the Underlying Funds. If an Underlying Fund believes that an omnibus order reflects one or more transfer requests from Contract Owners engaged in disruptive trading activity, the Underlying Fund may reject the entire omnibus order. In accordance with applicable law, we reserve the right to modify or terminate the transfer privilege at any time. We also reserve the right to defer or restrict the transfer privilege at any time that we are unable to purchase or redeem shares of any of the Underlying Funds, including any refusal or restriction on purchases or redemptions of their shares as a result of their own policies and procedures on market timing activities (even if an entire omnibus order is rejected due to the market timing activity of a single Contract Owner). You should read the Underlying Fund prospectuses for more details. DOLLAR COST AVERAGING Dollar cost averaging or the pre-authorized transfer program (the "DCA Program") allows you to transfer a set dollar amount to other funding options on a monthly or quarterly basis during the accumulation phase of the Contract. Using this method, you will purchase more Accumulation Units in a funding option if the value per unit is low and will purchase fewer Accumulation Units if the value per unit is high. Therefore, you may achieve a lower-than-average cost per unit in the long run if you have the financial ability to continue the program over a long enough period of time. Dollar cost averaging does not assure a profit or protect against a loss. You may elect the DCA Program through Written Request or other method acceptable to us. You must have a minimum total Contract Value of $5,000 to enroll in the DCA Program. The minimum amount that may be transferred through this program is $400. There is no additional fee to participate in the DCA Program. You may establish pre-authorized transfers of Contract Values from the Fixed Account, subject to certain restrictions. Under the DCA Program, automated transfers from the Fixed Account may not deplete your Fixed Account Value in less than twelve months from your enrollment in the DCA Program. In addition to the DCA Program, within the Fixed Account, we may credit increased interest rates to Contract Owners under an administrative Special DCA Program established at our discretion, depending on availability and state law. Under this program, the Contract Owner may pre-authorize level transfers to any of the funding options under a 6 Month, 12 Month or 24 Month Special DCA Program. The programs may have different credited interest rates. We must transfer all Purchase Payments and accrued interest on a level basis to the selected funding options in the applicable time period. Under each program, the interest will accrue only on the remaining amounts in the Special DCA Program. For example, under the 12 Month program, the interest rate can accrue up to 12 months on the remaining amounts in the Special DCA Program and we must transfer all Purchase Payments and accrued interest in this program on a level basis to the selected funding options in 12 months. The pre-authorized transfers will begin after the initial program Purchase Payment and complete enrollment instructions are received by the Company. If we do not receive complete program enrollment instructions within 15 days of receipt of the initial program Purchase Payment, the entire balance in the program will be transferred into the Money Market Variable Funding Option. You may start or stop participation in the DCA Program at any time, but you must give the Company at least 30 days' notice to change any automated transfer instructions that are currently in place. If you stop the Special DCA Program and elect to remain in the Fixed Account, we will credit your Contract Value for the remainder of 6 or 12 months with the interest rate for non-DCA Program funds. You may only have one DCA Program or Special DCA Program in place at one time. All provisions and terms of the Contract apply to the DCA and Special DCA Programs, including provisions relating to the transfer of money between funding options. Transfers made under any DCA Program will not be counted for purposes of restrictions we may impose on the number of transfers permitted under the Contract. We reserve the right to suspend or modify transfer privileges at any time and to assess a processing fee for this service. If the Fixed Account is not available as a funding option, you may still participate in the DCA Program. 28 ACCESS TO YOUR MONEY - -------------------------------------------------------------------------------- Any time before the Maturity Date, you may redeem all or any portion of the Cash Surrender Value, that is, the Contract Value less any withdrawal charge, and any premium tax not previously deducted. Unless you submit a Written Request specifying the Variable Funding Option(s) and/or the Fixed Account from which we are to withdraw amounts, we will make the withdrawal on a pro rata basis. We will determine the Cash Surrender Value as of the close of business after we receive your surrender request at our Home Office. The Cash Surrender Value may be more or less than the Purchase Payments you made. You may not make withdrawals during the annuity period. For amounts allocated to the Variable Funding Options, we may defer payment of any Cash Surrender Value for a period of up to five business days after the Written Request is received. For amounts allocated to the Fixed Account, we may defer payment of any Cash Surrender Value for a period up to six months. In either case, it is our intent to pay as soon as possible. We cannot process requests for withdrawals that are not in good order. We will contact you if there is a deficiency causing a delay and will advise what is needed to act upon the withdrawal request. We may withhold payment of surrender or withdrawal proceeds if any portion of those proceeds would be derived from a Contract Owner's check that has not yet cleared (i.e., that could still be dishonored by your banking institution). We may use telephone, fax, Internet or other means of communications to verify that payment from the Contract Owner's check has been or will be collected. We will not delay payment longer than necessary for us to verify that payment has been or will be collected. Contract Owners may avoid the possibility of delay in the disbursement of proceeds coming from a check that has not yet cleared by providing us with a certified check. If your Contract is issued as part of a 403(b) plan, there are restrictions on your ability to make withdrawals from your Contract. You may not withdraw contributions or earnings made to your Contract after December 31, 1988 unless you are (a) age 59 1/2, (b) no longer employed, (c) deceased, (d) disabled, or (e) experiencing a financial hardship. Even if you are experiencing a financial hardship, you may only withdraw contributions, not earnings. You should consult with your tax adviser before making a withdrawal from your Contract. SYSTEMATIC WITHDRAWALS Before the Maturity Date, you may choose to withdraw a specified dollar amount (at least $100) on a monthly, quarterly, semiannual or annual basis. We will deduct any applicable premium taxes and withdrawal charge. To elect systematic withdrawals, you must have a Contract Value of at least $15,000 and you must make the election on the form we provide. We will surrender Accumulation Units pro rata from all funding options in which you have an interest, unless you instruct us otherwise. You may begin or discontinue systematic withdrawals at any time by notifying us in writing, but you must give at least 30 days' notice to change any systematic withdrawal instructions that are currently in place. We reserve the right to discontinue offering systematic withdrawals or to assess a processing fee for this service upon 30 days' written notice to Contract Owners (where allowed by state law). There is currently no additional fee for electing systematic withdrawals. Each systematic withdrawal is subject to federal income taxes on the taxable portion and may be subject to Contract charges. In addition, a 10% federal penalty tax may be assessed on systematic withdrawals if the Contract Owner is under age 59 1/2. You should consult with your tax adviser regarding the tax consequences of systematic withdrawals. MANAGED DISTRIBUTION PROGRAM. Under the systematic withdrawal option, you may choose to participate in the Managed Distribution Program. At no cost to you, you may instruct us to calculate and make minimum distributions that may be required by the IRS upon reaching age 70 1/2. (See "Federal Tax Considerations.") These payments will not be subject to the withdrawal charge and will be in lieu of the free withdrawal allowance. No Dollar Cost Averaging will be permitted if you are participating in the Managed Distribution Program. 29 OWNERSHIP PROVISIONS - -------------------------------------------------------------------------------- TYPES OF OWNERSHIP CONTRACT OWNER The Contract belongs to the Contract Owner named in the Contract (on the Contract Specifications page), or to any other person to whom you subsequently assign the Contract. You may only make an assignment of ownership or a collateral assignment for Non-qualified Contracts. You have sole power during the Annuitant's lifetime to exercise any rights and to receive all benefits given in the Contract provided you have not named an irrevocable beneficiary and provided you have not assigned the Contract. You receive all payments while the Annuitant is alive unless you direct them to an alternate recipient. An alternate recipient does not become the Contract Owner. If this Contract is purchased by a beneficiary of another contract who directly transferred the death proceeds due under that contract, he/she will be granted the same rights the owner has under the Contract except that he/she cannot transfer ownership, or make additional Purchase Payments. Joint Owner. For Non-qualified Contracts only, you may name joint owners (e.g., spouses) in a Written Request before the Contract is in effect. Joint owners may independently exercise transfers allowed under the Contract. All other rights of ownership must be exercised by both owners. Joint owners own equal shares of any benefits accruing or payments made to them. BENEFICIARY You name the beneficiary in a Written Request. The beneficiary has the right to receive any death benefit proceeds remaining under the Contract upon the death of the Annuitant or the Contract Owner. If more than one beneficiary survives the Annuitant or Contract Owner, they will share equally in benefits unless you recorded different shares with the Company by Written Request before the death of the Annuitant or Contract Owner. In the case of a non-spousal beneficiary or a spousal beneficiary who has not chosen to assume the Contract, we will not transfer or otherwise remove the death benefit proceeds from either the Variable Funding Options or the Fixed Account, as most recently elected by the Contract Owner, until the Death Report Date. Unless you have named an irrevocable beneficiary you have the right to change any beneficiary by Written Request during the lifetime of the Annuitant and while the Contract continues. ANNUITANT The Annuitant is designated in the Contract (on the Contract Specifications page), and is the individual on whose life the Maturity Date and the amount of the monthly Annuity Payments depend. You may not change the Annuitant after your Contract is in effect. Contingent Annuitant. You may name one individual as a Contingent Annuitant. A Contingent Annuitant may not be changed, deleted or added to the Contract after the Contract Date. If the Annuitant who is not the owner dies prior to the Maturity Date, and the Contingent Annuitant is still living: - the death benefit will not be payable upon the Annuitant's death - the Contingent Annuitant becomes the Annuitant - all other rights and benefits will continue in effect When a Contingent Annuitant becomes the Annuitant, the Maturity Date remains the same as previously in effect. If the Annuitant is also the owner, a death benefit is paid to the beneficiary regardless of whether or not there is a Contingent Annuitant. 30 DEATH BENEFIT - -------------------------------------------------------------------------------- Before the Maturity Date, generally, a death benefit is payable when either the Annuitant or a Contract Owner dies. We calculate the death benefit at the close of the business day on which our Home Office receives (1) Due Proof of Death and (2) written payment instructions or election of spousal contract continuance or beneficiary contract continuance ("Death Report Date"). There are age restrictions on certain death benefits (see "The Annuity Contract".) NOTE: If the owner dies before the Annuitant, the death benefit is recalculated, replacing all referenced to "Annuitant" below with "owner". All death benefits will be reduced by any premium tax and outstanding loans not previously deducted. DEATH PROCEEDS BEFORE THE MATURITY DATE DEFERRED ANNUAL STEP-UP (STANDARD DEATH BENEFIT) We will pay to the beneficiary a death benefit in an amount equal to the greatest of (1), (2) or (3) below, each reduced by any applicable premium tax or outstanding loans: (1) the Contract Value on the Death Report Date (2) your adjusted Purchase Payment (see below)* or (3) the Step-Up Value (if any, as described below)** STEP-UP DEATH BENEFIT We will pay to the beneficiary a death benefit in an amount equal to the greatest of (1), (2) or (3) below, each reduced by any applicable premium tax or outstanding loans: (1) the Contract Value on the Death Report Date (2) your Adjusted Purchase Payment (see below)* or (3) the Step-Up Value (if any, as described below) 31 ROLL-UP DEATH BENEFIT
- ------------------------------------------------------------------------------------- If the Annuitant dies before age 80, the death benefit will be the greatest of: - the Contract Value on the Death Report Date; - your Adjusted Purchase Payment (see below)*; - the Step-Up Value, if any, (as described below)** - the Roll-Up Death Benefit Value (as described below)** - ------------------------------------------------------------------------------------- If the Annuitant dies on or after age 80, the death benefit will be the greatest of: - the Contract Value on the Death Report Date; - your Adjusted Purchase Payment (see below)* or - the Step-Up Value, if any, as described below**, or - the Roll-Up Death Benefit Value (as described below)** on the Annuitant's 80(th) birthday, plus any additional Purchase Payments and minus any partial surrender reductions (as described below) that occur after the Annuitant's 80(th) birthday. - -------------------------------------------------------------------------------------
* If you have elected a GMWB Rider (Principal Guarantee) your Adjusted Purchase Payment will NOT be calculated as described below but will be equal to your aggregate Purchase Payments minus your aggregate withdrawals from the date you purchase the rider. ** Your Step-Up Value or your Roll-Up Death Benefit Value will be subject to the partial surrender reduction below even if you have elected a GMWB rider. ADJUSTED PURCHASE PAYMENT. The initial Adjusted Purchase Payment is equal to the initial Purchase Payment. Whenever an additional Purchase Payment is made, the Adjusted Purchase Payment is increased by the amount of the Purchase Payment. Whenever a partial surrender is taken, the Adjusted Purchase Payment is reduced by a Partial Surrender Reduction, described below. STEP-UP VALUE (FOR STANDARD DEATH BENEFIT) The Step-Up Value will initially equal the Contract Value on the seventh Contract Date anniversary that occurs before the Annuitant's 80th birthday and before the Death Report Date. On each subsequent Contract Date anniversary that occurs before the Annuitant's 80th birthday and before the Annuitant's death, if the Contract Value is greater than the Step-Up Value, the Step-Up Value will be increased to equal the Contract Value. If the Step-Up Value is greater than the Contract Value, the Step-Up Value will remain unchanged. Whenever a Purchase Payment is made, the Step-Up Value will be increased by the amount of that Purchase Payment. Whenever a withdrawal is taken, the Step-Up Value will be reduced by a Partial Surrender Reduction as described below. The only changes made to the Step-Up Value on or after the Annuitant's 80th birthday will be those related to additional Purchase Payments or partial surrenders as described below. If the Death Report Date or the Annuitant's 80th birthday is before the seventh Contract Date anniversary, there is no Step-Up Value. STEP-UP VALUE (FOR STEP-UP AND ROLL-UP DEATH BENEFITS)+ The Step-Up Value will initially equal the Contract Value on the first Contract Date anniversary. On each subsequent Contract Date anniversary that occurs before the Annuitant's 80th birthday and before the Annuitant's death, if the Contract Value is greater than the Step-Up Value, the Step-Up Value will be increased to equal the Contract Value. If the Step-Up Value is greater than the Contract Value, the Step-Up Value will remain unchanged. Whenever a Purchase Payment is made, the Step-Up Value will be increased by the amount of that Purchase Payment. Whenever a withdrawal is taken, the Step-Up Value will be reduced by a Partial Surrender Reduction as described below. The only changes made to the Step-Up value on or after the Annuitant's 80th birthday will be those related to additional Purchase Payments or partial surrenders as described below. 32 ROLL-UP DEATH BENEFIT VALUE+ On the Contract Date, the Roll-Up Death Benefit Value is equal to the Purchase Payment. On each Contract Date anniversary, the Roll-Up Death Benefit Value will be recalculated to equal a) plus b) minus c), increased by 5%, where: a) is the Roll-Up Death Benefit Value as of the previous Contract Date anniversary b) is any Purchase Payment made during the previous Contract Year c) is any Partial Surrender Reduction (as described below) during the previous Contract Year. On dates other than the Contract Date anniversary, the Roll-Up Death Benefit Value will equal a) plus b) minus c) where: a) is the Roll-Up Death Benefit Value as of the previous Contract Date anniversary b) is any Purchase Payment made since the previous Contract Date anniversary c) is any Partial Surrender Reduction (as described below) since the previous Contract Date anniversary +May not be available in all states. Please check with your registered representative. The maximum Roll-Up Death Benefit equals 200% of the difference between all Purchase Payments and all partial surrender reductions** (as described below). PARTIAL SURRENDER REDUCTIONS. ADJUSTED PURCHASE PAYMENT: The Partial Surrender Reduction equals (1) the Adjusted Purchase Payment in effect immediately before the reduction for withdrawal, multiplied by (2) the amount of the withdrawal, divided by (3) the Contract Value before the withdrawal. For example, assume your current Contract Value is $55,000. If your current Adjusted Purchase Payment is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Adjusted Purchase Payment as follows: $50,000 x ($10,000/$55,000) = $9,090 Your new Adjusted Purchase Payment would be $50,000-$9,090, or $40,910. The following example shows what would happen in a declining market. Assume your current Contract Value is $30,000. If your current Adjusted Purchase Payment is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Adjusted Purchase Payment as follows: $50,000 x ($10,000/$30,000) = $16,666 Your new Adjusted Purchase Payment would be $50,000-$16,666, or $33,334. STEP-UP AND ROLL-UP VALUE: The Partial Surrender Reduction equals (1) the death benefit (Step-Up or Roll-Up Value) in effect immediately before the reduction for withdrawal, multiplied by (2) the amount of the withdrawal, divided by (3) the Contract Value before the surrender. For example, assume your current Contract Value is $55,000. If your current Step-Up Value is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Step-Up Value as follows: $50,000 x ($10,000/$55,000) = $9,090 Your new Step-Up Value would be $50,000-$9,090, or $40,910. The following example shows what would happen in a declining market. Assume your current Contract Value is $30,000. If your current Step-Up Value is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Step-Up Value as follows: $50,000 x ($10,000/$30,000) = $16,666 33 Your new Step-Up Value would be $50,000-$16,666, or $33,334. ENHANCED STEPPED-UP PROVISION ("E.S.P.") THIS PROVISION IS NOT AVAILABLE TO A CUSTOMER WHEN EITHER THE ANNUITANT OR OWNER IS AGE 76 OR OLDER ON THE RIDER EFFECTIVE DATE. The rider effective date is the date the rider is attached to and made a part of the Contract. If you have selected the E.S.P., the total death benefit as of the Death Report Date will equal the death benefit described above plus the greater of zero or the following amount: IF THE ANNUITANT IS YOUNGER THAN AGE 70 ON THE RIDER EFFECTIVE DATE, 40% OF THE LESSER OF: (1) 200% of the modified Purchase Payments excluding Purchase Payments that are both received after the first rider effective date anniversary and within 12 months of the Death Report Date, or (2) your Contract Value minus the modified Purchase Payments, calculated as of the Death Report Date; or IF THE ANNUITANT IS BETWEEN THE AGES OF 70 AND 75 ON THE RIDER EFFECTIVE DATE, 25% OF THE LESSER OF: (1) 200% of the modified Purchase Payments excluding Purchase Payments that are both received after the first rider effective date anniversary and within 12 months of the Death Report Date, or (2) your Contract Value minus the modified Purchase Payments, calculated as of the Death Report Date. THE INITIAL MODIFIED PURCHASE PAYMENT is equal to the Contract Value as of the rider effective date. Whenever a Purchase Payment is made after the rider effective date, the modified Purchase Payment(s) are increased by the amount of the Purchase Payment. Whenever a partial surrender is taken after the rider effective date, the modified Purchase Payment(s) are reduced by a partial surrender reduction as described below. THE PARTIAL SURRENDER REDUCTION IS EQUAL TO: (1) the modified Purchase Payment(s) in effect immediately prior to the reduction for the partial surrender, multiplied by (2) the amount of the partial surrender divided by (3) the Contract Value immediately prior to the partial surrender. For example, assume your current modified Purchase Payment is $50,000 and that your current Contract Value is $55,000. You decide to make a withdrawal of $10,000. We would reduce the modified Purchase Payment as follows: $50,000 X ($10,000/$55,000) = $9,090 You new modified Purchase Payment would be $50,000-$9,090 = $40,910. The following example shows what would happen in a declining market. Assume your current Contract Value is $30,000. If your current modified Purchase Payment is $50,000 and you decide to make a withdrawal of $10,000, we would reduce the modified Purchase Payment as follows: $50,000 X ($10,000/$30,000) = $16,666 Your new modified Purchase Payment would be $50,000-$16,666 = $33,334. PAYMENT OF PROCEEDS We describe the process of paying death benefit proceeds before the Maturity Date in the charts below. The charts do not encompass every situation and are merely intended as a general guide. More detailed information is provided in your Contract. Generally, the person(s) receiving the benefit may request that the proceeds be paid in a lump sum, or be applied to one of the settlement options available under the Contract. 34 NON-QUALIFIED CONTRACTS
- -------------------------------------------------------------------------------------------------------------- MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: UNLESS... APPLY* - -------------------------------------------------------------------------------------------------------------- OWNER (WHO IS NOT THE The beneficiary(ies), or if The beneficiary elects to Yes ANNUITANT) (WITH NO JOINT none, to the Contract continue the Contract rather OWNER) Owner's estate. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- OWNER (WHO IS THE ANNUITANT) The beneficiary(ies), or if The beneficiary elects to Yes (WITH NO JOINT OWNER) none, to the Contract continue the Contract rather Owner's estate. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- NON-SPOUSAL JOINT OWNER (WHO The surviving joint owner. Yes IS NOT THE ANNUITANT) - -------------------------------------------------------------------------------------------------------------- NON-SPOUSAL JOINT OWNER (WHO The beneficiary(ies), or, if The beneficiary elects to Yes IS THE ANNUITANT) none, to the surviving joint continue the Contract rather owner. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- SPOUSAL JOINT OWNER (WHO IS The surviving joint owner. The spouse elects to Yes NOT THE ANNUITANT) continue the Contract. - -------------------------------------------------------------------------------------------------------------- SPOUSAL JOINT OWNER (WHO IS The beneficiary(ies), or if The spouse elects to Yes THE ANNUITANT) none, to the surviving joint continue the Contract. owner A spouse who is not the beneficiary may decline to continue the Contract and instruct the Company to pay the beneficiary. - -------------------------------------------------------------------------------------------------------------- ANNUITANT (WHO IS NOT THE The beneficiary(ies), or if The beneficiary elects to Yes CONTRACT OWNER) none, to the Contract Owner. continue the Contract rather than receive a lump sum distribution. But, if there is a Contingent Annuitant, then the Contingent Annuitant becomes the Annuitant and the Contract continues in effect (generally using the original Maturity Date). The proceeds will then be paid upon the death of the Contingent Annuitant or owner. - -------------------------------------------------------------------------------------------------------------- ANNUITANT (WHO IS THE See death of "owner who is Yes CONTRACT OWNER) the Annuitant" above. - --------------------------------------------------------------------------------------------------------------
35
- -------------------------------------------------------------------------------------------------------------- MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: UNLESS... APPLY* - -------------------------------------------------------------------------------------------------------------- ANNUITANT (WHERE OWNER IS A NON-NATURAL ENTITY/TRUST) The beneficiary(ies), or if Yes (Death of Annuitant is none, to the owner. treated as death of the owner in these circumstances.) - -------------------------------------------------------------------------------------------------------------- CONTINGENT ANNUITANT No death proceeds are N/A (ASSUMING ANNUITANT IS STILL payable; Contract continues. ALIVE) - -------------------------------------------------------------------------------------------------------------- BENEFICIARY No death proceeds are N/A payable; Contract continues. - -------------------------------------------------------------------------------------------------------------- CONTINGENT BENEFICIARY No death proceeds are N/A payable; Contract continues. - --------------------------------------------------------------------------------------------------------------
QUALIFIED CONTRACTS
- -------------------------------------------------------------------------------------------------------------- MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: UNLESS... APPLY* - -------------------------------------------------------------------------------------------------------------- OWNER/ANNUITANT The beneficiary(ies), or if The beneficiary elects to Yes none, to the Contract continue the Contract rather Owner's estate. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- BENEFICIARY No death proceeds are N/A payable; Contract continues. - -------------------------------------------------------------------------------------------------------------- CONTINGENT BENEFICIARY No death proceeds are N/A payable; Contract continues. - --------------------------------------------------------------------------------------------------------------
- --------- * Certain payout rules of the Code are triggered upon the death of any owner. Non-spousal beneficiaries (as well as spousal beneficiaries who choose not to assume the Contract) must begin taking distributions based on the beneficiary's life expectancy within one year of death or take a complete distribution of contract proceeds within 5 years of death. Spousal beneficiaries must choose to continue the Contract as allowed under the spousal contract continuance provision described below within one year of death. For Qualified Contracts, if mandatory distributions have already begun at the death of the Annuitant, the 5-year payout option is not available. SPOUSAL CONTRACT CONTINUANCE (SUBJECT TO AVAILABILITY -- DOES NOT APPLY IF A NON-SPOUSE IS A JOINT OWNER) Within one year of your death, if your spouse is named as an owner and/or beneficiary, and you die before the Maturity Date, your spouse may elect to continue the Contract as owner rather than have the death benefit paid to the beneficiary. If you were the Annuitant and your spouse elects to continue the Contract, your spouse will be named the Annuitant as of the Death Report Date. If your spouse elects to continue the Contract as Contract Owner, the death benefit will be calculated as of the Death Report Date. If the Contract Value is less than the calculated death benefit, the Contract Value will be increased to equal the death benefit. This amount is referred to as the adjusted Contract Value. Any difference between the Contract Value and the adjusted Contract Value will be allocated to the funding options in the same proportion as the allocations of the Contract prior to the Death Report Date. The terms and conditions that applied to the original Contract (including Contract fees and charges) will also apply to the continued Contract, with certain exceptions described in the Contract. Any Purchase Payment made before the Death Report Date is no longer subject to a withdrawal charge if your spouse elects to continue the Contract. Purchase Payments made to the Contract after the Death Report Date will be subject to the withdrawal charge. All other benefits and features of your Contract will be based on your spouse's age on the Death Report Date as if your 36 spouse had purchased the Contract with the adjusted Contract Value on the Death Report Date. This spousal contract continuance is available only once for each Contract. For purposes of the death benefit on the continued Contract, the death benefit will be calculated the same as prior to continuance except all values used to calculate the death benefit, which may include a Step-Up Value or Roll- Up Death Benefit Value (depending on the optional benefit), are reset on the date the spouse continues the contract. Spousal continuation will not satisfy required minimum distribution rules for Qualified Contracts other than IRAs. In addition, because the contract proceeds must be distributed within the time periods required by the federal Internal Revenue Code, the right of a spouse to continue the contract, and all contract provisions relating to spousal continuation, are available only to a person who is defined as a "spouse" under the federal Defense of Marriage Act, or any other applicable federal law. Please consult a tax advisor before electing this option. BENEFICIARY CONTRACT CONTINUANCE (NOT PERMITTED FOR NON-NATURAL BENEFICIARIES) If you die before the Maturity Date, and if the value of any beneficiary's portion of the death benefit is between $20,000 and $1,000,000 as of the Death Report Date, (more than $1,000,000 is subject to Home Office approval), your beneficiary(ies) may elect to continue his/her portion of the Contract subject to applicable Internal Revenue Code distribution requirements, rather than receive the death benefit in a lump sum. If the beneficiary chooses to continue the Contract, the beneficiary can extend the payout phase of the Contract enabling the beneficiary to "stretch" the death benefit distributions out over his life expectancy as permitted by the Internal Revenue Code. If your beneficiary elects to continue the Contract, the death benefit will be calculated as of the Death Report Date. The initial Contract Value of the continued Contract (the "adjusted Contract Value") will equal the greater of the Contract Value or the death benefit calculated on the Death Report Date and will be allocated to the funding options in the same proportion as prior to the Death Report Date. If the adjusted Contract Value is allocated to the Variable Funding Options, the beneficiary bears the investment risk. The beneficiary who continues the Contract will be granted the same rights as the owner under the original Contract, except the beneficiary cannot: - transfer ownership - make additional Purchase Payments The beneficiary may also name his/her own beneficiary ("succeeding beneficiary") and has the right to take withdrawals at any time after the Death Report Date without a withdrawal charge. The E.S.P. option is not available to a beneficiary continuing the Contract under this provision. All other fees and charges applicable to the original Contract will also apply to the continued Contract; the E.S.P. charge no longer applies. All benefits and features of the continued Contract will be based on the beneficiary's age on the Death Report Date as if the beneficiary had purchased the Contract with the adjusted Contract Value on the Death Report Date. PLANNED DEATH BENEFIT You may request that rather than receive a lump-sum death benefit, the beneficiary(ies) receive all or a portion of the death benefit proceeds either: - as a variable or fixed annuity for life or a period that does not exceed the beneficiary's life expectancy, or - under the terms of the Beneficiary Continuance provision described above. If the Beneficiary Continuance provision is selected as a planned death benefit, no surrenders will be allowed other than payments meant to satisfy minimum distribution amounts or systematic withdrawal amounts, if greater. You must make the planned death benefit request as well as any revocation of this request in writing. Upon your death, your beneficiary(ies) cannot revoke or modify this request. If the death benefit at the time we receive Due Proof of Death is less than $2,000, we will only pay a lump sum to the beneficiary. If periodic payments due under the planned death benefit election are less than $100, we reserve the right to make Annuity Payments at less frequent 37 intervals, resulting in a payment of at least $100 per year. If no beneficiary is alive when death benefits become payable, we will pay the death benefit as provided in your Contract. DEATH PROCEEDS AFTER THE MATURITY DATE If any Contract Owner or the Annuitant dies on or after the Maturity Date, the Company will pay the beneficiary a death benefit consisting of any benefit remaining under the annuity option then in effect. LIVING BENEFITS - -------------------------------------------------------------------------------- GUARANTEED MINIMUM WITHDRAWAL BENEFIT ("GMWB" OR "PRINCIPAL GUARANTEE") For an additional charge, you may elect an optional rider for your Contract that provides a Guaranteed Minimum Withdrawal Benefit, or "GMWB". A GMWB rider is designed to protect your investment from poor market performance, as long as you do not withdraw more than a certain amount from your Contract each year. AVAILABILITY AND ELIGIBILITY. We offer several different GMWB riders so that you can choose the level of benefits and costs that makes the most sense for you. This prospectus offers three different GMWB riders, and the availability of each depends on when you purchase your Contract and your state of residence. The three GMWB riders described in this prospectus are called "GMWB I", "GMWB II", and "GMWB III" ; we may refer to any one of these as GMWB. The availability of each rider is shown below.
- -------------------------------------------------------------------------------------------------------------- NAME OF RIDER: GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- ALSO CALLED: Principal Guarantee Principal Guarantee Principal Guarantee Value - -------------------------------------------------------------------------------------------------------------- AVAILABILITY: Not available for Available on or after Available on or after purchase on or after March 21, 2005 if March 21, 2005 if March 21, 2005, unless approved in your state approved in your state GMWB II is not approved in your state - --------------------------------------------------------------------------------------------------------------
CURRENTLY, YOU MAY ELECT A GMWB RIDER ONLY AT THE TIME OF YOUR INITIAL PURCHASE OF THE CONTRACT. You may not elect a GMWB rider if you have also elected the GMAB rider offered under this Contract. REMAINING BENEFIT BASE ("RBB"). For all GMWB riders, the amount of your investment that is guaranteed is called the "remaining benefit base" or "RBB." Your initial RBB is equal to your initial Purchase Payment. If you added the GMWB after the initial purchase of the Contract, the Initial RBB is the Contract Value on the date the GMWB was added. The RBB is not a lump sum guarantee, rather, it is the amount that we guarantee to return to you through a series of payments that annually do not exceed a percentage of your RBB. ANNUAL WITHDRAWAL BENEFIT ("AWB"). The annual percentage of your RBB that is available for withdrawal is called the "annual withdrawal benefit" or "AWB". Each year you may take withdrawals that do not exceed your AWB until your RBB is depleted. Each year you may take your AWB monthly, annually, or on any payment schedule you request. You may take withdrawals in any dollar amount up to your AWB without affecting your guarantee. If you choose to receive only a part of, or none of, your AWB in any given year, your AWB in any subsequent year will not be increased. In that case you are choosing to deplete your RBB over a longer period of time. 38 The AWB is a percentage of your RBB and depends on which GMWB rider you select. Your initial AWB is calculated as a percentage of the RBB immediately before your first withdrawal:
- -------------------------------------------------------------------------------------------------------------- GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- If you make your first 5% of RBB 5% of RBB 5% of RBB withdrawal before the 3rd anniversary after you purchase GMWB: - -------------------------------------------------------------------------------------------------------------- If you make your first 10% of RBB 10% of RBB 5% of RBB withdrawal on or after the 3(rd) anniversary after you purchase GMWB: - --------------------------------------------------------------------------------------------------------------
ADDITIONAL PREMIUM Currently, additional Purchase Payments serve to increase your RBB and AWB. After each Purchase Payment your new RBB equals your RBB immediately prior to the Purchase Payment plus the dollar amount of the Purchase Payment. Your new AWB is equal to the AWB immediately prior to the Purchase Payment, plus a percentage of the Purchase Payment. We use the same percentage as that used to calculate your original AWB as shown above. We reserve the right not to include additional Purchase Payments into the calculation of the RBB or AWB. WITHDRAWALS When you make a withdrawal, your AWB remains the same as long as the sum of all of your withdrawals since the most recent anniversary of your purchase or reset of GMWB (or "GMWB Anniversary"), including the current withdrawal, does not exceed your AWB immediately prior to the current withdrawal. In such case your RBB is decreased to equal the RBB immediately prior to the withdrawal, less the dollar amount of the current withdrawal. However, if you make a withdrawal so that the total of all your withdrawals since your GMWB anniversary, including the current withdrawal, exceeds your AWB immediately prior to the current withdrawal, we will recalculate both your RBB and AWB. The recalculation depends on which GMWB rider you select: IF YOU SELECT GMWB II OR GMWB III: - To recalculate your RBB, we reduce your RBB by the greater of the dollar amount of your withdrawal, or a "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal. - To recalculate your AWB, we reduce your AWB by a partial withdrawal reduction, which is equal to 1) the AWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. IF YOU PURCHASED GMWB I: - To recalculate your RBB, we reduce your RBB by a "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal. - To recalculate your AWB, we reduce your AWB by a partial withdrawal reduction, which is equal to 1) the AWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. We will waive any surrender charge on amounts that you withdraw up to your AWB on amounts up to the amount withdrawn under our Managed Distribution Program, even if such annual amount withdrawn is greater than your free withdrawal allowance. WITHDRAWAL EXAMPLES. The following examples are intended to illustrate the effect of withdrawals on your RBB and AWB, depending on which GMWB rider you select. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including the Variable Funding Options selected by you. The example does 39 not reflect the deduction of fees and charges, withdrawal charges and applicable income taxes and penalties. Assume your initial RBB is $100,000, your age is less than 70, and you take a withdrawal of $10,000 after your first GMWB Anniversary: WITHDRAWAL EXAMPLE FOR GMWB II AND GMWB III
- ------------------------------------------------------------------------------------------------------------------------- ASSUMES 10% GAIN ON INVESTMENT ASSUMES 10% LOSS ON INVESTMENT - ------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT VALUE RBB AWB (5%) VALUE RBB AWB (5%) - ------------------------------------------------------------------------------------------------------------------------- VALUES AS OF - ------------------------------------------------------------------------------------------------------------------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY PRIOR TO WITHDRAWAL $110,000 $100,000 $5,000 $90,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- PARTIAL WITHDRAWAL N/A (100,000 x [5,000 x (1- N/A (100,000 x [5,000 x (1- REDUCTION 10,000/110,000) = 90,000/100,000)] = 10,000/90,000) = 88,889/100,000)] = (PWR) 9,091 500 $11,111 $556 - ------------------------------------------------------------------------------------------------------------------------- GREATER OF PWR OR THE DOLLAR AMOUNT $10,000 $11,111 OF THE WITHDRAWAL (10,000>9,091) (11,111>10,000) - ------------------------------------------------------------------------------------------------------------------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $10,000 $500 $10,000 $11,111 $556 - ------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY AFTER WITHDRAWAL $100,000 $90,000 $4,500 $80,000 $88,889 $4,444 - -------------------------------------------------------------------------------------------------------------------------
WITHDRAWAL EXAMPLE FOR GMWB I
- ------------------------------------------------------------------------------------------------------------------------- ASSUMES 10% GAIN ON INVESTMENT ASSUMES 10% LOSS ON INVESTMENT - ------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT VALUE RBB AWB (5%) VALUE RBB AWB (5%) - ------------------------------------------------------------------------------------------------------------------------- VALUES AS OF - ------------------------------------------------------------------------------------------------------------------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY PRIOR TO WITHDRAWAL $110,000 $100,000 $5,000 $90,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY $90,909 $4,545 $88,889 $4,444 AFTER WITHDRAWAL [100,000 -- (100,000 [(5,000 [100,000 -- (100,000 [5,000 x $100,000 x10,000/110,000)] x90,909/100,000)] $80,000 x10,000/90,000)] (88,889/100,000)] - ------------------------------------------------------------------------------------------------------------------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $9,091 $455 $10,000 $11,111 $556 - -------------------------------------------------------------------------------------------------------------------------
TAX-QUALIFIED DISTRIBUTION PROGRAMS (GMWB II AND GMWB III ONLY). If you select GMWB II or GMWB III, subject to certain limitations and restrictions, your AWB will not incur a recalculation as a result of distributions taken under certain eligible Tax-Qualified Distribution Programs ("Tax-Qualified Distribution Programs"). Instead, such distributions will reduce the RBB by the amount of the withdrawal, and will not affect the AWB. For purposes of GMWB II and GMWB III, the following Tax-Qualified Distribution Programs are eligible. Only certain types of distribution methods are eligible as described below. Please consult with your tax adviser to make sure you are eligible: - Distributions intended to satisfy the required minimum distribution rules under Internal Revenue Code ("Code") Section 401(a)(9) and the Treasury Regulations promulgated thereunder, as applicable, to: - a qualified retirement plan (Code Section 401), - a tax-sheltered annuity (Code Section 403(b)), 40 - an individual retirement account (Code Sections 408(a)), - an individual retirement annuity (Code Section 408(b)), or - a qualified deferred compensation plan (Code Section 457). Required minimum distribution must be calculated using the Uniform Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-2) and/or the Joint and Last Survivor Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-3), and for distributions where the employee (owner) dies before the entire interest is distributed as described in Code Section 401(a)(9)(B)(iii) calculated using the Single Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-1), as appropriate (each table as in effect as of January 1, 2004). - Distributions intended to satisfy the exception under Code Section 72(s)(2) to the required minimum distribution rules which apply after the death of the holder of a nonqualified annuity contract provided under Code Section 72(s)(1) for certain amounts payable over the life of a designated beneficiary; - Distributions intended to satisfy the exception under Code Section 72(t)(2)(A)(iv) from the 10% additional tax on early distributions from qualified retirement plans imposed by Code Section 72(t)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and his designated beneficiary, provided, however, the amount of the substantially equal periodic payments must be calculated under the required minimum distribution method set forth in the Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Revenue Ruling 2002-62, 2002-42 I.R.B. 710 (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program); or - Distributions intended to satisfy the exception under Code Section 72(q)(2)(D) from the 10% additional tax on early distributions from nonqualified annuity contracts imposed by Code Section 72(q)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the Beneficiary or the joint lives (or joint life expectancies) of such Beneficiary and his designated beneficiary, provided, however, the amount of the substantially equal periodic payment must be calculated under the required minimum distribution method set forth in Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Internal Revenue Bulletin 2004-9, Notice 2004-15, page 526. (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program). You are subject to the following limitations if you are taking distributions under a Tax-Qualified Distribution Program: - YOU MUST ENROLL IN OUR MANAGED DISTRIBUTION PROGRAM. If you do not enroll or if you cancel your enrollment, you can continue to make withdrawals under your GMWB rider, however your RBB and AWB may be subject to a recalculation. Under our Managed Distribution Program, you select the frequency of payments. You may change the frequency of your payments only once every two years after your GMWB Anniversary, and you may only make the change during the 30-day period after your GMWB Anniversary. At the time you purchase GMWB, your initial frequency of payment must be annual if you did not take distributions pursuant to your Tax-Qualified Distribution Program at your previous financial institution, unless you turn age 70 1/2 before the first GMWB anniversary. You are advised to take your required distributions prior to purchasing GMWB in order to have the choice of taking your distributions on a monthly, quarterly, semi-annual or annual basis. If you do not take your distribution before purchasing GMWB, you will be limited to taking annual distributions for the first two Contract Years after which time you can choose an alternate mode of distribution. - ANY WITHDRAWALS OUTSIDE OF THE PROGRAM MAY DECREASE YOUR BENEFIT. All withdrawals under your Contract must be made pursuant to the Tax- Qualified Distribution Program during any 12-month period after an anniversary of your purchase of GMWB (a "GMWB Year"). If during any GMWB Year you take any additional withdrawals that are not made pursuant to the Program, you can continue to make withdrawals 41 under your GMWB rider, however for the remainder of the GMWB Year your RBB and AWB may be subject to a partial withdrawal reduction. To avoid any partial withdrawal reduction, all withdrawals under your Contract must be made pursuant to your Tax-Qualified Distribution Program. RESET (GMWB I AND GMWB II ONLY). If you select GMWB I or GMWB II, you may choose to reset your RBB starting with the 5th year anniversary date of your GMWB purchase. In accordance with the terms of the rider we have established the following procedures for resets. If you elect to reset within 30 days prior to the end of the 5th contract year, your new RBB will be reset to equal your current Contract Value. If you do not reset on the 5th year anniversary, you will have the opportunity to elect to reset during the 30-day period prior to each anniversary following the date of your 5th year anniversary of your GMWB purchase. In the event that you elect a reset you will be eligible to reset your RBB again provided that 5 contract years have elapsed since the most recent reset, so long as your election is made during the 30-day period prior to the anniversary date of your GMWB purchase. Each time you reset your RBB, your new AWB will equal a percentage of your new RBB. The percentage used is the same percentage used to calculate your AWB before the reset. If you are age 95 and are taking withdrawals under a Tax-Qualified Distribution Program, you may not reset if you purchased GMWB II. Depending on your Contract Value and the current fee for GMWB, it may not be beneficial to reset your RBB. Generally, it may be beneficial to reset your RBB if your Contract Value exceeds your RBB. However, the charge may increase if you elect to reset the RBB. (In such cases, the charge will never exceed the guaranteed maximum charge.) Further, if you reset your RBB, your new AWB may be higher or lower than your current AWB. In addition, the length of time over which you can expect to receive your RBB will be reset. INVESTMENT RESTRICTIONS (GMWB II AND GMWB III ONLY) We reserve the right to restrict allocations to a Variable Funding Option or limit the percentage of Contract value that may be allocated to a Variable Funding Option at any time. If we do so we would provide you with asset allocation requirements, and we reserve the right to require periodic rebalancing of Contract value allocated to Variable Funding Options according to specified percentages. We will provide no less than 30 days advanced written notice if we exercise our right to restrict or limit allocations to a Variable Funding Option and/or require periodic rebalancing between Variable Funding Options. Our ability to restrict allocations to a Variable Funding Option may be different depending on your state. If we restrict allocations to a Variable Funding Option, as of the effective date of the restriction, we will no longer allow additional Purchase Payments to be applied, or transfers of Contract value to be allocated into the restricted Variable Funding Option. Any Contract value previously allocated to a restricted Variable Funding Option will not be subject to the restriction. If we impose a limit on the percentage of Contract value allocated to a Variable Funding Option, as of the effective date of the restriction, we will impose the limit on all subsequent allocations. GMWB CHARGE. The charge for your GMWB rider is different depending on which version of GMWB you choose. For all GMWB riders, the charge is deducted each business day from amounts held in each Variable Funding Option. The current charge for each rider, on an annual basis, is shown below. Your current charge will not change unless you reset your benefits, at which time we may modify the charge. In such case the charge will never exceed 1.00%.
- -------------------------------------------------------------------------------------------------------------- GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- Current Annual Charge 0.40% 0.50% 0.25% - -------------------------------------------------------------------------------------------------------------- Maximum Annual Charge After a 1.00% 1.00% N/A Reset - --------------------------------------------------------------------------------------------------------------
MAXIMUM RBB. Although we have no current plans to do so, in the future we may impose a maximum RBB. If we do, we would stop including additional Purchase Payments into the calculation of your RBB. If we impose a maximum RBB for Purchase Payments or reset, the maximum RBB will never be less than the cumulative Purchase Payments to which we have previously consented. Currently you must obtain our consent to purchase any RBB over $1 million. Purchase Payments under $1 million are not subject to a maximum RBB. 42 TERMINATION. Once you purchase GMWB I, you cannot cancel it. If you select GMWB II or GMWB III, you may terminate your rider at any time after the 5(th) anniversary of your purchase of GMWB. Once you terminate a GMWB III rider, you cannot re-elect it. You must request your termination in writing. All GMWB riders terminate automatically when you reach the maturity date of your Contract, if your Contract is assigned, or if the rider is exchanged for a similar rider offered by us. OTHER INFORMATION ABOUT GMWB. If your Contract Value reaches zero, and you have purchased this benefit, the following will occur: - The AWB will continue to be paid to you until the RBB is depleted, not more frequently than monthly. Upon your death, your beneficiary will receive these payments. No other death benefit or optional benefit, if any, will be paid. - The total annual payment amount will equal the AWB and will never exceed your RBB, and - We will no longer accept subsequent Purchase Payments into the Contract. If a spouse or beneficiary continues this Contract upon your death, and you had elected GMWB, all terms and conditions of this benefit would apply to the new owner. Please refer to the Death Benefit section for information on how GMWB may impact your death benefit. COMPARISON OF IMPORTANT DIFFERENCES AMONG THE GMWB RIDERS The following chart may help you decide which version of GMWB is best for you.
- -------------------------------------------------------------------------------------------------------------- GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- AWB 5% of RBB if first 5% of RBB if first 5% of RBB withdrawal before 3(rd) withdrawal before 3(rd) anniversary 10% of RBB anniversary 10% of RBB if first withdrawal on if first withdrawal on or after 3(rd) or after 3(rd) anniversary anniversary - -------------------------------------------------------------------------------------------------------------- ANNUAL CHARGE 0.40% 0.50% 0.25% - -------------------------------------------------------------------------------------------------------------- RESET Yes Yes No - -------------------------------------------------------------------------------------------------------------- CAN I CANCEL MY GMWB? No Yes, after the 5(th) Yes, after the 5(th) anniversary of GMWB anniversary of GMWB purchase purchase - -------------------------------------------------------------------------------------------------------------- INVESTMENT RESTRICTIONS No Yes Yes - -------------------------------------------------------------------------------------------------------------- WAIVER OF RECALCULATION OF AWB No Yes Yes FOR DISTRIBUTIONS FROM TAX- QUALIFIED PLANS - --------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM ACCUMULATION BENEFIT ("GMAB") We offer a Guaranteed Minimum Accumulation Benefit rider ("GMAB Rider") for an additional charge. The GMAB Rider guarantees that your Contract Value will not be less than a minimum amount at the end of a specified number of years. If your Contract Value is less than the minimum guaranteed amount on the Rider Maturity Date, we will apply additional amounts to increase your Contract Value so that it is equal to the guaranteed amount. If you elect the GMAB Rider, we require that you allocate your Contract Value according to certain limitations and restrictions, and agree to periodic rebalancing of your Contract Value. Currently, the GMAB Rider may only be elected at the time that you purchase your Contract. We may make the GMAB Rider available to Contracts after their effective date at a later date subject to certain additional terms and restrictions. You may not elect the GMAB Rider if you have also elected the GMWB Rider offered under the Contract. 43 BENEFIT DESCRIPTION & KEY TERMS If you elect the GMAB Rider, we guarantee that if your Contract Value is less than your Benefit Base (defined below) on the Rider Maturity Date (defined below), we will apply additional amounts to your Contract to increase your Contract Value so that it is equal to the Benefit Base. Any additional amounts that we apply to your Contract to increase the Contract Value to equal the Benefit Base will be allocated to the money market Subaccount on the Rider Maturity Date. Any such additional amounts will be treated as earnings under your Contract, and will not be subject to a withdrawal charge once they are applied to your Contract. If your Contract Value is equal to or greater than the Benefit Base on the Rider Maturity Date, the GMAB Rider will terminate and no additional amounts will be applied to your Contract. Benefit Base: The Benefit Base is equal to the Base Calculation Amount on the Rider Maturity Date and represents the minimum Contract Value that we guarantee on such date. We do not guarantee the Benefit Base on any day other than the Rider Maturity Date. The Benefit Base will not be available for withdrawal nor will it be used to calculate any benefits under the Contract prior to the Rider Maturity Date. The Benefit Base can never be less than zero. Base Calculation Amount: We calculate the Base Calculation Amount to determine the Benefit Base. On the Rider Effective Date, the Base Calculation Amount is equal to your initial Purchase Payment. Aggregate Purchase Payments over $1 million are subject to our consent, including our consent to limit the Base Calculation Amount applicable to your GMAB Rider. We may impose a maximum Base Calculation Amount (and thereby, a maximum Benefit Base) in the future for Contract Owners who elect the GMAB Rider, but the maximum Base Calculation Amount will never be less than the Base Calculation Amount to which we have previously consented. We reserve the right to restrict increases in your maximum Base Calculation Amount based on subsequent Purchase Payments if such Purchase Payments would cause you Base Calculation Amount to be greater than our maximum Base Calculation Amount. We will not limit or impose a maximum Base Calculation Amount if your aggregate Purchase Payments are under $1 million. If you purchase more than one contract issued by the Company in the same calendar year and elect the GMAB Rider on each contract, the $1,000,000 Benefit Base maximum may be applied to the aggregate Benefit Base for all contracts. State variations may apply. The Base Calculation Amount will not be used to calculate any benefits under the Contract, other than the GMAB Rider Liquidity Option described below. The Base Calculation Amount can never be less than zero. The Base Calculation Amount may change between the Rider Effective Date and Rider Maturity Date if you make additional Purchase Payments or request withdrawals from your Contract. - If you make an additional Purchase Payment(s) within 12 months after the Rider Effective Date, we will increase the Base Calculation Amount by the amount of the Purchase Payment. If you make an additional Purchase Payment(s) more than 12 months after the Rider Effective Date, we will not increase the Base Calculation Amount; however your Contract Value will increase, reflecting the amount of the Purchase Payment. Therefore, Purchase payments made more than 12 months after the Rider Effective Date may have a significant impact on whether a benefit is due under the GMAB Rider. Even if Purchase Payments made prior to and during the 12-month period after the Rider Effective Date lose significant value, if on the Rider Maturity Date the Contract Value, which includes all Purchase Payments, is equal to or greater than the Benefit Base, which includes all the Purchase Payments prior to or during that 12-month period, then no benefit is due. You should consider this prior to making an additional Purchase Payment more than 12 months after the Rider Effective Date. The GMAB Rider may not be appropriate for you if you anticipate making Purchase Payments after the 12-month period. - If you request a partial withdrawal, we will decrease the Base Calculation Amount in effect as of the date of the request by the actual dollar amount of the withdrawal or the Partial Withdrawal Reduction amount, whichever is greater. The Partial Withdrawal Reduction amount is equal to the Base Calculation Amount in effect immediately prior to the reduction for the partial withdrawal multiplied by the actual amount of the partial withdrawal divided by the Contract Value immediately prior to the partial withdrawal. When determining the impact of a partial withdrawal on the Base Calculation Amount, the actual amount of the partial withdrawal will include any withdrawal charges and taxes that were deducted at the time of the partial withdrawal. 44 Rider Maturity Date: The Rider Maturity Date is the anniversary of the Rider Effective Date that corresponds to the number of years you elect as the Rider Period (described below). Rider Period: The Rider Period is the number of years you select between the Rider Effective Date and the Rider Maturity Date. Currently, we only offer a Rider Period of ten (10) years. We may offer Rider Periods of lesser or greater duration available in the future, subject to additional terms, conditions and limitations. EXAMPLES OF BENEFIT BASE/BASE CALCULATION AMOUNT Below are examples of how we determine the Benefit Base and Base Calculation Amount, as well as examples showing the impact of subsequent Purchase Payments and partial withdrawals. For purposes of each example below, assume that you elect the GMAB Rider on the effective date of your Contract and that your initial Purchase Payment is $100,000. The example below illustrates the impact of the guarantee provided under the GMAB Rider assuming that your Contract Value increases or decreases during the Rider Period. EXAMPLES OF GMAB RIDER ON THE RIDER MATURITY DATE
- ------------------------------------------------------------------------------------------------------------------- INCREASING CONTRACT VALUE DECLINING CONTRACT VALUE - ------------------------------------------------------------------------------------------------------------------- BASE BASE CONTRACT CALCULATION CONTRACT CALCULATION VALUE AMOUNT BENEFIT BASE VALUE AMOUNT BENEFIT BASE - ------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 Not Applicable $110,000 $100,000 Not Applicable - ------------------------------------------------------------------------------------------------------------------- VALUE AS OF RIDER MATURITY DATE $110,000 $100,000 $100,000 $90,000 $100,000 $100,000 - ------------------------------------------------------------------------------------------------------------------- AMOUNT APPLIED TO CONTRACT VALUE DUE TO GMAB RIDER $0(1) $10,000(2) - -------------------------------------------------------------------------------------------------------------------
(1) If your Contract Value on the GMAB Rider Maturity Date is equal to or greater than the Benefit Base, we will not apply any additional amounts to your Contract Value. Your GMAB Rider will terminate and we will no longer deduct the annual charge for the rider. (2) If your Contract Value on the GMAB Rider Maturity Date is less than the Benefit Base, we will apply additional amounts to your Contract Value so that it is equal to the Benefit Base. The additional amount will be added to the money market Subaccount. The example below illustrates the impact of making an additional $10,000 Purchase Payment while the GMAB Rider is in effect, specifically the different manner in which we will treat Purchase Payments for purpose of determining the Base Calculation Amount based on when the Purchase Payment is made. EXAMPLES OF ADDITIONAL PURCHASE PAYMENTS -- IMPACT ON BASE CALCULATION AMOUNT
- ------------------------------------------------------------------------------------------------------------------- ADDITIONAL PURCHASE PAYMENT WITHIN 12 MONTHS ADDITIONAL PURCHASE PAYMENT AFTER 12 MONTHS - ------------------------------------------------------------------------------------------------------------------- BASE BASE CONTRACT PURCHASE CALCULATION CONTRACT PURCHASE CALCULATION VALUE PAYMENT AMOUNT VALUE PAYMENT AMOUNT - ------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 - ------------------------------------------------------------------------------------------------------------------- VALUE BEFORE ADDITIONAL PURCHASE PAYMENT $110,000 Not Applicable $100,000 $110,000 Not Applicable $100,000 - ------------------------------------------------------------------------------------------------------------------- VALUE AFTER ADDITIONAL PURCHASE PAYMENT $120,000 $10,000 $110,000 $120,000 $10,000 $100,000 - -------------------------------------------------------------------------------------------------------------------
The example below illustrates the impact of making a $10,000 partial withdrawal while the GMAB Rider is in effect, specifically the difference in the manner in which a partial withdrawal affects your Base Calculation Amount in an increasing market versus a decreasing market. The example assumes that the partial withdrawal does not qualify under the GMAB Rider Liquidity Option described below. 45 EXAMPLES OF PARTIAL WITHDRAWALS -- IMPACT ON BASE CALCULATION AMOUNT
- --------------------------------------------------------------------------------------------------------------------------- ASSUMING INCREASING CONTRACT VALUE - --------------------------------------------------------------------------------------------------------------------------- BASE REDUCTION TO BASE CONTRACT CALCULATION PARTIAL WITHDRAWAL PARTIAL SURRENDER CALCULATION VALUE AMOUNT AMOUNT REDUCTION AMOUNT - --------------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY PRIOR TO PARTIAL WITHDRAWAL $110,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY [100,000 x FOLLOWING PARTIAL 10,000/110,000] = WITHDRAWAL $100,000 $90,000 $10,000 $9,091 $10,000 - ---------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------- ASSUMING DECLINING CONTRACT VALUE - --------------------------------------------------------------------------------------------------------------------------- BASE REDUCTION TO BASE CONTRACT CALCULATION PARTIAL WITHDRAWAL PARTIAL SURRENDER CALCULATION VALUE AMOUNT AMOUNT REDUCTION AMOUNT - --------------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY PRIOR TO PARTIAL WITHDRAWAL $90,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY [100,000 x FOLLOWING PARTIAL 10,000/90,000] = WITHDRAWAL $80,000 $88,889 $10,000 $11,111 $11,111 - ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT LIMITATIONS/RESTRICTIONS/REBALANCING If you elect the GMAB Rider, your Contract will be subject to additional limitations and restrictions on your right to allocate Contract Value among the Subaccounts, your right to request transfers between Subaccounts and your right to allocate Purchase Payments to Subaccounts. We classify each Subaccount as Class A or Class B based on our assessment of the relative risk and volatility of the Underlying Fund in which the Subaccount invests. Subaccounts that we classify as "Class A" will generally invest in Underlying Funds that invest primarily in equity securities, or securities that we believe will approximate the relative volatility and relative risk of equity securities. Subaccounts that we classify as "Class B" will generally invest in Underlying Funds that invest primarily in debt securities or cash. A Subaccount that invests in an Underlying Fund that invests in a combination of equity securities and debt securities will be classified as either Class A or Class B. We have sole discretion to determine whether a Subaccount is classified as Class A or Class B. We reserve the right to change the classification of a Subaccount from Class A to Class B or from Class B to Class A. Any change in Subaccount classification will apply to Contract Owners who elect the GMAB Rider after the effective date of the change in classification, as well as existing Contract Owner who have the GMAB Rider in force as of the effective date of the change in classification. You will be required to establish a personal allocation profile at the time that you elect the GMAB Rider specifying the Subaccounts and the allocation percentages for each Subaccount in which you intend to allocate your initial Purchase Payment and any credits that we apply to your initial Purchase Payment. Your personal allocation profile will remain in effect for any additional Purchase Payments you make until you elect to change it. Your personal allocation profile may include any combination of Class A and Class B Subaccounts so long as the overall allocation does not violate the limitations and restrictions described below. You may only allocate up to 80% of your initial Purchase Payment and any credits that we apply to your initial Purchase Payment to Subaccounts that we classify as Class A. You must allocate 20% or more of your initial Purchase Payment and any credits that we apply to your initial Purchase Payment to Subaccounts that we classify as Class B. 46 Any time that you request a transfer of Contract Value between Subaccounts or make an additional Purchase Payment, you must comply with the following limitations or restrictions: - You may allocate your Contract Value in one or more of the Class A Subaccounts that you choose; however, you may only allocate up to 80% of your Contract Value to Subaccounts that we classify as Class A. - You may allocate your Contract Value in one or more of the Class B Subaccounts that you choose; however, you must allocate 20% or more of your Contract Value to Subaccounts that we classify as Class B. - If you make an additional Purchase Payment, you can only allocate up to 80% of the Purchase Payment to Subaccounts that we classify as Class A. - If you make an additional Purchase Payment, you must allocate 20% or more of the Purchase Payment to Subaccounts that we classify as Class B. Any request to transfer Contract Value or allocate subsequent Purchase Payments that would violate these limitations and restrictions will be rejected. You will be required to submit a new request that complies with the applicable limitation or restriction. We will not be responsible for any financial impact caused by delays in processing your transaction if your request is rejected because it does not comply with an applicable limitation or restriction. Rebalancing: On a quarterly basis, we will rebalance your Contract Value according to the current personal allocation profile that you chose for Class A and Class B Subaccounts. Unless you instruct us otherwise, we will rebalance your Contract Value in each Class A and Class B Subaccount, respectively, according to the relative proportions indicated in your personal allocation profile. Below is a list of the Subaccounts that are currently classified as Class B Subaccounts. All remaining Subaccounts offered under the Contract are classified as Class A Subaccounts.
CLASS B SUBACCOUNTS/UNDERLYING FUNDS -------------------------------------------------------- LEGG MASON PARTNERS VARIABLE INCOME TRUST Legg Mason Partners Variable Adjustable Rate Income Portfolio MET INVESTORS SERIES TRUST -- CLASS A BlackRock High Yield Portfolio Pioneer Strategic Income Portfolio PIMCO Inflation Protected Bond Portfolio METROPOLITAN SERIES FUND, INC. -- CLASS A BlackRock Bond Income Portfolio BlackRock Money Market Portfolio Western Asset Management U.S. Government Portfolio PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS Total Return Portfolio
GMAB RIDER LIQUIDITY OPTION During the 90-day period prior to the 5th anniversary of the Rider Effective Date, you may request a partial withdrawal of up to 15% of the Base Calculation Amount immediately prior to the request. Under this option, we will reduce the Base Calculation Amount by the dollar amount of the withdrawal so long as the withdrawal does not exceed the amount available for withdrawal under this provision. If you request a partial withdrawal greater than 15% of the Base Calculation Amount, we will reduce the Base Calculation Amount by the dollar amount of the withdrawal for amounts withdrawn up to the 15% limit and, for the excess amount, we will reduce the Base Calculation Amount as described above under the sub-section "Base Calculation Amount." Any partial withdrawal you make under this provision will be made free of withdrawal charges that would otherwise apply under the terms 47 of your Contract. Additionally, any withdrawals taken under this feature will reduce your Free Withdrawal Allowance under the Contract. This feature can only be exercised once before the Rider Maturity Date and must occur during the 90-day period prior to the 5th anniversary of the Rider Effective Date. We reserve the right to require you to exercise your rights under this provision on the anniversary of your Rider Effective Date. You must notify us in a form acceptable to us that you are exercising your rights under this GMAB Rider Liquidity Option. CANCELLATION OF THE GMAB RIDER You may elect to cancel the GMAB Rider at any time after the 5th anniversary of the GMAB Rider Effective Date. Upon cancellation, we will no longer deduct the annual charge for the GMAB Rider. Upon cancellation of the GMAB Rider, all rights and benefits under the GMAB Rider will cease. Upon cancellation, we will no longer apply any of the investment limitations and restrictions described above. GMAB Rider Exchange Option -- If, during the 90-day period following the 5th anniversary of the Rider Effective Date, your Contract Value is greater than the Base Calculation Amount, you may elect to cancel the GMAB Rider and simultaneously elect either a new GMAB Rider or a GMWB Rider. You will be required to meet any eligibility requirements that apply to each rider at the time you make the election. Exchange for New GMAB Rider: If you elect to cancel the GMAB Rider and elect the GMAB Rider that we make available under this Rider Exchange Option, the Rider Effective Date for your new GMAB Rider will be the date we receive your request in good order. Your new GMAB Rider will be subject to a new Rider Maturity Date. The Benefit Base of your prior GMAB Rider will not apply to the new GMAB Rider. Your Contract Value as of the date you elect to exchange your GMAB Rider will be used to determine your initial Base Calculation Amount for the new rider. The new GMAB Rider will be subject to a new charge that may be higher or lower than the charge you paid for your original GMAB Rider. The GMAB Rider that we make available under this Rider Exchange Option will always feature a ten year Rider Period and may include other Rider Period durations. Exchange for GMWB Rider: If you elect to cancel the GMAB Rider and elect the GMWB Rider that we make available under this Rider Exchange Option, the Rider Effective Date for your GMWB Rider will be the date we receive your request. The GMWB Rider that we make available under this Rider Exchange Option will feature a 10% minimum annual withdrawal amount. The GMWB Rider will be subject to the charge then in effect for a GMWB Rider that is offered under this Rider Exchange Option. TERMINATION The GMAB Rider will terminate on the earliest to occur of: (1) the Rider Maturity Date; (2) the date you elect to begin receiving Annuity Payments under the Contract; (3) the date you fully surrender your Contract; (4) the date you elect to cancel the GMAB Rider (including assignments); (5) the date we receive Due Proof of Death if the surviving spouse or beneficiary does not elect to continue the Contract (if allowed); or (6) the date the GMAB Rider is cancelled and replaced with a new GMAB Rider or GMWB Rider under the Rider Exchange Option. The annual charge for the GMAB Rider will no longer be deducted and all guarantees will cease when the rider is terminated. Further, any investment limitations and restrictions will no longer apply after the GMAB Rider is terminated. If the GMAB Rider is terminated before the Rider Maturity Date, the Benefit Base will not be paid. CHARGE FOR GMAB If you elect the GMAB Rider, we will deduct an additional charge on each business day that is equal to an annual charge of 0.50% from your Contract Value invested in the Subaccounts. The charge will be applied and will not change from the Rider Effective Date until the Rider Maturity Date unless the rider is cancelled or terminates prior to such date. If you elect to terminate the GMAB Rider prior to the Rider Maturity Date, the charge will no longer be deducted. If you elect to exchange this GMAB Rider and elect a new GMAB Rider under the Rider Exchange Option (described above), the current charge in effect for the GMAB rider will be applied, which may be higher or lower than the charge you paid for this rider. 48 ADDITIONAL CONSIDERATIONS - Your Contract cannot have any outstanding loans if you elect the GMAB Rider. Further, you may not request a loan from your Contract if you have previously elected the GMAB Rider. - If you die while the GMAB Rider is in effect, and your surviving spouse or Beneficiary elects to continue the Contract under the spousal contract continuance or beneficiary contract continuance provision, then the GMAB Rider will remain in effect and will continue until the Rider Maturity Date. - Any DCA Program that is in effect while the GMAB Rider is in effect must meet the investment limitations and restrictions of the GMAB Rider, as described above. In addition, you may not request a DCA Program that makes transfers from Class B Subaccounts to Class A Subaccounts. - If you are expecting to request withdrawals from your Contract, including withdrawals intended to satisfy required minimum distribution requirements, the impact of such withdrawals on the guarantees provided under the GMAB Rider will make the rider less valuable. THE ANNUITY PERIOD - -------------------------------------------------------------------------------- MATURITY DATE Under the Contract, you can receive regular payments ("Annuity Payments"). You can choose the month and the year in which those payments begin ("Maturity Date"). You can also choose among payout options or elect a lump sum distribution. While the Annuitant is alive, you can change your selection any time up to the Maturity Date. Annuity Payments will begin on the Maturity Date stated in the Contract unless (1) you fully surrendered the Contract; (2) we paid the proceeds to the beneficiary before that date; or (3) you elected another date. Annuity Payments are a series of periodic payments (a) for life; (b) for life with a minimum number of payments assured; (c) for the joint lifetime of the Annuitant and another person, and thereafter during the lifetime of the survivor; or (d) for a fixed period. We may require proof that the Annuitant is alive before we make Annuity Payments. Not all options may be available in all states. Please be aware that once the Contract is annuitized, you are ineligible to receive the death benefit you have selected and any living benefit rider is terminated. You may choose to annuitize at any time after the first Contract Date anniversary. Unless you elect otherwise, the Maturity Date will be the Annuitant's 90(th) birthday for Non-qualified Contracts and the Annuitant's 70(th) birthday for Qualified Contracts or ten years after the effective date of the Contract, if later (this requirement may be changed by us). At least 30 days before the original Maturity Date, you may elect to extend the Maturity Date to any time prior to the Annuitant's 85th birthday for Non- qualified Contracts or, for Qualified Contracts, to a later date with our consent. You may use certain annuity options taken at the Maturity Date to meet the minimum required distribution requirements of federal tax law, or you may use a program of withdrawals instead. These mandatory distribution requirements take effect generally upon the death of the Contract Owner, or with certain Qualified Contracts upon either the later of the Contract Owner's attainment of age 70 1/2 or year of retirement; or the death of the Contract Owner. You should seek independent tax advice regarding the election of minimum required distributions. ALLOCATION OF ANNUITY You may elect to receive your Annuity Payments in the form of a variable annuity, a fixed annuity, or a combination of both. If, at the time Annuity Payments begin, you have not made an election, we will apply your Cash Surrender Value to provide an annuity funded by the same funding options as you have selected during the accumulation period. At least 30 days before the Maturity Date, you may transfer the Contract Value among the funding options in order to change the basis on which we will determine Annuity Payments. (See "Transfers.") VARIABLE ANNUITY You may choose an annuity payout that fluctuates depending on the investment experience of the Variable Funding Options. We determine the number of Annuity Units credited to the Contract by dividing the first monthly Annuity 49 Payment attributable to each Variable Funding Option by the corresponding Accumulation Unit value as of 14 days before the date Annuity Payments begin. We use an Annuity Unit to measure the dollar value of an Annuity Payment. The number of Annuity Units (but not their value) remains fixed during the annuity period. DETERMINATION OF FIRST ANNUITY PAYMENT. Your Contract contains the tables we use to determine your first monthly Annuity Payment. If you elect a variable annuity, the amount we apply to it will be the Cash Surrender Value as of 14 days before the date Annuity Payments begin, less any applicable premium taxes not previously deducted. The amount of your first monthly payment depends on the annuity option you elected and the Annuitant's adjusted age. Your Contract contains the formula for determining the adjusted age. We determine the total first monthly Annuity Payment by multiplying the benefit per $1,000 of value shown in the Contract tables by the number of thousands of dollars of Contract Value you apply to that annuity option. The Contract tables factor in an assumed daily net investment factor of 3.0%. We call this your net investment rate. Your net investment rate of 3% corresponds to an annual interest rate of 3%. This means that if the annualized investment performance, after expenses, of your Variable Funding Options is less than 3%, then the dollar amount of your variable Annuity Payments will decrease. However, if the annualized investment performance, after expenses, of your Variable Funding Options is greater than 3%, then the dollar amount of your variable Annuity Payments will increase. DETERMINATION OF SECOND AND SUBSEQUENT ANNUITY PAYMENTS. The dollar amount of all subsequent Annuity Payments changes from month to month based on the investment experience, as described above, of the applicable funding options. The total amount of each Annuity Payment will equal the sum of the basic payments in each funding option. We determine the actual amounts of these payments by multiplying the number of Annuity Units we credited to each funding option by the corresponding Annuity Unit value as of the date 14 days before the date the payment is due. FIXED ANNUITY You may choose a fixed annuity that provides payments that do not vary during the annuity period. We will calculate the dollar amount of the first fixed Annuity Payment as described under "Variable Annuity," except that the amount we apply to begin the annuity will be your Cash Surrender Value as of the date Annuity Payments begin. Payout rates will not be lower than that shown in the Contract. If it would produce a larger payment, the first fixed Annuity Payment will be determined using the Annuity Tables in effect on the Maturity Date. PAYMENT OPTIONS - -------------------------------------------------------------------------------- ELECTION OF OPTIONS While the Annuitant is alive, you can change your annuity option selection any time up to the Maturity Date. Once Annuity Payments have begun, no further elections are allowed. During the Annuitant's lifetime, if you do not elect otherwise before the Maturity Date, we will pay you (or another designated payee) the first of a series of monthly Annuity Payments based on the life of the Annuitant, in accordance with Annuity Option 2 (Life Annuity with 120 monthly payments assured). For certain Qualified Contracts, Annuity Option 4 (Joint and Last Survivor Life Annuity -- Annuity Reduced on Death of Primary Payee) will be the automatic option as described in the Contract. (See "Annuity Options.") The minimum amount that can be placed under an annuity option will be $2,000 unless we agree to a lesser amount. If any monthly periodic payment due is less than $100, the Company reserves the right to make payments at less frequent intervals, or to pay the Contract Value in a lump-sum. On the Maturity Date, we will pay the amount due under the Contract in accordance with the payment option that you select. You may choose to receive a single lump-sum payment. You must elect an option in writing, in a form satisfactory to the Company. Any election made during the lifetime of the Annuitant must be made by the Contract Owner. 50 ANNUITY OPTIONS Subject to the conditions described in "Election of Options" above, we may pay all or any part of the Cash Surrender Value under one or more of the following annuity options. Payments under the annuity options are generally made on a monthly basis. We may offer additional options. Option 1 -- Life Annuity -- No Refund. The Company will make Annuity Payments during the lifetime of the Annuitant ending with the last payment before death. This option offers the maximum periodic payment, since there is no assurance of a minimum number of payments or provision for a death benefit for beneficiaries. Option 2 -- Life Annuity with 120, 180 or 240 Monthly Payments Assured. The Company will make monthly Annuity Payments during the lifetime of the Annuitant, with the agreement that if, at the death of that person, payments have been made for less than 120, 180 or 240 months, as elected, we will continue making payments to the beneficiary during the remainder of the period. Option 3 -- Joint and Last Survivor Life Annuity -- No Refund. The Company will make regular Annuity Payments during the lifetime of the Annuitant and a second person. When either person dies, we will continue making payments to the survivor. No further payments will be made following the death of the survivor. Option 4 -- Joint and Last Survivor Life Annuity -- Annuity Reduced on Death of Primary Payee. The Company will make Annuity Payments during the lifetimes of the Annuitant and a second person. You will designate one as primary payee, and the other will be designated as secondary payee. On the death of the secondary payee, the Company will continue to make monthly Annuity Payments to the primary payee in the same amount that would have been payable during the joint lifetime of the two persons. On the death of the primary payee, the Company will continue to make Annuity Payments to the secondary payee in an amount equal to 50% of the payments, which would have been made during the lifetime of the primary payee. No further payments will be made once both payees have died. Option 5 -- Payments for a Fixed Period without Life Contingency. We will make periodic payments for the period selected. This option may not satisfy the minimum required distribution rules for Qualified Contracts. Consult a tax adviser before electing this option. Option 6 -- Other Annuity Options. We will make any other arrangements for Annuity Payments as may be mutually agreed upon. VARIABLE LIQUIDITY BENEFIT This benefit is only offered with the annuity option "Payments for a Fixed Period without Life Contingency." At any time after annuitization and before death, the Contract Owner may surrender and receive a payment equal to (A) minus (B), where (A) equals the present value of remaining certain payments, and (B) equals a withdrawal charge not to exceed the maximum withdrawal charge rate shown on the specifications page of the Contract multiplied by (A). The interest rate used to calculate the present value is a rate 1% higher than the Assumed (Daily) Net Investment Factor used to calculate the Annuity Payments. The remaining period certain payments are assumed to be level payments equal to the most recent period certain payment prior to the request for this liquidity benefit. A withdrawal charge is not imposed if the surrender is made after the expiration of the withdrawal charge period shown on the specifications page of the Contract. MISCELLANEOUS CONTRACT PROVISIONS - -------------------------------------------------------------------------------- RIGHT TO RETURN You may return the Contract for a full refund of the Contract Value plus any Contract charges and premium taxes you paid (but not any fees and charges the Underlying Fund assessed) within ten days after you receive it (the "right to return period"). You bear the investment risk of investing in the Variable Funding Options during the right to return period; therefore, the Contract Value we return may be greater or less than your Purchase Payment. 51 If you purchase the Contract as an Individual Retirement Annuity, and return it within the first seven days after delivery, or longer if your state law permits, we will refund your Purchase Payment in full; during the remainder of the right to return period, we will refund the Contract Value (including charges). We will determine the Contract Value following the close of the business day on which we receive your Contract and a Written Request for a refund. Where state law requires a different period, or the return of Purchase Payments or other variations of this provision, we will comply. Refer to your Contract for any state-specific information. TERMINATION We reserve the right to terminate the Contract on any business day if your Contract Value as of that date is less than $2,000 and you have not made Purchase Payments for at least two years, unless otherwise specified by state law. Accordingly, no Contract will be terminated due solely to negative investment performance. Termination will not occur until 31 days after we have mailed notice of termination to your last known address and to any assignee of record. If we terminate the Contract, we will pay you the Cash Surrender Value less any applicable taxes. In certain states, we may be required to pay you the Contract Value. Federal tax law may impose additional restrictions on our right to terminate your traditional IRA, Roth IRA or other Qualified Contract. REQUIRED REPORTS As often as required by law, but at least once in each Contract Year before the due date of the first Annuity Payment, we will furnish a report showing the number of Accumulation Units credited to the Contract and the corresponding Accumulation Unit value(s) as of the report date for each funding option to which the Contract Owner has allocated amounts during the applicable period. The Company will keep all records required under federal and state laws. SUSPENSION OF PAYMENTS The Company reserves the right to suspend or postpone the date of any payment or determination of values on any business day (1) when the New York Stock Exchange ("the Exchange") is closed; (2) when trading on the Exchange is restricted; (3) when an emergency exists, as determined by the SEC, so that the sale of securities held in the Separate Account may not reasonably occur, or so that the Company may not reasonably determine the value the Separate Account's net assets; or (4) during any other period when the SEC, by order, so permits for the protection of security holders. At any time, payments from the Fixed Account may be delayed up to 6 months. THE SEPARATE ACCOUNTS - -------------------------------------------------------------------------------- The Company sponsors Separate Account Thirteen and Separate Account Fourteen. When we refer to the Separate Account, we are referring to Separate Account Thirteen, except where the Contract was originally issued by MLACC, in which case, we are referring to Separate Account Fourteen. (See "The Insurance Company" .) Both Separate Account Thirteen and Separate Account Fourteen were established on November 14, 2002 and are registered with the SEC as unit investment trusts under the Investment Company Act of 1940, as amended. We will invest Separate Account assets attributable to the Contracts exclusively in the shares of the Variable Funding Options. We anticipate merging Separate Account Thirteen and Separate Account Fourteen with and into another separate account of the Company (the MetLife of CT Separate Account Eleven for Variable Annuities) during the fourth quarter of 2008 at the earliest, subject to regulatory approval. This merger will have no effect on the provisions of, and the rights and obligations under, the Contract. Similarly, the merger will not have any adverse impact on your Contract Value or any tax consequences for you. We hold the assets of the Separate Account for the exclusive and separate benefit of the owners of each Separate Account, according to the laws of Connecticut. Income, gains and losses, whether or not realized, from assets allocated to the Separate Account are, in accordance with the Contracts, credited to or charged against the Separate Account without regard to other income, gains and losses of the Company. The assets held by the Separate Account are not chargeable with liabilities arising out of any other business that we may conduct. Obligations under the Contract are obligations of the Company. Any obligations that exceed the assets in the Separate Account are payable by the Company's general account. The amount of the guaranteed death benefit that exceeds the Contract Value is 52 paid from the Company's general account. Benefit amounts paid from the general account are subject to the financial strength and claims-paying ability of the Company. All investment income and other distributions of the funding options are payable to the Separate Account. We reinvest all such income and/or distributions in shares of the respective funding option at net asset value. Shares of the funding options are currently sold only to life insurance company separate accounts to fund variable annuity and variable life insurance contracts. Certain variable annuity separate accounts and variable life insurance separate accounts may invest in the funding options simultaneously (called "mixed" and "shared" funding). It is conceivable that in the future it may be disadvantageous to do so. Although the Company and the Variable Funding Options do not currently foresee any such disadvantages either to variable annuity contract owners or variable life policy owners, each Underlying Fund's Board of Directors intends to monitor events in order to identify any material conflicts between them and to determine what action, if any, should be taken. If a Board of Directors was to conclude that separate funds should be established for variable life and variable annuity separate accounts, the variable annuity contract owners would not bear any of the related expenses, but variable annuity contract owners and variable life insurance policy owners would no longer have the economies of scale resulting from a larger combined fund. We reserve the right to transfer assets of the Separate Account to another separate account, and/or to modify the structure or operation of the Separate Account, subject to the necessary regulatory approvals. If we do so, we guarantee that the modification will not affect your Contract Value. PERFORMANCE INFORMATION In advertisements for the Contract, we may include performance figures to show you how a Variable Funding Option has performed in the past. These figures are rates of return or yield quotations shown as a percent. These figures show past performance of a Variable Funding Option and are not an indication of how a Variable Funding Option will perform in the future. Our advertisements may show performance figures assuming that you do not elect any optional features such as the E.S.P., GMAB or GMWB. However, if you elect any of these optional features, they involve additional charges that will serve to decrease the performance of your Variable Funding Options. You may wish to speak with your registered representative to obtain performance information specific to the optional features you may wish to select. Performance figures for each Variable Funding Option are based in part on the performance of a corresponding Underlying Fund. In some cases, the Underlying Fund may have existed before the technical inception of the corresponding Variable Funding Option. In those cases, we can create "hypothetical historical performance" of a Variable Funding Option. These figures show the performance that the Variable Funding Option would have achieved had it been available during the entire history of the Underlying Fund. In a low interest rate environment, yields for money market Subaccounts, after deduction of the Mortality and Expense Risk Charge, Administrative Expense Charge and the charge for any optional benefit riders (if applicable), may be negative even though the Underlying Fund's yield, before deducting for such charges, is positive. If you allocate a portion of your Contract Value to a money market Subaccount or participate in an asset allocation program where Contract Value is allocated to a money market Subaccount under the applicable asset allocation model, that portion of your Contract Value may decrease in value. FEDERAL TAX CONSIDERATIONS - -------------------------------------------------------------------------------- The following general discussion of the federal income tax consequences related to your investment in this Contract is not intended to cover all situations, and is not meant to provide tax or legal advice. Because of the complexity of the law and the fact that the tax results will vary depending on many factors, you should consult your tax and/or legal adviser regarding the tax implications of purchasing this Contract based upon your individual situation. For further tax information, an additional discussion of certain tax matters is contained in the SAI. You are responsible for determining whether your purchase of a Contract, withdrawals, income payments and any other transaction under your Contract satisfy applicable tax law. We are not responsible for determining if your 53 employer's plan or arrangement satisfies the requirements of the Code and/or the Employee Retirement Income Security Act of 1974 (ERISA). GENERAL TAXATION OF ANNUITIES Congress has recognized the value of saving for retirement by providing certain tax benefits, in the form of tax deferral, for premiums paid under an annuity and permitting tax-free transfers between the various investment options offered under the Contract. The Internal Revenue Code ("Code") governs how earnings on your investment in the Contract are ultimately taxed, depending upon the type of contract, qualified or non-qualified, and the manner in which the money is distributed, as briefly described below. In analyzing the benefits of tax deferral it is important to note that the Jobs and Growth Tax Relief Reconciliation Act of 2003 amended Code Section 1 to reduce the marginal tax rates on long-term capital gains and dividends to 5% and 15%. The reduced rates apply during 2003 through 2008, and thereafter will increase to prior levels. Under current federal tax law, the taxable portion of distributions under variable annuity contracts and qualified plans (including IRAs) is not eligible for the reduced tax rate applicable to long-term capital gains and dividends. Earnings under annuity contracts, like interest payable on fixed investments (notes, bonds, etc.), continue to be taxed as ordinary income (top rate of 35%). The tax law provides deferred annuities issued after October 21, 1988 by the same insurance company or an affiliate in the same calendar year to the same owner are combined for tax purposes. As a result, a greater portion of your withdrawals may be considered taxable income than you would otherwise expect. Although the law is not clear, the aggregation rule may also adversely affect the tax treatment of payments received under an income annuity where the owner has purchased more than one non-qualified annuity during the same calendar year from the same or an affiliated company after October 21, 1988, and is not receiving income payments from all annuities at the same time. Please consult your own tax advisor. STATE AND LOCAL TAXES. The rules for state and local income taxes may differ from the federal income tax rules. Purchasers and prospective purchasers of the Contract should consult their own tax advisers and the law of the applicable taxing jurisdiction to determine what rules and tax benefits apply to the Contract. PENALTY TAX FOR PREMATURE DISTRIBUTIONS. For both Qualified and Non-qualified Contracts, taxable distributions taken before the Contract Owner has reached the age of 59 1/2 will be subject to a 10% additional tax penalty unless the distribution is taken in a series of periodic distributions, for life or life expectancy, or unless the distribution follows the death or disability of the Contract Owner. Other exceptions may be available in certain qualified plans. The 10% tax penalty is in addition to any other penalties that may apply under your Contract and the normal income taxes due on the distribution. TAX-FREE EXCHANGES. Code Section 1035 provides that, if certain conditions are met, no gain or loss is recognized when an annuity contract is received in exchange for a life insurance policy, endowment, or annuity contract. Since different annuity contracts have different expenses, fees and benefits, a tax- free exchange could result in your investment becoming subject to higher or lower fees and/or expenses. FEDERAL ESTATE TAXES. While no attempt is being made to discuss the federal estate tax implications of the Contract, you should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent's gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning adviser for more information. GENERATION-SKIPPING TRANSFER TAX. Under certain circumstances, the Code may impose a "generation-skipping transfer tax" when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Contract Owner. Regulations issued under the Code may require us to deduct the tax from your Contract, or from any applicable payment, and pay it directly to the IRS. TYPES OF CONTRACTS: QUALIFIED AND NON-QUALIFIED QUALIFIED ANNUITY CONTRACTS If you purchase your Contract with proceeds of an eligible rollover distribution from any qualified employee pension plan or retirement savings plan or individual retirement annuity (IRA), your Contract is referred to as a Qualified 54 Contract. Some examples of Qualified Contracts are: IRAs (including Roth IRAs), tax-sheltered annuities established by public school systems or certain tax- exempt organizations under Code Section 403(b), corporate sponsored pension, retirement savings, and profit-sharing plans (including 401(k) plans), Keogh Plans (for self-employed individuals), and certain other qualified deferred compensation plans. Another type of Qualified Contract is a Roth IRA, under which after-tax contributions accumulate until maturity, when amounts (including earnings) may be withdrawn tax-free. The rights and benefits under a Qualified Contract may be limited by the terms of the retirement plan, regardless of the terms and conditions of the Contract. Plan participants making contributions to Qualified Contracts will be subject to the required minimum distribution rules as provided by the Code and described below. All qualified plans (including IRAs) receive tax-deferral under the Code. Although there are no additional tax benefits to funding your qualified plan or IRA with an annuity, it does offer you additional insurance benefits, such as the availability of a guaranteed income for life. The Contract has been submitted to the IRS for approval as to form as a valid IRA. Such approval would not constitute an IRS approval or endorsement of any funding options under the contract. IRS approval as to form is not required to constitute a valid IRA. Disqualification of the Contract as an IRA could result in the immediate taxation of amounts held in the Contract and other adverse tax consequences. TAXATION OF QUALIFIED ANNUITY CONTRACTS Under a qualified annuity, since amounts paid into the Contract generally have not yet been taxed, the full amount of any distributions (including the amount attributable to Purchase Payments), whether paid in the form of lump sum withdrawals or Annuity Payments, are generally taxed at ordinary income tax rates unless the distribution is transferred to an eligible rollover account or contract. There are special rules which govern the taxation of Qualified Contracts, including withdrawal restrictions, requirements for mandatory distributions, and contribution limits. Amounts rolled over to the Contract from other qualified funding vehicles generally are not subject to current taxation. MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS Federal tax law requires that minimum annual distributions begin by April 1st of the calendar year following the calendar year in which an IRA owner attains age 70 1/2. Participants in qualified plans and 403(b) annuities may defer minimum distributions until the later of April 1st of the calendar year following the calendar year in which they attain age 70 1/2 or the year of retirement (except for participants who are 5% or more owners of the plan sponsor). If you own more than one individual retirement annuity and/or account, you may satisfy the minimum distribution rules on an aggregate basis (i.e. determine the total amount of required distributions from all IRAs and take the required amount from any one or more IRAs). A similar aggregate approach is available to meet your 403(b) minimum distribution requirements if you have multiple 403(b) annuities. Recently promulgated Treasury regulations changed the distribution requirements; therefore, it is important that you consult your tax adviser as to the impact of these regulations on your personal situation. Final income tax regulations regarding minimum distribution requirements were released in June 2004. These regulations affect both deferred and income annuities. Under these new rules, effective with respect to minimum distributions required for the 2006 distribution year, in general, the value of all benefits under a deferred annuity (including death benefits in excess of cash value, including the Enhanced Stepped-Up Provision, as well as all living benefits such as GMAB and GMWB , if available in your contract) must be added to the Contract Value in computing the amount required to be distributed over the applicable period. We will provide you with additional information as to the amount of your interest in the Contract that is subject to required minimum distributions under this new rule and either compute the required amount for you or offer to do so at your request. The new rules are not entirely clear and you should consult your personal tax advisor as to how these rules affect your Contract. MINIMUM DISTRIBUTIONS FOR BENEFICIARIES UPON THE CONTRACT OWNER'S DEATH: Upon the death of the Contract Owner and/or Annuitant of a Qualified Contract, the funds remaining in the Contract must be completely withdrawn within five years from the date of death or minimum distributions may be taken over the life expectancy of the individual beneficiaries (or in the case of certain trusts that are contract beneficiaries, over the life expectancy of the individuals who are the beneficiaries of the trust), provided such distributions are payable at least annually and begin within one year from the date of death. Special rules apply where the beneficiary is the surviving spouse, which allow the spouse to assume the Contract and defer the minimum distribution requirements. 55 NOTE TO PARTICIPANTS IN QUALIFIED PLANS INCLUDING 401, 403(B), 408 OR 457, INCLUDING IRA OWNERS: While annual plan contribution limits may be increased from time to time by Congress and the IRS for federal income tax purposes, these limits must be adopted by each state for any higher limits to be effective at a state income tax level. In other words, the permissible contribution limits for federal and state income tax purposes may be different. Therefore, in certain states, a portion of the contributions may not be excludible or deductible from state income taxes. Please consult your employer or tax adviser regarding this issue. INDIVIDUAL RETIREMENT ANNUITIES To the extent of earned income for the year and not exceeding the applicable limit for the taxable year, an individual may make contributions, which in some cases may be deductible, to an individual retirement annuity (IRA). The applicable limit is $4,000 in 2007 and $5,000 in 2008, and it may be indexed for inflation in years after 2008. Additional "catch-up contributions" may be made to an IRA by individuals age 50 or over. There are certain limits on the deductible amount based on the adjusted gross income of the individual and spouse and on their participation in a retirement plan. If an individual is married and the spouse is not employed, the individual may establish IRAs for the individual and spouse. Purchase Payments may then be made annually into IRAs for both spouses in the maximum amount of 100% of earned income up to a combined limit based on the individual limits outlined above. Deductible contributions to an IRA and Roth IRA for the year must be aggregated for purposes of the individual Code Section 408A limits and the Code Section 219 limits (age 50+catch-up). Partial or full distributions are treated as ordinary income, except that amounts contributed after 1986 on a non-deductible basis are not includable in income when distributed. An additional tax of 10% will apply to any taxable distribution from the IRA that is received by the participant before the age of 59 1/2 except by reason of death, disability or as part of a series of payments for life or life expectancy. Distributions must commence by April 1st of the calendar year after the close of the calendar year in which the individual attains the age of 70 1/2. Certain other mandatory distribution rules apply on the death of the individual. The individual must maintain personal and tax return records of any non-deductible contributions and distributions. Section 408 (k) of the Code provides for the purchase of a Simplified Employee Pension (SEP) plan. A SEP is funded through an IRA and can accept an annual employer contribution limited to the lesser of $46,000 or 100% of pay for each participant in 2008. ROTH IRAS Effective January 1, 1998, Section 408A of the Code permits certain individuals to contribute to a Roth IRA. Eligibility to make contributions is based upon income, and the applicable limits vary based on marital status and/or whether the contribution is a rollover contribution from another IRA or an annual contribution. Contributions to a Roth IRA, which are subject to certain limitations, (similar to the annual limits for traditional IRAs), are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A conversion of "traditional" IRA to a Roth IRA may be subject to tax and other special rules apply. You should consult a tax adviser before combining any converted amounts with other Roth IRA contributions, including any other conversion amounts from other tax years. Qualified distributions from a Roth IRA are tax-free. A qualified distribution requires that the Roth IRA has been held for at least 5 years, and the distribution is made after age 59 1/2, on death or disability of the owner, or for a limited amount ($10,000) for a qualified first time home purchase for the owner or certain relatives. Income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during five taxable years starting with the year in which the first contribution is made to the Roth IRA. TSAS (ERISA AND NON-ERISA) GENERAL. TSAs fall under sec.403(b) of the Code, which provides certain tax benefits to eligible employees of public school systems and organizations that are tax exempt under sec.501(c)(3) of the Code. In general contributions to sec.403(b) arrangements are subject to limitations under sec.415(c) of the Code (the lesser of 100% of includable compensation or the applicable limit for the year). 56 Recently, the IRS announced new regulations affecting sec.403(b) plans and arrangements. As part of these regulations, employers will need to meet certain requirements in order for their employees' annuity contracts that fund these programs to retain a tax deferred status under sec.403(b). These regulations are generally effective January 1, 2009. Prior to the new rules, transfers of one annuity contract to another would not result in a loss of tax deferred status under sec.403(b) under certain conditions (so-called "90-24 transfers"). The new regulations have the following effect regarding transfers: (1) a newly issued contract funded by a transfer which is completed after September 24, 2007, is subject to the employer requirements referred to above; (2) additional purchase payments made after September 24, 2007, to a contract that was funded by a 90-24 transfer on or before September 24, 2007, may subject the contract to this new employer requirement. If your Contract was issued previously in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax advisor prior to making additional purchase payments (if permitted). WITHDRAWALS AND INCOME PAYMENTS. If you are under 59 1/2, you cannot withdraw money from your TSA Contract unless the withdrawal: - Relates to Purchase Payments made prior to 1989 (and pre-1989 earnings on those Purchase Payments); - Is directly transferred to another permissible investment under sec.403(b) arrangements; - Relates to amounts that are not salary reduction elective deferrals; - Occurs after you die, leave your job or become disabled (as defined by the Code); or - Is for financial hardship (but only to the extent of Purchase Payments) if your plan allows it. DESIGNATED ROTH ACCOUNT FOR 403(B) PLANS. Effective January 1, 2006, employers that established and maintain a TSA/403(b) plan ("the Plan") may also establish a Qualified Roth Contribution Program under Section 402A of the Code ("Designated Roth Accounts") to accept after-tax contributions as part of the TSA plan. In accordance with our administrative procedures, we may permit these contributions to be made as purchase payments to a Section 403(b) Contract under the following conditions: (1) The employer maintaining the plan has demonstrated to our satisfaction that Designated Roth Accounts are permitted under the Plan. (2) In accordance with our administrative procedures, the amount of elective deferrals has been irrevocably designated as an after-tax contribution to the Designated Roth Account. (3) All state regulatory approvals have been obtained to permit the Contract to accept such after-tax elective deferral contributions (and, where permitted under the Qualified Roth Contribution Program and the Contract, rollovers and trustee-to-trustee transfers from other Designated Roth Accounts). (4) In accordance with our procedures and in a form satisfactory to us, we may accept rollovers from other funding vehicles under any Qualified Roth Contribution Program of the same type in which the employee participates as well as trustee-to-trustee transfers from other funding vehicles under the same Qualified Roth Contribution Program for which the participant is making elective deferral contributions to the Contract. (5) No other contribution types (including employer contributions, matching contributions, etc.) will be allowed as designated Roth contributions, unless they become permitted under the Code. (6) If permitted under the federal tax law, we may permit both pre-tax contributions under a 403(b) plan as well as after-tax contributions under the Plan's Qualified Roth Contribution Program to be made under the same Contract as well as rollover contributions and contributions by trustee-to-trustee transfers. In such cases, we will account separately for the designated Roth contributions and the earnings thereon from the contributions and earnings made under the pre-tax TSA plan (whether made as elective deferrals, rollover contributions or trustee-to-trustee transfers). As between the pre-tax or traditional Plan and the Qualified Roth Contribution Program, we will allocate any living benefits or death benefits provided under the Contract on a reasonable basis, as permitted under the tax law. 57 (7) We may refuse to accept contributions made as rollovers and trustee- to-trustee transfers, unless we are furnished with a breakdown as between participant contributions and earnings at the time of the contribution. Many of the federal income tax rules pertaining to Designated Roth Accounts have not yet been finalized. Both you and your employer should consult their own tax and legal advisors prior to making or permitting contributions to be made to a Qualified Roth Contribution Program. The following general tax rules are based on our understanding of the Code and any regulations issued through December 31, 2005, and are subject to change and to different interpretation as well as additional guidance in respect to areas not previously addressed: The employer must permit contributions under a pre-tax 403(b) plan in order to permit contributions to be irrevocably designated and made part of a Qualified Roth Contribution Program. Elective deferral contributions to the Designated Roth Account must be aggregated with all other elective deferral contributions made by a taxpayer for purposes of the individual Code Section 402(g) limits and the Code Section 414(v) limits (relating to age 50 and over catch-up contributions) as well as contribution limits that apply under the Plan. In general, the same tax law rules with respect to restricted monies, triggering events and permitted distributions will apply to the Designated Roth Accounts under the Plan as apply to the traditional pre-tax accounts under the plan (e.g., death or disability of participant, severance from employment, attainment of age 59 1/2 and hardship withdrawals only with respect to contributions (if permitted under the Plan)). If the amounts have been held under any Designated Roth Account of a participant for at least five years and are made on account of death, disability or after attainment of age 59 1/2, then any withdrawal, distribution or payment of these amounts is generally free of federal income tax ("Qualified Distributions"). Unlike Roth IRAs, withdrawal, distributions and payments that do not meet the five year rule will generally be taxed on a pro-rated basis with respect to earnings and after-tax contributions. The 10% penalty tax will generally apply on the same basis as a traditional pre-tax account under the Plan. Additionally, rollover distributions may only be made tax-free into another Designated Roth Account or into a Roth IRA. Some states may not permit contributions to be made to a Qualified Roth Contribution Program or may require additional conforming legislation for these rules to become effective. LOANS. If your TSA Contract permits loans, such loans will be made only from any Fixed Interest Account balance and only up to certain limits. In that case, we credit your Fixed Interest Account balance up to the amount of the outstanding loan balance with a rate of interest that is less than the interest rate we charge for the loan. The Code and applicable income tax regulations limit the amount that may be borrowed from your Contract and all you employer plans in the aggregate and also require that loans be repaid, at a minimum, in scheduled level payments over a proscribed term. Your Contract will indicate whether loans are permitted. The terms of the loan are governed by the Contract and loan agreement. Failure to satisfy loan limits under the Code or to make any scheduled payments according to the terms of your loan agreement and Federal tax law could have adverse tax consequences. Consult a tax advisor and read your loan agreement and Contract prior to taking any loan. NON-QUALIFIED ANNUITY CONTRACTS If you purchase the Contract on an individual basis with after-tax dollars and not under one of the programs described above, your Contract is referred to as non-qualified. As the owner of a non-qualified annuity, you do not receive any tax benefit (deduction or deferral of income) on Purchase Payments, but you will not be taxed on increases in the value of your Contract until a distribution occurs -- either as a withdrawal made prior to the Maturity Date or in the form of periodic Annuity Payments. As a general rule, there is income in the Contract (earnings) to the extent the Contract Value exceeds your investment in the Contract. The investment in the Contract equals the total Purchase Payments less any amount received previously which was excludible from gross income. 58 Generally, different tax rules apply to Annuity Payments than to withdrawals and payments received before the annuity starting date. When a withdrawal is made, you are taxed on the amount of the withdrawal that is considered earnings under federal tax laws. Similarly, when you receive an Annuity Payment, part of each periodic payment is considered a return of your Purchase Payments and will not be taxed, but the remaining portion of the Annuity Payment (i.e., any earnings) will be considered ordinary income for federal income tax purposes. Annuity Payments are subject to an "excludable amount" or "exclusion ratio" which determines how much of each payment is treated as: - a non-taxable return of your Purchase Payment; or - a taxable payment of earnings. We generally will tell you how much of each Annuity Payment is a non-taxable return of your Purchase Payments. However, it is possible that the IRS could conclude that the taxable portion of Annuity Payments under a non-qualified contract is an amount greater (or less) than the taxable amount determined by us and reported by us to you and the IRS. Generally, once the total amount treated as a non-taxable return of your Purchase Payments equals your Purchase Payments, then all remaining payments are fully taxable. We will withhold a portion of the taxable amount of your Annuity Payment for income taxes, unless you elect otherwise. The amount we withhold is determined by the Code. Code Section 72(s) requires that non-qualified annuity contracts meet minimum mandatory distribution requirements upon the death of the Contract Owner, including the death of either of the Joint Owners. If these requirements are not met, the Contract will not be treated as an annuity contract for federal income tax purposes and earnings under the Contract will be taxable currently, not when distributed. The distribution required depends, among other things, upon whether an annuity option is elected or whether the succeeding Contract Owner is the surviving spouse. We will administer contracts in accordance with these rules and we will notify you when you should begin receiving payments. There is a more complete discussion of these rules in the SAI. If a non-qualified annuity is owned by a non-natural person (e.g., a corporation), increases in the value of the Contract attributable to Purchase Payments made after February 28, 1986 are includable in income annually and taxed at ordinary income tax rates. Furthermore, for contracts issued after April 22, 1987, if the Contract is transferred to another person or entity without adequate consideration, all deferred increases in value will be treated as income for federal income tax purposes at the time of the transfer. PARTIAL WITHDRAWALS: If you make a partial withdrawal of your Contract Value, the distribution generally will be taxed as first coming from earnings (income in the Contract) and then from your Purchase Payments. These withdrawn earnings are includable in your taxable income. (See "Penalty Tax for Premature Distributions" below.) Any direct or indirect borrowing against the value of the Contract or pledging of the Contract as security for a loan will be treated as a cash distribution under the tax law, and will have tax consequences in the year taken. It should be noted that there is no guidance as to the determination of the amount of income in a Contract if it is issued with a Guaranteed Minimum Withdrawal Benefit (GMWB). Therefore, you should consult with your tax adviser as to the potential tax consequences of a partial surrender if your Contract is issued with a GMWB. PARTIAL ANNUITIZATIONS (IF AVAILABLE WITH YOUR CONTRACT): At the present time the IRS has not approved the use of an exclusion ratio or exclusion amount when only part of your Contract Value is applied to a payment option. Currently, we will treat the application of less than your entire Contract Value under a Non- qualified Contract to a payment option (i.e. taking Annuity Payments) as a taxable withdrawal for federal income tax purposes (which may also be subject to the 10% penalty tax if you are under age 59 1/2). We will then treat the amount of the withdrawal (after any deductions for taxes) as the purchase price of an income annuity and tax report the income payments received under that annuity under the rules for variable income annuities. Consult your tax attorney prior to partially annuitizing your Contract. We will determine the excludable amount for each income payment under the Contract as a whole by using the rules applicable to variable income payments in general (i.e. by dividing your after-tax purchase price, as adjusted for any refund or guarantee feature, by the number of expected income payments from the appropriate IRS table). However, the IRS may determine that the excludable amount is different from our computation. 59 DIVERSIFICATION REQUIREMENTS FOR VARIABLE ANNUITIES The Code requires that any non-qualified variable annuity contracts based on a Separate Account must meet specific diversification standards. Non-qualified variable annuity contracts shall not be treated as an annuity for federal income tax purposes if investments made in the account are not adequately diversified. Final tax regulations define how Separate Accounts must be diversified. The Company constantly monitors the diversification of investments and believes that its accounts are adequately diversified. The consequence of any failure to diversify is essentially the loss to the Contract Owner of tax-deferred treatment, requiring the current inclusion of a proportionate share of the income and gains from the Separate Account assets in the income of each Contract Owner. The Company intends to administer all contracts subject to this provision of law in a manner that will maintain adequate diversification. OWNERSHIP OF THE INVESTMENTS In certain circumstances, owners of variable annuity contracts have been considered to be the owners of the assets of the underlying Separate Account for federal income tax purposes due to their ability to exercise investment control over those assets. When this is the case, the Contract Owners have been currently taxed on income and gains attributable to the Separate Account assets. There is little guidance in this area, and some features of the Contract, such as the number of funds available and the flexibility of the Contract Owner to allocate premium payments and transfer amounts among the funding options, have not been addressed in public rulings. While we believe that the Contract does not give the Contract Owner investment control over Separate Account assets, we reserve the right to modify the Contract as necessary to prevent a Contract Owner from being treated as the owner of the Separate Account assets supporting the Contract. TAXATION OF DEATH BENEFIT PROCEEDS Amounts may be distributed from a Non-qualified Contract because of the death of an owner or Annuitant. Generally, such amounts are includable in the income of the recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a full surrender of the Contract; or (ii) if distributed under a payment option, they are taxed in the same way as Annuity Payments. OTHER TAX CONSIDERATIONS TREATMENT OF CHARGES FOR OPTIONAL BENEFITS The Contract may provide one or more optional enhanced death benefits or other minimum guaranteed benefit that in some cases may exceed the greater of purchase price or the Contract Value. It is possible that the Internal Revenue Service may take the position that the charges for the optional enhanced benefit(s) are deemed to be taxable distributions to you. Although we do not believe that a charge under such optional enhanced benefit should be treated as a taxable withdrawal, you should consult with your tax adviser before selecting any rider or endorsement to the Contract. GUARANTEED MINIMUM WITHDRAWAL BENEFITS If you have purchased the Guaranteed Minimum Withdrawal Benefit Rider, where otherwise made available, note the following: The tax treatment of withdrawals under such a benefit is uncertain. It is conceivable that the amount of potential gain could be determined based on the remaining amounts guaranteed to be available for withdrawal at the time of the withdrawal if greater than the Contract Value (prior to surrender charges). This could result in a greater amount of taxable income in certain cases. In general, at the present time, the Company intends to tax report such withdrawals using the Contract Value rather than the remaining benefit to determine gain. However, in cases where the maximum permitted withdrawal in any year under any version of the GMWB exceeds the Contract Value, the portion of the withdrawal treated as taxable gain (not to exceed the amount of the withdrawal) should be measured as the difference between the maximum permitted withdrawal amount under the benefit and the remaining after-tax basis immediately preceding the withdrawal. 60 In the event that the Contract Value goes to zero, and the Remaining Benefit Base is paid out in fixed installments, we will treat such payments as income annuity payments under the tax law and allow recovery of any remaining basis ratably over the expected number of payments. The Company reserves the right to change its tax reporting practices where it determines they are not in accordance with IRS guidance (whether formal or informal). PUERTO RICO TAX CONSIDERATIONS The Puerto Rico Internal Revenue Code of 1994 (the "1994 Code") taxes distributions from non-qualified annuity contracts differently than in the U.S. Distributions that are not in the form of an annuity (including partial surrenders and period certain payments) are treated under the 1994 Code first as a return of investment. Therefore, a substantial portion of the amounts distributed generally will be excluded from gross income for Puerto Rico tax purposes until the cumulative amount paid exceeds your tax basis. The amount of income on annuity distributions (payable over your lifetime) is also calculated differently under the 1994 Code. Since Puerto Rico residents are also subject to U.S. income tax on all income other than income sourced to Puerto Rico and the Internal Revenue Service issued guidance in 2004 which indicated that the income from an annuity contract issued by a U.S. life insurer would be considered U.S. source income, the timing of recognition of income from an annuity contract could vary between the two jurisdictions. Although the 1994 Code provides a credit against the Puerto Rico income tax for U.S. income taxes paid, an individual may not get full credit because of the timing differences. You should consult with a personal tax adviser regarding the tax consequences of purchasing an annuity contract and/or any proposed distribution, particularly a partial distribution or election to annuitize. NON-RESIDENT ALIENS Distributions to non resident aliens ("NRAs") are subject to special and complex tax and withholding rules under the Code with respect to U.S. source income, some of which are based upon the particular facts and circumstances of the Contract Owner, the beneficiary and the transaction itself. As stated above, the IRS has taken the position that income from the Contract received by NRAs is considered U.S. source income. In addition, Annuity Payments to NRAs in many countries are exempt from U.S. tax (or subject to lower rates) based upon a tax treaty, provided that the Contract Owner complies with the applicable requirements. NRAs should seek guidance from a tax adviser regarding their personal situation. TAX CREDITS AND DEDUCTIONS The Company may be entitled to certain tax benefits related to the assets of the Separate Account. These tax benefits, which may include foreign tax credits and corporate dividend received deductions, are not passed back to the Separate Account or to Contract Owners since the Company is the owner of the assets from which the tax benefits are derived. OTHER INFORMATION - -------------------------------------------------------------------------------- THE INSURANCE COMPANY Please refer to your Contract to determine which Company issued your Contract. MetLife Insurance Company of Connecticut is a stock insurance company chartered in 1863 in Connecticut and continuously engaged in the insurance business since that time. It is licensed to conduct life insurance business in all states of the United States, the District of Columbia, Puerto Rico, Guam, the U.S. and British Virgin Islands and the Bahamas. The Company is a wholly-owned subsidiary of MetLife, Inc., a publicly-traded company. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. The Company's Home Office is located at One Cityplace, Hartford, Connecticut 06103-3415. Before December 7, 2007, certain of the Contracts were issued by MetLife Life and Annuity Company of Connecticut, a stock life insurance company chartered in 1973 in Connecticut. These Contracts were funded through 61 Separate Account Fourteen, a separate account registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended. On December 7, 2007, MLACC, a wholly-owned subsidiary of the Company and an indirect, wholly-owned subsidiary of MetLife, Inc., merged with and into the Company. Upon consummation of the merger, MLACC's corporate existence ceased by operation of law, and the Company assumed legal ownership of all of the assets of MLACC, including Separate Account Fourteen and its assets. Pursuant to the merger, therefore, Separate Account Fourteen became a separate account of the Company. As a result of the merger, the Company also has become responsible for all of MLACC's liabilities and obligations, including those created under the Contract as initially issued by MLACC (formerly known as The Travelers Life and Annuity Company) and outstanding on the date of the merger. The Contract has thereby become a variable contract funded by a separate account of the Company, and each owner thereof has become a Contract Owner of the Company. FINANCIAL STATEMENTS The financial statements for the Company and its Separate Account are located in the Statement of Additional Information. DISTRIBUTION OF VARIABLE ANNUITY CONTRACTS DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT. MetLife Insurance Company of Connecticut (the "Company") has appointed MetLife Investors Distribution Company ("MLIDC") to serve as the principal underwriter and distributor of the securities offered through this Prospectus, pursuant to the terms of a Distribution and Principal Underwriting Agreement. MLIDC, which is an affiliate of the Company, also acts as the principal underwriter and distributor of other variable annuity contracts and variable life insurance policies issued by the Company and its affiliated companies. The Company reimburses MLIDC for expenses MLIDC incurs in distributing the Contracts (e.g. commissions payable to retail broker-dealers who sell the Contracts). MLIDC does not retain any fees under the Contracts; however, MLIDC may receive 12b-1 fees from the Underlying Funds. MLIDC's principal executive offices are located at 5 Park Plaza, Suite 1900, Irvine, California 92614. MLIDC is registered as a broker-dealer with the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934, as well as the securities commissions in the states in which it operates, and is a member of the Financial Industry Regulatory Authority (FINRA). An investor brochure that includes information describing FINRA's Public Disclosure Program is available by calling FINRA's Public Disclosure Program hotline at 1- 800-289-9999, or by visiting FINRA's website at www.finra.org. MLIDC and the Company enter into selling agreements with affiliated and unaffiliated broker-dealers who are registered with the SEC and are members of FINRA, and with entities that may offer the Contracts but are exempt from registration. Applications for the Contract are solicited by registered representatives who are associated persons of such affiliated or unaffiliated broker-dealer firms. Such representatives act as appointed agents of the Company under applicable state insurance law and must be licensed to sell variable insurance products. The Company intends to offer the Contract in all jurisdictions where it is licensed to do business and where the Contract is approved. The Contracts are offered on a continuous basis. COMPENSATION. Broker-dealers who have selling agreements with MLIDC and the Company are paid compensation for the promotion and sale of the Contracts. Registered representatives who solicit sales of the Contract typically receive a portion of the compensation payable to the broker-dealer firm. The amount the registered representative receives depends on the agreement between the firm and the registered representative. This agreement may also provide for the payment of other types of cash and non-cash compensation and other benefits. A broker- dealer firm or registered representative of a firm may receive different compensation for selling one product over another and/or may be inclined to favor one product provider over another product provider due to differing compensation rates. We generally pay compensation as a percentage of purchase payments invested in the Contract. Alternatively, we may pay lower compensation on purchase payments but pay periodic asset-based compensation based on all or a portion of the Contract Value. The amount and timing of compensation may vary depending on the selling agreement but is not expected to exceed 7.50% of Purchase Payments (if up-front compensation is paid to registered representatives) and up to 1.50% annually of average Contract Value (if asset-based compensation is paid to registered representatives). 62 The Company and MLIDC have also entered into preferred distribution arrangements with certain broker-dealer firms. These arrangements are sometimes called "shelf space" arrangements. Under these arrangements, the Company and MLIDC pay separate, additional compensation to the broker-dealer firm for services the broker-dealer provides in connection with the distribution of the Company's products. These services may include providing the Company with access to the distribution network of the broker-dealer, the hiring and training of the broker-dealer's sales personnel, the sponsoring of conferences and seminars by the broker-dealer, or general marketing services performed by the broker-dealer. The broker-dealer may also provide other services or incur other costs in connection with distributing the Company's products. These preferred distribution arrangements will not be offered to all broker- dealer firms and the terms of such arrangements may differ between broker-dealer firms. Compensation payable under such arrangements may be based on aggregate, net or anticipated sales of the Contracts, total assets attributable to sales of the Contract by registered representatives of the broker-dealer firm or based on the length of time that a Contract Owner has owned the Contract. Any such compensation payable to a broker-dealer firm will be made by MLIDC or the Company out of their own assets and will not result in any additional direct charge to you. Such compensation may cause the broker-dealer firm and its registered representatives to favor the Company's products. The Company and MLIDC have entered into a preferred distribution arrangement with their affiliate Tower Square Securities, Inc. and with the unaffiliated broker-dealer firms identified in the Statement of Additional Information. The Company and MLIDC may enter into similar arrangements with their other affiliates MetLife Securities, Inc., Walnut Street Securities, Inc., and New England Securities Corporation. See the "Statement of Additional Information -- DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT" for a list of the broker-dealer firms that received such additional compensation during 2007, as well as the range of additional compensation paid. The Company and MLIDC have entered into selling agreements with certain broker- dealer firms that have an affiliate that acts as investment adviser or sub- adviser to one or more Underlying Funds that may be offered under the Contracts. These investment advisory firms include Fidelity Management & Research Company, Morgan Stanley Investment Advisers Inc., MetLife Investment Funds Management LLC, MetLife Advisers, LLC and Met Investors Advisory LLC. MetLife Investment Funds Management LLC, MetLife Advisers LLC and Met Investors Advisory LLC are affiliates of the Company. Registered representatives of broker-dealer firms with an affiliated company acting as an adviser or a sub-adviser may favor these Funds when offering the Contracts. SALE BY AFFILIATES OF THE COMPANY. The Company and MLIDC may offer the Contracts through retail broker-dealer firms that are affiliates of the Company, including Tower Square Securities, Inc., MetLife Securities, Inc. and/or Metropolitan Life Insurance Company, Walnut Street Securities, Inc. and New England Securities Corporation. The compensation paid to affiliated broker-dealer firms for sales of the Contracts is generally not expected to exceed, on a present value basis, the percentages described above. These broker-dealer firms pay their registered representatives all or a portion of the commissions received for their sales of Contracts; some firms may retain a portion of commissions. The amount the broker dealer firms pass on to their registered representatives is determined in accordance with their internal compensation programs. These programs may also include other types of cash compensation, such as bonuses, equity awards (such as stock options), training allowances, supplementary salary, financing arrangements, marketing support, medical and other insurance benefits, retirement benefits, and other benefits. For registered representatives of certain affiliates, the amount of this additional cash compensation is based primarily on the amount of proprietary products sold and serviced by the representative. Proprietary products are those issued by the Company or its affiliates. The managers who supervise these registered representatives may also be entitled to additional cash compensation based on the sale of proprietary products by their representatives. Because the additional cash compensation paid to these registered representatives and their managers is primarily based on sales of proprietary products, these registered representatives and their managers have an incentive to favor the sale of proprietary products over other products issued by non-affiliates. MetLife registered representatives receive cash payments for the products they sell and service based upon a 'gross dealer concession' model. The cash payment is equal to a percentage of the gross dealer concession. For MetLife registered representatives other than those in our MetLife Resources (MLR) Division, the percentage is determined by a formula that takes into consideration the amount of premiums and purchase payments applied to proprietary products that the registered representative sells and services. The percentage could be as high as 100%. (MLR registered representatives receive compensation based upon premiums and purchase payments applied to all products sold and serviced by the representative.) In addition, all MetLife registered representatives are entitled to the additional compensation described above based on sales of proprietary products. Because sales of proprietary products are a factor determining the percentage of gross dealer concession and/or the amount of additional 63 compensation to which MetLife registered representatives are entitled, they have an incentive to favor the sale of proprietary products. In addition, because their sales managers' compensation is based on the sales made by the representatives they supervise, these sales managers also have an incentive to favor the sale of proprietary products. The Company's affiliates also offer their registered representatives and their managers non-cash compensation incentives, such as conferences, trips, prizes and awards. Other non-cash compensation payments may be made for other services that are not directly related to the sale of products. These payments may include support services in the form of recruitment and training of personnel, production of promotional materials and similar services. CONFORMITY WITH STATE AND FEDERAL LAWS The laws of the state in which we deliver a contract govern that Contract. Where a state has not approved a contract feature or funding option, it will not be available in that state. Any paid-up annuity, Cash Surrender Value or death benefits that are available under the Contract are not less than the minimum benefits required by the statutes of the state in which we delivered the Contract. We reserve the right to make any changes, including retroactive changes, in the Contract to the extent that the change is required to meet the requirements of any law or regulation issued by any governmental agency to which the Company, the Contract or the Contract Owner is subject. VOTING RIGHTS The Company is the legal owner of the shares of the Underlying Funds. However, we believe that when an Underlying Fund solicits proxies in conjunction with a vote of shareholders we are required to obtain from you and from other owners instructions on how to vote those shares. We will vote all shares, including those we may own on our own behalf, and those where we have not received instructions from Contract Owners, in the same proportion as shares for which we received voting instructions. The effect of this proportional voting is that a small number of Contract Owners may control the outcome of a vote. Should we determine that we are no longer required to comply with the above, we will vote the shares in our own right. In certain limited circumstances, and when permitted by law, we may disregard voting instructions. If we do disregard voting instructions, a summary of that action and the reasons for such action would be included in the next annual report to Contract Owners. RESTRICTIONS ON FINANCIAL TRANSACTIONS Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to block a Contract Owner's ability to make certain transactions and thereby refuse to accept any request for transfers, withdrawals, surrenders, or death benefits, until the instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your Contract to government regulators. LEGAL PROCEEDINGS In the ordinary course of business, the Company, similar to other life insurance companies, is involved in lawsuits (including class action lawsuits), arbitrations and other legal proceedings. Also, from time to time, state and federal regulators or other officials conduct formal and informal examinations or undertake other actions dealing with various aspects of the financial services and insurance industries. In some legal proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. It is not possible to predict with certainty the ultimate outcome of any pending legal proceeding or regulatory action. However, the Company does not believe any such action or proceeding will have a material adverse effect upon the Separate Account or upon the ability of MLIDC to perform its contract with the Separate Account or of the Company to meet its obligations under the Contracts. 64 APPENDIX A - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT THIRTEEN FOR VARIABLE ANNUITIES ACCUMULATION UNIT VALUES (IN DOLLARS) The following Accumulation Unit Value ("AUV") information should be read in conjunction with the Separate Account's audited financial statement and notes, which are included in the Statement of Additional Information ("SAI"). The first table provides the AUV information for the MINIMUM Separate Account Charge available under the contract. The second table provides the AUV information for the MAXIMUM Separate Account Charge available under the contract. Please refer to the Fee Table section of this prospectus for more information on Separate Account Charges. PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.387 1.358 -- 2005 1.225 1.387 2,956 2004 1.147 1.225 2,085 2003 1.000 1.147 1,052 American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.972 2.232 166,178 2006 1.661 1.972 149,633 2005 1.477 1.661 151,418 2004 1.321 1.477 200,251 2003 1.000 1.321 7,684 American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.738 1.925 501,926 2006 1.600 1.738 499,206 2005 1.397 1.600 412,813 2004 1.260 1.397 308,829 2003 1.000 1.260 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.620 1.678 592,066 2006 1.427 1.620 559,482 2005 1.368 1.427 508,320 2004 1.258 1.368 432,800 2003 1.000 1.258 4,614 Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.671 1.654 -- 2005 1.434 1.671 28,310 2004 1.217 1.434 8,905 2003 1.000 1.217 --
A-1 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.731 2.262 -- 2005 1.638 1.731 93,262 2004 1.265 1.638 67,949 2003 1.000 1.265 1,299 Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.434 1.514 35,729 2006 1.249 1.434 37,123 2005 1.214 1.249 31,469 2004 1.172 1.214 579 2003 1.000 1.172 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.505 1.319 57,993 2006 1.471 1.505 57,510 2005 1.411 1.471 54,691 2004 1.286 1.411 53,039 2003 1.000 1.286 4,790 FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.319 1.435 -- 2005 1.214 1.319 17,987 2004 1.079 1.214 -- 2003 1.000 1.079 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.316 1.468 -- 2005 1.213 1.316 77,817 2004 1.072 1.213 65,270 2003 1.000 1.072 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.778 2.056 204,937 2006 1.619 1.778 184,291 2005 1.408 1.619 146,534 2004 1.241 1.408 20,924 2003 1.000 1.241 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.580 1.662 16,598 2006 1.409 1.580 17,085 2005 1.184 1.409 12,028 2004 1.186 1.184 10,278 2003 1.000 1.186 1,281
A-2 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 2.236 2.541 145,117 2006 2.018 2.236 176,250 2005 1.735 2.018 158,010 2004 1.412 1.735 62,131 2003 1.000 1.412 3,192 Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.461 1.705 -- 2005 1.341 1.461 23,355 2004 1.208 1.341 6,716 2003 1.000 1.208 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.885 3.662 35,738 2006 2.285 2.885 39,068 2005 1.820 2.285 41,735 2004 1.480 1.820 10,223 2003 1.000 1.480 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 2.033 2.314 93,914 2006 1.699 2.033 102,266 2005 1.564 1.699 79,354 2004 1.339 1.564 28,162 2003 1.214 1.339 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.630 1.957 -- 2005 1.519 1.630 63,830 2004 1.329 1.519 24,580 2003 1.000 1.329 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.062 1.087 -- 2005 1.064 1.062 84,533 2004 0.992 1.064 40,139 Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.241 1.282 -- 2005 1.169 1.241 -- 2004 1.095 1.169 -- 2003 1.000 1.095 --
A-3 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.558 1.869 13,910 2006 1.487 1.558 13,910 2005 1.343 1.487 13,910 2004 1.193 1.343 13,910 2003 1.000 1.193 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.607 1.927 16,709 2006 1.512 1.607 16,727 2005 1.375 1.512 16,754 2004 1.387 1.375 16,781 2003 1.000 1.387 2,662 Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.563 1.685 -- 2006 1.345 1.563 -- 2005 1.293 1.345 -- 2004 1.255 1.293 -- 2003 1.000 1.255 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.550 1.742 -- 2005 1.512 1.550 50,468 2004 1.335 1.512 4,174 2003 1.000 1.335 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.668 1.610 99,377 LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.543 1.599 57,079 LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.536 1.589 155,316 2006 1.354 1.536 152,065 2005 1.318 1.354 103,763 2004 1.213 1.318 27,196 2003 1.000 1.213 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.739 1.667 46,576 LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.698 1.738 32,755 2006 1.456 1.698 37,823 2005 1.387 1.456 41,899 2004 1.275 1.387 21,357 2003 1.000 1.275 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.430 1.433 101,769
A-4 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.866 2.023 20,707 2006 1.679 1.866 27,606 2005 1.624 1.679 30,044 2004 1.431 1.624 13,585 2003 1.000 1.431 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.143 1.250 6,920 2006 1.077 1.143 6,926 2005 1.047 1.077 6,933 2004 0.926 1.047 6,939 Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.031 1.030 -- 2006 1.005 1.031 -- 2005 0.996 1.005 -- 2004 0.999 0.996 -- 2003 1.000 0.999 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.672 1.755 -- 2006 1.436 1.672 44,244 2005 1.400 1.436 45,482 2004 1.312 1.400 18,421 2003 1.000 1.312 8,628 LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.382 1.440 -- 2006 1.345 1.382 141,269 2005 1.297 1.345 139,039 2004 1.309 1.297 147,318 2003 1.000 1.309 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.625 1.683 -- 2006 1.484 1.625 112,245 2005 1.370 1.484 99,560 2004 1.274 1.370 44,679 2003 1.000 1.274 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.486 1.553 -- 2006 1.342 1.486 57,977 2005 1.313 1.342 60,643 2004 1.230 1.313 29,236 2003 1.000 1.230 --
A-5 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.625 1.689 -- 2006 1.406 1.625 30,759 2005 1.381 1.406 32,171 2004 1.244 1.381 12,953 2003 1.000 1.244 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.816 2.003 -- 2006 1.642 1.816 69,547 2005 1.539 1.642 60,373 2004 1.259 1.539 25,554 2003 1.000 1.259 -- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.087 1.122 -- 2005 1.062 1.087 71,515 2004 1.000 1.062 22,944 Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.723 1.801 34,298 2006 1.000 1.723 32,065 MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.321 1.338 72,306 2006 1.000 1.321 20,366 MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.651 1.732 -- 2006 1.000 1.651 23,365 MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.718 1.732 22,025 MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.198 1.170 652 2006 1.000 1.198 653 MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.978 1.933 8,161 2006 1.000 1.978 7,644 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.698 2.183 26,762 2006 1.000 1.698 27,842 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.223 1.085 5,274 MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.187 1.244 56,769 2006 1.000 1.187 67,457 MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.323 1.394 3,282 2006 1.000 1.323 3,287
A-6 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.079 1.105 132,165 2006 1.000 1.079 103,991 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.073 1.064 102,438 2006 1.000 1.073 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.454 1.604 12,334 2006 1.000 1.454 10,302 MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.168 1.283 7,030 2006 1.000 1.168 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.224 2.337 8,002 MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.396 1.481 38,943 2006 1.000 1.396 27,217 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.221 1.026 100,308 2006 1.000 1.221 145,971 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.151 1.220 232,425 MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.559 1.613 3,576 2006 1.000 1.559 436 MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.120 1.237 -- 2006 1.000 1.120 5,274 MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.163 1.223 223,601 2006 1.000 1.163 236,573 MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.030 0.984 326,801 2006 1.000 1.030 192,718 Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.516 1.799 10,463 2006 1.000 1.516 10,651 MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.068 1.119 334,875 2006 1.000 1.068 356,816 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.038 1.075 220,373 2006 1.000 1.038 193,673 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.400 1.434 71,770 2006 1.000 1.400 85,237
A-7 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.488 1.526 74,022 2006 1.000 1.488 84,723 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.061 1.080 29,052 2006 1.000 1.061 29,080 MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.044 1.086 103,565 2006 1.000 1.044 61,619 MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.050 1.085 -- 2006 1.000 1.050 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.056 1.086 117,564 2006 1.000 1.056 117,564 MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.060 1.085 -- 2006 1.000 1.060 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.388 1.425 273,252 2006 1.000 1.388 294,082 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.052 1.102 114,294 2006 0.996 1.052 134,888 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.070 1.151 8,499 2006 1.000 1.070 6,214 MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.156 1.200 -- 2006 1.000 1.156 92,002 MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.076 1.109 88,843 2006 1.000 1.076 95,507 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.005 1.014 -- 2005 0.991 1.005 190,821 2004 0.995 0.991 208,200 2003 1.000 0.995 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.098 1.161 -- 2005 1.054 1.098 27,088 2004 0.979 1.054 29,728
A-8 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.123 1.146 -- 2006 1.131 1.123 244,658 2005 1.124 1.131 134,148 2004 1.047 1.124 166,975 2003 1.000 1.047 4,343 PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.083 1.161 219,910 2006 1.058 1.083 220,643 2005 1.048 1.058 240,570 2004 1.014 1.048 351,846 2003 1.000 1.014 1,174 Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 2.064 2.235 -- 2006 1.639 2.064 1,264 2005 1.482 1.639 1,268 2004 1.294 1.482 1,272 2003 1.000 1.294 1,276 Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.171 2.319 -- 2006 1.878 2.171 94,730 2005 1.780 1.878 88,519 2004 1.431 1.780 42,677 2003 1.000 1.431 7,026 The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.380 1.470 -- 2005 1.288 1.380 11,260 2004 1.227 1.288 11,841 2003 1.000 1.227 8,005 Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.183 1.262 -- 2005 1.196 1.183 3,293 2004 1.142 1.196 3,299 2003 1.000 1.142 2,652 Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.654 1.808 -- 2005 1.493 1.654 32,096 2004 1.301 1.493 32,126 2003 1.000 1.301 4,098 Travelers Equity Income Subaccount (7/03).......... 2006 1.378 1.449 -- 2005 1.338 1.378 85,963 2004 1.236 1.338 50,618 2003 1.000 1.236 8,239
A-9 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Federated High Yield Subaccount (9/03)... 2006 1.220 1.252 -- 2005 1.207 1.220 10,781 2004 1.110 1.207 5,321 2003 1.000 1.110 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.416 1.467 -- 2005 1.364 1.416 2,604 2004 1.252 1.364 2,677 2003 1.000 1.252 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.338 1.379 -- 2005 1.249 1.338 77,849 2004 1.190 1.249 86,954 2003 1.000 1.190 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.074 1.143 -- 2005 1.020 1.074 22,094 Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.014 1.018 -- 2005 1.000 1.014 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.031 1.069 -- 2005 1.000 1.031 110,150 Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.033 1.078 -- 2005 1.000 1.033 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.036 1.057 -- 2005 1.000 1.036 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.466 1.558 -- 2005 1.328 1.466 22,971 2004 1.162 1.328 31,912 2003 1.000 1.162 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.466 1.552 -- 2005 1.443 1.466 10,803 2004 1.283 1.443 12,893 2003 1.000 1.283 --
A-10 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.256 1.298 -- 2005 1.238 1.256 263,061 2004 1.127 1.238 146,167 2003 1.000 1.127 10,090 Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.167 1.262 -- 2005 1.112 1.167 24,554 2004 0.978 1.112 232 Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.560 1.793 -- 2005 1.446 1.560 6,049 2004 1.267 1.446 340 2003 1.000 1.267 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.364 1.448 -- 2005 1.306 1.364 448 2004 1.192 1.306 74 2003 1.000 1.192 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.009 1.063 -- 2005 1.000 1.009 5,274 Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.110 1.122 -- 2005 1.086 1.110 252,576 2004 0.980 1.086 228,536 Travelers Quality Bond Subaccount (8/03)........... 2006 1.036 1.027 -- 2005 1.034 1.036 344,564 2004 1.016 1.034 282,079 2003 1.000 1.016 10,788 Travelers Strategic Equity Subaccount (7/03)....... 2006 1.344 1.403 -- 2005 1.336 1.344 14,208 2004 1.230 1.336 -- 2003 1.000 1.230 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.021 1.176 -- 2005 1.000 1.021 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.979 1.123 -- 2005 1.000 0.979 654 Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.077 1.039 -- 2005 1.048 1.077 59,848 2004 1.008 1.048 23,885
A-11 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.714 1.650 158,945 2006 1.499 1.714 117,805 2005 1.461 1.499 76,102 2004 1.262 1.461 7,312 2003 1.000 1.262 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.361 1.508 -- 2006 1.293 1.361 -- 2005 1.216 1.293 -- 2004 1.189 1.216 -- 2003 1.000 1.189 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.185 1.149 -- 2005 1.058 1.185 -- 2004 1.000 1.058 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.455 1.631 -- 2006 1.238 1.455 -- 2005 1.112 1.238 -- 2004 1.000 1.112 -- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.323 1.451 -- 2006 1.230 1.323 -- 2005 1.085 1.230 -- 2004 1.000 1.085 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.236 1.266 40,280 2006 1.099 1.236 35,913 2005 1.064 1.099 35,913 2004 1.000 1.064 -- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.348 1.330 -- 2005 1.169 1.348 -- 2004 1.000 1.169 --
A-12 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.346 1.742 -- 2005 1.287 1.346 -- 2004 1.000 1.287 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.183 1.237 -- 2006 1.041 1.183 -- 2005 1.022 1.041 -- 2004 1.000 1.022 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.143 0.992 8,025 2006 1.129 1.143 6,934 2005 1.093 1.129 6,934 2004 1.000 1.093 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.200 1.301 -- 2005 1.116 1.200 -- 2004 1.000 1.116 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.202 1.336 -- 2005 1.119 1.202 -- 2004 1.000 1.119 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.370 1.567 -- 2006 1.259 1.370 -- 2005 1.106 1.259 -- 2004 1.000 1.106 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.359 1.416 -- 2006 1.224 1.359 -- 2005 1.039 1.224 -- 2004 1.000 1.039 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 1.549 1.743 12,597 2006 1.412 1.549 11,266 2005 1.226 1.412 11,266 2004 1.000 1.226 --
A-13 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.186 1.370 -- 2005 1.100 1.186 -- 2004 1.000 1.100 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 1.960 2.463 -- 2006 1.568 1.960 -- 2005 1.261 1.568 -- 2004 1.000 1.261 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.472 1.658 -- 2006 1.242 1.472 -- 2005 1.155 1.242 -- 2004 1.000 1.155 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.189 1.413 -- 2005 1.119 1.189 -- 2004 1.000 1.119 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.063 1.084 -- 2005 1.075 1.063 14,954 2004 1.008 1.075 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.122 1.155 -- 2005 1.068 1.122 -- 2004 1.000 1.068 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.181 1.402 -- 2006 1.138 1.181 -- 2005 1.038 1.138 -- 2004 1.000 1.038 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.205 1.431 -- 2006 1.145 1.205 -- 2005 1.052 1.145 -- 2004 1.000 1.052 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.288 1.374 -- 2006 1.119 1.288 -- 2005 1.086 1.119 -- 2004 1.000 1.086 --
A-14 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.142 1.272 -- 2005 1.125 1.142 -- 2004 1.000 1.125 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.253 1.201 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.222 1.258 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.222 1.251 -- 2006 1.088 1.222 -- 2005 1.069 1.088 -- 2004 1.000 1.069 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.282 1.221 -- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.294 1.312 -- 2006 1.122 1.294 -- 2005 1.079 1.122 -- 2004 1.000 1.079 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.067 1.062 -- LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.313 1.409 -- 2006 1.193 1.313 -- 2005 1.165 1.193 -- 2004 1.000 1.165 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.151 1.245 -- 2006 1.095 1.151 -- 2005 1.075 1.095 -- 2004 0.953 1.075 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.012 1.001 -- 2006 0.996 1.012 -- 2005 0.997 0.996 -- 2004 1.000 0.997 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.236 1.294 -- 2006 1.073 1.236 -- 2005 1.057 1.073 -- 2004 1.000 1.057 --
A-15 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.034 1.074 -- 2006 1.017 1.034 -- 2005 0.990 1.017 -- 2004 1.000 0.990 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.225 1.264 -- 2006 1.130 1.225 -- 2005 1.054 1.130 -- 2004 1.000 1.054 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.181 1.230 -- 2006 1.077 1.181 -- 2005 1.065 1.077 -- 2004 1.000 1.065 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.267 1.313 -- 2006 1.107 1.267 -- 2005 1.099 1.107 -- 2004 1.000 1.099 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.342 1.475 -- 2006 1.225 1.342 -- 2005 1.160 1.225 -- 2004 1.000 1.160 -- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.085 1.117 -- 2005 1.071 1.085 -- 2004 1.013 1.071 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.265 1.309 -- 2006 1.000 1.265 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.156 1.159 16,798 2006 1.000 1.156 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.370 1.432 -- 2006 1.000 1.370 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.420 1.423 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.181 1.141 -- 2006 1.000 1.181 --
A-16 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.535 1.485 -- 2006 1.000 1.535 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.356 1.726 -- 2006 1.000 1.356 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.203 1.060 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.174 1.218 -- 2006 1.000 1.174 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.130 1.178 17,459 2006 1.000 1.130 15,464 MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.072 1.087 -- 2006 1.000 1.072 -- MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.066 1.046 -- 2006 1.000 1.066 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.166 1.274 -- 2006 1.000 1.166 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.152 1.252 -- 2006 1.000 1.152 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.697 1.773 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.385 1.454 -- 2006 1.000 1.385 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.213 1.009 -- 2006 1.000 1.213 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.067 1.123 -- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.278 1.310 -- 2006 1.000 1.278 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.105 1.216 -- 2006 1.000 1.105 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.158 1.205 -- 2006 1.000 1.158 --
A-17 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.023 0.968 -- 2006 1.000 1.023 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.105 1.298 -- 2006 1.000 1.105 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.044 1.082 -- 2006 1.000 1.044 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.020 1.046 -- 2006 1.000 1.020 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.151 1.167 -- 2006 1.000 1.151 -- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.200 1.219 -- 2006 1.000 1.200 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.054 1.062 -- 2006 1.000 1.054 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.037 1.068 -- 2006 1.000 1.037 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.043 1.067 -- 2006 1.000 1.043 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.048 1.067 -- 2006 1.000 1.048 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.053 1.067 -- 2006 1.000 1.053 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.204 1.224 -- 2006 1.000 1.204 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.045 1.084 -- 2006 0.996 1.045 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.063 1.132 -- 2006 1.000 1.063 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.145 1.185 -- 2006 1.000 1.145 14,954
A-18 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.080 1.101 -- 2006 1.000 1.080 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.998 1.004 -- 2005 0.994 0.998 -- 2004 1.000 0.994 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.096 1.155 -- 2005 1.062 1.096 -- 2004 0.992 1.062 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.044 1.062 -- 2006 1.063 1.044 -- 2005 1.067 1.063 -- 2004 1.000 1.067 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.057 1.122 47,080 2006 1.043 1.057 41,235 2005 1.044 1.043 41,235 2004 1.000 1.044 -- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 1.581 1.707 -- 2006 1.268 1.581 -- 2005 1.158 1.268 -- 2004 1.000 1.158 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 1.425 1.518 -- 2006 1.245 1.425 -- 2005 1.192 1.245 -- 2004 1.000 1.192 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.118 1.188 -- 2005 1.054 1.118 -- 2004 1.000 1.054 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.020 1.084 -- 2005 1.042 1.020 15,464 2004 1.000 1.042 --
A-19 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.227 1.336 -- 2005 1.118 1.227 -- 2004 1.000 1.118 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.123 1.177 -- 2005 1.101 1.123 -- 2004 1.000 1.101 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.078 1.103 -- 2005 1.078 1.078 -- 2004 1.000 1.078 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.109 1.145 -- 2005 1.079 1.109 -- 2004 1.000 1.079 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.111 1.142 -- 2005 1.048 1.111 -- 2004 1.000 1.048 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.068 1.133 -- 2005 1.019 1.068 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.012 1.012 -- 2005 1.000 1.012 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.026 1.060 -- 2005 1.000 1.026 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.029 1.070 -- 2005 1.000 1.029 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.030 1.047 -- 2005 1.000 1.030 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.228 1.301 -- 2005 1.123 1.228 -- 2004 1.000 1.123 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.079 1.138 -- 2005 1.073 1.079 -- 2004 1.000 1.073 --
A-20 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.100 1.133 -- 2005 1.095 1.100 -- 2004 1.000 1.095 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.169 1.260 -- 2005 1.126 1.169 -- 2004 0.994 1.126 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.223 1.401 -- 2005 1.144 1.223 -- 2004 1.000 1.144 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.130 1.196 -- 2005 1.093 1.130 -- 2004 1.000 1.093 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.006 1.056 -- 2005 1.000 1.006 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.116 1.124 -- 2005 1.103 1.116 -- 2004 1.000 1.103 -- Travelers Quality Bond Subaccount (8/03)........... 2006 1.023 1.010 -- 2005 1.031 1.023 -- 2004 1.000 1.031 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.092 1.137 -- 2005 1.097 1.092 -- 2004 1.000 1.097 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.017 1.167 -- 2005 1.000 1.017 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.974 1.115 -- 2005 1.000 0.974 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.091 1.049 -- 2005 1.072 1.091 -- 2004 1.036 1.072 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.301 1.239 -- 2006 1.148 1.301 -- 2005 1.130 1.148 -- 2004 1.000 1.130 --
A-21 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.137 1.248 -- 2006 1.092 1.137 -- 2005 1.037 1.092 -- 2004 1.000 1.037 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix C for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 02/25/2005, The Travelers Series Trust-MFS Emerging Growth Portfolio merged into The Travelers Series Trust-MFS Mid Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, AllianceBernstein Variable Products Series Fund, Inc.-AllianceBernstein Large Cap Growth Portfolio was replaced by Metropolitan Series Fund, Inc.-T. Rowe Price Large Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Capital Appreciation Fund merged into Met Investors Series Trust-Janus Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Delaware VIP Trust-Delaware VIP REIT Series was replaced by Met Investors Series Trust-Neuberger Berman Real Estate Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, FAM Variable Series Fund, Inc.-Mercury Global Allocation Portfolio was replaced by Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, FAM Variable Series Fund, Inc.-Mercury Value Opportunities V.I. Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Franklin Templeton VIP Trust-Mutual Shares Securities Fund was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Franklin Templeton VIP Trust-Templeton Growth Securities Fund was replaced by Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, High Yield Bond Trust merged into Metropolitan Series Fund, Inc.-Western Asset Management High Yield Bond Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Janus Aspen Series-Janus Aspen Balanced Portfolio was replaced by Metropolitan Series Fund, Inc.-MSF Total Return Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Managed Assets Trust merged into Met Investors Series Trust-Legg Mason Partners Managed Assets Portfolio and is no longer available as a funding option. A-22 Effective on or about 05/01/2006, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Main Street Fund/VA was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Pioneer Strategic Income Portfolio merged into Met Investors Series Trust-Pioneer Strategic Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-AIM Capital Appreciation Portfolio merged into Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Convertible Securities Portfolio merged into Met Investors Series Trust-Lord Abbett Bond Debenture Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Disciplined Mid Cap Stock Portfolio merged into Met Investors Series Trust-Batterymarch Mid-Cap Stock Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Equity Income Portfolio merged into Metropolitan Series Fund, Inc.-FI Value Leaders Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Federated High Yield Portfolio merged into Met Investors Series Trust-Federated High Yield Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Federated Stock Portfolio merged into Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Large Cap Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Aggressive Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Aggressive Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Conservative Portfolio merged into Metropolitan Series Fund, Inc.- MetLife Conservative Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Moderate Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Moderate Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Moderate-Aggressive Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Moderate to Aggressive Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Moderate-Conservative Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Conservative to Moderate Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Mercury Large Cap Core Portfolio merged into Met Investors Series Trust-Mercury Large-Cap Core Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-MFS(R) Mid Cap Growth Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-MFS(R) Total Return Portfolio merged into Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-MFS(R) Value Portfolio merged into Met Investors Series Trust-MFS(R) Value Portfolio and is no longer available as a funding option. A-23 Effective on or about 05/01/2006, The Travelers Series Trust-Mondrian International Stock Portfolio merged into Met Investors Series Trust-Harris Oakmark International Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Pioneer Fund Portfolio merged into Met Investors Series Trust-Pioneer Fund Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Strategic Equity Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Style Focus Series: Small Cap Growth Portfolio merged into Met Investors Series Trust-Met/AIM Small Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Style Focus Series: Small Cap Value Portfolio merged into Met Investors Series Trust-Dreman Small- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Travelers Quality Bond Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Bond Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-U.S. Government Securities Portfolio merged into Metropolitan Series Fund, Inc.-Western Asset Management U.S. Government Portfolio and is no longer available as a funding option. Effective on or about 11/13/2006, Lazard Retirement Series, Inc.-Lazard Retirement Small Cap Portfolio was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Large Cap Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Large Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II, Inc.-Legg Mason Partners Variable Aggressive Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II- Legg Mason Partners Variable Growth and Income Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Appreciation Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Growth and Income Portfolio was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Mid- Cap Value Portfolio was replaced by Met Investors Series Trust-Lord Abbett Mid- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class A was exchanged for Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Lazard Mid-Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Metropolitan Series Funds, Inc.-Western Asset Management High Yield Bond Portfolio was replaced by Met Investors Series Trust- BlackRock High Yield Portfolio and is no longer available as a funding option. A-24 Effective on or about 04/30/2007, PIMCO Variable Insurance Trust-Real Return Portfolio was replaced by Met Investors Series Trust-PIMCO Inflation Protected Bond Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT International Equity Fund was replaced by Met Investors Series Trust-MFS(R) Research International Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT Small Cap Value Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. A-25 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX B - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT FOURTEEN FOR VARIABLE ANNUITIES ACCUMULATION UNIT VALUES (IN DOLLARS) The following Accumulation Unit Value ("AUV") information should be read in conjunction with the Separate Account's audited financial statement and notes, which are included in the Statement of Additional Information ("SAI"). The first table provides the AUV information for the MINIMUM Separate Account Charge available under the contract. The second table provides the AUV information for the MAXIMUM Separate Account Charge available under the contract. Please refer to the Fee Table section of this prospectus for more information on Separate Account Charges. PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (6/03)................................... 2006 1.387 1.358 -- 2005 1.225 1.387 5,032 2004 1.147 1.225 -- 2003 1.000 1.147 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.972 2.232 152,222 2006 1.661 1.972 138,416 2005 1.477 1.661 142,244 2004 1.321 1.477 94,077 2003 1.000 1.321 37,036 American Funds Growth Subaccount (Class 2) (5/03).. 2007 1.738 1.925 1,104,963 2006 1.600 1.738 1,213,983 2005 1.397 1.600 1,148,861 2004 1.260 1.397 589,788 2003 1.000 1.260 175,834 American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.620 1.678 1,316,835 2006 1.427 1.620 1,183,685 2005 1.368 1.427 1,008,839 2004 1.258 1.368 421,664 2003 1.000 1.258 261,983 Capital Appreciation Fund Capital Appreciation Fund (6/03)................... 2006 1.671 1.654 -- 2005 1.434 1.671 144,925 2004 1.217 1.434 59,134 2003 1.000 1.217 22,095
B-1 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.731 2.262 -- 2005 1.638 1.731 165,437 2004 1.265 1.638 163,900 2003 1.000 1.265 165,625 Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (7/03)..................................... 2007 1.434 1.514 87,989 2006 1.249 1.434 88,871 2005 1.214 1.249 100,461 2004 1.172 1.214 100,429 2003 1.000 1.172 74,699 Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.505 1.319 95,698 2006 1.471 1.505 99,693 2005 1.411 1.471 99,284 2004 1.286 1.411 117,603 2003 1.000 1.286 75,726 FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.319 1.435 -- 2005 1.214 1.319 42,248 2004 1.079 1.214 9,394 2003 1.000 1.079 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.316 1.468 -- 2005 1.213 1.316 28,923 2004 1.072 1.213 21,992 2003 1.000 1.072 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (6/03)............................................. 2007 1.778 2.056 202,232 2006 1.619 1.778 210,187 2005 1.408 1.619 169,862 2004 1.241 1.408 93,181 2003 1.000 1.241 19,422 VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (8/03)........................... 2007 1.580 1.662 4,627 2006 1.409 1.580 4,734 2005 1.184 1.409 11,511 2004 1.186 1.184 -- 2003 1.000 1.186 --
B-2 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Mid Cap Subaccount (Service Class 2) (5/03).... 2007 2.236 2.541 236,862 2006 2.018 2.236 237,362 2005 1.735 2.018 248,211 2004 1.412 1.735 108,517 2003 1.000 1.412 40,694 Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.461 1.705 -- 2005 1.341 1.461 743,635 2004 1.208 1.341 142,873 2003 1.000 1.208 39,577 FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.885 3.662 183,127 2006 2.285 2.885 175,633 2005 1.820 2.285 160,472 2004 1.480 1.820 23,838 2003 1.000 1.480 279 FTVIPT Templeton Foreign Securities Subaccount (Class 2) (6/03)................................... 2007 2.033 2.314 932,900 2006 1.699 2.033 933,397 2005 1.564 1.699 915,542 2004 1.339 1.564 1,032 2003 1.127 1.339 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.630 1.957 -- 2005 1.519 1.630 212,236 2004 1.329 1.519 129,931 2003 1.000 1.329 27,829 High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.062 1.087 -- 2005 1.064 1.062 102,579 2004 0.985 1.064 14,458 Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (5/03)............................................. 2006 1.241 1.282 -- 2005 1.169 1.241 24,627 2004 1.095 1.169 24,643 2003 1.000 1.095 12,940
B-3 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Global Life Sciences Subaccount (Service Shares) (6/03)............................ 2007 1.558 1.869 -- 2006 1.487 1.558 -- 2005 1.343 1.487 -- 2004 1.193 1.343 10,447 2003 1.000 1.193 10,447 Janus Aspen Global Technology Subaccount (Service Shares) (8/03)..................................... 2007 1.607 1.927 17,236 2006 1.512 1.607 17,241 2005 1.375 1.512 18,622 2004 1.387 1.375 14,101 2003 1.000 1.387 6,694 Janus Aspen Worldwide Growth Subaccount (Service Shares) (6/03)..................................... 2007 1.563 1.685 8,418 2006 1.345 1.563 6,454 2005 1.293 1.345 8,720 2004 1.255 1.293 8,257 2003 1.000 1.255 5,185 Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (6/03)...... 2006 1.550 1.742 -- 2005 1.512 1.550 431,893 2004 1.335 1.512 11,386 2003 1.000 1.335 20,495 Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.668 1.610 29,792 LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.543 1.599 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.536 1.589 203,870 2006 1.354 1.536 209,728 2005 1.318 1.354 250,033 2004 1.213 1.318 222,652 2003 1.000 1.213 185,884 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.739 1.667 90,477 LMPVET Investors Subaccount (Class I) (6/03)....... 2007 1.698 1.738 96,266 2006 1.456 1.698 99,460 2005 1.387 1.456 105,690 2004 1.275 1.387 118,997 2003 1.000 1.275 61,697 LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.430 1.433 65,427
B-4 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Small Cap Growth Subaccount (Class I) (5/03)............................................. 2007 1.866 2.023 54,692 2006 1.679 1.866 98,991 2005 1.624 1.679 71,798 2004 1.431 1.624 74,428 2003 1.000 1.431 39,511 LMPVET Social Awareness Subaccount (8/04).......... 2007 1.143 1.250 -- 2006 1.077 1.143 -- 2005 1.047 1.077 -- 2004 0.920 1.047 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (1/04).... 2007 1.031 1.030 151,993 2006 1.005 1.031 167,867 2005 0.996 1.005 176,247 2004 0.999 0.996 185,835 2003 1.000 0.999 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (6/03)......... 2007 1.672 1.755 -- 2006 1.436 1.672 88,905 2005 1.400 1.436 88,460 2004 1.312 1.400 92,696 2003 1.000 1.312 56,649 LMPVPI Large Cap Growth Subaccount (Class I) (6/03)............................................. 2007 1.382 1.440 -- 2006 1.345 1.382 70,762 2005 1.297 1.345 74,172 2004 1.309 1.297 77,067 2003 1.000 1.309 25,262 Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (5/03)............................................. 2007 1.625 1.683 -- 2006 1.484 1.625 30,737 2005 1.370 1.484 31,424 2004 1.274 1.370 60,400 2003 1.000 1.274 15,899 LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.486 1.553 -- 2006 1.342 1.486 -- 2005 1.313 1.342 6,505 2004 1.230 1.313 22,447 2003 1.000 1.230 22,497
B-5 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (6/03)............................................. 2007 1.625 1.689 -- 2006 1.406 1.625 89,259 2005 1.381 1.406 96,279 2004 1.244 1.381 88,933 2003 1.000 1.244 44,421 Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.816 2.003 -- 2006 1.642 1.816 205,109 2005 1.539 1.642 175,352 2004 1.259 1.539 126,076 2003 1.000 1.259 34,477 Managed Assets Trust Managed Assets Trust (5/04)........................ 2006 1.087 1.122 -- 2005 1.062 1.087 -- 2004 0.983 1.062 2,540 Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.723 1.801 64,826 2006 1.000 1.723 58,543 MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.321 1.338 201,826 2006 1.000 1.321 151,148 MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.651 1.732 -- 2006 1.000 1.651 11,126 MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.718 1.732 5,915 MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.198 1.170 19,371 2006 1.000 1.198 6,646 MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.978 1.933 34,736 2006 1.000 1.978 79,416 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.698 2.183 143,455 2006 1.000 1.698 117,781 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.223 1.085 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.187 1.244 -- 2006 1.000 1.187 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.323 1.394 61,359 2006 1.000 1.323 208,798
B-6 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.079 1.105 832,888 2006 1.000 1.079 968,916 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.073 1.064 340,399 2006 1.000 1.073 8,195 MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.454 1.604 66,262 2006 1.000 1.454 11,778 MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.168 1.283 16,069 2006 1.000 1.168 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.224 2.337 10,914 MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.396 1.481 156,173 2006 1.000 1.396 68,261 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.221 1.026 184,035 2006 1.000 1.221 248,953 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.151 1.220 377,345 MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.559 1.613 7,395 2006 1.000 1.559 2,171 MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.120 1.237 -- 2006 1.000 1.120 2,150 MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.163 1.223 55,201 2006 1.000 1.163 31,005 MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.030 0.984 793,139 2006 1.000 1.030 679,740 Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.516 1.799 62,998 2006 1.000 1.516 29,695 MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.082 1.119 426,078 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.038 1.075 272,073 2006 1.000 1.038 349,783 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.400 1.434 66,199 2006 1.000 1.400 62,751
B-7 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.488 1.526 235,425 2006 1.000 1.488 250,133 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.061 1.080 3,031 2006 1.000 1.061 3,045 MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.044 1.086 -- 2006 1.000 1.044 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.050 1.085 -- 2006 1.000 1.050 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.056 1.086 66,233 2006 1.000 1.056 68,048 MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.060 1.085 136,027 2006 1.000 1.060 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.388 1.425 637,837 2006 1.000 1.388 534,155 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.052 1.102 506,421 2006 0.996 1.052 368,624 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.070 1.151 6,944 2006 1.000 1.070 6,950 MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.156 1.200 -- 2006 1.000 1.156 130,929 MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.076 1.109 20,293 2006 1.000 1.076 20,041 Money Market Portfolio Money Market Subaccount (6/03)..................... 2006 1.005 1.014 -- 2005 0.991 1.005 359,678 2004 0.995 0.991 377,425 2003 1.000 0.995 600,572 Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (6/04)..................................... 2006 1.098 1.161 -- 2005 1.054 1.098 -- 2004 0.993 1.054 --
B-8 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (6/03)...................................... 2007 1.123 1.146 -- 2006 1.131 1.123 469,720 2005 1.124 1.131 492,914 2004 1.047 1.124 437,688 2003 1.000 1.047 47,635 PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.083 1.161 1,280,500 2006 1.058 1.083 1,372,395 2005 1.048 1.058 1,476,618 2004 1.014 1.048 1,753,870 2003 1.000 1.014 1,692,427 Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (5/03)......................................... 2007 2.064 2.235 -- 2006 1.639 2.064 5,633 2005 1.482 1.639 19,632 2004 1.294 1.482 19,671 2003 1.000 1.294 19,436 Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.171 2.319 -- 2006 1.878 2.171 175,102 2005 1.780 1.878 199,627 2004 1.431 1.780 126,858 2003 1.000 1.431 62,905 The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (6/03)............................................. 2006 1.380 1.470 -- 2005 1.288 1.380 11,694 2004 1.227 1.288 23,433 2003 1.000 1.227 37,898 Travelers Convertible Securities Subaccount (6/03)............................................. 2006 1.183 1.262 -- 2005 1.196 1.183 270,474 2004 1.142 1.196 164,856 2003 1.000 1.142 100,931 Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.654 1.808 -- 2005 1.493 1.654 71,883 2004 1.301 1.493 81,623 2003 1.000 1.301 38,923 Travelers Equity Income Subaccount (6/03).......... 2006 1.378 1.449 -- 2005 1.338 1.378 266,115 2004 1.236 1.338 246,109 2003 1.000 1.236 57,194
B-9 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Federated High Yield Subaccount (6/03)... 2006 1.220 1.252 -- 2005 1.207 1.220 150,378 2004 1.110 1.207 184,369 2003 1.000 1.110 154,529 Travelers Federated Stock Subaccount (6/03)........ 2006 1.416 1.467 -- 2005 1.364 1.416 2,356 2004 1.252 1.364 2,360 2003 1.000 1.252 2,365 Travelers Large Cap Subaccount (6/03).............. 2006 1.338 1.379 -- 2005 1.249 1.338 61,960 2004 1.190 1.249 54,442 2003 1.000 1.190 52,765 Travelers Managed Allocation Series: Aggressive Subaccount (6/05).................................. 2006 1.074 1.143 -- 2005 1.000 1.074 -- Travelers Managed Allocation Series: Conservative Subaccount (1/70).................................. 2006 1.014 1.018 -- 2005 1.000 1.014 -- Travelers Managed Allocation Series: Moderate Subaccount (10/05)................................. 2006 1.031 1.069 -- 2005 0.990 1.031 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (8/05)....................... 2006 1.033 1.078 -- 2005 1.000 1.033 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (5/05)..................... 2006 1.036 1.057 -- 2005 1.000 1.036 -- Travelers Mercury Large Cap Core Subaccount (6/03)............................................. 2006 1.466 1.558 -- 2005 1.328 1.466 11,143 2004 1.162 1.328 5,125 2003 1.000 1.162 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.466 1.552 -- 2005 1.443 1.466 41,320 2004 1.283 1.443 40,812 2003 1.000 1.283 36,255
B-10 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers MFS(R) Total Return Subaccount (6/03).... 2006 1.256 1.298 -- 2005 1.238 1.256 640,974 2004 1.127 1.238 480,980 2003 1.000 1.127 272,384 Travelers MFS(R) Value Subaccount (6/04)........... 2006 1.167 1.262 -- 2005 1.112 1.167 29,975 2004 0.995 1.112 -- Travelers Mondrian International Stock Subaccount (6/03)............................................. 2006 1.560 1.793 -- 2005 1.446 1.560 53,347 2004 1.267 1.446 41,940 2003 1.000 1.267 11,315 Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.364 1.448 -- 2005 1.306 1.364 2,175 2004 1.192 1.306 2,094 2003 1.000 1.192 -- Travelers Pioneer Mid Cap Value Subaccount (9/05).. 2006 1.009 1.063 -- 2005 0.980 1.009 2,111 Travelers Pioneer Strategic Income Subaccount (7/04)............................................. 2006 1.110 1.122 -- 2005 1.086 1.110 51,003 2004 1.004 1.086 -- Travelers Quality Bond Subaccount (6/03)........... 2006 1.036 1.027 -- 2005 1.034 1.036 536,840 2004 1.016 1.034 585,269 2003 1.000 1.016 317,950 Travelers Strategic Equity Subaccount (6/03)....... 2006 1.344 1.403 -- 2005 1.336 1.344 16,156 2004 1.230 1.336 17,850 2003 1.000 1.230 18,019 Travelers Style Focus Series: Small Cap Growth Subaccount (1/70).................................. 2006 1.021 1.176 -- 2005 1.000 1.021 -- Travelers Style Focus Series: Small Cap Value Subaccount (1/70).................................. 2006 0.979 1.123 -- 2005 1.000 0.979 -- Travelers U.S. Government Securities Subaccount (7/04)............................................. 2006 1.077 1.039 -- 2005 1.048 1.077 19,797 2004 1.006 1.048 2,622
B-11 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.714 1.650 155,460 2006 1.499 1.714 106,081 2005 1.461 1.499 111,623 2004 1.262 1.461 78,731 2003 1.000 1.262 24,388 Van Kampen LIT Enterprise Subaccount (Class II) (6/03)............................................. 2007 1.361 1.508 -- 2006 1.293 1.361 -- 2005 1.216 1.293 -- 2004 1.189 1.216 4,194 2003 1.000 1.189 23,162
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (6/03)................................... 2006 1.185 1.149 -- 2005 1.058 1.185 -- 2004 1.000 1.058 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.455 1.631 -- 2006 1.238 1.455 -- 2005 1.112 1.238 -- 2004 1.000 1.112 -- American Funds Growth Subaccount (Class 2) (5/03).. 2007 1.323 1.451 -- 2006 1.230 1.323 -- 2005 1.085 1.230 -- 2004 1.000 1.085 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.236 1.266 -- 2006 1.099 1.236 -- 2005 1.064 1.099 -- 2004 1.000 1.064 -- Capital Appreciation Fund Capital Appreciation Fund (6/03)................... 2006 1.348 1.330 -- 2005 1.169 1.348 -- 2004 1.000 1.169 --
B-12 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.346 1.742 -- 2005 1.287 1.346 -- 2004 1.000 1.287 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (7/03)..................................... 2007 1.183 1.237 -- 2006 1.041 1.183 -- 2005 1.022 1.041 -- 2004 1.000 1.022 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.143 0.992 -- 2006 1.129 1.143 -- 2005 1.093 1.129 -- 2004 1.000 1.093 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.200 1.301 -- 2005 1.116 1.200 -- 2004 1.000 1.116 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.202 1.336 -- 2005 1.119 1.202 -- 2004 1.000 1.119 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (6/03)............................................. 2007 1.370 1.567 -- 2006 1.259 1.370 -- 2005 1.106 1.259 -- 2004 1.000 1.106 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (8/03)........................... 2007 1.359 1.416 -- 2006 1.224 1.359 -- 2005 1.039 1.224 -- 2004 1.000 1.039 -- VIP Mid Cap Subaccount (Service Class 2) (5/03).... 2007 1.549 1.743 -- 2006 1.412 1.549 -- 2005 1.226 1.412 -- 2004 1.000 1.226 --
B-13 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.186 1.370 -- 2005 1.100 1.186 -- 2004 1.000 1.100 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 1.960 2.463 -- 2006 1.568 1.960 -- 2005 1.261 1.568 -- 2004 1.000 1.261 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (6/03)................................... 2007 1.472 1.658 -- 2006 1.242 1.472 -- 2005 1.155 1.242 -- 2004 1.000 1.155 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.189 1.413 -- 2005 1.119 1.189 -- 2004 1.000 1.119 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.063 1.084 -- 2005 1.075 1.063 -- 2004 1.000 1.075 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (5/03)............................................. 2006 1.122 1.155 -- 2005 1.068 1.122 -- 2004 1.000 1.068 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (6/03)............................ 2007 1.181 1.402 -- 2006 1.138 1.181 -- 2005 1.038 1.138 -- 2004 1.000 1.038 -- Janus Aspen Global Technology Subaccount (Service Shares) (8/03)..................................... 2007 1.205 1.431 -- 2006 1.145 1.205 -- 2005 1.052 1.145 -- 2004 1.000 1.052 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (6/03)..................................... 2007 1.288 1.374 -- 2006 1.119 1.288 -- 2005 1.086 1.119 -- 2004 1.000 1.086 --
B-14 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (6/03)...... 2006 1.142 1.272 -- 2005 1.125 1.142 -- 2004 1.000 1.125 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.253 1.201 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.222 1.258 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.222 1.251 -- 2006 1.088 1.222 -- 2005 1.069 1.088 -- 2004 1.000 1.069 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.282 1.221 -- LMPVET Investors Subaccount (Class I) (6/03)....... 2007 1.294 1.312 -- 2006 1.122 1.294 -- 2005 1.079 1.122 -- 2004 1.000 1.079 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.067 1.062 -- LMPVET Small Cap Growth Subaccount (Class I) (5/03)............................................. 2007 1.313 1.409 -- 2006 1.193 1.313 -- 2005 1.165 1.193 -- 2004 1.000 1.165 -- LMPVET Social Awareness Subaccount (8/04).......... 2007 1.151 1.245 -- 2006 1.095 1.151 -- 2005 1.075 1.095 -- 2004 0.948 1.075 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (1/04).... 2007 1.012 1.001 -- 2006 0.996 1.012 -- 2005 0.997 0.996 -- 2004 1.000 0.997 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (6/03)......... 2007 1.236 1.294 -- 2006 1.073 1.236 -- 2005 1.057 1.073 -- 2004 1.000 1.057 --
B-15 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVPI Large Cap Growth Subaccount (Class I) (6/03)............................................. 2007 1.034 1.074 -- 2006 1.017 1.034 -- 2005 0.990 1.017 -- 2004 1.000 0.990 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (5/03)............................................. 2007 1.225 1.264 -- 2006 1.130 1.225 -- 2005 1.054 1.130 -- 2004 1.000 1.054 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.181 1.230 -- 2006 1.077 1.181 -- 2005 1.065 1.077 -- 2004 1.000 1.065 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (6/03)............................................. 2007 1.267 1.313 -- 2006 1.107 1.267 -- 2005 1.099 1.107 -- 2004 1.000 1.099 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.342 1.475 -- 2006 1.225 1.342 -- 2005 1.160 1.225 -- 2004 1.000 1.160 -- Managed Assets Trust Managed Assets Trust (5/04)........................ 2006 1.085 1.117 -- 2005 1.071 1.085 -- 2004 1.000 1.071 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.265 1.309 -- 2006 1.000 1.265 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.156 1.159 -- 2006 1.000 1.156 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.370 1.432 -- 2006 1.000 1.370 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.420 1.423 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.181 1.141 -- 2006 1.000 1.181 --
B-16 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.535 1.485 -- 2006 1.000 1.535 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.356 1.726 -- 2006 1.000 1.356 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.203 1.060 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.174 1.218 -- 2006 1.000 1.174 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.130 1.178 -- 2006 1.000 1.130 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.072 1.087 -- 2006 1.000 1.072 -- MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.066 1.046 -- 2006 1.000 1.066 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.166 1.274 -- 2006 1.000 1.166 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.152 1.252 -- 2006 1.000 1.152 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.697 1.773 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.385 1.454 -- 2006 1.000 1.385 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.213 1.009 -- 2006 1.000 1.213 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.067 1.123 -- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.278 1.310 -- 2006 1.000 1.278 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.105 1.216 -- 2006 1.000 1.105 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.158 1.205 -- 2006 1.000 1.158 --
B-17 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.023 0.968 -- 2006 1.000 1.023 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.105 1.298 -- 2006 1.000 1.105 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.054 1.082 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.020 1.046 -- 2006 1.000 1.020 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.151 1.167 -- 2006 1.000 1.151 -- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.200 1.219 -- 2006 1.000 1.200 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.054 1.062 -- 2006 1.000 1.054 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.037 1.068 -- 2006 1.000 1.037 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.043 1.067 -- 2006 1.000 1.043 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.048 1.067 -- 2006 1.000 1.048 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.053 1.067 -- 2006 1.000 1.053 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.204 1.224 -- 2006 1.000 1.204 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.045 1.084 -- 2006 0.996 1.045 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.063 1.132 -- 2006 1.000 1.063 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.145 1.185 -- 2006 1.000 1.145 --
B-18 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.080 1.101 -- 2006 1.000 1.080 -- Money Market Portfolio Money Market Subaccount (6/03)..................... 2006 0.998 1.004 -- 2005 0.994 0.998 -- 2004 1.000 0.994 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (6/04)..................................... 2006 1.096 1.155 -- 2005 1.062 1.096 -- 2004 1.007 1.062 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (6/03)...................................... 2007 1.044 1.062 -- 2006 1.063 1.044 -- 2005 1.067 1.063 -- 2004 1.000 1.067 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.057 1.122 -- 2006 1.043 1.057 -- 2005 1.044 1.043 -- 2004 1.000 1.044 -- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (5/03)......................................... 2007 1.581 1.707 -- 2006 1.268 1.581 -- 2005 1.158 1.268 -- 2004 1.000 1.158 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 1.425 1.518 -- 2006 1.245 1.425 -- 2005 1.192 1.245 -- 2004 1.000 1.192 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (6/03)............................................. 2006 1.118 1.188 -- 2005 1.054 1.118 -- 2004 1.000 1.054 -- Travelers Convertible Securities Subaccount (6/03)............................................. 2006 1.020 1.084 -- 2005 1.042 1.020 -- 2004 1.000 1.042 --
B-19 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.227 1.336 -- 2005 1.118 1.227 -- 2004 1.000 1.118 -- Travelers Equity Income Subaccount (6/03).......... 2006 1.123 1.177 -- 2005 1.101 1.123 -- 2004 1.000 1.101 -- Travelers Federated High Yield Subaccount (6/03)... 2006 1.078 1.103 -- 2005 1.078 1.078 -- 2004 1.000 1.078 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.109 1.145 -- 2005 1.079 1.109 -- 2004 1.000 1.079 -- Travelers Large Cap Subaccount (6/03).............. 2006 1.111 1.142 -- 2005 1.048 1.111 -- 2004 1.000 1.048 -- Travelers Managed Allocation Series: Aggressive Subaccount (6/05).................................. 2006 1.068 1.133 -- 2005 1.000 1.068 -- Travelers Managed Allocation Series: Conservative Subaccount (1/70).................................. 2006 1.012 1.012 -- 2005 1.000 1.012 -- Travelers Managed Allocation Series: Moderate Subaccount (10/05)................................. 2006 1.026 1.060 -- 2005 0.987 1.026 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (8/05)....................... 2006 1.029 1.070 -- 2005 1.000 1.029 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (5/05)..................... 2006 1.030 1.047 -- 2005 1.000 1.030 -- Travelers Mercury Large Cap Core Subaccount (6/03)............................................. 2006 1.228 1.301 -- 2005 1.123 1.228 -- 2004 1.000 1.123 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.079 1.138 -- 2005 1.073 1.079 -- 2004 1.000 1.073 --
B-20 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers MFS(R) Total Return Subaccount (6/03).... 2006 1.100 1.133 -- 2005 1.095 1.100 -- 2004 1.000 1.095 -- Travelers MFS(R) Value Subaccount (6/04)........... 2006 1.169 1.260 -- 2005 1.126 1.169 -- 2004 1.012 1.126 -- Travelers Mondrian International Stock Subaccount (6/03)............................................. 2006 1.223 1.401 -- 2005 1.144 1.223 -- 2004 1.000 1.144 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.130 1.196 -- 2005 1.093 1.130 -- 2004 1.000 1.093 -- Travelers Pioneer Mid Cap Value Subaccount (9/05).. 2006 1.006 1.056 -- 2005 0.979 1.006 -- Travelers Pioneer Strategic Income Subaccount (7/04)............................................. 2006 1.116 1.124 -- 2005 1.103 1.116 -- 2004 1.024 1.103 -- Travelers Quality Bond Subaccount (6/03)........... 2006 1.023 1.010 -- 2005 1.031 1.023 -- 2004 1.000 1.031 -- Travelers Strategic Equity Subaccount (6/03)....... 2006 1.092 1.137 -- 2005 1.097 1.092 -- 2004 1.000 1.097 -- Travelers Style Focus Series: Small Cap Growth Subaccount (1/70).................................. 2006 1.017 1.167 -- 2005 1.000 1.017 -- Travelers Style Focus Series: Small Cap Value Subaccount (1/70).................................. 2006 0.974 1.115 -- 2005 1.000 0.974 -- Travelers U.S. Government Securities Subaccount (7/04)............................................. 2006 1.091 1.049 -- 2005 1.072 1.091 -- 2004 1.034 1.072 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.301 1.239 -- 2006 1.148 1.301 -- 2005 1.130 1.148 -- 2004 1.000 1.130 --
B-21 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen LIT Enterprise Subaccount (Class II) (6/03)............................................. 2007 1.137 1.248 -- 2006 1.092 1.137 -- 2005 1.037 1.092 -- 2004 1.000 1.037 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix C for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 02/25/2005, The Travelers Series Trust-MFS Emerging Growth Portfolio merged into The Travelers Series Trust-MFS Mid Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, AllianceBernstein Variable Products Series Fund, Inc.-AllianceBernstein Large Cap Growth Portfolio was replaced by Metropolitan Series Fund, Inc.-T. Rowe Price Large Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Capital Appreciation Fund merged into Met Investors Series Trust-Janus Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Delaware VIP Trust-Delaware VIP REIT Series was replaced by Met Investors Series Trust-Neuberger Berman Real Estate Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, FAM Variable Series Fund, Inc.-Mercury Global Allocation Portfolio was replaced by Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, FAM Variable Series Fund, Inc.-Mercury Value Opportunities V.I. Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Franklin Templeton VIP Trust-Mutual Shares Securities Fund was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Franklin Templeton VIP Trust-Templeton Growth Securities Fund was replaced by Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, High Yield Bond Trust merged into Metropolitan Series Fund, Inc.-Western Asset Management High Yield Bond Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Janus Aspen Series-Janus Aspen Balanced Portfolio was replaced by Metropolitan Series Fund, Inc.-MSF Total Return Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Managed Assets Trust merged into Met Investors Series Trust-Legg Mason Partners Managed Assets Portfolio and is no longer available as a funding option. B-22 Effective on or about 05/01/2006, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Main Street Fund/VA was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Pioneer Strategic Income Portfolio merged into Met Investors Series Trust-Pioneer Strategic Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-AIM Capital Appreciation Portfolio merged into Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Convertible Securities Portfolio merged into Met Investors Series Trust-Lord Abbett Bond Debenture Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Disciplined Mid Cap Stock Portfolio merged into Met Investors Series Trust-Batterymarch Mid-Cap Stock Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Equity Income Portfolio merged into Metropolitan Series Fund, Inc.-FI Value Leaders Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Federated High Yield Portfolio merged into Met Investors Series Trust-Federated High Yield Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Federated Stock Portfolio merged into Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Large Cap Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Aggressive Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Aggressive Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Conservative Portfolio merged into Metropolitan Series Fund, Inc.- MetLife Conservative Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Moderate Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Moderate Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Moderate-Aggressive Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Moderate to Aggressive Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Moderate-Conservative Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Conservative to Moderate Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Mercury Large Cap Core Portfolio merged into Met Investors Series Trust-Mercury Large-Cap Core Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-MFS(R) Mid Cap Growth Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-MFS(R) Total Return Portfolio merged into Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-MFS(R) Value Portfolio merged into Met Investors Series Trust-MFS(R) Value Portfolio and is no longer available as a funding option. B-23 Effective on or about 05/01/2006, The Travelers Series Trust-Mondrian International Stock Portfolio merged into Met Investors Series Trust-Harris Oakmark International Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Pioneer Fund Portfolio merged into Met Investors Series Trust-Pioneer Fund Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Strategic Equity Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Style Focus Series: Small Cap Growth Portfolio merged into Met Investors Series Trust-Met/AIM Small Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Style Focus Series: Small Cap Value Portfolio merged into Met Investors Series Trust-Dreman Small- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Travelers Quality Bond Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Bond Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-U.S. Government Securities Portfolio merged into Metropolitan Series Fund, Inc.-Western Asset Management U.S. Government Portfolio and is no longer available as a funding option. Effective on or about 11/13/2006, Lazard Retirement Series, Inc.-Lazard Retirement Small Cap Portfolio was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Large Cap Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Large Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II, Inc.-Legg Mason Partners Variable Aggressive Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II- Legg Mason Partners Variable Growth and Income Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Appreciation Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Growth and Income Portfolio was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Mid- Cap Value Portfolio was replaced by Met Investors Series Trust-Lord Abbett Mid- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class A was exchanged for Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Lazard Mid-Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Metropolitan Series Funds, Inc.-Western Asset Management High Yield Bond Portfolio was replaced by Met Investors Series Trust- BlackRock High Yield Portfolio and is no longer available as a funding option. B-24 Effective on or about 04/30/2007, PIMCO Variable Insurance Trust-Real Return Portfolio was replaced by Met Investors Series Trust-PIMCO Inflation Protected Bond Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT International Equity Fund was replaced by Met Investors Series Trust-MFS(R) Research International Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT Small Cap Value Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. B-25 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX C - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION REGARDING UNDERLYING FUNDS Certain Underlying Funds were subject to a merger, substitution or other change. The chart below identifies the former name and new name of each of these Underlying Funds, and the former name and new name of the trust of which the Underlying Fund is a part. UNDERLYING FUND NAME CHANGE
FORMER NAME NEW NAME - --------------------------------------------- --------------------------------------------- MET INVESTORS SERIES TRUST MET INVESTORS SERIES TRUST Neuberger Berman Real Estate Portfolio Clarion Global Real Estate Portfolio
UNDERLYING FUND MERGERS The following former Underlying Funds were merged with the new Underlying Funds.
FORMER UNDERLYING FUND/TRUST NEW UNDERLYING FUND/TRUST - --------------------------------------------- --------------------------------------------- MET INVESTORS SERIES TRUST MET INVESTORS SERIES TRUST Batterymarch Mid-Cap Stock Portfolio Lazard Mid Cap Portfolio MET INVESTORS SERIES TRUST METROPOLITAN SERIES FUND, INC. MFS((R) )Value Portfolio MFS((R) )Value Portfolio
UNDERLYING FUND SUBSTITUTIONS The following new Underlying Funds were substituted for the former Underlying Funds.
FORMER UNDERLYING FUND NEW UNDERLYING FUND - --------------------------------------------- --------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND METROPOLITAN SERIES FUND, INC. Appreciation Portfolio Davis Venture Value Portfolio DREYFUS VARIABLE INVESTMENT FUND METROPOLITAN SERIES FUND, INC. Developing Leaders Portfolio T. Rowe Price Small Cap Growth Portfolio FRANKLIN TEMPLETON VARIABLE INSURANCE MET INVESTORS SERIES TRUST PRODUCTS TRUST Templeton Developing Markets Securities MFS(R) Emerging Markets Equity Portfolio Fund JANUS ASPEN SERIES METROPOLITAN SERIES FUND, INC. Worldwide Growth Portfolio Oppenheimer Global Equity Portfolio
C-1 APPENDIX D - -------------------------------------------------------------------------------- THE FIXED ACCOUNT The Fixed Account is part of the Company's general account assets. These general account assets include all assets of the Company other than those held in the Separate Accounts sponsored by the Company or its affiliates. The staff of the SEC does not generally review the disclosure in the prospectus relating to the Fixed Account. Disclosure regarding the Fixed Account and the general account may, however, be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in the prospectus. Under the Fixed Account, the Company assumes the risk of investment gain or loss, guarantees a specified interest rate, and guarantees a specified periodic Annuity Payment. The investment gain or loss of the Separate Account or any of the funding options does not affect the Fixed Account Contract Value, or the dollar amount of fixed Annuity Payments made under any payout option. We guarantee that, at any time, the Fixed Account Contract Value will not be less than the amount of the Purchase Payments allocated to the Fixed Account, plus interest credited as described below, less any applicable premium taxes or prior withdrawals. Purchase Payments allocated to the Fixed Account and any transfers made to the Fixed Account become part of the Company's general account, which supports insurance and annuity obligations. Where permitted by state law, we reserve the right to restrict Purchase Payments into the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified in your Contract. The general account and any interest therein are not registered under, or subject to the provisions of, the Securities Act of 1933 or Investment Company Act of 1940. We will invest the assets of the Fixed Account at our discretion. Investment income from such Fixed Account assets will be allocated to us and to the Contracts participating in the Fixed Account. Investment income from the Fixed Account allocated to us includes compensation for mortality and expense risks borne by us in connection with Fixed Account Contracts. The amount of such investment income allocated to the Contracts will vary from year to year in our sole discretion at such rate or rates as we prospectively declare from time to time. We guarantee the initial rate for any allocations into the Fixed Account for one year from the date of such allocation. We guarantee subsequent renewal rates for the calendar quarter. We also guarantee that for the life of the Contract we will credit interest at a rate not less than the minimum interest rate allowed by state law. We reserve the right to change the rate subject to applicable state law. We will determine any interest we credit to amounts allocated to the Fixed Account in excess of the minimum guaranteed rate in our sole discretion. You assume the risk that interest credited to the Fixed Account may not exceed the minimum guaranteed rate for any given year. We have no specific formula for determining the interest rate. Some factors we may consider are regulatory and tax requirements, general economic trends and competitive factors. TRANSFERS You may make transfers from the Fixed Account to any available Variable Funding Option(s) twice a year during the 30 days following the semiannual anniversary of the Contract Date. We limit transfers to an amount of up to 15% of the Fixed Account Contract Value on the semiannual Contract Date anniversary. (This restriction does not apply to transfers under the Dollar Cost Averaging Program.) Amounts previously transferred from the Fixed Account to Variable Funding Options may not be transferred back to the Fixed Account for a period of at least six months from the date of transfer. We reserve the right to waive either of these restrictions. Where permitted by state law, we reserve the right to restrict transfers into the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified in your Contract. Automated transfers from the Fixed Account to any of the Variable Funding Options may begin at any time. Automated transfers from the Fixed Account may not deplete your Fixed Account value in a period of less than twelve months from your enrollment in the Dollar Cost Averaging Program. D-1 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX E - -------------------------------------------------------------------------------- WAIVER OF WITHDRAWAL CHARGE FOR NURSING HOME CONFINEMENT (AVAILABLE ONLY IF THE OWNER IS AGE 70 OR YOUNGER ON THE DATE THE CONTRACT IS ISSUED.) If, after the first Contract Year and before the Maturity Date, and you begin confinement in an eligible nursing home, you may surrender or make withdrawal, subject to the maximum withdrawal amount described below, without incurring a withdrawal charge. In order for the Company to waive the withdrawal charge, the withdrawal must be made during continued confinement in an eligible nursing home after the qualifying period has been satisfied, or within sixty (60) days after such confinement ends. The qualifying period is confinement in an eligible nursing home for ninety (90) consecutive days. We will require proof of confinement in a form satisfactory to us, which may include certification by a licensed physician that such confinement is medically necessary. An eligible nursing home is defined as an institution or special nursing unit of a hospital which: (a) is Medicare approved as a provider of skilled nursing care services; and (b) is not, other than in name only, an acute care hospital, a home for the aged, a retirement home, a rest home, a community living center, or a place mainly for the treatment of alcoholism. OR Meets all of the following standards: (a) is licensed as a nursing care facility by the state in which it is licensed; (b) is either a freestanding facility or a distinct part of another facility such as a ward, wing, unit or swing-bed of a hospital or other facility; (c) provides nursing care to individuals who are not able to care for themselves and who require nursing care; (d) provides, as a primary function, nursing care and room and board; and charges for these services; (e) provides care under the supervision of a licensed physician, registered nurse (RN) or licensed practical nurse (LPN); (f) may provide care by a licensed physical, respiratory, occupational or speech therapist; and (g) is not, other than in name only, an acute care hospital, a home for the aged, a retirement home, a rest home, a community living center, or a place mainly for the treatment of alcoholism. We will not waive withdrawal charges if confinement is due to one or more of the following causes: (a) mental, nervous, emotional or personality disorder without demonstrable organic disease, including, but not limited to, neurosis, psychoneurosis, psychopathy or psychosis (b) the voluntary taking or injection of drugs, unless prescribed or administered by a licensed physician (c) the voluntary taking of any drugs prescribed by a licensed physician and intentionally not taken as prescribed (d) sensitivity to drugs voluntarily taken, unless prescribed by a physician (e) drug addiction, unless addiction results from the voluntary taking of drugs prescribed by a licensed physician, or the involuntary taking of drugs. FILING A CLAIM: You must provide the Company with written notice of a claim during continued confinement after the 90-day qualifying period, or within sixty days after such confinement ends. E-1 The maximum withdrawal amount for which we will waive the withdrawal charge is the Contract Value on the next valuation date following written proof of claim, less any Purchase Payments made within a one-year period before confinement in an eligible nursing home begins, less any Purchase Payment made on or after the Annuitant's 71st birthday. We will pay any withdrawal requested under the scope of this waiver as soon as we receive proper written proof of your claim, and we will pay the withdrawal in a lump sum. You should consult with your tax adviser regarding the tax impact of any withdrawals taken from your Contract. E-2 APPENDIX F - -------------------------------------------------------------------------------- CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION The Statement of Additional Information contains more specific information and financial statements relating to the Separate Account and MetLife Insurance Company of Connecticut. A list of the contents of the Statement of Additional Information is set forth below: The Insurance Company Principal Underwriter Distribution and Principal Underwriting Agreement Valuation of Assets Federal Tax Considerations Independent Registered Public Accounting Firm Condensed Financial Information Financial Statements - -------------------------------------------------------------------------------- Copies of the Statement of Additional Information dated April 28, 2008 are available without charge. To request a copy, please clip this coupon on the line above, enter your name and address in the spaces provided below, and mail to MetLife Insurance Company of Connecticut, P.O. Box 10366, Des Moines, IA 50306- 0366. For the MetLife Insurance Company of Connecticut Statement of Additional Information please request MIC-Book-72-73-87. For the Statement of Additional Information for the contracts issued by the former MetLife Life and Annuity Company of Connecticut please request MLAC-Book-72-73-87. Name: ------------------------------------------------- Address: ---------------------------------------------- CHECK BOX: [ ] MIC-Book-72-73-87 [ ] MLAC-Book-72-73-87 F-1 PIONEER ANNUISTAR(SM) VARIABLE ANNUITY PIONEER ANNUISTAR VALUE(SM) ANNUITY ISSUED BY METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES METLIFE INSURANCE COMPANY OF CONNECTICUT SUPPLEMENT DATED OCTOBER 13, 2008 TO THE PROSPECTUS DATED APRIL 28, 2008 Effective October 13, 2008, the Company combined MetLife of CT Separate Account Thirteen for Variable Annuities (the "Former Separate Account") with and into MetLife of CT Separate Account Eleven for Variable Annuities (the "Separate Account"). The Separate Account was established on November 14, 2002 and is registered with the Securities and Exchange Commission as a unit investment trust under the Investment Company Act of 1940, as amended. In connection with the combination of the Former Separate Account with and into the Separate Account (the "Combination"), we transferred the assets of the Former Separate Account to the Separate Account and the Separate Account assumed the liabilities and contractual obligations of the Former Separate Account. All references in your Prospectus to the Former Separate Account now refer to the Separate Account. The Combination does not affect you in any way. More particularly: - There are no changes in our obligations or your rights and benefits under the Contract as a result of the Combination. - Your Contract Value is not affected by the Combination and no charges have been or will be imposed in connection therewith. - The Variable Funding Options available under your Contract have not changed as a result of the Combination. - Your Contract Value is allocated to the same Variable Funding Options (with the same Accumulation Unit values or Annuity Unit values) as it was before the Combination. - The Combination does not result in any federal income tax consequences to you. If you have any questions, please contact us at 866-547-3793. PIONEER ANNUISTAR VALUE(SM) ANNUITY PROSPECTUS: METLIFE OF CT SEPARATE ACCOUNT THIRTEEN FOR VARIABLE ANNUITIES METLIFE OF CT SEPARATE ACCOUNT FOURTEEN FOR VARIABLE ANNUITIES APRIL 28, 2008 This prospectus describes PIONEER ANNUISTAR VALUE ANNUITY, a flexible premium deferred variable annuity contract (the "Contract") issued by MetLife Insurance Company of Connecticut. The Contract is available in connection with certain retirement plans that qualify for special federal income tax treatment ("Qualified Contracts") as well as those that do not qualify for such treatment ("Non-qualified Contracts"). We may issue it as an individual contract or as a group contract. When we issue a group contract, you will receive a certificate summarizing the Contract's provisions. For convenience, we refer to contracts and certificates as "Contracts." You can choose to have your premium ("Purchase Payments") accumulate on a variable and/or, subject to availability, fixed basis in one or more of our funding options. Your Contract Value before the Maturity Date and the amount of monthly income afterwards will vary daily to reflect the investment experience of the Variable Funding Options you select. You bear the investment risk of investing in the Variable Funding Options. The Variable Funding Options available for contracts purchased on or after April 28, 2008 are: FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS Pioneer Cullen Value VCT Portfolio TRUST -- CLASS 2 Pioneer Emerging Markets VCT Portfolio Franklin Rising Dividends Securities Fund Pioneer Equity Income VCT Portfolio Franklin Small-Mid Cap Growth Securities Pioneer Fund VCT Portfolio Fund Pioneer Global High Yield VCT Portfolio Templeton Foreign Securities Fund Pioneer High Yield VCT Portfolio LEGG MASON PARTNERS VARIABLE EQUITY TRUST Pioneer Ibbotson Aggressive Allocation VCT Legg Mason Partners Variable Aggressive Portfolio Growth Portfolio -- Class II Pioneer Ibbotson Growth Allocation VCT Legg Mason Partners Variable Capital and Portfolio Income Portfolio -- Class II Pioneer Ibbotson Moderate Allocation VCT Legg Mason Partners Variable Fundamental Portfolio Value Portfolio -- Class I Pioneer Independence VCT Portfolio MET INVESTORS SERIES TRUST Pioneer International Value VCT Portfolio Lazard Mid Cap Portfolio -- Class B Pioneer Mid Cap Value VCT Portfolio Met/AIM Capital Appreciation Pioneer Oak Ridge Large Cap Growth VCT Portfolio -- Class E Portfolio MFS(R) Research International Pioneer Real Estate Shares VCT Portfolio Portfolio -- Class B Pioneer Small Cap Value VCT Portfolio Oppenheimer Capital Appreciation Pioneer Strategic Income VCT Portfolio Portfolio -- Class B METROPOLITAN SERIES FUND, INC. BlackRock Money Market Portfolio -- Class A MFS(R) Total Return Portfolio -- Class B Oppenheimer Global Equity Portfolio -- Class B PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio
Certain Variable Funding Options have been subject to a merger, substitution or other change. Please see "Appendix C -- Additional Information Regarding Underlying Funds" for more information. The Contract, certain Contract features and/or some of the funding options may not be available in all states. This prospectus provides the information that you should know before investing in the Contract. Please keep this prospectus for future reference. You can receive additional information about your Contract by requesting a copy of the Statement of Additional Information ("SAI") dated April 28, 2008. We filed the SAI with the Securities and Exchange Commission ("SEC"), and it is incorporated by reference into this prospectus. To request a copy, write to us at P.O. Box 10366, Des Moines, IA 50306-0366, call 866-547-3793 or access the SEC's website (http://www.sec.gov). See Appendix F for the SAI's table of contents. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. VARIABLE ANNUITY CONTRACTS ARE NOT DEPOSITS OF ANY BANK, AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. TABLE OF CONTENTS
PAGE ---- GLOSSARY................................................................ 3 SUMMARY................................................................. 5 FEE TABLE............................................................... 9 CONDENSED FINANCIAL INFORMATION......................................... 13 THE ANNUITY CONTRACT.................................................... 13 Contract Owner Inquiries................................................ 14 Purchase Payments....................................................... 15 Accumulation Units...................................................... 15 The Variable Funding Options............................................ 16 FIXED ACCOUNT........................................................... 19 CHARGES AND DEDUCTIONS.................................................. 20 General................................................................. 20 Withdrawal Charge....................................................... 20 Free Withdrawal Allowance............................................... 21 Transfer Charge......................................................... 21 Administrative Charges.................................................. 21 Mortality and Expense Risk Charge....................................... 22 Variable Liquidity Benefit Charge....................................... 22 Enhanced Stepped-Up Provision Charge.................................... 22 Guaranteed Minimum Withdrawal Benefit Charge............................ 22 Guaranteed Minimum Withdrawal Benefit for Life ("GMWB for Life") Charge................................................................ 22 Guaranteed Minimum Accumulation Benefit Charge.......................... 23 Variable Funding Option Expenses........................................ 23 Premium Tax............................................................. 23 Changes in Taxes Based upon Premium or Value............................ 23 TRANSFERS............................................................... 23 Market Timing/Excessive Trading......................................... 23 Dollar Cost Averaging................................................... 25 ACCESS TO YOUR MONEY.................................................... 26 Systematic Withdrawals.................................................. 26 OWNERSHIP PROVISIONS.................................................... 27 Types of Ownership...................................................... 27 Contract Owner.......................................................... 27 Beneficiary............................................................. 27 Annuitant............................................................... 27 DEATH BENEFIT........................................................... 28 Death Proceeds before the Maturity Date................................. 28 Enhanced Stepped-Up Provision ("E.S.P.")................................ 30 Payment of Proceeds..................................................... 30 Spousal Contract Continuance (subject to availability--does not apply if a non-spouse is a joint owner)........................................ 32 Beneficiary Contract Continuance (not permitted for non-natural beneficiaries)........................................................ 33 Planned Death Benefit................................................... 33 Death Proceeds after the Maturity Date.................................. 34 LIVING BENEFITS......................................................... 34 Guaranteed Minimum Withdrawal Benefit ("GMWB" or "Principal Guarantee")........................................................... 34 THE ANNUITY PERIOD...................................................... 55 Maturity Date........................................................... 55 Allocation of Annuity................................................... 55 Variable Annuity........................................................ 55 Fixed Annuity........................................................... 56 PAYMENTS OPTIONS........................................................ 56 Election of Options..................................................... 56 Annuity Options......................................................... 56 Variable Liquidity Benefit.............................................. 57 MISCELLANEOUS CONTRACT PROVISIONS....................................... 57 Right to Return......................................................... 57 Termination............................................................. 57 Required Reports........................................................ 58 Suspension of Payments.................................................. 58 THE SEPARATE ACCOUNTS................................................... 58 Performance Information................................................. 59 FEDERAL TAX CONSIDERATIONS.............................................. 59 General Taxation of Annuities........................................... 59 Types of Contracts: Qualified and Non-qualified......................... 60 Qualified Annuity Contracts............................................. 60 Taxation of Qualified Annuity Contracts................................. 61 Mandatory Distributions for Qualified Plans............................. 61 Individual Retirement Annuities......................................... 61 Roth IRAs............................................................... 62 TSAs (ERISA and Non-ERISA).............................................. 62 Non-qualified Annuity Contracts......................................... 64 Diversification Requirements for Variable Annuities..................... 65 Ownership of the Investments............................................ 65 Taxation of Death Benefit Proceeds...................................... 66 Other Tax Considerations................................................ 66 Treatment of Charges for Optional Benefits.............................. 66 Guaranteed Minimum Withdrawal Benefits.................................. 66 Puerto Rico Tax Considerations.......................................... 66 Non-Resident Aliens..................................................... 67 Tax Credits and Deductions.............................................. 67 OTHER INFORMATION....................................................... 67 The Insurance Company................................................... 67 Financial Statements.................................................... 68 Distribution of Variable Annuity Contracts.............................. 68 Conformity with State and Federal Laws.................................. 69 Voting Rights........................................................... 70 Restrictions on Financial Transactions.................................. 70 Legal Proceedings....................................................... 70 APPENDIX A: CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT THIRTEEN FOR VARIABLE ANNUITIES............................... A-1 APPENDIX B: CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT FOURTEEN FOR VARIABLE ANNUITIES............................... B-1 APPENDIX C: ADDITIONAL INFORMATION REGARDING UNDERLYING FUNDS........... C-1 APPENDIX D: THE FIXED ACCOUNT........................................... D-1 APPENDIX E: WAIVER OF WITHDRAWAL CHARGE FOR NURSING HOME CONFINEMENT.... E-1 APPENDIX F: CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION......... F-1
2 GLOSSARY ACCUMULATION UNIT -- an accounting unit of measure used to calculate the value of this Contract before Annuity Payments begin. ANNUITANT -- the person on whose life the Maturity Date and Annuity Payments depend. ANNUITY PAYMENTS -- a series of periodic payments (a) for life; (b) for life with a minimum number of payments; (c) for the joint lifetime of the Annuitant and another person, and thereafter during the lifetime of the survivor; or (d) for a fixed period. ANNUITY UNIT -- an accounting unit of measure used to calculate the amount of Annuity Payments. CASH SURRENDER VALUE -- the Contract Value less any withdrawal charge and premium tax not previously deducted. CODE -- the Internal Revenue Code of 1986, as amended, and all related laws and regulations that are in effect during the term of this Contract. CONTINGENT ANNUITANT -- the individual who becomes the Annuitant when the Annuitant who is not the owner dies prior to the Maturity Date. CONTRACT DATE -- the date on which the Contract is issued. CONTRACT OWNER (YOU) -- the person named in the Contract (on the specifications page) as the owner of the Contract. CONTRACT VALUE -- Purchase Payments, plus or minus any investment experience on the amounts allocated to the variable funds or interest on amounts allocated to the Fixed Account, adjusted by any applicable charges and withdrawals. CONTRACT YEARS -- twelve month periods beginning with the Contract Date. DEATH REPORT DATE -- the day on which we have received 1) Due Proof of Death and 2) written payment instructions or election of spousal or beneficiary contract continuation. DUE PROOF OF DEATH -- (i) a copy of a certified death certificate; (ii) a copy of a certified decree of a court of competent jurisdiction as to the finding of death; (iii) a written statement by a medical doctor who attended the deceased; or (iv) any other proof satisfactory to us. FIXED ACCOUNT -- an account that consists of all of the assets under this Contract other than those in the Separate Account. HOME OFFICE -- the Home Office of MetLife Insurance Company of Connecticut or any other office that we may designate for the purpose of administering this Contract. For transfer, withdrawal, surrender, and (if applicable) loan requests, our Home Office address is: MetLife, P.O. Box 10366, Des Moines, IA 50306-0366 (for overnight delivery or courier service only: 4700 Westown Parkway, Suite 200, West Des Moines, IA 50266). For Purchase Payments and (if applicable) loan repayments, our Home Office address is: MetLife, P.O. Box 371857, Pittsburgh, PA 15250-7857. MATURITY DATE -- the date on which the Annuity Payments are to begin. PAYMENT OPTION -- an annuity option elected under your Contract. PURCHASE PAYMENT -- any premium paid by you to initiate or supplement this Contract. QUALIFIED CONTRACT -- a contract used in a retirement plan or program that is intended to qualify under Sections 401, 403, 408 or 408A of the Code. SEPARATE ACCOUNT -- a segregated account registered with the Securities and Exchange Commission ("SEC"), the assets of which are invested solely in the Underlying Funds. The assets of the Separate Account are held exclusively for the benefit of Contract Owners. SUBACCOUNT -- that portion of the assets of a Separate Account that is allocated to a particular Underlying Fund. 3 UNDERLYING FUND A portfolio of an open-end management investment company that is registered with the Securities and Exchange Commission in which the Subaccounts invest. VALUATION DATE -- a date on which a Subaccount is valued. VALUATION PERIOD -- the period between successive valuations. VARIABLE FUNDING OPTION -- a Subaccount of the Separate Account that invests in an Underlying Fund. WE, US, OUR -- MetLife Insurance Company of Connecticut. WRITTEN REQUEST -- written information sent to us in a form and content satisfactory to us and received at our Home Office. YOU, YOUR -- "You" is the Contract Owner and a natural person, a trust established for the benefit of a natural person or a charitable remainder trust. 4 SUMMARY: PIONEER ANNUISTAR VALUE ANNUITY THIS SUMMARY DETAILS SOME OF THE MORE IMPORTANT POINTS THAT YOU SHOULD KNOW AND CONSIDER BEFORE PURCHASING THE CONTRACT. PLEASE READ THE ENTIRE PROSPECTUS CAREFULLY. WHAT COMPANY WILL ISSUE MY CONTRACT? Your issuing company is MetLife Insurance Company of Connecticut ("the Company," "We" or "Us"). The Company sponsors MetLife of CT Separate Account Thirteen for Variable Annuities ("Separate Account Thirteen") and MetLife of CT Separate Account Fourteen for Variable Annuities ("Separate Account Fourteen"), each a segregated account ("Separate Account"). Prior to December 7, 2007, Separate Account Fourteen was sponsored by MetLife Life and Annuity Company of Connecticut ("MLACC"). On that date, MLACC merged with and into the Company, and the Company became the sponsor of Separate Account Fourteen. Immediately following the merger, the Company stopped issuing Contracts under Separate Account Fourteen and now only issues Contracts under Separate Account Thirteen. When we refer to the Separate Account, we are referring to Separate Account Thirteen, except where the Contract was originally issued by MLACC, in which case, we are referring to Separate Account Fourteen. The Contract and/or certain optional benefits may not currently be available for sale in all states. For contracts issued in New York, a waiver of the withdrawal charge may apply to all Annuity Payments. CAN YOU GIVE ME A GENERAL DESCRIPTION OF THE CONTRACT? We designed the Contract for retirement savings or other long-term investment purposes. The Contract provides a death benefit as well as guaranteed payout options. You direct your payment(s) to one or more of the Variable Funding Options and/or to the Fixed Account that is part of our general account (the "Fixed Account"). We guarantee money directed to the Fixed Account as to principal and interest. The Variable Funding Options fluctuate with the investment performance of the Underlying Funds and are not guaranteed. You can also lose money in the Variable Funding Options. The Contract, like all deferred variable annuity contracts, has two phases: the accumulation phase and the payout phase (annuity period). During the accumulation phase generally, under a Qualified Contract, your pre-tax contributions accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal, presumably when you are in a lower tax bracket. During the accumulation phase, under a Non-qualified Contract, earnings on your after- tax contributions accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal. The payout phase occurs when you begin receiving payments from your Contract. The amount of money you accumulate in your Contract determines the amount of income (Annuity Payments) you receive during the payout phase. During the payout phase, you may choose one of a number of annuity options. You may receive income payments in the form of a variable annuity, a fixed annuity, or a combination of both. If you elect variable income payments, the dollar amount of your payments may increase or decrease. Once you choose one of the annuity options and begin to receive payments, it cannot be changed. WHO CAN PURCHASE THIS CONTRACT? The Contract is available for use in connection with (1) individual non-qualified purchases; (2) rollovers from Individual Retirement Annuities (IRAs); (3) rollovers from other qualified retirement plans and (4) beneficiary-directed transfers of death proceeds from another contract. Qualified Contracts include contracts qualifying under Section 401(a), 403(b), 408(b) or 408A of the Code. Purchase of this Contract through a tax qualified retirement plan ("Plan") does not provide any additional tax deferral benefits beyond those provided by the Plan. Accordingly, if you are purchasing this Contract through a Plan, you should consider purchasing this Contract for its death benefit, annuity option benefits, and other non-tax-related benefits. You may purchase the Contract with an initial payment of at least $5,000. You may make additional payments of at least $500 at any time during the accumulation phase. No additional payments are allowed if this Contract is purchased with a beneficiary-directed transfer of death proceeds. If your Contract was issued as a Qualified Contract under Section 403(b) of the Code in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax advisor prior to making additional purchase payments (if permitted) as significant adverse tax consequences may result from such additional payments. (See "Federal Tax Considerations.") The ages of the owner and Annuitant determine which death benefits and certain optional features are available to you. See "The Annuity Contract" section for more information. 5 CAN I EXCHANGE MY CURRENT ANNUITY CONTRACT FOR THIS CONTRACT? The Code generally permits you to exchange one annuity contract for another in a "tax-free exchange." Therefore, you can transfer the proceeds from another annuity contract to purchase this Contract. Before making an exchange to acquire this Contract, you should carefully compare this Contract to your current contract. You may have to pay a surrender charge under your current contract to exchange it for this Contract, and this Contract has its own surrender charges that would apply to you. The other fees and charges under this Contract may be higher or lower and the benefits may be different than those of your current contract. In addition, you may have to pay federal income or penalty taxes on the exchange if it does not qualify for tax-free treatment. You should not exchange another contract for this Contract unless you determine, after evaluating all the facts, the exchange is in your best interests. Remember that the person selling you the Contract generally will earn a commission on the sale. IS THERE A RIGHT TO RETURN PERIOD? If you cancel the Contract within ten days after you receive it, you will receive a full refund of your Contract Value plus any Contract charges and premium taxes you paid (but not fees and charges assessed by the Underlying Funds). Where state law requires a different right to return period, or the return of Purchase Payments, the Company will comply. You bear the investment risk on the Purchase Payment allocated to a Variable Funding Option during the right to return period; therefore, the Contract Value we return may be greater or less than your Purchase Payment. If you purchased your Contract as an Individual Retirement Annuity, and you return it within the first seven days after delivery, or longer if your state law permits, we will refund your full Purchase Payment. During the remainder of the right to return period, we will refund your Contract Value (including charges we assessed). We will determine your Contract Value at the close of business (generally, 4:00 p.m., Eastern Time) on the day we receive a Written Request for a refund. CAN YOU GIVE A GENERAL DESCRIPTION OF THE VARIABLE FUNDING OPTIONS AND HOW THEY OPERATE? The Variable Funding Options represent Subaccounts of the Separate Account. At your direction, the Separate Account, through its Subaccounts, uses your Purchase Payments to purchase shares of one or more of the Underlying Funds that holds securities consistent with its own investment policy. Depending on market conditions, you may make or lose money in any of these Variable Funding Options. You can transfer among the Variable Funding Options as frequently as you wish without any current tax implications. Currently there is no charge for transfers, nor a limit to the number of transfers allowed. We may, in the future, charge a fee for any transfer request, or limit the number of transfers allowed. At a minimum, we would always allow one transfer every six months. We reserve the right to restrict transfers that we determine will disadvantage other Contract Owners. You may transfer between the Fixed Account and the Variable Funding Options twice a year (during the 30 days after the six-month Contract Date anniversary), provided the amount is not greater than 15% of the Fixed Account value on that date. Where permitted by state law, we also reserve the right to restrict transfers into the Fixed Account if the credited interest rate is equal to the minimum guaranteed interest rate specified under the Contract. Amounts previously transferred from the Fixed Account to the Variable Funding Options may not be transferred back to the Fixed Account for a period of at least six months from the date of the transfer. WHAT EXPENSES WILL BE ASSESSED UNDER THE CONTRACT? The Contract has insurance features and investment features, and there are costs related to each. We deduct an administrative expense charge and a mortality and expense risk ("M&E") charge each business day from amounts you allocate to the Separate Account. We deduct the administrative expense charge at an annual rate of 0.15% and deduct the M&E charge at an annual rate of 1.35% for the Standard Death Benefit and 1.60% for the Enhanced Death Benefit. For Contracts with a value of less than $40,000, we also deduct an annual contract administrative charge of $30. Each Underlying Fund also charges for management costs and other expenses. We will apply a withdrawal charge to withdrawals from the Contract, and will calculate it as a percentage of the Purchase Payments withdrawn. The maximum percentage is 6%, decreasing to 0% after seven full years. (This includes withdrawals resulting from a request to divide the Contract Value due to divorce.) If you select the Enhanced Stepped-Up Provision ("E.S.P."), an additional 0.20% annually will be deducted each business day from amounts in the Variable Funding Options. THIS PROVISION IS NOT AVAILABLE TO A CUSTOMER WHEN EITHER THE ANNUITANT OR OWNER IS AGE 76 OR OLDER ON THE RIDER EFFECTIVE DATE. Upon annuitization, if the Variable Liquidity Benefit is selected, there is a maximum charge of 6% of the amounts withdrawn. Please refer to "Payment Options" for a description of this benefit. 6 We offer a Guaranteed Minimum Withdrawal Benefit ("GMWB") rider that you can select when you purchase the Contract. There are four different versions of the GMWB under this Contract: GMWB I, GMWB II, GMWB III and GMWB for Life. (Check with your registered representative to see which version(s) of the rider is available in y our state.) If you select one of the GMWB riders, a charge will be deducted each business day from amounts allocated to the Variable Funding Options. The current charge for GMWB I, GMWB II and GMWB III, on an annual basis, is as follows: 0.40%, 0.50% and 0.25%, respectively. Your current charge will not change unless you are able to reset your benefits, at which time we may modify the charge, which will never exceed 1.00%. If you elect the GMWB for Life ("Living Income Guarantee") rider, a charge will be deducted each business day from amounts allocated to the Variable Funding Options. The charge depends on whether you purchase the Single Life Option or the Joint Life Option. The current charge, on an annual basis, is 0.65% for the Single Life Option and 0.80% for the Joint Life Option. The charge can increase but will never exceed 1.50%. This charge will continue until termination of the rider or Contract. You cannot cancel the rider, although the rider terminates under certain circumstances. (see "Termination".) If you select the Guaranteed Minimum Accumulation Benefit ("GMAB"), we will deduct each business day a charge of 0.50% (on an annual basis) from amounts allocated to the Variable Funding Options. HOW WILL MY PURCHASE PAYMENTS AND WITHDRAWALS BE TAXED? Generally, the payments you make to a Qualified Contract during the accumulation phase are made with before-tax dollars. Generally, you will be taxed on your Purchase Payments and on any earnings when you make a withdrawal or begin receiving Annuity Payments. Under a Non-qualified Contract, payments to the Contract are made with after-tax dollars, and earnings will generally accumulate tax-deferred. You will be taxed on these earnings when they are withdrawn from the Contract. If you are younger than 59 1/2 when you take money out, you may be charged a 10% federal penalty tax on the amount withdrawn. For owners of Qualified Contracts, if you reach a certain age, you may be required by federal tax laws to begin receiving payments from your annuity or risk paying a penalty tax. In those cases, we can calculate and pay you the minimum required distribution amounts (see "Access to Your Money -- Systematic Withdrawals"). HOW MAY I ACCESS MY MONEY? You can take withdrawals any time during the accumulation phase. Withdrawal charges may apply, as well as income taxes, and/or a penalty tax on amounts withdrawn. WHERE MAY I FIND OUT MORE ABOUT ACCUMULATION UNIT VALUES? The Condensed Financial Information in Appendix A or Appendix B to this prospectus provides more information about Accumulation Unit values. ARE THERE ANY ADDITIONAL FEATURES? This Contract has other features you may be interested in. These include: - DOLLAR COST AVERAGING. This is a program that allows you to invest a fixed amount of money in Variable Funding Options each month, theoretically giving you a lower average cost per unit over time than a single one-time purchase. Dollar Cost Averaging requires regular investments regardless of fluctuating price levels, and does not guarantee profits or prevent losses in a declining market. Potential investors should consider their financial ability to continue purchases through periods of low price levels. - SYSTEMATIC WITHDRAWAL OPTION. Before the Maturity Date, you can arrange to have money sent to you at set intervals throughout the year. Of course, any applicable income and penalty taxes will apply on amounts withdrawn. Withdrawals in excess of the annual free withdrawal allowance may be subject to a withdrawal charge. - MANAGED DISTRIBUTION PROGRAM. This program allows us to automatically calculate and distribute to you, in November of the applicable tax year, an amount that will satisfy the Internal Revenue Service's minimum distribution requirements imposed on certain contracts once the owner reaches age 70 1/2 or retires. These minimum distributions occur during the accumulation phase. - AUTOMATIC REBALANCING. You may elect to have the Company periodically reallocate the values in your Contract to match the rebalancing allocation selected. - ENHANCED STEPPED-UP PROVISION ("E.S.P."). For an additional charge, the total death benefit payable may be increased based on the earnings in your Contract 7 - SPOUSAL CONTRACT CONTINUANCE (SUBJECT TO AVAILABILITY). If your spouse is named as an owner and/or beneficiary, and you die prior to the Maturity Date, your spouse may elect to continue the Contract as owner rather than have the death benefit paid to the beneficiary. This feature applies to a spousal joint Contract Owner and/or beneficiary only. - BENEFICIARY CONTRACT CONTINUANCE (NOT PERMITTED FOR NON-NATURAL BENEFICIARIES). If you die before the Maturity Date, and if the value of any beneficiary's portion of the death benefit is between $20,000 and $1,000,000 as of the date of your death, that beneficiary may elect to continue his/her portion of the Contract and take required distributions over time, rather than have the death benefit paid to the beneficiary in a lump sum. - GUARANTEED MINIMUM WITHDRAWAL BENEFIT ("PRINCIPAL GUARANTEE"). For an additional charge, we will guarantee the periodic return of your investment. Under this benefit, we will pay you a percentage of your investment every year until your investment has been returned in full, regardless of market performance. Depending on when you elect to begin receiving payments and which GMWB rider you select, the maximum amount of your investment that you receive each year is 5% or 10%. When you add Purchase Payments to your Contract, we include them as part of the guarantee. In the future, however, we may discontinue including additional Purchase Payments as part of the guarantee. The guarantee is subject to restrictions on withdrawals and other restrictions. - GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE" OR "LIVING INCOME GUARANTEE"). For an additional charge, we will guarantee a fixed level of income for life after you attain a certain age as long as you do not withdraw more than a certain amount from your Contract each year. The guarantee is based on Purchase Payments received within two years of your initial purchase. Depending on when you elect to take your first withdrawal, the maximum amount of your investment that you may receive each year is 5%, 6%, or 7%. Payments are guaranteed for your life when you reach age 59 1/2 if you purchase the benefit alone (the "Single Life Option"), or guaranteed for the life of both you and your spouse (the "Joint Life Option") when both you and your spouse reach age 65 if you purchase the benefit with your spouse. The base guarantee increases each year automatically on your anniversary if your Contract Value is greater than the base guarantee. The guarantee is subject to restrictions on withdrawals, and you are required to remain invested in a limited number of specified Variable Funding Options. Currently, you may elect the GMWB for Life rider only at the time of your initial purchase of the Contract, and once you purchase the GMWB for Life rider, you cannot cancel it. Guaranteed withdrawals are also available before the qualifying age, however these payments are not guaranteed for life. There is also a guaranteed lump sum feature available after ten years in lieu of guaranteed periodic payments. - GUARANTEED MINIMUM ACCUMULATION BENEFIT ("GMAB"). For an additional charge, we will guarantee that your Contract Value will not be less than a minimum amount at the end of a specified number of years. The guaranteed amount is based on your Purchase Payments, including additional Purchase Payments you make within 12 months of electing the rider. Additional Purchase Payments made more than 12 months after you elect the rider will not increase the guaranteed amount. If your Contract Value is less than the minimum guaranteed amount on the Rider Maturity Date, we will apply additional amounts to increase your Contract Value so that it is equal to the guaranteed amount. 8 FEE TABLE - -------------------------------------------------------------------------------- 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, surrender the Contract, or transfer Contract Value between Variable Funding Options. Expenses shown do not include premium taxes, which may be applicable. CONTRACT OWNER TRANSACTION EXPENSES WITHDRAWAL CHARGE....................................... 6%(1) (as a percentage of the Purchase Payments withdrawn)
TRANSFER CHARGE......................................... $10(2) (assessed on transfers that exceed 12 per year)
VARIABLE LIQUIDITY BENEFIT CHARGE....................... 6%(3) (As a percentage of the present value of the remaining Annuity Payments that are surrendered. The interest rate used to calculate this present value is 1% higher than the Assumed (Daily) Net Investment Factor used to calculate the Annuity Payments.)
The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Underlying Fund fees and expenses. CONTRACT ADMINISTRATIVE CHARGES ANNUAL CONTRACT ADMINISTRATIVE CHARGE................... $30(4)
- --------- (1) The withdrawal charge declines to zero after the Purchase Payment has been in the Contract for seven years. The charge is as follows:
YEARS SINCE PURCHASE PAYMENT MADE - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 + years 0%
(2) We do not currently assess the transfer charge. (3) This withdrawal charge only applies when you surrender the Contract after beginning to receive Annuity Payments. The Variable Liquidity Benefit Charge declines to zero after seven years. The charge is as follows:
YEARS SINCE INITIAL PURCHASE PAYMENT - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7+years 0%
(4) We do not assess this charge if Contract Value is $40,000 or more on the fourth Friday of each August. 9 ANNUAL SEPARATE ACCOUNT CHARGES (as a percentage of the average daily net assets of the Separate Account) We will assess a minimum mortality and expense risk charge ("M&E") of 1.35% and an administrative expense charge of 0.15% on all Contracts. In addition, for optional features there is a 0.20% charge for E.S.P., a 0.50% charge for GMAB, a 0.40% current charge for GMWB I (maximum of 1.00% upon reset), a 0.50% current charge for GMWB II (maximum of 1.00% upon reset), a 0.25% charge for GMWB III, a 0.65% current charge for GMWB for Life (Single Life Option) (maximum of 1.50% upon reset), and a 0.80% current charge for GMWB for Life (Joint Life Option) (maximum of 1.50% upon reset). Below is a summary of all of the maximum charges that may apply, depending on the death benefit and optional features you select:
STANDARD DEATH BENEFIT ENHANCED DEATH BENEFIT -------------- ---------------------- Mortality and Expense Risk Charge*......................... 1.35% 1.60% Administrative Expense Charge.............................. 0.15% 0.15% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH NO OPTIONAL FEATURES SELECTED........................................ 1.50% 1.75% Optional E.S.P. Charge..................................... 0.20% 0.20% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. ONLY SELECTED................................................. 1.70% 1.95% Optional GMAB Charge....................................... 0.50% 0.50% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMAB ONLY SELECTED................................................. 2.00% 2.25% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMAB SELECTED(5).............................................. 2.20% 2.45% Optional GMWB I Charge..................................... 1.00%(6) 1.00%(6) Optional GMWB II Charge.................................... 1.00%(6) 1.00%(6) Optional GMWB III Charge................................... 0.25% 0.25% OPTIONAL GMWB FOR LIFE (SINGLE LIFE OPTION) CHARGE......... 1.50%(6) 1.50%(6) OPTIONAL GMWB FOR LIFE (JOINT LIFE OPTION) CHARGE.......... 1.50%(6) 1.50%(6) TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB I ONLY SELECTED................................................. 2.50% 2.75% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB II ONLY SELECTED................................................. 2.50% 2.75% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB III ONLY SELECTED................................................. 1.75% 2.00% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB FOR LIFE (SINGLE LIFE OPTION) ONLY SELECTED....................... 3.00% 3.25% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH GMWB FOR LIFE (JOINT LIFE OPTION) ONLY SELECTED........................ 3.00% 3.25% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB I SELECTED............................................... 2.70% 2.95% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB II SELECTED.............................................. 2.70% 2.95% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB III SELECTED............................................. 1.95% 2.20% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB FOR LIFE (SINGLE LIFE OPTION) SELECTED................... 3.20% 3.45% TOTAL ANNUAL SEPARATE ACCOUNT CHARGES WITH E.S.P. AND GMWB FOR LIFE (JOINT LIFE OPTION) SELECTED.................... 3.20% 3.45%
- --------- * We will waive the following amounts of the Mortality and Expense Risk Charge: an amount, if any, equal to the underlying fund expenses that are in excess of 1.16% for the Subaccount investing in the Met/AIM Capital Appreciation Portfolio -- Class E; an amount, if any, equal to the underlying fund expenses that are in excess of 1.13% for the Subaccount investing in MFS(R) Research International Portfolio -- Class B, and an amount, if any, equal to the underlying fund expenses that are in excess of 0.90% for the Subaccount investing in Oppenheimer Global Equity Portfolio -- Class B. (5) GMAB and GMWB cannot both be elected. (6) The current charges for the available GMWB riders are as follow: 10
- ------------------------------------------------------------------------------------------- GMWB RIDER CURRENT CHARGE - ------------------------------------------------------------------------------------------- GMWB I 0.40% - ------------------------------------------------------------------------------------------- GMWB II 0.50% - ------------------------------------------------------------------------------------------- GMWB for Life (Single Life Option) 0.65% - ------------------------------------------------------------------------------------------- GMWB for Life (Joint Life Option) 0.80% - -------------------------------------------------------------------------------------------
UNDERLYING FUND EXPENSES AS OF DECEMBER 31, 2007 (UNLESS OTHERWISE INDICATED): The first table below shows the range (minimum and maximum) of the total annual operating expenses charged by all of the Underlying Funds, before any voluntary or contractual fee waivers and/or expense reimbursements. The second table shows each Underlying Fund's management fee, distribution and/or service (12b-1) fees if applicable, and other expenses. The Underlying Funds provided this information and we have not independently verified it. More detail concerning each Underlying Fund's fees and expenses is contained in the prospectus for each Underlying Fund. Current prospectuses for the Underlying Funds can be obtained by calling 866-547-3793. MINIMUM AND MAXIMUM TOTAL ANNUAL UNDERLYING FUND OPERATING EXPENSES
MINIMUM MAXIMUM ------- ------- TOTAL ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Underlying Fund assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) 0.40% 1.90%
UNDERLYING FUND FEES AND EXPENSES (as a percentage of average daily net assets)
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Franklin Rising Dividends Securities Fund............. 0.58% 0.25% 0.02% 0.01% 0.86% 0.01% 0.85%(1) Franklin Small-Mid Cap Growth Securities Fund............. 0.47% 0.25% 0.28% 0.01% 1.01% 0.01% 1.00%(1) Templeton Foreign Securities Fund........................ 0.63% 0.25% 0.14% 0.02% 1.04% 0.02% 1.02%(1) LEGG MASON PARTNERS VARIABLE EQUITY TRUST Legg Mason Partners Variable Aggressive Growth Portfolio -- Class II++..... 0.75% 0.25% 0.15% -- 1.15% -- 1.15%(2) Legg Mason Partners Variable Capital and Income Portfolio -- Class II....... 0.75% 0.25% 0.13% -- 1.13% -- 1.13% Legg Mason Partners Variable Fundamental Value Portfolio -- Class I........ 0.75% -- 0.08% -- 0.83% -- 0.83%(2) MET INVESTORS SERIES TRUST Lazard Mid Cap Portfolio -- Class B........ 0.69% 0.25% 0.06% -- 1.00% -- 1.00% Met/AIM Capital Appreciation Portfolio -- Class E........ 0.76% 0.15% 0.10% -- 1.01% -- 1.01% MFS(R) Research International Portfolio -- Class B........ 0.70% 0.25% 0.09% -- 1.04% -- 1.04% Oppenheimer Capital Appreciation Portfolio -- Class B........ 0.58% 0.25% 0.06% -- 0.89% -- 0.89% METROPOLITAN SERIES FUND, INC. BlackRock Money Market Portfolio -- Class A........ 0.33% -- 0.07% -- 0.40% 0.01% 0.39%(3) MFS(R) Total Return Portfolio -- Class B........ 0.53% 0.25% 0.05% -- 0.83% -- 0.83%
11
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- Oppenheimer Global Equity Portfolio -- Class B........ 0.51% 0.25% 0.10% -- 0.86% -- 0.86% PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio..... 0.50% 0.25% 0.28% -- 1.03% 0.16% 0.87%(4) Pioneer Cullen Value VCT Portfolio................... 0.70% 0.25% 0.37% -- 1.32% 0.32% 1.00%(5) Pioneer Emerging Markets VCT Portfolio................... 1.15% 0.25% 0.24% -- 1.64% -- 1.64% Pioneer Equity Income VCT Portfolio................... 0.65% 0.25% 0.05% -- 0.95% -- 0.95% Pioneer Fund VCT Portfolio..... 0.65% 0.25% 0.05% -- 0.95% -- 0.95% Pioneer Global High Yield VCT Portfolio................... 0.65% 0.25% 0.48% -- 1.38% 0.38% 1.00%(6) Pioneer High Yield VCT Portfolio................... 0.65% 0.25% 0.10% -- 1.00% -- 1.00% Pioneer Ibbotson Aggressive Allocation VCT Portfolio.... 0.17% 0.25% 0.60% 0.88% 1.90% 0.47% 1.43%(7) Pioneer Ibbotson Growth Allocation VCT Portfolio.... 0.17% 0.25% 0.10% 0.82% 1.34% 0.14% 1.20%(8) Pioneer Ibbotson Moderate Allocation VCT Portfolio.... 0.17% 0.25% 0.14% 0.77% 1.33% 0.17% 1.16%(9) Pioneer Independence VCT Portfolio................... 0.70% 0.25% 0.32% -- 1.27% -- 1.27% Pioneer International Value VCT Portfolio................... 0.85% 0.25% 0.32% -- 1.42% -- 1.42% Pioneer Mid Cap Value VCT Portfolio................... 0.65% 0.25% 0.06% -- 0.96% -- 0.96% Pioneer Oak Ridge Large Cap Growth VCT Portfolio........ 0.75% 0.25% 0.29% -- 1.29% 0.34% 0.95%(10) Pioneer Real Estate Shares VCT Portfolio................... 0.80% 0.25% 0.11% -- 1.16% -- 1.16% Pioneer Small Cap Value VCT Portfolio................... 0.75% 0.25% 0.15% 0.05% 1.20% -- 1.20% Pioneer Strategic Income VCT Portfolio................... 0.65% 0.25% 0.18% -- 1.08% -- 1.08%
- --------- * Acquired Fund Fees and Expenses are fees and expenses incurred indirectly by a portfolio as a result of investing in shares of one or more underlying portfolios. ** Net Total Annual Operating Expenses do not reflect: (1) voluntary waivers of fees or expenses; (2) contractual waivers that are in effect for less than one year from the date of this Prospectus; or (3) expense reductions resulting from custodial fee credits or directed brokerage arrangements. ++ Fees and expenses of this Portfolio are based on the Portfolio's fiscal year ended October 31, 2007. (1) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the Sweep Money Fund which is the "acquired fund" in this case) 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. (2) Other Expenses have been revised to reflect the estimated effect of additional prospectus and shareholder report printing and mailing expenses expected to be incurred by the fund going forward. (3) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to the annual rate of 0.345% for the first $500 million of the Portfolio's average daily net assets and 0.335% for the next $500 million. (4) The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other ordinary operating expenses to the extent required to reduce Class I expenses to 0.62% of average daily net assets, and to waive fees or limit other expenses of the Class II shares to effect a like reduction in Class II expenses. (5) The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other ordinary operating expenses to the extent required to reduce Class II expenses, other than acquired fund fees and expenses, to 1.00% of average daily net assets. (6) The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other ordinary operating expenses to the extent required to reduce Class II expenses to 1.00% of average daily net assets. (7) The Portfolio is a "fund of funds" that invests in other underlying Pioneer portfolios. As an investor in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios, including the management fee. The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other direct operating expenses to the extent required to reduce Class II expenses, other than acquired fund fees and expenses, to 0.55% of average daily net assets. (8) The Portfolio is a "fund of funds" that invests in other underlying Pioneer portfolios. As an investor in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios, including the management fee. The waiver 12 reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other direct operating expenses to the extent required to reduce Class II expenses, other than acquired fund fees and expenses, to 0.38% of average daily net assets. (9) The Portfolio is a "fund of funds" that invests in other underlying Pioneer portfolios. As an investor in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios, including the management fee. The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other direct operating expenses to the extent required to reduce Class II expenses, other than acquired fund fees and expenses, to 0.39% of average daily net assets. (10) The waiver reflects a contractual expense limitation in effect through May 1, 2009 under which Pioneer has contractually agreed not to impose all or a portion of its management fee and, if necessary, to limit other ordinary operating expenses to the extent required to reduce Class II expenses to 0.95% of average daily net assets. EXAMPLE The example is 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 Contract Owner transaction expenses, Contract fees, separate account annual expenses, and Underlying Fund total annual operating expenses. The example does not represent past or future expenses. Your actual expenses may be more or less than those shown. The example assumes that you invest $10,000 in the Contract for the time periods indicated and that your investment has a 5% return each year. The example reflects the annual Contract administrative charge, factoring in that the charge is waived for contracts over a certain value. Additionally, the example is based on the minimum and maximum Underlying Fund total annual operating expenses shown above, and does not reflect any Underlying Fund fee waivers and/or expense reimbursements. The example assumes you have allocated all of your Contract Value to either the Underlying Fund with the maximum total annual operating expenses or the Underlying Fund with the minimum total annual operating expenses. Your actual expenses will be less than those shown if you do not elect all of the optional benefits. The GMAB and a GMWB rider cannot both be elected. EXAMPLE -- This example assumes that you have elected the most expensive death benefit option, the E.S.P. optional death benefit and the Guaranteed Minimum Withdrawal Benefit for Life rider (assuming the maximum 1.50% charge applies in all Contract Years).
IF CONTRACT IS SURRENDERED AT THE IF CONTRACT IS NOT SURRENDERED OR END OF PERIOD SHOWN: ANNUITIZED AT THE END OF PERIOD SHOWN: ---------------------------------------------- ---------------------------------------------- FUNDING OPTION 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS - -------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Underlying Fund with Maximum Total Annual Operating Expenses......... $1,140 $2,064 $3,040 $5,310 $540 $1,614 $2,680 $5,310 Underlying Fund with Minimum Total Annual Operating Expenses......... $991 $1,631 $2,341 $4,030 $391 $1,181 $1,981 $4,030
CONDENSED FINANCIAL INFORMATION - -------------------------------------------------------------------------------- See Appendices A and B. THE ANNUITY CONTRACT - -------------------------------------------------------------------------------- Pioneer AnnuiStar Value Annuity is a contract between the Contract Owner ("you") and the Company. This is the prospectus -- it is not the Contract. The prospectus highlights many Contract provisions to focus your attention on the Contract's essential features. Your rights and obligations under the Contract will be determined by the language of the Contract itself. When you receive your Contract, we suggest you read it promptly and carefully. There may be differences in your Contract from the descriptions in this prospectus because of the requirements of the state where we issued your Contract. We will include any such differences in your Contract. The Company offers several different annuities that your investment professional may be authorized to offer to you. Each annuity offers different features and benefits that may be appropriate for you. In particular, the annuities differ 13 based on variations in the standard and optional death benefit protection provided for your beneficiaries, the availability of optional living benefits, the ability to access your Contract Value if necessary and the charges that you will be subject to if you make a withdrawal or surrender the annuity. The separate account charges and other charges may be different between each annuity we offer. Optional death benefits and living benefits are subject to a separate charge for the additional protections they offer to you and your beneficiaries. Furthermore, annuities that offer greater flexibility to access your Contract Value generally are subject to higher separate account charges than annuities that deduct charges if you make a withdrawal or surrender. We encourage you to evaluate the fees, expenses, benefits and features of this annuity against those of other investment products, including other annuity products offered by us and other insurance companies. Before purchasing this or any other investment product you should consider whether the product you purchase is consistent with your risk tolerance, investment objectives, investment time horizon, financial and tax situation, liquidity needs and how you intend to use the annuity. You make Purchase Payments to us and we credit them to your Contract. We promise to pay you an income, in the form of Annuity Payments, beginning on a future date that you choose, the Maturity Date. The Purchase Payments accumulate tax deferred in the funding options of your choice. We offer multiple Variable Funding Options. We may also offer a Fixed Account option. Where permitted by state law, we also reserve the right to restrict allocation of Purchase Payments to the Fixed Account if the credited interest rate is equal to the minimum guaranteed interest rate specified under the Contract. The Contract Owner assumes the risk of gain or loss according to the performance of the Variable Funding Options. The Contract Value is the amount of Purchase Payments, plus or minus any investment experience on the amounts you allocate to the Separate Account ("Separate Account Contract Value") or interest on the amounts you allocate to the Fixed Account ("Fixed Account Contract Value"). The Contract Value also reflects all withdrawals made and charges deducted. There is generally no guarantee that at the Maturity Date the Contract Value will equal or exceed the total Purchase Payments made under the Contract. The date the Contract and its benefits become effective is referred to as the Contract Date. Each 12-month period following the Contract Date is called a Contract Year. Certain changes and elections must be made in writing to the Company. Where the term "Written Request" is used, it means that you must send written information to our Home Office in a form and content satisfactory to us. The Contract is not available for purchase if the proposed owner or Annuitant is age 81 or older. The ages of the owner and Annuitant determine which death benefits and certain optional features are available to you.
MAXIMUM AGE BASED ON THE OLDER OF THE OWNER AND DEATH BENEFIT/OPTIONAL FEATURE ANNUITANT ON THE CONTRACT DATE* - ------------------------------------------------------ ----------------------------------------------- Standard Death Benefit 80 Enhanced Death Benefit 75 Enhanced Stepped-Up Provision (E.S.P.) 75
- --------- * The maximum age for optional death benefits may be reduced in connection with the offer of the Contracts through certain broker-dealers. Since optional death benefits carry higher charges, you should consider the ages of the owner and Annuitant when electing these benefits, as the additional value provided by the benefit may be significantly reduced or eliminated depending on the ages of the owner and Annuitant at the time of election. Purchase of this Contract through a tax qualified retirement plan or IRA does not provide any additional tax deferral benefits beyond those provided by the plan or the IRA. Accordingly, if you are purchasing this Contract through a plan or IRA, you should consider purchasing this Contract for its death benefit, annuity option benefits, and other non-tax-related benefits. You should consult with your tax adviser to determine if this Contract is appropriate for you. CONTRACT OWNER INQUIRIES Any questions you have about your Contract should be directed to our Home Office at 866-547-3793. 14 PURCHASE PAYMENTS Your initial Purchase Payment is due and payable before the Contract becomes effective. The initial Purchase Payment must be at least $5,000. You may make additional payments of at least $500 at any time. No additional Purchase Payments are allowed if this Contract is purchased with a beneficiary-directed transfer of death benefit proceeds. Under certain circumstances, we may waive the minimum Purchase Payment requirement. Initial Purchase Payments plus the total of any subsequent Purchase Payments may total more than $1,000,000 only with our prior consent. Where permitted by state law, we may restrict Purchase Payments into the Fixed Account whenever the current credited interest rate for the Fixed Account is equal to the minimum guaranteed rate specified in your Contract. Purchase Payments may be made at any time while the Annuitant is alive and before the date Annuity Payments begin. We accept Purchase Payments made by check or cashier's check. We do not accept cash, money orders or traveler's checks. We reserve the right to refuse Purchase Payments made via a personal check in excess of $100,000. Purchase Payments over $100,000 may be accepted in other forms, including but not limited to, EFT/wire transfers, certified checks, corporate checks, and checks written on financial institutions. The form in which we receive a Purchase Payment may determine how soon subsequent disbursement requests may be fulfilled. (See "Access To Your Money.") We will apply the initial Purchase Payment less any applicable premium tax within two business days after we receive it at our Home Office with a properly completed application or order request. If your request or other information accompanying the initial Purchase Payment is incomplete when received, we will hold the Purchase Payment for up to five business days. If we cannot obtain the necessary information within five business days, we will return the Purchase Payment in full, unless you specifically consent for us to keep it until you provide the necessary information. We will credit any subsequent Purchase Payment to a Contract on the same business day we receive it, if it is received in good order by our Home Office by 4:00 p.m. Eastern time. A business day is any day that the New York Stock Exchange is open for regular trading (except when trading is restricted due to an emergency as defined by the Securities and Exchange Commission). IF YOU SEND YOUR PURCHASE PAYMENTS OR TRANSACTION REQUESTS TO AN ADDRESS OTHER THAN THE ONE WE HAVE DESIGNATED FOR RECEIPT OF SUCH PURCHASE PAYMENTS OR REQUESTS, WE MAY RETURN THE PURCHASE PAYMENT TO YOU, OR THERE MAY BE A DELAY IN APPLYING THE PURCHASE PAYMENT OR TRANSACTION TO YOUR CONTRACT. QUALIFIED CONTRACTS UNDER SECTION 403(B). If your Contract was issued as a Qualified Contract under Section 403(b) of the Code (also called a "tax sheltered annuity" or "TSA") in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax advisor prior to making additional purchase payments. Such additional payments may have significant adverse tax consequences. (See "Federal Tax Consequences.") ACCUMULATION UNITS The period between the Contract Date and the Maturity Date is the accumulation period. During the accumulation period, an Accumulation Unit is used to calculate the value of a Contract. Each Variable Funding Option has a corresponding Accumulation Unit value. The Accumulation Units are valued each business day and their values may increase or decrease from day to day. The daily change in value of an Accumulation Unit each day is based on the investment performance of the corresponding Underlying Fund, and the deduction of separate account charges shown in the Fee Table in this prospectus. The number of Accumulation Units we will credit to your Contract once we receive a Purchase Payment or transfer request (or, liquidate for a withdrawal request) is determined by dividing the amount directed to each Variable Funding Option (or, taken from each Variable Funding Option) by the value of its Accumulation Unit. Normally, we calculate the value of an Accumulation Unit for each Variable Funding Option as of the close of regular trading (generally 4:00 p.m. Eastern time) each day the New York Stock Exchange is open. After the value is calculated, we credit your Contract. During the annuity period (i.e., after the Maturity Date), you are credited with Annuity Units. 15 THE VARIABLE FUNDING OPTIONS You choose the Variable Funding Options to which you allocate your Purchase Payments. From time to time we may make new Variable Funding Options available. These Variable Funding Options are Subaccounts of the Separate Account. The Subaccounts invest in the Underlying Funds. You are not investing directly in the Underlying Fund. Each Underlying Fund is a portfolio of an open-end management investment company that is registered with the SEC under the Investment Company Act of 1940. These Underlying Funds are not publicly traded and are only offered through variable annuity contracts, variable life insurance policies, and in some instances, certain retirement plans. They are not the same as the retail mutual funds offered outside of a variable annuity or variable life insurance product, although the investment practices and fund names may be similar and the portfolio managers may be identical. Accordingly, the performance of the retail mutual fund is likely to be different from that of the Underlying Fund. We select the Underlying Funds offered through this Contract based on a number of criteria, including asset class coverage, the strength of the adviser's or subadviser's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we consider during the selection process is whether the Underlying Fund's adviser or subadviser is one of our affiliates or whether the Underlying Fund, its adviser, its subadviser(s), or an affiliate will make payments to us or our affiliates. In this regard, the profit distributions we receive from our affiliated investment advisers are a component of the total revenue that we consider in configuring the features and investment choices available in the variable insurance products that we and our affiliated insurance companies issue. Since we and our affiliated insurance companies may benefit more from the allocation of assets to portfolios advised by our affiliates than those that are not, we may be more inclined to offer portfolios advised by our affiliates in the variable insurance products we issue. For additional information on these arrangements, see "Payments We Receive." We review the Underlying Funds periodically and may remove an Underlying Fund or limit its availability to new Purchase Payments and/or transfers of Contract Value if we determine that the Underlying Fund no longer meets one or more of the selection criteria, and/or if the Underlying Fund has not attracted significant allocations from Contract Owners. In some cases, we have included Underlying Funds based on recommendations made by broker-dealer firms. These broker-dealer firms may receive payments from the Underlying Funds they recommend and may benefit accordingly from the allocation of Contract Value to such Underlying Funds. When the Company develops a variable product in cooperation with a fund family or distributor (e.g. a "private label" product) the Company will generally include Underlying Funds based on recommendations made by the fund family or distributor, whose selection criteria may differ from the Company's selection criteria. WE DO NOT PROVIDE ANY INVESTMENT ADVICE AND DO NOT RECOMMEND OR ENDORSE ANY PARTICULAR UNDERLYING FUND. YOU BEAR THE RISK OF ANY DECLINE IN YOUR CONTRACT VALUE RESULTING FROM THE PERFORMANCE OF THE UNDERLYING FUNDS YOU HAVE CHOSEN. If investment in the Underlying Funds or a particular Underlying Fund is no longer possible, in our judgment becomes inappropriate for purposes of the Contract, or for any other reason in our sole discretion, we may substitute another Underlying Fund or Underlying Funds without your consent. The substituted Underlying Fund may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Purchase Payments, or both. However, we will not make such substitution without any necessary approval of the Securities and Exchange Commission and applicable state insurance departments. Furthermore, we may close Underlying Funds to allocations of Purchase Payments or Contract Value, or both, at any time in our sole discretion. In certain circumstances, the Company's ability to remove or replace an Underlying Fund may be limited by the terms of a five-year agreement between MetLife, Inc. (MetLife) and Legg Mason, Inc. (Legg Mason) relating to the use of certain Underlying Funds advised by Legg Mason affiliates. The agreement sets forth the conditions under which the Company can remove an Underlying Fund, which, in some cases, may differ from the Company's own selection criteria. In addition, during the term of the agreement, subject to the Company's fiduciary and other legal duties, the Company is generally obligated in the first instance to consider Underlying Funds advised by Legg Mason affiliates in seeking to make a substitution for an Underlying Fund advised by a Legg Mason affiliate. The agreement was originally entered into on July 1, 2005 by MetLife and certain affiliates of Citigroup Inc. (Citigroup) as part of MetLife's acquisition of The Travelers Insurance Company and The Travelers Life and Annuity Company (both of which are now MetLife Insurance Company of Connecticut) from Citigroup. Legg Mason replaced the Citigroup affiliates as a party to the agreement when Citigroup sold its asset management business to Legg Mason. The agreement also obligates Legg Mason to continue making payments to the Company with respect to Underlying 16 Funds advised by Legg Mason affiliates, on the same terms provided for in administrative services agreements between Citigroup's asset management affiliates and the Travelers insurance companies that predate the acquisition. PAYMENTS WE RECEIVE. As described above, an investment adviser (other than our affiliates MetLife Advisers, LLC, and Met Investors Advisory LLC) or subadviser of an Underlying Fund, or its affiliates, may make payments to the Company and/or certain of its affiliates. These payments may be used for a variety of purposes, including payment of expenses for certain administrative, marketing and support services with respect to the Contracts, and, in the Company's role as an intermediary, with respect to the Underlying Funds. The Company and its affiliates may profit from these payments. These payments may be derived, in whole or in part, from the advisory fee deducted from Underlying Fund assets. Contract Owners, through their indirect investment in the Underlying Funds, bear the costs of these advisory fees (see the Underlying Funds' prospectuses for more information). The amount of the payments we receive is based on a percentage of assets of the Underlying Funds attributable to the Contracts and certain other variable insurance products that the Company and its affiliates issue. These percentages differ and some advisers or subadvisers (or other affiliates) may pay the Company more than others. These percentages currently range up to 0.50%. Additionally, an investment adviser or subadviser of an Underlying Fund or its affiliates may provide the Company with wholesaling services that assist in the distribution of the Contracts and may pay the Company and/or certain of its affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the adviser or subadviser (or their affiliate) with increased access to persons involved in the distribution of the Contracts. The Company and/or certain of its affiliated insurance companies have joint ownership interests in its affiliated investment advisers MetLife Advisers, LLC and Met Investors Advisory LLC, which are formed as "limited liability companies." The Company's ownership interests in MetLife Advisers, LLC and Met Investors Advisory LLC entitle us to profit distributions if the adviser makes a profit with respect to the advisory fees it receives from the Underlying Fund. The Company will benefit accordingly from assets allocated to the Underlying Funds to the extent they result in profits to the advisers. (See "Fee Table -- Underlying Fund Fees and Expenses" for information on the management fees paid by the Underlying Funds and the Statement of Additional Information for the Underlying Funds for information on the management fees paid by the advisers to the subadvisers.) Certain Underlying Funds have adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act of 1940. An Underlying Fund's 12b-1 Plan, if any, is described in more detail in the Underlying Fund's prospectus. (See "Fee Table -- Underlying Fund Fees and Expenses" and "Other Information -- Distribution of Variable Annuity Contracts.") Any payments we receive pursuant to those 12b-1 Plans are paid to us or our distributor, MetLife Investors Distribution Company. Payments under an Underlying Fund's 12b-1 Plan decrease the Underlying Fund's investment return. Each Underlying Fund has different investment objectives and risks. The Underlying Fund prospectuses contain more detailed information on each Underlying Fund's investment strategy, investment advisers and its fees. You may obtain an Underlying Fund prospectus by calling 866-547-3793 or through your registered representative. We do not guarantee the investment results of the Underlying Funds. The current Underlying Funds are listed below, along with their investment advisers and any subadviser:
FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Franklin Rising Dividends Seeks long-term capital Franklin Advisory Services, LLC Securities Fund appreciation, with preservation of capital as an important consideration. Franklin Small-Mid Cap Growth Seeks long-term capital growth. Franklin Advisers, Inc. Securities Fund Templeton Foreign Securities Fund Seeks long-term capital growth. Templeton Investment Counsel, LLC Subadviser: Franklin Templeton Investment Management Limited
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- LEGG MASON PARTNERS VARIABLE EQUITY TRUST Legg Mason Partners Variable Seeks capital appreciation. Legg Mason Partners Fund Advisor, Aggressive Growth LLC Portfolio -- Class II Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks total return (that is, a Legg Mason Partners Fund Advisor, Capital and Income combination of income and long- LLC Portfolio -- Class II term capital appreciation). Subadvisers: Western Asset Management Company; ClearBridge Advisors, LLC; Western Asset Management Company Limited Legg Mason Partners Variable Seeks long-term capital growth. Legg Mason Partners Fund Advisor, Fundamental Value Current income is a secondary LLC Portfolio -- Class I consideration. Subadviser: ClearBridge Advisors, LLC MET INVESTORS SERIES TRUST Lazard Mid Cap Portfolio -- Class Seeks long-term growth of Met Investors Advisory, LLC B capital. Subadviser: Lazard Asset Management LLC Met/AIM Capital Appreciation Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class E Subadviser: Invesco Aim Capital Management, Inc. MFS(R) Research International Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class B Subadviser: Massachusetts Financial Services Company Oppenheimer Capital Appreciation Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class B Subadviser: OppenheimerFunds, Inc. METROPOLITAN SERIES FUND, INC. BlackRock Money Market Seeks a high level of current MetLife Advisers, LLC Portfolio -- Class A income consistent with Subadviser: BlackRock Advisors, preservation of capital. LLC MFS(R) Total Return Seeks a favorable total return MetLife Advisers, LLC Portfolio -- Class B through investment in a Subadviser: Massachusetts diversified portfolio. Financial Services Company Oppenheimer Global Equity Seeks capital appreciation. MetLife Advisers, LLC Portfolio -- Class B Subadviser: OppenheimerFunds, Inc. PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio Seeks to provide current income Pioneer Investment Management, from an investment grade Inc. portfolio with due regard to preservation of capital and prudent investment risk. Pioneer Cullen Value VCT Seeks capital appreciation, with Pioneer Investment Management, Portfolio current income as a secondary Inc. objective. Subadviser: Cullen Capital Management, Inc. Pioneer Emerging Markets VCT Seeks long-term growth of Pioneer Investment Management, Portfolio capital. Inc.
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- Pioneer Equity Income VCT Seeks current income and long- Pioneer Investment Management, Portfolio term growth of capital from a Inc. portfolio consisting primarily of income producing equity securities of U.S. corporations. Pioneer Fund VCT Portfolio Seeks reasonable income and Pioneer Investment Management, capital growth. Inc. Pioneer Global High Yield VCT Seeks to maximize total return Pioneer Investment Management, Portfolio through a combination of income Inc. and capital appreciation. Pioneer High Yield VCT Portfolio Seeks to maximize total return Pioneer Investment Management, through a combination of income Inc. and capital appreciation. Pioneer Ibbotson Aggressive Seeks long-term capital growth. Pioneer Investment Management, Allocation VCT Portfolio Inc. Subadviser: Ibbotson Associates, LLC Pioneer Ibbotson Growth Seeks long-term capital growth Pioneer Investment Management, Allocation VCT Portfolio and current income. Inc. Subadviser: Ibbotson Associates, LLC Pioneer Ibbotson Moderate Seeks long-term capital growth Pioneer Investment Management, Allocation VCT Portfolio and current income. Inc. Subadviser: Ibbotson Associates, LLC Pioneer Independence VCT Seeks appreciation of capital. Pioneer Investment Management, Portfolio Inc. Pioneer International Value VCT Seeks long-term capital growth. Pioneer Investment Management, Portfolio Inc. Pioneer Mid Cap Value VCT Seeks capital appreciation by Pioneer Investment Management, Portfolio investing in a diversified Inc. portfolio of securities consisting primarily of common stocks. Pioneer Oak Ridge Large Cap Seeks capital appreciation. Pioneer Investment Management, Growth VCT Portfolio Inc. Subadviser: Oak Ridge Investments, LLC Pioneer Real Estate Shares VCT Seeks long-term growth of Pioneer Investment Management, Portfolio capital. Current income is the Inc. portfolio's secondary investment Subadviser: AEW Management and objective. Advisors, L.P. Pioneer Small Cap Value VCT Seeks capital growth by investing Pioneer Investment Management, Portfolio in a diversified portfolio of Inc. securities consisting primarily of common stocks. Pioneer Strategic Income VCT Seeks a high level of current Pioneer Investment Management, Portfolio income. Inc.
Certain Variable Funding Options may have been subject to a merger, substitution or other change. Please see "Appendix C -- Additional Information Regarding Underlying Funds." FIXED ACCOUNT - -------------------------------------------------------------------------------- We may offer our Fixed Account as a funding option. Please refer to your Contract and Appendix D for more information. 19 CHARGES AND DEDUCTIONS - -------------------------------------------------------------------------------- GENERAL We deduct the charges described below. The charges are for the services and benefits we provide, costs and expenses we incur, and risks we assume under the Contracts. Services and benefits we provide include: - the ability for you to make withdrawals and surrenders under the Contracts - the death benefit paid on the death of the Contract Owner, Annuitant, or first of the joint owners - the available funding options and related programs (including dollar cost averaging, portfolio rebalancing, and systematic withdrawal programs) - administration of the annuity options available under the Contracts - the distribution of various reports to Contract Owners Costs and expenses we incur include: - losses associated with various overhead and other expenses associated with providing the services and benefits provided by the Contracts - sales and marketing expenses including commission payments to your registered representative - other costs of doing business Risks we assume include: - that Annuitants may live longer than estimated when the annuity factors under the Contracts were established - that the amount of the death benefit will be greater than the Contract Value - that the costs of providing the services and benefits under the Contracts will exceed the charges deducted We may also deduct a charge for taxes. Unless otherwise specified, charges are deducted proportionately from all funding options in which you are invested. The amount of a charge may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designated charge. For example, the withdrawal charge we collect may not fully cover all of the sales and distribution expenses we actually incur. We may also profit on one or more of the charges. We may use any such profits for any corporate purpose, including the payment of sales expenses. WITHDRAWAL CHARGE We do not deduct a sales charge from Purchase Payments when they are made to the Contract. However, a withdrawal charge will apply if Purchase Payments are withdrawn before they have been in the Contract for seven years. (This includes withdrawals resulting from a request to divide the Contract Value due to divorce.) We will assess the charge as a percentage of the Purchase Payment withdrawn as follows:
YEARS SINCE PURCHASE PAYMENT MADE - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 + years 0%
20 For purposes of the withdrawal charge calculation, withdrawals are deemed to be taken first from: (a) any Purchase Payment to which no withdrawal charge applies, then (b) any remaining free withdrawal allowance (as described below) (after being reduced by (a)), then (c) any remaining Purchase Payment to which a withdrawal charge applies (on a first-in, first-out basis), then (d) any Contract earnings Unless you instruct us otherwise, we will deduct the withdrawal charge from the amount requested. We will not deduct a withdrawal charge if Purchase Payments are distributed: - due to the death of the Contract Owner or the Annuitant (with no Contingent Annuitant surviving) - in the form of lifetime Annuity Payments or Annuity Payments for a fixed period of at least five years - under the Managed Distribution Program - under the Nursing Home Confinement provision (as described in Appendix E) FREE WITHDRAWAL ALLOWANCE Beginning in the second Contract Year, you may withdraw up to 10% of the Contract Value annually, without a withdrawal charge. We calculate the available withdrawal amount as of the end of the previous Contract Year. If you have Purchase Payments no longer subject to a withdrawal charge, the maximum you may withdraw without a withdrawal charge is the greater of (a) the free withdrawal allowance or (b) the total amount of Purchase Payments no longer subject to a withdrawal charge. Any free withdrawal taken will reduce Purchase Payments no longer subject to a withdrawal charge. The free withdrawal allowance applies to any partial or full withdrawal. The free withdrawal allowance is not cumulative from year to year. Any withdrawal is subject to federal income taxes on the taxable portion. In addition, a 10% federal penalty may be assessed on any withdrawal if the Contract Owner is under age 59 1/2. You should consult with your tax adviser regarding the tax consequences of a withdrawal. TRANSFER CHARGE We reserve the right to assess a transfer charge of up to $10.00 on transfers exceeding 12 per year. We will notify you in writing at your last known address at least 31 days before we impose any such transfer charge. ADMINISTRATIVE CHARGES There are two administrative charges: the $30 annual Contract administrative charge and the administrative expense charge. The annual Contract administrative charge will be deducted on a pro-rata basis from amounts allocated to the Variable Funding Options. We will deduct this charge on the fourth Friday of each August. This charge compensates us for expenses incurred in establishing and maintaining the Contract and we will prorate this charge (i.e. calculate) from the date of purchase. We will prorate this charge if you surrender your Contract, or if we terminate your Contract. We will not deduct a Contract administrative charge from the Fixed Account, if it is available, or: (1) from the distribution of death proceeds; (2) after an annuity payout has begun; or (3) if the Contract Value on the date of assessment equals or is greater than $40,000. We deduct the administrative expense charge (sometimes called "Subaccount administrative charge") on each business day from amounts allocated to the Variable Funding Options to compensate the Company for certain related administrative and operating expenses. The charge equals, on an annual basis, 0.15% of the daily net asset 21 value allocated to each of the Variable Funding Options, and is reflected in our Accumulation and Annuity Unit value calculations. MORTALITY AND EXPENSE RISK CHARGE Each business day, we deduct a mortality and expense risk ("M&E") charge from amounts held in the Variable Funding Options. We reflect the deduction in our calculation of Accumulation and Annuity Unit values. The charges stated are the maximum for this product. We reserve the right to lower this charge at any time. If you choose the Standard Death Benefit, the M&E charge equals 1.35% annually. If you choose the Enhanced Death Benefit, the M&E charge equals 1.60% annually. This charge compensates the Company for risks assumed, benefits provided and expenses incurred, including the payment of commissions to your registered representative. VARIABLE LIQUIDITY BENEFIT CHARGE If the Variable Liquidity Benefit is selected, there is a maximum charge of 6% of the amounts withdrawn. This charge is not assessed during the accumulation phase. We will assess the charge as a percentage of the total benefit received as follows:
YEARS SINCE INITIAL PURCHASE PAYMENT - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 2 years 6% 2 years 4 years 5% 4 years 5 years 4% 5 years 6 years 3% 6 years 7 years 2% 7 + years 0%
Please refer to "Payment Options" for a description of this benefit. ENHANCED STEPPED-UP PROVISION CHARGE If the E.S.P. option is selected, a charge is deducted each business day from amounts held in the Variable Funding Options. The charge equals, on an annual basis, 0.20% of the amounts held in each funding option. The E.S.P. option is available if the owner and Annuitant are both age 75 or younger on the Contract Date. GUARANTEED MINIMUM WITHDRAWAL BENEFIT CHARGE If you elect to add a GMWB rider to your Contract, a charge is deducted each business day from amounts held in the Variable Funding Options. The charge depends on which GWMB rider you select. The current charge for each rider is as follows: GMWB I: 0.40%; GMWB II: 0.50%; and GMWB III: 0.25%. Your current charge will not change unless you are able to reset your benefits, at which time we may modify the charge, which will never exceed 1.00%. These GMWB riders may be elected only at the time of your initial purchase of the Contract. GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE") CHARGE If you elect the GMWB for Life rider, a charge is deducted each business day from amounts held in each Variable Funding Option. The current charge, on an annual basis, is 0.65% if you select the Single Life Option, or 0.80% if you select the Joint Life Option. Your current charge may increase when your benefits automatically reset, unless you notify us not to reset your benefits (see "LIVING BENEFITS -- Guaranteed Minimum Withdrawal Benefit for Life"). The charge will never exceed 1.50%. You cannot cancel the rider, although the rider terminates under certain circumstances (see "Termination"). You may elect the GMWB for Life rider only at the time of your initial purchase of the Contract. 22 GUARANTEED MINIMUM ACCUMULATION BENEFIT CHARGE If the GMAB option is selected, a charge is deducted each business day from amounts held in the Variable Funding Options. The charge equals, on an annual basis, 0.50% of the amounts held in each funding option. VARIABLE FUNDING OPTION EXPENSES We summarized the charges and expenses of the Underlying Funds in the fee table. Please review the prospectus for each Underlying Fund for a more complete description of that fund and its expenses. Underlying Fund expenses are not fixed or guaranteed and are subject to change by the Fund. PREMIUM TAX Certain state and local governments charge premium taxes ranging from 0% to 3.5%, depending upon jurisdiction. We are responsible for paying these taxes and will determine the method used to recover premium tax expenses incurred. We will deduct any applicable premium taxes from your Contract Value either upon death, surrender, annuitization, or at the time you make Purchase Payments to the Contract, but no earlier than when we have a tax liability under state law. CHANGES IN TAXES BASED UPON PREMIUM OR VALUE If there is any change in a law assessing taxes against the Company based upon premiums, contract gains or value of the Contract, we reserve the right to charge you proportionately for this tax. TRANSFERS - -------------------------------------------------------------------------------- Subject to the limitations described below, you may transfer all or part of your Contract Value between Variable Funding Options at any time up to 30 days before the Maturity Date. After the Maturity Date, you may make transfers only if allowed by your Contract or with our consent. Transfer requests received at our Home Office that are in good order before the close of the New York Stock Exchange (NYSE) will be processed according to the value(s) next computed following the close of business. Transfer requests received on a non-business day or after the close of the NYSE will be processed based on the value(s) next computed on the next business day. Where permitted by state law, we reserve the right to restrict transfers from the Variable Funding Options to the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified under the Contract. Currently, there are no charges for transfers; however, we reserve the right to charge a fee for any transfer request which exceeds twelve per year. Since each Underlying Fund may have different overall expenses, a transfer of Contract Values from one Variable Funding Option to another could result in your investment becoming subject to higher or lower expenses. Also, when making transfers, you should consider the inherent risks associated with the Variable Funding Options to which your Contract Value is allocated. MARKET TIMING/EXCESSIVE TRADING Frequent requests from Contract Owners to transfer Contract Value may dilute the value of an Underlying Fund's shares if the frequent trading involves an attempt to take advantage of pricing inefficiencies created by a lag between a change in the value of the securities held by the Underlying Fund and the reflection of that change in the Underlying Fund's share price ("arbitrage trading"). Regardless of the existence of pricing inefficiencies, frequent transfers may also increase brokerage and administrative costs of the Underlying Funds and may disrupt Underlying Fund management strategy, requiring an Underlying Fund to maintain a high cash position and possibly resulting in lost investment opportunities and forced liquidations ("disruptive trading"). Accordingly, arbitrage trading and disruptive trading activities (referred to collectively as "market timing") may adversely affect the long-term performance of the Underlying Funds, which may in turn adversely affect Contract Owners and other persons who may have an interest in the Contracts (e.g., annuitants and beneficiaries). 23 We have policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading. Currently, we believe that such situations may be presented in the international, small-cap, and high-yield Underlying Funds, i.e., Franklin Small- Mid Cap Growth Securities Fund, Templeton Foreign Securities Fund, MFS((R)) Research International Portfolio, Oppenheimer Global Equity Portfolio, Pioneer Emerging Markets VCT Portfolio, Pioneer Global High Yield VCT Portfolio, Pioneer High Yield VCT Portfolio, Pioneer International Value VCT Portfolio, Pioneer Small Cap Value VCT Portfolio and Pioneer Strategic Income VCT Portfolio (the "Monitored Portfolios"), and we monitor transfer activity in those Monitored Portfolios. We employ various means to monitor transfer activity, such as examining the frequency and size of transfers into and out of the Monitored Portfolios within given periods of time. For example, we currently monitor transfer activity to determine if, for each of the Monitored Portfolios, in a three-month period there were two or more "round-trips" of a certain dollar amount or greater. A round-trip is defined as a transfer in followed by a transfer out within the next 10 calendar days, or a transfer out followed by a transfer in within the next 10 calendar days. In the case of a Contract that has been restricted previously, a single round-trip of a certain dollar amount or greater will trigger the transfer restrictions described below. We do not believe that other Underlying Funds present a significant opportunity to engage in arbitrage trading and therefore do not monitor transfer activity in those Underlying Funds. We may change the Monitored Portfolios at any time without notice in our sole discretion. In addition to monitoring transfer activity in certain Underlying Funds, we rely on the Underlying Funds to bring any potential disruptive trading activity they identify to our attention for investigation on a case-by-case basis. We will also investigate other harmful transfer activity that we identify from time to time. We may revise these policies and procedures in our sole discretion at any time without prior notice. Our policies and procedures may result in transfer restrictions being applied to deter market timing. Currently, when we detect transfer activity in the Monitored Portfolios that exceeds our current transfer limits, or other transfer activity that we believe may be harmful to other Owners or other persons who have an interest in the Contracts, we will exercise our contractual right to restrict your number of transfers to one every six months. In addition, we also reserve the right, but do not have the obligation, to further restrict the right to request transfers by any market timing firm or any other third party who has been authorized to initiate transfers on behalf of multiple Contract Owners. We may, among other things: - reject the transfer instructions of any agent acting under a power of attorney on behalf of more than one Owner, or - reject the transfer or exchange instructions of individual Owners who have executed pre-authorized transfer forms which are submitted by market timing firms or other third parties on behalf of more than one Owner. Transfers made under a Dollar Cost Averaging Program, a rebalancing program or, if applicable, any asset allocation program described in this prospectus are not treated as transfers when we evaluate trading patterns for market timing. The detection and deterrence of harmful transfer activity involves judgments that are inherently subjective, such as the decision to monitor only those Underlying Funds that we believe are susceptible to arbitrage trading or the determination of the transfer limits. Our ability to detect and/or restrict such transfer activity may be limited by operational and technological systems, as well as our ability to predict strategies employed by Owners to avoid such detection. Our ability to restrict such transfer activity also may be limited by provisions of the Contract. Accordingly, there is no assurance that we will prevent all transfer activity that may adversely affect Owners and other persons with interests in the Contracts. We do not accommodate market timing in any Underlying Fund and there are no arrangements in place to permit any Contract Owner to engage in market timing; we apply our policies and procedures without exception, waiver, or special arrangement. The Underlying Funds may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares and we reserve the right to enforce these policies and procedures. For example, Underlying Funds may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the Underlying Funds describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Although we may not have the contractual authority or the operational capacity to apply the frequent trading policies and procedures of the Underlying Funds, we have entered into a written agreement, as required by SEC regulation, with each Underlying Fund or its principal underwriter that obligates us to provide to the Underlying Fund promptly upon request certain information about the trading activity of individual Contract Owners, and to execute instructions from the 24 Underlying Fund to restrict or prohibit further purchases or transfers by specific Contract Owners who violate the frequent trading policies established by the Underlying Fund. In addition, Contract Owners and other persons with interests in the contracts should be aware that the purchase and redemption orders received by the Underlying Funds generally are "omnibus" orders from intermediaries, such as separate accounts funding variable insurance contracts or retirement plans. The omnibus orders reflect the aggregation and netting of multiple orders from individual owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Underlying Funds in their ability to apply their frequent trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the Underlying Funds (and thus Contract Owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the Underlying Funds. If an Underlying Fund believes that an omnibus order reflects one or more transfer requests from Contract Owners engaged in disruptive trading activity, the Underlying Fund may reject the entire omnibus order. In accordance with applicable law, we reserve the right to modify or terminate the transfer privilege at any time. We also reserve the right to defer or restrict the transfer privilege at any time that we are unable to purchase or redeem shares of any of the Underlying Funds, including any refusal or restriction on purchases or redemptions of their shares as a result of their own policies and procedures on market timing activities (even if an entire omnibus order is rejected due to the market timing activity of a single Contract Owner). You should read the Underlying Fund prospectuses for more details. DOLLAR COST AVERAGING Dollar cost averaging or the pre-authorized transfer program (the "DCA Program") allows you to transfer a set dollar amount to other funding options on a monthly or quarterly basis during the accumulation phase of the Contract. Using this method, you will purchase more Accumulation Units in a funding option if the value per unit is low and will purchase fewer Accumulation Units if the value per unit is high. Therefore, you may achieve a lower-than-average cost per unit in the long run if you have the financial ability to continue the program over a long enough period of time. Dollar cost averaging does not assure a profit or protect against a loss. You may elect the DCA Program through Written Request or other method acceptable to us. You must have a minimum total Contract Value of $5,000 to enroll in the DCA Program. The minimum amount that may be transferred through this program is $400. There is no additional fee to participate in the DCA Program. You may establish pre-authorized transfers of Contract Values from the Fixed Account, subject to certain restrictions. Under the DCA Program, automated transfers from the Fixed Account may not deplete your Fixed Account Value in less than twelve months from your enrollment in the DCA Program. In addition to the DCA Program, within the Fixed Account, we may credit increased interest rates to Contract Owners under an administrative Special DCA Program established at our discretion, depending on availability and state law. Under this program, the Contract Owner may pre-authorize level transfers to any of the funding options under a 6 Month, 12 Month or 24 Month Special DCA Program. The programs may have different credited interest rates. We must transfer all Purchase Payments and accrued interest on a level basis to the selected funding options in the applicable time period. Under each program, the interest will accrue only on the remaining amounts in the Special DCA Program. For example, under the 12 Month program, the interest rate can accrue up to 12 months on the remaining amounts in the Special DCA Program and we must transfer all Purchase Payments and accrued interest in this program on a level basis to the selected funding options in 12 months. The pre-authorized transfers will begin after the initial program Purchase Payment and complete enrollment instructions are received by the Company. If we do not receive complete program enrollment instructions within 15 days of receipt of the initial program Purchase Payment, the entire balance in the program will be transferred into the Money Market Variable Funding Option. You may start or stop participation in the DCA Program at any time, but you must give the Company at least 30 days' notice to change any automated transfer instructions that are currently in place. If you stop the Special DCA Program and elect to remain in the Fixed Account, we will credit your Contract Value for the remainder of 6 or 12 months with the interest rate for non-DCA Program funds. 25 You may only have one DCA Program or Special DCA Program in place at one time. All provisions and terms of the Contract apply to the DCA and Special DCA Programs, including provisions relating to the transfer of money between funding options. Transfers made under any DCA Program will not be counted for purposes of restrictions we may impose on the number of transfers permitted under the Contract. We reserve the right to suspend or modify transfer privileges at any time and to assess a processing fee for this service. If the Fixed Account is not available as a funding option, you may still participate in the DCA Program. ACCESS TO YOUR MONEY - -------------------------------------------------------------------------------- Any time before the Maturity Date, you may redeem all or any portion of the Cash Surrender Value, that is, the Contract Value less any withdrawal charge, and any premium tax not previously deducted. Unless you submit a Written Request specifying the Variable Funding Option(s) and/or the Fixed Account from which we are to withdraw amounts, we will make the withdrawal on a pro rata basis. We will determine the Cash Surrender Value as of the close of business after we receive your surrender request at our Home Office. The Cash Surrender Value may be more or less than the Purchase Payments you made. You may not make withdrawals during the annuity period. For amounts allocated to the Variable Funding Options, we may defer payment of any Cash Surrender Value for a period of up to five business days after the Written Request is received. For amounts allocated to the Fixed Account, we may defer payment of any Cash Surrender Value for a period up to six months. In either case, it is our intent to pay as soon as possible. We cannot process requests for withdrawals that are not in good order. We will contact you if there is a deficiency causing a delay and will advise what is needed to act upon the withdrawal request. We may withhold payment of surrender or withdrawal proceeds if any portion of those proceeds would be derived from a Contract Owner's check that has not yet cleared (i.e., that could still be dishonored by your banking institution). We may use telephone, fax, Internet or other means of communications to verify that payment from the Contract Owner's check has been or will be collected. We will not delay payment longer than necessary for us to verify that payment has been or will be collected. Contract Owners may avoid the possibility of delay in the disbursement of proceeds coming from a check that has not yet cleared by providing us with a certified check. If your Contract is issued as part of a 403(b) plan, there are restrictions on your ability to make withdrawals from your Contract. You may not withdraw contributions or earnings made to your Contract after December 31, 1988 unless you are (a) age 59 1/2, (b) no longer employed, (c) deceased, (d) disabled, or (e) experiencing a financial hardship. Even if you are experiencing a financial hardship, you may only withdraw contributions, not earnings. You should consult with your tax adviser before making a withdrawal from your Contract. SYSTEMATIC WITHDRAWALS Before the Maturity Date, you may choose to withdraw a specified dollar amount (at least $100) on a monthly, quarterly, semiannual or annual basis. We will deduct any applicable premium taxes and withdrawal charge. To elect systematic withdrawals, you must have a Contract Value of at least $15,000 and you must make the election on the form we provide. We will surrender Accumulation Units pro rata from all funding options in which you have an interest, unless you instruct us otherwise. You may begin or discontinue systematic withdrawals at any time by notifying us in writing, but you must give at least 30 days' notice to change any systematic withdrawal instructions that are currently in place. We reserve the right to discontinue offering systematic withdrawals upon 30 days' written notice to Contract Owners (where allowed by state law). There is currently no additional fee for electing systematic withdrawals. Each systematic withdrawal is subject to federal income taxes on the taxable portion and may be subject to Contract charges. In addition, a 10% federal penalty tax may be assessed on systematic withdrawals if the Contract Owner is under age 59 1/2. You should consult with your tax adviser regarding the tax consequences of systematic withdrawals. MANAGED DISTRIBUTION PROGRAM. Under the systematic withdrawal option, you may choose to participate in the Managed Distribution Program. At no cost to you, you may instruct us to calculate and make minimum distributions that may be required by the IRS upon reaching age 70 1/2. (See "Federal Tax Considerations.") These payments will not 26 be subject to the withdrawal charge and will be in lieu of the free withdrawal allowance. No Dollar Cost Averaging will be permitted if you are participating in the Managed Distribution Program. OWNERSHIP PROVISIONS - -------------------------------------------------------------------------------- TYPES OF OWNERSHIP CONTRACT OWNER The Contract belongs to the Contract Owner named in the Contract (on the Contract Specifications page), or to any other person to whom you subsequently assign the Contract. You may only make an assignment of ownership or a collateral assignment for Non-qualified Contracts. You have sole power during the Annuitant's lifetime to exercise any rights and to receive all benefits given in the Contract provided you have not named an irrevocable beneficiary and provided you have not assigned the Contract. You receive all payments while the Annuitant is alive unless you direct them to an alternate recipient. An alternate recipient does not become the Contract Owner. If this Contract is purchased by a beneficiary of another contract who directly transferred the death proceeds due under that contract, he/she will be granted the same rights the owner has under the Contract except that he/she cannot transfer ownership, or make additional Purchase Payments. Joint Owner. For Non-qualified Contracts only, you may name joint owners (e.g., spouses) in a Written Request before the Contract is in effect. Joint owners may independently exercise transfers allowed under the Contract. All other rights of ownership must be exercised by both owners. Joint owners own equal shares of any benefits accruing or payments made to them. BENEFICIARY You name the beneficiary in a Written Request. The beneficiary has the right to receive any death benefit proceeds remaining under the Contract upon the death of the Annuitant or the Contract Owner. If more than one beneficiary survives the Annuitant or Contract Owner, they will share equally in benefits unless you recorded different shares with the Company by Written Request before the death of the Annuitant or Contract Owner. In the case of a non-spousal beneficiary or a spousal beneficiary who has not chosen to assume the Contract, we will not transfer or otherwise remove the death benefit proceeds from either the Variable Funding Options or the Fixed Account, as most recently elected by the Contract Owner, until the Death Report Date. Unless you have named an irrevocable beneficiary you have the right to change any beneficiary by Written Request during the lifetime of the Annuitant and while the Contract continues. ANNUITANT The Annuitant is designated in the Contract (on the Contract Specifications page), and is the individual on whose life the Maturity Date and the amount of the monthly Annuity Payments depend. You may not change the Annuitant after your Contract is in effect. Contingent Annuitant. You may name one individual as a Contingent Annuitant. A Contingent Annuitant may not be changed, deleted or added to the Contract after the Contract Date. If the Annuitant who is not the owner dies prior to the Maturity Date, and the Contingent Annuitant is still living: - the death benefit will not be payable upon the Annuitant's death - the Contingent Annuitant becomes the Annuitant - all other rights and benefits will continue in effect When a Contingent Annuitant becomes the Annuitant, the Maturity Date remains the same as previously in effect. 27 If the Annuitant is also the owner, a death benefit is paid to the beneficiary regardless of whether or not there is a Contingent Annuitant. DEATH BENEFIT - -------------------------------------------------------------------------------- Before the Maturity Date, generally, a death benefit is payable when either the Annuitant or a Contract Owner dies. We calculate the death benefit at the close of the business day on which our Home Office receives (1) Due Proof of Death and (2) written payment instructions or election of spousal contract continuance or beneficiary contract continuance ("Death Report Date"). There are age restrictions on certain death benefits (see The Annuity Contract section). DEATH PROCEEDS BEFORE THE MATURITY DATE NOTE: If the owner dies before the Annuitant, the death benefit is recalculated, replacing all references to "Annuitant" below with "Owner". All death benefits described below will be reduced by any premium tax not previously deducted. STANDARD DEATH BENEFIT We will pay to the beneficiary a death benefit in an amount equal to the greatest of (1), (2) or (3) below: (1) the Contract Value on the Death Report Date (2) your adjusted Purchase Payment (see below) or* (3) the Step-Up Value (if any, as described below)** ENHANCED DEATH BENEFIT
- ------------------------------------------------------------------------------------- If the Annuitant dies before age 80, the death benefit will be the greatest of: - the Contract Value on the Death Report Date; - your adjusted Purchase Payment (see below)*; - the Step-Up Value, if any, as described below** or - the Roll-Up Death Benefit Value (as described below)** - ------------------------------------------------------------------------------------- If the Annuitant dies on or after age 80, the death benefit will be the greatest of: - the Contract Value on the Death Report Date; - your adjusted Purchase Payment (see below)* or - the Step-Up Value, if any, as described below** or - the Roll-Up Death Benefit Value (as described below)** on the Annuitant's 80th birthday, plus any additional Purchase Payments and minus any partial surrender reductions (as described below) that occur after the Annuitant's 80th birthday - -------------------------------------------------------------------------------------
- --------- (*) If you purchased a GMWB rider and if your Contract provides for a death benefit amount that is the greatest of multiple benefits including the Adjusted Purchase Payment, your Adjusted Purchase Payment will not be calculated as described below, but instead will be equal to your aggregate Purchase Payments minus your aggregate withdrawals from the date the GMWB rider is added to your Contract. ** Your Step-Up Value or your Roll-Up Death Benefit will be subject to the partial surrender reduction below even if you have elected one of the four GMWB riders. ADJUSTED PURCHASE PAYMENT. The initial Adjusted Purchase Payment is equal to the initial Purchase Payment. Whenever an additional Purchase Payment is made, the Adjusted Purchase Payment is increased by the amount of the Purchase Payment. Whenever a partial surrender is taken, the Adjusted Purchase Payment is reduced by a Partial Surrender Reduction, described below. 28 STEP-UP VALUE+ The Step-Up Value will initially equal the Contract Value on the first Contract Date anniversary. On each subsequent Contract Date anniversary that occurs before the Annuitant's 80th birthday and before the Annuitant's death, if the Contract Value is greater than the Step-Up Value, the Step-Up Value will be increased to equal the Contract Value. If the Step-Up Value is greater than the Contract Value, the Step-Up Value will remain unchanged. Whenever a Purchase Payment is made, the Step-Up Value will be increased by the amount of that Purchase Payment. Whenever a withdrawal is taken, the Step-Up Value will be reduced by a partial surrender reduction as described below. The only changes made to the Step-Up Value on or after the Annuitant's 80(th) birthday will be those related to additional Purchase Payments or partial surrenders as described below. ROLL-UP DEATH BENEFIT VALUE(+) On the Contract Date, the Roll-Up Death Benefit Value is equal to the Purchase Payment. On each Contract Date anniversary, the Roll-Up Death Benefit Value will be recalculated to equal a) plus b) minus c), increased by 5%, where: (a) is the Roll-Up Death Benefit Value as of the previous Contract Date anniversary (b) is any Purchase Payment made during the previous Contract Year (c) is any Partial Surrender Reduction (as described below) during the previous Contract Year. On dates other than the Contract Date anniversary, the Roll-Up Death Benefit Value will equal a) plus b) minus c) where: (a) is the Roll-Up Death Benefit Value as of the previous Contract Date anniversary (b) is any Purchase Payment made since the previous Contract Date anniversary (c) is any Partial Surrender Reduction (as described below) since the previous Contract Date anniversary The maximum Roll-Up Death Benefit equals 200% of the difference between all Purchase Payments and all Partial Surrender Reductions** (as described below). - --------- + May not be available in all states. Please check with your registered representative. PARTIAL SURRENDER REDUCTIONS ADJUSTED PURCHASE PAYMENT: The Partial Surrender Reduction equals (1) the Adjusted Purchase Payment in effect immediately before the reduction for withdrawal, multiplied by (2) the amount of the withdrawal, divided by (3) the Contract Value before the surrender. STEP-UP AND ROLL-UP VALUE: The Partial Surrender Reduction equals (1) the death benefit value (Step-Up or Roll-Up Value) in effect immediately before the reduction for withdrawal, multiplied by (2) the amount of the withdrawal, divided by (3) the Contract Value before the surrender. EXAMPLE OF PARTIAL SURRENDER REDUCTIONS. For example, assume your current Contract Value is $55,000. If your current Adjusted Purchase Payment, Step-Up or Roll-Up Value is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Adjusted Purchase Payment, Step-Up or Roll-Up Value as follows: $50,000 x ($10,000/$55,000) = $9,090 Your new adjusted Purchase Payment, Step-Up or Roll-Up Value would be $50,000- $9,090, or $40,910. The following example shows what would happen in a declining market. Assume your current Contract Value is $30,000. If your current adjusted Purchase Payment, Step-Up or Roll-Up Value is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the Adjusted Purchase Payment, Step-Up or Roll-Up Value as follows: $50,000 x ($10,000/$30,000) = $16,666 29 Your new adjusted Purchase Payment, Step-Up or Roll-Up Value would be $50,000- $16,666, or $33,334. ENHANCED STEPPED-UP PROVISION ("E.S.P.") THIS PROVISION IS NOT AVAILABLE TO A CUSTOMER WHEN EITHER THE ANNUITANT OR OWNER IS AGE 76 OR OLDER ON THE RIDER EFFECTIVE DATE. THIS PROVISION MAY NOT BE AVAILABLE IN ALL STATES. PLEASE CHECK WITH YOUR REGISTERED REPRESENTATIVE. The rider effective date is the date the rider is attached to and made a part of the Contract. If you have selected the E.S.P., the total death benefit as of the Death Report Date will equal the death benefit described above plus the greater of zero or the following amount: IF THE ANNUITANT IS YOUNGER THAN AGE 70 ON THE RIDER EFFECTIVE DATE, 40% OF THE LESSER OF: (1) 200% of the modified Purchase Payments excluding Purchase Payments that are both received after the first rider effective date anniversary and within 12 months of the Death Report Date, or (2) your Contract Value minus the modified Purchase Payments, calculated as of the Death Report Date; or IF THE ANNUITANT IS BETWEEN THE AGES OF 70 AND 75 ON THE RIDER EFFECTIVE DATE, 25% OF THE LESSER OF: (1) 200% of the modified Purchase Payments excluding Purchase Payments that are both received after the first rider effective date anniversary and within 12 months of the Death Report Date, or (2) your Contract Value minus the modified Purchase Payments, calculated as of the Death Report Date. THE INITIAL MODIFIED PURCHASE PAYMENT is equal to the Contract Value as of the rider effective date. Whenever a Purchase Payment is made after the rider effective date, the modified Purchase Payment(s) are increased by the amount of the Purchase Payment. Whenever a partial surrender is taken after the rider effective date, the modified Purchase Payment(s) are reduced by a partial surrender reduction as described below. THE PARTIAL SURRENDER REDUCTION IS EQUAL TO: (1) the modified Purchase Payment(s) in effect immediately prior to the reduction for the partial surrender, multiplied by (2) the amount of the partial surrender divided by (3) the Contract Value immediately prior to the partial surrender. For example, assume your current modified Purchase Payment is $50,000 and that your current Contract Value is $55,000. You decide to make a withdrawal of $10,000. We would reduce the modified Purchase Payment as follows: $50,000 x ($10,000/$55,000) = $9,090 You new modified Purchase Payment would be $50,000-$9,090 = $40,910. The following example shows what would happen in a declining market. Assume your current Contract Value is $30,000. If your current modified Purchase Payment is $50,000 and you decide to make a withdrawal of $10,000, we would reduce the modified Purchase Payment as follows: $50,000 x ($10,000/$30,000) = $16,666 Your new modified Purchase Payment would be $50,000-$16,666 = $33,334. PAYMENT OF PROCEEDS We describe the process of paying death benefit proceeds before the Maturity Date in the charts below. The charts do not encompass every situation and are merely intended as a general guide. More detailed information is provided in your Contract. Generally, the person(s) receiving the benefit may request that the proceeds be paid in a lump sum, or be applied to one of the settlement options available under the Contract. 30 NON-QUALIFIED CONTRACTS
- -------------------------------------------------------------------------------------------------------------- MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: UNLESS... APPLY* - -------------------------------------------------------------------------------------------------------------- OWNER (WHO IS NOT THE The beneficiary(ies), or if The beneficiary elects to Yes ANNUITANT) (WITH NO JOINT none, to the Contract continue the Contract rather OWNER) owner's estate. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- OWNER (WHO IS THE ANNUITANT) The beneficiary(ies), or if The beneficiary elects to Yes (WITH NO JOINT OWNER) none, to the Contract continue the Contract rather owner's estate. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- NON-SPOUSAL JOINT OWNER (WHO The surviving joint owner. Yes IS NOT THE ANNUITANT) - -------------------------------------------------------------------------------------------------------------- NON-SPOUSAL JOINT OWNER (WHO The beneficiary(ies), or if The beneficiary elects to Yes IS THE ANNUITANT) none, to the surviving joint continue the Contract rather owner. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- SPOUSAL JOINT OWNER (WHO IS The surviving joint owner. The spouse elects to Yes NOT THE ANNUITANT) continue the Contract. - -------------------------------------------------------------------------------------------------------------- SPOUSAL JOINT OWNER (WHO IS The beneficiary(ies) or, if The spouse elects to Yes THE ANNUITANT) none, to the surviving joint continue the Contract. owner. A spouse who is not the beneficiary may decline to continue the Contract and instruct the Company to pay the beneficiary who may elect to continue the Contract. - -------------------------------------------------------------------------------------------------------------- ANNUITANT (WHO IS NOT THE The beneficiary(ies), or if The beneficiary elects to Yes CONTRACT OWNER) none, to the Contract Owner. continue the Contract rather than receive a lump sum distribution. But, if there is a Contingent Annuitant, then, the Contingent Annuitant becomes the Annuitant and the Contract continues in effect (generally using the original Maturity Date). The proceeds will then be paid upon the death of the Contingent Annuitant or owner. - -------------------------------------------------------------------------------------------------------------- ANNUITANT (WHO IS THE See death of "owner who is Yes CONTRACT OWNER) the Annuitant" above. - --------------------------------------------------------------------------------------------------------------
31
- -------------------------------------------------------------------------------------------------------------- MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: UNLESS... APPLY* - -------------------------------------------------------------------------------------------------------------- ANNUITANT (WHERE OWNER IS A NON-NATURAL ENTITY/TRUST) The beneficiary(ies) or if Yes (Death of Annuitant is none, to the owner. treated as death of the owner in these circumstances.) - -------------------------------------------------------------------------------------------------------------- BENEFICIARY No death proceeds are N/A payable; Contract continues. - -------------------------------------------------------------------------------------------------------------- CONTINGENT BENEFICIARY No death proceeds are N/A payable; Contract continues. - --------------------------------------------------------------------------------------------------------------
QUALIFIED CONTRACTS
- -------------------------------------------------------------------------------------------------------------- MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: UNLESS... APPLY* - -------------------------------------------------------------------------------------------------------------- OWNER/ANNUITANT The beneficiary(ies), or if The beneficiary elects to Yes none, to the Contract continue the Contract rather owner's estate. than receive a lump sum distribution. - -------------------------------------------------------------------------------------------------------------- BENEFICIARY No death proceeds are N/A payable; Contract continues. - -------------------------------------------------------------------------------------------------------------- CONTINGENT BENEFICIARY No death proceeds are N/A payable; Contract continues. - --------------------------------------------------------------------------------------------------------------
- --------- * Certain payout rules of the Code are triggered upon the death of any owner. Non-spousal beneficiaries (as well as spousal beneficiaries who choose not to assume the Contract) must begin taking distributions based on the beneficiary's life expectancy within one year of death or take a complete distribution of contract proceeds within 5 years of death. For Qualified Contracts, if mandatory distributions have begun at the Annuitant's death, the 5-year payout option is not available. SPOUSAL CONTRACT CONTINUANCE (SUBJECT TO AVAILABILITY -- DOES NOT APPLY IF A NON-SPOUSE IS A JOINT OWNER) Within one year of your death, if your spouse is named as an owner and/or beneficiary, and you die before the Maturity Date, your spouse may elect to continue the Contract as owner rather than have the death benefit paid to the beneficiary. If you were the Annuitant and your spouse elects to continue the Contract, your spouse will be named the Annuitant as of the Death Report Date. If your spouse elects to continue the Contract as Contract Owner, the death benefit will be calculated as of the Death Report Date. If the Contract Value is less than the calculated death benefit, the Contract Value will be increased to equal the death benefit. This amount is referred to as the adjusted Contract Value. Any difference between the Contract Value and the adjusted Contract Value will be allocated to the funding options in the same proportion as the allocations of the Contract prior to the Death Report Date. The terms and conditions that applied to the original Contract (including Contract fees and charges) will also apply to the continued Contract, with certain exceptions described in the Contract. Any Purchase Payment made before the Death Report Date is no longer subject to a withdrawal charge if your spouse elects to continue the Contract. Purchase Payments made to the Contract after the Death Report Date will be subject to the withdrawal charge. All other benefits and features of your Contract will be based on your spouse's age on the Death Report Date as if your spouse had purchased the Contract with the adjusted Contract Value on the Death Report Date. This spousal contract continuance is available only once for each Contract. For purposes of the death benefit on the continued Contract, the death benefit will be calculated the same as prior to continuance except all values used to calculate the death 32 benefit, which may include a Step-Up Value or Roll-Up Death Benefit Value (depending on the optional benefit), are reset on the date the spouse continues the contract. Spousal continuation will not satisfy required minimum distribution rules for Qualified Contracts other than IRAs. In addition, because the contract proceeds must be distributed within the time periods required by the federal Internal Revenue Code, the right of a spouse to continue the contract, and all contract provisions relating to spousal continuation, are available only to a person who is defined as a "spouse" under the federal Defense of Marriage Act, or any other applicable federal law. Accordingly, a purchaser who has or is contemplating a civil union should note that a a civil union partner would not be able to receive continued payments upon the death of the Owner under the Joint Life version of the GMWB for Life (the "Living Income Guarantee for 2"). Please consult a tax advisor before electing this option. BENEFICIARY CONTRACT CONTINUANCE (NOT PERMITTED FOR NON-NATURAL BENEFICIARIES) If you die before the Maturity Date, and if the value of any beneficiary's portion of the death benefit is between $20,000 and $1,000,000 as of the Death Report Date, (more than $1,000,000 is subject to Home Office approval), your beneficiary(ies) may elect to continue his/her portion of the Contract subject to applicable Internal Revenue Code distribution requirements, rather than receive the death benefit in a lump sum. If the beneficiary chooses to continue the Contract, the beneficiary can extend the payout phase of the Contract enabling the beneficiary to "stretch" the death benefit distributions out over his life expectancy as permitted by the Internal Revenue Code. If your beneficiary elects to continue the Contract, the death benefit will be calculated as of the Death Report Date. The initial Contract Value of the continued Contract (the "adjusted Contract Value") will equal the greater of the Contract Value or the death benefit calculated on the Death Report Date and will be allocated to the funding options in the same proportion as prior to the Death Report Date. If the adjusted Contract Value is allocated to the Variable Funding Options, the beneficiary bears the investment risk. The beneficiary who continues the Contract will be granted the same rights as the owner under the original Contract, except the beneficiary cannot: - transfer ownership - make additional Purchase Payments The beneficiary may also name his/her own beneficiary ("succeeding beneficiary") and has the right to take withdrawals at any time after the Death Report Date without a withdrawal charge. The E.S.P. option is not available to a beneficiary continuing the Contract under this provision. All other fees and charges applicable to the original Contract will also apply to the continued Contract; the E.S.P. charge no longer applies. All benefits and features of the continued Contract will be based on the beneficiary's age on the Death Report Date as if the beneficiary had purchased the Contract with the adjusted Contract Value on the Death Report Date. PLANNED DEATH BENEFIT You may request that rather than receive a lump-sum death benefit, the beneficiary(ies) receive all or a portion of the death benefit proceeds either: - as a variable or fixed annuity for life or a period that does not exceed the beneficiary's life expectancy, or - under the terms of the Beneficiary Continuance provision described above. If the Beneficiary Continuance provision is selected as a planned death benefit, no surrenders will be allowed other than payments meant to satisfy minimum distribution amounts or systematic withdrawal amounts, if greater. You must make the planned death benefit request as well as any revocation of this request in writing. Upon your death, your beneficiary(ies) cannot revoke or modify this request. If the death benefit at the time we receive Due Proof of Death is less than $2,000, we will only pay a lump sum to the beneficiary. If periodic payments due under the planned death benefit election are less than $100, we reserve the right to make Annuity Payments at less frequent intervals, resulting in a payment of at least $100 per year. If no beneficiary is alive when death benefits become payable, we will pay the death benefit as provided in your Contract. 33 DEATH PROCEEDS AFTER THE MATURITY DATE If any Contract Owner or the Annuitant dies on or after the Maturity Date, the Company will pay the beneficiary a death benefit consisting of any benefit remaining under the annuity option then in effect. LIVING BENEFITS - -------------------------------------------------------------------------------- GUARANTEED MINIMUM WITHDRAWAL BENEFIT ("GMWB" OR "PRINCIPAL GUARANTEE") For an additional charge, you may elect an optional rider for your Contract that provides a Guaranteed Minimum Withdrawal Benefit, or "GMWB". A GMWB rider is designed to protect your investment from poor market performance, as long as you do not withdraw more than a certain amount from your Contract each year. AVAILABILITY AND ELIGIBILITY We offer several different GMWB riders so that you can choose the level of benefits and costs that makes the most sense for you. This prospectus offers four different GMWB riders, and the availability of each depends on when you purchase your Contract and your state of residence. The four GMWB riders described in this prospectus are called "GMWB I", "GMWB II", "GMWB III" , and "GMWB for Life" (described separately below); we may refer to any one of these as GMWB. The availability of each rider is shown below. AVAILABLE GMWB RIDERS
- -------------------------------------------------------------------------------------------------------------- NAME OF RIDER: GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- ALSO CALLED: Principal Guarantee Principal Guarantee 5/10 Principal Guarantee 5 - -------------------------------------------------------------------------------------------------------------- AVAILABILITY: Not available for Available on or after Available on or after purchase on or after March 21, 2005 if March 21, 2005 if March 21, 2005, unless approved in your state approved in your state GMWB II is not approved in your state - --------------------------------------------------------------------------------------------------------------
CURRENTLY, YOU MAY ELECT A GMWB RIDER ONLY AT THE TIME OF YOUR INITIAL PURCHASE OF THE CONTRACT. You may not elect a GMWB rider if you have also elected the GMAB rider offered under this Contract. REMAINING BENEFIT BASE ("RBB") For all GMWB riders, the amount of your investment that is guaranteed is called the "remaining benefit base" or "RBB." Your initial RBB is equal to your initial Purchase Payment. If you added the GMWB after the initial purchase of the Contract, the Initial RBB is the Contract Value on the date the GMWB was added. The RBB is not a lump sum guarantee, rather, it is the amount that we guarantee to return to you through a series of payments that annually do not exceed a percentage of your RBB. ANNUAL WITHDRAWAL BENEFIT ("AWB") The annual percentage of your RBB that is available for withdrawal is called the "annual withdrawal benefit" or "AWB". Each year you may take withdrawals that do not exceed your AWB until your RBB is depleted. Each year you may take your AWB monthly, annually, or on any payment schedule you request. You may take withdrawals in any dollar amount up to your AWB without affecting your guarantee. If you choose to receive only a part of, or none of, your AWB in any given year, your AWB in any subsequent year will not be increased. In that case you are choosing to deplete your RBB over a longer period of time. 34 The AWB is a percentage of your RBB and depends on which GMWB rider you select. Your initial AWB is calculated as a percentage of the RBB immediately before your first withdrawal:
- -------------------------------------------------------------------------------------------------------------- GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- If you make your first 5% of RBB 5% of RBB 5% of RBB withdrawal before the 3rd anniversary after you purchase GMWB: - -------------------------------------------------------------------------------------------------------------- If you make your first 10% of RBB 10% of RBB 5% of RBB withdrawal on or after the 3(rd) anniversary after you purchase GMWB: - --------------------------------------------------------------------------------------------------------------
ADDITIONAL PREMIUM Currently, additional Purchase Payments serve to increase your RBB and AWB. After each Purchase Payment your new RBB equals your RBB immediately prior to the Purchase Payment plus the dollar amount of the Purchase Payment. Your new AWB is equal to the AWB immediately prior to the Purchase Payment, plus a percentage of the Purchase Payment. We use the same percentage as that used to calculate your original AWB as shown above. We reserve the right not to include additional Purchase Payments into the calculation of the RBB or AWB. WITHDRAWALS When you make a withdrawal, your AWB remains the same as long as the sum of all of your withdrawals since the most recent anniversary of your purchase or reset of GMWB (or "GMWB Anniversary"), including the current withdrawal, does not exceed your AWB immediately prior to the current withdrawal. In such case your RBB is decreased to equal the RBB immediately prior to the withdrawal, less the dollar amount of the current withdrawal. However, if you make a withdrawal so that the total of all your withdrawals since your GMWB anniversary, including the current withdrawal, exceeds your AWB immediately prior to the current withdrawal, we will recalculate both your RBB and AWB. The recalculation depends on which GMWB rider you select: IF YOU SELECT GMWB II OR GMWB III: - To recalculate your RBB, we reduce your RBB by the greater of the dollar amount of your withdrawal, or a "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal. - To recalculate your AWB, we reduce your AWB by a partial withdrawal reduction, which is equal to 1) the AWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. IF YOU PURCHASED GMWB I: - To recalculate your RBB, we reduce your RBB by a "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal. - To recalculate your AWB, we reduce your AWB by a partial withdrawal reduction, which is equal to 1) the AWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. We will waive any surrender charge on amounts that you withdraw up to your AWB on amounts up to the amount withdrawn under our Managed Distribution Program, even if such annual amount withdrawn is greater than your free withdrawal allowance. WITHDRAWAL EXAMPLES. The following examples are intended to illustrate the effect of withdrawals on your RBB and AWB, depending on which GMWB rider you select. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including the Variable Funding Options selected by you. The example does 35 not reflect the deduction of fees and charges, withdrawal charges and applicable income taxes and penalties. Assume your initial RBB is $100,000, your age is less than 70, and you take a withdrawal of $10,000 after your first GMWB Anniversary: WITHDRAWAL EXAMPLE FOR GMWB II AND GMWB III
- ------------------------------------------------------------------------------------------------------------------------- ASSUMES 10% GAIN ON INVESTMENT ASSUMES 10% LOSS ON INVESTMENT - ------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT VALUE RBB AWB (5%) VALUE RBB AWB (5%) - ------------------------------------------------------------------------------------------------------------------------- VALUES AS OF - ------------------------------------------------------------------------------------------------------------------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY PRIOR TO WITHDRAWAL $110,000 $100,000 $5,000 $90,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- PARTIAL WITHDRAWAL N/A (100,000 x [5,000 x (1- N/A (100,000 x [5,000 x (1- REDUCTION 10,000/110,000) = 90,000/100,000)] = 10,000/90,000) = 88,889/100,000)] = (PWR) 9,091 500 $11,111 $556 - ------------------------------------------------------------------------------------------------------------------------- GREATER OF PWR OR THE DOLLAR AMOUNT $10,000 $11,111 OF THE WITHDRAWAL (10,000>9,091) (11,111>10,000) - ------------------------------------------------------------------------------------------------------------------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $10,000 $500 $10,000 $11,111 $556 - ------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY AFTER WITHDRAWAL $100,000 $90,000 $4,500 $80,000 $88,889 $4,444 - -------------------------------------------------------------------------------------------------------------------------
WITHDRAWAL EXAMPLE FOR GMWB I
- ------------------------------------------------------------------------------------------------------------------------- ASSUMES 10% GAIN ON INVESTMENT ASSUMES 10% LOSS ON INVESTMENT - ------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT VALUE RBB AWB (5%) VALUE RBB AWB (5%) - ------------------------------------------------------------------------------------------------------------------------- VALUES AS OF - ------------------------------------------------------------------------------------------------------------------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY PRIOR TO WITHDRAWAL $110,000 $100,000 $5,000 $90,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY $90,909 $4,545 $88,889 $4,444 AFTER WITHDRAWAL [100,000 -- (100,000 [(5,000 [100,000 -- (100,000 [5,000 x $100,000 x10,000/110,000)] x90,909/100,000)] $80,000 x10,000/90,000)] (88,889/100,000)] - ------------------------------------------------------------------------------------------------------------------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $9,091 $455 $10,000 $11,111 $556 - -------------------------------------------------------------------------------------------------------------------------
TAX-QUALIFIED DISTRIBUTION PROGRAMS (GMWB II AND GMWB III ONLY). If you select GMWB II or GMWB III, subject to certain limitations and restrictions, your AWB will not incur a recalculation as a result of distributions taken under certain eligible Tax-Qualified Distribution Programs ("Tax-Qualified Distribution Programs"). Instead, such distributions will reduce the RBB by the amount of the withdrawal, and will not affect the AWB. For purposes of GMWB II and GMWB III, the following Tax-Qualified Distribution Programs are eligible. Only certain types of distribution methods are eligible as described below. Please consult with your tax adviser to make sure you are eligible: - Distributions intended to satisfy the required minimum distribution rules under Internal Revenue Code ("Code") Section 401(a)(9) and the Treasury Regulations promulgated thereunder, as applicable, to: - a qualified retirement plan (Code Section 401), - a tax-sheltered annuity (Code Section 403(b)), 36 - an individual retirement account (Code Sections 408(a)), - an individual retirement annuity (Code Section 408(b)), or - a qualified deferred compensation plan (Code Section 457). Required minimum distribution must be calculated using the Uniform Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-2) and/or the Joint and Last Survivor Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-3), and for distributions where the employee (owner) dies before the entire interest is distributed as described in Code Section 401(a)(9)(B)(iii) calculated using the Single Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-1), as appropriate (each table as in effect as of January 1, 2004). - Distributions intended to satisfy the exception under Code Section 72(s)(2) to the required minimum distribution rules which apply after the death of the holder of a nonqualified annuity contract provided under Code Section 72(s)(1) for certain amounts payable over the life of a designated beneficiary; - Distributions intended to satisfy the exception under Code Section 72(t)(2)(A)(iv) from the 10% additional tax on early distributions from qualified retirement plans imposed by Code Section 72(t)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and his designated beneficiary, provided, however, the amount of the substantially equal periodic payments must be calculated under the required minimum distribution method set forth in the Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Revenue Ruling 2002-62, 2002-42 I.R.B. 710 (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program); or - Distributions intended to satisfy the exception under Code Section 72(q)(2)(D) from the 10% additional tax on early distributions from nonqualified annuity contracts imposed by Code Section 72(q)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the Beneficiary or the joint lives (or joint life expectancies) of such Beneficiary and his designated beneficiary, provided, however, the amount of the substantially equal periodic payment must be calculated under the required minimum distribution method set forth in Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Internal Revenue Bulletin 2004-9, Notice 2004-15, page 526. (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program). You are subject to the following limitations if you are taking distributions under a Tax-Qualified Distribution Program: - YOU MUST ENROLL IN OUR MANAGED DISTRIBUTION PROGRAM. If you do not enroll or if you cancel your enrollment, you can continue to make withdrawals under your GMWB rider, however your RBB and AWB may be subject to a recalculation. Under our Managed Distribution Program, you select the frequency of payments. You may change the frequency of your payments only once every two years after your GMWB Anniversary, and you may only make the change during the 30-day period after your GMWB Anniversary. At the time you purchase GMWB, your initial frequency of payment must be annual if you did not take distributions pursuant to your Tax-Qualified Distribution Program at your previous financial institution, unless you turn age 70 1/2 before the first GMWB anniversary. You are advised to take your required distributions prior to purchasing GMWB in order to have the choice of taking your distributions on a monthly, quarterly, semi-annual or annual basis. If you do not take your distribution before purchasing GMWB, you will be limited to taking annual distributions for the first two Contract Years after which time you can choose an alternate mode of distribution. - ANY WITHDRAWALS OUTSIDE OF THE PROGRAM MAY DECREASE YOUR BENEFIT. All withdrawals under your Contract must be made pursuant to the Tax- Qualified Distribution Program during any 12-month period after an anniversary of your purchase of GMWB (a "GMWB Year"). If during any GMWB Year you take any additional withdrawals that are not made pursuant to the Program, you can continue to make withdrawals 37 under your GMWB rider, however for the remainder of the GMWB Year your RBB and AWB may be subject to a partial withdrawal reduction. To avoid any partial withdrawal reduction, all withdrawals under your Contract must be made pursuant to your Tax-Qualified Distribution Program. RESET (GMWB I AND GMWB II ONLY). If you select GMWB I or GMWB II, you may choose to reset your RBB starting with the 5th year anniversary date of your GMWB purchase. In accordance with the terms of the rider we have established the following procedures for resets. If you elect to reset within 30 days prior to the end of the 5th contract year, your new RBB will be reset to equal your current Contract Value. If you do not reset on the 5th year anniversary, you will have the opportunity to elect to reset during the 30-day period prior to each anniversary following the date of your 5th year anniversary of your GMWB purchase. In the event that you elect a reset you will be eligible to reset your RBB again provided that 5 contract years have elapsed since the most recent reset, so long as your election is made during the 30-day period prior to the anniversary date of your GMWB purchase. Each time you reset your RBB, your new AWB will equal a percentage of your new RBB. The percentage used is the same percentage used to calculate your AWB before the reset. If you are age 95 and are taking withdrawals under a Tax-Qualified Distribution Program, you may not reset if you purchased GMWB II. Depending on your Contract Value and the current fee for GMWB, it may not be beneficial to reset your RBB. Generally, it may be beneficial to reset your RBB if your Contract Value exceeds your RBB. However, the charge may increase if you elect to reset the RBB. (In such cases, the charge will never exceed the guaranteed maximum charge.) Further, if you reset your RBB, your new AWB may be higher or lower than your current AWB. In addition, the length of time over which you can expect to receive your RBB will be reset. INVESTMENT RESTRICTIONS (GMWB II AND GMWB III ONLY) We reserve the right to restrict allocations to a Variable Funding Option or limit the percentage of Contract value that may be allocated to a Variable Funding Option at any time. If we do so we would provide you with asset allocation requirements, and we reserve the right to require periodic rebalancing of Contract value allocated to Variable Funding Options according to specified percentages. We will provide no less than 30 days advanced written notice if we exercise our right to restrict or limit allocations to a Variable Funding Option and/or require periodic rebalancing between Variable Funding Options. Our ability to restrict allocations to a Variable Funding Option may be different depending on your state. If we restrict allocations to a Variable Funding Option, as of the effective date of the restriction, we will no longer allow additional Purchase Payments to be applied, or transfers of Contract value to be allocated into the restricted Variable Funding Option. Any Contract value previously allocated to a restricted Variable Funding Option will not be subject to the restriction. If we impose a limit on the percentage of Contract value allocated to a Variable Funding Option, as of the effective date of the restriction, we will impose the limit on all subsequent allocations. GMWB CHARGE. The charge for your GMWB rider is different depending on which version of GMWB you choose. For all GMWB riders, the charge is deducted each business day from amounts held in each Variable Funding Option. The current charge for each rider, on an annual basis, is shown below. Your current charge will not change unless you reset your benefits, at which time we may modify the charge. In such case the charge will never exceed 1.00%.
- -------------------------------------------------------------------------------------------------------------- GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- Current Annual Charge 0.40% 0.50% 0.25% - -------------------------------------------------------------------------------------------------------------- Maximum Annual Charge After a 1.00% 1.00% N/A Reset - --------------------------------------------------------------------------------------------------------------
MAXIMUM RBB. Although we have no current plans to do so, in the future we may impose a maximum RBB. If we do, we would stop including additional Purchase Payments into the calculation of your RBB. If we impose a maximum RBB for Purchase Payments or reset, the maximum RBB will never be less than the cumulative Purchase Payments to which we have previously consented. Currently you must obtain our consent to purchase any RBB over $1 million. Purchase Payments under $1 million are not subject to a maximum RBB. 38 TERMINATION. Once you purchase GMWB I, you cannot cancel it. If you select GMWB II or GMWB III, you may terminate your rider at any time after the 5(th) anniversary of your purchase of GMWB. Once you terminate a GMWB III rider, you cannot re-elect it. You must request your termination in writing. All GMWB riders terminate automatically when you reach the maturity date of your Contract, if your Contract is assigned, or if the rider is exchanged for a similar rider offered by us. OTHER INFORMATION ABOUT GMWB. If your Contract Value reaches zero, and you have purchased this benefit, the following will occur: - The AWB will continue to be paid to you until the RBB is depleted, not more frequently than monthly. Upon your death, your beneficiary will receive these payments. No other death benefit or optional benefit, if any, will be paid. - The total annual payment amount will equal the AWB and will never exceed your RBB, and - We will no longer accept subsequent Purchase Payments into the Contract. If a spouse or beneficiary continues this Contract upon your death, and you had elected GMWB, all terms and conditions of this benefit would apply to the new owner. Please refer to the Death Benefit section for information on how GMWB may impact your death benefit. COMPARISON OF IMPORTANT DIFFERENCES AMONG THE GMWB RIDERS The following chart may help you decide which version of GMWB is best for you.
- -------------------------------------------------------------------------------------------------------------- GMWB I GMWB II GMWB III - -------------------------------------------------------------------------------------------------------------- AWB 5% of RBB if first 5% of RBB if first 5% of RBB withdrawal before 3(rd) withdrawal before 3(rd) anniversary 10% of RBB anniversary 10% of RBB if first withdrawal on if first withdrawal on or after 3(rd) or after 3(rd) anniversary anniversary - -------------------------------------------------------------------------------------------------------------- ANNUAL CHARGE 0.40% 0.50% 0.25% - -------------------------------------------------------------------------------------------------------------- RESET Yes Yes No - -------------------------------------------------------------------------------------------------------------- CAN I CANCEL MY GMWB? No Yes, after the 5(th) Yes, after the 5(th) anniversary of GMWB anniversary of GMWB purchase purchase - -------------------------------------------------------------------------------------------------------------- INVESTMENT RESTRICTIONS No Yes Yes - -------------------------------------------------------------------------------------------------------------- WAIVER OF RECALCULATION OF AWB No Yes Yes FOR DISTRIBUTIONS FROM TAX- QUALIFIED PLANS - --------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM WITHDRAWAL BENEFIT FOR LIFE ("GMWB FOR LIFE" OR "LIVING INCOME GUARANTEE") SUMMARY OF BENEFITS. For an additional charge, you may elect an optional rider for your Contract that provides a Guaranteed Minimum Withdrawal Benefit for Life, or "GMWB for Life". The GMWB for Life rider is designed to protect your investment from poor market performance. CURRENTLY, YOU MAY ELECT THE GMWB FOR LIFE RIDER ONLY AT THE TIME OF YOUR INITIAL PURCHASE OF THE CONTRACT. The GMWB for Life rider: - Guarantees a fixed level of income for life after you attain a certain age as long as you do not withdraw more than a certain amount from your Contract each year; - Can be purchased for you alone or with your spouse; - Can accommodate tax-qualified distributions from your Contract; 39 - Increases in value on each anniversary if your Contract Value increases through an automatic reset feature; - Can provide an income until your guaranteed amount is recovered if your circumstances change before you reach the minimum age to begin lifetime income, as long as you do not withdraw more than a certain amount from your Contract each year; - Offers the option to receive a lump sum after a period of years in lieu of the guarantee to take periodic payments if your circumstances change. You must continue to meet several restrictions and conditions in order to receive the benefits of the GMWB for Life rider. Withdrawals that exceed the allowable annual maximum will more rapidly decrease the guarantees under the rider. Also, to be eligible for the guarantees you are permitted to invest only in a limited number of specified Variable Funding Options. Only Purchase Payments that you make within two years of purchase are eligible for the guarantees. See below for details. Currently, you may elect the GMWB for Life rider only at the time of your initial purchase of the Contract. In the future we may allow Contract Owners to add the rider after purchase. You may not elect the GMWB for Life rider if you have also elected the GMWB or GMAB rider offered under this Contract. The GMWB for Life rider may not be available in all states. Once you purchase the GMWB for Life rider, you cannot cancel it. In written materials other than this prospectus, we may refer to the GMWB for Life rider using different names. These names are "Living Income Guarantee" and "Living Income Guarantee for 2". These names refer to the same GMWB for Life rider described in this prospectus. SINGLE LIFE OPTION OR JOINT LIFE OPTION. The GMWB for Life rider is designed for use by you alone (the "Single Life Option"), or you and your spouse (the "Joint Life Option"). You must select either the Single Life Option or the Joint Life Option at the time you elect the GMWB for Life rider. The Single Life Option is available to all Contract Owners. However, if you select the Single Life Option and your Contract is jointly owned, the age of the older joint owner will determine when you are eligible for lifetime benefits under the rider, and income is guaranteed only over the lifetime of the older joint owner. The Joint Life Option is only available if you name your spouse as the joint owner or sole beneficiary of your Contract. Under the Joint Life Option, income is guaranteed over the joint lifetime of both you and your spouse. Under the Joint Life Option, the age of the younger spouse determines when you are eligible for lifetime benefits under the rider. This means you and your spouse will have to wait until the younger of you reaches the minimum age to qualify for the lifetime benefit. REMAINING BENEFIT BASE ("RBB"). The guarantees under the GMWB for Life rider are determined by applying an annual percentage to a base amount that we calculate called the "remaining benefit base" or "RBB." Your initial RBB is equal to your initial Purchase Payment if you elect GMWB for Life when you purchase your Contract. If in the future we permit the rider to be added after the Contract is issued, then your initial RBB is equal to your Contract Value when you elect the rider. The RBB is not a lump sum guarantee, rather, it is used to determine the amount that we return to you through a series of payments that annually do not exceed a percentage of your RBB. Your RBB is subject to a maximum of $5,000,000 for all deferred variable annuities issued by us in the same calendar year to you. LIFETIME WITHDRAWAL BENEFIT ("LWB"). The annual percentage of your RBB that is available for withdrawal is called the "Lifetime Withdrawal Benefit" or "LWB. " Each year you may take withdrawals that do not exceed your LWB. The level of your initial LWB payment depends on whether your GMWB for Life rider was issued under the Single Life Option or the Joint Life Option, and the timing of your first withdrawal from your Contract. You are eligible to receive payments under the LWB after you attain a certain age as shown below. Under the Joint Life Option, the age of the younger spouse determines eligibility. Under the Single Life Option, if your Contract is jointly owned, the age of the older joint owner determines eligibility. 40
- -------------------------------------------------------------------------------------------- MINIMUM AGE TO BE ELIGIBLE TO RECEIVE LWB - -------------------------------------------------------------------------------------------- Single Life Option 59 1/2 years - -------------------------------------------------------------------------------------------- Joint Life Option 65 years - --------------------------------------------------------------------------------------------
Your initial LWB is calculated as a percentage of the RBB immediately before your first withdrawal:
- ------------------------------------------------------------------------------------- SINGLE LIFE OPTION LWB - ------------------------------------------------------------------------------------- If you make your first withdrawal BEFORE the 5(th) anniversary after you purchase GMWB for Life: 5% of RBB - ------------------------------------------------------------------------------------- If you make your first withdrawal ON OR AFTER the 5(th) anniversary, but before the 10(th) anniversary: 6% of RBB - ------------------------------------------------------------------------------------- If you make your first withdrawal ON OR AFTER the 10(th) anniversary: 7% of RBB - -------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------- JOINT LIFE OPTION LWB - ------------------------------------------------------------------------------------- If you make your first withdrawal BEFORE the 8(th) anniversary after you purchase GMWB for Life: 5% of RBB - ------------------------------------------------------------------------------------- If you make your first withdrawal ON OR AFTER the 8(th) anniversary, but before the 15th anniversary: 6% of RBB - ------------------------------------------------------------------------------------- If you make your first withdrawal ON OR AFTER the 15(th) anniversary: 7% of RBB - -------------------------------------------------------------------------------------
You should carefully choose when you take your first withdrawal from your Contract, because it will determine your LWB annual percentage which will not change for the life of your Contract. For example, if you take your first withdrawal before the 5th anniversary, your LWB will be 5% of RBB for the life of your Contract, and you will never qualify for a 6% or 7% of RBB. As long as your total annual withdrawals do not exceed your LWB amount, you may continue to take your LWB payments until death, even if the aggregate payments exceed your RBB. Under the Joint Life Option, payments cease upon the death of the last surviving spouse. Under the Single Life Option, payments cease upon your death, or the death of the older joint owner. You may adjust the amount and frequency of payments during the year. Each year you may take your LWB monthly, annually, or on any payment schedule you request. You may take withdrawals in any dollar amount up to your LWB without affecting your guarantee. If you choose to receive only a part of, or none of, your LWB in any given year, your LWB in any subsequent year will not be increased. In certain circumstances we may limit the frequency of LWB payments to annual, such as payments under our Managed Distribution Program, payments to a beneficiary after your death, or if your Contract Value reduces to zero (see below). ADDITIONAL PREMIUM. Additional Purchase Payments made within two years after you purchase the GMWB for Life rider will increase your RBB, which will serve to increase your LWB. After each Purchase Payment your new RBB equals your RBB immediately prior to the Purchase Payment plus the dollar amount of the Purchase Payment. Your new LWB is equal to the LWB immediately prior to the Purchase Payment, plus a percentage of the Purchase Payment. We use the same percentage as that used to calculate your original LWB as shown above. Additional Purchase Payments made more than two years after you purchase the GMWB for Life rider will not be included in your RBB, and will be excluded from the guarantees under your rider. However, additional Purchase Payments will be added to your Contract Value and would be reflected in any reset of the RBB. (See the "Reset" section below.) WITHDRAWALS. When you make a withdrawal, your LWB remains the same as long as the sum of all of your withdrawals since the most recent anniversary of your purchase of GMWB for Life (or "GMWB for Life Anniversary"), including the current withdrawal, does not exceed your LWB immediately prior to the current withdrawal. In such case your RBB is decreased to equal the RBB immediately prior to the withdrawal, less the dollar amount of the current withdrawal. 41 However, if you make a withdrawal so that the total of all your withdrawals since your GMWB for Life Anniversary, including the current withdrawal, exceeds your LWB immediately prior to the current withdrawal, we will recalculate your RBB and LWB. To recalculate your RBB, we reduce your RBB by the greater of the dollar amount of your withdrawal, or a proportional "partial withdrawal reduction". The partial withdrawal reduction is equal to 1) the RBB in effect immediately prior to the current withdrawal, multiplied by 2) the amount of the current withdrawal divided by 3) the Contract Value immediately prior to the current withdrawal. To recalculate your LWB, we reduce your LWB by a partial withdrawal reduction, which is equal to 1) the LWB in effect immediately prior to the current withdrawal, multiplied by 2) the RBB immediately after the withdrawal divided by 3) the RBB immediately prior to the current withdrawal. These recalculations magnify the effect of a withdrawal when your Contract Value is less than your RBB, as shown in the example below. WITHDRAWAL EXAMPLES The following example is intended to illustrate the effect of withdrawals on your RBB and LWB. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including the Variable Funding Options selected by you. The example does not reflect the deduction of fees and charges, withdrawal charges and applicable income taxes and penalties. Assume your initial RBB is $100,000, your age is greater than 65, and you take a withdrawal of $10,000 after your first GMWB Anniversary: WITHDRAWAL EXAMPLE
- ------------------------------------------------------------------------------------------------------------------------- ASSUMES 10% GAIN ON INVESTMENT ASSUMES 10% LOSS ON INVESTMENT - ------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT VALUE RBB LWB (5%) VALUE RBB LWB (5%) - ------------------------------------------------------------------------------------------------------------------------- VALUES AS OF - ------------------------------------------------------------------------------------------------------------------------- INITIAL GMWB PURCHASE $100,000 $100,000 $5,000 $100,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- IMMEDIATELY PRIOR TO WITHDRAWAL AND AFTER THE FIRST GMWB ANNIVERSARY $110,000 $110,000 $5,500 $90,000 $100,000 $5,000 - ------------------------------------------------------------------------------------------------------------------------- PARTIAL N/A [$110,000 x [$5,500 x (1- N/A [$100,000 x [$5,000 x WITHDRAWAL ($10,000/ $110,000)] $100,000/$110,000)] ($10,000/$90,000)] = (1 -- 88,889/$100,0- REDUCTION = $10,000 = 500 $11,111 00)] = $556 - ------------------------------------------------------------------------------------------------------------------------- GREATER OF PWR OR THE DOLLAR AMOUNT $10,000 $11,111 OF THE WITHDRAWAL ($10,000 = $10,000) ($11,111 > 10,000) - ------------------------------------------------------------------------------------------------------------------------- CHANGE IN VALUE DUE TO WITHDRAWAL (PARTIAL SURRENDER REDUCTION) $10,000 $10,000 $500 $10,000 $11,111 $556 - ------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY AFTER WITHDRAWAL $100,000 $100,000 $5,000 $80,000 $88,889 $4,444 - -------------------------------------------------------------------------------------------------------------------------
RESET. On each anniversary after you purchase the GMWB for Life rider, we will automatically reset your RBB, under our Automatic RBB Reset Program, to an amount equal to 100% of the then Contract Value. We will not automatically reset your RBB if the Contract Value on your anniversary is less than your current RBB, or, if you (or you and your spouse) are over age 85. You may choose to opt out of the Automatic RBB Reset Program, if a reset of your RBB would cause the charge for your rider to increase. This can happen since the rate you pay for the rider will be changed to the rate in effect at the time of reset and that may be higher than the rate before the reset. We will send you advance notice if the charge for your rider would increase upon reset in order to give you the opportunity to opt out of the Automatic RBB Reset Program. In order to opt out of the Automatic RBB Reset Program, you must notify us in writing which we must receive by the 7th calendar day prior to the scheduled reset. Your rider will no longer be reset for the life of the rider unless you subsequently elect in writing to opt back into the Automatic RBB Reset Program. Your opt back in election will go into effect upon the next GMWB for Life Anniversary following the receipt of your request. 42 Upon reset, the LWB will be recalculated as the greater of the a) LWB prior to the reset, or b) a percentage of the Reset RBB value. The percentage will equal the percentage of the RBB (e.g. 5%) used in determining the initial LWB. GUARANTEED PRINCIPAL OPTION. If your circumstances change and you no longer want the lifetime features of the GMWB for Life rider, you may wish to opt out and receive an adjustment to your Contract Value. In this case, once you have held the rider for ten (10) years or more you will have the option each year to elect the Guaranteed Principal Option. Each year you will have a 30-day window period during which you may elect the option. You may only elect the option once, as your GMWB for Life rider will terminate when you exercise the option. The Guaranteed Principal Option will be paid to you as a positive adjustment to your Contract Value. The adjustment is equal to (a) minus (b): a) Purchase Payments credited within 120 days after you purchase the GMWB for Life rider, reduced by a "Percentage Reduction in the Contract Value" attributable to any partial withdrawals taken. We compute the "Percentage Reduction in Contract Value" attributable to a partial withdrawal by dividing the dollar amount of the withdrawal, plus any applicable withdrawal charges, by the Contract Value immediately preceding such withdrawal. We apply the Percentage Reduction in the Contract Value as a factor equal to 1 minus the percentage reduction. b) Your Contract Value on the GMWB Anniversary immediately preceding exercise of the Guaranteed Principal Option. For example, assume you make a single Purchase Payment of $100,000 and elect the GMWB for Life rider. Also assume that you make no withdrawals, and that ten years later your Contract Value has declined to $80,000. If you elect to receive the Guaranteed Principal Option, we will apply $20,000 to your Contract Value to restore it to $100,000. To exercise the Guaranteed Principal Option you must notify us in writing within 30 days following any anniversary of your purchase of the GMWB for Life rider, on or after the tenth (10th) anniversary of your purchase of the rider. We will adjust your Contract Value at the end of the 30-day window period. The adjustment will be added to each Variable Funding Option in the ratio that the Contract Value in such Variable Funding Option bears to the total Contract Value in all Variable Funding Options. The adjustment will never be less than zero. If you exercise the Guaranteed Principal Option, the GMWB for Life rider will terminate on the date the adjustment is added to your Contract Value. Only Purchase Payments credited within 120 days after you purchase the GMWB for Life rider are taken into consideration in determining the amount paid under the Guaranteed Principal Option. If you anticipate making Purchase Payments after the 120-day period, you should understand that such payments will not increase the amount paid under the Guaranteed Principal Option. However, Purchase Payments credited after 120 days are added to your Contract Value and will impact whether or not any benefit is due. Therefore, GMWB for Life may not be appropriate for you if you intend to make additional Purchase Payments after the 120-day period and are purchasing the GMWB for Life rider for this feature. REQUIRED ALLOCATION OF YOUR CONTRACT VALUE AND PREMIUM PAYMENTS. If you elect the GMWB for Life rider, you will be required to invest in a limited number of specific Variable Funding Options, and you will be foreclosed from investing in all the other Variable Funding Options that would otherwise be available to you while the rider is in effect. In addition, you may not allocate any portion of your Contract Value or Premium Payments to the Fixed Account. You will be required to allocate 100% of your Contract Value or Purchase Payments to one or more of the following Variable Funding Options. Some of these Variable Funding Options invest in mutual funds that invest in other mutual funds, also known as "funds of funds." Please see the section in this prospectus entitled "Variable Funding Options" for a description of the investment objectives of these Variable Funding Options, as well as the section entitled "Fee Table" for the charges associated with these Variable Funding Options. 43
PERMITTED VARIABLE FUNDING OPTIONS -------------------------------------------------------- LEGG MASON PARTNERS VARIABLE EQUITY TRUST -- CLASS II Legg Mason Partners Variable Capital and Income Portfolio METROPOLITAN SERIES FUND, INC. BlackRock Money Market Portfolio -- Class A MFS(R) Total Return Portfolio -- Class B PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio Pioneer Global High Yield VCT Portfolio Pioneer High Yield VCT Portfolio Pioneer Ibbotson Growth Allocation VCT Portfolio Pioneer Ibbotson Moderate Allocation VCT Portfolio Pioneer Strategic Income VCT Portfolio
We will reject any request by you to transfer Contract Value or allocate Purchase Payments to a Variable Funding Option other than the permitted Variable Funding Options listed above. You will be required to re-submit your request to comply with the above restrictions. We will not be responsible for any financial impact caused by delays in processing your transaction if your request is rejected because it violated the above restrictions. We may make additions to or deletions from the list of permitted Variable Funding Options. GMWB FOR LIFE CHARGE. The charge for your GMWB for Life rider depends on whether you purchase the Single Life Option or the Joint Life Option. The charge is deducted each business day from amounts held in each Variable Funding Option. The current charge, on an annual basis, is shown below. Your current charge may increase when your RBB automatically resets, unless you notify us not to reset your RBB (see "Reset" above). The charge may increase provided that this rate will not exceed the rate currently applicable to the same rider available for new contract purchases at the time of the Step-Up; but it will never exceed 1.50%.
- ----------------------------------------------------------------------------------------- CURRENT CHARGE - ----------------------------------------------------------------------------------------- GMWB for Life (Single Life Option) 0.65% - ----------------------------------------------------------------------------------------- GMWB for Life (Joint Life Option) 0.80% - -----------------------------------------------------------------------------------------
ANNUAL WITHDRAWAL BENEFIT ("AWB"). If your circumstances change, you may wish to take guaranteed withdrawals even though you have not yet reached the minimum age to be eligible for lifetime payments under LWB. In this case, you can take an "Annual Withdrawal Benefit" or "AWB" which allows you to withdraw an amount each year until your RBB is depleted. AWB payments are not guaranteed for life. The level of your AWB is determined in the same manner as the level of your LWB as described in the above section entitled "Lifetime Withdrawal Benefit ("LWB")", except that there is no minimum age to be eligible to receive AWB payments. Additional Premium Payments affect your AWB in the same manner as they do the LWB as described in the "Additional Premium Payments" section above. The reset of your RBB will affect your AWB in the same manner as it affects the LWB as described in the "Reset" section above. Withdrawals affect your AWB in the same manner as your LWB as described in the "Withdrawals" section above, with the following exception. If you begin taking AWB withdrawals before you reach the minimum age to qualify for payments under LWB, when you reach the minimum age any withdrawals in excess of your LWB amount will subject your LWB and RBB to a partial withdrawal reduction, even if your withdrawal does not exceed your AWB. This could serve to decrease the amount of your future monthly payments under LWB, and the length of the time period during which you may continue to take payments under AWB. SHOULD I TAKE WITHDRAWALS UNDER LWB OR AWB? The GMWB for Life rider works best, and is designed, for the Contract Owner who can wait until the minimum age is attained to qualify for LWB payments. If you take your first withdrawal after you have reached the minimum age to qualify for LWB payments, payments under AWB or LWB are equal and the same. However, if you take your first withdrawal before you have reached the minimum age to qualify 44 for LWB payments, the AWB or LWB payments available to you when you reach the minimum age may not be equal. AWB is designed for the Contract Owner who has undergone a change in circumstances and wants to take withdrawals before reaching the minimum age to qualify for LWB payments. If you choose to take AWB payments before you qualify for LWB payments, you should consider that the charges for the GMWB for Life rider are designed to support LWB payments for life, and that you may be paying a higher charge without receiving the full benefit. IF YOU CONTINUE TO MAKE WITHDRAWALS IN EXCESS OF THE LWB ONCE THE MINIMUM AGE TO QUALIFY FOR LWB HAS BEEN REACHED, YOU MAY EVENTUALLY LOSE ANY BENEFIT UNDER LWB. Whether you choose to access your money using the LWB, AWB, or Guaranteed Principal Option depends on your individual financial circumstances and the performance of your Contract. You should consult with your financial adviser to determine which method is best for you. TAX-QUALIFIED DISTRIBUTION PROGRAMS. Subject to certain limitations and restrictions, your LWB and AWB will not incur a recalculation as a result of distributions taken under certain eligible Tax-Qualified Distribution Programs ("Tax-Qualified Distribution Programs"). Instead, such distributions will reduce the RBB by the amount of the withdrawal, but will not affect the LWB or AWB. The following Tax-Qualified Distribution Programs are eligible. Only certain types of distribution methods are eligible as described below. Please consult with your tax adviser to make sure you are eligible: 1) distributions relating to this Contract intended to satisfy the required minimum distribution rules under Internal Revenue Code of 1986, as amended, ("Code"), Code Section 401(a)(9) and the Treasury Regulations promulgated thereunder, as applicable, to a qualified retirement plan (Code Section 401), a tax-sheltered annuity (Code Section 403(b)), an individual retirement annuity (Code Section 408(b)), or an eligible deferred compensation plan (Code Section 457(b)), which required minimum distribution is calculated using the Uniform Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-2) and/or the Joint and Last Survivor Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-3), and for distributions where the employee (owner) dies before entire interest is distributed as described in Code Section 401(a)(9)(B)(iii) calculated using the Single Life Table (described in Treasury Regulation Section 1.401(a)(9)-9, Q&A-1), as appropriate, or as otherwise required to be calculated under the Code and the regulations thereunder; 2) distributions intended to satisfy the exception under Code Section 72(s)(2) to the required minimum distribution rules which apply after the death of the holder of a nonqualified annuity contract provided under Code Section 72(s)(1) for certain amounts payable over the life, or over a period no longer than the remaining life expectancy, of a designated beneficiary relating to this Contract; 3) distributions intended to satisfy the exception under Code Section 72(t)(2)(A)(iv) from the 10% additional tax on early distributions from qualified retirement plans imposed by Code Section 72(t)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the participant or the joint lives (or joint life expectancies) of such participant and his designated beneficiary, provided, however, the amount of the substantially equal periodic payments must be calculated under the required minimum distribution method set forth in the Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Revenue Ruling 2002-62, 2002-42 I.R.B. 710, or as subsequently determined under the tax law (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program) relating to this Contract; or 4) distributions intended to satisfy the exception under Code Section 72(q)(2)(D) from the 10% additional tax on early distributions from nonqualified annuity contracts imposed by Code Section 72(q)(1) for certain amounts payable as part of a series of substantially equal periodic payments made for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of such taxpayer and his designated beneficiary, provided, however, the amount of the substantially equal periodic payment must be calculated under the required minimum distribution method set forth in Internal Revenue Service Notice 89-25, 1989-1 C.B. 662 in Q&A-12 as amended by Internal Revenue Bulletin 2004-9, Notice 45 2004-15, page 526, or as subsequently determined under the tax law (substantially equal periodic payments calculated under the fixed annuitization method or the fixed amortization method described in Q&A-12 of Notice 89-25 will not be considered a Tax-Qualified Distribution Program) relating to this Contract. You are subject to the following limitations if you are taking distributions under a Tax-Qualified Distribution Program: YOU MUST ENROLL IN OUR MANAGED DISTRIBUTION PROGRAM. If you do not enroll or if you cancel your enrollment, you can continue to make withdrawals under your GMWB for Life rider, however your RBB, LWB and AWB may be subject to a recalculation. Under our Managed Distribution Program, you select the frequency of payments. You may change the frequency of your payments only once every two years after your GMWB for Life Anniversary, and you may only make the change during the 30- day period after your GMWB for Life Anniversary. At the time you purchase GMWB for Life, your initial frequency of payment must be annual if you did not take distributions pursuant to your Tax-Qualified Distribution Program at your previous financial institution, unless you turn age 70 1/2 before the first GMWB for Life Anniversary. You are advised to take your required distributions prior to purchasing GMWB for Life in order to have the choice of taking your distributions on a monthly, quarterly, semi-annual or annual basis. If you do not take your distribution before purchasing GMWB for Life, you will be limited to taking annual distributions for the first two Contract Years after which time you can choose an alternate mode of distribution. ANY WITHDRAWALS OUTSIDE THE PROGRAM MAY DECREASE YOUR BENEFIT. All withdrawals under your Contract must be made pursuant to the Tax-Qualified Distribution Program during any 12-month period after an anniversary of your purchase of GMWB for Life (a "GMWB for Life Year"). If during any GMWB for Life Year you take any additional withdrawals that are not made pursuant to the Program, you can continue to make withdrawals under your GMWB for Life rider, however for the remainder of the GMWB for Life Year your RBB, LWB and AWB may be subject to a partial withdrawal reduction. To avoid any partial withdrawal reduction, all withdrawals under your Contract must be made pursuant to your Tax-Qualified Distribution Program. DISTRIBUTIONS UNDER THE TAX-QUALIFIED DISTRIBUTION PROGRAM WILL BE DETERMINED AS IF YOUR CONTRACT UNDER WHICH YOUR GMWB FOR LIFE RIDER WAS ISSUED WERE THE ONLY CONTRACT SUBJECT TO THE ABOVE TAX RULES. TERMINATION. Once you purchase the GMWB for Life rider, you cannot cancel it. However, the rider will automatically terminate when: - you make a full withdrawal of your Contract Value; - you apply all of your Contract Value to an Annuity Option; - the Contract Owner dies and a death benefit under your Contract becomes payable, unless the Contract is continued by the beneficiary; - the Annuitant dies and the Annuitant is not the person whose life is used to determine guaranteed payments; - you transfer ownership of your Contract, or change the spousal beneficiary under the Joint Life Option; - you opt to take the Guaranteed Principal Option; or - you terminate your Contract. Charges for the rider cease upon termination. OTHER INFORMATION. You should also consider the following before you purchase the GMWB for Life rider: - The charge for the GMWB for Life rider continues for the life of the rider, even if you never need nor exercise the guarantees under the rider. - Withdrawals that are greater than your LWB or AWB will erode your guarantee by serving to more rapidly deplete your RBB. 46 - The GMWB for Life rider is not transferable; if you transfer ownership of your Contract, or change the spousal beneficiary under the Joint Life Option, the rider terminates automatically. - If you only plan to take AWB, or take the Guaranteed Principal Option, you should consider the higher cost of the GMWB for Life rider which is designed to support payments for life under LWB. - If you continue to take AWB once eligible for LWB, you may eventually lose any benefit under LWB. EFFECT ON THE DEATH BENEFIT. The GMWB for Life rider terminates when a death benefit under your Contract becomes payable, except in certain circumstances when the beneficiary may continue the Contract along with the GMWB for Life rider (see "Contract Continuation by Beneficiary" and "Contract Value Reduces to Zero" below). However, if your Contract provides for a death benefit amount that is the greatest of multiple benefits including the Adjusted Purchase Payment, your Adjusted Purchase Payment will not be calculated as described in the "Death Benefit" section, but instead will be equal to your aggregate Purchase Payments minus your aggregate withdrawals from the date the rider is added to your Contract. If the Annuitant dies before the Contract Owner(s), then the GMWB for Life rider will terminate and the beneficiary cannot continue the rider. Under the Joint Life Option, if the spousal beneficiary predeceases the Contract Owner, the rider continues and no death benefit is paid out; the Contract Owner may then name a new beneficiary for the purposes of the death benefit provisions under the Contract, but not for purposes of the GMWB for Life rider. Notwithstanding anything in the GMWB for Life rider to the contrary: a) In order to comply with section 72(s) of the Code, if the GMWB for Life rider is purchased with respect to a non-qualified annuity contract, any death benefit paid out under the terms of the GMWB for Life rider to a non-spousal Beneficiary upon the death of the owner (or to a payee other than the spouse of the Annuitant on the death of the Annuitant, where the Contract is owned by a non-natural person) (including payments made under the "Contract Continuation by the Beneficiary" provision, "Contract Value Reset to Zero" provision, and any other payments of the AWB and RBB otherwise made after a death) will be paid out in non-increasing annual installments over a period no longer than the remaining single life expectancy of the Beneficiary under the appropriate IRS life expectancy table under Code Section 72 and the regulation thereunder or as otherwise provided under the tax law for non-qualified annuities and under Code Section 72(s). Such payments must begin within 12 months of the date of death in all cases. b) Where the Beneficiary or other payee under paragraph (a) is not a natural person, such period may not extend beyond the fifth anniversary of the date of the death. c) If the GMWB for Life rider is issued under a Qualified Contract and the death occurs on or after the Required Beginning Date of distributions to the participant under Code Section 401(a)(9), the period for the payments described in paragraph (a) above may not exceed the longer of: (i) the Beneficiary's or other payee's remaining life expectancy or (ii) the deceased Annuitant's remaining life expectancy in the year of his or her death, reduced by one for each calendar year thereafter. d) Where under other sections of the GMWB for Life rider, any payment described in this section ("Effect on Death Benefits") is payable over a shorter period of time, required to begin at an earlier date, or would otherwise be paid more rapidly than under this section ("Effect on Death Benefit"), then such payment will be made under the terms of such other provision. If annual payments must exceed the AWB in order to comply with these requirements, then these payments will not result in a Partial Withdrawal Reduction to the RBB and AWB as described in the RBB and AWB sections of the GMWB for Life rider. Each withdrawal will reduce the RBB by the amount of the withdrawal, and will not affect the AWB. You should consult with your tax advisor prior to purchasing a variable annuity contract and optional rider, such as the GMWB for Life rider. CONTRACT CONTINUATION BY THE BENEFICIARY. Under the Joint Life Option, if the spousal beneficiary elects to continue the Contract instead of receiving the death benefit, the GMWB for Life rider will also continue for the benefit of the 47 spouse. Upon the death of the spouse, the LWB will terminate. However, if there are any remaining AWB payments, such payments may be continued by a surviving beneficiary instead of receiving a death benefit. In such case payments will be made annually on the next rider anniversary, no further resets will be made of the RBB, and the RBB will be reduced by the amount of each payment. Upon the death of such beneficiary, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. Under the Single Life Option, the LWB terminates when a death benefit becomes payable under the Contract, regardless of whether the Contract is continued by a beneficiary. If a non-spousal beneficiary continues the Contract, even under the Joint Life Option, the LWB terminates. However, if there are any remaining AWB payments, such payments may also be continued by a surviving beneficiary as described in the preceding paragraph. Payments made under the Continuation by the Beneficiary provision of the GMWB for Life rider will be adjusted to the extent required so that upon the death of the owner (or upon the death of the Annuitant where the owner is not a natural person), the RBB is paid out at regular intervals in non-increasing annual payments over a period no longer than permitted under Code Section 72(s) in the case of a rider made a part of a non-qualified Contract. For riders issued under a Qualified Contract, the payments under the Continuation by the Beneficiary provision of the GMWB for Life rider must be paid out at regular intervals in non-increasing annual payments made over a period no longer than that permitted under Code Section 401(a)(9) and the regulations thereunder. Payments to the Beneficiary or to the owner's estate on the death of the owner, or payments to the Beneficiary's estate (or to the successor beneficiary) in the case of the Beneficiary's death must be made beginning within twelve months of such death in each case and will be made at least as rapidly as under the payment method, if any, being used at the time of the death. CONTRACT VALUE REDUCES TO ZERO. If your Contract Value reduces to zero for reasons other than you making 1) a withdrawal that exceeds your AWB or LWB or 2) a full withdrawal of your Contract Value, and the minimum age has already been reached to be eligible to receive LWB payments, then we will automatically begin paying you annual payments equal to the LWB as long as you (or you or your spouse under the Joint Life Option) are alive unless you elect to receive annual payments equal to the AWB as set forth below. Payments will be made once a year on each rider effective date anniversary starting with the next anniversary. Each payment will reduce the RBB by the amount of the payment. Alternatively, you have the option to elect in writing to instead receive annual payments equal to the current AWB, as of the date your written election is received in good order at our Home Office, until the RBB is depleted. Upon such election, we will begin paying you the AWB starting on the next rider effective date anniversary following the date your written election is received in good order in our Home Office. If the minimum age to be eligible for LWB payments has not yet been reached, and the RBB is greater than zero, we will automatically begin paying you annual payments equal to the AWB until the RBB is depleted. All other rights under your Contract cease, we will no longer accept subsequent Purchase Payments and no future resets will be allowed. All other optional endorsements are terminated without value. Upon your death (or your or your spouse's death under the Joint Life Option), your Beneficiary(s) will receive the following: 1) Under the Single Life Option, the LWB will be set to $0.00 and the beneficiary(s) will receive annual payments equal to the current AWB until the RBB is depleted. No other death benefit or Enhanced Stepped- Up Provision (if any) will be paid if the RBB is already equal to zero upon the owner's death. The death benefit under the Contract is cancelled. Upon the beneficiary's death, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. 2) Under the Joint Life Option, the terms of the rider continue and we will continue to your spouse annual payments equal to either the LWB or AWB according to your election prior to your death and the terms described above. The death benefit under the Contract is cancelled. Upon the spouse's death, the LWB will be set to $0.00 and the spousal beneficiary's estate or Beneficiary, as applicable, will receive annual payments equal to the current AWB until the RBB is depleted. Upon that beneficiary's death, if AWB payments are still being made, the payments will continue to the beneficiary's estate unless such other 48 designee has been agreed to by us in writing until the RBB is exhausted at which time the GMWB for Life rider terminates. 3) Payments made under the "Contract value reduces to Zero" provision of the GMWB for Life rider will be adjusted to the extent required so that upon the death of the owner, the RBB is paid out at regular intervals in non-increasing annual payments over a period no longer than permitted under Code Section 72(s) in the case of a rider made a part of a non-qualified Contract. 4) For riders issued under a Contract that is issued to an Individual Retirement Account under Code Section 408(a), an Individual Retirement Annuity under Code Section 408(b), a Roth IRA annuity under Code Section 408A, a SIMPLE IRA annuity under Code Section 408(p) or any other annuity under an employer's retirement plan that is subject to the required minimum distribution rules under Code Section 401(a)(9), including the after-death distribution rules under Code Section 401(a)(9)(B) ("Qualified Contracts"), The payments under this provision of the GMWB for Life rider will be adjusted as required to be paid out in a non-increasing annual payments over a period no longer than permitted under Code Section 401(a)(9). Payments to the Beneficiary (or to the owner's estate on the death of the owner), or payments to the successor beneficiary (or to the Beneficiary's estate) in the case of the Beneficiary's death must be made beginning within twelve months of such death in each case and will be made at least as rapidly as under the payment method, if any, being used at the time of the death. GUARANTEED MINIMUM ACCUMULATION BENEFIT ("GMAB") We offer a Guaranteed Minimum Accumulation Benefit rider ("GMAB Rider") for an additional charge. The GMAB Rider guarantees that your Contract Value will not be less than a minimum amount at the end of a specified number of years. If your Contract Value is less than the minimum guaranteed amount on the Rider Maturity Date, we will apply additional amounts to increase your Contract Value so that it is equal to the guaranteed amount. If you elect the GMAB Rider, we require that you allocate your Contract Value according to certain limitations and restrictions, and agree to periodic rebalancing of your Contract Value. Currently, the GMAB Rider may only be elected at the time that you purchase your Contract. We may make the GMAB Rider available to Contracts after their effective date at a later date subject to certain additional terms and restrictions. You may not elect the GMAB Rider if you have also elected the GMWB Rider offered under the Contract. BENEFIT DESCRIPTION & KEY TERMS If you elect the GMAB Rider, we guarantee that if your Contract Value is less than your Benefit Base (defined below) on the Rider Maturity Date (defined below), we will apply additional amounts to your Contract to increase your Contract Value so that it is equal to the Benefit Base. Any additional amounts that we apply to your Contract to increase the Contract Value to equal the Benefit Base will be allocated to the money market Subaccount on the Rider Maturity Date. Any such additional amounts will be treated as earnings under your Contract, and will not be subject to a withdrawal charge once they are applied to your Contract. If your Contract Value is equal to or greater than the Benefit Base on the Rider Maturity Date, the GMAB Rider will terminate and no additional amounts will be applied to your Contract. Benefit Base: The Benefit Base is equal to the Base Calculation Amount on the Rider Maturity Date and represents the minimum Contract Value that we guarantee on such date. We do not guarantee the Benefit Base on any day other than the Rider Maturity Date. The Benefit Base will not be available for withdrawal nor will it be used to calculate any benefits under the Contract prior to the Rider Maturity Date. The Benefit Base can never be less than zero. Base Calculation Amount: We calculate the Base Calculation Amount to determine the Benefit Base. On the Rider Effective Date, the Base Calculation Amount is equal to your initial Purchase Payment. Aggregate Purchase Payments over $1 million are subject to our consent, including our consent to limit the Base Calculation Amount applicable to your GMAB Rider. We may impose a maximum Base Calculation Amount (and thereby, a maximum Benefit Base) in the future for Contract Owners who elect the GMAB Rider, but the maximum Base Calculation Amount will never be 49 less than the Base Calculation Amount to which we have previously consented. We reserve the right to restrict increases in your maximum Base Calculation Amount based on subsequent Purchase Payments if such Purchase Payments would cause you Base Calculation Amount to be greater than our maximum Base Calculation Amount. We will not limit or impose a maximum Base Calculation Amount if your aggregate Purchase Payments are under $1 million. If you purchase more than one contract issued by the Company in the same calendar year and elect the GMAB Rider on each contract, the $1,000,000 Benefit Base maximum may be applied to the aggregate Benefit Base for all contracts. State variations may apply. The Base Calculation Amount will not be used to calculate any benefits under the Contract, other than the GMAB Rider Liquidity Option described below. The Base Calculation Amount can never be less than zero. The Base Calculation Amount may change between the Rider Effective Date and Rider Maturity Date if you make additional Purchase Payments or request withdrawals from your Contract. - If you make an additional Purchase Payment(s) within 12 months after the Rider Effective Date, we will increase the Base Calculation Amount by the amount of the Purchase Payment. If you make an additional Purchase Payment(s) more than 12 months after the Rider Effective Date, we will not increase the Base Calculation Amount; however your Contract Value will increase, reflecting the amount of the Purchase Payment. Therefore, Purchase payments made more than 12 months after the Rider Effective Date may have a significant impact on whether a benefit is due under the GMAB Rider. Even if Purchase Payments made prior to and during the 12-month period after the Rider Effective Date lose significant value, if on the Rider Maturity Date the Contract Value, which includes all Purchase Payments, is equal to or greater than the Benefit Base, which includes all the Purchase Payments prior to or during that 12-month period, then no benefit is due. You should consider this prior to making an additional Purchase Payment more than 12 months after the Rider Effective Date. The GMAB Rider may not be appropriate for you if you anticipate making Purchase Payments after the 12-month period. - If you request a partial withdrawal, we will decrease the Base Calculation Amount in effect as of the date of the request by the actual dollar amount of the withdrawal or the Partial Withdrawal Reduction amount, whichever is greater. The Partial Withdrawal Reduction amount is equal to the Base Calculation Amount in effect immediately prior to the reduction for the partial withdrawal multiplied by the actual amount of the partial withdrawal divided by the Contract Value immediately prior to the partial withdrawal. When determining the impact of a partial withdrawal on the Base Calculation Amount, the actual amount of the partial withdrawal will include any withdrawal charges and taxes that were deducted at the time of the partial withdrawal. Rider Maturity Date: The Rider Maturity Date is the anniversary of the Rider Effective Date that corresponds to the number of years you elect as the Rider Period (described below). Rider Period: The Rider Period is the number of years you select between the Rider Effective Date and the Rider Maturity Date. Currently, we only offer a Rider Period of ten (10) years. We may offer Rider Periods of lesser or greater duration available in the future, subject to additional terms, conditions and limitations. EXAMPLES OF BENEFIT BASE/BASE CALCULATION AMOUNT Below are examples of how we determine the Benefit Base and Base Calculation Amount, as well as examples showing the impact of subsequent Purchase Payments and partial withdrawals. For purposes of each example below, assume that you elect the GMAB Rider on the effective date of your Contract and that your initial Purchase Payment is $100,000. The example below illustrates the impact of the guarantee provided under the GMAB Rider assuming that your Contract Value increases or decreases during the Rider Period. 50 EXAMPLES OF GMAB RIDER ON THE RIDER MATURITY DATE
- ------------------------------------------------------------------------------------------------------------------- INCREASING CONTRACT VALUE DECLINING CONTRACT VALUE - ------------------------------------------------------------------------------------------------------------------- BASE BASE CONTRACT CALCULATION CONTRACT CALCULATION VALUE AMOUNT BENEFIT BASE VALUE AMOUNT BENEFIT BASE - ------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 Not Applicable $100,000 $100,000 Not Applicable - ------------------------------------------------------------------------------------------------------------------- VALUE AS OF RIDER MATURITY DATE $110,000 $100,000 $100,000 $90,000 $100,000 $100,000 - ------------------------------------------------------------------------------------------------------------------- AMOUNT APPLIED TO CONTRACT VALUE DUE TO GMAB RIDER $0(1) $10,000(2) - -------------------------------------------------------------------------------------------------------------------
(1) If your Contract Value on the GMAB Rider Maturity Date is equal to or greater than the Benefit Base, we will not apply any additional amounts to your Contract Value. Your GMAB Rider will terminate and we will no longer deduct the annual charge for the rider. (2) If your Contract Value on the GMAB Rider Maturity Date is less than the Benefit Base, we will apply additional amounts to your Contract Value so that it is equal to the Benefit Base. The additional amount will be added to the money market Subaccount. The example below illustrates the impact of making an additional $10,000 Purchase Payment while the GMAB Rider is in effect, specifically the different manner in which we will treat Purchase Payments for purpose of determining the Base Calculation Amount based on when the Purchase Payment is made. EXAMPLES OF ADDITIONAL PURCHASE PAYMENTS -- IMPACT ON BASE CALCULATION AMOUNT
- ------------------------------------------------------------------------------------------------------------------- ADDITIONAL PURCHASE PAYMENT WITHIN 12 MONTHS ADDITIONAL PURCHASE PAYMENT AFTER 12 MONTHS - ------------------------------------------------------------------------------------------------------------------- BASE BASE CONTRACT PURCHASE CALCULATION CONTRACT PURCHASE CALCULATION VALUE PAYMENT AMOUNT VALUE PAYMENT AMOUNT - ------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 - ------------------------------------------------------------------------------------------------------------------- VALUE BEFORE ADDITIONAL PURCHASE PAYMENT $110,000 Not Applicable $100,000 $110,000 Not Applicable $100,000 - ------------------------------------------------------------------------------------------------------------------- VALUE AFTER ADDITIONAL PURCHASE PAYMENT $120,000 $10,000 $110,000 $120,000 $10,000 $100,000 - -------------------------------------------------------------------------------------------------------------------
The example below illustrates the impact of making a $10,000 partial withdrawal while the GMAB Rider is in effect, specifically the difference in the manner in which a partial withdrawal affects your Base Calculation Amount in an increasing market versus a decreasing market. The example assumes that the partial withdrawal does not qualify under the GMAB Rider Liquidity Option described below. EXAMPLES OF PARTIAL WITHDRAWALS -- IMPACT ON BASE CALCULATION AMOUNT
- --------------------------------------------------------------------------------------------------------------------------- ASSUMING INCREASING CONTRACT VALUE - --------------------------------------------------------------------------------------------------------------------------- BASE REDUCTION TO BASE CONTRACT CALCULATION PARTIAL WITHDRAWAL PARTIAL SURRENDER CALCULATION VALUE AMOUNT AMOUNT REDUCTION AMOUNT - --------------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY PRIOR TO PARTIAL WITHDRAWAL $110,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY [100,000 x FOLLOWING PARTIAL 10,000/110,000] = WITHDRAWAL $100,000 $90,000 $10,000 $9,091 $10,000 - ---------------------------------------------------------------------------------------------------------------------------
51
- --------------------------------------------------------------------------------------------------------------------------- ASSUMING DECLINING CONTRACT VALUE - --------------------------------------------------------------------------------------------------------------------------- BASE REDUCTION TO BASE CONTRACT CALCULATION PARTIAL WITHDRAWAL PARTIAL SURRENDER CALCULATION VALUE AMOUNT AMOUNT REDUCTION AMOUNT - --------------------------------------------------------------------------------------------------------------------------- VALUE AS OF GMAB RIDER EFFECTIVE DATE $100,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY PRIOR TO PARTIAL WITHDRAWAL $90,000 $100,000 Not Applicable Not Applicable Not Applicable - --------------------------------------------------------------------------------------------------------------------------- VALUE IMMEDIATELY [100,000 x FOLLOWING PARTIAL 10,000/90,000] = WITHDRAWAL $80,000 $88,889 $10,000 $11,111 $11,111 - ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT LIMITATIONS/RESTRICTIONS/REBALANCING If you elect the GMAB Rider, your Contract will be subject to additional limitations and restrictions on your right to allocate Contract Value among the Subaccounts, your right to request transfers between Subaccounts and your right to allocate Purchase Payments to Subaccounts. We classify each Subaccount as Class A or Class B based on our assessment of the relative risk and volatility of the Underlying Fund in which the Subaccount invests. Subaccounts that we classify as "Class A" will generally invest in Underlying Funds that invest primarily in equity securities, or securities that we believe will approximate the relative volatility and relative risk of equity securities. Subaccounts that we classify as "Class B" will generally invest in Underlying Funds that invest primarily in debt securities or cash. A Subaccount that invests in an Underlying Fund that invests in a combination of equity securities and debt securities will be classified as either Class A or Class B. We have sole discretion to determine whether a Subaccount is classified as Class A or Class B. We reserve the right to change the classification of a Subaccount from Class A to Class B or from Class B to Class A. Any change in Subaccount classification will apply to Contract Owners who elect the GMAB Rider after the effective date of the change in classification, as well as existing Contract Owner who have the GMAB Rider in force as of the effective date of the change in classification. You will be required to establish a personal allocation profile at the time that you elect the GMAB Rider specifying the Subaccounts and the allocation percentages for each Subaccount in which you intend to allocate your initial Purchase Payment and any credits that we apply to your initial Purchase Payment. Your personal allocation profile will remain in effect for any additional Purchase Payments you make until you elect to change it. Your personal allocation profile may include any combination of Class A and Class B Subaccounts so long as the overall allocation does not violate the limitations and restrictions described below. You may only allocate up to 80% of your initial Purchase Payment and any credits that we apply to your initial Purchase Payment to Subaccounts that we classify as Class A. You must allocate 20% or more of your initial Purchase Payment and any credits that we apply to your initial Purchase Payment to Subaccounts that we classify as Class B. Any time that you request a transfer of Contract Value between Subaccounts or make an additional Purchase Payment, you must comply with the following limitations or restrictions: - You may allocate your Contract Value in one or more of the Class A Subaccounts that you choose; however, you may only allocate up to 80% of your Contract Value to Subaccounts that we classify as Class A. - You may allocate your Contract Value in one or more of the Class B Subaccounts that you choose; however, you must allocate 20% or more of your Contract Value to Subaccounts that we classify as Class B. - If you make an additional Purchase Payment, you can only allocate up to 80% of the Purchase Payment to Subaccounts that we classify as Class A. - If you make an additional Purchase Payment, you must allocate 20% or more of the Purchase Payment to Subaccounts that we classify as Class B. 52 Any request to transfer Contract Value or allocate subsequent Purchase Payments that would violate these limitations and restrictions will be rejected. You will be required to submit a new request that complies with the applicable limitation or restriction. We will not be responsible for any financial impact caused by delays in processing your transaction if your request is rejected because it does not comply with an applicable limitation or restriction. Rebalancing: On a quarterly basis, we will rebalance your Contract Value according to the current personal allocation profile that you chose for Class A and Class B Subaccounts. Unless you instruct us otherwise, we will rebalance your Contract Value in each Class A and Class B Subaccount, respectively, according to the relative proportions indicated in your personal allocation profile. Below is a list of the Subaccounts that are currently classified as Class B Subaccounts. All remaining Subaccounts offered under the Contract are classified as Class A Subaccounts.
CLASS B SUBACCOUNTS/ UNDERLYING FUNDS -------------------------------------------------------- METROPOLITAN SERIES FUND, INC. BlackRock Money Market Portfolio -- Class A MFS(R) Total Return Portfolio -- Class B PIONEER VARIABLE CONTRACTS TRUST -- CLASS II Pioneer Bond VCT Portfolio Pioneer Global High Yield VCT Portfolio Pioneer Ibbotson Growth Allocation VCT Portfolio Pioneer Ibbotson Moderate Allocation VCT Portfolio Pioneer Strategic Income VCT Portfolio
GMAB RIDER LIQUIDITY OPTION During the 90-day period prior to the 5th anniversary of the Rider Effective Date, you may request a partial withdrawal of up to 15% of the Base Calculation Amount immediately prior to the request. Under this option, we will reduce the Base Calculation Amount by the dollar amount of the withdrawal so long as the withdrawal does not exceed the amount available for withdrawal under this provision. If you request a partial withdrawal greater than 15% of the Base Calculation Amount, we will reduce the Base Calculation Amount by the dollar amount of the withdrawal for amounts withdrawn up to the 15% limit and, for the excess amount, we will reduce the Base Calculation Amount as described above under the sub-section "Base Calculation Amount." Any partial withdrawal you make under this provision will be made free of withdrawal charges that would otherwise apply under the terms of your Contract. Additionally, any withdrawals taken under this feature will reduce your Free Withdrawal Allowance under the Contract. This feature can only be exercised once before the Rider Maturity Date and must occur during the 90-day period prior to the 5th anniversary of the Rider Effective Date. We reserve the right to require you to exercise your rights under this provision on the anniversary of your Rider Effective Date. You must notify us in a form acceptable to us that you are exercising your rights under this GMAB Rider Liquidity Option. CANCELLATION OF THE GMAB RIDER You may elect to cancel the GMAB Rider at any time after the 5th anniversary of the GMAB Rider Effective Date. Upon cancellation, we will no longer deduct the annual charge for the GMAB Rider. Upon cancellation of the GMAB Rider, all rights and benefits under the GMAB Rider will cease. Upon cancellation, we will no longer apply any of the investment limitations and restrictions described above. GMAB Rider Exchange Option -- If, during the 90-day period following the 5th anniversary of the Rider Effective Date, your Contract Value is greater than the Base Calculation Amount, you may elect to cancel the GMAB Rider and simultaneously elect either a new GMAB Rider or a GMWB Rider. You will be required to meet any eligibility requirements that apply to each rider at the time you make the election. Exchange for New GMAB Rider: If you elect to cancel the GMAB Rider and elect the GMAB Rider that we make available under this Rider Exchange Option, the Rider Effective Date for your new GMAB Rider will be the date we receive your request in good order. Your new GMAB Rider will be subject to a new 53 Rider Maturity Date. The Benefit Base of your prior GMAB Rider will not apply to the new GMAB Rider. Your Contract Value as of the date you elect to exchange your GMAB Rider will be used to determine your initial Base Calculation Amount for the new rider. The new GMAB Rider will be subject to a new charge that may be higher or lower than the charge you paid for your original GMAB Rider. The GMAB Rider that we make available under this Rider Exchange Option will always feature a ten year Rider Period and may include other Rider Period durations. Exchange for GMWB Rider: If you elect to cancel the GMAB Rider and elect the GMWB Rider that we make available under this Rider Exchange Option, the Rider Effective Date for your GMWB Rider will be the date we receive your request. The GMWB Rider that we make available under this Rider Exchange Option will feature a 10% minimum annual withdrawal amount. The GMWB Rider will be subject to the charge then in effect for a GMWB Rider that is offered under this Rider Exchange Option. TERMINATION The GMAB Rider will terminate on the earliest to occur of: (1) the Rider Maturity Date; (2) the date you elect to begin receiving Annuity Payments under the Contract; (3) the date you fully surrender your Contract; (4) the date you elect to cancel the GMAB Rider (including assignments); (5) the date we receive Due Proof of Death if the surviving spouse or beneficiary does not elect to continue the Contract (if allowed); or (6) the date the GMAB Rider is cancelled and replaced with a new GMAB Rider or GMWB Rider under the Rider Exchange Option. The annual charge for the GMAB Rider will no longer be deducted and all guarantees will cease when the rider is terminated. Further, any investment limitations and restrictions will no longer apply after the GMAB Rider is terminated. If the GMAB Rider is terminated before the Rider Maturity Date, the Benefit Base will not be paid. CHARGE FOR GMAB If you elect the GMAB Rider, we will deduct an additional charge on each business day that is equal to an annual charge of 0.50% from your Contract Value invested in the Subaccounts. The charge will be applied and will not change from the Rider Effective Date until the Rider Maturity Date unless the rider is cancelled or terminates prior to such date. If you elect to terminate the GMAB Rider prior to the Rider Maturity Date, the charge will no longer be deducted. If you elect to exchange this GMAB Rider and elect a new GMAB Rider under the Rider Exchange Option (described above), the current charge in effect for the GMAB rider will be applied, which may be higher or lower than the charge you paid for this rider. ADDITIONAL CONSIDERATIONS - Your Contract cannot have any outstanding loans if you elect the GMAB Rider. Further, you may not request a loan from your Contract if you have previously elected the GMAB Rider. - If you die while the GMAB Rider is in effect, and your surviving spouse or Beneficiary elects to continue the Contract under the spousal contract continuance or beneficiary contract continuance provision, then the GMAB Rider will remain in effect and will continue until the Rider Maturity Date. - Any DCA Program that is in effect while the GMAB Rider is in effect must meet the investment limitations and restrictions of the GMAB Rider, as described above. In addition, you may not request a DCA Program that makes transfers from Class B Subaccounts to Class A Subaccounts. - If you are expecting to request withdrawals from your Contract, including withdrawals intended to satisfy required minimum distribution requirements, the impact of such withdrawals on the guarantees provided under the GMAB Rider will make the rider less valuable. 54 THE ANNUITY PERIOD - -------------------------------------------------------------------------------- MATURITY DATE Under the Contract, you can receive regular payments ("Annuity Payments"). You can choose the month and the year in which those payments begin ("Maturity Date"). You can also choose among payout options or elect a lump sum distribution. While the Annuitant is alive, you can change your selection any time up to the Maturity Date. Annuity Payments will begin on the Maturity Date stated in the Contract unless (1) you fully surrendered the Contract; (2) we paid the proceeds to the beneficiary before that date; or (3) you elected another date. Annuity Payments are a series of periodic payments (a) for life; (b) for life with a minimum number of payments assured; (c) for the joint lifetime of the Annuitant and another person, and thereafter during the lifetime of the survivor; or (d) for a fixed period. We may require proof that the Annuitant is alive before we make Annuity Payments. Not all options may be available in all states. Please be aware that once the Contract is annuitized, you are ineligible to receive the death benefit you have selected and any living benefit rider is terminated. You may choose to annuitize at any time after the first Contract Date anniversary. Unless you elect otherwise, the Maturity Date will be the Annuitant's 90(th) birthday for Non-qualified Contracts and the Annuitant's 70(th) birthday for Qualified Contracts or ten years after the effective date of the Contract, if later (this requirement may be changed by us). At least 30 days before the original Maturity Date, you may elect to extend the Maturity Date to any time prior to the Annuitant's 90th birthday or to a later date with our consent. You may use certain annuity options taken at the Maturity Date to meet the minimum required distribution requirements of federal tax law, or you may use a program of withdrawals instead. These mandatory distribution requirements take effect generally upon the death of the Contract Owner, or with certain Qualified Contracts upon either the later of the Contract Owner's attainment of age 70 1/2 or year of retirement; or the death of the Contract Owner. You should seek independent tax advice regarding the election of minimum required distributions. ALLOCATION OF ANNUITY You may elect to receive your Annuity Payments in the form of a variable annuity, a fixed annuity, or a combination of both. If, at the time Annuity Payments begin, you have not made an election, we will apply your Cash Surrender Value to provide an annuity funded by the same funding options as you have selected during the accumulation period. At least 30 days before the Maturity Date, you may transfer the Contract Value among the funding options in order to change the basis on which we will determine Annuity Payments. (See "Transfers.") VARIABLE ANNUITY You may choose an annuity payout that fluctuates depending on the investment experience of the Variable Funding Options. We determine the number of Annuity Units credited to the Contract by dividing the first monthly Annuity Payment attributable to each Variable Funding Option by the corresponding Accumulation Unit value as of 14 days before the date Annuity Payments begin. We use an Annuity Unit to measure the dollar value of an Annuity Payment. The number of Annuity Units (but not their value) remains fixed during the annuity period. DETERMINATION OF FIRST ANNUITY PAYMENT. Your Contract contains the tables we use to determine your first monthly Annuity Payment. If you elect a variable annuity, the amount we apply to it will be the Cash Surrender Value as of 14 days before the date Annuity Payments begin, less any applicable premium taxes not previously deducted. The amount of your first monthly payment depends on the annuity option you elected and the Annuitant's adjusted age. Your Contract contains the formula for determining the adjusted age. We determine the total first monthly Annuity Payment by multiplying the benefit per $1,000 of value shown in the Contract tables by the number of thousands of dollars of Contract Value you apply to that annuity option. The Contract tables factor in an assumed daily net investment factor of 3.0%. We call this your net investment rate. Your net investment rate of 3% corresponds to an annual interest rate of 3%. This means that if the annualized investment performance, after expenses, of your Variable Funding Options is less than 3%, then the dollar amount of your variable Annuity Payments will decrease. However, if the annualized investment performance, after expenses, of your Variable Funding Options is greater than 3%, then the dollar amount of your variable Annuity Payments will increase. 55 DETERMINATION OF SECOND AND SUBSEQUENT ANNUITY PAYMENTS. The dollar amount of all subsequent Annuity Payments changes from month to month based on the investment experience, as described above, of the applicable funding options. The total amount of each Annuity Payment will equal the sum of the basic payments in each funding option. We determine the actual amounts of these payments by multiplying the number of Annuity Units we credited to each funding option by the corresponding Annuity Unit value as of the date 14 days before the date the payment is due. FIXED ANNUITY You may choose a fixed annuity that provides payments that do not vary during the annuity period. We will calculate the dollar amount of the first fixed Annuity Payment as described under "Variable Annuity," except that the amount we apply to begin the annuity will be your Cash Surrender Value as of the date Annuity Payments begin. Payout rates will not be lower than that shown in the Contract. If it would produce a larger payment, the first fixed Annuity Payment will be determined using the Annuity Tables in effect on the Maturity Date. PAYMENT OPTIONS - -------------------------------------------------------------------------------- ELECTION OF OPTIONS While the Annuitant is alive, you can change your annuity option selection any time up to the Maturity Date. Once Annuity Payments have begun, no further elections are allowed. During the Annuitant's lifetime, if you do not elect otherwise before the Maturity Date, we will pay you (or another designated payee) the first of a series of monthly Annuity Payments based on the life of the Annuitant, in accordance with Annuity Option 2 (Life Annuity with 120 monthly payments assured). For certain Qualified Contracts, Annuity Option 4 (Joint and Last Survivor Life Annuity -- Annuity Reduced on Death of Primary Payee) will be the automatic option as described in the Contract. (See "Annuity Options.") The minimum amount that can be placed under an annuity option will be $2,000 unless we agree to a lesser amount. If any monthly periodic payment due is less than $100, the Company reserves the right to make payments at less frequent intervals, or to pay the Contract Value in a lump-sum. On the Maturity Date, we will pay the amount due under the Contract in accordance with the payment option that you select. You may choose to receive a single lump-sum payment. You must elect an option in writing, in a form satisfactory to the Company. Any election made during the lifetime of the Annuitant must be made by the Contract Owner. ANNUITY OPTIONS Subject to the conditions described in "Election of Options" above, we may pay all or any part of the Cash Surrender Value under one or more of the following annuity options. Payments under the annuity options are generally made on a monthly basis. We may offer additional options. Option 1 -- Life Annuity -- No Refund. The Company will make Annuity Payments during the lifetime of the Annuitant ending with the last payment before death. This option offers the maximum periodic payment, since there is no assurance of a minimum number of payments or provision for a death benefit for beneficiaries. Option 2 -- Life Annuity with 120, 180 or 240 Monthly Payments Assured. The Company will make monthly Annuity Payments during the lifetime of the Annuitant, with the agreement that if, at the death of that person, payments have been made for less than 120, 180 or 240 months, as elected, we will continue making payments to the beneficiary during the remainder of the period. Option 3 -- Joint and Last Survivor Life Annuity -- No Refund. The Company will make regular Annuity Payments during the lifetime of the Annuitant and a second person. When either person dies, we will continue making payments to the survivor. No further payments will be made following the death of the survivor. 56 Option 4 -- Joint and Last Survivor Life Annuity -- Annuity Reduced on Death of Primary Payee. The Company will make Annuity Payments during the lifetimes of the Annuitant and a second person. You will designate one as primary payee, and the other will be designated as secondary payee. On the death of the secondary payee, the Company will continue to make monthly Annuity Payments to the primary payee in the same amount that would have been payable during the joint lifetime of the two persons. On the death of the primary payee, the Company will continue to make Annuity Payments to the secondary payee in an amount equal to 50% of the payments, which would have been made during the lifetime of the primary payee. No further payments will be made once both payees have died. Option 5 -- Payments for a Fixed Period without Life Contingency. We will make periodic payments for the period selected. This option may not satisfy the minimum required distribution rules for Qualified Contracts. Consult a tax adviser before electing this option. Option 6 -- Other Annuity Options. We will make any other arrangements for Annuity Payments as may be mutually agreed upon. VARIABLE LIQUIDITY BENEFIT This benefit is only offered with the annuity option "Payments for a Fixed Period without Life Contingency." At any time after annuitization and before death, the Contract Owner may surrender and receive a payment equal to (A) minus (B), where (A) equals the present value of remaining certain payments, and (B) equals a withdrawal charge not to exceed the maximum withdrawal charge rate shown on the specifications page of the Contract multiplied by (A). The interest rate used to calculate the present value is a rate 1% higher than the Assumed (Daily) Net Investment Factor used to calculate the Annuity Payments. The remaining period certain payments are assumed to be level payments equal to the most recent period certain payment prior to the request for this liquidity benefit. A withdrawal charge is not imposed if the surrender is made after the expiration of the withdrawal charge period shown on the specifications page of the Contract. MISCELLANEOUS CONTRACT PROVISIONS - -------------------------------------------------------------------------------- RIGHT TO RETURN You may return the Contract for a full refund of the Contract Value plus any Contract charges and premium taxes you paid (but not any fees and charges the Underlying Fund assessed) within ten days after you receive it (the "right to return period"). You bear the investment risk of investing in the Variable Funding Options during the right to return period; therefore, the Contract Value we return may be greater or less than your Purchase Payment. If you purchase the Contract as an Individual Retirement Annuity, and return it within the first seven days after delivery, or longer if your state law permits, we will refund your Purchase Payment in full; during the remainder of the right to return period, we will refund the Contract Value (including charges). We will determine the Contract Value following the close of the business day on which we receive your Contract and a Written Request for a refund. Where state law requires a different period, or the return of Purchase Payments or other variations of this provision, we will comply. Refer to your Contract for any state-specific information. TERMINATION We reserve the right to terminate the Contract on any business day if your Contract Value as of that date is less than $2,000 and you have not made Purchase Payments for at least two years, unless otherwise specified by state law. Accordingly, no Contract will be terminated due solely to negative investment performance. Termination will not occur until 31 days after we have mailed notice of termination to your last known address and to any assignee of record. If we terminate the Contract, we will pay you the Cash Surrender Value less any applicable taxes. In certain states, we may be required to pay you the Contract Value. Federal tax law may impose additional restrictions on our right to terminate your traditional IRA, Roth IRA or other Qualified Contract. 57 REQUIRED REPORTS As often as required by law, but at least once in each Contract Year before the due date of the first Annuity Payment, we will furnish a report showing the number of Accumulation Units credited to the Contract and the corresponding Accumulation Unit value(s) as of the report date for each funding option to which the Contract Owner has allocated amounts during the applicable period. The Company will keep all records required under federal and state laws. SUSPENSION OF PAYMENTS The Company reserves the right to suspend or postpone the date of any payment or determination of values on any business day (1) when the New York Stock Exchange ("the Exchange") is closed; (2) when trading on the Exchange is restricted; (3) when an emergency exists, as determined by the SEC, so that the sale of securities held in the Separate Account may not reasonably occur, or so that the Company may not reasonably determine the value the Separate Account's net assets; or (4) during any other period when the SEC, by order, so permits for the protection of security holders. At any time, payments from the Fixed Account may be delayed up to 6 months. THE SEPARATE ACCOUNTS - -------------------------------------------------------------------------------- The Company sponsors Separate Account Thirteen and Separate Account Fourteen. When we refer to the Separate Account, we are referring to Separate Account Thirteen, except where the Contract was originally issued by MLACC, in which case, we are referring to Separate Account Fourteen. (See "The Insurance Company" .) Both Separate Account Thirteen and Separate Account Fourteen were established on November 14, 2002 and are registered with the SEC as unit investment trusts under the Investment Company Act of 1940, as amended. We will invest Separate Account assets attributable to the Contracts exclusively in the shares of the Variable Funding Options. We anticipate merging Separate Account Thirteen and Separate Account Fourteen with and into another separate account of the Company (the MetLife of CT Separate Account Eleven for Variable Annuities) during the fourth quarter of 2008 at the earliest, subject to regulatory approval. This merger will have no effect on the provisions of, and the rights and obligations under, the Contract. Similarly, the merger will not have any adverse impact on your Contract Value or any tax consequences for you. We hold the assets of the Separate Account for the exclusive and separate benefit of the owners of each Separate Account, according to the laws of Connecticut. Income, gains and losses, whether or not realized, from assets allocated to the Separate Account are, in accordance with the Contracts, credited to or charged against the Separate Account without regard to other income, gains and losses of the Company. The assets held by the Separate Account are not chargeable with liabilities arising out of any other business that we may conduct. Obligations under the Contract are obligations of the Company. Any obligations that exceed the assets in the Separate Account are payable by the Company's general account. The amount of the guaranteed death benefit that exceeds the Contract Value is paid from the Company's general account. Benefit amounts paid from the general account are subject to the financial strength and claims-paying ability of the Company. All investment income and other distributions of the funding options are payable to the Separate Account. We reinvest all such income and/or distributions in shares of the respective funding option at net asset value. Shares of the funding options are currently sold only to life insurance company separate accounts to fund variable annuity and variable life insurance contracts. Certain variable annuity separate accounts and variable life insurance separate accounts may invest in the funding options simultaneously (called "mixed" and "shared" funding). It is conceivable that in the future it may be disadvantageous to do so. Although the Company and the Variable Funding Options do not currently foresee any such disadvantages either to variable annuity contract owners or variable life policy owners, each Underlying Fund's Board of Directors intends to monitor events in order to identify any material conflicts between them and to determine what action, if any, should be taken. If a Board of Directors was to conclude that separate funds should be established for variable life and variable annuity separate accounts, the variable annuity contract owners would not bear any of the related expenses, but variable annuity contract owners and variable life insurance policy owners would no longer have the economies of scale resulting from a larger combined fund. 58 We reserve the right to transfer assets of the Separate Account to another separate account, and/or to modify the structure or operation of the Separate Account, subject to the necessary regulatory approvals. If we do so, we guarantee that the modification will not affect your Contract Value. PERFORMANCE INFORMATION In advertisements for the Contract, we may include performance figures to show you how a Variable Funding Option has performed in the past. These figures are rates of return or yield quotations shown as a percent. These figures show past performance of a Variable Funding Option and are not an indication of how a Variable Funding Option will perform in the future. Our advertisements may show performance figures assuming that you do not elect any optional features such as the E.S.P., GMAB or GMWB. However, if you elect any of these optional features, they involve additional charges that will serve to decrease the performance of your Variable Funding Options. You may wish to speak with your registered representative to obtain performance information specific to the optional features you may wish to select. Performance figures for each Variable Funding Option are based in part on the performance of a corresponding Underlying Fund. In some cases, the Underlying Fund may have existed before the technical inception of the corresponding Variable Funding Option. In those cases, we can create "hypothetical historical performance" of a Variable Funding Option. These figures show the performance that the Variable Funding Option would have achieved had it been available during the entire history of the Underlying Fund. In a low interest rate environment, yields for money market Subaccounts, after deduction of the Mortality and Expense Risk Charge, Administrative Expense Charge and the charge for any optional benefit riders (if applicable), may be negative even though the Underlying Fund's yield, before deducting for such charges, is positive. If you allocate a portion of your Contract Value to a money market Subaccount or participate in an asset allocation program where Contract Value is allocated to a money market Subaccount under the applicable asset allocation model, that portion of your Contract Value may decrease in value. FEDERAL TAX CONSIDERATIONS - -------------------------------------------------------------------------------- The following general discussion of the federal income tax consequences related to your investment in this Contract is not intended to cover all situations, and is not meant to provide tax or legal advice. Because of the complexity of the law and the fact that the tax results will vary depending on many factors, you should consult your tax and/or legal adviser regarding the tax implications of purchasing this Contract based upon your individual situation. For further tax information, an additional discussion of certain tax matters is contained in the SAI. You are responsible for determining whether your purchase of a Contract, withdrawals, income payments and any other transaction under your Contract satisfy applicable tax law. We are not responsible for determining if your employer's plan or arrangement satisfies the requirements of the Code and/or the Employee Retirement Income Security Act of 1974 (ERISA). GENERAL TAXATION OF ANNUITIES Congress has recognized the value of saving for retirement by providing certain tax benefits, in the form of tax deferral, for premiums paid under an annuity and permitting tax-free transfers between the various investment options offered under the Contract. The Internal Revenue Code ("Code") governs how earnings on your investment in the Contract are ultimately taxed, depending upon the type of contract, qualified or non-qualified, and the manner in which the money is distributed, as briefly described below. In analyzing the benefits of tax deferral it is important to note that the Jobs and Growth Tax Relief Reconciliation Act of 2003 amended Code Section 1 to reduce the marginal tax rates on long-term capital gains and dividends to 5% and 15%. The reduced rates apply during 2003 through 2008, and thereafter will increase to prior levels. Under current federal tax law, the taxable portion of distributions under variable annuity contracts and qualified plans (including IRAs) is not eligible for the reduced tax rate applicable to long-term capital gains and dividends. Earnings under annuity contracts, like interest payable on fixed investments (notes, bonds, etc.), continue to be taxed as ordinary income (top rate of 35%). The tax law provides deferred annuities issued after October 21, 1988 by the same insurance company or an affiliate in the same 59 calendar year to the same owner are combined for tax purposes. As a result, a greater portion of your withdrawals may be considered taxable income than you would otherwise expect. Although the law is not clear, the aggregation rule may also adversely affect the tax treatment of payments received under an income annuity where the owner has purchased more than one non-qualified annuity during the same calendar year from the same or an affiliated company after October 21, 1988, and is not receiving income payments from all annuities at the same time. Please consult your own tax advisor. STATE AND LOCAL TAXES. The rules for state and local income taxes may differ from the federal income tax rules. Purchasers and prospective purchasers of the Contract should consult their own tax advisers and the law of the applicable taxing jurisdiction to determine what rules and tax benefits apply to the Contract. PENALTY TAX FOR PREMATURE DISTRIBUTIONS. For both Qualified and Non-qualified Contracts, taxable distributions taken before the Contract Owner has reached the age of 59 1/2 will be subject to a 10% additional tax penalty unless the distribution is taken in a series of periodic distributions, for life or life expectancy, or unless the distribution follows the death or disability of the Contract Owner. Other exceptions may be available in certain qualified plans. The 10% tax penalty is in addition to any other penalties that may apply under your Contract and the normal income taxes due on the distribution. TAX-FREE EXCHANGES. Code Section 1035 provides that, if certain conditions are met, no gain or loss is recognized when an annuity contract is received in exchange for a life insurance policy, endowment, or annuity contract. Since different annuity contracts have different expenses, fees and benefits, a tax- free exchange could result in your investment becoming subject to higher or lower fees and/or expenses. FEDERAL ESTATE TAXES. While no attempt is being made to discuss the federal estate tax implications of the Contract, you should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent's gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning adviser for more information. GENERATION-SKIPPING TRANSFER TAX. Under certain circumstances, the Code may impose a "generation-skipping transfer tax" when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Contract Owner. Regulations issued under the Code may require us to deduct the tax from your Contract, or from any applicable payment, and pay it directly to the IRS. TYPES OF CONTRACTS: QUALIFIED AND NON-QUALIFIED QUALIFIED ANNUITY CONTRACTS If you purchase your Contract with proceeds of an eligible rollover distribution from any qualified employee pension plan or retirement savings plan or individual retirement annuity (IRA), your Contract is referred to as a Qualified Contract. Some examples of Qualified Contracts are: IRAs (including Roth IRAs), tax-sheltered annuities established by public school systems or certain tax- exempt organizations under Code Section 403(b), corporate sponsored pension, retirement savings, and profit-sharing plans (including 401(k) plans), Keogh Plans (for self-employed individuals), and certain other qualified deferred compensation plans. Another type of Qualified Contract is a Roth IRA, under which after-tax contributions accumulate until maturity, when amounts (including earnings) may be withdrawn tax-free. The rights and benefits under a Qualified Contract may be limited by the terms of the retirement plan, regardless of the terms and conditions of the Contract. Plan participants making contributions to Qualified Contracts will be subject to the required minimum distribution rules as provided by the Code and described below. All qualified plans (including IRAs) receive tax-deferral under the Code. Although there are no additional tax benefits to funding your qualified plan or IRA with an annuity, it does offer you additional insurance benefits, such as the availability of a guaranteed income for life. The Contract has been submitted to the IRS for review and is awaiting approval as to form as a valid IRA. Such approval would not constitute an IRS approval or endorsement of any funding options under the contract. IRS approval as to form is not required to constitute a valid IRA. Disqualification of the Contract as an IRA could result in the immediate taxation of amounts held in the Contract and other adverse tax consequences. 60 TAXATION OF QUALIFIED ANNUITY CONTRACTS Under a qualified annuity, since amounts paid into the Contract generally have not yet been taxed, the full amount of any distributions (including the amount attributable to Purchase Payments), whether paid in the form of lump sum withdrawals or Annuity Payments, are generally taxed at ordinary income tax rates unless the distribution is transferred to an eligible rollover account or contract. There are special rules which govern the taxation of Qualified Contracts, including withdrawal restrictions, requirements for mandatory distributions, and contribution limits. Amounts rolled over to the Contract from other qualified funding vehicles generally are not subject to current taxation. MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS Federal tax law requires that minimum annual distributions begin by April 1st of the calendar year following the calendar year in which an IRA owner attains age 70 1/2. Participants in qualified plans and 403(b) annuities may defer minimum distributions until the later of April 1st of the calendar year following the calendar year in which they attain age 70 1/2 or the year of retirement (except for participants who are 5% or more owners of the plan sponsor). If you own more than one individual retirement annuity and/or account, you may satisfy the minimum distribution rules on an aggregate basis (i.e. determine the total amount of required distributions from all IRAs and take the required amount from any one or more IRAs). A similar aggregate approach is available to meet your 403(b) minimum distribution requirements if you have multiple 403(b) annuities. Recently promulgated Treasury regulations changed the distribution requirements; therefore, it is important that you consult your tax adviser as to the impact of these regulations on your personal situation. Final income tax regulations regarding minimum distribution requirements were released in June 2004. These regulations affect both deferred and income annuities. Under these new rules, effective with respect to minimum distributions required for the 2006 distribution year, in general, the value of all benefits under a deferred annuity (including death benefits in excess of cash value, including the Enhanced Stepped-Up Provision, as well as all living benefits such as GMAB and GMWB ) must be added to the Contract Value in computing the amount required to be distributed over the applicable period. We will provide you with additional information as to the amount of your interest in the Contract that is subject to required minimum distributions under this new rule and either compute the required amount for you or offer to do so at your request. The new rules are not entirely clear and you should consult your personal tax advisor as to how these rules affect your Contract. MINIMUM DISTRIBUTIONS FOR BENEFICIARIES UPON THE CONTRACT OWNER'S DEATH: Upon the death of the Contract Owner and/or Annuitant of a Qualified Contract, the funds remaining in the Contract must be completely withdrawn within five years from the date of death or minimum distributions may be taken over the life expectancy of the individual beneficiaries (or in the case of certain trusts that are contract beneficiaries, over the life expectancy of the individuals who are the beneficiaries of the trust), provided such distributions are payable at least annually and begin within one year from the date of death. Special rules apply where the beneficiary is the surviving spouse, which allow the spouse to assume the Contract and defer the minimum distribution requirements. NOTE TO PARTICIPANTS IN QUALIFIED PLANS INCLUDING 401, 403(B), 408 OR 457, INCLUDING IRA OWNERS: While annual plan contribution limits may be increased from time to time by Congress and the IRS for federal income tax purposes, these limits must be adopted by each state for any higher limits to be effective at a state income tax level. In other words, the permissible contribution limits for federal and state income tax purposes may be different. Therefore, in certain states, a portion of the contributions may not be excludible or deductible from state income taxes. Please consult your employer or tax adviser regarding this issue. INDIVIDUAL RETIREMENT ANNUITIES To the extent of earned income for the year and not exceeding the applicable limit for the taxable year, an individual may make contributions, which in some cases may be deductible, to an individual retirement annuity (IRA). The applicable limit is $4,000 in 2007 and $5,000 in 2008, and it may be indexed for inflation in years after 2008. Additional "catch-up contributions" may be made to an IRA by individuals age 50 or over. There are certain limits on the deductible amount based on the adjusted gross income of the individual and spouse and on their participation in a retirement plan. If an individual is married and the spouse is not employed, the individual may establish IRAs for the individual and spouse. Purchase Payments may then be made annually into IRAs for both 61 spouses in the maximum amount of 100% of earned income up to a combined limit based on the individual limits outlined above. Deductible contributions to an IRA and Roth IRA for the year must be aggregated for purposes of the individual Code Section 408A limits and the Code Section 219 limits (age 50+catch-up). Partial or full distributions are treated as ordinary income, except that amounts contributed after 1986 on a non-deductible basis are not includable in income when distributed. An additional tax of 10% will apply to any taxable distribution from the IRA that is received by the participant before the age of 59 1/2 except by reason of death, disability or as part of a series of payments for life or life expectancy. Distributions must commence by April 1st of the calendar year after the close of the calendar year in which the individual attains the age of 70 1/2. Certain other mandatory distribution rules apply on the death of the individual. The individual must maintain personal and tax return records of any non-deductible contributions and distributions. Section 408 (k) of the Code provides for the purchase of a Simplified Employee Pension (SEP) plan. A SEP is funded through an IRA and can accept an annual employer contribution limited to the lesser of $46,000 or 100% of pay for each participant in 2008. ROTH IRAS Effective January 1, 1998, Section 408A of the Code permits certain individuals to contribute to a Roth IRA. Eligibility to make contributions is based upon income, and the applicable limits vary based on marital status and/or whether the contribution is a rollover contribution from another IRA or an annual contribution. Contributions to a Roth IRA, which are subject to certain limitations, (similar to the annual limits for traditional IRAs), are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A conversion of "traditional" IRA to a Roth IRA may be subject to tax and other special rules apply. You should consult a tax adviser before combining any converted amounts with other Roth IRA contributions, including any other conversion amounts from other tax years. Qualified distributions from a Roth IRA are tax-free. A qualified distribution requires that the Roth IRA has been held for at least 5 years, and the distribution is made after age 59 1/2, on death or disability of the owner, or for a limited amount ($10,000) for a qualified first time home purchase for the owner or certain relatives. Income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during five taxable years starting with the year in which the first contribution is made to the Roth IRA. TSAS (ERISA AND NON-ERISA) GENERAL. TSAs fall under sec.403(b) of the Code, which provides certain tax benefits to eligible employees of public school systems and organizations that are tax exempt under sec.501(c)(3) of the Code. In general contributions to sec.403(b) arrangements are subject to limitations under sec.415(c) of the Code (the lesser of 100% of includable compensation or the applicable limit for the year). Recently, the IRS announced new regulations affecting sec.403(b) plans and arrangements. As part of these regulations, employers will need to meet certain requirements in order for their employees' annuity contracts that fund these programs to retain a tax deferred status under sec.403(b). These regulations are generally effective January 1, 2009. Prior to the new rules, transfers of one annuity contract to another would not result in a loss of tax deferred status under sec.403(b) under certain conditions (so-called "90-24 transfers"). The new regulations have the following effect regarding transfers: (1) a newly issued contract funded by a transfer which is completed after September 24, 2007, is subject to the employer requirements referred to above; (2) additional purchase payments made after September 24, 2007, to a contract that was funded by a 90-24 transfer on or before September 24, 2007, may subject the contract to this new employer requirement. If your Contract was issued previously in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax advisor prior to making additional purchase payments (if permitted). 62 WITHDRAWALS AND INCOME PAYMENTS. If you are under 59 1/2, you cannot withdraw money from your TSA Contract unless the withdrawal: - Relates to Purchase Payments made prior to 1989 (and pre-1989 earnings on those Purchase Payments); - Is directly transferred to another permissible investment under sec.403(b) arrangements; - Relates to amounts that are not salary reduction elective deferrals; - Occurs after you die, leave your job or become disabled (as defined by the Code); or - Is for financial hardship (but only to the extent of Purchase Payments) if your plan allows it. DESIGNATED ROTH ACCOUNT FOR 403(B) PLANS. Effective January 1, 2006, employers that established and maintain a TSA/403(b) plan ("the Plan") may also establish a Qualified Roth Contribution Program under Section 402A of the Code ("Designated Roth Accounts") to accept after-tax contributions as part of the TSA plan. In accordance with our administrative procedures, we may permit these contributions to be made as purchase payments to a Section 403(b) Contract under the following conditions: (1) The employer maintaining the plan has demonstrated to our satisfaction that Designated Roth Accounts are permitted under the Plan. (2) In accordance with our administrative procedures, the amount of elective deferrals has been irrevocably designated as an after-tax contribution to the Designated Roth Account. (3) All state regulatory approvals have been obtained to permit the Contract to accept such after-tax elective deferral contributions (and, where permitted under the Qualified Roth Contribution Program and the Contract, rollovers and trustee-to-trustee transfers from other Designated Roth Accounts). (4) In accordance with our procedures and in a form satisfactory to us, we may accept rollovers from other funding vehicles under any Qualified Roth Contribution Program of the same type in which the employee participates as well as trustee-to-trustee transfers from other funding vehicles under the same Qualified Roth Contribution Program for which the participant is making elective deferral contributions to the Contract. (5) No other contribution types (including employer contributions, matching contributions, etc.) will be allowed as designated Roth contributions, unless they become permitted under the Code. (6) If permitted under the federal tax law, we may permit both pre-tax contributions under a 403(b) plan as well as after-tax contributions under the Plan's Qualified Roth Contribution Program to be made under the same Contract as well as rollover contributions and contributions by trustee-to-trustee transfers. In such cases, we will account separately for the designated Roth contributions and the earnings thereon from the contributions and earnings made under the pre-tax TSA plan (whether made as elective deferrals, rollover contributions or trustee-to-trustee transfers). As between the pre-tax or traditional Plan and the Qualified Roth Contribution Program, we will allocate any living benefits or death benefits provided under the Contract on a reasonable basis, as permitted under the tax law. (7) We may refuse to accept contributions made as rollovers and trustee- to-trustee transfers, unless we are furnished with a breakdown as between participant contributions and earnings at the time of the contribution. Many of the federal income tax rules pertaining to Designated Roth Accounts have not yet been finalized. Both you and your employer should consult their own tax and legal advisors prior to making or permitting contributions to be made to a Qualified Roth Contribution Program. The following general tax rules are based on our understanding of the Code and any regulations issued through December 31, 2005, and are subject to change and to different interpretation as well as additional guidance in respect to areas not previously addressed: The employer must permit contributions under a pre-tax 403(b) plan in order to permit contributions to be irrevocably designated and made part of a Qualified Roth Contribution Program. 63 Elective deferral contributions to the Designated Roth Account must be aggregated with all other elective deferral contributions made by a taxpayer for purposes of the individual Code Section 402(g) limits and the Code Section 414(v) limits (relating to age 50 and over catch-up contributions) as well as contribution limits that apply under the Plan. In general, the same tax law rules with respect to restricted monies, triggering events and permitted distributions will apply to the Designated Roth Accounts under the Plan as apply to the traditional pre-tax accounts under the plan (e.g., death or disability of participant, severance from employment, attainment of age 59 1/2 and hardship withdrawals only with respect to contributions (if permitted under the Plan)). If the amounts have been held under any Designated Roth Account of a participant for at least five years and are made on account of death, disability or after attainment of age 59 1/2, then any withdrawal, distribution or payment of these amounts is generally free of federal income tax ("Qualified Distributions"). Unlike Roth IRAs, withdrawal, distributions and payments that do not meet the five year rule will generally be taxed on a pro-rated basis with respect to earnings and after-tax contributions. The 10% penalty tax will generally apply on the same basis as a traditional pre-tax account under the Plan. Additionally, rollover distributions may only be made tax-free into another Designated Roth Account or into a Roth IRA. Some states may not permit contributions to be made to a Qualified Roth Contribution Program or may require additional conforming legislation for these rules to become effective. LOANS. If your TSA Contract permits loans, such loans will be made only from any Fixed Interest Account balance and only up to certain limits. In that case, we credit your Fixed Interest Account balance up to the amount of the outstanding loan balance with a rate of interest that is less than the interest rate we charge for the loan. The Code and applicable income tax regulations limit the amount that may be borrowed from your Contract and all you employer plans in the aggregate and also require that loans be repaid, at a minimum, in scheduled level payments over a proscribed term. Your Contract will indicate whether loans are permitted. The terms of the loan are governed by the Contract and loan agreement. Failure to satisfy loan limits under the Code or to make any scheduled payments according to the terms of your loan agreement and Federal tax law could have adverse tax consequences. Consult a tax advisor and read your loan agreement and Contract prior to taking any loan. NON-QUALIFIED ANNUITY CONTRACTS If you purchase the Contract on an individual basis with after-tax dollars and not under one of the programs described above, your Contract is referred to as non-qualified. As the owner of a non-qualified annuity, you do not receive any tax benefit (deduction or deferral of income) on Purchase Payments, but you will not be taxed on increases in the value of your Contract until a distribution occurs -- either as a withdrawal made prior to the Maturity Date or in the form of periodic Annuity Payments. As a general rule, there is income in the Contract (earnings) to the extent the Contract Value exceeds your investment in the Contract. The investment in the Contract equals the total Purchase Payments less any amount received previously which was excludible from gross income. Generally, different tax rules apply to Annuity Payments than to withdrawals and payments received before the annuity starting date. When a withdrawal is made, you are taxed on the amount of the withdrawal that is considered earnings under federal tax laws. Similarly, when you receive an Annuity Payment, part of each periodic payment is considered a return of your Purchase Payments and will not be taxed, but the remaining portion of the Annuity Payment (i.e., any earnings) will be considered ordinary income for federal income tax purposes. Annuity Payments are subject to an "excludable amount" or "exclusion ratio" which determines how much of each payment is treated as: - a non-taxable return of your Purchase Payment; or - a taxable payment of earnings. We generally will tell you how much of each Annuity Payment is a non-taxable return of your Purchase Payments. However, it is possible that the IRS could conclude that the taxable portion of Annuity Payments under a non- 64 qualified contract is an amount greater (or less) than the taxable amount determined by us and reported by us to you and the IRS. Generally, once the total amount treated as a non-taxable return of your Purchase Payments equals your Purchase Payments, then all remaining payments are fully taxable. We will withhold a portion of the taxable amount of your Annuity Payment for income taxes, unless you elect otherwise. The amount we withhold is determined by the Code. Code Section 72(s) requires that non-qualified annuity contracts meet minimum mandatory distribution requirements upon the death of the Contract Owner, including the death of either of the Joint Owners. If these requirements are not met, the Contract will not be treated as an annuity contract for federal income tax purposes and earnings under the Contract will be taxable currently, not when distributed. The distribution required depends, among other things, upon whether an annuity option is elected or whether the succeeding Contract Owner is the surviving spouse. We will administer contracts in accordance with these rules and we will notify you when you should begin receiving payments. There is a more complete discussion of these rules in the SAI. If a non-qualified annuity is owned by a non-natural person (e.g., a corporation), increases in the value of the Contract attributable to Purchase Payments made after February 28, 1986 are includable in income annually and taxed at ordinary income tax rates. Furthermore, for contracts issued after April 22, 1987, if the Contract is transferred to another person or entity without adequate consideration, all deferred increases in value will be treated as income for federal income tax purposes at the time of the transfer. PARTIAL WITHDRAWALS: If you make a partial withdrawal of your Contract Value, the distribution generally will be taxed as first coming from earnings (income in the Contract) and then from your Purchase Payments. These withdrawn earnings are includable in your taxable income. (See "Penalty Tax for Premature Distributions" below.) Any direct or indirect borrowing against the value of the Contract or pledging of the Contract as security for a loan will be treated as a cash distribution under the tax law, and will have tax consequences in the year taken. It should be noted that there is no guidance as to the determination of the amount of income in a Contract if it is issued with a Guaranteed Minimum Withdrawal Benefit (GMWB). Therefore, you should consult with your tax adviser as to the potential tax consequences of a partial surrender if your Contract is issued with a GMWB. PARTIAL ANNUITIZATIONS (IF AVAILABLE WITH YOUR CONTRACT): At the present time the IRS has not approved the use of an exclusion ratio or exclusion amount when only part of your Contract Value is applied to a payment option. Currently, we will treat the application of less than your entire Contract Value under a Non- qualified Contract to a payment option (i.e. taking Annuity Payments) as a taxable withdrawal for federal income tax purposes (which may also be subject to the 10% penalty tax if you are under age 59 1/2). We will then treat the amount of the withdrawal (after any deductions for taxes) as the purchase price of an income annuity and tax report the income payments received under that annuity under the rules for variable income annuities. Consult your tax attorney prior to partially annuitizing your Contract. We will determine the excludable amount for each income payment under the Contract as a whole by using the rules applicable to variable income payments in general (i.e. by dividing your after-tax purchase price, as adjusted for any refund or guarantee feature, by the number of expected income payments from the appropriate IRS table). However, the IRS may determine that the excludable amount is different from our computation. DIVERSIFICATION REQUIREMENTS FOR VARIABLE ANNUITIES The Code requires that any non-qualified variable annuity contracts based on a Separate Account must meet specific diversification standards. Non-qualified variable annuity contracts shall not be treated as an annuity for federal income tax purposes if investments made in the account are not adequately diversified. Final tax regulations define how Separate Accounts must be diversified. The Company constantly monitors the diversification of investments and believes that its accounts are adequately diversified. The consequence of any failure to diversify is essentially the loss to the Contract Owner of tax-deferred treatment, requiring the current inclusion of a proportionate share of the income and gains from the Separate Account assets in the income of each Contract Owner. The Company intends to administer all contracts subject to this provision of law in a manner that will maintain adequate diversification. OWNERSHIP OF THE INVESTMENTS In certain circumstances, owners of variable annuity contracts have been considered to be the owners of the assets of the underlying Separate Account for federal income tax purposes due to their ability to exercise investment control 65 over those assets. When this is the case, the Contract Owners have been currently taxed on income and gains attributable to the Separate Account assets. There is little guidance in this area, and some features of the Contract, such as the number of funds available and the flexibility of the Contract Owner to allocate premium payments and transfer amounts among the funding options, have not been addressed in public rulings. While we believe that the Contract does not give the Contract Owner investment control over Separate Account assets, we reserve the right to modify the Contract as necessary to prevent a Contract Owner from being treated as the owner of the Separate Account assets supporting the Contract. TAXATION OF DEATH BENEFIT PROCEEDS Amounts may be distributed from a Non-qualified Contract because of the death of an owner or Annuitant. Generally, such amounts are includable in the income of the recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a full surrender of the Contract; or (ii) if distributed under a payment option, they are taxed in the same way as Annuity Payments. OTHER TAX CONSIDERATIONS TREATMENT OF CHARGES FOR OPTIONAL BENEFITS The Contract may provide one or more optional enhanced death benefits or other minimum guaranteed benefit that in some cases may exceed the greater of purchase price or the Contract Value. It is possible that the Internal Revenue Service may take the position that certain benefits or the charges for certain benefits such as guaranteed death benefits (including the Roll-up Death Benefit) and certain living benefits (e.g. Guaranteed Minimum Withdrawal Benefit) could be considered to be taxable each year as deemed distributions from the Contract to pay for non-annuity benefits. We currently treat these earnings and benefits as an intrinsic part of the Contract and not report them as taxable income until distributions are actually made. However, it is possible that this may change if we determine that this is required by the IRS. If so, the charges or benefits could also be subject to a 10% penalty tax if the taxpayer is under 59 1/2. You should consult with your tax adviser before selecting any rider or endorsement to the Contract. GUARANTEED MINIMUM WITHDRAWAL BENEFITS If you have purchased the Guaranteed Minimum Withdrawal Benefit Rider or the Guaranteed Minimum Withdrawal Benefit for Life Rider, where otherwise made available, note the following: The tax treatment of withdrawals under such a benefit is uncertain. It is conceivable that the amount of potential gain could be determined based on the remaining amounts guaranteed to be available for withdrawal at the time of the withdrawal if greater than the Contract Value (prior to surrender charges). This could result in a greater amount of taxable income in certain cases. In general, at the present time, the Company intends to tax report such withdrawals using the Contract Value rather than the remaining benefit to determine gain. However, in cases where the maximum permitted withdrawal in any year under any version of the GMWB exceeds the Contract Value, the portion of the withdrawal treated as taxable gain (not to exceed the amount of the withdrawal) should be measured as the difference between the maximum permitted withdrawal amount under the benefit and the remaining after-tax basis immediately preceding the withdrawal. In the event that the Contract Value goes to zero, and the Remaining Benefit Base is paid out in fixed installments or the Lifetime Withdrawal Benefit is paid for life, we will treat such payments as income annuity payments under the tax law and allow recovery of any remaining basis ratably over the expected number of payments. The Company reserves the right to change its tax reporting practices where it determines they are not in accordance with IRS guidance (whether formal or informal). PUERTO RICO TAX CONSIDERATIONS The Puerto Rico Internal Revenue Code of 1994 (the "1994 Code") taxes distributions from non-qualified annuity contracts differently than in the U.S. Distributions that are not in the form of an annuity (including partial surrenders and period certain payments) are treated under the 1994 Code first as a return of investment. Therefore, a substantial 66 portion of the amounts distributed generally will be excluded from gross income for Puerto Rico tax purposes until the cumulative amount paid exceeds your tax basis. The amount of income on annuity distributions (payable over your lifetime) is also calculated differently under the 1994 Code. Since Puerto Rico residents are also subject to U.S. income tax on all income other than income sourced to Puerto Rico and the Internal Revenue Service issued guidance in 2004 which indicated that the income from an annuity contract issued by a U.S. life insurer would be considered U.S. source income, the timing of recognition of income from an annuity contract could vary between the two jurisdictions. Although the 1994 Code provides a credit against the Puerto Rico income tax for U.S. income taxes paid, an individual may not get full credit because of the timing differences. You should consult with a personal tax adviser regarding the tax consequences of purchasing an annuity contract and/or any proposed distribution, particularly a partial distribution or election to annuitize. NON-RESIDENT ALIENS Distributions to non resident aliens ("NRAs") are subject to special and complex tax and withholding rules under the Code with respect to U.S. source income, some of which are based upon the particular facts and circumstances of the Contract Owner, the beneficiary and the transaction itself. As stated above, the IRS has taken the position that income from the Contract received by NRAs is considered U.S. source income. In addition, Annuity Payments to NRAs in many countries are exempt from U.S. tax (or subject to lower rates) based upon a tax treaty, provided that the Contract Owner complies with the applicable requirements. NRAs should seek guidance from a tax adviser regarding their personal situation. TAX CREDITS AND DEDUCTIONS The Company may be entitled to certain tax benefits related to the assets of the Separate Account. These tax benefits, which may include foreign tax credits and corporate dividend received deductions, are not passed back to the Separate Account or to Contract Owners since the Company is the owner of the assets from which the tax benefits are derived. OTHER INFORMATION - -------------------------------------------------------------------------------- THE INSURANCE COMPANY Please refer to your Contract to determine which Company issued your Contract. MetLife Insurance Company of Connecticut is a stock insurance company chartered in 1863 in Connecticut and continuously engaged in the insurance business since that time. It is licensed to conduct life insurance business in all states of the United States, the District of Columbia, Puerto Rico, Guam, the U.S. and British Virgin Islands and the Bahamas. The Company is a wholly-owned subsidiary of MetLife, Inc., a publicly-traded company. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. The Company's Home Office is located at One Cityplace, Hartford, Connecticut 06103-3415. Before December 7, 2007, certain of the Contracts were issued by MetLife Life and Annuity Company of Connecticut, a stock life insurance company chartered in 1973 in Connecticut. These Contracts were funded through Separate Account Fourteen, a separate account registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended. On December 7, 2007, MLACC, a wholly-owned subsidiary of the Company and an indirect, wholly-owned subsidiary of MetLife, Inc., merged with and into the Company. Upon consummation of the merger, MLACC's corporate existence ceased by operation of law, and the Company assumed legal ownership of all of the assets of MLACC, including Separate Account Fourteen and its assets. Pursuant to the merger, therefore, Separate Account Fourteen became a separate account of the Company. As a result of the merger, the Company also has become responsible for all of MLACC's liabilities and obligations, including those created under the Contract as initially issued by MLACC (formerly known as The Travelers Life and Annuity Company) and outstanding on the date of the merger. The Contract has thereby become a variable contract funded by a separate account of the Company, and each owner thereof has become a Contract Owner of the Company. 67 FINANCIAL STATEMENTS The financial statements for the Company and its Separate Account are located in the Statement of Additional Information. DISTRIBUTION OF VARIABLE ANNUITY CONTRACTS DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT. MetLife Insurance Company of Connecticut (the "Company") has appointed MetLife Investors Distribution Company ("MLIDC") to serve as the principal underwriter and distributor of the securities offered through this Prospectus, pursuant to the terms of a Distribution and Principal Underwriting Agreement. MLIDC, which is an affiliate of the Company, also acts as the principal underwriter and distributor of other variable annuity contracts and variable life insurance policies issued by the Company and its affiliated companies. The Company reimburses MLIDC for expenses MLIDC incurs in distributing the Contracts (e.g. commissions payable to retail broker-dealers who sell the Contracts). MLIDC does not retain any fees under the Contracts; however, MLIDC may receive 12b-1 fees from the Underlying Funds. MLIDC's principal executive offices are located at 5 Park Plaza, Suite 1900, Irvine, California 92614. MLIDC is registered as a broker-dealer with the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934, as well as the securities commissions in the states in which it operates, and is a member of the Financial Industry Regulatory Authority (FINRA). An investor brochure that includes information describing FINRA's Public Disclosure Program is available by calling FINRA's Public Disclosure Program hotline at 1- 800-289-9999, or by visiting FINRA's website at www.finra.org. MLIDC and the Company enter into selling agreements with affiliated and unaffiliated broker-dealers who are registered with the SEC and are members of FINRA, and with entities that may offer the Contracts but are exempt from registration. Applications for the Contract are solicited by registered representatives who are associated persons of such affiliated or unaffiliated broker-dealer firms. Such representatives act as appointed agents of the Company under applicable state insurance law and must be licensed to sell variable insurance products. The Company intends to offer the Contract in all jurisdictions where it is licensed to do business and where the Contract is approved. The Contracts are offered on a continuous basis. COMPENSATION. Broker-dealers who have selling agreements with MLIDC and the Company are paid compensation for the promotion and sale of the Contracts. Registered representatives who solicit sales of the Contract typically receive a portion of the compensation payable to the broker-dealer firm. The amount the registered representative receives depends on the agreement between the firm and the registered representative. This agreement may also provide for the payment of other types of cash and non-cash compensation and other benefits. A broker- dealer firm or registered representative of a firm may receive different compensation for selling one product over another and/or may be inclined to favor one product provider over another product provider due to differing compensation rates. We generally pay compensation as a percentage of purchase payments invested in the Contract. Alternatively, we may pay lower compensation on purchase payments but pay periodic asset-based compensation based on all or a portion of the Contract Value. The amount and timing of compensation may vary depending on the selling agreement but is not expected to exceed 7.50% of Purchase Payments (if up-front compensation is paid to registered representatives) and up to 1.50% annually of average Contract Value (if asset-based compensation is paid to registered representatives). The Company and MLIDC have also entered into preferred distribution arrangements with certain broker-dealer firms. These arrangements are sometimes called "shelf space" arrangements. Under these arrangements, the Company and MLIDC pay separate, additional compensation to the broker-dealer firm for services the broker-dealer provides in connection with the distribution of the Company's products. These services may include providing the Company with access to the distribution network of the broker-dealer, the hiring and training of the broker-dealer's sales personnel, the sponsoring of conferences and seminars by the broker-dealer, or general marketing services performed by the broker-dealer. The broker-dealer may also provide other services or incur other costs in connection with distributing the Company's products. These preferred distribution arrangements will not be offered to all broker- dealer firms and the terms of such arrangements may differ between broker-dealer firms. Compensation payable under such arrangements may be based on aggregate, net or anticipated sales of the Contracts, total assets attributable to sales of the Contract by registered representatives of the broker-dealer firm or based on the length of time that a Contract Owner has owned the 68 Contract. Any such compensation payable to a broker-dealer firm will be made by MLIDC or the Company out of their own assets and will not result in any additional direct charge to you. Such compensation may cause the broker-dealer firm and its registered representatives to favor the Company's products. The Company and MLIDC have entered into a preferred distribution arrangement with their affiliate Tower Square Securities, Inc. and with the unaffiliated broker- dealer firms identified in the Statement of Additional Information. The Company and MLIDC may enter into similar arrangements with their other affiliates MetLife Securities, Inc., Walnut Street Securities, Inc., and New England Securities Corporation. See the "Statement of Additional Information -- DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT" for a list of the broker-dealer firms that received such additional compensation during 2007, as well as the range of additional compensation paid. The Company and MLIDC have entered into selling agreements with certain broker- dealer firms that have an affiliate that acts as investment adviser or sub- adviser to one or more Underlying Funds that may be offered under the Contracts. These investment advisory firms include Fidelity Management & Research Company, Morgan Stanley Investment Advisers Inc., MetLife Investment Funds Management LLC, MetLife Advisers, LLC and Met Investors Advisory LLC. MetLife Investment Funds Management LLC, MetLife Advisers LLC and Met Investors Advisory LLC are affiliates of the Company. Registered representatives of broker-dealer firms with an affiliated company acting as an adviser or a sub-adviser may favor these Funds when offering the Contracts. SALE BY AFFILIATES OF THE COMPANY. The Company and MLIDC may offer the Contracts through retail broker-dealer firms that are affiliates of the Company, including Tower Square Securities, Inc., MetLife Securities, Inc. and/or Metropolitan Life Insurance Company, Walnut Street Securities, Inc. and New England Securities Corporation. The compensation paid to affiliated broker-dealer firms for sales of the Contracts is generally not expected to exceed, on a present value basis, the percentages described above. These broker-dealer firms pay their registered representatives all or a portion of the commissions received for their sales of Contracts; some firms may retain a portion of commissions. The amount the broker dealer firms pass on to their registered representatives is determined in accordance with their internal compensation programs. These programs may also include other types of cash compensation, such as bonuses, equity awards (such as stock options), training allowances, supplementary salary, financing arrangements, marketing support, medical and other insurance benefits, retirement benefits, and other benefits. For registered representatives of certain affiliates, the amount of this additional cash compensation is based primarily on the amount of proprietary products sold and serviced by the representative. Proprietary products are those issued by the Company or its affiliates. The managers who supervise these registered representatives may also be entitled to additional cash compensation based on the sale of proprietary products by their representatives. Because the additional cash compensation paid to these registered representatives and their managers is primarily based on sales of proprietary products, these registered representatives and their managers have an incentive to favor the sale of proprietary products over other products issued by non-affiliates. MetLife registered representatives receive cash payments for the products they sell and service based upon a 'gross dealer concession' model. The cash payment is equal to a percentage of the gross dealer concession. For MetLife registered representatives other than those in our MetLife Resources (MLR) Division, the percentage is determined by a formula that takes into consideration the amount of premiums and purchase payments applied to proprietary products that the registered representative sells and services. The percentage could be as high as 100%. (MLR registered representatives receive compensation based upon premiums and purchase payments applied to all products sold and serviced by the representative.) In addition, all MetLife registered representatives are entitled to the additional compensation described above based on sales of proprietary products. Because sales of proprietary products are a factor determining the percentage of gross dealer concession and/or the amount of additional compensation to which MetLife registered representatives are entitled, they have an incentive to favor the sale of proprietary products. In addition, because their sales managers' compensation is based on the sales made by the representatives they supervise, these sales managers also have an incentive to favor the sale of proprietary products. The Company's affiliates also offer their registered representatives and their managers non-cash compensation incentives, such as conferences, trips, prizes and awards. Other non-cash compensation payments may be made for other services that are not directly related to the sale of products. These payments may include support services in the form of recruitment and training of personnel, production of promotional materials and similar services. CONFORMITY WITH STATE AND FEDERAL LAWS The laws of the state in which we deliver a contract govern that Contract. Where a state has not approved a contract feature or funding option, it will not be available in that state. Any paid-up annuity, Cash Surrender Value or death 69 benefits that are available under the Contract are not less than the minimum benefits required by the statutes of the state in which we delivered the Contract. We reserve the right to make any changes, including retroactive changes, in the Contract to the extent that the change is required to meet the requirements of any law or regulation issued by any governmental agency to which the Company, the Contract or the Contract Owner is subject. VOTING RIGHTS The Company is the legal owner of the shares of the Underlying Funds. However, we believe that when an Underlying Fund solicits proxies in conjunction with a vote of shareholders we are required to obtain from you and from other owners instructions on how to vote those shares. We will vote all shares, including those we may own on our own behalf, and those where we have not received instructions from Contract Owners, in the same proportion as shares for which we received voting instructions. The effect of this proportional voting is that a small number of Contract Owners may control the outcome of a vote. Should we determine that we are no longer required to comply with the above, we will vote the shares in our own right. In certain limited circumstances, and when permitted by law, we may disregard voting instructions. If we do disregard voting instructions, a summary of that action and the reasons for such action would be included in the next annual report to Contract Owners. RESTRICTIONS ON FINANCIAL TRANSACTIONS Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to block a Contract Owner's ability to make certain transactions and thereby refuse to accept any request for transfers, withdrawals, surrenders, or death benefits, until the instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your Contract to government regulators. LEGAL PROCEEDINGS In the ordinary course of business, the Company, similar to other life insurance companies, is involved in lawsuits (including class action lawsuits), arbitrations and other legal proceedings. Also, from time to time, state and federal regulators or other officials conduct formal and informal examinations or undertake other actions dealing with various aspects of the financial services and insurance industries. In some legal proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. It is not possible to predict with certainty the ultimate outcome of any pending legal proceeding or regulatory action. However, the Company does not believe any such action or proceeding will have a material adverse effect upon the Separate Account or upon the ability of MLIDC to perform its contract with the Separate Account or of the Company to meet its obligations under the Contracts. 70 APPENDIX A - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT THIRTEEN FOR VARIABLE ANNUITIES ACCUMULATION UNIT VALUES (IN DOLLARS) The following Accumulation Unit Value information should be read in conjunction with the Separate Account's audited financial statement and notes, which are included in the Statement of Additional Information ("SAI"). The first table provides the AUV information for the MINIMUM Separate Account Charge available under the contract. The second table provides the AUV information for the MAXIMUM Separate Account Charge available under the contract. Please refer to the Fee Table section of this Prospectus for more information on Separate Account Charges. PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.265 1.349 -- 2006 1.211 1.265 7,513 2005 1.132 1.211 7,311 2004 1.080 1.132 3,111 2003 1.000 1.080 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.382 1.488 46,380 2006 1.264 1.382 48,065 2005 1.196 1.264 85,591 2004 1.069 1.196 15,835 2003 1.000 1.069 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.401 1.343 85,786 2006 1.214 1.401 83,831 2005 1.192 1.214 89,631 2004 1.090 1.192 70,039 2003 1.000 1.090 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.313 1.439 55,329 2006 1.226 1.313 47,601 2005 1.188 1.226 46,744 2004 1.082 1.188 24,145 2003 1.000 1.082 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.689 1.921 77,142 2006 1.412 1.689 80,926 2005 1.301 1.412 89,892 2004 1.114 1.301 49,294 2003 1.000 1.114 --
A-1 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.397 1.346 20,005 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.304 1.309 9,022 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.470 1.409 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.204 1.263 -- 2006 1.037 1.204 -- 2005 0.951 1.037 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.273 1.309 -- 2006 1.151 1.273 9,022 2005 1.135 1.151 9,022 2004 1.062 1.135 9,357 2003 1.000 1.062 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.362 1.409 -- 2006 1.248 1.362 19,791 2005 1.155 1.248 19,324 2004 1.078 1.155 14,090 2003 1.000 1.078 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.332 1.391 7,373 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.009 1.135 3,030 2006 1.000 1.009 3,034 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.039 1.075 55,778 2006 1.000 1.039 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.980 6,726 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.052 1.102 236,965 2006 1.000 1.052 241,077 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.006 1.015 -- 2005 0.993 1.006 -- 2004 0.998 0.993 17,295 2003 1.000 0.998 --
A-2 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.182 1.236 -- 2005 1.144 1.182 9,572 2004 1.090 1.144 10,010 2003 1.000 1.090 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.521 1.656 -- 2005 1.354 1.521 128,778 2004 1.156 1.354 60,486 2003 1.000 1.156 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.042 1.082 -- 2006 1.025 1.042 6,583 2005 1.023 1.025 6,583 2004 1.008 1.023 2,195 2003 1.000 1.008 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.999 1.125 -- 2005 1.002 0.999 11,625 2004 0.994 1.002 8,579 Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.108 1.180 -- 2005 1.085 1.108 30,806 2004 1.053 1.085 134,453 2003 1.000 1.053 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.054 1.092 6,602 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.254 1.314 66,958 2006 1.086 1.254 62,497 2005 1.020 1.086 835 Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.544 3.569 14,625 2006 1.906 2.544 15,731 2005 1.406 1.906 13,806 2004 1.202 1.406 9,129 2003 1.000 1.202 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.563 1.548 91,436 2006 1.299 1.563 90,567 2005 1.249 1.299 98,631 2004 1.093 1.249 61,277 2003 1.000 1.093 --
A-3 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.252 1.379 -- 2006 1.065 1.252 -- 2005 1.000 1.065 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.456 1.851 -- 2005 1.371 1.456 16,304 2004 1.177 1.371 16,467 2003 1.000 1.177 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.430 1.476 208,196 2006 1.247 1.430 186,270 2005 1.195 1.247 150,502 2004 1.094 1.195 32,526 2003 1.000 1.094 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.149 1.156 5,712 2006 1.041 1.149 -- 2005 1.027 1.041 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.209 1.258 44,360 2006 1.134 1.209 44,174 2005 1.132 1.134 86,595 2004 1.066 1.132 40,999 2003 1.000 1.066 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.224 1.268 -- 2006 1.085 1.224 -- 2005 1.015 1.085 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.183 1.232 -- 2006 1.066 1.183 -- 2005 0.991 1.066 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.145 1.192 54,781 2006 1.051 1.145 55,167 2005 0.976 1.051 24,040 Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.194 1.264 25,362 2006 1.112 1.194 20,634 2005 1.094 1.112 19,473 2004 1.044 1.094 -- 2003 1.000 1.044 --
A-4 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.843 2.056 32,534 2006 1.526 1.843 34,898 2005 1.345 1.526 22,250 2004 1.153 1.345 2,269 2003 1.000 1.153 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.591 1.651 96,361 2006 1.439 1.591 98,488 2005 1.357 1.439 130,153 2004 1.131 1.357 39,092 2003 1.000 1.131 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.183 1.260 305,331 2006 1.168 1.183 311,382 2005 1.096 1.168 243,595 2004 1.023 1.096 96,995 Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.236 1.782 9,524 2006 1.663 2.236 9,576 2005 1.470 1.663 24,728 2004 1.102 1.470 8,334 2003 1.000 1.102 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.176 1.391 -- 2006 1.107 1.176 55,114 2005 1.074 1.107 53,684 2004 1.050 1.074 8,266 Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.600 1.463 24,149 2006 1.423 1.600 23,254 2005 1.300 1.423 23,195 2004 1.101 1.300 19,409 2003 1.000 1.101 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.186 1.260 -- 2005 1.185 1.186 -- 2004 1.062 1.185 -- 2003 1.000 1.062 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.209 1.264 133,684 2006 1.155 1.209 136,220 2005 1.144 1.155 95,062 2004 1.056 1.144 15,869 2003 1.000 1.056 --
A-5 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.408 1.410 -- 2006 1.242 1.408 23,826 2005 1.205 1.242 25,021 2004 1.098 1.205 8,757 2003 1.000 1.098 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.75%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)...................................... 2007 0.987 1.048 -- 2006 1.000 0.987 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)......................................... 2007 1.037 1.102 -- 2006 1.000 1.037 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)..................... 2007 1.108 1.049 -- 2006 1.000 1.108 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03).................... 2007 0.995 1.077 -- 2006 1.000 0.995 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................ 2007 1.135 1.275 -- 2006 1.000 1.135 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07).......................................... 2007 1.047 1.001 -- LMPVET Capital and Income Subaccount (Class II) (4/07).......................................... 2007 1.090 1.085 -- LMPVET Fundamental Value Subaccount (Class I) (4/07).......................................... 2007 1.145 1.088 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.103 1.152 -- 2006 1.000 1.103 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.069 1.095 -- 2006 1.000 1.069 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03).......................................... 2007 1.025 1.057 -- 2006 1.000 1.025 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07)*...................................... 2007 1.035 1.072 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................ 2007 1.000 1.112 -- 2006 1.000 1.000 --
A-6
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70).......................................... 2007 1.019 1.041 -- 2006 1.000 1.019 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07).......................................... 2007 0.996 0.972 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70).......................................... 2007 1.044 1.079 -- 2006 1.000 1.044 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.000 1.004 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)......................... 2006 1.000 1.005 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................ 2006 1.000 1.034 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)......................................... 2007 1.006 1.034 -- 2006 1.000 1.006 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04).......................................... 2006 1.000 1.085 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)......................................... 2006 1.000 1.031 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.060 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05).......................................... 2007 1.101 1.140 -- 2006 1.000 1.101 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)......................................... 2007 1.182 1.638 -- 2006 1.000 1.182 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03).......................................... 2007 1.152 1.126 -- 2006 1.000 1.152 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)...................................... 2007 1.108 1.207 -- 2006 1.000 1.108 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.000 1.191 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.101 1.122 -- 2006 1.000 1.101 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05).......................................... 2007 1.075 1.068 -- 2006 1.000 1.075 -- Pioneer High Yield VCT Subaccount (Class II) (9/03).......................................... 2007 1.045 1.073 -- 2006 1.000 1.045 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05).................... 2007 1.071 1.096 -- 2006 1.000 1.071 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05)............................... 2007 1.061 1.092 -- 2006 1.000 1.061 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05)............................... 2007 1.050 1.080 -- 2006 1.000 1.050 -- Pioneer Independence VCT Subaccount (Class II) (11/03)......................................... 2007 1.055 1.103 -- 2006 1.000 1.055 -- Pioneer International Value VCT Subaccount (Class II) (1/04)...................................... 2007 1.123 1.237 -- 2006 1.000 1.123 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03).......................................... 2007 1.065 1.091 -- 2006 1.000 1.065 --
A-7
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04)............................... 2007 0.984 1.034 -- 2006 1.000 0.984 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)...................................... 2007 1.246 0.981 -- 2006 1.000 1.246 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04)............................... 2007 1.005 1.176 -- 2006 1.000 1.005 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03).......................................... 2007 1.036 0.936 -- 2006 1.000 1.036 -- Pioneer Small Company VCT Subaccount (Class II) (6/03).......................................... 2006 1.000 0.986 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03).......................................... 2007 1.029 1.063 -- 2006 1.000 1.029 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.082 1.072 -- 2006 1.000 1.082 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix C for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 05/01/2006, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Capital Appreciation Fund/VA was replaced by Met Investors Series Trust- Oppenheimer Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Global Securities Fund/VA was replaced by Metropolitan Series Fund, Inc.- Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/24/2006, Pioneer Variable Contracts Trust-Pioneer Small Company VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer AmPac Growth VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Oak Ridge Large Cap Growth VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Balanced VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Ibbotson Moderate Allocation VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Europe VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer International Value VCT Portfolio and is no longer available as a funding option. A-8 Effective on or about 04/30/2007, AIM Variable Insurance Funds-AIM V.I. Capital Appreciation Fund was replaced by Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Total Return Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Capital and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II, Inc.-Legg Mason Partners Variable Aggressive Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer Value VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Fund VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer America Income VCT Portfolio merged into Pioneer Variable Contracts Trust- Pioneer Bond VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer Equity Opportunity VCT Portfolio liquidated its assets and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust -- Pioneer Small and Mid Cap Growth VCT Portfolio liquidated its assets and is no longer available as a funding option. A-9 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX B - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT FOURTEEN FOR VARIABLE ANNUITIES ACCUMULATION UNIT VALUES (IN DOLLARS) The following Accumulation Unit Value information should be read in conjunction with the Separate Account's audited financial statement and notes, which are included in the Statement of Additional Information ("SAI"). The first table provides the AUV information for the MINIMUM Separate Account Charge available under the contract. The second table provides the AUV information for the MAXIMUM Separate Account Charge available under the contract. Please refer to the Fee Table section of this Prospectus for more information on Separate Account Charges.. PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (6/03)......................................... 2007 1.265 1.349 -- 2006 1.211 1.265 156,984 2005 1.132 1.211 159,202 2004 1.080 1.132 120,083 2003 1.000 1.080 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (6/03)............................................. 2007 1.382 1.488 44,092 2006 1.264 1.382 43,911 2005 1.196 1.264 42,936 2004 1.069 1.196 35,176 2003 1.000 1.069 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.401 1.343 152,609 2006 1.214 1.401 152,828 2005 1.192 1.214 159,956 2004 1.090 1.192 154,714 2003 1.000 1.090 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (6/03)........................ 2007 1.313 1.439 139,630 2006 1.226 1.313 128,731 2005 1.188 1.226 130,992 2004 1.082 1.188 99,721 2003 1.000 1.082 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (6/03)................................... 2007 1.689 1.921 152,976 2006 1.412 1.689 161,633 2005 1.301 1.412 184,526 2004 1.114 1.301 129,147 2003 1.000 1.114 --
B-1 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.397 1.346 101,078 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.304 1.309 1,067 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.470 1.409 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (11/05)....... 2007 1.204 1.263 -- 2006 1.037 1.204 -- 2005 1.018 1.037 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.273 1.309 -- 2006 1.151 1.273 1,038 2005 1.135 1.151 1,015 2004 1.062 1.135 971 2003 1.000 1.062 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (7/03)............................................. 2007 1.362 1.409 -- 2006 1.248 1.362 116,647 2005 1.155 1.248 119,967 2004 1.078 1.155 81,090 2003 1.000 1.078 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.332 1.391 154,510 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.009 1.135 58,297 2006 1.000 1.009 58,168 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.039 1.075 281,143 2006 1.000 1.039 35,478 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.980 5,616 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.052 1.102 49,889 2006 1.000 1.052 51,157 Money Market Portfolio Money Market Subaccount (6/03)..................... 2006 1.006 1.015 -- 2005 0.993 1.006 34,035 2004 0.998 0.993 30,405 2003 1.000 0.998 --
B-2 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.182 1.236 -- 2005 1.144 1.182 46,272 2004 1.090 1.144 37,628 2003 1.000 1.090 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (8/03)............................ 2006 1.521 1.656 -- 2005 1.354 1.521 33,070 2004 1.156 1.354 33,598 2003 1.000 1.156 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (7/03)............................................. 2007 1.042 1.082 -- 2006 1.025 1.042 213,116 2005 1.023 1.025 215,610 2004 1.008 1.023 215,877 2003 1.000 1.008 -- Pioneer AmPac Growth VCT Subaccount (Class II) (4/04)............................................. 2006 0.999 1.125 -- 2005 1.002 0.999 -- 2004 1.027 1.002 -- Pioneer Balanced VCT Subaccount (Class II) (6/03).. 2006 1.108 1.180 -- 2005 1.085 1.108 293,225 2004 1.053 1.085 293,506 2003 1.000 1.053 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.092 210,980 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.254 1.314 18,761 2006 1.086 1.254 16,914 2005 1.006 1.086 12,608 Pioneer Emerging Markets VCT Subaccount (Class II) (6/03)............................................. 2007 2.544 3.569 62,542 2006 1.906 2.544 101,284 2005 1.406 1.906 122,512 2004 1.202 1.406 97,075 2003 1.000 1.202 -- Pioneer Equity Income VCT Subaccount (Class II) (6/03)............................................. 2007 1.563 1.548 177,714 2006 1.299 1.563 178,661 2005 1.249 1.299 187,245 2004 1.093 1.249 166,783 2003 1.000 1.093 --
B-3 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.252 1.379 -- 2006 1.065 1.252 -- 2005 1.000 1.065 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.456 1.851 -- 2005 1.371 1.456 -- 2004 1.177 1.371 -- 2003 1.000 1.177 -- Pioneer Fund VCT Subaccount (Class II) (6/03)...... 2007 1.430 1.476 517,102 2006 1.247 1.430 306,604 2005 1.195 1.247 334,539 2004 1.094 1.195 209,976 2003 1.000 1.094 -- Pioneer Global High Yield VCT Subaccount (Class II) (9/05)............................................. 2007 1.149 1.156 2,375 2006 1.041 1.149 -- 2005 1.035 1.041 -- Pioneer High Yield VCT Subaccount (Class II) (6/03)............................................. 2007 1.209 1.258 159,091 2006 1.134 1.209 158,768 2005 1.132 1.134 163,155 2004 1.066 1.132 83,301 2003 1.000 1.066 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (3/05)....................... 2007 1.224 1.268 -- 2006 1.085 1.224 -- 2005 0.987 1.085 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (7/05).................................. 2007 1.183 1.232 7,408 2006 1.066 1.183 -- 2005 1.019 1.066 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.145 1.192 294,365 2006 1.051 1.145 297,075 2005 0.999 1.051 -- Pioneer Independence VCT Subaccount (Class II) (7/03)............................................. 2007 1.194 1.264 67,526 2006 1.112 1.194 67,573 2005 1.094 1.112 64,716 2004 1.044 1.094 57,516 2003 1.000 1.044 --
B-4 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer International Value VCT Subaccount (Class II) (7/03)......................................... 2007 1.843 2.056 16,418 2006 1.526 1.843 16,617 2005 1.345 1.526 17,832 2004 1.153 1.345 11,032 2003 1.000 1.153 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (6/03)............................................. 2007 1.591 1.651 102,956 2006 1.439 1.591 104,629 2005 1.357 1.439 105,882 2004 1.131 1.357 92,801 2003 1.000 1.131 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (4/04).................................. 2007 1.183 1.260 152,932 2006 1.168 1.183 150,726 2005 1.096 1.168 151,766 2004 1.039 1.096 55,611 Pioneer Real Estate Shares VCT Subaccount (Class II) (7/03)......................................... 2007 2.236 1.782 5,206 2006 1.663 2.236 5,161 2005 1.470 1.663 5,103 2004 1.102 1.470 4,831 2003 1.000 1.102 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (3/04).................................. 2007 1.176 1.391 -- 2006 1.107 1.176 140,783 2005 1.074 1.107 151,119 2004 0.990 1.074 56,059 Pioneer Small Cap Value VCT Subaccount (Class II) (8/03)............................................. 2007 1.600 1.463 42,742 2006 1.423 1.600 42,446 2005 1.300 1.423 42,418 2004 1.101 1.300 35,210 2003 1.000 1.101 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.186 1.260 -- 2005 1.185 1.186 -- 2004 1.062 1.185 -- 2003 1.000 1.062 -- Pioneer Strategic Income VCT Subaccount (Class II) (6/03)............................................. 2007 1.209 1.264 285,927 2006 1.155 1.209 278,919 2005 1.144 1.155 276,607 2004 1.056 1.144 185,891 2003 1.000 1.056 --
B-5 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Value VCT Subaccount (Class II) (7/03)..... 2007 1.408 1.410 -- 2006 1.242 1.408 213,535 2005 1.205 1.242 228,645 2004 1.098 1.205 160,295 2003 1.000 1.098 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.75%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (6/03)......................................... 2007 0.987 1.048 -- 2006 1.000 0.987 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (6/03)............................................. 2007 1.037 1.102 -- 2006 1.000 1.037 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.108 1.049 -- 2006 1.000 1.108 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (6/03)........................ 2007 0.995 1.077 -- 2006 1.000 0.995 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (6/03)................................... 2007 1.135 1.275 -- 2006 1.000 1.135 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.047 1.001 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.090 1.085 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.145 1.088 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (11/05)....... 2007 1.103 1.152 -- 2006 1.000 1.103 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.069 1.095 -- 2006 1.000 1.069 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (7/03)............................................. 2007 1.025 1.057 -- 2006 1.000 1.025 --
B-6 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07)*......................................... 2007 1.035 1.072 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.000 1.112 -- 2006 1.000 1.000 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.019 1.041 -- 2006 1.000 1.019 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.972 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.044 1.079 -- 2006 1.000 1.044 -- Money Market Portfolio Money Market Subaccount (6/03)..................... 2006 1.000 1.004 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.000 1.005 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (8/03)............................ 2006 1.000 1.034 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (7/03)............................................. 2007 1.006 1.034 -- 2006 1.000 1.006 -- Pioneer AmPac Growth VCT Subaccount (Class II) (4/04)............................................. 2006 1.000 1.085 -- Pioneer Balanced VCT Subaccount (Class II) (6/03).. 2006 1.000 1.031 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.101 1.140 -- 2006 1.000 1.101 -- Pioneer Emerging Markets VCT Subaccount (Class II) (6/03)............................................. 2007 1.182 1.638 -- 2006 1.000 1.182 -- Pioneer Equity Income VCT Subaccount (Class II) (6/03)............................................. 2007 1.152 1.126 -- 2006 1.000 1.152 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.108 1.207 -- 2006 1.000 1.108 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.000 1.191 --
B-7 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Fund VCT Subaccount (Class II) (6/03)...... 2007 1.101 1.122 -- 2006 1.000 1.101 -- Pioneer Global High Yield VCT Subaccount (Class II) (9/05)............................................. 2007 1.075 1.068 -- 2006 1.000 1.075 -- Pioneer High Yield VCT Subaccount (Class II) (6/03)............................................. 2007 1.045 1.073 -- 2006 1.000 1.045 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (3/05)....................... 2007 1.071 1.096 -- 2006 1.000 1.071 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (7/05).................................. 2007 1.061 1.092 29,183 2006 1.000 1.061 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.050 1.080 -- 2006 1.000 1.050 -- Pioneer Independence VCT Subaccount (Class II) (7/03)............................................. 2007 1.055 1.103 -- 2006 1.000 1.055 -- Pioneer International Value VCT Subaccount (Class II) (7/03)......................................... 2007 1.123 1.237 -- 2006 1.000 1.123 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (6/03)............................................. 2007 1.065 1.091 -- 2006 1.000 1.065 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (4/04).................................. 2007 0.984 1.034 -- 2006 1.000 0.984 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (7/03)...................................... 2007 1.246 0.981 -- 2006 1.000 1.246 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (3/04)............................... 2007 1.005 1.176 -- 2006 1.000 1.005 -- Pioneer Small Cap Value VCT Subaccount (Class II) (8/03).......................................... 2007 1.036 0.936 -- 2006 1.000 1.036 -- Pioneer Small Company VCT Subaccount (Class II) (6/03).......................................... 2006 1.000 0.986 -- Pioneer Strategic Income VCT Subaccount (Class II) (6/03).......................................... 2007 1.029 1.063 -- 2006 1.000 1.029 -- Pioneer Value VCT Subaccount (Class II) (7/03)..... 2007 1.082 1.072 -- 2006 1.000 1.082 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. B-8 Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix C for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 05/01/2006, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Capital Appreciation Fund/VA was replaced by Met Investors Series Trust- Oppenheimer Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Global Securities Fund/VA was replaced by Metropolitan Series Fund, Inc.- Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/24/2006, Pioneer Variable Contracts Trust-Pioneer Small Company VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer AmPac Growth VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Oak Ridge Large Cap Growth VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Balanced VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Ibbotson Moderate Allocation VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Europe VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer International Value VCT Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, AIM Variable Insurance Funds-AIM V.I. Capital Appreciation Fund was replaced by Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Total Return Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Capital and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II, Inc.-Legg Mason Partners Variable Aggressive Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer Value VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Fund VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer America Income VCT Portfolio merged into Pioneer Variable Contracts Trust- Pioneer Bond VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer Equity Opportunity VCT Portfolio liquidated its assets and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust -- Pioneer Small and Mid Cap Growth VCT Portfolio liquidated its assets and is no longer available as a funding option. B-9 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX C - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION REGARDING UNDERLYING FUNDS Certain Underlying Funds were subject to a merger, substitution, liquidation or other change. The chart below identifies the former name and new name of each of these Underlying Funds, and the former name and new name of the trust of which the Underlying Fund is a part. UNDERLYING FUND NAME CHANGE
FORMER NAME NEW NAME - --------------------------------------------- --------------------------------------------- PIONEER VARIABLE CONTRACTS TRUST PIONEER VARIABLE CONTRACTS TRUST Pioneer Growth Shares VCT Portfolio Pioneer Independence VCT Portfolio
UNDERLYING FUND MERGERS/REORGANIZATIONS The following former Underlying Funds were merged with or reorganized into the new Underlying Funds and /or were reorganized into a new trust.
FORMER UNDERLYING FUND/TRUST NEW UNDERLYING FUND/TRUST - --------------------------------------------- --------------------------------------------- PIONEER VARIABLE CONTRACTS TRUST PIONEER VARIABLE CONTRACTS TRUST Pioneer America Income VCT Portfolio Pioneer Bond VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST PIONEER VARIABLE CONTRACTS TRUST Pioneer Value VCT Portfolio Pioneer Fund VCT Portfolio
UNDERLYING FUND SUBSTITUTION The following new Underlying Fund was substituted for the former Underlying Fund.
FORMER UNDERLYING FUND NEW UNDERLYING FUND - --------------------------------------------- --------------------------------------------- AIM VARIABLE INSURANCE FUNDS MET INVESTORS SERIES TRUST AIM V.I. Mid Cap Core Equity Portfolio Lazard Mid Cap Portfolio
UNDERLYING FUND LIQUIDATIONS The following Underlying Funds were liquidated and are no longer available in your contract. PIONEER VARIABLE CONTRACTS TRUST Pioneer Equity Opportunity Portfolio PIONEER VARIABLE CONTRACTS TRUST Pioneer Small and Mid Cap Portfolio
C-1 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX D - -------------------------------------------------------------------------------- THE FIXED ACCOUNT The Fixed Account is part of the Company's general account assets. These general account assets include all assets of the Company other than those held in the Separate Accounts sponsored by the Company or its affiliates. The staff of the SEC does not generally review the disclosure in the prospectus relating to the Fixed Account. Disclosure regarding the Fixed Account and the general account may, however, be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in the prospectus. Under the Fixed Account, the Company assumes the risk of investment gain or loss, guarantees a specified interest rate, and guarantees a specified periodic Annuity Payment. The investment gain or loss of the Separate Account or any of the funding options does not affect the Fixed Account Contract Value, or the dollar amount of fixed Annuity Payments made under any payout option. We guarantee that, at any time, the Fixed Account Contract Value will not be less than the amount of the Purchase Payments allocated to the Fixed Account, plus interest credited as described below, less any applicable premium taxes or prior withdrawals. Purchase Payments allocated to the Fixed Account and any transfers made to the Fixed Account become part of the Company's general account, which supports insurance and annuity obligations. Where permitted by state law, we reserve the right to restrict Purchase Payments into the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified in your Contract. The general account and any interest therein are not registered under, or subject to the provisions of, the Securities Act of 1933 or Investment Company Act of 1940. We will invest the assets of the Fixed Account at our discretion. Investment income from such Fixed Account assets will be allocated to us and to the Contracts participating in the Fixed Account. Investment income from the Fixed Account allocated to us includes compensation for mortality and expense risks borne by us in connection with Fixed Account Contracts. The amount of such investment income allocated to the Contracts will vary from year to year in our sole discretion at such rate or rates as we prospectively declare from time to time. We guarantee the initial rate for any allocations into the Fixed Account for one year from the date of such allocation. We guarantee subsequent renewal rates for the calendar quarter. We also guarantee that for the life of the Contract we will credit interest at a rate not less than the minimum interest rate allowed by state law. We reserve the right to change the rate subject to applicable state law. We will determine any interest we credit to amounts allocated to the Fixed Account in excess of the minimum guaranteed rate in our sole discretion. You assume the risk that interest credited to the Fixed Account may not exceed the minimum guaranteed rate for any given year. We have no specific formula for determining the interest rate. Some factors we may consider are regulatory and tax requirements, general economic trends and competitive factors. TRANSFERS You may make transfers from the Fixed Account to any available Variable Funding Option(s) twice a year during the 30 days following the semiannual anniversary of the Contract Date. We limit transfers to an amount of up to 15% of the Fixed Account Contract Value on the semiannual Contract Date anniversary. (This restriction does not apply to transfers under the Dollar Cost Averaging Program.) Amounts previously transferred from the Fixed Account to Variable Funding Options may not be transferred back to the Fixed Account for a period of at least six months from the date of transfer. We reserve the right to waive either of these restrictions. Where permitted by state law, we reserve the right to restrict transfers into the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified in your Contract. Automated transfers from the Fixed Account to any of the Variable Funding Options may begin at any time. Automated transfers from the Fixed Account may not deplete your Fixed Account value in a period of less than twelve months from your enrollment in the Dollar Cost Averaging Program. D-1 THIS PAGE INTENTIONALLY LEFT BLANK. APPENDIX E - -------------------------------------------------------------------------------- WAIVER OF WITHDRAWAL CHARGE FOR NURSING HOME CONFINEMENT (AVAILABLE ONLY IF THE OWNER IS AGE 70 OR YOUNGER ON THE DATE THE CONTRACT IS ISSUED.) If, after the first Contract Year and before the Maturity Date, and you begin confinement in an eligible nursing home, you may surrender or make withdrawal, subject to the maximum withdrawal amount described below, without incurring a withdrawal charge. In order for the Company to waive the withdrawal charge, the withdrawal must be made during continued confinement in an eligible nursing home after the qualifying period has been satisfied, or within sixty (60) days after such confinement ends. The qualifying period is confinement in an eligible nursing home for ninety (90) consecutive days. We will require proof of confinement in a form satisfactory to us, which may include certification by a licensed physician that such confinement is medically necessary. An eligible nursing home is defined as an institution or special nursing unit of a hospital which: (a) is Medicare approved as a provider of skilled nursing care services; and (b) is not, other than in name only, an acute care hospital, a home for the aged, a retirement home, a rest home, a community living center, or a place mainly for the treatment of alcoholism. OR Meets all of the following standards: (a) is licensed as a nursing care facility by the state in which it is licensed; (b) is either a freestanding facility or a distinct part of another facility such as a ward, wing, unit or swing-bed of a hospital or other facility; (c) provides nursing care to individuals who are not able to care for themselves and who require nursing care; (d) provides, as a primary function, nursing care and room and board; and charges for these services; (e) provides care under the supervision of a licensed physician, registered nurse (RN) or licensed practical nurse (LPN); (f) may provide care by a licensed physical, respiratory, occupational or speech therapist; and (g) is not, other than in name only, an acute care hospital, a home for the aged, a retirement home, a rest home, a community living center, or a place mainly for the treatment of alcoholism. We will not waive withdrawal charges if confinement is due to one or more of the following causes: (a) mental, nervous, emotional or personality disorder without demonstrable organic disease, including, but not limited to, neurosis, psychoneurosis, psychopathy or psychosis (b) the voluntary taking or injection of drugs, unless prescribed or administered by a licensed physician (c) the voluntary taking of any drugs prescribed by a licensed physician and intentionally not taken as prescribed (d) sensitivity to drugs voluntarily taken, unless prescribed by a physician (e) drug addiction, unless addiction results from the voluntary taking of drugs prescribed by a licensed physician, or the involuntary taking of drugs. FILING A CLAIM: You must provide the Company with written notice of a claim during continued confinement after the 90-day qualifying period, or within sixty days after such confinement ends. E-1 The maximum withdrawal amount for which we will waive the withdrawal charge is the Contract Value on the next valuation date following written proof of claim, less any Purchase Payments made within a one-year period before confinement in an eligible nursing home begins, less any Purchase Payment made on or after the Annuitant's 71st birthday. We will pay any withdrawal requested under the scope of this waiver as soon as we receive proper written proof of your claim, and we will pay the withdrawal in a lump sum. You should consult with your tax adviser regarding the tax impact of any withdrawals taken from your Contract. E-2 APPENDIX F - -------------------------------------------------------------------------------- CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION The Statement of Additional Information contains more specific information and financial statements relating to the Separate Account and MetLife Insurance Company of Connecticut. A list of the contents of the Statement of Additional Information is set forth below: The Insurance Company Principal Underwriter Distribution and Principal Underwriting Agreement Valuation of Assets Federal Tax Considerations Independent Registered Public Accounting Firm Condensed Financial Information Financial Statements - -------------------------------------------------------------------------------- Copies of the Statement of Additional Information dated April 28, 2008 are available without charge. To request a copy, please clip this coupon on the line above, enter your name and address in the spaces provided below, and mail to MetLife Insurance Company of Connecticut, P.O. Box 10366, Des Moines, IA 50306- 0366. For the MetLife Insurance Company of Connecticut Statement of Additional Information please request MIC-Book-72-73-87. For the Statement of Additional Information for the contracts issued by the former MetLife Life and Annuity Company of Connecticut please request MLAC-Book-72-73-87. Name: ------------------------------------------------- Address: ---------------------------------------------- CHECK BOX: [ ] MIC-Book-72-73-87 [ ] MLAC-Book-72-73-87 F-1 PIONEER ANNUISTAR ANNUITY PORTFOLIO ARCHITECT II PIONEER ANNUISTAR VALUE STATEMENT OF ADDITIONAL INFORMATION DATED OCTOBER 13, 2008 FOR METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES ISSUED BY METLIFE INSURANCE COMPANY OF CONNECTICUT This Statement of Additional Information ("SAI") contains information in addition to the information described in the Prospectus for the variable annuity contracts (the "Contracts") offered by MetLife Insurance Company of Connecticut (the "Company", "we" or "our"). This SAI is not a prospectus but relates to, and should be read in conjunction with the Prospectus dated April 28, 2008. A copy of the Individual Variable Annuity Contract Prospectus may be obtained by writing to MetLife Insurance Company of Connecticut, Annuity Investor Services, P.O. Box 103666, Des Moines, IA 50306-0366 or by accessing the Securities and Exchange Commission's website at http://www.sec.gov. TABLE OF CONTENTS
PAGE ---- THE INSURANCE COMPANY.......................................................... 2 PRINCIPAL UNDERWRITER.......................................................... 2 DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT.............................. 2 VALUATION OF ASSETS............................................................ 4 FEDERAL TAX CONSIDERATIONS..................................................... 5 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.................................. 8 CONDENSED FINANCIAL INFORMATION--Pioneer AnnuiStar............................. 9 CONDENSED FINANCIAL INFORMATION--Portfolio Architect II........................ 53 CONDENSED FINANCIAL INFORMATION--Pioneer AnnuiStar Value....................... 206 FINANCIAL STATEMENTS........................................................... 1
THE INSURANCE COMPANY MetLife Insurance Company of Connecticut is a stock insurance company chartered in 1863 in Connecticut and continuously engaged in the insurance business since that time. Prior to May 1, 2006, the Company was known as The Travelers Insurance Company. The Company is licensed to conduct life insurance business in all states of the United States, the District of Columbia, Puerto Rico, Guam, the U.S. and British Virgin Islands and the Bahamas. The Company is a wholly- owned subsidiary of MetLife, Inc., a publicly traded company. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. The Company's Home Office is located at One Cityplace, Hartford, Connecticut 06103- 3415. STATE REGULATION. The Company is subject to the laws of the state of Connecticut governing insurance companies and to regulation by the Insurance Commissioner of the state of Connecticut (the "Commissioner"). An annual statement covering the operations of the Company for the preceding year, as well as its financial condition as of December 31 of such year, must be filed with the Commissioner in a prescribed format on or before March 1 of each year. The Company's books and assets are subject to review or examination by the Commissioner or his agents at all times, and a full examination of its operations is conducted at least once every four years. The Company is also subject to the insurance laws and regulations of all other states in which it is licensed to operate. However, the insurance departments of each of these states generally apply the laws of the home state (jurisdiction of domicile) in determining the field of permissible investments. THE SEPARATE ACCOUNT. Effective October 13, 2008, the Company combined MetLife of CT Separate Account Thirteen for Variable Annuities (the "Former Separate Account") with and into MetLife of CT Separate Account Eleven for Variable Annuities (the "Separate Account"). The Separate Account meets the definition of a separate account under the federal securities laws, and complies with the provisions of the 1940 Act. Additionally, the operations of the Separate Account are subject to the provisions of Section 38a-433 of the Connecticut General Statutes, which authorizes the Commissioner to adopt regulations under it. Section 38a-433 contains no restrictions on the investments of the Separate Account, and the Commissioner has adopted no regulations under the Section that affect the Separate Account. The Company holds title to the assets of the Separate Account. The assets are kept physically segregated and are held separate and apart from the Company's general corporate assets. Records are maintained of all purchases and redemptions of the Underlying Funds held in each of the Variable Funding Options. PRINCIPAL UNDERWRITER MetLife Investors Distribution Company ("MLIDC") serves as principal underwriter for the Separate Account and the Contracts. The offering is continuous. MLIDC's principal executive offices are located at 5 Park Plaza, Suite 1900, Irvine, CA 92614. MLIDC is affiliated with the Company and the Separate Account. DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT Information about the distribution of the Contracts is contained in the prospectus (see "Other Information -- Distribution of the Variable Annuity Contracts"). Additional information is provided below. Under the terms of the Distribution and Principal Underwriting Agreement among the Separate Account, MLIDC and the Company, MLIDC acts as agent for the distribution of the Contracts and as principal underwriter for the Contracts. The Company reimburses MLIDC for certain sales and overhead expenses connected with sales functions. 2 The following table shows the amount of commissions paid to and the amount of commissions retained by the Distributor and Principal Underwriter over the past three years. UNDERWRITING COMMISSIONS
UNDERWRITING COMMISSIONS PAID AMOUNT OF UNDERWRITING TO THE DISTRIBUTOR BY THE COMMISSIONS RETAINED BY THE YEAR COMPANY DISTRIBUTOR - -------------------------------- -------------------------------- -------------------------------- 2007............................ $128,229,602 $0 2006............................ $ 92,981,366 $0 2005............................ $135,616,995 $0
The Company and MLIDC have also entered into preferred distribution arrangements with certain broker-dealer firms. These arrangements are sometimes called "shelf space" arrangements. Under these arrangements, the Company and MLIDC pay separate, additional compensation to the broker-dealer firms for services the broker-dealer firms provide in connection with the distribution of the Company's products. These services may include providing the Company with access to the distribution network of the broker-dealer firms, the hiring and training of the broker-dealer firms' sales personnel, the sponsoring of conferences and seminars by the broker-dealer firms, or general marketing services performed by the broker-dealer firms. The broker-dealer firms may also provide other services or incur other costs in connection with distributing the Company's products. These preferred distribution arrangements will not be offered to all broker- dealer firms and the terms of such arrangements may differ between broker-dealer firms. Compensation payable under such arrangements may be based on aggregate, net or anticipated sales of the Contract, total assets attributable to sales of the Contract by registered representatives of the broker-dealer firms or based on the length of time that a Contract owner has owned the Contract. Any such compensation payable to a broker-dealer firm will be made by MLIDC or the Company out of their own assets and will not result in any additional direct charge to you. Such compensation may cause the broker-dealer firms and their registered representatives to favor the Company's products. The amount of additional compensation (non-commission amounts) paid to selected broker-dealer firms during 2007 ranged from $86,518 to $5,658,714. The amount of commissions paid to selected broker-dealer firms during 2007 ranged from $91,352 to $10,077,903. The amount of total compensation (includes non-commission as well as commission amounts) paid to selected broker-dealer firms during 2007 ranged from $433,549 to $10,536,736. The following list sets forth the names of broker-dealer firms that have entered into preferred distribution arrangements with the Company and MLIDC under which the broker-dealer firms received additional compensation in 2007 in connection with the sale of our variable annuity contracts, variable life policies and other insurance products (including the Contracts). The broker-dealer firms are listed in alphabetical order: Citicorp Investment Services Citigroup Global Markets Inc. (d/b/a Smith Barney) DWS Scudder Distributors, Inc. Morgan Stanley DW, Inc. PFS Investments, Inc. (d/b/a Primerica) Pioneer Funds Distributor, Inc. There are other broker-dealer firms who receive compensation for servicing our contracts, and the account value of the contracts or the amount of added purchase payments received may be included in determining their additional compensation, if any. REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE. We may reduce or eliminate the withdrawal charge under the Contract when certain sales or administration of the Contract result in savings or reduced expenses and/or risks. We will not reduce or eliminate the withdrawal charge where such reduction or elimination would be unfairly discriminatory to any person. 3 VALUATION OF ASSETS FUNDING OPTIONS. The value of the assets of each Funding Option is determined at 4:00 p.m. eastern time on each business day, unless we need to close earlier due to an emergency. A business day is any day the New York Stock Exchange is open. It is expected that the Exchange will be closed on Saturdays and Sundays and on the observed holidays of New Year's Day, Martin Luther King, Jr. Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Each security traded on a national securities exchange is valued at the last reported sale price on the business day. If there has been no sale on that day, then the value of the security is taken to be the mean between the reported bid and asked prices on the business day or on the basis of quotations received from a reputable broker or any other recognized source. THE CONTRACT VALUE. The value of an Accumulation Unit on any business day is determined by multiplying the value on the preceding business day by the net investment factor for the valuation period just ended. The net investment factor is used to measure the investment performance of a Funding Option from one valuation period to the next. The net investment factor for a Funding Option for any valuation period is equal to the sum of 1.000000 plus the net investment rate (the gross investment rate less any applicable Funding Option deductions during the valuation period relating to the mortality and expense risk charge and the administrative expense charge). The gross investment rate of a Funding Option is equal to (a) minus (b), divided by (c) where: (a) = investment income plus capital gains and losses (whether realized or unrealized); (b) = any deduction for applicable taxes (presently zero); and (c) = the value of the assets of the funding option at the beginning of the valuation period. The gross investment rate may be either positive or negative. A Funding Option's investment income includes any distribution whose ex-dividend date occurs during the valuation period. ACCUMULATION UNIT VALUE. The value of the Accumulation Unit for each Funding Option was initially established at $1.00. The value of an Accumulation Unit on any business day is determined by multiplying the value on the preceding business day by the net investment factor for the valuation period just ended. The net investment factor is calculated for each Funding Option and takes into account the investment performance, expenses and the deduction of certain expenses. ANNUITY UNIT VALUE. The initial Annuity Unit value applicable to each Funding Option was established at $1.00. An Annuity Unit value as of any business day is equal to (a) the value of the Annuity Unit on the preceding business day, multiplied by (b) the corresponding net investment factor for the business day just ended, divided by (c) the assumed net investment factor for the valuation period. (For example, the assumed net investment factor based on an annual assumed net investment rate of 3.0% for a valuation period of one day is 1.000081 and, for a period of two days, is 1.000081 x 1.000081.) CALCULATION OF MONEY MARKET YIELD From time to time, we may quote in advertisements and sales literature the adjusted and unadjusted effective yield for a money market Subaccount for a 7- day period, as described below. On a Contract-specific basis, the effective yield is computed at each month-end according to the following formula: Effective Yield = ((Base Return + 1) to the power of (365 / 7)) -- 1 Where: Base Return = (AUV Change -- Contract Charge Adjustment) / Prior AUV. AUV Change = Current AUV -- Prior AUV. Contract Charge Adjustment = Average AUV * Period Charge. Average AUV = (Current AUV + Prior AUV) / 2. Period Charge = Annual Contract Fee * (7/365). Prior AUV = Unit value as of 7 days prior. 4 Current AUV = Unit value as of the reporting period (last day of the month). We may also quote the effective yield of a money market Subaccount for the same 7-day period, determined on an unadjusted basis (which does not deduct Contract- level charges), according to the same formula but where: Base Return = AUV Change / Prior AUV Because of the charges and deductions imposed under the Contract, the yield for the Subaccount will be lower than the yield for the corresponding Underlying Fund. The yields on amounts held in the Subaccount normally will fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The actual yield for the Subaccount is affected by changes in interest rates on money market securities, average portfolio maturity of the Underlying Fund, the types and qualities of portfolio securities held by the Underlying Fund, and the Underlying Fund's operating expenses. Yields on amounts held in the Subaccount may also be presented for periods other than a 7-day period. FEDERAL TAX CONSIDERATIONS The following description of the federal income tax consequences under this Contract is general in nature and is therefore not exhaustive and is not intended to cover all situations. Because of the complexity of the law and the fact that the tax results will vary according to the factual status of the individual involved, a person contemplating purchase of an annuity contract and by a Contract Owner or beneficiary who may make elections under a Contract should consult with a qualified tax or legal adviser. MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS Federal tax law requires that minimum annual distributions begin by April 1st of the calendar year following the later of calendar year in which a participant under a qualified plan or a Section 403(b) annuity attains age 70 1/2 or retires. Minimum annual distributions under an IRA must begin by April 1(st) of the calendar year in which the Contract Owner attains 70 1/2 regardless of when he or she retires. Distributions must also begin or be continued according to the minimum distribution rules under the Code following the death of the Contract Owner or the annuitant. You should note that the U.S. Treasury recently issued regulations clarifying the operation of the required minimum distribution rules. NONQUALIFIED ANNUITY CONTRACTS Individuals may purchase tax-deferred annuities without any contribution limits. The purchase payments receive no tax benefit, deduction or deferral, but taxes on the increases in the value of the contract are generally deferred until distribution and transfers between the various investment options are not subject to tax. Generally, if an annuity contract is owned by other than an individual (or an entity such as a trust or other "look-through" entity which owns for an individual's benefit), the owner will be taxed each year on the increase in the value of the contract. An exception applies for purchase payments made before March 1, 1986. The benefits of tax deferral of income earned under a non-qualified annuity should be compared with the relative federal tax rates on income from other types of investments (dividends and capital gains, taxable at 15% or less) relative to the ordinary income treatment received on annuity income and interest received on fixed instruments (notes, bonds, etc.). If two or more annuity contracts are purchased from the same insurer within the same calendar year, such annuity contract will be aggregated for federal income tax purposes. As a result, distributions from any of them will be taxed based upon the amount of income in all of the same calendar year series of annuities. This will generally have the effect of causing taxes to be paid sooner on the deferred gain in the contracts. Those receiving partial distributions made before the maturity date will generally be taxed on an income-first basis to the extent of income in the contract. If you are exchanging another annuity contract for this annuity, certain pre-August 14, 1982 deposits into an annuity contract that have been placed in the contract by means of a tax-deferred exchange under Section 1035 of the Code may be withdrawn first without income tax liability. This information on deposits must be provided to the Company by the other insurance company at the time of the exchange. There is income in the contract generally to the extent the cash value exceeds the investment in the contract. The investment in the contract is equal to the amount of premiums paid less any amount received previously which was excludable from gross income. Any direct or indirect borrowing against the value of the contract or pledging of the contract as security for a loan will be treated as a cash distribution under the tax law. 5 In order to be treated as an annuity contract for federal income tax purposes, Section 72(s) of the Code requires any non-qualified contract to contain certain provisions specifying how your interest in the contract will be distributed in the event of the death of an owner of the contract. Specifically, Section 72(s) requires that (a) if an owner dies on or after the annuity starting date, but prior to the time the entire interest in the contract has been distributed, the entire interest in the contract will be distributed at least as rapidly as under the method of distribution being used as of the date of such owner's death; and (b) if any owner dies prior to the annuity starting date, the entire interest in the contract will be distributed within five years after the date of such owner's death. These requirements will be considered satisfied as to any portion of an owner's interest which is payable to or for the benefit of a designated beneficiary and which is distributed over the life of such designated beneficiary or over a period not extending beyond the life expectancy of that beneficiary, provided that such distributions begin within one year of the owner's death. The designated beneficiary refers to a natural person designated by the owner as a beneficiary and to whom ownership of the contract passes by reason of death. However, if the designated beneficiary is the surviving spouse of the deceased owner, the contract may be continued with the surviving spouse as the successor-owner. Contracts will be administered by the Company in accordance with these rules and the Company will make a notification when payments should be commenced. Special rules apply regarding distribution requirements when an annuity is owned by a trust or other entity for the benefit of one or more individuals. INDIVIDUAL RETIREMENT ANNUITIES To the extent of earned income for the year and not exceeding the applicable limit for the taxable year, an individual may make contributions, which in some cases may be deductible, to an individual retirement annuity (IRA). The applicable limit is $4,000 for calendar year 2007, $5,000 for 2008, and may be indexed for inflation in future years. Additional "catch-up" contributions may be made to an IRA by individuals age 50 or over. There are certain limits on the deductible amount based on the adjusted gross income of the individual and spouse and based on their participation in a retirement plan. If an individual is married and the spouse does not have earned income, the individual may establish IRAs for the individual and spouse. Purchase payments may then be made annually into IRAs for both spouses in the maximum amount of 100% of earned income up to a combined limit based on the individual limits outlined above. The Code provides for the purchase of a Simplified Employee Pension (SEP) plan. A SEP is funded through an IRA with an annual employer contribution limit of up to $46,000 for each participant. The Internal Revenue Services has not reviewed the contract for qualifications as an IRA, and has not addressed in a ruling of general applicability whether a death benefit provision such as the optional enhanced death benefit in the contract comports with IRA qualification requirements. SIMPLE PLAN IRA FORM Employers may establish a savings incentive match plan for employees ("SIMPLE plan") under which employees can make elective salary reduction contributions to an IRA based on a percentage of compensation of up to the applicable limit for the taxable year. The applicable limit is $10,500 in 2008 (which may be indexed for inflation for future years). (Alternatively, the employer can establish a SIMPLE cash or deferred arrangement under IRS Section 401(k)). Under a SIMPLE plan IRA, the employer must either make a matching contribution or a nonelective contribution based on the prescribed formulas for all eligible employees. Early withdrawals are subject to the 10% early withdrawal penalty generally applicable to IRAs, except that an early withdrawal by an employee under a SIMPLE plan IRA, within the first two years of participation, shall be subject to a 25% early withdrawal tax. ROTH IRAS Section 408A of the Code permits certain individuals to contribute to a Roth IRA. Eligibility to make contributions is based upon income, and the applicable limits vary based on marital status and/or whether the contribution is a rollover contribution from another IRA or an annual contribution. Contributions to a Roth IRA, which are subject to certain limitations (similar to the annual limits for the traditional IRA's), are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A conversion of a "traditional" IRA to a Roth IRA may be subject to tax and other special rules apply. You should consult a tax adviser before combining any converted amounts with other Roth IRA contributions, including any other conversion amounts from other tax years. Qualified distributions from a Roth IRA are tax-free. A qualified distribution requires that the Roth IRA has been held for at least 5 years, and the distribution is made after age 59 1/2, on death or disability of the owner, or for a limited 6 amount ($10,000) for a qualified first time home purchase for the owner or certain relatives. Income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during five taxable years starting with the year in which the first contribution is made to any Roth IRA of the individual. QUALIFIED PENSION AND PROFIT-SHARING PLANS Like most other contributions made under a qualified pension or profit-sharing plan, purchase payments made by an employer are not currently taxable to the participant and increases in the value of a contract are not subject to taxation until received by a participant or beneficiary. Distributions are generally taxable to the participant or beneficiary as ordinary income in the year of receipt. Any distribution that is considered the participant's "investment in the contract" is treated as a return of capital and is not taxable. Under a qualified plan, the investment in the contract may be zero. The annual limits that apply to the amounts that may be contributed to a defined contribution plan for 2008 is $46,000. The limit on employee salary reduction deferrals (commonly referred to as "401(k) contributions") is $15,500 in 2008. The annual limit may be indexed for inflation in future years. Additional "catch-up contributions" may be made by individuals age 50 or over. Amounts attributable to salary reduction contributions under Code Section 401(k) and income thereon may not be withdrawn prior to severance from employment, death, total and permanent disability, attainment of age 59 1/2, or in the case of hardship. SECTION 403(B) PLANS Under Code section 403(b), payments made by public school systems and certain tax exempt organizations to purchase annuity contracts for their employees are excludable from the gross income of the employee, subject to certain limitations. However, these payments may be subject to FICA (Social Security) taxes. A qualified contract issued as a tax-sheltered annuity under section 403(b) will be amended as necessary to conform to the requirements of the Code. The annual limits under Code Section 403(b) for employee salary reduction deferrals are increased under the same rules applicable to 401(k) plans ($15,500 in 2008). Code section 403(b)(11) restricts this distribution under Code section 403(b) annuity contracts of: (1) elective contributions made in years beginning after December 31, 1998; (2) earnings on those contributions; and (3) earnings in such years on amounts held as of the close of the last year beginning before January 1, 1989. Distribution of those amounts may only occur upon death of the employee, attainment of age 59 1/2, separation from service, disability, or financial hardship. In addition, income attributable to elective contributions may not be distributed in the case of hardship. FEDERAL INCOME TAX WITHHOLDING The portion of a distribution, which is taxable income to the recipient, will be subject to federal income tax withholding as follows: 1. ELIGIBLE ROLLOVER DISTRIBUTION FROM SECTION 403(B) PLANS OR ARRANGEMENTS, FROM QUALIFIED PENSION AND PROFIT-SHARING PLANS, OR FROM 457 PLANS SPONSORED BY GOVERNMENTAL ENTITIES There is a mandatory 20% tax withholding for plan distributions that are eligible for rollover to an IRA or to another qualified retirement plan (including a 457 plan sponsored by a governmental entity) but that are not directly rolled over. A distribution made directly to a participant or beneficiary may avoid this result if: (a) a periodic settlement distribution is elected based upon a life or life expectancy calculation, or (b) a term-for-years settlement distribution is elected for a period of ten years or more, payable at least annually, or (c) a minimum required distribution as defined under the tax law is taken after the attainment of the age of 70 1/2 or as otherwise required by law, or (d) the distribution is a hardship distribution. 7 A distribution including a rollover that is not a direct rollover will be subject to the 20% withholding, and the 10% additional tax penalty on premature withdrawals may apply to any amount not added back in the rollover. The 20% withholding may be recovered when the participant or beneficiary files a personal income tax return for the year if a rollover was completed within 60 days of receipt of the funds, except to the extent that the participant or spousal beneficiary is otherwise underwithheld or short on estimated taxes for that year. 2. OTHER NON-PERIODIC DISTRIBUTIONS (FULL OR PARTIAL REDEMPTIONS) To the extent not subject to 20% mandatory withholding as described in 1. above, the portion of a non-periodic distribution, which constitutes taxable income, will be subject to federal income tax withholding, if the aggregate distributions exceed $200 for the year, unless the recipient elects not to have taxes withheld. If no such election is made, 10% of the taxable portion of the distribution will be withheld as federal income tax; provided that the recipient may elect any other percentage. Election forms will be provided at the time distributions are requested. This form of withholding applies to all annuity programs. 3. PERIODIC DISTRIBUTIONS (DISTRIBUTIONS PAYABLE OVER A PERIOD GREATER THAN ONE YEAR) The portion of a periodic distribution, which constitutes taxable income, will be subject to federal income tax withholding under the wage withholding tables as if the recipient were married claiming three exemptions. A recipient may elect not to have income taxes withheld or have income taxes withheld at a different rate by providing a completed election form. Election forms will be provided at the time distributions are requested. This form of withholding applies to all annuity programs. Recipients who elect not to have withholding made are liable for payment of federal income tax on the taxable portion of the distribution. Recipients may also be subject to penalties under the estimated tax payment rules if withholding and estimated tax payments are not sufficient to cover tax liabilities. Recipients who do not provide a social security number or other taxpayer identification number will not be permitted to elect out of withholding. Additionally, U.S. citizens residing outside of the country, or U.S. legal residents temporarily residing outside the country, are subject to different withholding rules and generally cannot elect out of withholding. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The financial statements of each of the Subaccounts of the Separate Account and consolidated financial statements and the related financial statement schedules of MetLife Insurance Company of Connecticut and subsidiaries (which report expresses an unqualified opinion on the consolidated financial statements and financial statement schedules and includes an explanatory paragraph referring to changes in MetLife Insurance Company of Connecticut and subsidiaries' method of accounting for deferred acquisition costs as required by accounting guidance adopted on January 1, 2007, and the restatement of the 2007 consolidated financial statements) included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their reports appearing herein, and have been so included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is 201 East Kennedy Boulevard, Suite 1200, Tampa, FL 33602-5827. 8 CONDENSED FINANCIAL INFORMATION -- PIONEER ANNUISTAR - -------------------------------------------------------------------------------- The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.75%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.422 1.515 -- 2006 1.364 1.422 -- 2005 1.279 1.364 -- 2004 1.224 1.279 -- 2003 1.000 1.224 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.594 1.712 -- 2006 1.462 1.594 -- 2005 1.387 1.462 -- 2004 1.243 1.387 -- 2003 1.000 1.243 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.549 1.481 27,482 2006 1.346 1.549 27,586 2005 1.324 1.346 29,997 2004 1.214 1.324 35,918 2003 1.000 1.214 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.606 1.756 9,320 2006 1.504 1.606 9,705 2005 1.460 1.504 -- 2004 1.333 1.460 -- 2003 1.000 1.333 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 2.011 2.282 27,954 2006 1.685 2.011 29,061 2005 1.557 1.685 10,361 2004 1.336 1.557 11,039 2003 1.000 1.336 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.612 1.551 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.356 1.359 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.718 1.644 3,205
9 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.199 1.256 -- 2006 1.035 1.199 -- 2005 0.950 1.035 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.325 1.362 -- 2006 1.201 1.325 -- 2005 1.187 1.201 -- 2004 1.113 1.187 -- 2003 1.000 1.113 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.573 1.627 -- 2006 1.445 1.573 -- 2005 1.342 1.445 -- 2004 1.255 1.342 -- 2003 1.000 1.255 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.496 1.560 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.007 1.131 25,106 2006 1.000 1.007 24,653 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.026 1.060 43,594 2006 1.000 1.026 17,507 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.978 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.051 1.098 -- 2006 1.000 1.051 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.997 1.005 -- 2005 0.986 0.997 18,645 2004 0.993 0.986 19,865 2003 1.000 0.993 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.330 1.389 -- 2005 1.290 1.330 -- 2004 1.231 1.290 -- 2003 1.000 1.231 --
10 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.848 2.011 -- 2005 1.649 1.848 -- 2004 1.411 1.649 -- 2003 1.000 1.411 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.021 1.058 -- 2006 1.007 1.021 -- 2005 1.007 1.007 -- 2004 0.994 1.007 -- 2003 1.000 0.994 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.994 1.117 -- 2005 1.000 0.994 -- 2004 0.994 1.000 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.161 1.234 -- 2005 1.139 1.161 33,952 2004 1.109 1.139 36,173 2003 1.000 1.109 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 19,483 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.248 1.305 131,355 2006 1.084 1.248 147,395 2005 1.020 1.084 13,651 Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.167 4.433 44,929 2006 2.378 3.167 47,018 2005 1.759 2.378 4,460 2004 1.508 1.759 3,035 2003 1.000 1.508 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.708 1.687 78,900 2006 1.423 1.708 78,533 2005 1.372 1.423 10,312 2004 1.203 1.372 15,160 2003 1.000 1.203 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.246 1.370 -- 2006 1.063 1.246 19,994 2005 1.000 1.063 --
11 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.577 2.000 -- 2005 1.488 1.577 -- 2004 1.281 1.488 -- 2003 1.000 1.281 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.571 1.618 -- 2006 1.374 1.571 -- 2005 1.320 1.374 -- 2004 1.211 1.320 -- 2003 1.000 1.211 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.144 1.148 39,156 2006 1.039 1.144 20,807 2005 1.026 1.039 14,368 Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.295 1.344 22,054 2006 1.218 1.295 6,461 2005 1.219 1.218 -- 2004 1.151 1.219 -- 2003 1.000 1.151 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.218 1.259 6,144 2006 1.083 1.218 6,168 2005 1.014 1.083 6,195 Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.177 1.223 1,439,974 2006 1.063 1.177 1,451,335 2005 0.991 1.063 1,365,800 Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.140 1.184 32,376 2006 1.049 1.140 34,427 2005 0.976 1.049 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.308 1.381 -- 2006 1.221 1.308 -- 2005 1.204 1.221 -- 2004 1.152 1.204 -- 2003 1.000 1.152 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.044 2.274 -- 2006 1.697 2.044 -- 2005 1.499 1.697 -- 2004 1.288 1.499 -- 2003 1.000 1.288 --
12 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.846 1.911 7,233 2006 1.673 1.846 7,260 2005 1.582 1.673 -- 2004 1.322 1.582 13,464 2003 1.000 1.322 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.174 1.248 26,371 2006 1.163 1.174 26,159 2005 1.094 1.163 12,547 2004 1.022 1.094 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.537 2.016 4,020 2006 1.891 2.537 3,368 2005 1.676 1.891 -- 2004 1.259 1.676 9,713 2003 1.000 1.259 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.168 1.378 -- 2006 1.102 1.168 -- 2005 1.072 1.102 -- 2004 1.049 1.072 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.952 1.780 19,973 2006 1.740 1.952 17,549 2005 1.594 1.740 8,504 2004 1.353 1.594 13,226 2003 1.000 1.353 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.426 1.514 -- 2005 1.428 1.426 -- 2004 1.284 1.428 -- 2003 1.000 1.284 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.236 1.289 16,323 2006 1.184 1.236 -- 2005 1.175 1.184 -- 2004 1.088 1.175 -- 2003 1.000 1.088 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.515 1.514 -- 2006 1.340 1.515 -- 2005 1.303 1.340 -- 2004 1.190 1.303 -- 2003 1.000 1.190 --
13 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.80%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.126 1.200 -- 2006 1.081 1.126 -- 2005 1.000 1.081 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.148 1.233 -- 2006 1.054 1.148 -- 2005 1.000 1.054 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.171 1.119 -- 2006 1.018 1.171 -- 2005 1.000 1.018 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.127 1.231 -- 2006 1.055 1.127 -- 2005 1.000 1.055 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.283 1.455 864 2006 1.076 1.283 924 2005 1.000 1.076 251 Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.216 1.170 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.148 1.150 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.250 1.196 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.198 1.254 -- 2006 1.035 1.198 -- 2005 0.950 1.035 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.121 1.152 -- 2006 1.017 1.121 -- 2005 1.000 1.017 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.187 1.227 -- 2006 1.091 1.187 -- 2005 1.000 1.091 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.185 1.235 --
14 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.007 1.130 -- 2006 1.000 1.007 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.040 1.073 -- 2006 1.000 1.040 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.978 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.050 1.097 26,804 2006 1.000 1.050 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.010 1.019 -- 2005 1.000 1.010 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.044 1.090 -- 2005 1.000 1.044 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.147 1.248 -- 2005 1.000 1.147 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.008 1.044 -- 2006 0.994 1.008 -- 2005 1.000 0.994 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.993 1.115 -- 2005 1.000 0.993 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.016 1.079 -- 2005 1.000 1.016 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.247 1.303 56,155 2006 1.084 1.247 -- 2005 1.019 1.084 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 1.726 2.415 15,398 2006 1.297 1.726 -- 2005 1.000 1.297 --
15 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.236 1.221 11,183 2006 1.031 1.236 -- 2005 1.000 1.031 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.245 1.368 -- 2006 1.063 1.245 -- 2005 1.000 1.063 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.041 1.320 -- 2005 1.000 1.041 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.198 1.233 -- 2006 1.048 1.198 -- 2005 1.000 1.048 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.143 1.146 -- 2006 1.039 1.143 -- 2005 1.026 1.039 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.059 1.098 -- 2006 0.996 1.059 -- 2005 1.000 0.996 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.217 1.257 -- 2006 1.083 1.217 -- 2005 1.014 1.083 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.176 1.222 -- 2006 1.063 1.176 -- 2005 0.991 1.063 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.139 1.182 -- 2006 1.048 1.139 -- 2005 0.976 1.048 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.095 1.156 -- 2006 1.023 1.095 -- 2005 1.000 1.023 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.359 1.511 20,197 2006 1.128 1.359 -- 2005 1.000 1.128 --
16 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.170 1.211 -- 2006 1.061 1.170 -- 2005 1.000 1.061 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.108 1.177 -- 2006 1.098 1.108 -- 2005 1.000 1.098 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.582 1.257 26,938 2006 1.180 1.582 -- 2005 1.000 1.180 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.079 1.273 -- 2006 1.018 1.079 -- 2005 1.000 1.018 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.242 1.132 -- 2006 1.108 1.242 -- 2005 1.000 1.108 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.031 1.094 -- 2005 1.000 1.031 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.045 1.089 -- 2006 1.001 1.045 -- 2005 1.000 1.001 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.160 1.159 -- 2006 1.027 1.160 -- 2005 1.000 1.027 --
PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.95%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.411 1.503 -- 2006 1.357 1.411 245,854 2005 1.274 1.357 284,977 2004 1.222 1.274 231,497 2003 1.000 1.222 --
17 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.583 1.696 173,532 2006 1.454 1.583 180,281 2005 1.382 1.454 183,457 2004 1.241 1.382 108,904 2003 1.000 1.241 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.538 1.468 873,265 2006 1.339 1.538 917,416 2005 1.320 1.339 940,154 2004 1.213 1.320 637,163 2003 1.000 1.213 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.595 1.739 171,256 2006 1.496 1.595 181,691 2005 1.456 1.496 192,772 2004 1.331 1.456 195,100 2003 1.000 1.331 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.996 2.260 338,225 2006 1.676 1.996 384,846 2005 1.551 1.676 258,807 2004 1.335 1.551 177,969 2003 1.000 1.335 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.600 1.537 591,557 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.345 1.346 373,703 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.705 1.629 95,832 Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.194 1.250 -- 2006 1.033 1.194 -- 2005 0.950 1.033 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.315 1.351 -- 2006 1.194 1.315 416,781 2005 1.183 1.194 398,222 2004 1.112 1.183 267,186 2003 1.000 1.112 --
18 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.562 1.614 -- 2006 1.438 1.562 598,287 2005 1.337 1.438 656,296 2004 1.253 1.337 533,462 2003 1.000 1.253 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.484 1.545 242,982 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.006 1.127 262,382 2006 1.000 1.006 257,892 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.019 1.050 6,539,378 2006 1.000 1.019 410,536 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.977 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.049 1.094 627,831 2006 1.000 1.049 635,885 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.991 0.999 -- 2005 0.982 0.991 555,003 2004 0.992 0.982 1,188,876 2003 1.000 0.992 90,248 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.322 1.381 -- 2005 1.286 1.322 178,734 2004 1.230 1.286 151,437 2003 1.000 1.230 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.838 1.999 -- 2005 1.643 1.838 309,893 2004 1.409 1.643 181,942 2003 1.000 1.409 --
19 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.013 1.048 -- 2006 1.001 1.013 641,030 2005 1.003 1.001 653,184 2004 0.993 1.003 468,464 2003 1.000 0.993 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.991 1.111 -- 2005 0.998 0.991 42,068 2004 0.993 0.998 41,461 Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.155 1.225 -- 2005 1.136 1.155 219,105 2004 1.107 1.136 157,092 2003 1.000 1.107 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 646,077 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.244 1.297 143,160 2006 1.082 1.244 140,730 2005 1.019 1.082 146,470 Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.144 4.391 167,274 2006 2.366 3.144 130,823 2005 1.753 2.366 154,430 2004 1.506 1.753 140,964 2003 1.000 1.506 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.695 1.671 533,932 2006 1.415 1.695 597,342 2005 1.368 1.415 605,737 2004 1.202 1.368 426,769 2003 1.000 1.202 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.242 1.363 -- 2006 1.062 1.242 -- 2005 1.000 1.062 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.568 1.986 -- 2005 1.483 1.568 32,721 2004 1.280 1.483 13,099 2003 1.000 1.280 --
20 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.560 1.603 844,967 2006 1.367 1.560 682,529 2005 1.316 1.367 738,510 2004 1.209 1.316 586,630 2003 1.000 1.209 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.140 1.141 13,062 2006 1.037 1.140 13,016 2005 1.025 1.037 15,394 Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.286 1.332 781,784 2006 1.211 1.286 918,382 2005 1.215 1.211 1,032,790 2004 1.149 1.215 746,313 2003 1.000 1.149 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.214 1.252 7,940 2006 1.081 1.214 7,940 2005 1.013 1.081 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.173 1.217 27,628 2006 1.062 1.173 19,939 2005 0.991 1.062 19,966 Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.136 1.177 302,807 2006 1.047 1.136 315,267 2005 0.976 1.047 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.299 1.368 161,959 2006 1.215 1.299 157,388 2005 1.200 1.215 155,730 2004 1.151 1.200 149,246 2003 1.000 1.151 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.029 2.253 212,932 2006 1.688 2.029 166,644 2005 1.494 1.688 129,994 2004 1.286 1.494 27,095 2003 1.000 1.286 --
21 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.832 1.893 311,109 2006 1.664 1.832 361,809 2005 1.576 1.664 359,343 2004 1.320 1.576 236,024 2003 1.000 1.320 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.168 1.238 264,732 2006 1.159 1.168 287,108 2005 1.092 1.159 231,337 2004 1.022 1.092 40,688 Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.518 1.998 366,841 2006 1.881 2.518 418,229 2005 1.670 1.881 441,307 2004 1.258 1.670 237,566 2003 1.000 1.258 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.161 1.368 -- 2006 1.098 1.161 104,074 2005 1.070 1.098 103,572 2004 1.049 1.070 59,182 Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.938 1.764 182,014 2006 1.731 1.938 211,180 2005 1.589 1.731 274,235 2004 1.351 1.589 92,868 2003 1.000 1.351 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.419 1.504 -- 2005 1.423 1.419 67,239 2004 1.282 1.423 61,193 2003 1.000 1.282 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.227 1.277 1,079,004 2006 1.177 1.227 1,518,285 2005 1.171 1.177 1,256,972 2004 1.086 1.171 848,679 2003 1.000 1.086 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.504 1.501 -- 2006 1.333 1.504 334,921 2005 1.298 1.333 360,467 2004 1.188 1.298 250,563 2003 1.000 1.188 --
22 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.00%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.169 1.245 -- 2006 1.125 1.169 -- 2005 1.057 1.125 -- 2004 1.000 1.057 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.221 1.308 33,756 2006 1.122 1.221 46,572 2005 1.067 1.122 33,961 2004 1.000 1.067 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.251 1.193 -- 2006 1.089 1.251 38,461 2005 1.075 1.089 -- 2004 1.000 1.075 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.190 1.297 76,731 2006 1.117 1.190 27,657 2005 1.087 1.117 27,553 2004 1.000 1.087 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.489 1.685 33,197 2006 1.251 1.489 4,508 2005 1.158 1.251 4,934 2004 1.000 1.158 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.260 1.211 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.199 1.200 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.299 1.241 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.193 1.249 -- 2006 1.033 1.193 26,960 2005 0.950 1.033 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.172 1.204 -- 2006 1.065 1.172 -- 2005 1.056 1.065 -- 2004 1.000 1.056 --
23 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.231 1.272 -- 2006 1.134 1.231 -- 2005 1.055 1.134 -- 2004 1.000 1.055 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.229 1.280 21,498 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.005 1.126 -- 2006 1.000 1.005 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.032 1.063 -- 2006 1.000 1.032 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.977 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.049 1.093 52,575 2006 1.000 1.049 70,004 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.005 1.012 -- 2005 0.996 1.005 -- 2004 1.000 0.996 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.078 1.125 -- 2005 1.049 1.078 -- 2004 1.000 1.049 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.310 1.424 -- 2005 1.171 1.310 24,184 2004 1.000 1.171 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.044 1.079 -- 2006 1.032 1.044 -- 2005 1.035 1.032 -- 2004 1.000 1.035 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.986 1.105 -- 2005 0.994 0.986 5,578 2004 0.989 0.994 --
24 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.045 1.108 -- 2005 1.028 1.045 -- 2004 1.000 1.028 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.242 1.296 13,012 2006 1.082 1.242 51,016 2005 1.019 1.082 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.325 3.247 16,844 2006 1.751 2.325 4,904 2005 1.298 1.751 -- 2004 1.000 1.298 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.396 1.375 -- 2006 1.166 1.396 20,562 2005 1.127 1.166 -- 2004 1.000 1.127 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.241 1.361 -- 2006 1.061 1.241 -- 2005 1.000 1.061 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.247 1.578 -- 2005 1.180 1.247 -- 2004 1.000 1.180 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.294 1.329 5,295 2006 1.134 1.294 5,139 2005 1.093 1.134 5,379 2004 1.000 1.093 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.139 1.140 -- 2006 1.037 1.139 -- 2005 1.025 1.037 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.150 1.190 -- 2006 1.084 1.150 -- 2005 1.087 1.084 -- 2004 1.000 1.087 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.213 1.250 -- 2006 1.081 1.213 -- 2005 1.013 1.081 --
25 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.172 1.215 -- 2006 1.061 1.172 -- 2005 0.991 1.061 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.135 1.176 -- 2006 1.047 1.135 -- 2005 0.976 1.047 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.171 1.233 39,121 2006 1.096 1.171 50,967 2005 1.083 1.096 26,974 2004 1.000 1.083 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.591 1.766 49,805 2006 1.324 1.591 23,171 2005 1.173 1.324 -- 2004 1.000 1.173 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.331 1.374 20,168 2006 1.209 1.331 6,829 2005 1.146 1.209 6,922 2004 1.000 1.146 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.146 1.214 13,207 2006 1.137 1.146 13,126 2005 1.072 1.137 7,283 2004 1.000 1.072 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.974 1.565 -- 2006 1.476 1.974 16,962 2005 1.311 1.476 -- 2004 1.000 1.311 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.097 1.292 -- 2006 1.038 1.097 -- 2005 1.012 1.038 -- 2004 0.992 1.012 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.409 1.282 -- 2006 1.259 1.409 -- 2005 1.156 1.259 -- 2004 1.000 1.156 --
26 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.106 1.173 -- 2005 1.110 1.106 -- 2004 1.000 1.110 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.151 1.198 38,622 2006 1.106 1.151 38,344 2005 1.100 1.106 37,630 2004 1.000 1.100 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.259 1.256 -- 2006 1.117 1.259 -- 2005 1.088 1.117 -- 2004 1.000 1.088 --
PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.05%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.406 1.497 -- 2006 1.353 1.406 6,566 2005 1.272 1.353 6,194 2004 1.221 1.272 -- 2003 1.000 1.221 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.577 1.688 12,888 2006 1.450 1.577 4,161 2005 1.380 1.450 -- 2004 1.240 1.380 -- 2003 1.000 1.240 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.532 1.461 64,203 2006 1.335 1.532 8,884 2005 1.318 1.335 4,535 2004 1.212 1.318 -- 2003 1.000 1.212 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.589 1.731 564 2006 1.492 1.589 5,910 2005 1.453 1.492 5,606 2004 1.331 1.453 -- 2003 1.000 1.331 --
27 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.989 2.250 59,623 2006 1.672 1.989 28,426 2005 1.549 1.672 25,399 2004 1.334 1.549 1,081 2003 1.000 1.334 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.593 1.530 14,552 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.340 1.340 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.698 1.621 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.192 1.248 -- 2006 1.032 1.192 -- 2005 0.950 1.032 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.310 1.345 -- 2006 1.191 1.310 -- 2005 1.181 1.191 -- 2004 1.111 1.181 -- 2003 1.000 1.111 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.556 1.608 -- 2006 1.434 1.556 14,578 2005 1.335 1.434 14,380 2004 1.252 1.335 -- 2003 1.000 1.252 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.478 1.538 11,964 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.005 1.125 -- 2006 1.000 1.005 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.015 1.045 91,837 2006 1.000 1.015 17,448 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.976 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.049 1.092 87,478 2006 1.000 1.049 27,657
28 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.989 0.996 -- 2005 0.981 0.989 17,032 2004 0.991 0.981 4,000 2003 1.000 0.991 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.319 1.376 -- 2005 1.284 1.319 -- 2004 1.229 1.284 -- 2003 1.000 1.229 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.833 1.993 -- 2005 1.640 1.833 8,577 2004 1.409 1.640 -- 2003 1.000 1.409 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.009 1.043 -- 2006 0.999 1.009 18,432 2005 1.002 0.999 18,120 2004 0.992 1.002 -- 2003 1.000 0.992 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.989 1.108 -- 2005 0.998 0.989 -- 2004 0.993 0.998 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.152 1.220 -- 2005 1.134 1.152 -- 2004 1.106 1.134 -- 2003 1.000 1.106 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 24,423 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.241 1.294 224,248 2006 1.082 1.241 7,449 2005 1.019 1.082 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.132 4.371 35,661 2006 2.359 3.132 11,485 2005 1.750 2.359 3,819 2004 1.505 1.750 -- 2003 1.000 1.505 --
29 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.689 1.663 51,735 2006 1.412 1.689 10,795 2005 1.365 1.412 8,507 2004 1.201 1.365 -- 2003 1.000 1.201 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.240 1.359 -- 2006 1.061 1.240 -- 2005 1.000 1.061 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.564 1.979 -- 2005 1.481 1.564 -- 2004 1.279 1.481 -- 2003 1.000 1.279 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.554 1.595 10,300 2006 1.363 1.554 8,983 2005 1.313 1.363 9,164 2004 1.209 1.313 -- 2003 1.000 1.209 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.138 1.138 29,737 2006 1.037 1.138 7,008 2005 1.025 1.037 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.281 1.325 75,121 2006 1.208 1.281 14,115 2005 1.213 1.208 4,982 2004 1.149 1.213 -- 2003 1.000 1.149 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.212 1.249 183,109 2006 1.081 1.212 118,868 2005 1.013 1.081 30,483 Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.171 1.213 50,783 2006 1.061 1.171 47,532 2005 0.991 1.061 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.134 1.174 188,007 2006 1.046 1.134 195,298 2005 0.976 1.046 146,137
30 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.294 1.362 9,546 2006 1.211 1.294 -- 2005 1.198 1.211 -- 2004 1.150 1.198 -- 2003 1.000 1.150 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.022 2.243 41,349 2006 1.683 2.022 5,363 2005 1.491 1.683 -- 2004 1.285 1.491 -- 2003 1.000 1.285 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.826 1.884 17,611 2006 1.660 1.826 10,747 2005 1.574 1.660 -- 2004 1.319 1.574 -- 2003 1.000 1.319 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.165 1.234 56,419 2006 1.156 1.165 -- 2005 1.091 1.156 -- 2004 1.022 1.091 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.509 1.988 9,847 2006 1.876 2.509 4,982 2005 1.667 1.876 -- 2004 1.257 1.667 -- 2003 1.000 1.257 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.158 1.363 -- 2006 1.096 1.158 4,561 2005 1.069 1.096 -- 2004 1.048 1.069 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.931 1.755 52,067 2006 1.726 1.931 15,918 2005 1.586 1.726 7,144 2004 1.350 1.586 -- 2003 1.000 1.350 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.415 1.500 -- 2005 1.421 1.415 -- 2004 1.281 1.421 -- 2003 1.000 1.281 --
31 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.222 1.271 60,686 2006 1.174 1.222 16,502 2005 1.169 1.174 15,842 2004 1.086 1.169 -- 2003 1.000 1.086 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.498 1.494 -- 2006 1.329 1.498 18,773 2005 1.296 1.329 18,627 2004 1.188 1.296 -- 2003 1.000 1.188 --
PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.15%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.401 1.491 -- 2006 1.350 1.401 22,662 2005 1.270 1.350 22,645 2004 1.220 1.270 17,165 2003 1.000 1.220 16,944 AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.571 1.680 15,970 2006 1.446 1.571 16,578 2005 1.378 1.446 16,578 2004 1.239 1.378 16,578 2003 1.000 1.239 16,578 Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.527 1.454 37,592 2006 1.332 1.527 27,208 2005 1.316 1.332 48,012 2004 1.211 1.316 44,062 2003 1.000 1.211 16,965 FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.583 1.723 21,929 2006 1.488 1.583 15,802 2005 1.451 1.488 24,837 2004 1.330 1.451 25,125 2003 1.000 1.330 15,592
32 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.982 2.239 35,197 2006 1.667 1.982 15,610 2005 1.546 1.667 23,966 2004 1.333 1.546 10,885 2003 1.000 1.333 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.587 1.523 15,697 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.334 1.334 258 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.691 1.614 286 Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.190 1.245 -- 2006 1.031 1.190 -- 2005 0.950 1.031 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.305 1.340 -- 2006 1.188 1.305 259 2005 1.179 1.188 239 2004 1.110 1.179 241 2003 1.000 1.110 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.550 1.601 -- 2006 1.430 1.550 4,115 2005 1.333 1.430 23,147 2004 1.252 1.333 26,008 2003 1.000 1.252 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.472 1.531 22,040 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.004 1.123 324 2006 1.000 1.004 325 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.011 1.040 36,705 2006 1.000 1.011 36,763 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.976 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.048 1.090 37,004 2006 1.000 1.048 42,326
33 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.986 0.993 -- 2005 0.979 0.986 36,823 2004 0.990 0.979 30,323 2003 1.000 0.990 86,167 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.315 1.372 -- 2005 1.282 1.315 218 2004 1.228 1.282 1,836 2003 1.000 1.228 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.828 1.987 -- 2005 1.638 1.828 21,225 2004 1.408 1.638 17,702 2003 1.000 1.408 14,907 Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.006 1.039 -- 2006 0.996 1.006 12,830 2005 1.000 0.996 54,534 2004 0.992 1.000 39,336 2003 1.000 0.992 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.987 1.105 -- 2005 0.997 0.987 3,217 2004 0.992 0.997 3,220 Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.149 1.216 -- 2005 1.132 1.149 243 2004 1.106 1.132 2,028 2003 1.000 1.106 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 45,496 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.239 1.290 -- 2006 1.081 1.239 -- 2005 1.018 1.081 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.121 4.351 402 2006 2.353 3.121 403 2005 1.747 2.353 386 2004 1.504 1.747 1,007 2003 1.000 1.504 --
34 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.683 1.656 20,799 2006 1.408 1.683 -- 2005 1.363 1.408 29,178 2004 1.200 1.363 29,611 2003 1.000 1.200 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.237 1.355 -- 2006 1.060 1.237 -- 2005 1.000 1.060 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.560 1.972 -- 2005 1.478 1.560 -- 2004 1.278 1.478 -- 2003 1.000 1.278 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.548 1.588 12,974 2006 1.360 1.548 7,706 2005 1.311 1.360 7,706 2004 1.208 1.311 -- 2003 1.000 1.208 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.136 1.135 -- 2006 1.036 1.136 -- 2005 1.024 1.036 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.277 1.319 27,705 2006 1.205 1.277 4,589 2005 1.211 1.205 38,860 2004 1.148 1.211 39,838 2003 1.000 1.148 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.210 1.245 -- 2006 1.080 1.210 -- 2005 1.013 1.080 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.169 1.210 1,444,190 2006 1.060 1.169 1,265,725 2005 0.991 1.060 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.132 1.171 982,373 2006 1.045 1.132 614,252 2005 0.976 1.045 --
35 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.289 1.355 258 2006 1.208 1.289 259 2005 1.196 1.208 240 2004 1.149 1.196 241 2003 1.000 1.149 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.014 2.232 -- 2006 1.679 2.014 -- 2005 1.489 1.679 -- 2004 1.285 1.489 -- 2003 1.000 1.285 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.819 1.875 12,640 2006 1.655 1.819 3,609 2005 1.571 1.655 20,172 2004 1.318 1.571 22,267 2003 1.000 1.318 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.161 1.229 9,542 2006 1.154 1.161 3,020 2005 1.090 1.154 11,689 2004 1.022 1.090 12,267 Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.500 1.979 30,103 2006 1.871 2.500 27,178 2005 1.664 1.871 200 2004 1.256 1.664 1,506 2003 1.000 1.256 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.155 1.358 -- 2006 1.094 1.155 4,527 2005 1.069 1.094 4,531 2004 1.048 1.069 4,534 Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.924 1.747 181 2006 1.722 1.924 182 2005 1.583 1.722 -- 2004 1.349 1.583 1,337 2003 1.000 1.349 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.411 1.495 -- 2005 1.418 1.411 202 2004 1.280 1.418 203 2003 1.000 1.280 --
36 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.218 1.265 27,317 2006 1.171 1.218 199,245 2005 1.168 1.171 31,972 2004 1.085 1.168 23,552 2003 1.000 1.085 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.493 1.487 -- 2006 1.326 1.493 5,621 2005 1.294 1.326 5,586 2004 1.187 1.294 450 2003 1.000 1.187 --
PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.20%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.163 1.238 -- 2006 1.121 1.163 -- 2005 1.056 1.121 -- 2004 1.000 1.056 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.215 1.299 -- 2006 1.119 1.215 -- 2005 1.066 1.119 -- 2004 1.000 1.066 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.244 1.184 -- 2006 1.086 1.244 -- 2005 1.073 1.086 -- 2004 1.000 1.073 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.184 1.288 -- 2006 1.113 1.184 -- 2005 1.086 1.113 -- 2004 1.000 1.086 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.482 1.673 -- 2006 1.247 1.482 -- 2005 1.157 1.247 -- 2004 1.000 1.157 --
37 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.253 1.202 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.192 1.191 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.291 1.232 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.189 1.243 -- 2006 1.031 1.189 -- 2005 0.949 1.031 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.166 1.197 -- 2006 1.062 1.166 -- 2005 1.054 1.062 -- 2004 1.000 1.054 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.224 1.265 -- 2006 1.130 1.224 -- 2005 1.054 1.130 -- 2004 1.000 1.054 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.222 1.270 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.004 1.122 -- 2006 1.000 1.004 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.027 1.055 9,205 2006 1.000 1.027 9,583 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.975 2,268 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.047 1.089 -- 2006 1.000 1.047 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.001 1.008 -- 2005 0.995 1.001 -- 2004 1.000 0.995 --
38 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.075 1.121 -- 2005 1.048 1.075 -- 2004 1.000 1.048 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.306 1.418 -- 2005 1.170 1.306 -- 2004 1.000 1.170 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.038 1.072 -- 2006 1.029 1.038 -- 2005 1.033 1.029 -- 2004 1.000 1.033 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.983 1.099 -- 2005 0.993 0.983 -- 2004 0.989 0.993 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.042 1.102 -- 2005 1.027 1.042 -- 2004 1.000 1.027 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.238 1.289 -- 2006 1.080 1.238 -- 2005 1.018 1.080 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.314 3.224 -- 2006 1.745 2.314 -- 2005 1.296 1.745 -- 2004 1.000 1.296 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.389 1.366 -- 2006 1.162 1.389 -- 2005 1.126 1.162 -- 2004 1.000 1.126 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.236 1.354 -- 2006 1.060 1.236 -- 2005 1.000 1.060 --
39 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.243 1.570 -- 2005 1.178 1.243 -- 2004 1.000 1.178 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.287 1.320 -- 2006 1.131 1.287 -- 2005 1.091 1.131 -- 2004 1.000 1.091 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.135 1.133 104,787 2006 1.035 1.135 75,911 2005 1.024 1.035 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.144 1.181 -- 2006 1.080 1.144 -- 2005 1.086 1.080 -- 2004 1.000 1.086 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.208 1.243 -- 2006 1.079 1.208 -- 2005 1.013 1.079 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.168 1.208 1,902,733 2006 1.060 1.168 899,084 2005 0.991 1.060 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.131 1.169 822,036 2006 1.045 1.131 788,136 2005 0.976 1.045 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.165 1.224 -- 2006 1.093 1.165 -- 2005 1.082 1.093 -- 2004 1.000 1.082 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.583 1.753 -- 2006 1.320 1.583 -- 2005 1.171 1.320 -- 2004 1.000 1.171 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.324 1.364 -- 2006 1.205 1.324 -- 2005 1.145 1.205 -- 2004 1.000 1.145 --
40 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.140 1.206 -- 2006 1.134 1.140 -- 2005 1.071 1.134 -- 2004 1.000 1.071 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.964 1.554 -- 2006 1.471 1.964 -- 2005 1.309 1.471 -- 2004 1.000 1.309 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.092 1.284 -- 2006 1.035 1.092 -- 2005 1.011 1.035 -- 2004 0.992 1.011 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.402 1.273 -- 2006 1.255 1.402 -- 2005 1.155 1.255 -- 2004 1.000 1.155 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.103 1.168 -- 2005 1.109 1.103 -- 2004 1.000 1.109 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.145 1.189 65,255 2006 1.102 1.145 34,897 2005 1.099 1.102 -- 2004 1.000 1.099 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.253 1.247 -- 2006 1.113 1.253 -- 2005 1.087 1.113 -- 2004 1.000 1.087 --
PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.25%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.162 1.236 -- 2006 1.120 1.162 5,461 2005 1.055 1.120 5,464 2004 1.000 1.055 --
41 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.213 1.296 4,738 2006 1.118 1.213 4,738 2005 1.066 1.118 4,738 2004 1.000 1.066 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.243 1.182 2,549 2006 1.085 1.243 2,549 2005 1.073 1.085 2,549 2004 1.000 1.073 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.182 1.286 2,669 2006 1.112 1.182 2,670 2005 1.086 1.112 2,671 2004 1.000 1.086 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.480 1.670 -- 2006 1.246 1.480 -- 2005 1.157 1.246 -- 2004 1.000 1.157 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.251 1.200 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.190 1.189 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.290 1.230 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.188 1.242 -- 2006 1.030 1.188 -- 2005 0.949 1.030 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.165 1.195 -- 2006 1.061 1.165 -- 2005 1.054 1.061 -- 2004 1.000 1.054 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.223 1.263 -- 2006 1.129 1.223 -- 2005 1.053 1.129 -- 2004 1.000 1.053 --
42 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.220 1.268 5,459 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.003 1.121 5,710 2006 1.000 1.003 5,710 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.026 1.053 -- 2006 1.000 1.026 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.975 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.047 1.088 6,140 2006 1.000 1.047 6,140 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.001 1.007 -- 2005 0.995 1.001 -- 2004 1.000 0.995 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.074 1.120 -- 2005 1.047 1.074 5,070 2004 1.000 1.047 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.305 1.417 -- 2005 1.170 1.305 4,317 2004 1.000 1.170 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.037 1.070 -- 2006 1.028 1.037 490 2005 1.033 1.028 493 2004 1.000 1.033 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.982 1.098 -- 2005 0.993 0.982 -- 2004 0.989 0.993 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.041 1.101 -- 2005 1.026 1.041 -- 2004 1.000 1.026 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 483
43 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.237 1.287 59,654 2006 1.080 1.237 59,654 2005 1.018 1.080 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.311 3.218 -- 2006 1.744 2.311 -- 2005 1.296 1.744 -- 2004 1.000 1.296 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.387 1.363 56,075 2006 1.161 1.387 56,077 2005 1.126 1.161 2,732 2004 1.000 1.126 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.235 1.352 -- 2006 1.059 1.235 -- 2005 1.000 1.059 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.242 1.568 -- 2005 1.178 1.242 -- 2004 1.000 1.178 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.286 1.317 -- 2006 1.130 1.286 -- 2005 1.091 1.130 -- 2004 1.000 1.091 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.134 1.132 -- 2006 1.035 1.134 -- 2005 1.024 1.035 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.142 1.179 234 2006 1.079 1.142 235 2005 1.086 1.079 237 2004 1.000 1.086 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.207 1.242 -- 2006 1.079 1.207 -- 2005 1.012 1.079 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.167 1.206 58,873 2006 1.059 1.167 58,873 2005 0.991 1.059 285,700
44 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.130 1.167 -- 2006 1.045 1.130 -- 2005 0.975 1.045 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.164 1.222 5,777 2006 1.092 1.164 5,781 2005 1.082 1.092 5,787 2004 1.000 1.082 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.581 1.750 61,647 2006 1.319 1.581 61,649 2005 1.171 1.319 4,599 2004 1.000 1.171 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.322 1.362 2,628 2006 1.204 1.322 2,630 2005 1.144 1.204 2,632 2004 1.000 1.144 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.138 1.203 -- 2006 1.133 1.138 -- 2005 1.071 1.133 -- 2004 1.000 1.071 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.962 1.552 17,492 2006 1.470 1.962 17,493 2005 1.309 1.470 2,038 2004 1.000 1.309 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.090 1.282 -- 2006 1.034 1.090 -- 2005 1.011 1.034 -- 2004 0.992 1.011 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.400 1.270 3,031 2006 1.254 1.400 3,035 2005 1.155 1.254 2,618 2004 1.000 1.155 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.102 1.167 -- 2005 1.109 1.102 473 2004 1.000 1.109 --
45 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.144 1.187 4,712 2006 1.101 1.144 4,712 2005 1.099 1.101 4,712 2004 1.000 1.099 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.251 1.245 -- 2006 1.112 1.251 -- 2005 1.087 1.112 -- 2004 1.000 1.087 --
PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.35%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.391 1.479 -- 2006 1.342 1.391 -- 2005 1.266 1.342 -- 2004 1.219 1.266 -- 2003 1.000 1.219 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.560 1.665 -- 2006 1.439 1.560 -- 2005 1.373 1.439 -- 2004 1.238 1.373 -- 2003 1.000 1.238 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.516 1.440 -- 2006 1.325 1.516 -- 2005 1.311 1.325 -- 2004 1.209 1.311 -- 2003 1.000 1.209 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.571 1.707 -- 2006 1.480 1.571 -- 2005 1.446 1.480 -- 2004 1.328 1.446 -- 2003 1.000 1.328 --
46 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.967 2.218 -- 2006 1.658 1.967 -- 2005 1.541 1.658 -- 2004 1.331 1.541 -- 2003 1.000 1.331 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.574 1.508 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.324 1.322 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.678 1.599 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.185 1.239 -- 2006 1.030 1.185 -- 2005 0.949 1.030 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.296 1.329 -- 2006 1.182 1.296 -- 2005 1.175 1.182 -- 2004 1.109 1.175 -- 2003 1.000 1.109 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.539 1.588 -- 2006 1.423 1.539 -- 2005 1.328 1.423 -- 2004 1.250 1.328 -- 2003 1.000 1.250 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.460 1.517 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.003 1.119 -- 2006 1.000 1.003 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.004 1.030 -- 2006 1.000 1.004 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.974 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.046 1.087 -- 2006 1.000 1.046 --
47 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.981 0.987 -- 2005 0.976 0.981 -- 2004 0.989 0.976 -- 2003 1.000 0.989 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.308 1.364 -- 2005 1.277 1.308 -- 2004 1.227 1.277 -- 2003 1.000 1.227 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.819 1.975 -- 2005 1.632 1.819 -- 2004 1.406 1.632 -- 2003 1.000 1.406 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 0.998 1.029 -- 2006 0.991 0.998 -- 2005 0.997 0.991 -- 2004 0.990 0.997 -- 2003 1.000 0.990 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.984 1.099 -- 2005 0.995 0.984 -- 2004 0.992 0.995 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.143 1.207 -- 2005 1.128 1.143 -- 2004 1.104 1.128 -- 2003 1.000 1.104 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.235 1.283 -- 2006 1.079 1.235 -- 2005 1.018 1.079 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.098 4.310 -- 2006 2.340 3.098 -- 2005 1.741 2.340 -- 2004 1.502 1.741 -- 2003 1.000 1.502 --
48 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.670 1.640 -- 2006 1.400 1.670 -- 2005 1.358 1.400 -- 2004 1.199 1.358 -- 2003 1.000 1.199 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.233 1.348 -- 2006 1.058 1.233 -- 2005 1.000 1.058 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.552 1.957 -- 2005 1.473 1.552 -- 2004 1.276 1.473 -- 2003 1.000 1.276 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.537 1.573 -- 2006 1.352 1.537 -- 2005 1.307 1.352 -- 2004 1.206 1.307 -- 2003 1.000 1.206 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.132 1.129 -- 2006 1.034 1.132 -- 2005 1.024 1.034 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.267 1.307 -- 2006 1.199 1.267 -- 2005 1.207 1.199 -- 2004 1.146 1.207 -- 2003 1.000 1.146 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.205 1.238 -- 2006 1.078 1.205 -- 2005 1.012 1.078 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.165 1.203 108,550 2006 1.058 1.165 56,075 2005 0.991 1.058 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.128 1.164 219,988 2006 1.044 1.128 219,621 2005 0.975 1.044 --
49 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.280 1.343 -- 2006 1.202 1.280 -- 2005 1.192 1.202 -- 2004 1.148 1.192 -- 2003 1.000 1.148 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.000 2.212 -- 2006 1.670 2.000 -- 2005 1.484 1.670 -- 2004 1.283 1.484 -- 2003 1.000 1.283 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.806 1.858 -- 2006 1.647 1.806 -- 2005 1.566 1.647 -- 2004 1.317 1.566 -- 2003 1.000 1.317 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.155 1.220 -- 2006 1.150 1.155 -- 2005 1.088 1.150 -- 2004 1.021 1.088 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.481 1.961 -- 2006 1.861 2.481 -- 2005 1.659 1.861 -- 2004 1.254 1.659 -- 2003 1.000 1.254 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.148 1.348 -- 2006 1.090 1.148 -- 2005 1.067 1.090 -- 2004 1.047 1.067 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.910 1.731 -- 2006 1.713 1.910 -- 2005 1.578 1.713 -- 2004 1.348 1.578 -- 2003 1.000 1.348 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.404 1.486 -- 2005 1.414 1.404 -- 2004 1.278 1.414 -- 2003 1.000 1.278 --
50 PIONEER ANNUISTAR -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.209 1.253 -- 2006 1.165 1.209 -- 2005 1.164 1.165 -- 2004 1.084 1.164 -- 2003 1.000 1.084 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.482 1.474 -- 2006 1.319 1.482 -- 2005 1.290 1.319 -- 2004 1.185 1.290 -- 2003 1.000 1.185 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix C for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 05/01/2006, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Capital Appreciation Fund/VA was replaced by Met Investors Series Trust- Oppenheimer Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Global Securities Fund/VA was replaced by Metropolitan Series Fund, Inc.- Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/24/2006, Pioneer Variable Contracts Trust-Pioneer Small Company VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer AmPac Growth VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Oak Ridge Large Cap Growth VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Balanced VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Ibbotson Moderate Allocation VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Europe VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer International Value VCT Portfolio and is no longer available as a funding option. 51 Effective on or about 04/30/2007, AIM Variable Insurance Funds-AIM V.I. Capital Appreciation Fund was replaced by Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Total Return Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Capital and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II, Inc.-Legg Mason Partners Variable Aggressive Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer Value VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Fund VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer America Income VCT Portfolio merged into Pioneer Variable Contracts Trust- Pioneer Bond VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust -- Pioneer Equity Opportunity VCT Portfolio liquidated its assets and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust -- Pioneer Small and Mid Cap Growth VCT Portfolio liquidated its assets and is no longer available as a funding option. 52 CONDENSED FINANCIAL INFORMATION -- PORTFOLIO ARCHITECT II - -------------------------------------------------------------------------------- The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.383 1.353 -- 2005 1.223 1.383 5,814 2004 1.147 1.223 5,818 2003 1.000 1.147 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.965 2.221 112,631 2006 1.657 1.965 82,703 2005 1.475 1.657 86,909 2004 1.320 1.475 78,283 2003 1.000 1.320 1,971 American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.732 1.916 262,586 2006 1.596 1.732 262,291 2005 1.395 1.596 279,816 2004 1.259 1.395 219,842 2003 1.000 1.259 22,246 American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.615 1.670 361,322 2006 1.423 1.615 346,548 2005 1.366 1.423 358,389 2004 1.257 1.366 300,402 2003 1.000 1.257 11,074 Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.666 1.649 -- 2005 1.432 1.666 24,671 2004 1.217 1.432 15,912 2003 1.000 1.217 15,906 Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.726 2.254 -- 2005 1.636 1.726 52,370 2004 1.264 1.636 36,978 2003 1.000 1.264 4,454
53 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.428 1.507 9,190 2006 1.245 1.428 9,213 2005 1.212 1.245 9,218 2004 1.172 1.212 9,224 2003 1.000 1.172 4,928 Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.499 1.313 42,602 2006 1.467 1.499 26,799 2005 1.408 1.467 36,788 2004 1.285 1.408 15,633 2003 1.000 1.285 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.316 1.431 -- 2005 1.213 1.316 53,526 2004 1.079 1.213 52,646 2003 1.000 1.079 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.313 1.464 -- 2005 1.211 1.313 49,581 2004 1.072 1.211 49,581 2003 1.000 1.072 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.772 2.046 88,419 2006 1.615 1.772 90,882 2005 1.406 1.615 109,221 2004 1.240 1.406 67,973 2003 1.000 1.240 32,001 VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.574 1.654 13,033 2006 1.405 1.574 13,572 2005 1.182 1.405 14,264 2004 1.185 1.182 19,446 2003 1.000 1.185 15,831 VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 2.228 2.530 50,486 2006 2.013 2.228 66,663 2005 1.732 2.013 82,496 2004 1.411 1.732 66,031 2003 1.000 1.411 13,386
54 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.457 1.699 -- 2005 1.339 1.457 32,356 2004 1.207 1.339 23,724 2003 1.000 1.207 7,501 FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.875 3.645 27,093 2006 2.279 2.875 17,071 2005 1.816 2.279 23,454 2004 1.479 1.816 19,226 2003 1.000 1.479 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 2.026 2.303 149,120 2006 1.694 2.026 150,829 2005 1.562 1.694 159,523 2004 1.338 1.562 136,647 2003 1.214 1.338 10,473 FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.626 1.950 -- 2005 1.517 1.626 36,782 2004 1.328 1.517 13,897 2003 1.000 1.328 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.060 1.084 -- 2005 1.063 1.060 5,995 2004 0.992 1.063 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.237 1.278 -- 2005 1.167 1.237 27,515 2004 1.095 1.167 45,470 2003 1.000 1.095 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.552 1.860 -- 2006 1.483 1.552 -- 2005 1.341 1.483 -- 2004 1.192 1.341 -- 2003 1.000 1.192 --
55 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.601 1.918 -- 2006 1.508 1.601 -- 2005 1.373 1.508 -- 2004 1.386 1.373 -- 2003 1.000 1.386 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.558 1.677 -- 2006 1.341 1.558 -- 2005 1.290 1.341 -- 2004 1.254 1.290 -- 2003 1.000 1.254 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.546 1.736 -- 2005 1.510 1.546 6,080 2004 1.334 1.510 4,418 2003 1.000 1.334 6,395 Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.661 1.602 28,733 LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.537 1.591 5,006 LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.531 1.581 86,692 2006 1.350 1.531 73,252 2005 1.316 1.350 72,250 2004 1.212 1.316 59,615 2003 1.000 1.212 8,799 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.732 1.660 77,987 LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.691 1.730 23,231 2006 1.452 1.691 22,615 2005 1.385 1.452 50,344 2004 1.274 1.385 31,394 2003 1.000 1.274 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.424 1.427 29,212 LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.859 2.013 33,774 2006 1.674 1.859 35,677 2005 1.621 1.674 37,914 2004 1.430 1.621 38,605 2003 1.000 1.430 --
56 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.140 1.245 8,678 2006 1.075 1.140 7,529 2005 1.046 1.075 6,017 2004 0.925 1.046 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.028 1.026 6,709 2006 1.003 1.028 8,640 2005 0.995 1.003 8,853 2004 0.999 0.995 8,860 2003 1.000 0.999 3,839 Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.665 1.748 -- 2006 1.432 1.665 15,528 2005 1.398 1.432 29,576 2004 1.311 1.398 12,599 2003 1.000 1.311 4,572 LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.377 1.434 -- 2006 1.342 1.377 28,907 2005 1.295 1.342 26,743 2004 1.308 1.295 22,673 2003 1.000 1.308 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.619 1.676 -- 2006 1.480 1.619 28,600 2005 1.368 1.480 27,917 2004 1.274 1.368 20,461 2003 1.000 1.274 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.481 1.547 -- 2006 1.338 1.481 5,199 2005 1.311 1.338 5,108 2004 1.229 1.311 5,025 2003 1.000 1.229 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.619 1.683 -- 2006 1.402 1.619 45,770 2005 1.379 1.402 58,269 2004 1.243 1.379 46,303 2003 1.000 1.243 6,194
57 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.810 1.995 -- 2006 1.638 1.810 49,449 2005 1.537 1.638 42,675 2004 1.258 1.537 48,606 2003 1.000 1.258 2,100 Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.085 1.120 -- 2005 1.061 1.085 11,239 2004 0.999 1.061 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.717 1.793 79,347 2006 1.000 1.717 73,144 MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.316 1.332 18,079 2006 1.000 1.316 18,633 MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.645 1.725 -- 2006 1.000 1.645 4,066 MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.711 1.724 4,019 MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.197 1.167 -- 2006 1.000 1.197 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.971 1.924 13,495 2006 1.000 1.971 3,983 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.691 2.172 16,840 2006 1.000 1.691 22,234 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.221 1.082 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.184 1.240 11,239 2006 1.000 1.184 11,239 MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.319 1.387 67,696 2006 1.000 1.319 77,543 MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.078 1.104 137,186 2006 1.000 1.078 72,287 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.072 1.062 82,070 2006 1.000 1.072 --
58 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.449 1.596 2,038 2006 1.000 1.449 2,041 MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.167 1.280 7,144 2006 1.000 1.167 7,144 MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.215 2.327 10,735 MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.392 1.475 102 2006 1.000 1.392 106 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.221 1.024 23,541 2006 1.000 1.221 28,161 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.146 1.214 61,860 MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.553 1.606 -- 2006 1.000 1.553 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.118 1.235 -- 2006 1.000 1.118 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.160 1.218 8,252 2006 1.000 1.160 8,353 MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.029 0.983 109,537 2006 1.000 1.029 88,161 Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.511 1.791 19,677 2006 1.000 1.511 19,680 MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.064 1.114 21,714 2006 1.000 1.064 22,042 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.034 1.070 210,903 2006 1.000 1.034 302,728 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.395 1.427 6,876 2006 1.000 1.395 6,868 MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.482 1.519 142,642 2006 1.000 1.482 136,292 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.061 1.078 -- 2006 1.000 1.061 --
59 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.043 1.084 -- 2006 1.000 1.043 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.050 1.083 -- 2006 1.000 1.050 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.055 1.084 -- 2006 1.000 1.055 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.060 1.084 18,039 2006 1.000 1.060 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.383 1.419 136,701 2006 1.000 1.383 151,073 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.051 1.100 138,080 2006 0.996 1.051 120,197 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.069 1.149 8,009 2006 1.000 1.069 8,009 MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.153 1.197 -- 2006 1.000 1.153 5,995 MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.073 1.104 -- 2006 1.000 1.073 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.002 1.011 -- 2005 0.989 1.002 127,661 2004 0.994 0.989 55,015 2003 1.000 0.994 13,810 Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.096 1.159 -- 2005 1.053 1.096 22,371 2004 0.979 1.053 6,626 PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.119 1.141 -- 2006 1.128 1.119 71,175 2005 1.122 1.128 84,909 2004 1.047 1.122 82,378 2003 1.000 1.047 24,970
60 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.079 1.155 245,441 2006 1.055 1.079 258,208 2005 1.046 1.055 288,448 2004 1.013 1.046 203,667 2003 1.000 1.013 27,766 Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 2.056 2.226 -- 2006 1.635 2.056 -- 2005 1.480 1.635 -- 2004 1.294 1.480 -- 2003 1.000 1.294 2,037 Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.163 2.310 -- 2006 1.873 2.163 35,161 2005 1.777 1.873 31,266 2004 1.430 1.777 23,791 2003 1.000 1.430 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.376 1.466 -- 2005 1.286 1.376 2,046 2004 1.226 1.286 2,050 2003 1.000 1.226 2,051 Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.180 1.258 -- 2005 1.194 1.180 66,715 2004 1.141 1.194 63,779 2003 1.000 1.141 1,542 Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.650 1.802 -- 2005 1.490 1.650 77,266 2004 1.300 1.490 81,431 2003 1.000 1.300 4,508 Travelers Equity Income Subaccount (7/03).......... 2006 1.375 1.445 -- 2005 1.336 1.375 142,955 2004 1.235 1.336 149,482 2003 1.000 1.235 5,428 Travelers Federated High Yield Subaccount (9/03)... 2006 1.217 1.248 -- 2005 1.205 1.217 20,753 2004 1.109 1.205 20,766 2003 1.000 1.109 10,968
61 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Federated Stock Subaccount (6/03)........ 2006 1.413 1.463 -- 2005 1.362 1.413 2,035 2004 1.251 1.362 2,040 2003 1.000 1.251 2,041 Travelers Large Cap Subaccount (9/03).............. 2006 1.334 1.375 -- 2005 1.247 1.334 6,508 2004 1.189 1.247 2,620 2003 1.000 1.189 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.074 1.142 -- 2005 1.020 1.074 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.014 1.018 -- 2005 1.000 1.014 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.031 1.068 -- 2005 1.000 1.031 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.033 1.077 -- 2005 1.000 1.033 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.036 1.056 -- 2005 1.000 1.036 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.462 1.553 -- 2005 1.325 1.462 4,073 2004 1.162 1.325 4,107 2003 1.000 1.162 2,169 Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.462 1.547 -- 2005 1.440 1.462 19,683 2004 1.282 1.440 2,151 2003 1.000 1.282 -- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.253 1.294 -- 2005 1.236 1.253 208,354 2004 1.126 1.236 131,869 2003 1.000 1.126 21,411 Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.165 1.259 -- 2005 1.112 1.165 2,408 2004 0.977 1.112 --
62 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.556 1.788 -- 2005 1.443 1.556 4,377 2004 1.266 1.443 2,149 2003 1.000 1.266 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.361 1.444 -- 2005 1.304 1.361 -- 2004 1.192 1.304 -- 2003 1.000 1.192 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.009 1.062 -- 2005 1.000 1.009 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.108 1.120 -- 2005 1.086 1.108 12,099 2004 0.979 1.086 4,952 Travelers Quality Bond Subaccount (8/03)........... 2006 1.033 1.024 -- 2005 1.033 1.033 36,909 2004 1.015 1.033 36,710 2003 1.000 1.015 10,399 Travelers Strategic Equity Subaccount (7/03)....... 2006 1.340 1.398 -- 2005 1.334 1.340 -- 2004 1.229 1.334 -- 2003 1.000 1.229 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.021 1.175 -- 2005 1.000 1.021 2,540 Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.978 1.122 -- 2005 1.000 0.978 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.075 1.037 -- 2005 1.047 1.075 -- 2004 1.008 1.047 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.708 1.642 27,833 2006 1.495 1.708 27,839 2005 1.458 1.495 21,064 2004 1.261 1.458 14,305 2003 1.000 1.261 --
63 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.356 1.501 -- 2006 1.290 1.356 -- 2005 1.214 1.290 -- 2004 1.188 1.214 -- 2003 1.000 1.188 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.379 1.348 -- 2005 1.221 1.379 -- 2004 1.146 1.221 -- 2003 1.000 1.146 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.957 2.211 -- 2006 1.652 1.957 -- 2005 1.473 1.652 -- 2004 1.319 1.473 -- 2003 1.000 1.319 -- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.726 1.907 -- 2006 1.592 1.726 -- 2005 1.392 1.592 -- 2004 1.258 1.392 -- 2003 1.000 1.258 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.609 1.662 -- 2006 1.420 1.609 -- 2005 1.364 1.420 -- 2004 1.256 1.364 -- 2003 1.000 1.256 -- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.662 1.644 -- 2005 1.429 1.662 -- 2004 1.216 1.429 -- 2003 1.000 1.216 --
64 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.721 2.246 -- 2005 1.633 1.721 -- 2004 1.263 1.633 -- 2003 1.000 1.263 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.423 1.500 4,392 2006 1.242 1.423 4,345 2005 1.210 1.242 4,228 2004 1.171 1.210 3,893 2003 1.000 1.171 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.494 1.307 -- 2006 1.463 1.494 -- 2005 1.406 1.463 -- 2004 1.284 1.406 -- 2003 1.000 1.284 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.313 1.428 -- 2005 1.212 1.313 -- 2004 1.079 1.212 -- 2003 1.000 1.079 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.310 1.460 -- 2005 1.210 1.310 -- 2004 1.072 1.210 -- 2003 1.000 1.072 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.765 2.037 -- 2006 1.611 1.765 -- 2005 1.404 1.611 -- 2004 1.239 1.404 -- 2003 1.000 1.239 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.569 1.647 -- 2006 1.401 1.569 -- 2005 1.180 1.401 -- 2004 1.185 1.180 -- 2003 1.000 1.185 --
65 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 2.219 2.518 2,627 2006 2.007 2.219 2,693 2005 1.729 2.007 2,755 2004 1.410 1.729 3,090 2003 1.000 1.410 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.454 1.693 -- 2005 1.337 1.454 -- 2004 1.206 1.337 -- 2003 1.000 1.206 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.864 3.628 -- 2006 2.273 2.864 -- 2005 1.813 2.273 -- 2004 1.478 1.813 -- 2003 1.000 1.478 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 2.019 2.292 -- 2006 1.690 2.019 -- 2005 1.559 1.690 -- 2004 1.337 1.559 -- 2003 1.213 1.337 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.622 1.943 -- 2005 1.514 1.622 -- 2004 1.327 1.514 -- 2003 1.000 1.327 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.059 1.082 -- 2005 1.062 1.059 -- 2004 0.991 1.062 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.234 1.274 -- 2005 1.165 1.234 -- 2004 1.094 1.165 -- 2003 1.000 1.094 --
66 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.547 1.852 -- 2006 1.479 1.547 -- 2005 1.338 1.479 -- 2004 1.191 1.338 -- 2003 1.000 1.191 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.595 1.909 -- 2006 1.504 1.595 -- 2005 1.370 1.504 -- 2004 1.385 1.370 -- 2003 1.000 1.385 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.552 1.669 -- 2006 1.338 1.552 -- 2005 1.288 1.338 -- 2004 1.253 1.288 -- 2003 1.000 1.253 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.542 1.729 -- 2005 1.507 1.542 -- 2004 1.334 1.507 -- 2003 1.000 1.334 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.655 1.595 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.531 1.584 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.525 1.574 -- 2006 1.347 1.525 -- 2005 1.313 1.347 -- 2004 1.211 1.313 -- 2003 1.000 1.211 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.725 1.652 -- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.685 1.722 -- 2006 1.449 1.685 -- 2005 1.382 1.449 -- 2004 1.273 1.382 -- 2003 1.000 1.273 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.419 1.420 --
67 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.852 2.004 -- 2006 1.670 1.852 -- 2005 1.618 1.670 -- 2004 1.429 1.618 -- 2003 1.000 1.429 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.137 1.240 -- 2006 1.074 1.137 -- 2005 1.045 1.074 -- 2004 0.925 1.045 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.025 1.021 -- 2006 1.001 1.025 -- 2005 0.994 1.001 -- 2004 0.999 0.994 -- 2003 1.000 0.999 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.659 1.741 -- 2006 1.428 1.659 -- 2005 1.395 1.428 -- 2004 1.310 1.395 -- 2003 1.000 1.310 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.372 1.429 -- 2006 1.338 1.372 -- 2005 1.293 1.338 -- 2004 1.307 1.293 -- 2003 1.000 1.307 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.613 1.670 -- 2006 1.476 1.613 -- 2005 1.366 1.476 -- 2004 1.273 1.366 -- 2003 1.000 1.273 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.475 1.541 -- 2006 1.334 1.475 -- 2005 1.309 1.334 -- 2004 1.228 1.309 -- 2003 1.000 1.228 --
68 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.613 1.676 -- 2006 1.398 1.613 -- 2005 1.377 1.398 -- 2004 1.242 1.377 -- 2003 1.000 1.242 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.803 1.987 -- 2006 1.633 1.803 -- 2005 1.534 1.633 -- 2004 1.257 1.534 -- 2003 1.000 1.257 -- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.083 1.118 -- 2005 1.061 1.083 -- 2004 0.999 1.061 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.710 1.784 -- 2006 1.000 1.710 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.311 1.325 -- 2006 1.000 1.311 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.639 1.718 -- 2006 1.000 1.639 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.704 1.716 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.195 1.164 -- 2006 1.000 1.195 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.963 1.915 3,222 2006 1.000 1.963 3,255 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.685 2.162 -- 2006 1.000 1.685 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.219 1.080 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.181 1.235 -- 2006 1.000 1.181 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.314 1.381 -- 2006 1.000 1.314 --
69 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.077 1.102 -- 2006 1.000 1.077 -- MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.072 1.060 -- 2006 1.000 1.072 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.443 1.589 -- 2006 1.000 1.443 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.165 1.277 -- 2006 1.000 1.165 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.206 2.316 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.388 1.470 -- 2006 1.000 1.388 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.220 1.022 -- 2006 1.000 1.220 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.142 1.208 -- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.548 1.598 -- 2006 1.000 1.548 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.117 1.233 -- 2006 1.000 1.117 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.157 1.214 -- 2006 1.000 1.157 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.028 0.981 -- 2006 1.000 1.028 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.505 1.783 -- 2006 1.000 1.505 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.060 1.109 -- 2006 1.000 1.060 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.030 1.065 -- 2006 1.000 1.030 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.390 1.421 -- 2006 1.000 1.390 --
70 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.477 1.512 -- 2006 1.000 1.477 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.060 1.077 -- 2006 1.000 1.060 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.042 1.082 -- 2006 1.000 1.042 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.049 1.081 -- 2006 1.000 1.049 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.054 1.082 -- 2006 1.000 1.054 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.059 1.082 -- 2006 1.000 1.059 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.378 1.412 4,587 2006 1.000 1.378 4,478 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.051 1.098 -- 2006 0.996 1.051 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.068 1.147 -- 2006 1.000 1.068 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.149 1.193 -- 2006 1.000 1.149 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.071 1.100 -- 2006 1.000 1.071 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.999 1.008 -- 2005 0.987 0.999 -- 2004 0.994 0.987 -- 2003 1.000 0.994 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.095 1.156 -- 2005 1.052 1.095 -- 2004 0.979 1.052 --
71 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.115 1.137 -- 2006 1.125 1.115 -- 2005 1.121 1.125 -- 2004 1.046 1.121 -- 2003 1.000 1.046 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.075 1.150 -- 2006 1.053 1.075 -- 2005 1.045 1.053 -- 2004 1.013 1.045 -- 2003 1.000 1.013 -- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 2.049 2.218 -- 2006 1.631 2.049 -- 2005 1.478 1.631 -- 2004 1.293 1.478 -- 2003 1.000 1.293 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.155 2.301 -- 2006 1.868 2.155 -- 2005 1.774 1.868 -- 2004 1.429 1.774 -- 2003 1.000 1.429 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.373 1.462 -- 2005 1.283 1.373 -- 2004 1.225 1.283 -- 2003 1.000 1.225 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.177 1.254 -- 2005 1.192 1.177 -- 2004 1.140 1.192 -- 2003 1.000 1.140 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.645 1.797 -- 2005 1.488 1.645 -- 2004 1.299 1.488 -- 2003 1.000 1.299 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.371 1.440 -- 2005 1.334 1.371 -- 2004 1.234 1.334 -- 2003 1.000 1.234 --
72 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Federated High Yield Subaccount (9/03)... 2006 1.214 1.244 -- 2005 1.203 1.214 -- 2004 1.108 1.203 -- 2003 1.000 1.108 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.409 1.459 -- 2005 1.360 1.409 -- 2004 1.251 1.360 -- 2003 1.000 1.251 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.331 1.371 -- 2005 1.245 1.331 -- 2004 1.188 1.245 -- 2003 1.000 1.188 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.073 1.141 -- 2005 1.020 1.073 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.013 1.017 -- 2005 1.000 1.013 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.030 1.067 -- 2005 1.000 1.030 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.032 1.076 -- 2005 1.000 1.032 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.035 1.055 -- 2005 1.000 1.035 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.458 1.548 -- 2005 1.323 1.458 -- 2004 1.161 1.323 -- 2003 1.000 1.161 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.458 1.542 -- 2005 1.438 1.458 -- 2004 1.281 1.438 -- 2003 1.000 1.281 --
73 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.250 1.290 -- 2005 1.234 1.250 4,201 2004 1.125 1.234 3,929 2003 1.000 1.125 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.163 1.257 -- 2005 1.111 1.163 -- 2004 0.977 1.111 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.552 1.782 -- 2005 1.441 1.552 3,485 2004 1.265 1.441 3,601 2003 1.000 1.265 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.357 1.440 -- 2005 1.302 1.357 -- 2004 1.191 1.302 -- 2003 1.000 1.191 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.009 1.061 -- 2005 1.000 1.009 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.106 1.117 -- 2005 1.085 1.106 -- 2004 0.979 1.085 -- Travelers Quality Bond Subaccount (8/03)........... 2006 1.031 1.021 -- 2005 1.031 1.031 -- 2004 1.015 1.031 -- 2003 1.000 1.015 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.336 1.394 -- 2005 1.331 1.336 -- 2004 1.228 1.331 -- 2003 1.000 1.228 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.020 1.174 -- 2005 1.000 1.020 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.978 1.121 -- 2005 1.000 0.978 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.074 1.035 -- 2005 1.046 1.074 -- 2004 1.008 1.046 --
74 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.65% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.702 1.635 -- 2006 1.491 1.702 -- 2005 1.456 1.491 -- 2004 1.260 1.456 -- 2003 1.000 1.260 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.351 1.494 -- 2006 1.286 1.351 -- 2005 1.212 1.286 -- 2004 1.187 1.212 -- 2003 1.000 1.187 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.266 1.237 -- 2005 1.121 1.266 -- 2004 1.053 1.121 -- 2003 1.025 1.053 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.652 1.865 4,785 2006 1.395 1.652 4,785 2005 1.244 1.395 4,785 2004 1.115 1.244 -- 2003 1.000 1.115 -- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.489 1.645 11,876 2006 1.374 1.489 11,876 2005 1.203 1.374 11,876 2004 1.088 1.203 -- 2003 1.000 1.088 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.404 1.450 12,416 2006 1.240 1.404 12,416 2005 1.191 1.240 12,416 2004 1.098 1.191 -- 2003 1.000 1.098 --
75 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.501 1.485 -- 2005 1.292 1.501 -- 2004 1.099 1.292 -- 2003 1.052 1.099 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.515 1.976 -- 2005 1.438 1.515 -- 2004 1.113 1.438 -- 2003 1.000 1.113 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.320 1.390 -- 2006 1.152 1.320 -- 2005 1.123 1.152 -- 2004 1.087 1.123 -- 2003 1.000 1.087 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.246 1.089 -- 2006 1.221 1.246 -- 2005 1.174 1.221 -- 2004 1.072 1.174 -- 2003 1.000 1.072 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.312 1.426 -- 2005 1.211 1.312 -- 2004 1.079 1.211 -- 2003 1.034 1.079 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.309 1.459 -- 2005 1.209 1.309 -- 2004 1.072 1.209 -- 2003 1.035 1.072 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.560 1.799 4,602 2006 1.424 1.560 4,602 2005 1.242 1.424 4,602 2004 1.097 1.242 -- 2003 1.000 1.097 --
76 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.430 1.500 -- 2006 1.277 1.430 -- 2005 1.077 1.277 -- 2004 1.081 1.077 -- 2003 1.000 1.081 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 1.794 2.034 -- 2006 1.624 1.794 -- 2005 1.399 1.624 -- 2004 1.142 1.399 -- 2003 1.000 1.142 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.321 1.538 -- 2005 1.215 1.321 4,852 2004 1.097 1.215 -- 2003 1.000 1.097 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.309 2.924 -- 2006 1.834 2.309 -- 2005 1.464 1.834 -- 2004 1.194 1.464 -- 2003 1.000 1.194 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.678 1.904 -- 2006 1.405 1.678 -- 2005 1.297 1.405 -- 2004 1.113 1.297 -- 2003 1.000 1.113 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.357 1.625 -- 2005 1.268 1.357 4,698 2004 1.111 1.268 -- 2003 1.000 1.111 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.058 1.081 -- 2005 1.062 1.058 -- 2004 0.991 1.062 --
77 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.194 1.233 -- 2005 1.128 1.194 -- 2004 1.059 1.128 -- 2003 1.000 1.059 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.368 1.636 -- 2006 1.308 1.368 -- 2005 1.184 1.308 -- 2004 1.055 1.184 -- 2003 1.038 1.055 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.246 1.491 -- 2006 1.176 1.246 -- 2005 1.072 1.176 -- 2004 1.084 1.072 -- 2003 1.049 1.084 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.368 1.471 -- 2006 1.180 1.368 -- 2005 1.137 1.180 -- 2004 1.106 1.137 -- 2003 1.000 1.106 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.273 1.427 -- 2005 1.245 1.273 -- 2004 1.102 1.245 -- 2003 1.003 1.102 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.400 1.349 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.354 1.401 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.376 1.419 -- 2006 1.215 1.376 -- 2005 1.186 1.215 -- 2004 1.094 1.186 -- 2003 1.000 1.094 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.460 1.397 --
78 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.477 1.508 -- 2006 1.270 1.477 -- 2005 1.212 1.270 -- 2004 1.117 1.212 -- 2003 1.000 1.117 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.191 1.192 -- LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.442 1.559 -- 2006 1.301 1.442 -- 2005 1.261 1.301 -- 2004 1.114 1.261 -- 2003 1.000 1.114 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.136 1.238 -- 2006 1.073 1.136 -- 2005 1.045 1.073 -- 2004 0.925 1.045 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.023 1.019 -- 2006 0.999 1.023 -- 2005 0.993 0.999 -- 2004 0.998 0.993 -- 2003 0.998 0.998 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.404 1.473 -- 2006 1.209 1.404 -- 2005 1.182 1.209 -- 2004 1.110 1.182 -- 2003 1.000 1.110 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.152 1.200 -- 2006 1.124 1.152 -- 2005 1.087 1.124 -- 2004 1.100 1.087 -- 2003 0.983 1.100 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.365 1.413 -- 2006 1.250 1.365 -- 2005 1.157 1.250 -- 2004 1.079 1.157 -- 2003 1.000 1.079 --
79 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.305 1.363 -- 2006 1.181 1.305 -- 2005 1.159 1.181 -- 2004 1.088 1.159 -- 2003 1.000 1.088 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.438 1.494 -- 2006 1.247 1.438 -- 2005 1.229 1.247 -- 2004 1.109 1.229 -- 2003 1.000 1.109 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.581 1.742 -- 2006 1.433 1.581 -- 2005 1.347 1.433 -- 2004 1.104 1.347 -- 2003 1.000 1.104 -- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.082 1.116 -- 2005 1.060 1.082 -- 2004 0.999 1.060 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.448 1.510 -- 2006 1.000 1.448 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.245 1.258 -- 2006 1.000 1.245 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.493 1.565 -- 2006 1.000 1.493 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.552 1.563 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.194 1.162 -- 2006 1.000 1.194 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.750 1.706 -- 2006 1.000 1.750 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.521 1.951 -- 2006 1.000 1.521 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.218 1.078 --
80 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.179 1.233 -- 2006 1.000 1.179 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.237 1.300 -- 2006 1.000 1.237 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.077 1.101 6,850 2006 1.000 1.077 6,850 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.071 1.059 -- 2006 1.000 1.071 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.272 1.399 -- 2006 1.000 1.272 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.164 1.275 -- 2006 1.000 1.164 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.929 2.025 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.387 1.467 -- 2006 1.000 1.387 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.219 1.021 -- 2006 1.000 1.219 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.122 1.188 5,498 MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.420 1.466 -- 2006 1.000 1.420 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.116 1.232 -- 2006 1.000 1.116 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.155 1.211 -- 2006 1.000 1.155 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.028 0.980 -- 2006 1.000 1.028 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.243 1.471 -- 2006 1.000 1.243 --
81 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.058 1.106 -- 2006 1.000 1.058 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.032 1.066 -- 2006 1.000 1.032 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.263 1.290 -- 2006 1.000 1.263 -- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.317 1.347 -- 2006 1.000 1.317 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.060 1.076 -- 2006 1.000 1.060 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.042 1.081 -- 2006 1.000 1.042 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.049 1.080 -- 2006 1.000 1.049 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.054 1.081 -- 2006 1.000 1.054 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.059 1.081 -- 2006 1.000 1.059 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.297 1.329 -- 2006 1.000 1.297 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.050 1.097 6,953 2006 0.996 1.050 6,953 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.068 1.146 -- 2006 1.000 1.068 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.148 1.191 -- 2006 1.000 1.148 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.069 1.098 -- 2006 1.000 1.069 --
82 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.002 1.010 -- 2005 0.990 1.002 -- 2004 0.997 0.990 -- 2003 1.000 0.997 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.094 1.155 -- 2005 1.052 1.094 -- 2004 0.979 1.052 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.096 1.118 -- 2006 1.107 1.096 5,498 2005 1.103 1.107 5,498 2004 1.030 1.103 -- 2003 0.997 1.030 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.073 1.147 -- 2006 1.051 1.073 -- 2005 1.044 1.051 -- 2004 1.012 1.044 -- 2003 1.000 1.012 -- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 1.792 1.940 -- 2006 1.427 1.792 -- 2005 1.294 1.427 -- 2004 1.133 1.294 -- 2003 1.000 1.133 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 1.736 1.853 -- 2006 1.505 1.736 -- 2005 1.431 1.505 -- 2004 1.153 1.431 -- 2003 1.000 1.153 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.210 1.288 -- 2005 1.132 1.210 -- 2004 1.081 1.132 -- 2003 1.056 1.081 --
83 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.109 1.181 -- 2005 1.124 1.109 -- 2004 1.075 1.124 -- 2003 1.000 1.075 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.394 1.522 -- 2005 1.261 1.394 -- 2004 1.102 1.261 -- 2003 1.000 1.102 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.223 1.284 -- 2005 1.191 1.223 -- 2004 1.102 1.191 -- 2003 1.000 1.102 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.154 1.182 -- 2005 1.144 1.154 -- 2004 1.054 1.144 -- 2003 1.000 1.054 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.271 1.316 -- 2005 1.227 1.271 -- 2004 1.129 1.227 -- 2003 1.000 1.129 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.210 1.247 -- 2005 1.133 1.210 -- 2004 1.081 1.133 -- 2003 1.000 1.081 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.073 1.140 -- 2005 1.020 1.073 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.013 1.017 -- 2005 1.000 1.013 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.030 1.066 -- 2005 1.000 1.030 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.032 1.076 -- 2005 1.000 1.032 --
84 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.035 1.055 -- 2005 1.000 1.035 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.329 1.411 -- 2005 1.207 1.329 -- 2004 1.059 1.207 -- 2003 1.000 1.059 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.205 1.274 -- 2005 1.189 1.205 -- 2004 1.060 1.189 -- 2003 1.000 1.060 -- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.177 1.215 -- 2005 1.163 1.177 -- 2004 1.061 1.163 -- 2003 1.000 1.061 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.162 1.256 -- 2005 1.111 1.162 -- 2004 0.977 1.111 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.384 1.589 -- 2005 1.286 1.384 -- 2004 1.130 1.286 -- 2003 1.000 1.130 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.246 1.322 -- 2005 1.196 1.246 -- 2004 1.094 1.196 -- 2003 1.000 1.094 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.009 1.061 -- 2005 1.000 1.009 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.106 1.116 -- 2005 1.085 1.106 -- 2004 0.979 1.085 -- Travelers Quality Bond Subaccount (8/03)........... 2006 1.029 1.019 -- 2005 1.030 1.029 -- 2004 1.014 1.030 -- 2003 1.000 1.014 --
85 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.162 1.213 -- 2005 1.159 1.162 -- 2004 1.069 1.159 -- 2003 1.000 1.069 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.020 1.174 -- 2005 1.000 1.020 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.978 1.121 -- 2005 1.000 0.978 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.073 1.034 -- 2005 1.046 1.073 -- 2004 1.008 1.046 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.491 1.432 -- 2006 1.307 1.491 -- 2005 1.277 1.307 -- 2004 1.106 1.277 -- 2003 1.000 1.106 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.229 1.359 -- 2006 1.171 1.229 -- 2005 1.104 1.171 -- 2004 1.090 1.104 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.376 1.343 -- 2005 1.219 1.376 -- 2004 1.145 1.219 -- 2003 1.000 1.145 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.950 2.201 621 2006 1.648 1.950 642 2005 1.470 1.648 119 2004 1.318 1.470 -- 2003 1.000 1.318 --
86 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.719 1.898 -- 2006 1.587 1.719 -- 2005 1.390 1.587 -- 2004 1.258 1.390 -- 2003 1.000 1.258 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.603 1.654 58,763 2006 1.416 1.603 58,763 2005 1.361 1.416 58,763 2004 1.255 1.361 58,763 2003 1.000 1.255 -- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.658 1.639 -- 2005 1.427 1.658 230 2004 1.215 1.427 -- 2003 1.000 1.215 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.717 2.237 -- 2005 1.630 1.717 -- 2004 1.263 1.630 -- 2003 1.000 1.263 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.418 1.492 -- 2006 1.239 1.418 -- 2005 1.208 1.239 -- 2004 1.170 1.208 -- 2003 1.000 1.170 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.488 1.300 1,042 2006 1.459 1.488 833 2005 1.404 1.459 130 2004 1.283 1.404 -- 2003 1.000 1.283 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.310 1.424 -- 2005 1.210 1.310 -- 2004 1.078 1.210 -- 2003 1.000 1.078 --
87 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.308 1.457 -- 2005 1.208 1.308 -- 2004 1.072 1.208 -- 2003 1.000 1.072 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.759 2.027 1,738 2006 1.606 1.759 1,739 2005 1.401 1.606 1,741 2004 1.238 1.401 1,744 2003 1.000 1.238 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.563 1.639 -- 2006 1.397 1.563 -- 2005 1.178 1.397 -- 2004 1.184 1.178 -- 2003 1.000 1.184 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 2.211 2.506 3,335 2006 2.002 2.211 3,364 2005 1.726 2.002 2,457 2004 1.409 1.726 2,264 2003 1.000 1.409 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.450 1.687 -- 2005 1.334 1.450 57,728 2004 1.206 1.334 -- 2003 1.000 1.206 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.854 3.611 1,776 2006 2.267 2.854 1,866 2005 1.810 2.267 1,497 2004 1.477 1.810 1,411 2003 1.000 1.477 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 2.011 2.282 27,954 2006 1.685 2.011 29,061 2005 1.557 1.685 10,361 2004 1.336 1.557 11,039 2003 1.213 1.336 --
88 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.617 1.936 -- 2005 1.512 1.617 -- 2004 1.326 1.512 -- 2003 1.000 1.326 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.057 1.080 -- 2005 1.062 1.057 -- 2004 0.991 1.062 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.231 1.271 -- 2005 1.163 1.231 -- 2004 1.093 1.163 -- 2003 1.000 1.093 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.541 1.843 -- 2006 1.475 1.541 -- 2005 1.336 1.475 -- 2004 1.190 1.336 -- 2003 1.000 1.190 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.589 1.900 -- 2006 1.500 1.589 -- 2005 1.368 1.500 -- 2004 1.384 1.368 -- 2003 1.000 1.384 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.546 1.662 -- 2006 1.334 1.546 -- 2005 1.286 1.334 -- 2004 1.252 1.286 -- 2003 1.000 1.252 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.538 1.723 -- 2005 1.505 1.538 -- 2004 1.333 1.505 -- 2003 1.000 1.333 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.648 1.587 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.525 1.577 --
89 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.520 1.567 -- 2006 1.343 1.520 -- 2005 1.311 1.343 -- 2004 1.210 1.311 -- 2003 1.000 1.210 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.718 1.644 3,205 LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.679 1.714 -- 2006 1.445 1.679 -- 2005 1.380 1.445 -- 2004 1.272 1.380 -- 2003 1.000 1.272 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.413 1.413 3,281 LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.845 1.995 -- 2006 1.665 1.845 -- 2005 1.615 1.665 -- 2004 1.428 1.615 -- 2003 1.000 1.428 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.134 1.236 -- 2006 1.072 1.134 -- 2005 1.045 1.072 -- 2004 0.925 1.045 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.021 1.017 -- 2006 0.998 1.021 -- 2005 0.992 0.998 -- 2004 0.998 0.992 -- 2003 1.000 0.998 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.653 1.734 -- 2006 1.424 1.653 3,208 2005 1.393 1.424 3,212 2004 1.309 1.393 3,216 2003 1.000 1.309 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.367 1.423 -- 2006 1.334 1.367 3,285 2005 1.290 1.334 3,288 2004 1.306 1.290 3,293 2003 1.000 1.306 --
90 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.607 1.663 -- 2006 1.472 1.607 -- 2005 1.364 1.472 -- 2004 1.272 1.364 -- 2003 1.000 1.272 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.470 1.535 -- 2006 1.331 1.470 -- 2005 1.307 1.331 -- 2004 1.227 1.307 -- 2003 1.000 1.227 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.607 1.669 -- 2006 1.394 1.607 1,544 2005 1.374 1.394 275 2004 1.242 1.374 -- 2003 1.000 1.242 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.797 1.979 -- 2006 1.629 1.797 -- 2005 1.532 1.629 -- 2004 1.257 1.532 -- 2003 1.000 1.257 -- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.081 1.115 -- 2005 1.060 1.081 73,056 2004 0.999 1.060 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.704 1.776 -- 2006 1.000 1.704 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.306 1.319 2,944 2006 1.000 1.306 2,947 MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.633 1.711 -- 2006 1.000 1.633 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.697 1.708 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.193 1.161 -- 2006 1.000 1.193 --
91 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.956 1.906 -- 2006 1.000 1.956 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.679 2.152 1,313 2006 1.000 1.679 1,462 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.217 1.077 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.178 1.231 73,056 2006 1.000 1.178 73,056 MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.309 1.374 -- 2006 1.000 1.309 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.077 1.100 91,929 2006 1.000 1.077 89,426 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.071 1.058 -- 2006 1.000 1.071 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.438 1.581 -- 2006 1.000 1.438 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.163 1.274 -- 2006 1.000 1.163 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.197 2.305 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.385 1.465 -- 2006 1.000 1.385 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.219 1.020 -- 2006 1.000 1.219 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.137 1.203 -- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.542 1.591 -- 2006 1.000 1.542 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.115 1.231 -- 2006 1.000 1.115 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.154 1.209 -- 2006 1.000 1.154 --
92 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.028 0.979 -- 2006 1.000 1.028 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.500 1.774 -- 2006 1.000 1.500 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.056 1.103 74,905 2006 1.000 1.056 74,905 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.026 1.060 43,594 2006 1.000 1.026 17,507 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.384 1.414 -- 2006 1.000 1.384 -- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.471 1.505 58,213 2006 1.000 1.471 58,213 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.059 1.075 -- 2006 1.000 1.059 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.042 1.080 -- 2006 1.000 1.042 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.048 1.079 -- 2006 1.000 1.048 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.053 1.080 -- 2006 1.000 1.053 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.058 1.080 -- 2006 1.000 1.058 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.373 1.406 1,895 2006 1.000 1.373 1,897 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.050 1.096 -- 2006 0.996 1.050 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.068 1.145 -- 2006 1.000 1.068 --
93 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.146 1.189 -- 2006 1.000 1.146 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.068 1.096 -- 2006 1.000 1.068 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.997 1.005 -- 2005 0.986 0.997 18,645 2004 0.993 0.986 19,865 2003 1.000 0.993 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.093 1.154 -- 2005 1.052 1.093 -- 2004 0.979 1.052 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.111 1.132 -- 2006 1.122 1.111 -- 2005 1.119 1.122 -- 2004 1.045 1.119 -- 2003 1.000 1.045 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.071 1.145 210,920 2006 1.050 1.071 219,980 2005 1.043 1.050 229,405 2004 1.012 1.043 239,136 2003 1.000 1.012 248,715 Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 2.041 2.209 -- 2006 1.626 2.041 -- 2005 1.475 1.626 -- 2004 1.292 1.475 -- 2003 1.000 1.292 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.147 2.292 -- 2006 1.863 2.147 -- 2005 1.771 1.863 -- 2004 1.428 1.771 -- 2003 1.000 1.428 --
94 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.369 1.457 -- 2005 1.281 1.369 -- 2004 1.224 1.281 -- 2003 1.000 1.224 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.174 1.250 -- 2005 1.190 1.174 -- 2004 1.139 1.190 -- 2003 1.000 1.139 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.641 1.791 -- 2005 1.485 1.641 -- 2004 1.298 1.485 -- 2003 1.000 1.298 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.367 1.436 -- 2005 1.332 1.367 58,213 2004 1.233 1.332 -- 2003 1.000 1.233 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.210 1.241 -- 2005 1.201 1.210 2,951 2004 1.107 1.201 2,954 2003 1.000 1.107 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.405 1.454 -- 2005 1.358 1.405 -- 2004 1.250 1.358 -- 2003 1.000 1.250 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.327 1.367 -- 2005 1.243 1.327 -- 2004 1.187 1.243 -- 2003 1.000 1.187 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.072 1.140 -- 2005 1.020 1.072 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.013 1.016 -- 2005 1.000 1.013 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.030 1.066 -- 2005 1.000 1.030 --
95 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.032 1.076 -- 2005 1.000 1.032 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.035 1.054 -- 2005 1.000 1.035 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.454 1.544 -- 2005 1.321 1.454 -- 2004 1.160 1.321 -- 2003 1.000 1.160 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.454 1.538 -- 2005 1.436 1.454 -- 2004 1.280 1.436 -- 2003 1.000 1.280 -- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.246 1.286 -- 2005 1.232 1.246 1,899 2004 1.125 1.232 1,901 2003 1.000 1.125 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.161 1.254 -- 2005 1.110 1.161 -- 2004 0.977 1.110 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.548 1.777 -- 2005 1.438 1.548 -- 2004 1.265 1.438 -- 2003 1.000 1.265 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.354 1.435 -- 2005 1.300 1.354 -- 2004 1.190 1.300 -- 2003 1.000 1.190 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.008 1.061 -- 2005 1.000 1.008 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.105 1.115 -- 2005 1.084 1.105 -- 2004 0.979 1.084 --
96 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Quality Bond Subaccount (8/03)........... 2006 1.028 1.018 -- 2005 1.029 1.028 74,905 2004 1.014 1.029 -- 2003 1.000 1.014 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.333 1.390 -- 2005 1.329 1.333 -- 2004 1.227 1.329 -- 2003 1.000 1.227 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.020 1.173 -- 2005 1.000 1.020 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.977 1.121 -- 2005 1.000 0.977 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.072 1.033 -- 2005 1.045 1.072 -- 2004 1.007 1.045 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.696 1.627 834 2006 1.487 1.696 732 2005 1.453 1.487 129 2004 1.259 1.453 -- 2003 1.000 1.259 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.346 1.487 -- 2006 1.283 1.346 -- 2005 1.210 1.283 -- 2004 1.186 1.210 -- 2003 1.000 1.186 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.160 1.132 -- 2005 1.000 1.160 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.326 1.496 -- 2006 1.121 1.326 -- 2005 1.000 1.121 --
97 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.242 1.371 2,181 2006 1.148 1.242 2,323 2005 1.000 1.148 1,179 American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.180 1.218 -- 2006 1.043 1.180 -- 2005 1.000 1.043 -- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.170 1.157 -- 2005 1.000 1.170 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.088 1.417 -- 2005 1.000 1.088 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.156 1.216 -- 2006 1.010 1.156 -- 2005 1.000 1.010 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.082 0.945 -- 2006 1.062 1.082 -- 2005 1.000 1.062 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.081 1.175 -- 2005 1.000 1.081 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.107 1.233 -- 2005 1.000 1.107 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.242 1.431 -- 2006 1.135 1.242 -- 2005 1.000 1.135 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.321 1.384 -- 2006 1.181 1.321 -- 2005 1.000 1.181 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 1.261 1.429 -- 2006 1.143 1.261 -- 2005 1.000 1.143 --
98 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.084 1.260 -- 2005 1.000 1.084 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 1.525 1.929 -- 2006 1.212 1.525 -- 2005 1.000 1.212 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.283 1.455 864 2006 1.076 1.283 924 2005 1.000 1.076 251 FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.066 1.275 -- 2005 1.000 1.066 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 0.990 1.012 -- 2005 1.000 0.990 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.062 1.097 -- 2005 1.000 1.062 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.185 1.416 -- 2006 1.135 1.185 -- 2005 1.000 1.135 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.193 1.426 -- 2006 1.127 1.193 -- 2005 1.000 1.127 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.209 1.299 -- 2006 1.044 1.209 -- 2005 1.000 1.044 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.033 1.157 -- 2005 1.000 1.033 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.223 1.178 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.180 1.220 --
99 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.164 1.200 1,003 2006 1.030 1.164 992 2005 1.000 1.030 6,709 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.250 1.196 -- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.219 1.244 -- 2006 1.049 1.219 -- 2005 1.000 1.049 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.120 1.120 -- LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.195 1.291 -- 2006 1.079 1.195 -- 2005 1.000 1.079 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.108 1.207 -- 2006 1.047 1.108 -- 2005 1.000 1.047 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.027 1.023 -- 2006 1.005 1.027 -- 2005 1.000 1.005 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.203 1.262 -- 2006 1.037 1.203 -- 2005 1.000 1.037 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.083 1.128 -- 2006 1.058 1.083 -- 2005 1.000 1.058 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.193 1.234 -- 2006 1.094 1.193 -- 2005 1.000 1.094 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.138 1.188 -- 2006 1.031 1.138 -- 2005 1.000 1.031 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.184 1.229 -- 2006 1.028 1.184 -- 2005 1.000 1.028 6,325
100 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.188 1.308 -- 2006 1.077 1.188 1,483 2005 1.000 1.077 989 Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.021 1.053 -- 2005 1.000 1.021 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.139 1.186 -- 2006 1.000 1.139 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.080 1.090 -- 2006 1.000 1.080 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.227 1.286 -- 2006 1.000 1.227 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.275 1.283 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.192 1.160 -- 2006 1.000 1.192 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.354 1.318 -- 2006 1.000 1.354 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.185 1.518 -- 2006 1.000 1.185 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.216 1.076 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.111 1.160 -- 2006 1.000 1.111 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.116 1.171 -- 2006 1.000 1.116 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.076 1.099 -- 2006 1.000 1.076 -- MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.071 1.058 1,647 2006 1.000 1.071 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.138 1.250 -- 2006 1.000 1.138 --
101 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.163 1.272 -- 2006 1.000 1.163 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.485 1.557 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.238 1.308 -- 2006 1.000 1.238 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.218 1.020 -- 2006 1.000 1.218 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.006 1.064 -- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.193 1.230 -- 2006 1.000 1.193 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.115 1.230 -- 2006 1.000 1.115 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.054 1.104 -- 2006 1.000 1.054 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.027 0.979 1,806 2006 1.000 1.027 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.082 1.279 -- 2006 1.000 1.082 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.020 1.065 -- 2006 1.000 1.020 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.040 1.073 -- 2006 1.000 1.040 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.124 1.148 -- 2006 1.000 1.124 -- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.110 1.135 -- 2006 1.000 1.110 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.059 1.074 -- 2006 1.000 1.059 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.041 1.080 -- 2006 1.000 1.041 --
102 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.048 1.079 -- 2006 1.000 1.048 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.053 1.079 -- 2006 1.000 1.053 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.058 1.079 -- 2006 1.000 1.058 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.115 1.141 1,597 2006 1.000 1.115 1,550 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.050 1.096 -- 2006 0.996 1.050 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.067 1.144 -- 2006 1.000 1.067 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.074 1.114 -- 2006 1.000 1.074 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 0.997 1.023 -- 2006 1.000 0.997 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.010 1.019 -- 2005 1.000 1.010 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.044 1.103 -- 2005 1.000 1.044 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 0.983 1.002 -- 2006 0.993 0.983 -- 2005 1.000 0.993 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.022 1.092 -- 2006 1.002 1.022 -- 2005 1.000 1.002 --
103 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 1.380 1.493 -- 2006 1.100 1.380 -- 2005 1.000 1.100 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 1.218 1.300 -- 2006 1.057 1.218 1,417 2005 1.000 1.057 753 The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.084 1.153 -- 2005 1.000 1.084 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.001 1.066 -- 2005 1.000 1.001 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.097 1.198 -- 2005 1.000 1.097 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.032 1.084 -- 2005 1.000 1.032 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.001 1.026 -- 2005 1.000 1.001 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.034 1.070 -- 2005 1.000 1.034 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.078 1.111 -- 2005 1.000 1.078 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.072 1.139 -- 2005 1.020 1.072 12,258 Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.013 1.016 -- 2005 1.000 1.013 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.030 1.066 -- 2005 1.000 1.030 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.032 1.075 -- 2005 1.000 1.032 --
104 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.034 1.054 -- 2005 1.000 1.034 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.093 1.160 -- 2005 1.000 1.093 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.049 1.109 -- 2005 1.000 1.049 -- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.012 1.044 -- 2005 1.000 1.012 781 Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.039 1.122 -- 2005 1.000 1.039 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.072 1.230 -- 2005 1.000 1.072 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.048 1.111 -- 2005 1.000 1.048 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.008 1.060 -- 2005 1.000 1.008 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.010 1.019 -- 2005 1.000 1.010 -- Travelers Quality Bond Subaccount (8/03)........... 2006 0.993 0.983 -- 2005 1.000 0.993 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.047 1.092 -- 2005 1.000 1.047 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.020 1.173 -- 2005 1.000 1.020 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.977 1.120 -- 2005 1.000 0.977 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.001 0.964 -- 2005 1.000 1.001 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.177 1.129 1,038 2006 1.032 1.177 982 2005 1.000 1.032 517
105 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.80% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.128 1.245 -- 2006 1.075 1.128 -- 2005 1.000 1.075 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.372 1.338 -- 2005 1.217 1.372 21,531 2004 1.144 1.217 21,531 2003 1.000 1.144 21,531 American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.943 2.191 189,451 2006 1.644 1.943 221,402 2005 1.468 1.644 203,231 2004 1.317 1.468 149,448 2003 1.000 1.317 -- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.713 1.889 1,035,305 2006 1.583 1.713 1,143,616 2005 1.388 1.583 1,142,869 2004 1.257 1.388 906,086 2003 1.000 1.257 53,198 American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.597 1.646 1,111,600 2006 1.412 1.597 1,229,681 2005 1.359 1.412 1,273,647 2004 1.254 1.359 946,118 2003 1.000 1.254 49,264 Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.653 1.634 -- 2005 1.425 1.653 40,076 2004 1.214 1.425 25,833 2003 1.000 1.214 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.712 2.229 -- 2005 1.627 1.712 212,500 2004 1.262 1.627 172,018 2003 1.000 1.262 45,052
106 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.413 1.486 24,300 2006 1.235 1.413 24,322 2005 1.206 1.235 23,679 2004 1.169 1.206 22,394 2003 1.000 1.169 21,793 Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.483 1.294 153,358 2006 1.455 1.483 153,319 2005 1.401 1.455 152,580 2004 1.282 1.401 109,418 2003 1.000 1.282 38,167 FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.308 1.421 -- 2005 1.209 1.308 171,237 2004 1.078 1.209 94,261 2003 1.000 1.078 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.305 1.453 -- 2005 1.207 1.305 121,514 2004 1.072 1.207 107,614 2003 1.000 1.072 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.752 2.018 175,597 2006 1.602 1.752 190,461 2005 1.399 1.602 161,829 2004 1.237 1.399 115,023 2003 1.000 1.237 1,947 VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.557 1.631 2,824 2006 1.394 1.557 -- 2005 1.176 1.394 -- 2004 1.183 1.176 -- 2003 1.000 1.183 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 2.203 2.494 179,228 2006 1.997 2.203 198,821 2005 1.723 1.997 228,557 2004 1.408 1.723 161,983 2003 1.000 1.408 18,696
107 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.446 1.680 -- 2005 1.332 1.446 226,330 2004 1.205 1.332 156,958 2003 1.000 1.205 11,224 FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.843 3.594 40,616 2006 2.261 2.843 39,584 2005 1.807 2.261 36,919 2004 1.476 1.807 30,080 2003 1.000 1.476 2,147 FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 2.004 2.271 78,110 2006 1.681 2.004 81,586 2005 1.554 1.681 77,833 2004 1.335 1.554 31,291 2003 1.213 1.335 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.613 1.929 -- 2005 1.509 1.613 232,706 2004 1.325 1.509 139,778 2003 1.000 1.325 7,958 High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.055 1.078 -- 2005 1.061 1.055 190,411 2004 0.991 1.061 170,089 Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.227 1.267 -- 2005 1.161 1.227 5,484 2004 1.092 1.161 5,484 2003 1.000 1.092 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.535 1.834 -- 2006 1.471 1.535 -- 2005 1.334 1.471 -- 2004 1.190 1.334 -- 2003 1.000 1.190 --
108 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.583 1.891 6,694 2006 1.496 1.583 4,106 2005 1.366 1.496 4,282 2004 1.383 1.366 4,212 2003 1.000 1.383 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.541 1.654 13,773 2006 1.331 1.541 14,793 2005 1.284 1.331 14,000 2004 1.251 1.284 13,137 2003 1.000 1.251 4,709 Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.533 1.717 -- 2005 1.502 1.533 38,722 2004 1.332 1.502 17,540 2003 1.000 1.332 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.641 1.580 157,063 LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.519 1.569 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.514 1.559 303,466 2006 1.340 1.514 319,373 2005 1.309 1.340 328,028 2004 1.210 1.309 335,639 2003 1.000 1.210 132,206 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.712 1.636 122,206 LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.673 1.706 136,264 2006 1.441 1.673 159,022 2005 1.378 1.441 168,014 2004 1.272 1.378 161,246 2003 1.000 1.272 72,552 LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.407 1.407 84,731 LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.839 1.985 134,812 2006 1.661 1.839 137,060 2005 1.613 1.661 140,022 2004 1.427 1.613 100,647 2003 1.000 1.427 42,389
109 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.131 1.231 -- 2006 1.070 1.131 -- 2005 1.044 1.070 -- 2004 0.924 1.044 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.018 1.013 5,099 2006 0.996 1.018 5,078 2005 0.991 0.996 5,058 2004 0.998 0.991 4,481 2003 1.000 0.998 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.647 1.727 -- 2006 1.421 1.647 124,578 2005 1.391 1.421 127,836 2004 1.308 1.391 125,494 2003 1.000 1.308 18,909 LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.362 1.417 -- 2006 1.331 1.362 82,732 2005 1.288 1.331 81,904 2004 1.306 1.288 34,345 2003 1.000 1.306 7,268 Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.601 1.656 -- 2006 1.469 1.601 162,013 2005 1.361 1.469 159,806 2004 1.271 1.361 118,346 2003 1.000 1.271 28,519 LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.465 1.529 -- 2006 1.327 1.465 -- 2005 1.305 1.327 -- 2004 1.226 1.305 -- 2003 1.000 1.226 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.601 1.663 -- 2006 1.391 1.601 253,456 2005 1.372 1.391 259,387 2004 1.241 1.372 188,037 2003 1.000 1.241 16,267
110 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.790 1.971 -- 2006 1.625 1.790 190,620 2005 1.529 1.625 236,390 2004 1.256 1.529 209,822 2003 1.000 1.256 23,535 Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.080 1.113 -- 2005 1.059 1.080 104,620 2004 0.999 1.059 109,870 Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.698 1.768 126,062 2006 1.000 1.698 131,042 MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.302 1.313 287,177 2006 1.000 1.302 138,504 MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.627 1.705 -- 2006 1.000 1.627 111,494 MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.690 1.700 103,063 MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.192 1.158 -- 2006 1.000 1.192 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.949 1.897 116,766 2006 1.000 1.949 115,045 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.673 2.142 41,245 2006 1.000 1.673 48,445 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.215 1.075 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.175 1.226 82,030 2006 1.000 1.175 82,008 MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.304 1.368 37,327 2006 1.000 1.304 37,064 MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.076 1.098 659,851 2006 1.000 1.076 388,115 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.070 1.057 284,716 2006 1.000 1.070 --
111 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.433 1.574 18,679 2006 1.000 1.433 19,262 MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.162 1.270 -- 2006 1.000 1.162 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.188 2.294 39,743 MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.381 1.459 45,391 2006 1.000 1.381 18,848 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.218 1.019 333,276 2006 1.000 1.218 322,183 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.132 1.197 83,094 MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.536 1.583 3,405 2006 1.000 1.536 3,409 MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.114 1.229 -- 2006 1.000 1.114 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.151 1.205 63,618 2006 1.000 1.151 74,001 MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.027 0.978 352,914 2006 1.000 1.027 206,695 Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.494 1.766 66,261 2006 1.000 1.494 66,494 MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.053 1.098 106,819 2006 1.000 1.053 107,985 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.023 1.055 517,156 2006 1.000 1.023 277,205 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.379 1.407 131,493 2006 1.000 1.379 133,617 MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.466 1.498 164,895 2006 1.000 1.466 181,470 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.059 1.073 -- 2006 1.000 1.059 --
112 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.041 1.079 -- 2006 1.000 1.041 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.047 1.078 -- 2006 1.000 1.047 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.053 1.078 -- 2006 1.000 1.053 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.058 1.078 -- 2006 1.000 1.058 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.368 1.399 395,298 2006 1.000 1.368 412,555 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.049 1.095 559,814 2006 0.996 1.049 626,421 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.067 1.143 29,418 2006 1.000 1.067 29,418 MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.143 1.186 -- 2006 1.000 1.143 179,727 MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.065 1.092 12,146 2006 1.000 1.065 11,821 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.994 1.002 -- 2005 0.984 0.994 43,974 2004 0.992 0.984 36,220 2003 1.000 0.992 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.091 1.152 -- 2005 1.051 1.091 55,601 2004 0.978 1.051 28,670 PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.107 1.128 -- 2006 1.119 1.107 110,141 2005 1.117 1.119 107,978 2004 1.045 1.117 75,765 2003 1.000 1.045 --
113 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.067 1.139 495,356 2006 1.047 1.067 439,809 2005 1.041 1.047 433,544 2004 1.011 1.041 332,672 2003 1.000 1.011 85,993 Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 2.034 2.200 -- 2006 1.622 2.034 40,574 2005 1.473 1.622 41,695 2004 1.291 1.473 42,749 2003 1.000 1.291 18,770 Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.139 2.283 -- 2006 1.858 2.139 103,718 2005 1.768 1.858 102,688 2004 1.427 1.768 75,102 2003 1.000 1.427 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.365 1.453 -- 2005 1.279 1.365 18,892 2004 1.224 1.279 9,313 2003 1.000 1.224 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.170 1.247 -- 2005 1.188 1.170 52,122 2004 1.139 1.188 43,059 2003 1.000 1.139 7,528 Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.637 1.786 -- 2005 1.483 1.637 134,671 2004 1.297 1.483 128,859 2003 1.000 1.297 13,688 Travelers Equity Income Subaccount (7/03).......... 2006 1.364 1.432 -- 2005 1.330 1.364 183,501 2004 1.233 1.330 158,224 2003 1.000 1.233 20,772 Travelers Federated High Yield Subaccount (9/03)... 2006 1.207 1.237 -- 2005 1.199 1.207 145,289 2004 1.107 1.199 120,456 2003 1.000 1.107 45,803
114 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Federated Stock Subaccount (6/03)........ 2006 1.401 1.450 -- 2005 1.355 1.401 35,349 2004 1.249 1.355 88,981 2003 1.000 1.249 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.324 1.363 -- 2005 1.241 1.324 127,209 2004 1.186 1.241 118,688 2003 1.000 1.186 51,004 Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.072 1.139 -- 2005 1.020 1.072 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.013 1.016 -- 2005 1.000 1.013 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.029 1.065 -- 2005 1.000 1.029 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.031 1.075 -- 2005 1.000 1.031 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.034 1.053 -- 2005 1.000 1.034 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.451 1.539 -- 2005 1.319 1.451 114,623 2004 1.159 1.319 116,929 2003 1.000 1.159 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.450 1.533 -- 2005 1.433 1.450 65,931 2004 1.280 1.433 39,384 2003 1.000 1.280 10,082 Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.243 1.282 -- 2005 1.230 1.243 569,608 2004 1.124 1.230 414,664 2003 1.000 1.124 231,203 Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.159 1.252 -- 2005 1.109 1.159 18,855 2004 0.977 1.109 18,861
115 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.544 1.772 -- 2005 1.436 1.544 58,937 2004 1.264 1.436 55,863 2003 1.000 1.264 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.350 1.431 -- 2005 1.297 1.350 3,412 2004 1.189 1.297 3,416 2003 1.000 1.189 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.008 1.060 -- 2005 1.000 1.008 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.103 1.113 -- 2005 1.084 1.103 74,459 2004 0.979 1.084 52,334 Travelers Quality Bond Subaccount (8/03)........... 2006 1.025 1.015 -- 2005 1.027 1.025 105,771 2004 1.013 1.027 86,898 2003 1.000 1.013 4,955 Travelers Strategic Equity Subaccount (7/03)....... 2006 1.329 1.386 -- 2005 1.327 1.329 5,475 2004 1.226 1.327 10,950 2003 1.000 1.226 10,950 Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.019 1.173 -- 2005 1.000 1.019 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.977 1.120 -- 2005 1.000 0.977 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.070 1.031 -- 2005 1.045 1.070 118,408 2004 1.007 1.045 116,718 Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.689 1.620 161,132 2006 1.483 1.689 180,598 2005 1.451 1.483 179,991 2004 1.259 1.451 125,674 2003 1.000 1.259 1,953
116 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.85% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.341 1.480 -- 2006 1.279 1.341 -- 2005 1.208 1.279 -- 2004 1.185 1.208 -- 2003 1.000 1.185 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.260 1.229 -- 2005 1.119 1.260 -- 2004 1.052 1.119 -- 2003 1.025 1.052 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.641 1.849 -- 2006 1.389 1.641 -- 2005 1.241 1.389 -- 2004 1.114 1.241 -- 2003 1.000 1.114 -- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.480 1.631 -- 2006 1.368 1.480 -- 2005 1.200 1.368 -- 2004 1.087 1.200 -- 2003 1.000 1.087 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.395 1.438 -- 2006 1.234 1.395 -- 2005 1.188 1.234 -- 2004 1.097 1.188 -- 2003 1.000 1.097 -- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.494 1.477 -- 2005 1.288 1.494 -- 2004 1.098 1.288 -- 2003 1.052 1.098 --
117 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.508 1.963 -- 2005 1.434 1.508 -- 2004 1.113 1.434 -- 2003 1.000 1.113 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.311 1.378 -- 2006 1.147 1.311 -- 2005 1.120 1.147 -- 2004 1.087 1.120 -- 2003 1.000 1.087 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.237 1.080 -- 2006 1.215 1.237 -- 2005 1.171 1.215 -- 2004 1.072 1.171 -- 2003 1.000 1.072 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.306 1.419 -- 2005 1.208 1.306 -- 2004 1.078 1.208 -- 2003 1.034 1.078 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.304 1.452 -- 2005 1.206 1.304 -- 2004 1.072 1.206 -- 2003 1.034 1.072 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.550 1.784 -- 2006 1.418 1.550 -- 2005 1.239 1.418 -- 2004 1.096 1.239 -- 2003 1.000 1.096 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.420 1.487 -- 2006 1.272 1.420 -- 2005 1.074 1.272 -- 2004 1.081 1.074 -- 2003 1.000 1.081 --
118 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 1.783 2.017 -- 2006 1.616 1.783 -- 2005 1.396 1.616 -- 2004 1.141 1.396 -- 2003 1.000 1.141 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.315 1.527 -- 2005 1.212 1.315 -- 2004 1.097 1.212 -- 2003 1.000 1.097 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.294 2.899 -- 2006 1.825 2.294 -- 2005 1.460 1.825 -- 2004 1.193 1.460 -- 2003 1.000 1.193 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.667 1.888 51,119 2006 1.399 1.667 54,400 2005 1.294 1.399 59,262 2004 1.113 1.294 62,699 2003 1.000 1.113 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.351 1.614 -- 2005 1.264 1.351 -- 2004 1.111 1.264 -- 2003 1.000 1.111 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.054 1.077 -- 2005 1.060 1.054 -- 2004 0.991 1.060 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.188 1.226 -- 2005 1.125 1.188 -- 2004 1.059 1.125 -- 2003 1.000 1.059 --
119 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.359 1.622 -- 2006 1.302 1.359 -- 2005 1.181 1.302 -- 2004 1.054 1.181 -- 2003 1.037 1.054 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.238 1.478 -- 2006 1.170 1.238 -- 2005 1.069 1.170 -- 2004 1.083 1.069 -- 2003 1.049 1.083 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.359 1.459 -- 2006 1.175 1.359 -- 2005 1.134 1.175 -- 2004 1.106 1.134 -- 2003 1.000 1.106 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.267 1.418 -- 2005 1.242 1.267 -- 2004 1.102 1.242 -- 2003 1.003 1.102 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.390 1.337 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.344 1.389 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.367 1.407 -- 2006 1.210 1.367 -- 2005 1.183 1.210 -- 2004 1.093 1.183 -- 2003 1.000 1.093 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.449 1.385 -- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.467 1.495 -- 2006 1.264 1.467 -- 2005 1.209 1.264 -- 2004 1.117 1.209 -- 2003 1.000 1.117 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.183 1.182 --
120 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.433 1.546 -- 2006 1.295 1.433 -- 2005 1.258 1.295 -- 2004 1.114 1.258 -- 2003 1.000 1.114 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.130 1.229 -- 2006 1.069 1.130 -- 2005 1.044 1.069 -- 2004 0.924 1.044 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.016 1.010 -- 2006 0.995 1.016 -- 2005 0.990 0.995 -- 2004 0.998 0.990 -- 2003 0.997 0.998 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.395 1.462 -- 2006 1.204 1.395 -- 2005 1.179 1.204 -- 2004 1.109 1.179 -- 2003 1.000 1.109 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.144 1.191 -- 2006 1.119 1.144 -- 2005 1.084 1.119 -- 2004 1.099 1.084 -- 2003 0.983 1.099 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.356 1.403 -- 2006 1.244 1.356 -- 2005 1.154 1.244 -- 2004 1.078 1.154 -- 2003 1.000 1.078 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.297 1.353 -- 2006 1.176 1.297 -- 2005 1.156 1.176 -- 2004 1.087 1.156 -- 2003 1.000 1.087 --
121 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.428 1.483 -- 2006 1.241 1.428 -- 2005 1.225 1.241 -- 2004 1.109 1.225 -- 2003 1.000 1.109 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.571 1.730 -- 2006 1.426 1.571 -- 2005 1.343 1.426 -- 2004 1.104 1.343 -- 2003 1.000 1.104 -- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.079 1.112 -- 2005 1.059 1.079 -- 2004 0.999 1.059 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.439 1.497 -- 2006 1.000 1.439 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.237 1.248 -- 2006 1.000 1.237 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.483 1.554 -- 2006 1.000 1.483 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.541 1.549 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.191 1.157 -- 2006 1.000 1.191 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.739 1.691 -- 2006 1.000 1.739 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.511 1.934 -- 2006 1.000 1.511 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.214 1.073 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.173 1.224 -- 2006 1.000 1.173 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.229 1.288 -- 2006 1.000 1.229 --
122 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.075 1.097 -- 2006 1.000 1.075 -- MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.070 1.056 -- 2006 1.000 1.070 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.263 1.387 -- 2006 1.000 1.263 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.161 1.269 -- 2006 1.000 1.161 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.915 2.007 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.379 1.456 -- 2006 1.000 1.379 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.218 1.018 -- 2006 1.000 1.218 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.114 1.178 -- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.411 1.453 -- 2006 1.000 1.411 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.113 1.228 -- 2006 1.000 1.113 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.149 1.202 -- 2006 1.000 1.149 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.027 0.977 -- 2006 1.000 1.027 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.235 1.459 -- 2006 1.000 1.235 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.051 1.096 -- 2006 1.000 1.051 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.025 1.057 21,980 2006 1.000 1.025 1,312 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.255 1.279 -- 2006 1.000 1.255 --
123 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.308 1.336 -- 2006 1.000 1.308 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.058 1.072 -- 2006 1.000 1.058 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.041 1.078 -- 2006 1.000 1.041 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.047 1.077 -- 2006 1.000 1.047 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.052 1.077 -- 2006 1.000 1.052 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.057 1.077 -- 2006 1.000 1.057 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.289 1.317 -- 2006 1.000 1.289 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.049 1.094 -- 2006 0.996 1.049 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.067 1.142 -- 2006 1.000 1.067 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.142 1.184 -- 2006 1.000 1.142 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.063 1.090 -- 2006 1.000 1.063 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.997 1.005 -- 2005 0.988 0.997 1,251 2004 0.996 0.988 1,115 2003 1.000 0.996 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.090 1.151 -- 2005 1.051 1.090 -- 2004 0.978 1.051 --
124 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.089 1.110 -- 2006 1.102 1.089 -- 2005 1.100 1.102 -- 2004 1.030 1.100 -- 2003 0.997 1.030 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.066 1.137 -- 2006 1.046 1.066 -- 2005 1.041 1.046 -- 2004 1.011 1.041 -- 2003 1.000 1.011 -- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 1.780 1.926 -- 2006 1.421 1.780 -- 2005 1.290 1.421 -- 2004 1.132 1.290 -- 2003 1.000 1.132 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 1.725 1.840 -- 2006 1.498 1.725 -- 2005 1.427 1.498 -- 2004 1.152 1.427 -- 2003 1.000 1.152 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.205 1.281 -- 2005 1.129 1.205 -- 2004 1.080 1.129 -- 2003 1.055 1.080 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.104 1.175 -- 2005 1.121 1.104 -- 2004 1.075 1.121 -- 2003 1.000 1.075 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.388 1.514 -- 2005 1.258 1.388 -- 2004 1.101 1.258 -- 2003 1.000 1.101 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.217 1.278 -- 2005 1.187 1.217 -- 2004 1.101 1.187 -- 2003 1.000 1.101 --
125 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Federated High Yield Subaccount (9/03)... 2006 1.148 1.176 -- 2005 1.141 1.148 -- 2004 1.054 1.141 -- 2003 1.000 1.054 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.265 1.309 -- 2005 1.224 1.265 -- 2004 1.129 1.224 -- 2003 1.000 1.129 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.205 1.240 -- 2005 1.130 1.205 -- 2004 1.081 1.130 -- 2003 1.000 1.081 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.072 1.138 -- 2005 1.019 1.072 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.013 1.016 -- 2005 1.000 1.013 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.029 1.065 -- 2005 1.000 1.029 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.031 1.075 -- 2005 1.000 1.031 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.034 1.053 -- 2005 1.000 1.034 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.323 1.404 -- 2005 1.204 1.323 -- 2004 1.058 1.204 -- 2003 1.000 1.058 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.199 1.267 -- 2005 1.186 1.199 -- 2004 1.059 1.186 -- 2003 1.000 1.059 --
126 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.172 1.208 -- 2005 1.160 1.172 -- 2004 1.060 1.160 -- 2003 1.000 1.060 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.158 1.251 -- 2005 1.109 1.158 -- 2004 0.977 1.109 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.378 1.581 -- 2005 1.282 1.378 -- 2004 1.129 1.282 -- 2003 1.000 1.129 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.240 1.315 -- 2005 1.193 1.240 -- 2004 1.094 1.193 -- 2003 1.000 1.094 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.008 1.060 -- 2005 1.000 1.008 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.102 1.112 -- 2005 1.083 1.102 -- 2004 0.979 1.083 -- Travelers Quality Bond Subaccount (8/03)........... 2006 1.024 1.014 -- 2005 1.027 1.024 -- 2004 1.013 1.027 -- 2003 1.000 1.013 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.157 1.206 -- 2005 1.156 1.157 -- 2004 1.069 1.156 -- 2003 1.000 1.069 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.019 1.172 -- 2005 1.000 1.019 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.977 1.119 -- 2005 1.000 0.977 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.069 1.030 -- 2005 1.044 1.069 -- 2004 1.007 1.044 --
127 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.482 1.420 -- 2006 1.301 1.482 -- 2005 1.274 1.301 -- 2004 1.105 1.274 -- 2003 1.000 1.105 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.221 1.347 -- 2006 1.165 1.221 -- 2005 1.101 1.165 -- 2004 1.089 1.101 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.368 1.333 -- 2005 1.215 1.368 11,871 2004 1.143 1.215 11,871 2003 1.000 1.143 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.936 2.180 541,064 2006 1.639 1.936 907,945 2005 1.465 1.639 890,621 2004 1.316 1.465 724,379 2003 1.000 1.316 334,172 American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.707 1.880 2,138,616 2006 1.579 1.707 3,395,987 2005 1.386 1.579 3,512,883 2004 1.256 1.386 2,792,430 2003 1.000 1.256 1,108,174 American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.591 1.639 2,346,046 2006 1.408 1.591 3,963,367 2005 1.357 1.408 4,037,531 2004 1.253 1.357 3,426,738 2003 1.000 1.253 1,314,244
128 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.649 1.629 -- 2005 1.422 1.649 61,067 2004 1.213 1.422 46,310 2003 1.000 1.213 2,811 Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.708 2.221 -- 2005 1.625 1.708 611,999 2004 1.261 1.625 497,837 2003 1.000 1.261 150,157 Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.408 1.479 64,763 2006 1.232 1.408 73,646 2005 1.204 1.232 71,885 2004 1.168 1.204 42,223 2003 1.000 1.168 35,461 Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.477 1.288 132,169 2006 1.452 1.477 126,530 2005 1.399 1.452 99,147 2004 1.281 1.399 23,233 2003 1.000 1.281 464 FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.305 1.417 -- 2005 1.208 1.305 512,941 2004 1.078 1.208 390,647 2003 1.000 1.078 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.302 1.450 -- 2005 1.206 1.302 256,618 2004 1.071 1.206 181,355 2003 1.000 1.071 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.746 2.008 596,727 2006 1.598 1.746 670,995 2005 1.397 1.598 544,815 2004 1.237 1.397 336,428 2003 1.000 1.237 101,724
129 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.551 1.624 -- 2006 1.390 1.551 10,861 2005 1.174 1.390 10,861 2004 1.182 1.174 10,861 2003 1.000 1.182 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 2.195 2.483 339,676 2006 1.991 2.195 457,429 2005 1.720 1.991 458,516 2004 1.407 1.720 278,559 2003 1.000 1.407 39,726 Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.442 1.674 -- 2005 1.330 1.442 390,353 2004 1.204 1.330 247,727 2003 1.000 1.204 111,096 FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.833 3.577 154,067 2006 2.255 2.833 177,466 2005 1.804 2.255 155,118 2004 1.475 1.804 103,518 2003 1.000 1.475 32,338 FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.996 2.260 338,225 2006 1.676 1.996 384,846 2005 1.551 1.676 258,807 2004 1.335 1.551 177,969 2003 1.212 1.335 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.609 1.922 -- 2005 1.507 1.609 259,235 2004 1.324 1.507 237,265 2003 1.000 1.324 59,268 High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.053 1.076 -- 2005 1.060 1.053 150,011 2004 0.991 1.060 24,059
130 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.224 1.263 -- 2005 1.159 1.224 25,253 2004 1.092 1.159 25,260 2003 1.000 1.092 24,024 Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.530 1.826 12,822 2006 1.467 1.530 12,822 2005 1.332 1.467 12,822 2004 1.189 1.332 12,822 2003 1.000 1.189 12,822 Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.577 1.882 40,573 2006 1.492 1.577 41,260 2005 1.363 1.492 42,686 2004 1.382 1.363 17,360 2003 1.000 1.382 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.535 1.646 -- 2006 1.327 1.535 -- 2005 1.282 1.327 -- 2004 1.250 1.282 -- 2003 1.000 1.250 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.529 1.711 -- 2005 1.499 1.529 218,815 2004 1.331 1.499 162,415 2003 1.000 1.331 7,627 Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.635 1.573 90,672 LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.512 1.562 16,926 LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.508 1.552 519,215 2006 1.336 1.508 661,156 2005 1.307 1.336 736,008 2004 1.209 1.307 689,882 2003 1.000 1.209 286,088 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.705 1.629 95,832
131 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.667 1.698 41,612 2006 1.437 1.667 51,803 2005 1.375 1.437 51,059 2004 1.271 1.375 38,512 2003 1.000 1.271 22,276 LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.402 1.400 72,962 LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.832 1.976 151,232 2006 1.656 1.832 174,673 2005 1.610 1.656 179,850 2004 1.426 1.610 153,104 2003 1.000 1.426 27,380 LMPVET Social Awareness Subaccount (9/04).......... 2007 1.128 1.227 48,291 2006 1.068 1.128 48,291 2005 1.043 1.068 48,291 2004 0.924 1.043 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.015 1.008 123,158 2006 0.994 1.015 134,938 2005 0.990 0.994 134,159 2004 0.998 0.990 41,915 2003 1.000 0.998 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.641 1.720 -- 2006 1.417 1.641 107,036 2005 1.388 1.417 96,324 2004 1.307 1.388 157,285 2003 1.000 1.307 17,869 LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.357 1.412 -- 2006 1.327 1.357 80,428 2005 1.286 1.327 80,380 2004 1.305 1.286 80,391 2003 1.000 1.305 69,744 Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.595 1.650 -- 2006 1.465 1.595 104,677 2005 1.359 1.465 101,933 2004 1.270 1.359 48,065 2003 1.000 1.270 --
132 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.459 1.523 -- 2006 1.324 1.459 17,254 2005 1.303 1.324 5,589 2004 1.225 1.303 4,814 2003 1.000 1.225 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.595 1.656 -- 2006 1.387 1.595 663,993 2005 1.370 1.387 690,151 2004 1.240 1.370 373,529 2003 1.000 1.240 5,171 Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.783 1.963 -- 2006 1.620 1.783 453,233 2005 1.527 1.620 448,170 2004 1.255 1.527 184,238 2003 1.000 1.255 22,815 Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.078 1.111 -- 2005 1.058 1.078 61,036 2004 0.999 1.058 3,257 Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.692 1.759 21,648 2006 1.000 1.692 44,949 MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.297 1.307 272,430 2006 1.000 1.297 183,512 MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.621 1.698 -- 2006 1.000 1.621 161,509 MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.684 1.692 131,895 MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.190 1.155 51,775 2006 1.000 1.190 51,064 MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.942 1.888 130,613 2006 1.000 1.942 89,335 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.667 2.132 89,249 2006 1.000 1.667 75,227 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.213 1.072 --
133 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.171 1.221 99,065 2006 1.000 1.171 84,877 MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.299 1.361 121,539 2006 1.000 1.299 120,933 MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.075 1.096 1,593,777 2006 1.000 1.075 869,427 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.069 1.055 726,696 2006 1.000 1.069 7,885 MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.428 1.567 9,390 2006 1.000 1.428 11,464 MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.160 1.267 8,114 2006 1.000 1.160 7,834 MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.179 2.283 7,125 MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.377 1.454 110,235 2006 1.000 1.377 121,387 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.217 1.017 951,445 2006 1.000 1.217 1,022,204 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.128 1.191 402,867 MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.531 1.576 32,957 2006 1.000 1.531 34,679 MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.112 1.227 -- 2006 1.000 1.112 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.148 1.200 241,488 2006 1.000 1.148 197,450 MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.026 0.976 765,908 2006 1.000 1.026 786,231 Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.489 1.758 51,168 2006 1.000 1.489 63,494
134 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.049 1.093 360,848 2006 1.000 1.049 271,695 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.019 1.050 6,539,378 2006 1.000 1.019 410,536 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.374 1.401 110,887 2006 1.000 1.374 171,147 MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.461 1.491 263,871 2006 1.000 1.461 280,866 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.058 1.071 -- 2006 1.000 1.058 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.040 1.077 -- 2006 1.000 1.040 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.047 1.076 -- 2006 1.000 1.047 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.052 1.076 109,928 2006 1.000 1.052 103,264 MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.057 1.076 -- 2006 1.000 1.057 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.363 1.393 823,003 2006 1.000 1.363 890,651 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.049 1.093 992,060 2006 0.996 1.049 1,153,094 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.066 1.141 5,113 2006 1.000 1.066 16,171 MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.140 1.182 -- 2006 1.000 1.140 148,755 MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.062 1.088 21,334 2006 1.000 1.062 20,856
135 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.991 0.999 -- 2005 0.982 0.991 555,003 2004 0.992 0.982 1,188,876 2003 1.000 0.992 90,248 Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.089 1.149 -- 2005 1.050 1.089 122,363 2004 0.978 1.050 5,752 PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.102 1.123 -- 2006 1.116 1.102 410,148 2005 1.115 1.116 393,976 2004 1.044 1.115 184,711 2003 1.000 1.044 17,217 PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.063 1.134 716,995 2006 1.044 1.063 858,597 2005 1.039 1.044 853,077 2004 1.010 1.039 683,510 2003 1.000 1.010 8,553 Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 2.026 2.191 -- 2006 1.618 2.026 1,120 2005 1.470 1.618 2,823 2004 1.290 1.470 3,230 2003 1.000 1.290 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.132 2.274 -- 2006 1.853 2.132 97,634 2005 1.765 1.853 79,046 2004 1.426 1.765 32,407 2003 1.000 1.426 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.362 1.448 -- 2005 1.277 1.362 24,001 2004 1.223 1.277 11,734 2003 1.000 1.223 --
136 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.167 1.243 -- 2005 1.186 1.167 108,317 2004 1.138 1.186 59,172 2003 1.000 1.138 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.632 1.781 -- 2005 1.480 1.632 42,362 2004 1.296 1.480 42,350 2003 1.000 1.296 9,293 Travelers Equity Income Subaccount (7/03).......... 2006 1.360 1.427 -- 2005 1.327 1.360 293,931 2004 1.232 1.327 305,326 2003 1.000 1.232 62,666 Travelers Federated High Yield Subaccount (9/03)... 2006 1.204 1.233 -- 2005 1.197 1.204 185,732 2004 1.106 1.197 228,788 2003 1.000 1.106 17,004 Travelers Federated Stock Subaccount (6/03)........ 2006 1.398 1.446 -- 2005 1.353 1.398 50,535 2004 1.248 1.353 38,606 2003 1.000 1.248 18,144 Travelers Large Cap Subaccount (9/03).............. 2006 1.320 1.359 -- 2005 1.239 1.320 130,468 2004 1.186 1.239 101,643 2003 1.000 1.186 27,138 Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.071 1.138 -- 2005 1.019 1.071 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.013 1.015 -- 2005 1.000 1.013 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.029 1.064 -- 2005 1.000 1.029 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.031 1.074 -- 2005 1.000 1.031 --
137 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.033 1.052 -- 2005 1.000 1.033 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.447 1.534 -- 2005 1.317 1.447 179,103 2004 1.158 1.317 169,721 2003 1.000 1.158 19,489 Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.446 1.528 -- 2005 1.431 1.446 100,741 2004 1.279 1.431 60,927 2003 1.000 1.279 10,971 Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.240 1.278 -- 2005 1.228 1.240 841,464 2004 1.123 1.228 697,939 2003 1.000 1.123 68,755 Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.157 1.249 -- 2005 1.109 1.157 97,222 2004 0.977 1.109 7,576 Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.540 1.766 -- 2005 1.433 1.540 149,933 2004 1.263 1.433 100,973 2003 1.000 1.263 8,472 Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.346 1.427 -- 2005 1.295 1.346 35,336 2004 1.188 1.295 12,601 2003 1.000 1.188 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.008 1.059 -- 2005 1.000 1.008 7,520 Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.101 1.111 -- 2005 1.083 1.101 171,663 2004 0.979 1.083 44,517 Travelers Quality Bond Subaccount (8/03)........... 2006 1.022 1.012 -- 2005 1.026 1.022 264,301 2004 1.013 1.026 383,445 2003 1.000 1.013 1,178
138 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.326 1.382 -- 2005 1.325 1.326 31,560 2004 1.225 1.325 28,511 2003 1.000 1.225 22,609 Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.019 1.172 -- 2005 1.000 1.019 7,500 Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.977 1.119 -- 2005 1.000 0.977 19,939 Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.068 1.029 -- 2005 1.044 1.068 46,834 2004 1.007 1.044 504 Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.683 1.612 254,276 2006 1.479 1.683 363,935 2005 1.448 1.479 294,679 2004 1.258 1.448 188,616 2003 1.000 1.258 74,545 Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.336 1.473 -- 2006 1.276 1.336 11,091 2005 1.206 1.276 23,247 2004 1.185 1.206 23,247 2003 1.000 1.185 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.194 1.163 -- 2005 1.060 1.194 -- 2004 1.000 1.060 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.472 1.657 -- 2006 1.247 1.472 -- 2005 1.115 1.247 -- 2004 1.000 1.115 --
139 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.339 1.474 -- 2006 1.239 1.339 -- 2005 1.088 1.239 -- 2004 1.000 1.088 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.250 1.287 -- 2006 1.107 1.250 -- 2005 1.067 1.107 -- 2004 1.000 1.067 -- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.357 1.341 -- 2005 1.172 1.357 -- 2004 1.000 1.172 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.355 1.762 -- 2005 1.290 1.355 -- 2004 1.000 1.290 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.197 1.257 -- 2006 1.048 1.197 -- 2005 1.024 1.048 -- 2004 1.000 1.024 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.156 1.008 -- 2006 1.136 1.156 -- 2005 1.096 1.136 -- 2004 1.000 1.096 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.208 1.312 -- 2005 1.119 1.208 -- 2004 1.000 1.119 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.210 1.347 -- 2005 1.121 1.210 -- 2004 1.000 1.121 --
140 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.385 1.593 -- 2006 1.268 1.385 -- 2005 1.109 1.268 -- 2004 1.000 1.109 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.375 1.438 -- 2006 1.232 1.375 -- 2005 1.042 1.232 -- 2004 1.000 1.042 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 1.567 1.772 -- 2006 1.422 1.567 -- 2005 1.229 1.422 -- 2004 1.000 1.229 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.195 1.386 -- 2005 1.102 1.195 -- 2004 1.000 1.102 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 1.982 2.502 -- 2006 1.579 1.982 -- 2005 1.264 1.579 -- 2004 1.000 1.264 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.489 1.685 33,197 2006 1.251 1.489 4,508 2005 1.158 1.251 4,934 2004 1.000 1.158 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.197 1.429 -- 2005 1.122 1.197 -- 2004 1.000 1.122 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.071 1.093 -- 2005 1.078 1.071 -- 2004 1.008 1.078 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.130 1.165 -- 2005 1.070 1.130 -- 2004 1.000 1.070 --
141 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.194 1.425 -- 2006 1.146 1.194 -- 2005 1.041 1.146 -- 2004 1.000 1.041 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.219 1.454 -- 2006 1.153 1.219 -- 2005 1.054 1.153 -- 2004 1.000 1.054 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.303 1.396 -- 2006 1.127 1.303 -- 2005 1.089 1.127 -- 2004 1.000 1.089 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.150 1.286 -- 2005 1.128 1.150 -- 2004 1.000 1.128 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.269 1.221 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.238 1.278 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.236 1.271 -- 2006 1.095 1.236 -- 2005 1.072 1.095 -- 2004 1.000 1.072 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.299 1.241 -- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.309 1.333 -- 2006 1.129 1.309 -- 2005 1.082 1.129 -- 2004 1.000 1.082 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.080 1.079 -- LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.328 1.432 -- 2006 1.201 1.328 -- 2005 1.168 1.201 -- 2004 1.000 1.168 --
142 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.164 1.265 -- 2006 1.103 1.164 -- 2005 1.077 1.103 -- 2004 0.954 1.077 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.024 1.017 -- 2006 1.003 1.024 -- 2005 1.000 1.003 -- 2004 1.000 1.000 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.251 1.310 -- 2006 1.080 1.251 -- 2005 1.059 1.080 -- 2004 1.000 1.059 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.046 1.088 -- 2006 1.024 1.046 -- 2005 0.993 1.024 -- 2004 1.000 0.993 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.239 1.281 -- 2006 1.138 1.239 -- 2005 1.056 1.138 -- 2004 1.000 1.056 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.195 1.246 -- 2006 1.084 1.195 -- 2005 1.067 1.084 -- 2004 1.000 1.067 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.282 1.330 -- 2006 1.115 1.282 -- 2005 1.102 1.115 -- 2004 1.000 1.102 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.357 1.494 -- 2006 1.234 1.357 -- 2005 1.163 1.234 -- 2004 1.000 1.163 --
143 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.093 1.126 -- 2005 1.074 1.093 -- 2004 1.013 1.074 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.280 1.330 -- 2006 1.000 1.280 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.169 1.178 -- 2006 1.000 1.169 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.385 1.451 -- 2006 1.000 1.385 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.438 1.445 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.189 1.154 -- 2006 1.000 1.189 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.553 1.509 -- 2006 1.000 1.553 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.371 1.754 -- 2006 1.000 1.371 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.212 1.071 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.187 1.237 -- 2006 1.000 1.187 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.143 1.197 -- 2006 1.000 1.143 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.075 1.095 -- 2006 1.000 1.075 -- MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.069 1.054 -- 2006 1.000 1.069 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.180 1.294 -- 2006 1.000 1.180 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.159 1.266 -- 2006 1.000 1.159 --
144 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.720 1.801 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.400 1.477 -- 2006 1.000 1.400 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.217 1.016 -- 2006 1.000 1.217 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.081 1.141 -- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.293 1.331 -- 2006 1.000 1.293 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.112 1.226 -- 2006 1.000 1.112 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.171 1.224 -- 2006 1.000 1.171 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.026 0.975 -- 2006 1.000 1.026 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.118 1.319 -- 2006 1.000 1.118 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.056 1.100 -- 2006 1.000 1.056 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.032 1.063 -- 2006 1.000 1.032 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.164 1.186 -- 2006 1.000 1.164 -- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.214 1.238 -- 2006 1.000 1.214 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.057 1.070 -- 2006 1.000 1.057 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.040 1.076 -- 2006 1.000 1.040 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.046 1.075 -- 2006 1.000 1.046 --
145 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.052 1.076 -- 2006 1.000 1.052 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.057 1.075 -- 2006 1.000 1.057 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.218 1.243 -- 2006 1.000 1.218 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.048 1.092 -- 2006 0.996 1.048 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.066 1.140 -- 2006 1.000 1.066 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.158 1.201 -- 2006 1.000 1.158 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.092 1.118 -- 2006 1.000 1.092 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.005 1.012 -- 2005 0.996 1.005 -- 2004 1.000 0.996 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.104 1.165 -- 2005 1.065 1.104 -- 2004 0.992 1.065 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.056 1.076 -- 2006 1.070 1.056 -- 2005 1.070 1.070 -- 2004 1.000 1.070 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.069 1.140 -- 2006 1.051 1.069 -- 2005 1.046 1.051 -- 2004 1.000 1.046 --
146 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 1.599 1.729 -- 2006 1.277 1.599 -- 2005 1.161 1.277 -- 2004 1.000 1.161 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 1.442 1.538 -- 2006 1.254 1.442 -- 2005 1.195 1.254 -- 2004 1.000 1.195 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.126 1.198 -- 2005 1.057 1.126 -- 2004 1.000 1.057 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.027 1.094 -- 2005 1.044 1.027 -- 2004 1.000 1.044 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.235 1.348 -- 2005 1.121 1.235 -- 2004 1.000 1.121 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.131 1.187 -- 2005 1.104 1.131 -- 2004 1.000 1.104 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.086 1.112 -- 2005 1.080 1.086 -- 2004 1.000 1.080 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.116 1.155 -- 2005 1.081 1.116 -- 2004 1.000 1.081 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.119 1.152 -- 2005 1.050 1.119 -- 2004 1.000 1.050 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.071 1.137 -- 2005 1.019 1.071 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.013 1.015 -- 2005 1.000 1.013 --
147 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.029 1.064 -- 2005 1.000 1.029 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.031 1.074 -- 2005 1.000 1.031 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.033 1.052 -- 2005 1.000 1.033 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.237 1.312 -- 2005 1.126 1.237 -- 2004 1.000 1.126 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.086 1.148 -- 2005 1.075 1.086 -- 2004 1.000 1.075 -- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.108 1.142 -- 2005 1.098 1.108 -- 2004 1.000 1.098 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.178 1.271 -- 2005 1.128 1.178 -- 2004 0.994 1.128 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.232 1.413 -- 2005 1.147 1.232 -- 2004 1.000 1.147 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.138 1.206 -- 2005 1.095 1.138 -- 2004 1.000 1.095 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.008 1.059 -- 2005 1.000 1.008 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.124 1.134 -- 2005 1.106 1.124 -- 2004 1.000 1.106 -- Travelers Quality Bond Subaccount (8/03)........... 2006 1.030 1.019 -- 2005 1.034 1.030 -- 2004 1.000 1.034 --
148 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.100 1.146 -- 2005 1.100 1.100 -- 2004 1.000 1.100 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.019 1.171 -- 2005 1.000 1.019 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.976 1.118 -- 2005 1.000 0.976 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.099 1.058 -- 2005 1.074 1.099 -- 2004 1.036 1.074 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.315 1.259 -- 2006 1.156 1.315 -- 2005 1.133 1.156 -- 2004 1.000 1.133 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.151 1.268 -- 2006 1.099 1.151 -- 2005 1.040 1.099 -- 2004 1.000 1.040 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.365 1.329 -- 2005 1.213 1.365 -- 2004 1.143 1.213 -- 2003 1.000 1.143 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.929 2.170 94,424 2006 1.635 1.929 97,988 2005 1.463 1.635 68,765 2004 1.316 1.463 3,927 2003 1.000 1.316 --
149 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.700 1.871 257,108 2006 1.575 1.700 262,394 2005 1.383 1.575 191,300 2004 1.255 1.383 11,535 2003 1.000 1.255 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.585 1.631 253,779 2006 1.404 1.585 257,226 2005 1.354 1.404 228,416 2004 1.253 1.354 9,193 2003 1.000 1.253 -- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.644 1.625 -- 2005 1.420 1.644 3,304 2004 1.213 1.420 -- 2003 1.000 1.213 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.703 2.213 -- 2005 1.622 1.703 13,337 2004 1.260 1.622 8,022 2003 1.000 1.260 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.402 1.472 -- 2006 1.229 1.402 -- 2005 1.202 1.229 -- 2004 1.168 1.202 -- 2003 1.000 1.168 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.472 1.282 32,486 2006 1.448 1.472 32,157 2005 1.397 1.448 905 2004 1.280 1.397 -- 2003 1.000 1.280 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.302 1.414 -- 2005 1.206 1.302 96,012 2004 1.078 1.206 18,660 2003 1.000 1.078 --
150 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.299 1.446 -- 2005 1.204 1.299 15,932 2004 1.071 1.204 9,791 2003 1.000 1.071 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.740 1.999 152,797 2006 1.593 1.740 161,596 2005 1.394 1.593 102,412 2004 1.236 1.394 12,353 2003 1.000 1.236 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.546 1.616 -- 2006 1.386 1.546 -- 2005 1.172 1.386 -- 2004 1.181 1.172 -- 2003 1.000 1.181 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 2.187 2.471 94,791 2006 1.986 2.187 106,301 2005 1.718 1.986 110,071 2004 1.406 1.718 3,804 2003 1.000 1.406 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.438 1.668 -- 2005 1.328 1.438 22,403 2004 1.203 1.328 9,484 2003 1.000 1.203 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.822 3.561 41,176 2006 2.249 2.822 41,882 2005 1.801 2.249 10,323 2004 1.474 1.801 -- 2003 1.000 1.474 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.989 2.250 59,623 2006 1.672 1.989 28,426 2005 1.549 1.672 25,399 2004 1.334 1.549 1,081 2003 1.212 1.334 --
151 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.604 1.915 -- 2005 1.504 1.604 88,712 2004 1.323 1.504 8,949 2003 1.000 1.323 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.052 1.074 -- 2005 1.059 1.052 12,255 2004 0.991 1.059 3,808 Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.221 1.259 -- 2005 1.157 1.221 -- 2004 1.091 1.157 -- 2003 1.000 1.091 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.524 1.817 -- 2006 1.463 1.524 -- 2005 1.329 1.463 -- 2004 1.188 1.329 -- 2003 1.000 1.188 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.572 1.874 -- 2006 1.488 1.572 -- 2005 1.361 1.488 -- 2004 1.382 1.361 -- 2003 1.000 1.382 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.529 1.638 -- 2006 1.324 1.529 -- 2005 1.280 1.324 -- 2004 1.250 1.280 -- 2003 1.000 1.250 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.525 1.705 -- 2005 1.497 1.525 2,984 2004 1.330 1.497 2,910 2003 1.000 1.330 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.628 1.565 67,143 LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.506 1.555 --
152 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.503 1.545 3,654 2006 1.333 1.503 3,971 2005 1.305 1.333 4,151 2004 1.208 1.305 4,855 2003 1.000 1.208 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.698 1.621 -- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.661 1.690 5,553 2006 1.433 1.661 4,609 2005 1.373 1.433 4,746 2004 1.270 1.373 3,606 2003 1.000 1.270 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.396 1.394 4,933 LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.825 1.967 73,358 2006 1.652 1.825 87,423 2005 1.607 1.652 80,562 2004 1.425 1.607 3,561 2003 1.000 1.425 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.125 1.222 95,999 2006 1.066 1.125 84,761 2005 1.043 1.066 84,789 2004 0.924 1.043 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.011 1.004 5,046 2006 0.991 1.011 5,046 2005 0.989 0.991 5,046 2004 0.997 0.989 5,046 2003 1.000 0.997 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.635 1.713 -- 2006 1.413 1.635 -- 2005 1.386 1.413 -- 2004 1.306 1.386 -- 2003 1.000 1.306 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.352 1.406 -- 2006 1.324 1.352 4,353 2005 1.284 1.324 1,712 2004 1.304 1.284 1,333 2003 1.000 1.304 --
153 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.589 1.643 -- 2006 1.461 1.589 66,631 2005 1.357 1.461 34,530 2004 1.269 1.357 -- 2003 1.000 1.269 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.454 1.516 -- 2006 1.320 1.454 -- 2005 1.300 1.320 -- 2004 1.225 1.300 -- 2003 1.000 1.225 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.589 1.649 -- 2006 1.383 1.589 145,977 2005 1.367 1.383 134,081 2004 1.239 1.367 15,775 2003 1.000 1.239 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.777 1.956 -- 2006 1.616 1.777 80,340 2005 1.524 1.616 78,188 2004 1.254 1.524 16,171 2003 1.000 1.254 -- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.076 1.109 -- 2005 1.058 1.076 52,894 2004 0.999 1.058 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.685 1.751 -- 2006 1.000 1.685 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.292 1.301 53,229 2006 1.000 1.292 38,160 MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.615 1.691 -- 2006 1.000 1.615 44,939 MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.677 1.684 44,887 MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.188 1.153 23,682 2006 1.000 1.188 23,910
154 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.935 1.879 -- 2006 1.000 1.935 4,156 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.661 2.122 22,470 2006 1.000 1.661 21,647 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.211 1.070 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.168 1.217 58,548 2006 1.000 1.168 58,837 MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.295 1.355 12,566 2006 1.000 1.295 12,259 MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.074 1.094 249,178 2006 1.000 1.074 33,875 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.069 1.053 130,714 2006 1.000 1.069 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.422 1.559 -- 2006 1.000 1.422 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.159 1.264 11,088 2006 1.000 1.159 11,298 MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.171 2.273 21,101 MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.374 1.448 49,566 2006 1.000 1.374 50,747 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.216 1.015 69,781 2006 1.000 1.216 80,897 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.123 1.186 256,409 MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.525 1.569 -- 2006 1.000 1.525 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.111 1.225 -- 2006 1.000 1.111 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.145 1.196 35,884 2006 1.000 1.145 35,478
155 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.026 0.974 225,725 2006 1.000 1.026 74,710 Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.483 1.750 10,298 2006 1.000 1.483 10,298 MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.045 1.088 108,821 2006 1.000 1.045 105,684 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.015 1.045 91,837 2006 1.000 1.015 17,448 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.369 1.394 -- 2006 1.000 1.369 -- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.455 1.484 52,566 2006 1.000 1.455 54,184 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.057 1.069 -- 2006 1.000 1.057 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.040 1.075 2,191 2006 1.000 1.040 2,092 MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.046 1.074 -- 2006 1.000 1.046 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.051 1.075 10,610 2006 1.000 1.051 9,969 MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.056 1.074 -- 2006 1.000 1.056 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.358 1.386 231,173 2006 1.000 1.358 232,150 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.048 1.091 284,788 2006 0.996 1.048 301,278 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.066 1.139 -- 2006 1.000 1.066 --
156 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.137 1.179 -- 2006 1.000 1.137 14,868 MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.059 1.084 9,474 2006 1.000 1.059 8,575 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.989 0.996 -- 2005 0.981 0.989 17,032 2004 0.991 0.981 4,000 2003 1.000 0.991 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.087 1.147 -- 2005 1.050 1.087 -- 2004 0.978 1.050 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.098 1.119 -- 2006 1.113 1.098 244,793 2005 1.113 1.113 225,077 2004 1.043 1.113 6,362 2003 1.000 1.043 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.059 1.129 79,924 2006 1.041 1.059 77,951 2005 1.038 1.041 44,173 2004 1.010 1.038 9,658 2003 1.000 1.010 -- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 2.019 2.182 -- 2006 1.613 2.019 -- 2005 1.468 1.613 -- 2004 1.289 1.468 -- 2003 1.000 1.289 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.124 2.265 -- 2006 1.848 2.124 79,412 2005 1.762 1.848 75,306 2004 1.425 1.762 6,528 2003 1.000 1.425 --
157 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.358 1.444 -- 2005 1.275 1.358 -- 2004 1.222 1.275 -- 2003 1.000 1.222 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.164 1.239 -- 2005 1.184 1.164 10,760 2004 1.137 1.184 4,441 2003 1.000 1.137 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.628 1.775 -- 2005 1.478 1.628 -- 2004 1.295 1.478 -- 2003 1.000 1.295 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.356 1.423 -- 2005 1.325 1.356 51,948 2004 1.231 1.325 -- 2003 1.000 1.231 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.201 1.229 -- 2005 1.195 1.201 26,410 2004 1.105 1.195 11,358 2003 1.000 1.105 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.394 1.441 -- 2005 1.351 1.394 -- 2004 1.247 1.351 -- 2003 1.000 1.247 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.317 1.355 -- 2005 1.236 1.317 -- 2004 1.185 1.236 -- 2003 1.000 1.185 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.071 1.137 -- 2005 1.019 1.071 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.012 1.015 -- 2005 1.000 1.012 2,000 Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.028 1.063 -- 2005 1.000 1.028 9,142
158 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.031 1.073 -- 2005 1.000 1.031 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.033 1.051 -- 2005 1.000 1.033 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.443 1.530 -- 2005 1.314 1.443 44,846 2004 1.158 1.314 9,056 2003 1.000 1.158 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.442 1.524 -- 2005 1.428 1.442 -- 2004 1.278 1.428 -- 2003 1.000 1.278 -- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.236 1.274 -- 2005 1.226 1.236 176,334 2004 1.122 1.226 4,688 2003 1.000 1.122 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.156 1.247 -- 2005 1.108 1.156 51,927 2004 0.976 1.108 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.536 1.761 -- 2005 1.431 1.536 4,162 2004 1.262 1.431 4,169 2003 1.000 1.262 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.343 1.423 -- 2005 1.293 1.343 -- 2004 1.188 1.293 -- 2003 1.000 1.188 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.007 1.059 -- 2005 1.000 1.007 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.099 1.108 -- 2005 1.082 1.099 26,403 2004 0.979 1.082 6,561
159 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.05% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Quality Bond Subaccount (8/03)........... 2006 1.020 1.009 -- 2005 1.024 1.020 99,984 2004 1.012 1.024 13,616 2003 1.000 1.012 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.322 1.378 -- 2005 1.323 1.322 -- 2004 1.225 1.323 -- 2003 1.000 1.225 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.018 1.171 -- 2005 1.000 1.018 11,017 Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.976 1.118 -- 2005 1.000 0.976 23,914 Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.066 1.027 -- 2005 1.043 1.066 5,309 2004 1.007 1.043 3,767 Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.677 1.604 15,899 2006 1.475 1.677 16,287 2005 1.446 1.475 11,666 2004 1.257 1.446 -- 2003 1.000 1.257 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.331 1.466 -- 2006 1.272 1.331 -- 2005 1.204 1.272 -- 2004 1.184 1.204 -- 2003 1.000 1.184 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.361 1.324 -- 2005 1.211 1.361 -- 2004 1.142 1.211 -- 2003 1.000 1.142 --
160 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.922 2.160 80,941 2006 1.630 1.922 88,993 2005 1.460 1.630 87,458 2004 1.315 1.460 88,114 2003 1.000 1.315 1,892 American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.694 1.863 151,529 2006 1.570 1.694 161,763 2005 1.381 1.570 154,128 2004 1.254 1.381 130,446 2003 1.000 1.254 13,201 American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.579 1.624 251,659 2006 1.401 1.579 255,312 2005 1.352 1.401 246,438 2004 1.252 1.352 227,798 2003 1.000 1.252 28,884 Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.640 1.620 -- 2005 1.418 1.640 8,665 2004 1.212 1.418 8,665 2003 1.000 1.212 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.698 2.205 -- 2005 1.619 1.698 191,109 2004 1.259 1.619 170,988 2003 1.000 1.259 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.397 1.465 -- 2006 1.226 1.397 -- 2005 1.200 1.226 11,327 2004 1.167 1.200 11,352 2003 1.000 1.167 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.466 1.276 -- 2006 1.444 1.466 -- 2005 1.394 1.444 -- 2004 1.279 1.394 -- 2003 1.000 1.279 --
161 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.299 1.411 -- 2005 1.205 1.299 21,498 2004 1.078 1.205 21,269 2003 1.000 1.078 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.297 1.443 -- 2005 1.203 1.297 5,301 2004 1.071 1.203 5,265 2003 1.000 1.071 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.733 1.990 69,353 2006 1.589 1.733 68,045 2005 1.392 1.589 65,266 2004 1.235 1.392 56,494 2003 1.000 1.235 4,134 VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.540 1.608 72,538 2006 1.382 1.540 74,996 2005 1.170 1.382 74,996 2004 1.181 1.170 74,996 2003 1.000 1.181 59,036 VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 2.179 2.460 52,680 2006 1.981 2.179 52,680 2005 1.715 1.981 52,680 2004 1.405 1.715 52,680 2003 1.000 1.405 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.434 1.662 -- 2005 1.325 1.434 55,438 2004 1.202 1.325 29,113 2003 1.000 1.202 6,436 FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.812 3.544 1,577 2006 2.243 2.812 1,577 2005 1.798 2.243 1,577 2004 1.473 1.798 1,577 2003 1.000 1.473 --
162 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.982 2.239 35,197 2006 1.667 1.982 15,610 2005 1.546 1.667 23,966 2004 1.333 1.546 10,885 2003 1.211 1.333 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.600 1.908 -- 2005 1.502 1.600 18,349 2004 1.322 1.502 22,897 2003 1.000 1.322 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.050 1.071 -- 2005 1.059 1.050 2,964 2004 0.991 1.059 2,870 Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.218 1.255 -- 2005 1.155 1.218 -- 2004 1.090 1.155 -- 2003 1.000 1.090 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.519 1.809 -- 2006 1.459 1.519 -- 2005 1.327 1.459 -- 2004 1.187 1.327 -- 2003 1.000 1.187 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.566 1.865 -- 2006 1.484 1.566 -- 2005 1.359 1.484 -- 2004 1.381 1.359 -- 2003 1.000 1.381 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.524 1.631 -- 2006 1.320 1.524 -- 2005 1.278 1.320 -- 2004 1.249 1.278 -- 2003 1.000 1.249 --
163 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.521 1.699 -- 2005 1.495 1.521 55,373 2004 1.329 1.495 55,373 2003 1.000 1.329 55,373 Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.622 1.558 3,788 LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.500 1.547 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.497 1.538 173,582 2006 1.329 1.497 173,848 2005 1.302 1.329 172,475 2004 1.207 1.302 133,818 2003 1.000 1.207 2,212 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.691 1.614 286 LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.654 1.682 -- 2006 1.429 1.654 -- 2005 1.371 1.429 -- 2004 1.269 1.371 -- 2003 1.000 1.269 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.391 1.387 17,517 LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.818 1.958 175,739 2006 1.648 1.818 176,599 2005 1.605 1.648 176,226 2004 1.424 1.605 158,043 2003 1.000 1.424 1,726 LMPVET Social Awareness Subaccount (9/04).......... 2007 1.122 1.218 -- 2006 1.065 1.122 -- 2005 1.042 1.065 -- 2004 0.923 1.042 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.008 1.000 -- 2006 0.989 1.008 -- 2005 0.987 0.989 -- 2004 0.997 0.987 -- 2003 1.000 0.997 --
164 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.629 1.706 -- 2006 1.409 1.629 276 2005 1.384 1.409 287 2004 1.305 1.384 275 2003 1.000 1.305 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.347 1.400 -- 2006 1.320 1.347 17,880 2005 1.282 1.320 17,819 2004 1.303 1.282 69,345 2003 1.000 1.303 54,503 Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.584 1.637 -- 2006 1.457 1.584 3,788 2005 1.354 1.457 3,788 2004 1.268 1.354 3,788 2003 1.000 1.268 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.449 1.510 -- 2006 1.317 1.449 -- 2005 1.298 1.317 -- 2004 1.224 1.298 -- 2003 1.000 1.224 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.584 1.643 -- 2006 1.380 1.584 24,914 2005 1.365 1.380 24,933 2004 1.238 1.365 24,914 2003 1.000 1.238 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.770 1.948 -- 2006 1.612 1.770 52,165 2005 1.522 1.612 52,188 2004 1.253 1.522 57,801 2003 1.000 1.253 13,002 Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.074 1.106 -- 2005 1.057 1.074 -- 2004 0.998 1.057 --
165 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.679 1.743 -- 2006 1.000 1.679 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.287 1.295 5,960 2006 1.000 1.287 2,771 MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.609 1.684 -- 2006 1.000 1.609 23,872 MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.670 1.677 24,611 MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.186 1.150 -- 2006 1.000 1.186 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.928 1.871 -- 2006 1.000 1.928 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.655 2.112 -- 2006 1.000 1.655 8,665 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.209 1.067 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.165 1.213 -- 2006 1.000 1.165 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.290 1.349 34,909 2006 1.000 1.290 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.074 1.093 144,680 2006 1.000 1.074 136,951 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.068 1.051 78,086 2006 1.000 1.068 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.417 1.552 -- 2006 1.000 1.417 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.157 1.261 -- 2006 1.000 1.157 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.162 2.262 8,316 MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.370 1.443 -- 2006 1.000 1.370 --
166 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.216 1.014 348,012 2006 1.000 1.216 349,326 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.119 1.180 6,657 MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.519 1.561 -- 2006 1.000 1.519 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.109 1.223 -- 2006 1.000 1.109 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.142 1.191 -- 2006 1.000 1.142 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.025 0.973 98,319 2006 1.000 1.025 101,202 Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.478 1.741 2,237 2006 1.000 1.478 2,389 MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.041 1.083 -- 2006 1.000 1.041 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.011 1.040 36,705 2006 1.000 1.011 36,763 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.364 1.388 84,289 2006 1.000 1.364 95,572 MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.450 1.477 -- 2006 1.000 1.450 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.056 1.068 -- 2006 1.000 1.056 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.039 1.073 -- 2006 1.000 1.039 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.045 1.072 -- 2006 1.000 1.045 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.051 1.073 -- 2006 1.000 1.051 --
167 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.055 1.073 -- 2006 1.000 1.055 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.353 1.380 91,887 2006 1.000 1.353 95,149 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.047 1.089 41,030 2006 0.996 1.047 66,279 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.065 1.137 -- 2006 1.000 1.065 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.134 1.175 -- 2006 1.000 1.134 3,154 MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.056 1.080 -- 2006 1.000 1.056 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.986 0.993 -- 2005 0.979 0.986 36,823 2004 0.990 0.979 30,323 2003 1.000 0.990 86,167 Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.085 1.145 -- 2005 1.049 1.085 -- 2004 0.978 1.049 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.094 1.114 -- 2006 1.110 1.094 6,657 2005 1.111 1.110 6,657 2004 1.042 1.111 6,657 2003 1.000 1.042 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.056 1.124 113,010 2006 1.039 1.056 129,723 2005 1.036 1.039 135,038 2004 1.009 1.036 140,311 2003 1.000 1.009 54,621
168 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 2.011 2.174 -- 2006 1.609 2.011 -- 2005 1.465 1.609 -- 2004 1.288 1.465 -- 2003 1.000 1.288 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.116 2.256 -- 2006 1.843 2.116 -- 2005 1.759 1.843 -- 2004 1.424 1.759 14,934 2003 1.000 1.424 10,103 The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.355 1.440 -- 2005 1.273 1.355 -- 2004 1.221 1.273 -- 2003 1.000 1.221 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.161 1.235 -- 2005 1.182 1.161 -- 2004 1.136 1.182 -- 2003 1.000 1.136 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.624 1.770 -- 2005 1.475 1.624 -- 2004 1.295 1.475 -- 2003 1.000 1.295 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.353 1.419 -- 2005 1.323 1.353 -- 2004 1.230 1.323 -- 2003 1.000 1.230 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.198 1.226 -- 2005 1.193 1.198 2,607 2004 1.104 1.193 2,537 2003 1.000 1.104 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.390 1.437 -- 2005 1.349 1.390 35,307 2004 1.246 1.349 9,849 2003 1.000 1.246 --
169 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Large Cap Subaccount (9/03).............. 2006 1.313 1.351 -- 2005 1.234 1.313 86,981 2004 1.184 1.234 91,451 2003 1.000 1.184 62,023 Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.070 1.136 -- 2005 1.019 1.070 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.012 1.014 -- 2005 1.000 1.012 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.028 1.063 -- 2005 1.000 1.028 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.030 1.073 -- 2005 1.000 1.030 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.032 1.050 -- 2005 1.000 1.032 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.439 1.525 -- 2005 1.312 1.439 23,807 2004 1.157 1.312 24,519 2003 1.000 1.157 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.438 1.519 -- 2005 1.426 1.438 2,296 2004 1.277 1.426 32,738 2003 1.000 1.277 20,866 Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.233 1.271 -- 2005 1.224 1.233 101,211 2004 1.122 1.224 56,755 2003 1.000 1.122 6,878 Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.154 1.244 -- 2005 1.107 1.154 -- 2004 0.976 1.107 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.531 1.756 -- 2005 1.429 1.531 -- 2004 1.261 1.429 -- 2003 1.000 1.261 --
170 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.339 1.418 -- 2005 1.291 1.339 -- 2004 1.187 1.291 -- 2003 1.000 1.187 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.007 1.058 -- 2005 1.000 1.007 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.097 1.106 -- 2005 1.081 1.097 -- 2004 0.979 1.081 -- Travelers Quality Bond Subaccount (8/03)........... 2006 1.017 1.006 -- 2005 1.022 1.017 -- 2004 1.011 1.022 -- 2003 1.000 1.011 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.319 1.373 -- 2005 1.320 1.319 8,669 2004 1.224 1.320 8,669 2003 1.000 1.224 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.018 1.170 -- 2005 1.000 1.018 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.976 1.117 -- 2005 1.000 0.976 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.065 1.024 -- 2005 1.043 1.065 -- 2004 1.006 1.043 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.671 1.597 53,018 2006 1.471 1.671 52,650 2005 1.444 1.471 52,959 2004 1.256 1.444 32,088 2003 1.000 1.256 4,136 Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.326 1.459 -- 2006 1.269 1.326 -- 2005 1.202 1.269 -- 2004 1.183 1.202 -- 2003 1.000 1.183 --
171 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.189 1.155 -- 2005 1.059 1.189 -- 2004 1.000 1.059 -- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.463 1.643 9,508 2006 1.242 1.463 10,117 2005 1.114 1.242 10,723 2004 1.000 1.114 8,168 American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.330 1.461 11,675 2006 1.234 1.330 11,888 2005 1.086 1.234 11,669 2004 1.000 1.086 10,072 American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.242 1.275 10,911 2006 1.103 1.242 10,410 2005 1.065 1.103 10,582 2004 1.000 1.065 8,461 Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.352 1.335 -- 2005 1.170 1.352 -- 2004 1.000 1.170 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.350 1.751 -- 2005 1.288 1.350 -- 2004 1.000 1.288 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.189 1.246 3,204 2006 1.044 1.189 3,266 2005 1.023 1.044 3,223 2004 1.000 1.023 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.149 0.999 -- 2006 1.132 1.149 -- 2005 1.094 1.132 -- 2004 1.000 1.094 --
172 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.204 1.306 -- 2005 1.117 1.204 -- 2004 1.000 1.117 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.206 1.341 -- 2005 1.120 1.206 -- 2004 1.000 1.120 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.376 1.579 3,071 2006 1.263 1.376 3,323 2005 1.108 1.263 3,222 2004 1.000 1.108 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.366 1.426 -- 2006 1.228 1.366 -- 2005 1.040 1.228 -- 2004 1.000 1.040 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 1.557 1.756 3,206 2006 1.417 1.557 3,388 2005 1.228 1.417 3,371 2004 1.000 1.228 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.190 1.377 -- 2005 1.101 1.190 4,060 2004 1.000 1.101 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 1.970 2.480 -- 2006 1.573 1.970 -- 2005 1.262 1.573 -- 2004 1.000 1.262 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.480 1.670 -- 2006 1.246 1.480 -- 2005 1.157 1.246 -- 2004 1.000 1.157 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.192 1.420 -- 2005 1.120 1.192 2,891 2004 1.000 1.120 --
173 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.066 1.088 -- 2005 1.076 1.066 -- 2004 1.008 1.076 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.125 1.160 -- 2005 1.069 1.125 -- 2004 1.000 1.069 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.187 1.412 -- 2006 1.141 1.187 -- 2005 1.039 1.141 -- 2004 1.000 1.039 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.211 1.441 -- 2006 1.149 1.211 -- 2005 1.053 1.149 -- 2004 1.000 1.053 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.295 1.384 -- 2006 1.123 1.295 -- 2005 1.088 1.123 -- 2004 1.000 1.088 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.145 1.278 -- 2005 1.126 1.145 -- 2004 1.000 1.126 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.260 1.210 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.229 1.267 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.228 1.260 -- 2006 1.091 1.228 -- 2005 1.070 1.091 -- 2004 1.000 1.070 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.290 1.230 --
174 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.301 1.321 -- 2006 1.125 1.301 -- 2005 1.080 1.125 -- 2004 1.000 1.080 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.073 1.069 -- LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.319 1.419 5,788 2006 1.197 1.319 5,830 2005 1.167 1.197 5,669 2004 1.000 1.167 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.156 1.254 -- 2006 1.098 1.156 -- 2005 1.076 1.098 -- 2004 0.954 1.076 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.017 1.008 -- 2006 0.999 1.017 -- 2005 0.998 0.999 -- 2004 1.000 0.998 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.243 1.301 -- 2006 1.076 1.243 -- 2005 1.058 1.076 -- 2004 1.000 1.058 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.039 1.080 -- 2006 1.020 1.039 -- 2005 0.991 1.020 -- 2004 1.000 0.991 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.231 1.272 -- 2006 1.133 1.231 -- 2005 1.055 1.133 -- 2004 1.000 1.055 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.187 1.237 -- 2006 1.080 1.187 -- 2005 1.066 1.080 -- 2004 1.000 1.066 --
175 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.274 1.321 -- 2006 1.111 1.274 -- 2005 1.100 1.111 -- 2004 1.000 1.100 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.348 1.483 -- 2006 1.229 1.348 -- 2005 1.161 1.229 -- 2004 1.000 1.161 -- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.089 1.121 -- 2005 1.072 1.089 -- 2004 1.013 1.072 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.272 1.319 -- 2006 1.000 1.272 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.163 1.169 -- 2006 1.000 1.163 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.376 1.440 -- 2006 1.000 1.376 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.428 1.433 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.185 1.147 -- 2006 1.000 1.185 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.545 1.498 -- 2006 1.000 1.545 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.363 1.738 -- 2006 1.000 1.363 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.207 1.065 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.179 1.226 -- 2006 1.000 1.179 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.136 1.186 -- 2006 1.000 1.136 --
176 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.073 1.092 -- 2006 1.000 1.073 -- MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.068 1.051 -- 2006 1.000 1.068 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.172 1.283 -- 2006 1.000 1.172 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.155 1.258 -- 2006 1.000 1.155 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.710 1.788 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.392 1.464 -- 2006 1.000 1.392 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.215 1.012 -- 2006 1.000 1.215 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.074 1.133 -- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.285 1.319 -- 2006 1.000 1.285 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.108 1.221 -- 2006 1.000 1.108 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.164 1.213 -- 2006 1.000 1.164 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.025 0.972 -- 2006 1.000 1.025 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.111 1.308 -- 2006 1.000 1.111 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.049 1.090 7,367 2006 1.000 1.049 7,210 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.026 1.053 -- 2006 1.000 1.026 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.157 1.176 -- 2006 1.000 1.157 --
177 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.206 1.228 1,959 2006 1.000 1.206 1,916 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.056 1.066 -- 2006 1.000 1.056 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.038 1.071 -- 2006 1.000 1.038 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.045 1.070 -- 2006 1.000 1.045 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.050 1.071 -- 2006 1.000 1.050 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.055 1.071 -- 2006 1.000 1.055 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.210 1.232 -- 2006 1.000 1.210 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.047 1.088 -- 2006 0.996 1.047 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.064 1.136 -- 2006 1.000 1.064 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.151 1.192 -- 2006 1.000 1.151 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.086 1.111 -- 2006 1.000 1.086 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.001 1.007 -- 2005 0.995 1.001 -- 2004 1.000 0.995 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.099 1.159 -- 2005 1.063 1.099 -- 2004 0.992 1.063 --
178 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.050 1.068 -- 2006 1.066 1.050 7,020 2005 1.068 1.066 6,474 2004 1.000 1.068 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.063 1.130 8,149 2006 1.047 1.063 7,954 2005 1.045 1.047 7,338 2004 1.000 1.045 6,721 Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 1.589 1.716 -- 2006 1.272 1.589 -- 2005 1.160 1.272 -- 2004 1.000 1.160 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 1.433 1.527 -- 2006 1.249 1.433 5,357 2005 1.194 1.249 5,391 2004 1.000 1.194 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.122 1.192 -- 2005 1.055 1.122 -- 2004 1.000 1.055 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.023 1.088 -- 2005 1.043 1.023 -- 2004 1.000 1.043 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.231 1.341 -- 2005 1.120 1.231 -- 2004 1.000 1.120 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.126 1.181 -- 2005 1.103 1.126 1,802 2004 1.000 1.103 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.082 1.107 -- 2005 1.079 1.082 -- 2004 1.000 1.079 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.112 1.149 -- 2005 1.080 1.112 -- 2004 1.000 1.080 --
179 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Large Cap Subaccount (9/03).............. 2006 1.115 1.146 -- 2005 1.049 1.115 -- 2004 1.000 1.049 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.069 1.135 -- 2005 1.019 1.069 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.012 1.014 -- 2005 1.000 1.012 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.027 1.062 -- 2005 1.000 1.027 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.030 1.072 -- 2005 1.000 1.030 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.031 1.049 -- 2005 1.000 1.031 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.232 1.306 -- 2005 1.125 1.232 -- 2004 1.000 1.125 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.082 1.143 -- 2005 1.074 1.082 -- 2004 1.000 1.074 -- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.104 1.137 -- 2005 1.096 1.104 -- 2004 1.000 1.096 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.173 1.265 -- 2005 1.127 1.173 -- 2004 0.994 1.127 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.227 1.406 -- 2005 1.146 1.227 -- 2004 1.000 1.146 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.133 1.200 -- 2005 1.094 1.133 -- 2004 1.000 1.094 --
180 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.007 1.057 -- 2005 1.000 1.007 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.119 1.128 -- 2005 1.104 1.119 -- 2004 1.000 1.104 -- Travelers Quality Bond Subaccount (8/03)........... 2006 1.026 1.014 -- 2005 1.032 1.026 6,730 2004 1.000 1.032 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.096 1.141 -- 2005 1.098 1.096 -- 2004 1.000 1.098 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.018 1.169 -- 2005 1.000 1.018 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.975 1.116 -- 2005 1.000 0.975 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.095 1.053 -- 2005 1.073 1.095 9,526 2004 1.036 1.073 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.307 1.248 -- 2006 1.152 1.307 -- 2005 1.132 1.152 -- 2004 1.000 1.132 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.143 1.257 -- 2006 1.095 1.143 -- 2005 1.038 1.095 -- 2004 1.000 1.038 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.190 1.157 -- 2005 1.059 1.190 -- 2004 1.000 1.059 --
181 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.465 1.645 -- 2006 1.243 1.465 -- 2005 1.114 1.243 -- 2004 1.000 1.114 -- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.332 1.464 -- 2006 1.235 1.332 -- 2005 1.087 1.235 -- 2004 1.000 1.087 -- American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.244 1.278 -- 2006 1.103 1.244 -- 2005 1.066 1.103 -- 2004 1.000 1.066 -- Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.353 1.336 -- 2005 1.170 1.353 -- 2004 1.000 1.170 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.351 1.753 -- 2005 1.289 1.351 -- 2004 1.000 1.289 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.191 1.248 -- 2006 1.045 1.191 -- 2005 1.023 1.045 -- 2004 1.000 1.023 -- Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.150 1.001 -- 2006 1.133 1.150 -- 2005 1.095 1.133 -- 2004 1.000 1.095 -- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.205 1.308 -- 2005 1.118 1.205 -- 2004 1.000 1.118 --
182 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.207 1.342 -- 2005 1.120 1.207 -- 2004 1.000 1.120 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.378 1.581 -- 2006 1.264 1.378 -- 2005 1.108 1.264 -- 2004 1.000 1.108 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.368 1.428 -- 2006 1.229 1.368 -- 2005 1.041 1.229 -- 2004 1.000 1.041 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 1.559 1.759 -- 2006 1.418 1.559 -- 2005 1.228 1.418 -- 2004 1.000 1.228 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.191 1.379 -- 2005 1.101 1.191 -- 2004 1.000 1.101 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 1.972 2.484 -- 2006 1.574 1.972 -- 2005 1.263 1.574 -- 2004 1.000 1.263 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.482 1.673 -- 2006 1.247 1.482 -- 2005 1.157 1.247 -- 2004 1.000 1.157 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.193 1.422 -- 2005 1.120 1.193 -- 2004 1.000 1.120 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.067 1.089 -- 2005 1.077 1.067 -- 2004 1.008 1.077 --
183 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.126 1.161 -- 2005 1.069 1.126 -- 2004 1.000 1.069 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.188 1.415 -- 2006 1.142 1.188 -- 2005 1.040 1.142 -- 2004 1.000 1.040 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.213 1.443 -- 2006 1.149 1.213 -- 2005 1.053 1.149 -- 2004 1.000 1.053 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.296 1.387 -- 2006 1.123 1.296 -- 2005 1.088 1.123 -- 2004 1.000 1.088 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.146 1.280 -- 2005 1.127 1.146 -- 2004 1.000 1.127 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.262 1.212 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.231 1.269 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.230 1.262 -- 2006 1.092 1.230 -- 2005 1.071 1.092 -- 2004 1.000 1.071 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.291 1.232 -- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.303 1.324 -- 2006 1.126 1.303 -- 2005 1.080 1.126 -- 2004 1.000 1.080 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.074 1.071 --
184 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.321 1.422 -- 2006 1.197 1.321 -- 2005 1.167 1.197 -- 2004 1.000 1.167 -- LMPVET Social Awareness Subaccount (9/04).......... 2007 1.158 1.256 -- 2006 1.099 1.158 -- 2005 1.076 1.099 -- 2004 0.954 1.076 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.018 1.010 -- 2006 1.000 1.018 -- 2005 0.999 1.000 -- 2004 1.000 0.999 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.244 1.303 -- 2006 1.077 1.244 -- 2005 1.058 1.077 -- 2004 1.000 1.058 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.041 1.082 -- 2006 1.021 1.041 -- 2005 0.991 1.021 -- 2004 1.000 0.991 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.232 1.273 -- 2006 1.134 1.232 -- 2005 1.055 1.134 -- 2004 1.000 1.055 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.189 1.239 -- 2006 1.081 1.189 -- 2005 1.066 1.081 -- 2004 1.000 1.066 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.275 1.323 -- 2006 1.112 1.275 -- 2005 1.101 1.112 -- 2004 1.000 1.101 --
185 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.350 1.485 -- 2006 1.230 1.350 -- 2005 1.162 1.230 -- 2004 1.000 1.162 -- Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.089 1.122 -- 2005 1.072 1.089 -- 2004 1.013 1.072 -- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.273 1.321 -- 2006 1.000 1.273 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.162 1.167 -- 2006 1.000 1.162 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.378 1.442 -- 2006 1.000 1.378 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.430 1.435 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.186 1.148 -- 2006 1.000 1.186 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.543 1.496 -- 2006 1.000 1.543 -- MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.364 1.741 -- 2006 1.000 1.364 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.208 1.066 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.181 1.228 -- 2006 1.000 1.181 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.137 1.188 -- 2006 1.000 1.137 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.073 1.091 5,120 2006 1.000 1.073 5,060 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.067 1.050 -- 2006 1.000 1.067 --
186 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.174 1.285 -- 2006 1.000 1.174 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.156 1.260 -- 2006 1.000 1.156 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.707 1.785 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.393 1.467 -- 2006 1.000 1.393 -- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.215 1.013 -- 2006 1.000 1.215 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.073 1.131 7,062 MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.286 1.321 -- 2006 1.000 1.286 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.109 1.222 -- 2006 1.000 1.109 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.165 1.215 -- 2006 1.000 1.165 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.024 0.971 8,312 2006 1.000 1.024 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.112 1.310 -- 2006 1.000 1.112 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.050 1.092 -- 2006 1.000 1.050 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.027 1.055 9,205 2006 1.000 1.027 9,583 MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.159 1.178 -- 2006 1.000 1.159 -- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.208 1.230 -- 2006 1.000 1.208 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.056 1.067 -- 2006 1.000 1.056 --
187 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.038 1.072 -- 2006 1.000 1.038 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.045 1.071 -- 2006 1.000 1.045 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.050 1.072 -- 2006 1.000 1.050 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.055 1.072 -- 2006 1.000 1.055 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.211 1.234 -- 2006 1.000 1.211 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.046 1.087 3,659 2006 0.996 1.046 3,700 MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.064 1.136 -- 2006 1.000 1.064 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.152 1.194 -- 2006 1.000 1.152 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.085 1.109 10,823 2006 1.000 1.085 10,422 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.001 1.008 -- 2005 0.995 1.001 -- 2004 1.000 0.995 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.100 1.160 -- 2005 1.064 1.100 -- 2004 0.992 1.064 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.051 1.070 -- 2006 1.067 1.051 -- 2005 1.068 1.067 -- 2004 1.000 1.068 --
188 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.064 1.132 -- 2006 1.047 1.064 -- 2005 1.045 1.047 -- 2004 1.000 1.045 -- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 1.591 1.719 -- 2006 1.273 1.591 -- 2005 1.160 1.273 -- 2004 1.000 1.160 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 1.435 1.529 -- 2006 1.250 1.435 -- 2005 1.194 1.250 -- 2004 1.000 1.194 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.123 1.193 -- 2005 1.055 1.123 -- 2004 1.000 1.055 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.024 1.090 -- 2005 1.043 1.024 -- 2004 1.000 1.043 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.232 1.343 -- 2005 1.120 1.232 -- 2004 1.000 1.120 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.127 1.182 -- 2005 1.103 1.127 -- 2004 1.000 1.103 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.083 1.108 -- 2005 1.079 1.083 -- 2004 1.000 1.079 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.113 1.150 -- 2005 1.080 1.113 -- 2004 1.000 1.080 -- Travelers Large Cap Subaccount (9/03).............. 2006 1.116 1.147 -- 2005 1.049 1.116 -- 2004 1.000 1.049 --
189 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.070 1.135 -- 2005 1.019 1.070 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.012 1.014 -- 2005 1.000 1.012 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.028 1.062 -- 2005 1.000 1.028 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.030 1.072 -- 2005 1.000 1.030 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.032 1.050 -- 2005 1.000 1.032 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.233 1.307 -- 2005 1.125 1.233 -- 2004 1.000 1.125 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.083 1.144 -- 2005 1.074 1.083 -- 2004 1.000 1.074 -- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.104 1.138 -- 2005 1.097 1.104 -- 2004 1.000 1.097 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.174 1.266 -- 2005 1.127 1.174 -- 2004 0.994 1.127 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.228 1.408 -- 2005 1.146 1.228 -- 2004 1.000 1.146 -- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.134 1.201 -- 2005 1.094 1.134 -- 2004 1.000 1.094 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.007 1.058 -- 2005 1.000 1.007 --
190 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.120 1.129 -- 2005 1.105 1.120 -- 2004 1.000 1.105 -- Travelers Quality Bond Subaccount (8/03)........... 2006 1.027 1.015 -- 2005 1.033 1.027 -- 2004 1.000 1.033 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.097 1.142 -- 2005 1.099 1.097 -- 2004 1.000 1.099 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.018 1.169 -- 2005 1.000 1.018 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.975 1.117 -- 2005 1.000 0.975 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.095 1.054 -- 2005 1.073 1.095 -- 2004 1.036 1.073 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.309 1.250 -- 2006 1.153 1.309 -- 2005 1.132 1.153 -- 2004 1.000 1.132 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.145 1.259 -- 2006 1.096 1.145 -- 2005 1.038 1.096 -- 2004 1.000 1.038 --
PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AllianceBernstein Variable Products Series Fund, Inc. AllianceBernstein Large-Cap Growth Subaccount (Class B) (10/03).................................. 2006 1.354 1.314 -- 2005 1.207 1.354 -- 2004 1.140 1.207 -- 2003 1.000 1.140 --
191 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- American Funds Insurance Series American Funds Global Growth Subaccount (Class 2) (6/03)............................................. 2007 1.908 2.140 -- 2006 1.622 1.908 -- 2005 1.455 1.622 -- 2004 1.313 1.455 -- 2003 1.000 1.313 -- American Funds Growth Subaccount (Class 2) (6/03).. 2007 1.682 1.845 13,004 2006 1.562 1.682 13,008 2005 1.376 1.562 13,012 2004 1.252 1.376 13,007 2003 1.000 1.252 8,906 American Funds Growth-Income Subaccount (Class 2) (6/03)............................................. 2007 1.568 1.608 11,271 2006 1.393 1.568 11,271 2005 1.348 1.393 11,271 2004 1.250 1.348 11,257 2003 1.000 1.250 11,257 Capital Appreciation Fund Capital Appreciation Fund (10/03).................. 2006 1.631 1.610 -- 2005 1.413 1.631 -- 2004 1.210 1.413 -- 2003 1.000 1.210 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (6/03)............................................. 2006 1.689 2.189 -- 2005 1.614 1.689 -- 2004 1.258 1.614 -- 2003 1.000 1.258 -- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (5/03)..................................... 2007 1.387 1.451 4,731 2006 1.219 1.387 4,731 2005 1.196 1.219 4,731 2004 1.165 1.196 4,718 2003 1.000 1.165 4,718 Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (6/03)..................................... 2007 1.456 1.265 -- 2006 1.436 1.456 -- 2005 1.390 1.436 -- 2004 1.278 1.390 -- 2003 1.000 1.278 --
192 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FAM Variable Series Funds, Inc. FAMVS Mercury Global Allocation V.I. Subaccount (Class III) (12/03)................................ 2006 1.294 1.404 -- 2005 1.202 1.294 -- 2004 1.078 1.202 -- 2003 1.000 1.078 -- FAMVS Mercury Value Opportunities V.I. Subaccount (Class III) (12/03)................................ 2006 1.291 1.436 -- 2005 1.200 1.291 -- 2004 1.071 1.200 -- 2003 1.000 1.071 -- Fidelity(R) Variable Insurance Products VIP Contrafund(R) Subaccount (Service Class 2) (5/03)............................................. 2007 1.721 1.971 -- 2006 1.581 1.721 -- 2005 1.387 1.581 -- 2004 1.233 1.387 -- 2003 1.000 1.233 -- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (6/03)........................... 2007 1.529 1.594 4,880 2006 1.375 1.529 4,885 2005 1.166 1.375 4,890 2004 1.179 1.166 4,895 2003 1.000 1.179 -- VIP Mid Cap Subaccount (Service Class 2) (6/03).... 2007 2.163 2.437 4,266 2006 1.970 2.163 4,266 2005 1.709 1.970 4,266 2004 1.403 1.709 4,277 2003 1.000 1.403 4,277 Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (6/03).......................................... 2006 1.427 1.650 -- 2005 1.321 1.427 -- 2004 1.201 1.321 -- 2003 1.000 1.201 -- FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (7/03)........................ 2007 2.792 3.511 -- 2006 2.231 2.792 -- 2005 1.792 2.231 -- 2004 1.471 1.792 -- 2003 1.000 1.471 --
193 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.967 2.218 -- 2006 1.658 1.967 -- 2005 1.541 1.658 -- 2004 1.331 1.541 -- 2003 1.210 1.331 -- FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/03)................................... 2006 1.591 1.894 -- 2005 1.497 1.591 -- 2004 1.321 1.497 -- 2003 1.000 1.321 -- High Yield Bond Trust High Yield Bond Trust (6/04)....................... 2006 1.046 1.067 -- 2005 1.057 1.046 -- 2004 0.990 1.057 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (7/03)............................................. 2006 1.211 1.248 -- 2005 1.152 1.211 -- 2004 1.089 1.152 -- 2003 1.000 1.089 -- Janus Aspen Global Life Sciences Subaccount (Service Shares) (12/03)........................... 2007 1.508 1.792 -- 2006 1.451 1.508 -- 2005 1.323 1.451 -- 2004 1.186 1.323 -- 2003 1.000 1.186 -- Janus Aspen Global Technology Subaccount (Service Shares) (11/03).................................... 2007 1.554 1.848 -- 2006 1.476 1.554 -- 2005 1.354 1.476 -- 2004 1.379 1.354 -- 2003 1.000 1.379 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (7/03)..................................... 2007 1.513 1.616 -- 2006 1.313 1.513 -- 2005 1.273 1.313 -- 2004 1.247 1.273 -- 2003 1.000 1.247 --
194 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (10/03)..... 2006 1.513 1.687 -- 2005 1.490 1.513 -- 2004 1.327 1.490 -- 2003 1.000 1.327 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (4/07)............................................. 2007 1.609 1.543 -- LMPVET Appreciation Subaccount (Class I) (4/07).... 2007 1.488 1.533 -- LMPVET Equity Index Subaccount (Class II) (5/03)... 2007 1.487 1.523 -- 2006 1.322 1.487 -- 2005 1.298 1.322 -- 2004 1.206 1.298 -- 2003 1.000 1.206 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.678 1.599 -- LMPVET Investors Subaccount (Class I) (7/03)....... 2007 1.642 1.667 -- 2006 1.422 1.642 -- 2005 1.366 1.422 -- 2004 1.267 1.366 -- 2003 1.000 1.267 -- LMPVET Large Cap Growth Subaccount (Class I) (4/07)............................................. 2007 1.379 1.374 7,360 LMPVET Small Cap Growth Subaccount (Class I) (8/03)............................................. 2007 1.805 1.939 4,239 2006 1.639 1.805 4,239 2005 1.599 1.639 4,239 2004 1.422 1.599 4,243 2003 1.000 1.422 4,243 LMPVET Social Awareness Subaccount (9/04).......... 2007 1.116 1.209 -- 2006 1.061 1.116 -- 2005 1.040 1.061 -- 2004 0.923 1.040 -- Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (12/03)... 2007 1.001 0.991 -- 2006 0.985 1.001 -- 2005 0.985 0.985 -- 2004 0.997 0.985 -- 2003 1.000 0.997 --
195 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (8/03)......... 2007 1.617 1.693 -- 2006 1.402 1.617 -- 2005 1.379 1.402 -- 2004 1.304 1.379 -- 2003 1.000 1.304 -- LMPVPI Large Cap Growth Subaccount (Class I) (9/03)............................................. 2007 1.337 1.389 -- 2006 1.313 1.337 7,367 2005 1.278 1.313 7,375 2004 1.301 1.278 4,379 2003 1.000 1.301 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class I) (7/03)............................................. 2007 1.572 1.624 -- 2006 1.449 1.572 -- 2005 1.350 1.449 -- 2004 1.267 1.350 -- 2003 1.000 1.267 -- LMPVPII Growth and Income Subaccount (Class I) (7/03)............................................. 2007 1.438 1.498 -- 2006 1.310 1.438 -- 2005 1.294 1.310 -- 2004 1.222 1.294 -- 2003 1.000 1.222 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (8/03)............................................. 2007 1.572 1.630 -- 2006 1.372 1.572 -- 2005 1.361 1.372 -- 2004 1.237 1.361 -- 2003 1.000 1.237 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (6/03)............................................. 2007 1.758 1.932 -- 2006 1.603 1.758 8,372 2005 1.516 1.603 8,376 2004 1.252 1.516 8,386 2003 1.000 1.252 4,576 Managed Assets Trust Managed Assets Trust (6/04)........................ 2006 1.071 1.102 -- 2005 1.056 1.071 -- 2004 0.998 1.056 --
196 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.667 1.727 -- 2006 1.000 1.667 -- MIST BlackRock High Yield Subaccount (Class A) (1/70) *........................................... 2007 1.278 1.283 -- 2006 1.000 1.278 -- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.597 1.671 -- 2006 1.000 1.597 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.657 1.661 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.183 1.144 -- 2006 1.000 1.183 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.914 1.853 6,834 2006 1.000 1.914 6,834 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 1.642 2.093 -- 2006 1.000 1.642 -- MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.205 1.062 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.159 1.204 -- 2006 1.000 1.159 -- MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.280 1.336 -- 2006 1.000 1.280 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.072 1.089 -- 2006 1.000 1.072 -- MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (1/70) *........................................... 2007 1.067 1.048 13,798 2006 1.000 1.067 -- MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.407 1.538 -- 2006 1.000 1.407 -- MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.154 1.255 -- 2006 1.000 1.154 -- MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 2.145 2.241 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.363 1.433 -- 2006 1.000 1.363 --
197 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.214 1.010 -- 2006 1.000 1.214 -- MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.110 1.169 -- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.508 1.547 -- 2006 1.000 1.508 -- MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.107 1.219 -- 2006 1.000 1.107 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.136 1.183 -- 2006 1.000 1.136 -- MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.024 0.970 -- 2006 1.000 1.024 -- Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.467 1.725 -- 2006 1.000 1.467 -- MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.033 1.073 -- 2006 1.000 1.033 -- MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.004 1.030 -- 2006 1.000 1.004 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 1.354 1.375 -- 2006 1.000 1.354 -- MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.439 1.463 -- 2006 1.000 1.439 -- MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.055 1.064 -- 2006 1.000 1.055 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.037 1.070 -- 2006 1.000 1.037 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.044 1.069 -- 2006 1.000 1.044 -- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.049 1.069 -- 2006 1.000 1.049 --
198 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.054 1.069 -- 2006 1.000 1.054 -- MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.343 1.367 -- 2006 1.000 1.343 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.046 1.085 -- 2006 0.996 1.046 -- MSF T. Rowe Price Large Cap Growth Subaccount (Class B) (1/70)................................... 2007 1.063 1.134 -- 2006 1.000 1.063 -- MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.128 1.168 -- 2006 1.000 1.128 -- MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.051 1.072 -- 2006 1.000 1.051 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.981 0.987 -- 2005 0.976 0.981 -- 2004 0.989 0.976 -- 2003 1.000 0.989 -- Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (7/04)..................................... 2006 1.082 1.140 -- 2005 1.047 1.082 -- 2004 0.977 1.047 -- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (9/03)...................................... 2007 1.086 1.105 -- 2006 1.104 1.086 -- 2005 1.107 1.104 -- 2004 1.041 1.107 -- 2003 1.000 1.041 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/03)...................................... 2007 1.048 1.113 -- 2006 1.033 1.048 -- 2005 1.032 1.033 -- 2004 1.008 1.032 -- 2003 1.000 1.008 --
199 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Putnam Variable Trust Putnam VT International Equity Subaccount (Class IB) (6/03)......................................... 2007 1.997 2.156 -- 2006 1.600 1.997 -- 2005 1.460 1.600 -- 2004 1.287 1.460 -- 2003 1.000 1.287 -- Putnam VT Small Cap Value Subaccount (Class IB) (6/03)............................................. 2007 2.101 2.238 -- 2006 1.833 2.101 -- 2005 1.753 1.833 -- 2004 1.422 1.753 -- 2003 1.000 1.422 -- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/03)............................................ 2006 1.347 1.431 -- 2005 1.269 1.347 -- 2004 1.219 1.269 -- 2003 1.000 1.219 -- Travelers Convertible Securities Subaccount (7/03)............................................. 2006 1.155 1.228 -- 2005 1.178 1.155 -- 2004 1.135 1.178 -- 2003 1.000 1.135 -- Travelers Disciplined Mid Cap Stock Subaccount (6/03)............................................. 2006 1.615 1.759 -- 2005 1.470 1.615 -- 2004 1.293 1.470 -- 2003 1.000 1.293 -- Travelers Equity Income Subaccount (7/03).......... 2006 1.345 1.410 -- 2005 1.318 1.345 -- 2004 1.228 1.318 -- 2003 1.000 1.228 -- Travelers Federated High Yield Subaccount (9/03)... 2006 1.191 1.218 -- 2005 1.189 1.191 -- 2004 1.103 1.189 -- 2003 1.000 1.103 -- Travelers Federated Stock Subaccount (6/03)........ 2006 1.383 1.428 -- 2005 1.344 1.383 -- 2004 1.245 1.344 -- 2003 1.000 1.245 --
200 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Large Cap Subaccount (9/03).............. 2006 1.306 1.343 -- 2005 1.230 1.306 -- 2004 1.182 1.230 -- 2003 1.000 1.182 -- Travelers Managed Allocation Series: Aggressive Subaccount (7/05).................................. 2006 1.069 1.134 -- 2005 1.019 1.069 -- Travelers Managed Allocation Series: Conservative Subaccount (10/05)................................. 2006 1.012 1.013 -- 2005 1.000 1.012 -- Travelers Managed Allocation Series: Moderate Subaccount (7/05).................................. 2006 1.027 1.061 -- 2005 1.000 1.027 -- Travelers Managed Allocation Series: Moderate- Aggressive Subaccount (1/70)....................... 2006 1.029 1.071 -- 2005 1.000 1.029 -- Travelers Managed Allocation Series: Moderate- Conservative Subaccount (1/70)..................... 2006 1.031 1.048 -- 2005 1.000 1.031 -- Travelers Mercury Large Cap Core Subaccount (7/03)............................................. 2006 1.431 1.516 -- 2005 1.308 1.431 -- 2004 1.155 1.308 -- 2003 1.000 1.155 -- Travelers MFS(R) Mid Cap Growth Subaccount (6/03).. 2006 1.431 1.510 -- 2005 1.421 1.431 -- 2004 1.275 1.421 -- 2003 1.000 1.275 -- Travelers MFS(R) Total Return Subaccount (5/03).... 2006 1.226 1.263 -- 2005 1.220 1.226 -- 2004 1.120 1.220 -- 2003 1.000 1.120 -- Travelers MFS(R) Value Subaccount (7/04)........... 2006 1.150 1.239 -- 2005 1.106 1.150 -- 2004 0.976 1.106 -- Travelers Mondrian International Stock Subaccount (8/03)............................................. 2006 1.523 1.745 -- 2005 1.424 1.523 6,834 2004 1.259 1.424 6,836 2003 1.000 1.259 6,836
201 PORTFOLIO ARCHITECT II -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Fund Subaccount (4/03)........... 2006 1.332 1.410 -- 2005 1.287 1.332 -- 2004 1.185 1.287 -- 2003 1.000 1.185 -- Travelers Pioneer Mid Cap Value Subaccount (8/05).. 2006 1.006 1.057 -- 2005 1.000 1.006 -- Travelers Pioneer Strategic Income Subaccount (6/04)............................................. 2006 1.094 1.102 -- 2005 1.080 1.094 -- 2004 0.978 1.080 -- Travelers Quality Bond Subaccount (8/03)........... 2006 1.012 1.000 -- 2005 1.019 1.012 -- 2004 1.010 1.019 -- 2003 1.000 1.010 -- Travelers Strategic Equity Subaccount (7/03)....... 2006 1.312 1.365 -- 2005 1.316 1.312 -- 2004 1.222 1.316 -- 2003 1.000 1.222 -- Travelers Style Focus Series: Small Cap Growth Subaccount (7/05).................................. 2006 1.017 1.168 -- 2005 1.000 1.017 -- Travelers Style Focus Series: Small Cap Value Subaccount (7/05).................................. 2006 0.975 1.115 -- 2005 1.000 0.975 -- Travelers U.S. Government Securities Subaccount (8/04)............................................. 2006 1.061 1.020 -- 2005 1.041 1.061 -- 2004 1.006 1.041 -- Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (6/03)............................................. 2007 1.659 1.582 -- 2006 1.463 1.659 -- 2005 1.439 1.463 -- 2004 1.254 1.439 -- 2003 1.000 1.254 -- Van Kampen LIT Enterprise Subaccount (Class II) (1/04)............................................. 2007 1.316 1.446 -- 2006 1.262 1.316 -- 2005 1.198 1.262 -- 2004 1.181 1.198 -- 2003 1.000 1.181 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. 202 The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix C for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 02/25/2005, The Travelers Series Trust-MFS Emerging Growth Portfolio merged into The Travelers Series Trust-MFS Mid Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, AllianceBernstein Variable Products Series Fund, Inc.-AllianceBernstein Large Cap Growth Portfolio was replaced by Metropolitan Series Fund, Inc.-T. Rowe Price Large Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Capital Appreciation Fund merged into Met Investors Series Trust-Janus Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Delaware VIP Trust-Delaware VIP REIT Series was replaced by Met Investors Series Trust-Neuberger Berman Real Estate Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, FAM Variable Series Fund, Inc.-Mercury Global Allocation Portfolio was replaced by Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, FAM Variable Series Fund, Inc.-Mercury Value Opportunities V.I. Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Franklin Templeton VIP Trust-Mutual Shares Securities Fund was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Franklin Templeton VIP Trust-Templeton Growth Securities Fund was replaced by Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, High Yield Bond Trust merged into Metropolitan Series Fund, Inc.-Western Asset Management High Yield Bond Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Janus Aspen Series-Janus Aspen Balanced Portfolio was replaced by Metropolitan Series Fund, Inc.-MSF Total Return Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Managed Assets Trust merged into Met Investors Series Trust-Legg Mason Partners Managed Assets Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Main Street Fund/VA was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Pioneer Strategic Income Portfolio merged into Met Investors Series Trust-Pioneer Strategic Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-AIM Capital Appreciation Portfolio merged into Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Convertible Securities Portfolio merged into Met Investors Series Trust-Lord Abbett Bond Debenture Portfolio and is no longer available as a funding option. 203 Effective on or about 05/01/2006, The Travelers Series Trust-Disciplined Mid Cap Stock Portfolio merged into Met Investors Series Trust-Batterymarch Mid-Cap Stock Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Equity Income Portfolio merged into Metropolitan Series Fund, Inc.-FI Value Leaders Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Federated High Yield Portfolio merged into Met Investors Series Trust-Federated High Yield Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Federated Stock Portfolio merged into Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Large Cap Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Aggressive Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Aggressive Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Conservative Portfolio merged into Metropolitan Series Fund, Inc.- MetLife Conservative Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Moderate Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Moderate Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Moderate-Aggressive Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Moderate to Aggressive Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Managed Allocation Series: Moderate-Conservative Portfolio merged into Metropolitan Series Fund, Inc.-MetLife Conservative to Moderate Allocation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Mercury Large Cap Core Portfolio merged into Met Investors Series Trust-Mercury Large-Cap Core Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-MFS(R) Mid Cap Growth Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-MFS(R) Total Return Portfolio merged into Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-MFS(R) Value Portfolio merged into Met Investors Series Trust-MFS(R) Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Mondrian International Stock Portfolio merged into Met Investors Series Trust-Harris Oakmark International Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Pioneer Fund Portfolio merged into Met Investors Series Trust-Pioneer Fund Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Strategic Equity Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Style Focus Series: Small Cap Growth Portfolio merged into Met Investors Series Trust-Met/AIM Small Cap Growth Portfolio and is no longer available as a funding option. 204 Effective on or about 05/01/2006, The Travelers Series Trust-Style Focus Series: Small Cap Value Portfolio merged into Met Investors Series Trust-Dreman Small- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-Travelers Quality Bond Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Bond Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, The Travelers Series Trust-U.S. Government Securities Portfolio merged into Metropolitan Series Fund, Inc.-Western Asset Management U.S. Government Portfolio and is no longer available as a funding option. Effective on or about 11/13/2006, Lazard Retirement Series, Inc.-Lazard Retirement Small Cap Portfolio was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Large Cap Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Large Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II, Inc.-Legg Mason Partners Variable Aggressive Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II- Legg Mason Partners Variable Growth and Income Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Appreciation Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Growth and Income Portfolio was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Mid- Cap Value Portfolio was replaced by Met Investors Series Trust-Lord Abbett Mid- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class A was exchanged for Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Lazard Mid-Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Metropolitan Series Funds, Inc.-Western Asset Management High Yield Bond Portfolio was replaced by Met Investors Series Trust- BlackRock High Yield Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, PIMCO Variable Insurance Trust-Real Return Portfolio was replaced by Met Investors Series Trust-PIMCO Inflation Protected Bond Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT International Equity Fund was replaced by Met Investors Series Trust-MFS(R) Research International Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT Small Cap Value Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. 205 CONDENSED FINANCIAL INFORMATION -- PIONEER ANNUISTAR VALUE - -------------------------------------------------------------------------------- The following tables provide the Accumulation Unit Values information for the MID-RANGE combinations of separate account charges. The Accumulation Unit Value information for the minimum separate account charge and the maximum variable account charge are contained in the Prospectus. PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.70%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.257 1.339 -- 2006 1.205 1.257 -- 2005 1.129 1.205 -- 2004 1.080 1.129 -- 2003 1.000 1.080 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.373 1.475 -- 2006 1.259 1.373 -- 2005 1.193 1.259 -- 2004 1.069 1.193 -- 2003 1.000 1.069 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.392 1.331 17,659 2006 1.209 1.392 17,633 2005 1.189 1.209 -- 2004 1.089 1.189 -- 2003 1.000 1.089 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.305 1.427 -- 2006 1.221 1.305 -- 2005 1.185 1.221 -- 2004 1.081 1.185 -- 2003 1.000 1.081 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.678 1.904 -- 2006 1.405 1.678 -- 2005 1.297 1.405 -- 2004 1.113 1.297 -- 2003 1.000 1.113 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.387 1.335 20,855 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.294 1.298 --
206 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.460 1.397 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.200 1.257 -- 2006 1.035 1.200 -- 2005 0.950 1.035 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.265 1.300 -- 2006 1.146 1.265 -- 2005 1.132 1.146 -- 2004 1.061 1.132 -- 2003 1.000 1.061 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.353 1.399 -- 2006 1.242 1.353 20,518 2005 1.152 1.242 -- 2004 1.077 1.152 -- 2003 1.000 1.077 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.322 1.379 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.007 1.132 -- 2006 1.000 1.007 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.032 1.066 -- 2006 1.000 1.032 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.979 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.051 1.098 47,201 2006 1.000 1.051 47,521 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.002 1.010 -- 2005 0.990 1.002 -- 2004 0.997 0.990 -- 2003 1.000 0.997 --
207 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.177 1.230 -- 2005 1.141 1.177 -- 2004 1.089 1.141 -- 2003 1.000 1.089 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.514 1.648 -- 2005 1.350 1.514 -- 2004 1.155 1.350 -- 2003 1.000 1.155 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.035 1.073 -- 2006 1.021 1.035 -- 2005 1.020 1.021 -- 2004 1.007 1.020 -- 2003 1.000 1.007 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.995 1.118 -- 2005 1.000 0.995 -- 2004 0.994 1.000 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.103 1.173 -- 2005 1.082 1.103 -- 2004 1.052 1.082 -- 2003 1.000 1.052 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.249 1.307 32,589 2006 1.085 1.249 32,299 2005 1.020 1.085 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.527 3.539 3,107 2006 1.897 2.527 3,448 2005 1.402 1.897 -- 2004 1.202 1.402 -- 2003 1.000 1.202 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.552 1.534 15,112 2006 1.293 1.552 15,743 2005 1.246 1.293 16,437 2004 1.092 1.246 -- 2003 1.000 1.092 --
208 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.247 1.372 -- 2006 1.064 1.247 -- 2005 1.000 1.064 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.449 1.839 -- 2005 1.367 1.449 -- 2004 1.176 1.367 -- 2003 1.000 1.176 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.420 1.463 -- 2006 1.242 1.420 -- 2005 1.192 1.242 -- 2004 1.093 1.192 -- 2003 1.000 1.093 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.145 1.149 -- 2006 1.039 1.145 -- 2005 1.026 1.039 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.201 1.247 -- 2006 1.129 1.201 -- 2005 1.129 1.129 -- 2004 1.066 1.129 -- 2003 1.000 1.066 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.219 1.261 -- 2006 1.084 1.219 -- 2005 1.014 1.084 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.178 1.225 -- 2006 1.064 1.178 -- 2005 0.991 1.064 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.141 1.185 47,430 2006 1.049 1.141 49,409 2005 0.976 1.049 51,588 Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.186 1.253 -- 2006 1.107 1.186 -- 2005 1.091 1.107 -- 2004 1.043 1.091 -- 2003 1.000 1.043 --
209 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.831 2.039 7,153 2006 1.519 1.831 7,451 2005 1.342 1.519 7,780 2004 1.152 1.342 -- 2003 1.000 1.152 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.581 1.637 -- 2006 1.432 1.581 -- 2005 1.353 1.432 -- 2004 1.130 1.353 -- 2003 1.000 1.130 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.176 1.250 23,863 2006 1.164 1.176 23,448 2005 1.094 1.164 -- 2004 1.023 1.094 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.221 1.767 7,792 2006 1.655 2.221 7,857 2005 1.466 1.655 -- 2004 1.101 1.466 -- 2003 1.000 1.101 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.169 1.381 -- 2006 1.103 1.169 -- 2005 1.072 1.103 -- 2004 1.049 1.072 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.589 1.450 10,321 2006 1.416 1.589 10,321 2005 1.297 1.416 -- 2004 1.100 1.297 -- 2003 1.000 1.100 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.181 1.253 -- 2005 1.181 1.181 -- 2004 1.061 1.181 -- 2003 1.000 1.061 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.201 1.253 43,016 2006 1.150 1.201 43,716 2005 1.141 1.150 18,236 2004 1.055 1.141 -- 2003 1.000 1.055 --
210 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.70% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.399 1.399 -- 2006 1.237 1.399 -- 2005 1.202 1.237 -- 2004 1.097 1.202 -- 2003 1.000 1.097 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.75%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.422 1.515 -- 2006 1.364 1.422 -- 2005 1.279 1.364 -- 2004 1.224 1.279 -- 2003 1.000 1.224 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.594 1.712 -- 2006 1.462 1.594 -- 2005 1.387 1.462 -- 2004 1.243 1.387 -- 2003 1.000 1.243 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.549 1.481 27,482 2006 1.346 1.549 27,586 2005 1.324 1.346 29,997 2004 1.214 1.324 35,918 2003 1.000 1.214 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.606 1.756 9,320 2006 1.504 1.606 9,705 2005 1.460 1.504 -- 2004 1.333 1.460 -- 2003 1.000 1.333 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 2.011 2.282 27,954 2006 1.685 2.011 29,061 2005 1.557 1.685 10,361 2004 1.336 1.557 11,039 2003 1.000 1.336 --
211 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.612 1.551 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.356 1.359 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.718 1.644 3,205 Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.199 1.256 -- 2006 1.035 1.199 -- 2005 0.950 1.035 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.325 1.362 -- 2006 1.201 1.325 -- 2005 1.187 1.201 -- 2004 1.113 1.187 -- 2003 1.000 1.113 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.573 1.627 -- 2006 1.445 1.573 -- 2005 1.342 1.445 -- 2004 1.255 1.342 -- 2003 1.000 1.255 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.496 1.560 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.007 1.131 25,106 2006 1.000 1.007 24,653 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.026 1.060 43,594 2006 1.000 1.026 17,507 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.978 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.051 1.098 -- 2006 1.000 1.051 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.997 1.005 -- 2005 0.986 0.997 18,645 2004 0.993 0.986 19,865 2003 1.000 0.993 --
212 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.330 1.389 -- 2005 1.290 1.330 -- 2004 1.231 1.290 -- 2003 1.000 1.231 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.848 2.011 -- 2005 1.649 1.848 -- 2004 1.411 1.649 -- 2003 1.000 1.411 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.021 1.058 -- 2006 1.007 1.021 -- 2005 1.007 1.007 -- 2004 0.994 1.007 -- 2003 1.000 0.994 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.994 1.117 -- 2005 1.000 0.994 -- 2004 0.994 1.000 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.161 1.234 -- 2005 1.139 1.161 33,952 2004 1.109 1.139 36,173 2003 1.000 1.109 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 19,483 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.248 1.305 131,355 2006 1.084 1.248 147,395 2005 1.020 1.084 13,651 Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.167 4.433 44,929 2006 2.378 3.167 47,018 2005 1.759 2.378 4,460 2004 1.508 1.759 3,035 2003 1.000 1.508 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.708 1.687 78,900 2006 1.423 1.708 78,533 2005 1.372 1.423 10,312 2004 1.203 1.372 15,160 2003 1.000 1.203 --
213 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.246 1.370 -- 2006 1.063 1.246 19,994 2005 1.000 1.063 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.577 2.000 -- 2005 1.488 1.577 -- 2004 1.281 1.488 -- 2003 1.000 1.281 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.571 1.618 -- 2006 1.374 1.571 -- 2005 1.320 1.374 -- 2004 1.211 1.320 -- 2003 1.000 1.211 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.144 1.148 39,156 2006 1.039 1.144 20,807 2005 1.026 1.039 14,368 Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.295 1.344 22,054 2006 1.218 1.295 6,461 2005 1.219 1.218 -- 2004 1.151 1.219 -- 2003 1.000 1.151 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.218 1.259 6,144 2006 1.083 1.218 6,168 2005 1.014 1.083 6,195 Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.177 1.223 1,439,974 2006 1.063 1.177 1,451,335 2005 0.991 1.063 1,365,800 Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.140 1.184 32,376 2006 1.049 1.140 34,427 2005 0.976 1.049 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.308 1.381 -- 2006 1.221 1.308 -- 2005 1.204 1.221 -- 2004 1.152 1.204 -- 2003 1.000 1.152 --
214 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.044 2.274 -- 2006 1.697 2.044 -- 2005 1.499 1.697 -- 2004 1.288 1.499 -- 2003 1.000 1.288 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.846 1.911 7,233 2006 1.673 1.846 7,260 2005 1.582 1.673 -- 2004 1.322 1.582 13,464 2003 1.000 1.322 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.174 1.248 26,371 2006 1.163 1.174 26,159 2005 1.094 1.163 12,547 2004 1.022 1.094 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.537 2.016 4,020 2006 1.891 2.537 3,368 2005 1.676 1.891 -- 2004 1.259 1.676 9,713 2003 1.000 1.259 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.168 1.378 -- 2006 1.102 1.168 -- 2005 1.072 1.102 -- 2004 1.049 1.072 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.952 1.780 19,973 2006 1.740 1.952 17,549 2005 1.594 1.740 8,504 2004 1.353 1.594 13,226 2003 1.000 1.353 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.426 1.514 -- 2005 1.428 1.426 -- 2004 1.284 1.428 -- 2003 1.000 1.284 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.236 1.289 16,323 2006 1.184 1.236 -- 2005 1.175 1.184 -- 2004 1.088 1.175 -- 2003 1.000 1.088 --
215 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.515 1.514 -- 2006 1.340 1.515 -- 2005 1.303 1.340 -- 2004 1.190 1.303 -- 2003 1.000 1.190 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.90%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.248 1.329 -- 2006 1.200 1.248 19,465 2005 1.126 1.200 18,575 2004 1.079 1.126 14,804 2003 1.000 1.079 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.364 1.463 13,751 2006 1.253 1.364 14,076 2005 1.190 1.253 13,707 2004 1.068 1.190 11,715 2003 1.000 1.068 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.383 1.320 152,572 2006 1.203 1.383 152,126 2005 1.185 1.203 161,331 2004 1.088 1.185 166,429 2003 1.000 1.088 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.296 1.415 55,528 2006 1.215 1.296 39,224 2005 1.182 1.215 39,018 2004 1.081 1.182 36,947 2003 1.000 1.081 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.667 1.888 51,119 2006 1.399 1.667 54,400 2005 1.294 1.399 59,262 2004 1.113 1.294 62,699 2003 1.000 1.113 --
216 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.377 1.323 17,167 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.285 1.287 30,995 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.449 1.385 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.196 1.252 -- 2006 1.034 1.196 -- 2005 0.950 1.034 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.256 1.291 -- 2006 1.141 1.256 31,367 2005 1.129 1.141 31,193 2004 1.061 1.129 24,229 2003 1.000 1.061 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.344 1.389 -- 2006 1.237 1.344 15,746 2005 1.149 1.237 15,341 2004 1.077 1.149 11,912 2003 1.000 1.077 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.313 1.367 19,740 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.006 1.128 68,267 2006 1.000 1.006 75,238 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.025 1.057 21,980 2006 1.000 1.025 1,312 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.977 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.050 1.095 24,247 2006 1.000 1.050 30,712 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.997 1.005 -- 2005 0.988 0.997 1,251 2004 0.996 0.988 1,115 2003 1.000 0.996 --
217 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.171 1.223 -- 2005 1.139 1.171 61,346 2004 1.088 1.139 71,475 2003 1.000 1.088 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.507 1.639 -- 2005 1.347 1.507 20,984 2004 1.154 1.347 24,509 2003 1.000 1.154 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.028 1.064 -- 2006 1.016 1.028 -- 2005 1.017 1.016 -- 2004 1.006 1.017 -- 2003 1.000 1.006 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.992 1.112 -- 2005 0.999 0.992 20,728 2004 0.993 0.999 18,843 Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.098 1.165 -- 2005 1.079 1.098 35,938 2004 1.052 1.079 47,669 2003 1.000 1.052 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.245 1.299 -- 2006 1.083 1.245 -- 2005 1.019 1.083 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.511 3.509 20,024 2006 1.888 2.511 22,646 2005 1.398 1.888 28,291 2004 1.201 1.398 22,660 2003 1.000 1.201 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.542 1.521 144,447 2006 1.287 1.542 153,352 2005 1.243 1.287 164,842 2004 1.092 1.243 170,578 2003 1.000 1.092 --
218 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.243 1.364 -- 2006 1.062 1.243 -- 2005 1.000 1.062 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.442 1.827 -- 2005 1.363 1.442 773 2004 1.176 1.363 254 2003 1.000 1.176 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.411 1.451 184,559 2006 1.236 1.411 163,235 2005 1.189 1.236 171,444 2004 1.092 1.189 199,552 2003 1.000 1.092 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.141 1.143 -- 2006 1.038 1.141 -- 2005 1.025 1.038 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.193 1.236 69,761 2006 1.124 1.193 74,050 2005 1.126 1.124 69,294 2004 1.065 1.126 58,955 2003 1.000 1.065 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.215 1.254 -- 2006 1.082 1.215 -- 2005 1.013 1.082 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.174 1.218 69,228 2006 1.062 1.174 64,568 2005 0.991 1.062 64,595 Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.137 1.179 185,113 2006 1.047 1.137 144,455 2005 0.976 1.047 111,797 Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.179 1.242 7,949 2006 1.102 1.179 8,115 2005 1.088 1.102 11,941 2004 1.043 1.088 8,147 2003 1.000 1.043 --
219 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.819 2.021 15,438 2006 1.512 1.819 16,215 2005 1.338 1.512 19,131 2004 1.152 1.338 23,324 2003 1.000 1.152 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.570 1.623 82,867 2006 1.425 1.570 93,899 2005 1.350 1.425 99,828 2004 1.130 1.350 99,962 2003 1.000 1.130 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.170 1.241 52,050 2006 1.160 1.170 62,960 2005 1.092 1.160 46,259 2004 1.022 1.092 54,270 Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.207 1.752 10,513 2006 1.648 2.207 10,667 2005 1.462 1.648 12,316 2004 1.101 1.462 15,067 2003 1.000 1.101 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.163 1.371 -- 2006 1.099 1.163 37,225 2005 1.071 1.099 38,723 2004 1.049 1.071 46,421 Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.579 1.438 52,063 2006 1.410 1.579 52,684 2005 1.293 1.410 51,135 2004 1.099 1.293 43,979 2003 1.000 1.099 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.175 1.247 -- 2005 1.178 1.175 9,385 2004 1.061 1.178 17,328 2003 1.000 1.061 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.193 1.242 37,051 2006 1.144 1.193 40,502 2005 1.138 1.144 41,191 2004 1.055 1.138 34,387 2003 1.000 1.055 --
220 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.90% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.389 1.387 -- 2006 1.231 1.389 38,445 2005 1.198 1.231 37,085 2004 1.096 1.198 37,401 2003 1.000 1.096 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.95%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.411 1.503 -- 2006 1.357 1.411 245,854 2005 1.274 1.357 284,977 2004 1.222 1.274 231,497 2003 1.000 1.222 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.583 1.696 173,532 2006 1.454 1.583 180,281 2005 1.382 1.454 183,457 2004 1.241 1.382 108,904 2003 1.000 1.241 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.538 1.468 873,265 2006 1.339 1.538 917,416 2005 1.320 1.339 940,154 2004 1.213 1.320 637,163 2003 1.000 1.213 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.595 1.739 171,256 2006 1.496 1.595 181,691 2005 1.456 1.496 192,772 2004 1.331 1.456 195,100 2003 1.000 1.331 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.996 2.260 338,225 2006 1.676 1.996 384,846 2005 1.551 1.676 258,807 2004 1.335 1.551 177,969 2003 1.000 1.335 --
221 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.600 1.537 591,557 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.345 1.346 373,703 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.705 1.629 95,832 Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.194 1.250 -- 2006 1.033 1.194 -- 2005 0.950 1.033 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.315 1.351 -- 2006 1.194 1.315 416,781 2005 1.183 1.194 398,222 2004 1.112 1.183 267,186 2003 1.000 1.112 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.562 1.614 -- 2006 1.438 1.562 598,287 2005 1.337 1.438 656,296 2004 1.253 1.337 533,462 2003 1.000 1.253 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.484 1.545 242,982 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.006 1.127 262,382 2006 1.000 1.006 257,892 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.019 1.050 6,539,378 2006 1.000 1.019 410,536 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.977 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.049 1.094 627,831 2006 1.000 1.049 635,885 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.991 0.999 -- 2005 0.982 0.991 555,003 2004 0.992 0.982 1,188,876 2003 1.000 0.992 90,248
222 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.322 1.381 -- 2005 1.286 1.322 178,734 2004 1.230 1.286 151,437 2003 1.000 1.230 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.838 1.999 -- 2005 1.643 1.838 309,893 2004 1.409 1.643 181,942 2003 1.000 1.409 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.013 1.048 -- 2006 1.001 1.013 641,030 2005 1.003 1.001 653,184 2004 0.993 1.003 468,464 2003 1.000 0.993 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.991 1.111 -- 2005 0.998 0.991 42,068 2004 0.993 0.998 41,461 Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.155 1.225 -- 2005 1.136 1.155 219,105 2004 1.107 1.136 157,092 2003 1.000 1.107 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 646,077 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.244 1.297 143,160 2006 1.082 1.244 140,730 2005 1.019 1.082 146,470 Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.144 4.391 167,274 2006 2.366 3.144 130,823 2005 1.753 2.366 154,430 2004 1.506 1.753 140,964 2003 1.000 1.506 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.695 1.671 533,932 2006 1.415 1.695 597,342 2005 1.368 1.415 605,737 2004 1.202 1.368 426,769 2003 1.000 1.202 --
223 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.242 1.363 -- 2006 1.062 1.242 -- 2005 1.000 1.062 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.568 1.986 -- 2005 1.483 1.568 32,721 2004 1.280 1.483 13,099 2003 1.000 1.280 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.560 1.603 844,967 2006 1.367 1.560 682,529 2005 1.316 1.367 738,510 2004 1.209 1.316 586,630 2003 1.000 1.209 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.140 1.141 13,062 2006 1.037 1.140 13,016 2005 1.025 1.037 15,394 Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.286 1.332 781,784 2006 1.211 1.286 918,382 2005 1.215 1.211 1,032,790 2004 1.149 1.215 746,313 2003 1.000 1.149 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.214 1.252 7,940 2006 1.081 1.214 7,940 2005 1.013 1.081 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.173 1.217 27,628 2006 1.062 1.173 19,939 2005 0.991 1.062 19,966 Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.136 1.177 302,807 2006 1.047 1.136 315,267 2005 0.976 1.047 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.299 1.368 161,959 2006 1.215 1.299 157,388 2005 1.200 1.215 155,730 2004 1.151 1.200 149,246 2003 1.000 1.151 --
224 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.029 2.253 212,932 2006 1.688 2.029 166,644 2005 1.494 1.688 129,994 2004 1.286 1.494 27,095 2003 1.000 1.286 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.832 1.893 311,109 2006 1.664 1.832 361,809 2005 1.576 1.664 359,343 2004 1.320 1.576 236,024 2003 1.000 1.320 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.168 1.238 264,732 2006 1.159 1.168 287,108 2005 1.092 1.159 231,337 2004 1.022 1.092 40,688 Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.518 1.998 366,841 2006 1.881 2.518 418,229 2005 1.670 1.881 441,307 2004 1.258 1.670 237,566 2003 1.000 1.258 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.161 1.368 -- 2006 1.098 1.161 104,074 2005 1.070 1.098 103,572 2004 1.049 1.070 59,182 Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.938 1.764 182,014 2006 1.731 1.938 211,180 2005 1.589 1.731 274,235 2004 1.351 1.589 92,868 2003 1.000 1.351 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.419 1.504 -- 2005 1.423 1.419 67,239 2004 1.282 1.423 61,193 2003 1.000 1.282 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.227 1.277 1,079,004 2006 1.177 1.227 1,518,285 2005 1.171 1.177 1,256,972 2004 1.086 1.171 848,679 2003 1.000 1.086 --
225 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 1.95% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.504 1.501 -- 2006 1.333 1.504 334,921 2005 1.298 1.333 360,467 2004 1.188 1.298 250,563 2003 1.000 1.188 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.00%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.169 1.245 -- 2006 1.125 1.169 -- 2005 1.057 1.125 -- 2004 1.000 1.057 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.221 1.308 33,756 2006 1.122 1.221 46,572 2005 1.067 1.122 33,961 2004 1.000 1.067 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.251 1.193 -- 2006 1.089 1.251 38,461 2005 1.075 1.089 -- 2004 1.000 1.075 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.190 1.297 76,731 2006 1.117 1.190 27,657 2005 1.087 1.117 27,553 2004 1.000 1.087 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.489 1.685 33,197 2006 1.251 1.489 4,508 2005 1.158 1.251 4,934 2004 1.000 1.158 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.260 1.211 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.199 1.200 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.299 1.241 --
226 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.193 1.249 -- 2006 1.033 1.193 26,960 2005 0.950 1.033 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.172 1.204 -- 2006 1.065 1.172 -- 2005 1.056 1.065 -- 2004 1.000 1.056 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.231 1.272 -- 2006 1.134 1.231 -- 2005 1.055 1.134 -- 2004 1.000 1.055 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.229 1.280 21,498 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.005 1.126 -- 2006 1.000 1.005 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.032 1.063 -- 2006 1.000 1.032 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.977 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.049 1.093 52,575 2006 1.000 1.049 70,004 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.005 1.012 -- 2005 0.996 1.005 -- 2004 1.000 0.996 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.078 1.125 -- 2005 1.049 1.078 -- 2004 1.000 1.049 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.310 1.424 -- 2005 1.171 1.310 24,184 2004 1.000 1.171 --
227 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.044 1.079 -- 2006 1.032 1.044 -- 2005 1.035 1.032 -- 2004 1.000 1.035 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.986 1.105 -- 2005 0.994 0.986 5,578 2004 0.989 0.994 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.045 1.108 -- 2005 1.028 1.045 -- 2004 1.000 1.028 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.242 1.296 13,012 2006 1.082 1.242 51,016 2005 1.019 1.082 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.325 3.247 16,844 2006 1.751 2.325 4,904 2005 1.298 1.751 -- 2004 1.000 1.298 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.396 1.375 -- 2006 1.166 1.396 20,562 2005 1.127 1.166 -- 2004 1.000 1.127 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.241 1.361 -- 2006 1.061 1.241 -- 2005 1.000 1.061 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.247 1.578 -- 2005 1.180 1.247 -- 2004 1.000 1.180 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.294 1.329 5,295 2006 1.134 1.294 5,139 2005 1.093 1.134 5,379 2004 1.000 1.093 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.139 1.140 -- 2006 1.037 1.139 -- 2005 1.025 1.037 --
228 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.150 1.190 -- 2006 1.084 1.150 -- 2005 1.087 1.084 -- 2004 1.000 1.087 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.213 1.250 -- 2006 1.081 1.213 -- 2005 1.013 1.081 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.172 1.215 -- 2006 1.061 1.172 -- 2005 0.991 1.061 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.135 1.176 -- 2006 1.047 1.135 -- 2005 0.976 1.047 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.171 1.233 39,121 2006 1.096 1.171 50,967 2005 1.083 1.096 26,974 2004 1.000 1.083 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.591 1.766 49,805 2006 1.324 1.591 23,171 2005 1.173 1.324 -- 2004 1.000 1.173 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.331 1.374 20,168 2006 1.209 1.331 6,829 2005 1.146 1.209 6,922 2004 1.000 1.146 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.146 1.214 13,207 2006 1.137 1.146 13,126 2005 1.072 1.137 7,283 2004 1.000 1.072 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.974 1.565 -- 2006 1.476 1.974 16,962 2005 1.311 1.476 -- 2004 1.000 1.311 --
229 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.00% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.097 1.292 -- 2006 1.038 1.097 -- 2005 1.012 1.038 -- 2004 0.992 1.012 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.409 1.282 -- 2006 1.259 1.409 -- 2005 1.156 1.259 -- 2004 1.000 1.156 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.106 1.173 -- 2005 1.110 1.106 -- 2004 1.000 1.110 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.151 1.198 38,622 2006 1.106 1.151 38,344 2005 1.100 1.106 37,630 2004 1.000 1.100 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.259 1.256 -- 2006 1.117 1.259 -- 2005 1.088 1.117 -- 2004 1.000 1.088 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.10%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.240 1.320 -- 2006 1.194 1.240 -- 2005 1.123 1.194 -- 2004 1.078 1.123 -- 2003 1.000 1.078 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.355 1.450 -- 2006 1.247 1.355 -- 2005 1.187 1.247 -- 2004 1.067 1.187 -- 2003 1.000 1.067 --
230 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.374 1.309 51,702 2006 1.198 1.374 71,724 2005 1.182 1.198 72,820 2004 1.088 1.182 51,491 2003 1.000 1.088 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.288 1.402 -- 2006 1.210 1.288 8,959 2005 1.179 1.210 9,243 2004 1.080 1.179 6,068 2003 1.000 1.080 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.656 1.872 -- 2006 1.392 1.656 7,576 2005 1.291 1.392 8,197 2004 1.112 1.291 5,712 2003 1.000 1.112 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.367 1.312 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.276 1.276 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.439 1.373 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.191 1.246 -- 2006 1.032 1.191 -- 2005 0.950 1.032 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.248 1.281 -- 2006 1.135 1.248 -- 2005 1.126 1.135 -- 2004 1.060 1.126 -- 2003 1.000 1.060 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.335 1.379 -- 2006 1.231 1.335 -- 2005 1.146 1.231 -- 2004 1.076 1.146 -- 2003 1.000 1.076 --
231 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.303 1.356 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.005 1.124 -- 2006 1.000 1.005 23,539 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.019 1.048 -- 2006 1.000 1.019 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.976 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.048 1.091 31,207 2006 1.000 1.048 33,752 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.992 1.000 -- 2005 0.985 0.992 -- 2004 0.996 0.985 -- 2003 1.000 0.996 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.166 1.217 -- 2005 1.136 1.166 18,345 2004 1.088 1.136 12,301 2003 1.000 1.088 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.500 1.630 -- 2005 1.343 1.500 20,517 2004 1.154 1.343 16,695 2003 1.000 1.154 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.022 1.056 -- 2006 1.011 1.022 -- 2005 1.015 1.011 -- 2004 1.006 1.015 -- 2003 1.000 1.006 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.988 1.106 -- 2005 0.997 0.988 -- 2004 0.992 0.997 --
232 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.093 1.157 -- 2005 1.076 1.093 -- 2004 1.051 1.076 -- 2003 1.000 1.051 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.240 1.292 -- 2006 1.081 1.240 -- 2005 1.018 1.081 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.494 3.479 -- 2006 1.880 2.494 -- 2005 1.395 1.880 -- 2004 1.200 1.395 -- 2003 1.000 1.200 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.532 1.508 22,711 2006 1.281 1.532 43,043 2005 1.240 1.281 43,850 2004 1.091 1.240 31,987 2003 1.000 1.091 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.239 1.357 -- 2006 1.061 1.239 -- 2005 1.000 1.061 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.436 1.815 -- 2005 1.360 1.436 -- 2004 1.175 1.360 -- 2003 1.000 1.175 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.402 1.438 47,448 2006 1.230 1.402 24,471 2005 1.186 1.230 24,216 2004 1.092 1.186 18,260 2003 1.000 1.092 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.137 1.137 -- 2006 1.036 1.137 -- 2005 1.024 1.036 --
233 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.186 1.226 28,211 2006 1.119 1.186 38,851 2005 1.123 1.119 35,093 2004 1.064 1.123 24,489 2003 1.000 1.064 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.211 1.247 -- 2006 1.080 1.211 -- 2005 1.013 1.080 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.170 1.211 -- 2006 1.061 1.170 -- 2005 0.991 1.061 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.133 1.172 -- 2006 1.046 1.133 -- 2005 0.976 1.046 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.171 1.232 -- 2006 1.097 1.171 -- 2005 1.085 1.097 -- 2004 1.042 1.085 -- 2003 1.000 1.042 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.807 2.004 -- 2006 1.506 1.807 -- 2005 1.335 1.506 -- 2004 1.151 1.335 -- 2003 1.000 1.151 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.560 1.609 20,853 2006 1.419 1.560 22,321 2005 1.346 1.419 21,289 2004 1.129 1.346 16,529 2003 1.000 1.129 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.163 1.231 -- 2006 1.155 1.163 -- 2005 1.091 1.155 -- 2004 1.022 1.091 --
234 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.10% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.192 1.737 17,764 2006 1.640 2.192 15,929 2005 1.458 1.640 18,658 2004 1.100 1.458 15,165 2003 1.000 1.100 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.156 1.361 -- 2006 1.095 1.156 -- 2005 1.069 1.095 -- 2004 1.048 1.069 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.569 1.426 23,123 2006 1.403 1.569 21,938 2005 1.290 1.403 21,575 2004 1.099 1.290 17,202 2003 1.000 1.099 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.170 1.240 -- 2005 1.175 1.170 -- 2004 1.060 1.175 -- 2003 1.000 1.060 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.185 1.232 -- 2006 1.139 1.185 -- 2005 1.135 1.139 -- 2004 1.054 1.135 -- 2003 1.000 1.054 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.380 1.376 -- 2006 1.225 1.380 25,358 2005 1.195 1.225 24,237 2004 1.096 1.195 18,123 2003 1.000 1.096 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.15%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.401 1.491 -- 2006 1.350 1.401 22,662 2005 1.270 1.350 22,645 2004 1.220 1.270 17,165 2003 1.000 1.220 16,944
235 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.571 1.680 15,970 2006 1.446 1.571 16,578 2005 1.378 1.446 16,578 2004 1.239 1.378 16,578 2003 1.000 1.239 16,578 Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.527 1.454 37,592 2006 1.332 1.527 27,208 2005 1.316 1.332 48,012 2004 1.211 1.316 44,062 2003 1.000 1.211 16,965 FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.583 1.723 21,929 2006 1.488 1.583 15,802 2005 1.451 1.488 24,837 2004 1.330 1.451 25,125 2003 1.000 1.330 15,592 FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.982 2.239 35,197 2006 1.667 1.982 15,610 2005 1.546 1.667 23,966 2004 1.333 1.546 10,885 2003 1.000 1.333 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.587 1.523 15,697 LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.334 1.334 258 LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.691 1.614 286 Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.190 1.245 -- 2006 1.031 1.190 -- 2005 0.950 1.031 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.305 1.340 -- 2006 1.188 1.305 259 2005 1.179 1.188 239 2004 1.110 1.179 241 2003 1.000 1.110 --
236 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.550 1.601 -- 2006 1.430 1.550 4,115 2005 1.333 1.430 23,147 2004 1.252 1.333 26,008 2003 1.000 1.252 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.472 1.531 22,040 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.004 1.123 324 2006 1.000 1.004 325 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.011 1.040 36,705 2006 1.000 1.011 36,763 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.976 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.048 1.090 37,004 2006 1.000 1.048 42,326 Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.986 0.993 -- 2005 0.979 0.986 36,823 2004 0.990 0.979 30,323 2003 1.000 0.990 86,167 Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.315 1.372 -- 2005 1.282 1.315 218 2004 1.228 1.282 1,836 2003 1.000 1.228 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.828 1.987 -- 2005 1.638 1.828 21,225 2004 1.408 1.638 17,702 2003 1.000 1.408 14,907
237 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.006 1.039 -- 2006 0.996 1.006 12,830 2005 1.000 0.996 54,534 2004 0.992 1.000 39,336 2003 1.000 0.992 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.987 1.105 -- 2005 0.997 0.987 3,217 2004 0.992 0.997 3,220 Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.149 1.216 -- 2005 1.132 1.149 243 2004 1.106 1.132 2,028 2003 1.000 1.106 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.091 45,496 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.239 1.290 -- 2006 1.081 1.239 -- 2005 1.018 1.081 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.121 4.351 402 2006 2.353 3.121 403 2005 1.747 2.353 386 2004 1.504 1.747 1,007 2003 1.000 1.504 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.683 1.656 20,799 2006 1.408 1.683 -- 2005 1.363 1.408 29,178 2004 1.200 1.363 29,611 2003 1.000 1.200 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.237 1.355 -- 2006 1.060 1.237 -- 2005 1.000 1.060 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.560 1.972 -- 2005 1.478 1.560 -- 2004 1.278 1.478 -- 2003 1.000 1.278 --
238 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.548 1.588 12,974 2006 1.360 1.548 7,706 2005 1.311 1.360 7,706 2004 1.208 1.311 -- 2003 1.000 1.208 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.136 1.135 -- 2006 1.036 1.136 -- 2005 1.024 1.036 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.277 1.319 27,705 2006 1.205 1.277 4,589 2005 1.211 1.205 38,860 2004 1.148 1.211 39,838 2003 1.000 1.148 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.210 1.245 -- 2006 1.080 1.210 -- 2005 1.013 1.080 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.169 1.210 1,444,190 2006 1.060 1.169 1,265,725 2005 0.991 1.060 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.132 1.171 982,373 2006 1.045 1.132 614,252 2005 0.976 1.045 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.289 1.355 258 2006 1.208 1.289 259 2005 1.196 1.208 240 2004 1.149 1.196 241 2003 1.000 1.149 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.014 2.232 -- 2006 1.679 2.014 -- 2005 1.489 1.679 -- 2004 1.285 1.489 -- 2003 1.000 1.285 --
239 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.15% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.819 1.875 12,640 2006 1.655 1.819 3,609 2005 1.571 1.655 20,172 2004 1.318 1.571 22,267 2003 1.000 1.318 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.161 1.229 9,542 2006 1.154 1.161 3,020 2005 1.090 1.154 11,689 2004 1.022 1.090 12,267 Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.500 1.979 30,103 2006 1.871 2.500 27,178 2005 1.664 1.871 200 2004 1.256 1.664 1,506 2003 1.000 1.256 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.155 1.358 -- 2006 1.094 1.155 4,527 2005 1.069 1.094 4,531 2004 1.048 1.069 4,534 Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.924 1.747 181 2006 1.722 1.924 182 2005 1.583 1.722 -- 2004 1.349 1.583 1,337 2003 1.000 1.349 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.411 1.495 -- 2005 1.418 1.411 202 2004 1.280 1.418 203 2003 1.000 1.280 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.218 1.265 27,317 2006 1.171 1.218 199,245 2005 1.168 1.171 31,972 2004 1.085 1.168 23,552 2003 1.000 1.085 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.493 1.487 -- 2006 1.326 1.493 5,621 2005 1.294 1.326 5,586 2004 1.187 1.294 450 2003 1.000 1.187 --
240 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.20%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.163 1.238 -- 2006 1.121 1.163 -- 2005 1.056 1.121 -- 2004 1.000 1.056 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.215 1.299 -- 2006 1.119 1.215 -- 2005 1.066 1.119 -- 2004 1.000 1.066 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.244 1.184 -- 2006 1.086 1.244 -- 2005 1.073 1.086 -- 2004 1.000 1.073 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.184 1.288 -- 2006 1.113 1.184 -- 2005 1.086 1.113 -- 2004 1.000 1.086 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.482 1.673 -- 2006 1.247 1.482 -- 2005 1.157 1.247 -- 2004 1.000 1.157 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.253 1.202 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.192 1.191 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.291 1.232 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.189 1.243 -- 2006 1.031 1.189 -- 2005 0.949 1.031 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.166 1.197 -- 2006 1.062 1.166 -- 2005 1.054 1.062 -- 2004 1.000 1.054 --
241 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.224 1.265 -- 2006 1.130 1.224 -- 2005 1.054 1.130 -- 2004 1.000 1.054 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.222 1.270 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.004 1.122 -- 2006 1.000 1.004 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.027 1.055 9,205 2006 1.000 1.027 9,583 MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.975 2,268 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.047 1.089 -- 2006 1.000 1.047 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.001 1.008 -- 2005 0.995 1.001 -- 2004 1.000 0.995 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.075 1.121 -- 2005 1.048 1.075 -- 2004 1.000 1.048 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.306 1.418 -- 2005 1.170 1.306 -- 2004 1.000 1.170 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.038 1.072 -- 2006 1.029 1.038 -- 2005 1.033 1.029 -- 2004 1.000 1.033 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.983 1.099 -- 2005 0.993 0.983 -- 2004 0.989 0.993 --
242 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.042 1.102 -- 2005 1.027 1.042 -- 2004 1.000 1.027 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.238 1.289 -- 2006 1.080 1.238 -- 2005 1.018 1.080 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.314 3.224 -- 2006 1.745 2.314 -- 2005 1.296 1.745 -- 2004 1.000 1.296 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.389 1.366 -- 2006 1.162 1.389 -- 2005 1.126 1.162 -- 2004 1.000 1.126 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.236 1.354 -- 2006 1.060 1.236 -- 2005 1.000 1.060 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.243 1.570 -- 2005 1.178 1.243 -- 2004 1.000 1.178 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.287 1.320 -- 2006 1.131 1.287 -- 2005 1.091 1.131 -- 2004 1.000 1.091 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.135 1.133 104,787 2006 1.035 1.135 75,911 2005 1.024 1.035 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.144 1.181 -- 2006 1.080 1.144 -- 2005 1.086 1.080 -- 2004 1.000 1.086 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.208 1.243 -- 2006 1.079 1.208 -- 2005 1.013 1.079 --
243 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.168 1.208 1,902,733 2006 1.060 1.168 899,084 2005 0.991 1.060 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.131 1.169 822,036 2006 1.045 1.131 788,136 2005 0.976 1.045 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.165 1.224 -- 2006 1.093 1.165 -- 2005 1.082 1.093 -- 2004 1.000 1.082 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.583 1.753 -- 2006 1.320 1.583 -- 2005 1.171 1.320 -- 2004 1.000 1.171 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.324 1.364 -- 2006 1.205 1.324 -- 2005 1.145 1.205 -- 2004 1.000 1.145 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.140 1.206 -- 2006 1.134 1.140 -- 2005 1.071 1.134 -- 2004 1.000 1.071 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.964 1.554 -- 2006 1.471 1.964 -- 2005 1.309 1.471 -- 2004 1.000 1.309 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.092 1.284 -- 2006 1.035 1.092 -- 2005 1.011 1.035 -- 2004 0.992 1.011 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.402 1.273 -- 2006 1.255 1.402 -- 2005 1.155 1.255 -- 2004 1.000 1.155 --
244 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.20% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.103 1.168 -- 2005 1.109 1.103 -- 2004 1.000 1.109 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.145 1.189 65,255 2006 1.102 1.145 34,897 2005 1.099 1.102 -- 2004 1.000 1.099 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.253 1.247 -- 2006 1.113 1.253 -- 2005 1.087 1.113 -- 2004 1.000 1.087 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.25%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.162 1.236 -- 2006 1.120 1.162 5,461 2005 1.055 1.120 5,464 2004 1.000 1.055 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.213 1.296 4,738 2006 1.118 1.213 4,738 2005 1.066 1.118 4,738 2004 1.000 1.066 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.243 1.182 2,549 2006 1.085 1.243 2,549 2005 1.073 1.085 2,549 2004 1.000 1.073 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.182 1.286 2,669 2006 1.112 1.182 2,670 2005 1.086 1.112 2,671 2004 1.000 1.086 --
245 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.480 1.670 -- 2006 1.246 1.480 -- 2005 1.157 1.246 -- 2004 1.000 1.157 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.251 1.200 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.190 1.189 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.290 1.230 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.188 1.242 -- 2006 1.030 1.188 -- 2005 0.949 1.030 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.165 1.195 -- 2006 1.061 1.165 -- 2005 1.054 1.061 -- 2004 1.000 1.054 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.223 1.263 -- 2006 1.129 1.223 -- 2005 1.053 1.129 -- 2004 1.000 1.053 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.220 1.268 5,459 MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.003 1.121 5,710 2006 1.000 1.003 5,710 Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.026 1.053 -- 2006 1.000 1.026 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.975 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.047 1.088 6,140 2006 1.000 1.047 6,140
246 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.001 1.007 -- 2005 0.995 1.001 -- 2004 1.000 0.995 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.074 1.120 -- 2005 1.047 1.074 5,070 2004 1.000 1.047 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.305 1.417 -- 2005 1.170 1.305 4,317 2004 1.000 1.170 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.037 1.070 -- 2006 1.028 1.037 490 2005 1.033 1.028 493 2004 1.000 1.033 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.982 1.098 -- 2005 0.993 0.982 -- 2004 0.989 0.993 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.041 1.101 -- 2005 1.026 1.041 -- 2004 1.000 1.026 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 483 Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.237 1.287 59,654 2006 1.080 1.237 59,654 2005 1.018 1.080 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.311 3.218 -- 2006 1.744 2.311 -- 2005 1.296 1.744 -- 2004 1.000 1.296 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.387 1.363 56,075 2006 1.161 1.387 56,077 2005 1.126 1.161 2,732 2004 1.000 1.126 --
247 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.235 1.352 -- 2006 1.059 1.235 -- 2005 1.000 1.059 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.242 1.568 -- 2005 1.178 1.242 -- 2004 1.000 1.178 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.286 1.317 -- 2006 1.130 1.286 -- 2005 1.091 1.130 -- 2004 1.000 1.091 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.134 1.132 -- 2006 1.035 1.134 -- 2005 1.024 1.035 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.142 1.179 234 2006 1.079 1.142 235 2005 1.086 1.079 237 2004 1.000 1.086 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.207 1.242 -- 2006 1.079 1.207 -- 2005 1.012 1.079 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.167 1.206 58,873 2006 1.059 1.167 58,873 2005 0.991 1.059 285,700 Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.130 1.167 -- 2006 1.045 1.130 -- 2005 0.975 1.045 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.164 1.222 5,777 2006 1.092 1.164 5,781 2005 1.082 1.092 5,787 2004 1.000 1.082 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.581 1.750 61,647 2006 1.319 1.581 61,649 2005 1.171 1.319 4,599 2004 1.000 1.171 --
248 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.25% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.322 1.362 2,628 2006 1.204 1.322 2,630 2005 1.144 1.204 2,632 2004 1.000 1.144 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.138 1.203 -- 2006 1.133 1.138 -- 2005 1.071 1.133 -- 2004 1.000 1.071 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.962 1.552 17,492 2006 1.470 1.962 17,493 2005 1.309 1.470 2,038 2004 1.000 1.309 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.090 1.282 -- 2006 1.034 1.090 -- 2005 1.011 1.034 -- 2004 0.992 1.011 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.400 1.270 3,031 2006 1.254 1.400 3,035 2005 1.155 1.254 2,618 2004 1.000 1.155 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.102 1.167 -- 2005 1.109 1.102 473 2004 1.000 1.109 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.144 1.187 4,712 2006 1.101 1.144 4,712 2005 1.099 1.101 4,712 2004 1.000 1.099 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.251 1.245 -- 2006 1.112 1.251 -- 2005 1.087 1.112 -- 2004 1.000 1.087 --
249 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.30%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 0.991 1.054 -- 2006 1.000 0.991 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.041 1.112 -- 2006 1.000 1.041 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.113 1.058 -- 2006 1.000 1.113 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 0.999 1.086 -- 2006 1.000 0.999 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.140 1.286 -- 2006 1.000 1.140 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.053 1.010 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.096 1.095 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.151 1.098 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.108 1.158 -- 2006 1.000 1.108 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.073 1.101 -- 2006 1.000 1.073 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.030 1.063 -- 2006 1.000 1.030 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.040 1.081 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.003 1.120 -- 2006 1.000 1.003 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.023 1.050 -- 2006 1.000 1.023 --
250 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.975 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.047 1.087 -- 2006 1.000 1.047 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.000 1.005 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.000 1.006 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.000 1.035 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.010 1.042 -- 2006 1.000 1.010 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 1.000 1.090 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.000 1.035 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.106 1.150 -- 2006 1.000 1.106 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 1.187 1.652 -- 2006 1.000 1.187 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.156 1.136 -- 2006 1.000 1.156 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.112 1.217 -- 2006 1.000 1.112 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.000 1.196 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.105 1.132 -- 2006 1.000 1.105 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.079 1.077 -- 2006 1.000 1.079 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.049 1.083 -- 2006 1.000 1.049 --
251 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.30% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.076 1.106 -- 2006 1.000 1.076 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.066 1.101 195,879 2006 1.000 1.066 184,213 Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.054 1.089 -- 2006 1.000 1.054 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.059 1.112 -- 2006 1.000 1.059 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.128 1.248 -- 2006 1.000 1.128 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.070 1.101 -- 2006 1.000 1.070 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 0.988 1.043 -- 2006 1.000 0.988 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.252 0.989 -- 2006 1.000 1.252 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.009 1.185 -- 2006 1.000 1.009 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.041 0.944 -- 2006 1.000 1.041 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.000 0.988 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.034 1.072 -- 2006 1.000 1.034 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.086 1.080 -- 2006 1.000 1.086 --
252 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.35%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.391 1.479 -- 2006 1.342 1.391 -- 2005 1.266 1.342 -- 2004 1.219 1.266 -- 2003 1.000 1.219 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.560 1.665 -- 2006 1.439 1.560 -- 2005 1.373 1.439 -- 2004 1.238 1.373 -- 2003 1.000 1.238 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.516 1.440 -- 2006 1.325 1.516 -- 2005 1.311 1.325 -- 2004 1.209 1.311 -- 2003 1.000 1.209 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.571 1.707 -- 2006 1.480 1.571 -- 2005 1.446 1.480 -- 2004 1.328 1.446 -- 2003 1.000 1.328 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.967 2.218 -- 2006 1.658 1.967 -- 2005 1.541 1.658 -- 2004 1.331 1.541 -- 2003 1.000 1.331 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.574 1.508 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.324 1.322 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.678 1.599 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.185 1.239 -- 2006 1.030 1.185 -- 2005 0.949 1.030 --
253 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.296 1.329 -- 2006 1.182 1.296 -- 2005 1.175 1.182 -- 2004 1.109 1.175 -- 2003 1.000 1.109 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.539 1.588 -- 2006 1.423 1.539 -- 2005 1.328 1.423 -- 2004 1.250 1.328 -- 2003 1.000 1.250 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.460 1.517 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.003 1.119 -- 2006 1.000 1.003 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.004 1.030 -- 2006 1.000 1.004 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.974 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.046 1.087 -- 2006 1.000 1.046 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.981 0.987 -- 2005 0.976 0.981 -- 2004 0.989 0.976 -- 2003 1.000 0.989 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.308 1.364 -- 2005 1.277 1.308 -- 2004 1.227 1.277 -- 2003 1.000 1.227 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.819 1.975 -- 2005 1.632 1.819 -- 2004 1.406 1.632 -- 2003 1.000 1.406 --
254 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 0.998 1.029 -- 2006 0.991 0.998 -- 2005 0.997 0.991 -- 2004 0.990 0.997 -- 2003 1.000 0.990 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.984 1.099 -- 2005 0.995 0.984 -- 2004 0.992 0.995 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.143 1.207 -- 2005 1.128 1.143 -- 2004 1.104 1.128 -- 2003 1.000 1.104 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.235 1.283 -- 2006 1.079 1.235 -- 2005 1.018 1.079 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 3.098 4.310 -- 2006 2.340 3.098 -- 2005 1.741 2.340 -- 2004 1.502 1.741 -- 2003 1.000 1.502 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.670 1.640 -- 2006 1.400 1.670 -- 2005 1.358 1.400 -- 2004 1.199 1.358 -- 2003 1.000 1.199 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.233 1.348 -- 2006 1.058 1.233 -- 2005 1.000 1.058 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.552 1.957 -- 2005 1.473 1.552 -- 2004 1.276 1.473 -- 2003 1.000 1.276 --
255 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.537 1.573 -- 2006 1.352 1.537 -- 2005 1.307 1.352 -- 2004 1.206 1.307 -- 2003 1.000 1.206 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.132 1.129 -- 2006 1.034 1.132 -- 2005 1.024 1.034 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.267 1.307 -- 2006 1.199 1.267 -- 2005 1.207 1.199 -- 2004 1.146 1.207 -- 2003 1.000 1.146 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.205 1.238 -- 2006 1.078 1.205 -- 2005 1.012 1.078 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.165 1.203 108,550 2006 1.058 1.165 56,075 2005 0.991 1.058 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.128 1.164 219,988 2006 1.044 1.128 219,621 2005 0.975 1.044 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.280 1.343 -- 2006 1.202 1.280 -- 2005 1.192 1.202 -- 2004 1.148 1.192 -- 2003 1.000 1.148 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 2.000 2.212 -- 2006 1.670 2.000 -- 2005 1.484 1.670 -- 2004 1.283 1.484 -- 2003 1.000 1.283 --
256 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.35% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.806 1.858 -- 2006 1.647 1.806 -- 2005 1.566 1.647 -- 2004 1.317 1.566 -- 2003 1.000 1.317 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.155 1.220 -- 2006 1.150 1.155 -- 2005 1.088 1.150 -- 2004 1.021 1.088 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 2.481 1.961 -- 2006 1.861 2.481 -- 2005 1.659 1.861 -- 2004 1.254 1.659 -- 2003 1.000 1.254 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.148 1.348 -- 2006 1.090 1.148 -- 2005 1.067 1.090 -- 2004 1.047 1.067 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.910 1.731 -- 2006 1.713 1.910 -- 2005 1.578 1.713 -- 2004 1.348 1.578 -- 2003 1.000 1.348 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.404 1.486 -- 2005 1.414 1.404 -- 2004 1.278 1.414 -- 2003 1.000 1.278 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.209 1.253 -- 2006 1.165 1.209 -- 2005 1.164 1.165 -- 2004 1.084 1.164 -- 2003 1.000 1.084 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.482 1.474 -- 2006 1.319 1.482 -- 2005 1.290 1.319 -- 2004 1.185 1.290 -- 2003 1.000 1.185 --
257 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.40%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 0.990 1.052 -- 2006 1.000 0.990 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.040 1.110 -- 2006 1.000 1.040 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.112 1.056 -- 2006 1.000 1.112 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 0.998 1.084 -- 2006 1.000 0.998 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.139 1.283 -- 2006 1.000 1.139 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.052 1.008 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.095 1.093 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.150 1.096 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.107 1.157 -- 2006 1.000 1.107 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.072 1.100 -- 2006 1.000 1.072 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.029 1.062 -- 2006 1.000 1.029 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.039 1.079 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.002 1.118 -- 2006 1.000 1.002 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.022 1.048 -- 2006 1.000 1.022 --
258 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.40% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.974 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.046 1.086 -- 2006 1.000 1.046 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.000 1.005 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.000 1.006 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.000 1.035 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.009 1.040 -- 2006 1.000 1.009 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 1.000 1.089 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.000 1.035 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.105 1.147 -- 2006 1.000 1.105 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 1.186 1.649 -- 2006 1.000 1.186 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.155 1.134 -- 2006 1.000 1.155 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.111 1.214 -- 2006 1.000 1.111 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.000 1.195 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.104 1.130 -- 2006 1.000 1.104 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.078 1.075 -- 2006 1.000 1.078 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.048 1.080 -- 2006 1.000 1.048 --
259 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.40% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.075 1.103 -- 2006 1.000 1.075 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.065 1.099 15,439 2006 1.000 1.065 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.054 1.087 261,026 2006 1.000 1.054 37,731 Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.059 1.110 -- 2006 1.000 1.059 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.127 1.245 -- 2006 1.000 1.127 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.069 1.099 -- 2006 1.000 1.069 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 0.987 1.041 -- 2006 1.000 0.987 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.250 0.988 -- 2006 1.000 1.250 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.008 1.183 -- 2006 1.000 1.008 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.040 0.942 -- 2006 1.000 1.040 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.000 0.987 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.033 1.070 -- 2006 1.000 1.033 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.085 1.078 -- 2006 1.000 1.085 --
260 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.45%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 1.156 1.229 -- 2006 1.117 1.156 -- 2005 1.054 1.117 -- 2004 1.000 1.054 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.207 1.287 -- 2006 1.115 1.207 -- 2005 1.065 1.115 -- 2004 1.000 1.065 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.237 1.174 -- 2006 1.082 1.237 -- 2005 1.072 1.082 -- 2004 1.000 1.072 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 1.176 1.277 -- 2006 1.109 1.176 -- 2005 1.084 1.109 -- 2004 1.000 1.084 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.472 1.658 -- 2006 1.242 1.472 -- 2005 1.155 1.242 -- 2004 1.000 1.155 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.244 1.191 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.183 1.181 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.282 1.221 -- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.183 1.237 -- 2006 1.029 1.183 -- 2005 0.949 1.029 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.159 1.189 -- 2006 1.058 1.159 -- 2005 1.053 1.058 -- 2004 1.000 1.053 --
261 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.217 1.255 -- 2006 1.126 1.217 -- 2005 1.052 1.126 -- 2004 1.000 1.052 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.213 1.259 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.002 1.117 -- 2006 1.000 1.002 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.020 1.046 -- 2006 1.000 1.020 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.974 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.046 1.085 -- 2006 1.000 1.046 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 0.998 1.004 -- 2005 0.994 0.998 -- 2004 1.000 0.994 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.071 1.116 -- 2005 1.046 1.071 -- 2004 1.000 1.046 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.300 1.412 -- 2005 1.168 1.300 -- 2004 1.000 1.168 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.032 1.063 -- 2006 1.025 1.032 -- 2005 1.032 1.025 -- 2004 1.000 1.032 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 0.979 1.092 -- 2005 0.992 0.979 -- 2004 0.989 0.992 --
262 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.038 1.095 -- 2005 1.025 1.038 -- 2004 1.000 1.025 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.233 1.280 -- 2006 1.078 1.233 -- 2005 1.017 1.078 -- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 2.299 3.195 -- 2006 1.738 2.299 -- 2005 1.295 1.738 -- 2004 1.000 1.295 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.380 1.354 -- 2006 1.158 1.380 -- 2005 1.124 1.158 -- 2004 1.000 1.124 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.231 1.345 -- 2006 1.058 1.231 -- 2005 1.000 1.058 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.238 1.560 -- 2005 1.177 1.238 -- 2004 1.000 1.177 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.279 1.308 -- 2006 1.127 1.279 -- 2005 1.090 1.127 -- 2004 1.000 1.090 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.130 1.126 -- 2006 1.033 1.130 -- 2005 1.023 1.033 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.137 1.171 -- 2006 1.076 1.137 -- 2005 1.084 1.076 -- 2004 1.000 1.084 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.203 1.235 -- 2006 1.077 1.203 -- 2005 1.012 1.077 --
263 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.163 1.200 -- 2006 1.058 1.163 -- 2005 0.991 1.058 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.126 1.161 -- 2006 1.043 1.126 -- 2005 0.975 1.043 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.158 1.214 -- 2006 1.088 1.158 -- 2005 1.081 1.088 -- 2004 1.000 1.081 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.573 1.738 -- 2006 1.315 1.573 -- 2005 1.170 1.315 -- 2004 1.000 1.170 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.315 1.352 -- 2006 1.201 1.315 -- 2005 1.143 1.201 -- 2004 1.000 1.143 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 1.133 1.195 -- 2006 1.129 1.133 -- 2005 1.070 1.129 -- 2004 1.000 1.070 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.952 1.541 -- 2006 1.465 1.952 -- 2005 1.307 1.465 -- 2004 1.000 1.307 -- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.085 1.273 -- 2006 1.031 1.085 -- 2005 1.010 1.031 -- 2004 0.992 1.010 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.393 1.261 -- 2006 1.250 1.393 -- 2005 1.153 1.250 -- 2004 1.000 1.153 --
264 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.45% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.098 1.162 -- 2005 1.107 1.098 -- 2004 1.000 1.107 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.138 1.179 -- 2006 1.098 1.138 -- 2005 1.098 1.098 -- 2004 1.000 1.098 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.245 1.237 -- 2006 1.109 1.245 -- 2005 1.086 1.109 -- 2004 1.000 1.086 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.50%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 0.989 1.051 -- 2006 1.000 0.989 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.039 1.108 -- 2006 1.000 1.039 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.111 1.054 -- 2006 1.000 1.111 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 0.997 1.082 -- 2006 1.000 0.997 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.138 1.281 -- 2006 1.000 1.138 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.051 1.006 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.093 1.091 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.149 1.093 --
265 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.106 1.155 -- 2006 1.000 1.106 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.071 1.098 -- 2006 1.000 1.071 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.028 1.060 -- 2006 1.000 1.028 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.038 1.077 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.002 1.117 -- 2006 1.000 1.002 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.021 1.046 -- 2006 1.000 1.021 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.973 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.045 1.084 -- 2006 1.000 1.045 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.000 1.005 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.000 1.006 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.000 1.034 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.008 1.038 -- 2006 1.000 1.008 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 1.000 1.088 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.000 1.034 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.104 1.145 -- 2006 1.000 1.104 --
266 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 1.185 1.646 -- 2006 1.000 1.185 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.154 1.132 -- 2006 1.000 1.154 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.110 1.212 -- 2006 1.000 1.110 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.000 1.194 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.103 1.128 -- 2006 1.000 1.103 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.077 1.073 -- 2006 1.000 1.077 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.047 1.078 -- 2006 1.000 1.047 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.074 1.101 -- 2006 1.000 1.074 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.064 1.097 -- 2006 1.000 1.064 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.053 1.085 -- 2006 1.000 1.053 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.058 1.108 -- 2006 1.000 1.058 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.126 1.243 -- 2006 1.000 1.126 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.068 1.097 -- 2006 1.000 1.068 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 0.986 1.039 -- 2006 1.000 0.986 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.249 0.986 -- 2006 1.000 1.249 --
267 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.50% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.007 1.181 -- 2006 1.000 1.007 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.039 0.940 -- 2006 1.000 1.039 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.000 0.987 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.032 1.068 -- 2006 1.000 1.032 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.084 1.077 -- 2006 1.000 1.084 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.55%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 0.988 1.050 -- 2006 1.000 0.988 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.039 1.107 -- 2006 1.000 1.039 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.110 1.053 -- 2006 1.000 1.110 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 0.997 1.081 -- 2006 1.000 0.997 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.137 1.280 -- 2006 1.000 1.137 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.050 1.005 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.093 1.090 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.148 1.092 --
268 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.105 1.155 -- 2006 1.000 1.105 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.071 1.098 -- 2006 1.000 1.071 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.027 1.060 -- 2006 1.000 1.027 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.037 1.076 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.001 1.116 -- 2006 1.000 1.001 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.021 1.045 -- 2006 1.000 1.021 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.973 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.045 1.083 -- 2006 1.000 1.045 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.000 1.004 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.000 1.006 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.000 1.034 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.008 1.037 -- 2006 1.000 1.008 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 1.000 1.087 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.000 1.033 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.103 1.144 -- 2006 1.000 1.103 --
269 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 1.184 1.644 -- 2006 1.000 1.184 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.154 1.131 -- 2006 1.000 1.154 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.110 1.211 -- 2006 1.000 1.110 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.000 1.193 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.103 1.126 -- 2006 1.000 1.103 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.077 1.072 -- 2006 1.000 1.077 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.047 1.077 -- 2006 1.000 1.047 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.073 1.100 -- 2006 1.000 1.073 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.063 1.096 -- 2006 1.000 1.063 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.052 1.084 -- 2006 1.000 1.052 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.057 1.107 -- 2006 1.000 1.057 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.125 1.242 -- 2006 1.000 1.125 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.067 1.096 -- 2006 1.000 1.067 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 0.985 1.038 -- 2006 1.000 0.985 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.249 0.985 -- 2006 1.000 1.249 --
270 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.55% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.007 1.180 -- 2006 1.000 1.007 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.038 0.939 -- 2006 1.000 1.038 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.000 0.987 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.031 1.067 -- 2006 1.000 1.031 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.084 1.076 -- 2006 1.000 1.084 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.60%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 0.988 1.050 -- 2006 1.000 0.988 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.038 1.106 -- 2006 1.000 1.038 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.110 1.052 -- 2006 1.000 1.110 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 0.996 1.080 -- 2006 1.000 0.996 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.137 1.278 -- 2006 1.000 1.137 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.049 1.004 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.092 1.089 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.147 1.091 --
271 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.60% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.105 1.154 -- 2006 1.000 1.105 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.070 1.097 -- 2006 1.000 1.070 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.027 1.059 -- 2006 1.000 1.027 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.036 1.075 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.001 1.115 -- 2006 1.000 1.001 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.020 1.044 -- 2006 1.000 1.020 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.973 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.045 1.082 -- 2006 1.000 1.045 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.000 1.004 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.000 1.005 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.000 1.034 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.008 1.037 -- 2006 1.000 1.008 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 1.000 1.087 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.000 1.033 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.000 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.103 1.143 -- 2006 1.000 1.103 --
272 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.60% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 1.183 1.642 -- 2006 1.000 1.183 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.153 1.130 -- 2006 1.000 1.153 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.109 1.210 -- 2006 1.000 1.109 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.000 1.193 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.102 1.125 -- 2006 1.000 1.102 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.076 1.071 -- 2006 1.000 1.076 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.046 1.076 -- 2006 1.000 1.046 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.073 1.099 -- 2006 1.000 1.073 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.063 1.095 78,133 2006 1.000 1.063 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.052 1.083 -- 2006 1.000 1.052 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.057 1.106 -- 2006 1.000 1.057 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.125 1.241 -- 2006 1.000 1.125 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.067 1.095 -- 2006 1.000 1.067 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 0.985 1.037 -- 2006 1.000 0.985 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.248 0.984 -- 2006 1.000 1.248 --
273 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.60% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.006 1.179 -- 2006 1.000 1.006 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.038 0.938 -- 2006 1.000 1.038 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.000 0.987 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.031 1.066 -- 2006 1.000 1.031 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.083 1.075 -- 2006 1.000 1.083 --
PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.75%
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Capital Appreciation Subaccount (Series II) (9/03)......................................... 2007 0.987 1.048 -- 2006 1.000 0.987 -- AIM V.I. Mid Cap Core Equity Subaccount (Series II) (12/03)............................................ 2007 1.037 1.102 -- 2006 1.000 1.037 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Franklin Rising Dividends Securities Subaccount (Class 2) (6/03)........................ 2007 1.108 1.049 -- 2006 1.000 1.108 -- FTVIPT Franklin Small-Mid Cap Growth Securities Subaccount (Class 2) (11/03)....................... 2007 0.995 1.077 -- 2006 1.000 0.995 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (9/03)................................... 2007 1.135 1.275 -- 2006 1.000 1.135 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class II) (4/07)............................................. 2007 1.047 1.001 -- LMPVET Capital and Income Subaccount (Class II) (4/07)............................................. 2007 1.090 1.085 -- LMPVET Fundamental Value Subaccount (Class I) (4/07)............................................. 2007 1.145 1.088 --
274 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class II) (4/05)........ 2007 1.103 1.152 -- 2006 1.000 1.103 -- LMPVPI Total Return Subaccount (Class II) (6/03)... 2007 1.069 1.095 -- 2006 1.000 1.069 -- Legg Mason Partners Variable Portfolios II LMPVPII Aggressive Growth Subaccount (Class II) (9/03)............................................. 2007 1.025 1.057 -- 2006 1.000 1.025 -- Met Investors Series Trust MIST Met/AIM Capital Appreciation Subaccount (Class E) (4/07) *........................................ 2007 1.035 1.072 -- MIST Oppenheimer Capital Appreciation Subaccount (Class B) (1/70)................................... 2007 1.000 1.112 -- 2006 1.000 1.000 -- Metropolitan Series Fund, Inc. MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.019 1.041 -- 2006 1.000 1.019 -- MSF MFS(R) Total Return Subaccount (Class B) (4/07)............................................. 2007 0.996 0.972 -- MSF Oppenheimer Global Equity Subaccount (Class B) (1/70)............................................. 2007 1.044 1.079 -- 2006 1.000 1.044 -- Money Market Portfolio Money Market Subaccount (8/03)..................... 2006 1.000 1.004 -- Oppenheimer Variable Account Funds Oppenheimer Capital Appreciation Subaccount/VA (Service Shares) (6/03)............................ 2006 1.000 1.005 -- Oppenheimer Global Securities Subaccount/VA (Service Shares) (11/03)........................... 2006 1.000 1.034 -- Pioneer Variable Contracts Trust Pioneer America Income VCT Subaccount (Class II) (12/03)............................................ 2007 1.006 1.034 -- 2006 1.000 1.006 -- Pioneer AmPac Growth VCT Subaccount (Class II) (7/04)............................................. 2006 1.000 1.085 -- Pioneer Balanced VCT Subaccount (Class II) (11/03)............................................ 2006 1.000 1.031 -- Pioneer Bond VCT Subaccount (Class II) (4/07)...... 2007 1.060 1.090 -- Pioneer Cullen Value VCT Subaccount (Class II) (7/05)............................................. 2007 1.101 1.140 -- 2006 1.000 1.101 --
275 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Emerging Markets VCT Subaccount (Class II) (11/03)............................................ 2007 1.182 1.638 -- 2006 1.000 1.182 -- Pioneer Equity Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.152 1.126 -- 2006 1.000 1.152 -- Pioneer Equity Opportunity VCT Subaccount (Class II) (1/70)......................................... 2007 1.108 1.207 -- 2006 1.000 1.108 -- Pioneer Europe VCT Subaccount (Class II) (9/03).... 2006 1.000 1.191 -- Pioneer Fund VCT Subaccount (Class II) (9/03)...... 2007 1.101 1.122 -- 2006 1.000 1.101 -- Pioneer Global High Yield VCT Subaccount (Class II) (7/05)............................................. 2007 1.075 1.068 -- 2006 1.000 1.075 -- Pioneer High Yield VCT Subaccount (Class II) (9/03)............................................. 2007 1.045 1.073 -- 2006 1.000 1.045 -- Pioneer Ibbotson Aggressive Allocation VCT Subaccount (Class II) (7/05)....................... 2007 1.071 1.096 -- 2006 1.000 1.071 -- Pioneer Ibbotson Growth Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.061 1.092 -- 2006 1.000 1.061 -- Pioneer Ibbotson Moderate Allocation VCT Subaccount (Class II) (4/05).................................. 2007 1.050 1.080 -- 2006 1.000 1.050 -- Pioneer Independence VCT Subaccount (Class II) (11/03)............................................ 2007 1.055 1.103 -- 2006 1.000 1.055 -- Pioneer International Value VCT Subaccount (Class II) (1/04)......................................... 2007 1.123 1.237 -- 2006 1.000 1.123 -- Pioneer Mid Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.065 1.091 -- 2006 1.000 1.065 -- Pioneer Oak Ridge Large Cap Growth VCT Subaccount (Class II) (5/04).................................. 2007 0.984 1.034 -- 2006 1.000 0.984 -- Pioneer Real Estate Shares VCT Subaccount (Class II) (9/03)......................................... 2007 1.246 0.981 -- 2006 1.000 1.246 --
276 PIONEER ANNUISTAR VALUE -- SEPARATE ACCOUNT CHARGES 2.75% (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Pioneer Small and Mid Cap Growth VCT Subaccount (Class II) (7/04).................................. 2007 1.005 1.176 -- 2006 1.000 1.005 -- Pioneer Small Cap Value VCT Subaccount (Class II) (9/03)............................................. 2007 1.036 0.936 -- 2006 1.000 1.036 -- Pioneer Small Company VCT Subaccount (Class II) (6/03)............................................. 2006 1.000 0.986 -- Pioneer Strategic Income VCT Subaccount (Class II) (9/03)............................................. 2007 1.029 1.063 -- 2006 1.000 1.029 -- Pioneer Value VCT Subaccount (Class II) (12/03).... 2007 1.082 1.072 -- 2006 1.000 1.082 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix C for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 05/01/2006, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Money Market Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Capital Appreciation Fund/VA was replaced by Met Investors Series Trust- Oppenheimer Capital Appreciation Portfolio and is no longer available as a funding option. Effective on or about 05/01/2006, Oppenheimer Variable Account Funds-Oppenheimer Global Securities Fund/VA was replaced by Metropolitan Series Fund, Inc.- Oppenheimer Global Equity Portfolio and is no longer available as a funding option. Effective on or about 05/24/2006, Pioneer Variable Contracts Trust-Pioneer Small Company VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer AmPac Growth VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Oak Ridge Large Cap Growth VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Balanced VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Ibbotson Moderate Allocation VCT Portfolio and is no longer available as a funding option. Effective on or about 12/18/2006, Pioneer Variable Contracts Trust-Pioneer Europe VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer International Value VCT Portfolio and is no longer available as a funding option. 277 Effective on or about 04/30/2007, AIM Variable Insurance Funds-AIM V.I. Capital Appreciation Fund was replaced by Met Investors Series Trust-Met/AIM Capital Appreciation Portfolio Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Total Return Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Capital and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios II, Inc.-Legg Mason Partners Variable Aggressive Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer Value VCT Portfolio merged into Pioneer Variable Contracts Trust-Pioneer Fund VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer America Income VCT Portfolio merged into Pioneer Variable Contracts Trust- Pioneer Bond VCT Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust-Pioneer Equity Opportunity VCT Portfolio liquidated its assets and is no longer available as a funding option. Effective on or about 11/12/2007, Pioneer Variable Contracts Trust -- Pioneer Small and Mid Cap Growth VCT Portfolio liquidated its assets and is no longer available as a funding option. 278 [FINANCIAL STATEMENTS FOR THE DEPOSITOR AND REGISTRANT TO BE ADDED BY AMENDMENT.] PIONEER ANNUISTAR ANNUITY PORTFOLIO ARCHITECT II PIONEER ANNUISTAR VALUE STATEMENT OF ADDITIONAL INFORMATION METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES ISSUED BY METLIFE INSURANCE COMPANY OF CONNECTICUT ONE CITYPLACE HARTFORD, CONNECTICUT 06103-3415 MIC-Book-72-73-87 October 13, 2008 PART C OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS (a) The financial statements of the Registrant and the report of Independent Registered Public Accounting Firm thereto are contained in the Registrant's Annual Report and are included in the Statement of Additional Information. The financial statements of the Registrant include: (to be filed by amendment) (1) Statement of Assets and Liabilities as of December 31, 2007 (2) Statement of Operations for the year ended December 31, 2007 (3) Statement of Changes in Net Assets for the years ended December 31, 2007 and 2006 (4) Notes to Financial Statements The consolidated financial statements and schedules of MetLife Insurance Company of Connecticut and subsidiaries and the report of Independent Registered Public Accounting Firm, are contained in the Statement of Additional Information. The consolidated financial statements of MetLife Insurance Company of Connecticut and subsidiaries include: (to be filed by amendment) (1) Consolidated Balance Sheets as of December 31, 2007 and 2006 (2) Consolidated Statements of Income for the years ended December 31, 2007, 2006 and 2005 (3) Consolidated Statements of Stockholder's Equity for the years ended December 31, 2007, 2006 and 2005 (4) Consolidated Statements of Cash Flows for the year ended December 31, 2007, 2006 and 2005 (5) Notes to Consolidated Financial Statements (6) Financial Statement Schedules (b) EXHIBITS
EXHIBIT NUMBER DESCRIPTION - ------- ----------- 1(a). Resolution of The Travelers Insurance Company Board of Directors authorizing the establishment of the Registrant. (Incorporated herein by reference to Exhibit 1 to the Travelers Fund ABD for Variable Annuities' Registration Statement on Form N-4 EL, File Nos. 033-65343/811-07465, filed December 22, 1995.) 1(b). Resolution of The MetLife Insurance Company of Connecticut Board of Directors, dated March 24, 2008 authorizing the combining of MetLife of CT Separate Account Thirteen for Variable Annuities into MetLife of CT Separate Account Eleven for Variable Annuities. To be filed by amendment. 2. Not Applicable. 3(a). Distribution and Principal Underwriting Agreement among the Registrant, MetLife Insurance Company of Connecticut and MetLife Investors Distribution Company. To be filed by amendment. 3(b). Agreement and Plan of Merger (10-26-06) (MLIDLLC into MLIDC). (Incorporated herein by reference to Exhibit 3(c) to Post-Effective Amendment No. 16 to MetLife of CT Fund ABD for Variable Annuities' Registration Statement on Form N-4, File Nos. 033-65343/811-07465, filed April 4, 2007.) 3(c). Master Retail Sales Agreement (MLIDC). (Incorporated herein by reference to Exhibit 3(d) to Post-Effective Amendment No. 16 to MetLife of CT Fund ABD for Variable Annuities' Registration Statement on Form N-4, File Nos. 033-65343/811-07465, filed April 4, 2007.) 3(d). Services Agreement between MetLife Investors Distribution Company and MetLife Insurance Company of Connecticut and Amendment No. 1 to Services Agreement. (Incorporated herein by reference to Exhibit 3(e) to Post-Effective Amendment No. 15 to MetLife of CT Fund BD for Variable Annuities' Registration Statement on Form N-4, File Nos. 033-73466/811-08242, filed April 7, 2008.) 4(a). Form of Variable Annuity Contract. (Incorporated herein by reference to Exhibit 4 to Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4, File No. 333-101777, filed April 17, 2003.) 4(b). Form of Guaranteed Minimum Withdrawal Rider. (Incorporated herein by reference to Exhibit 4 to Post-Effective Amendment No. 4 to the Registration Statement on Form N-4, file No. 333-101778, filed November 19, 2004.)
EXHIBIT NUMBER DESCRIPTION - ------- ----------- 4(c). Form of Guaranteed Minimum Withdrawal Rider for Life. (Incorporated herein by reference to Exhibit 4(n) to Post-Effective Amendment No. 7 to the Registration Statement on Form N-4, File No. 333-65926, filed December 20, 2005.) 4(d). Company Name Change Endorsement, The Travelers Insurance Company, effective May 1, 2006. (Incorporated herein by reference to Exhibit 4(c) to Post-Effective Amendment No. 14 to The Travelers Fund ABD for Variable Annuities' Registration Statement on Form N-4, File No. 033- 65343, filed April 6, 2006.) 4(e). Roth 401 Endorsement. (Incorporated herein by reference to Exhibit 4(d) to Post-Effective Amendment No. 14 to The Travelers Fund ABD for Variable Annuities' Registration Statement on Form N-4, File No. 033- 65343, filed April 6, 2006.) 4(f). Roth 403(b) Endorsement. (Incorporated herein by reference to Exhibit 4(e) to Post-Effective Amendment No. 14 to The Travelers Fund ABD for Variable Annuities' Registration Statement on Form N-4, File No. 033-65343, filed April 6, 2006. 5(a). Form of Application. (Incorporated herein by reference to Exhibit 5 to Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4, File No. 333-101777, filed April 17, 2003.) 5(b). Form of Variable Annuity Application. (Incorporated herein by reference to Exhibit 5 to Post-Effective Amendment No. 14 to The Travelers Fund ABD for Variable Annuities' Registration Statement on Form N-4, File No. 033-65343, filed April 6, 2006.) 6(a). Charter of The Travelers Insurance Company, as amended on October 19, 1994. (Incorporated herein by reference to Exhibit 6(a) to the Registration Statement on Form N-4, File No. 333-40193, filed November 13, 1998.) 6(b). By-Laws of The Travelers Insurance Company, as amended on October 20, 1994. (Incorporated herein by reference to Exhibit 3(a)(ii) to Registration Statement on Form S-2, File No. 33-58677, filed via EDGAR on April 18, 1995.) 6(c). Certificate of Amendment of the Charter as Amended and Restated of The Travelers Insurance Company effective May 1, 2006. (Incorporated herein by reference to Exhibit 6(c) to Post-Effective Amendment No. 14 to The Travelers Fund ABD for Variable Annuities' Registration Statement on Form N-4, File Nos. 033-65343/811-07465, filed April 6, 2006.) 6(d). Certificate of Correction, dated April 4, 2007, to the Certificate of Amendment to the Charter of MetLife Insurance Company of Connecticut, dated February 10, 2006. (Incorporated herein by reference to Exhibit 6(d) to Post-Effective Amendment No. 11 to MetLife of CT Separate Account Nine for Variable Annuities' Registration Statement on Form N-4, File Nos. 333-65926/811-09411, filed on October 31, 2007.) 7. Form of Reinsurance Contract. (Incorporated herein by reference to Exhibit 7 to Post-Effective Amendment No. 2 to the Registration Statement on Form N-4, File No. 333-65942, filed April 15, 2003.) 8(a). Form of Participation Agreement. (Incorporated herein by reference to Exhibit 8 to Post-Effective Amendment No. 8 to the Registration Statement on Form N-4, File No. 333-101778, filed April 21, 2005). 8(b). Participation Agreement Among Metropolitan Series Fund, Inc., MetLife Advisers, LLC, Metropolitan Life Insurance Company, The Travelers Insurance Company and The Travelers Life and Annuity Company effective November 1, 2005. (Incorporated herein by reference to Exhibit 8(b) to Post-Effective Amendment No. 14 to The Travelers Fund ABD for Variable Annuities' Registration Statement on Form N-4, File No. 033-65343, filed April 6, 2006.) 8(c). Participation Agreement Among Met Investors Series Trust, Met Investors Advisory, LLC, MetLife Investors Distribution Company, The Travelers Insurance Company and The Travelers Life and Annuity Company effective November 1, 2005. (Incorporated herein by reference to Exhibit 8(c) to Post-Effective Amendment No. 14 to The Travelers Fund ABD for Variable Annuities Registration Statement on Form N-4, File No. 033-65343 filed April 6, 2006.) 9. Opinion of Counsel as to the legality of securities being registered. To be filed by amendment. 10. Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm. To be filed by amendment. 11. Not Applicable. 12. Not Applicable. 13. Powers of Attorney authorizing Michele H. Abate, John E. Connolly, Jr., James L. Lipscomb, Gina C. Sandonato, Myra L. Saul, Paul G. Cellupica and Marie C. Swift to act as signatory for Michael K. Farrell, William J. Mullaney, Lisa M. Weber, Stanley J. Talbi, and Joseph J. Prochaska, Jr. Filed herewith.
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR Principal Business Address: MetLife Insurance Company of Connecticut One Cityplace Hartford, CT 06103-3415
NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH INSURANCE COMPANY - -------------------------- --------------------------------------------------------------------- Michael K. Farrell Director and President 10 Park Avenue Morristown, NJ 07962 William J. Mullaney Director 1 Metlife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Lisa M. Weber Director 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Steven A. Kandarian Executive Vice President and Chief Investment Officer 10 Park Avenue Morristown, NJ 07962 James L. Lipscomb Executive Vice President and General Counsel 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Joseph J. Prochaska, Jr. Executive Vice President and Chief Accounting Officer 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Stanley J. Talbi Executive Vice President and Chief Financial Officer 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Gwenn L. Carr Senior Vice President and Secretary 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Eric T. Steigerwalt Senior Vice President and Treasurer 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 William D. Cammarata Senior Vice President 18210 Crane Nest Drive Tampa, FL 33647 Elizabeth M. Forget Senior Vice President 260 Madison Ave New York, NY 10016 Gene L. Lunman Senior Vice President 185 Asylum Street Hartford, CT 06103 Roberto Baron Vice President and Senior Actuary 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 S. Peter Headley Vice President and Assistant Secretary 3717 W. 100(th) Street Suite 700 Overland Park, KS 62210
NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH INSURANCE COMPANY - -------------------------- --------------------------------------------------------------------- Daniel D. Jordan Vice President and Assistant Secretary 501 Boylston Street Boston, MA 02116 Bennett D. Kleinberg Vice President and Actuary 185 Asylum Street Hartford, CT 06103 Christopher A. Kremer Vice President and Actuary 501 Boylston Street Boston, MA 02116 Paul L. LeClair Vice President and Actuary 501 Boylston Street Boston, MA 02116 Jonathan L. Rosenthal Vice President and Chief Hedging Officer 10 Park Avenue Morristown, NJ 07962 Patrick D. Studley Vice President and Actuary 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Jeffrey N. Altman Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Steven J. Brash Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Herbert B. Brown Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Vincent Cirulli Vice President 10 Park Avenue Morristown, NJ 07962 Deidre E. Curran Vice President 300 Davidson Ave. Somerset, NJ 08873 James R. Dingler Vice President 10 Park Avenue Morristown, NJ 07962 Judith A. Gulotta Vice President 10 Park Avenue Morristown, NJ 07962 Gregory M. Harrison Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 C. Scott Inglis Vice President 10 Park Avenue Morristown, NJ 07962 James W. Koeger Vice President 13045 Tesson Ferry Road St. Louis, MO 63128 Joseph J. Massimo Vice President 18210 Crane Nest Drive Tampa, FL 33647
NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH INSURANCE COMPANY - -------------------------- --------------------------------------------------------------------- Daniel A. O'Neill Vice President 8717 W. 110 th Street Suite 700 Overland Park, KS 62210 Mark S. Reilly Vice President 185 Asylum Street Hartford, CT 06103 Mark J. Remington Vice President 185 Asylum Street Hartford, CT 06103 Ragai A. Roushdy Vice President 10 Park Avenue Morristown, NJ 07962 Kevin M. Thorwarth Vice President 10 Park Avenue Morristown, NJ 07962 Mark. H. Wilsmann Vice President 10 Park Avenue Morristown, NJ 07962
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT The Registrant is a separate account of MetLife Insurance Company of Connecticut under Connecticut insurance law. The Depositor is a wholly owned subsidiary of MetLife, Inc., a publicly traded company. No person is controlled by the Registrant. The following outline indicates those entities that are controlled by MetLife, Inc. or are under the common control of MetLife, Inc. No person is controlled by the Registrant. ORGANIZATIONAL STRUCTURE OF METLIFE, INC. AND SUBSIDIARIES AS OF MARCH 31, 2008 The following is a list of subsidiaries of MetLife, Inc. updated as of March 31, 2008. Those entities which are listed at the left margin (labeled with capital letters) are direct subsidiaries of MetLife, Inc. Unless otherwise indicated, each entity which is indented under another entity is a subsidiary of that other entity and, therefore, an indirect subsidiary of MetLife, Inc. Certain inactive subsidiaries have been omitted from the MetLife, Inc. organizational listing. The voting securities (excluding directors' qualifying shares, (if any)) of the subsidiaries listed are 100% owned by their respective parent corporations, unless otherwise indicated. The jurisdiction of domicile of each subsidiary listed is set forth in the parenthetical following such subsidiary. A. MetLife Group, Inc. (NY) B. MetLife Bank National Association (USA) C. Exeter Reassurance Company, Ltd. (Bermuda) D. MetLife Taiwan Insurance Company Limited (Taiwan) E. Metropolitan Tower Life Insurance Company (DE) 1. TH Tower NGP, LLC (DE) 2. Partners Tower, L.P. (DE) - a 99% limited partnership interest of Partners Tower, L.P. is held by Metropolitan Tower Life Insurance Company and 1% general partnership interest is held by TH Tower NGP, LLC (DE) 3. TH Tower Leasing, LLC (DE) 4. MetLife Reinsurance Company of Charleston (SC) 5. MetLife Reinsurance Company of Vermont (VT) 6. EntreCap Real Estate II LLC (DE) a) PREFCO Dix-Huit LLC (CT) b) PREFCO X Holdings LLC (CT) c) PREFCO Ten Limited Partnership (CT) - a 99.9% limited partnership interest of PREFCO Ten Limited Partnership is held by EntreCap Real Estate II LLC and 0.1% general partnership is held by PREFCO X Holdings LLC. d) PREFCO Vingt LLC (CT) e) PREFCO Twenty Limited Partnership (CT) - a 99% limited partnership interest of PREFCO Twenty Limited Partnership is held by EntreCap Real Estate II LLC and 1% general partnership is held by PREFCO Vingt LLC. 7. Plaza Drive Properties, LLC (DE) 8. MTL Leasing, LLC (DE) a) PREFCO IX Realty LLC (CT) b) PREFCO XIV Holdings LLC (CT) c) PREFCO Fourteen Limited Partnership (CT) - a 99.9% limited partnership interest of PREFCO Fourteen Limited Partnership is held by MTL Leasing, LLC and 0.1% general partnership is held by PREFCO XIV Holdings LLC. F. MetLife Pensiones Mexico S.A. (Mexico)- 97.4738% is owned by MetLife, Inc. and 2.5262% is owned by MetLife International Holdings, Inc. G. MetLife Chile Inversiones Limitada (Chile)- 99.9999999% is owned by MetLife, Inc. and 0.0000001% is owned by Natiloportem Holdings, Inc. 1. MetLife Chile Seguros de Vida S.A. (Chile)- 99.99% is owned by MetLife Chile Inversiones Limitada and 0.01% is owned by MetLife International Holdings, Inc. a) MetLife Chile Administradora de Mutuos Hipotecarios S.A. (Chile)- 99.99% is owned by MetLife Chile Seguros de Vida S.A. and 0.01% is owned by MetLife Chile Inversiones Limitada. H. MetLife Mexico S.A. (Mexico)- 98.70541% is owned by MetLife, Inc., 1.29459% is owned by MetLife International Holdings, Inc. 1. MetLife Afore, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Mexico S.A. and 0.01% is owned by MetLife Pensiones Mexico S.A. a) Met1 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. b) Met2 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. c) MetA SIEFORE Adicional, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and .01% is owned by MetLife Mexico S.A. d) Met3 SIEFORE Basica, S.A. de C.V. (Mexico) - 99.99% is owned by MetLife Afore, S.A. de C.V. and .01% is owned by MetLife Mexico S.A. e) Met4 SIEFORE, S.A. de C.V. (Mexico) - 99.99% is owned by MetLife Afore, S.A. de C.V. and .01% is owned by MetLife Mexico S.A. f) Met5 SIEFORE, S.A. de C.V. (Mexico) - 99.99% is owned by MetLife Afore, S.A. de C.V. and .01% is owned by MetLife Mexico S.A. 2. ML Capacitacion Comercial S.A. de C.V. (Mexico) - 99% is owned by MetLife Mexico S.A. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. I. MetLife Mexico Servicios, S.A. de C.V. (Mexico)- 98% is owned by MetLife, Inc. and 2% is owned by MetLife International Holdings, Inc. J. Metropolitan Life Seguros de Vida S.A. (Uruguay) K. MetLife Securities, Inc. (DE) L. Enterprise General Insurance Agency, Inc. (DE) 1. MetLife General Insurance Agency of Texas, Inc. (DE) 2. MetLife General Insurance Agency of Massachusetts, Inc. (MA) 1 M. Metropolitan Property and Casualty Insurance Company (RI) 1. Metropolitan General Insurance Company (RI) 2. Metropolitan Casualty Insurance Company (RI) 3. Metropolitan Direct Property and Casualty Insurance Company (RI) 4. Met P&C Managing General Agency, Inc. (TX) 5. MetLife Auto & Home Insurance Agency, Inc. (RI) 6. Metropolitan Group Property and Casualty Insurance Company (RI) a) Metropolitan Reinsurance Company (U.K.) Limited (United Kingdom) 7. Metropolitan Lloyds, Inc. (TX) a) Metropolitan Lloyds Insurance Company of Texas (TX)- Metropolitan Lloyds Insurance Company of Texas, an affiliated association, provides automobile, homeowner and related insurance for the Texas market. It is an association of individuals designated as underwriters. Metropolitan Lloyds, Inc., a subsidiary of Metropolitan Property and Casualty Insurance Company, serves as the attorney-in-fact and manages the association. 8. Economy Fire & Casualty Company (IL) a) Economy Preferred Insurance Company (IL) b) Economy Premier Assurance Company (IL) N. Cova Corporation (MO) 1. Texas Life Insurance Company (TX) 2. Cova Life Management Company (DE) O. MetLife Investors Insurance Company (MO) P. First MetLife Investors Insurance Company (NY) Q. Walnut Street Securities, Inc. (MO) R. Newbury Insurance Company, Limited (BERMUDA) S. MetLife Investors Group, Inc. (DE) 1. MetLife Investors Distribution Company (MO) 2. Met Investors Advisory, LLC (DE) 3. MetLife Investors Financial Agency, Inc. (TX) 2 T. MetLife International Holdings, Inc. (DE) 1. MetLife Mexico Cares, S.A. de C.V. (Mexico) a) Fundacion MetLife Mexico, A.C. (Mexico) 2. Natiloportem Holdings, Inc. (DE) a) Servicios Administrativos Gen, S.A. de C.V. (Mexico) (1) MLA Comercial, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. (2) MLA Servicios, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. 3. MetLife India Insurance Company Private Limited (India)- 26% is owned by MetLife International Holdings, Inc. and 74% is owned by third parties. 4. Metropolitan Life Insurance Company of Hong Kong Limited (Hong Kong)- 99.99913% is owned by MetLife International Holdings, Inc. and 0.00087% is owned by Natiloporterm Holdings, Inc. 5. Metropolitan Life Seguros de Retiro S.A. (Argentina)- 95.23% is owned by MetLife International Holdings, Inc. and 4.77% is owned by Natiloportem Holdings, Inc. 6. MetLife Seguros de Vida S.A. (Argentina)- 95.2499% is owned by MetLife International Holdings, Inc. and 4.7473% is owned by Natiloportem Holdings, Inc. 7. MetLife Insurance Company of Korea Limited (South Korea)- 16.49% of MetLife Insurance Company of Korea Limited is owned by MetLife, Mexico, S.A. and 83.51% is owned by Metlife International Holdings, Inc. 8. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)- 66.6617540% is owned by MetLife International Holdings, Inc. and 33.3382457% is owned by MetLife Worldwide Holdings, Inc. and 0.0000003% is owned by Natiloportem Holdings, Inc. 9. MetLife Global, Inc. (DE) 10. MetLife Administradora de Fundos Multipatrocinados Ltda (Brazil) - 95.4635% is owned by MetLife International Holdings, Inc. and 4.5364% is owned by Natiloportem Holdings, Inc. 11. MetLife Insurance Limited (United Kingdom) 12. MetLife General Insurance Limited (Australia) 13. MetLife Limited (United Kingdom) 14. MetLife Insurance S.A./NV (Belgium) - 99.9% is owned by MetLife International Holdings, Inc. and 0.1% is owned by third parties. 15. MetLife Services Limited (United Kingdom) 16. MetLife Insurance Limited (Australia) a) MetLife Insurance and Investment Trust (Australia) b) MetLife Investments Pty Limited (Australia) c) MetLife Services (Singapore) PTE Limited (Australia) 17. Siembra Seguros de Retiro S.A. (Argentina) - 96.8819% is owned by MetLife International Holdings, Inc. and 3.1180% is owned by Natiloportem Holdings, Inc. 18. Best Market S.A. (Argentina) - 5% of the shares are held by Natiloportem Holdings, Inc. and 94.9999% is owned by MetLife International Holdings Inc. 19. Compania Previsional MetLife S.A. (Brazil) - 95.4635% is owned by MetLife International Holdings, Inc. and 4.5364% is owned by Natiloportem Holdings, Inc. (a) Met AFJP S.A. (Argentina) - 75.4088% of the shares of Met AFJP S.A. are held by Compania Previsional MetLife SA, 19.5912% is owned by MetLife Seguros de Vida SA, 3.9689% is held by Natiloportem Holdings, Inc. and 1.0310% is held by Metropolitan Life Seguros de Retiro SA. 20. MetLife Worldwide Holdings, Inc. (DE) a) MetLife Towarzystwo Ubezpieczen na Zycie Spolka Akcyjna. (Poland) b) MetLife Direct Co., Ltd. (Japan) c) MetLife Limited (Hong Kong) U. Metropolitan Life Insurance Company (NY) 1. 334 Madison Euro Investments, Inc. (DE) a) Park Twenty Three Investments Company (United Kingdom)- 1% voting control of Park Twenty Three Investments Company is held by St. James Fleet Investments Two Limited. 1% of the shares of Park Twenty Three Investments Company is held by Metropolitan Life Insurance Company. 99% is owned by 334 Madison Euro Investment, Inc. (1) Convent Station Euro Investments Four Company (United Kingdom)- 1% voting control of Convent Station Euro Investments Four Company is held by 334 Madison Euro Investments, Inc. as nominee for Park Twenty Three Investments Company. 99% is owned by Park Twenty Three Investments Company. 2. St. James Fleet Investments Two Limited (Cayman Islands)- 34% of the shares of St. James Fleet Investments Two Limited is held by Metropolitan Life Insurance Company. 3. One Madison Investments (Cayco) Limited (Cayman Islands)- 10.1% voting control of One Madison Investments (Cayco) Limited is held by Convent Station Euro Investments Four Company. 89.9% of the shares of One Madison Investments (Cayco) Limited is held by Metropolitan Life Insurance Company. 4. CRB Co, Inc. (MA)- AEW Real Estate Advisors, Inc. holds 49,000 preferred non-voting shares and AEW Advisors, Inc. holds 1,000 preferred non-voting shares of CRB, Co., Inc. 5. GA Holding Corp. (MA) 3 6. Thorngate, LLC (DE) 7. Alternative Fuel I, LLC (DE) 8. Transmountain Land & Livestock Company (MT) 9. MetPark Funding, Inc. (DE) 10. HPZ Assets LLC (DE) 11. Missouri Reinsurance (Barbados), Inc. (Barbados) 12. Metropolitan Tower Realty Company, Inc. (DE) a) Midtown Heights, LLC (DE) 13. MetLife Real Estate Cayman Company (Cayman Islands) 14. Metropolitan Marine Way Investments Limited (Canada) 15. MetLife Private Equity Holdings, LLC (DE) 16. 23rd Street Investments, Inc. (DE) a) Mezzanine Investment Limited Partnership-BDR (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc., 99% Limited Partnership Interest is held by Metropolitan Life Insurance Company. b) Mezzanine Investment Limited Partnership-LG (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc., 99% Limited Partnership Interest is held by Metropolitan Life Insurance Company. c) MetLife Capital Credit L.P. (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc., 99% Limited Partnership Interest is held by Metropolitan Life Insurance Company. d) MetLife Capital Limited Partnership (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc., 99% Limited Partnership Interest is held by Metropolitan Life Insurance Company. 17. Metropolitan Realty Management, Inc. (DE) 18. Hyatt Legal Plans, Inc. (DE) a) Hyatt Legal Plans of Florida, Inc. (FL) 19. MetLife Holdings, Inc. (DE) a) MetLife Credit Corp. (DE) b) MetLife Funding, Inc. (DE) 4 20. Bond Trust Account A (MA) 21. MetLife Investments Asia Limited (Hong Kong). 22. MetLife Investments Limited (United Kingdom)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited. 23. MetLife Latin America Asesorias e Inversiones Limitada (Chile)- 23rd Street Investments, Inc. holds 0.01% of MetLife Latin America Asesorias e Inversiones Limitada. 24. New England Life Insurance Company (MA) a) MetLife Advisers, LLC (MA) b) New England Securities Corporation (MA) 25. GenAmerica Financial, LLC (MO) a) GenAmerica Capital I (DE) b) General American Life Insurance Company (MO) (1) GenAmerica Management Corporation (MO) 5 (2) Reinsurance Group of America, Incorporated (MO) - 52% is owned by General American Life Insurance Company. (a) Reinsurance Company of Missouri, Incorporated (MO) (i) Timberlake Financial, L.L.C. (DE) (A) Timberlake Reinsurance Company II (SC) (ii) RGA Reinsurance Company (MO) (A) Reinsurance Partners, Inc. (MO) (iii) Parkway Reinsuarnce Company (MO) (b) RGA Worldwide Reinsurance Company, Ltd. (Barbados) (c) RGA Atlantic Reinsurance Company, Ltd. (Barbados) (d) RGA Americas Reinsurance Company, Ltd. (Barbados) (e) RGA Reinsurance Company (Barbados) Ltd. (Barbados) (i) RGA Financial Group, L.L.C. (DE)- 80% is owned by RGA Reinsurance Company (Barbados) Ltd. RGA Reinsurance Company also owns a 20% non-equity membership in RGA Financial Group, L.L.C. (f) RGA Life Reinsurance Company of Canada (Canada) (g) RGA International Corporation (Nova Scotia/Canada) (h) RGA Holdings Limited (U.K.) (United Kingdom) (i) RGA UK Services Limited (United Kingdom) (ii) RGA Capital Limited U.K. (United Kingdom) (iii) RGA Reinsurance (UK) Limited (United Kingdom) (iv) RGA Services India Private Limited (India) - Reinsurance Group of America, Incorporated owns 99% of RGA Services India Private Limited and RGA Holdings Limited owns 1%. (i) RGA South African Holdings (Pty) Ltd. (South Africa) (i) RGA Reinsurance Company of South Africa Limited (South Africa) (j) RGA Australian Holdings PTY Limited (Australia) (i) RGA Reinsurance Company of Australia Limited (Australia) (ii) RGA Asia Pacific PTY, Limited (Australia) (k) General American Argentina Seguros de Vida, S.A. (Argentina) - 95% of General American Argentina Seguros de Vida, S.A. is owned by Reinsurance Group of America, Incorporated and 5% is owned by RGA Reinsurance Company (Barbados) Ltd. 6 (l) RGA Technology Partners, Inc. (MO) (m) RGA International Reinsurance Company (Ireland) (n) RGA Capital Trust I (DE) (o) RGA Global Reinsurance Company, Ltd. (Bermuda) 26. Corporate Real Estate Holdings, LLC (DE) 27. Ten Park SPC (CAYMAN ISLANDS ) - 1% voting control of Ten Park SPC is held by 23rd Street Investments, Inc. 28. MetLife Tower Resources Group, Inc. (DE) 29. Headland - Pacific Palisades, LLC (CA) 30. Headland Properties Associates (CA) - 1% is owned by Headland - Pacific Palisades, LLC and 99% is owned by Metropolitan Life Insurance Company. 31. Krisman, Inc. (MO) 32. Special Multi-Asset Receivables Trust (DE) 33. White Oak Royalty Company (OK) 34. 500 Grant Street GP LLC (DE) 35. 500 Grant Street Associates Limited Partnership (CT) - 99% of 500 Grant Street Associates Limited Partnership is held by Metropolitan Life Insurance Company and 1% by 500 Grant Street GP LLC 36. MetLife Canada/MetVie Canada (Canada) 37. MetLife Retirement Services LLC (NJ) a) MetLife Investment Funds Services LLC (NJ) (i) MetLife Investment Funds Management LLC (NJ) (ii) MetLife Associates LLC (DE) 38. Euro CL Investments LLC (DE) 39. MEX DF Properties, LLC (DE) 40. MSV Irvine Property, LLC (DE) - 4% of MSV Irvine Property, LLC is owned by Metropolitan Tower Realty Company, Inc. and 96% is owned by Metropolitan Life Insurance Company 41. MetLife Properties Ventures, LLC (DE) a) Citypoint Holdings II Limited (UK) 42. Housing Fund Manager, LLC (DE) a) MTC Fund I, LLC (DE) 0.01% of MTC Fund I, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. b) MTC Fund II, LLC (DE) - 0.01% of MTC Fund I, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. c) MTC Fund III, LLC (DE) - 0.01% of MTC Fund I, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. 43. MLIC Asset Holdings, LLC (DE) V. MetLife Capital Trust II (DE) W. MetLife Capital Trust III (DE) X. MetLife Capital Trust IV (DE) Y. MetLife Insurance Company of Connecticut (CT) - 86.72% is owned by MetLife, Inc. and 13.28% is owned by MetLife Investors Group, Inc. 1. MetLife Property Ventures Canada ULC (Canada) 2. Pilgrim Investments Oakmont Lane, LLC (DE) - 50% is owned by MetLife Insurance Company of Connecticut. 3. Pilgrim Alternative Investments Opportunity Fund I, LLC (DE) - 67% is owned by MetLife Insurance Company of Connecticut, and 33% is owned by third party. 4. Pilgrim Alternative Investments Opportunity Fund III Associates, LLC (CT) - 67% is owned by MetLife Insurance Company of Connecticut, and 33% is owned by third party. 5. Pilgrim Investments Highland Park, LLC (DE) 6. Metropolitan Connecticut Properties Ventures, LLC (DE) 7. MetLife Canadian Property Ventures LLC (NY) 8. Euro TI Investments LLC (DE) 9. Greenwich Street Investments, LLC (DE) a) Greenwich Street Capital Offshore Fund, Ltd. (Virgin Islands) b) Greenwich Street Investments, L.P. (DE) 10. Hollow Creek, L.L.C. (CT) 11. One Financial Place Corporation (DE) - 100% is owned in the aggregate by MetLife Insurance Company of Connecticut. 12. One Financial Place Holdings, LLC (DE)-100% is owned in the aggregate by MetLife Insurance Company of Connecticut. 13. Plaza LLC (CT) a) Tower Square Securities, Inc. (CT) 1) Tower Square Securities Insurance Agency of New Mexico, Inc. (NM) 2) Tower Square Securities Insurance Agency of Ohio, Inc. (OH) 99% is owned by Tower Square Securities, Inc. 14. TIC European Real Estate LP, LLC (DE) 15. MetLife European Holdings, Inc. (UK) a) MetLife Europe Limited (IRELAND) (i) MetLife Pensions Trustees Limited (UK) b) MetLife Assurance Limited (UK) 16. Travelers International Investments Ltd. (Cayman Islands) 17. Euro TL Investments LLC (DE) 18. Corrigan TLP LLC (DE) 19. TLA Holdings LLC (DE) a) The Prospect Company (DE) 1) Panther Valley, Inc. (NJ) 20. TRAL & Co. (CT) - TRAL & Co. is a general partnership. Its partners are MetLife Insurance Company of Connecticut and Metropolitan Life Insurance Company. 21. Tribeca Distressed Securities, L.L.C. (DE) 22. MetLife Investors USA Insurance Comapny (DE) Z. MetLife Reinsurance Company of South Carolina (SC) AA. MetLife Investment Advisors Company, LLC (DE) BB. MetLife Standby I, LLC (DE) 1. MetLife Exchange Trust I (DE) CC. MetLife Services and Solutions, LLC (DE) 1. MetLife Solutions Pte. Ltd. (Singapore) (i) MetLife Services East Private Limited (India) DD. Safeguard Health Enterprises, Inc. (DE) 1. Safeguard Dental Services, Inc. (DE) 2. Safeguard Health Plans, Inc. (CA) 3. SafeHealth Life Insurance Company (CA) 4. Safeguard Health Plans, Inc. (FL) 5. Safeguard Health Plans, Inc. (NV) 6. Safeguard Health Plans, Inc. (TX) EE. MetLife Capital Trust X (DE) The voting securities (excluding directors' qualifying shares, if any) of each subsidiary shown on the organizational chart are 100% owned by their respective parent corporation, unless otherwise indicated. In addition to the entities shown on the organizational chart, MetLife, Inc. (or where indicated, a subsidiary) also owns interests in the following entities: 1) Metropolitan Life Insurance Company owns varying interests in certain mutual funds distributed by its affiliates. These ownership interests are generally expected to decrease as shares of the funds are purchased by unaffiliated investors. 2) Metropolitan Life Insurance Company indirectly owns 100% of the non-voting preferred stock of Nathan and Lewis Associates Ohio, Incorporated, an insurance agency. 100% of the voting common stock of this company is held by an individual who has agreed to vote such shares at the direction of N.L. HOLDING CORP. (DEL), a direct wholly owned subsidiary of MetLife, Inc. 3) Mezzanine Investment Limited Partnerships ("MILPs"), Delaware limited partnerships, are investment vehicles through which investments in certain entities are held. A wholly owned subsidiary of Metropolitan Life Insurance Company serves as the general partner of the limited partnerships and Metropolitan Life Insurance Company directly owns a 99% limited partnership interest in each MILP. The MILPs have various ownership and/or debt interests in certain companies. 4) The Metropolitan Money Market Pool and MetLife Intermediate Income Pool are pass-through investment pools, of which Metropolitan Life Insurance Company and/or its subsidiaries and/or affiliates are general partners. NOTE: THE METLIFE, INC. ORGANIZATIONAL CHART DOES NOT INCLUDE REAL ESTATE JOINT - ---- VENTURES AND PARTNERSHIPS OF WHICH METLIFE, INC. AND/OR ITS SUBSIDIARIES IS AN INVESTMENT PARTNER. IN ADDITION, CERTAIN INACTIVE SUBSIDIARIES HAVE ALSO BEEN OMITTED. 7 ITEM 27. NUMBER OF CONTRACT OWNERS As of April 30, 2008, there were 215 qualified contracts and 189 non-qualified contracts of Pioneer Annuistar; there were 376 qualified contracts and 300 non- qualified contracts of Portfolio Architect II; and there were 56 qualified contracts and 64 non-qualified contracts of Pioneer Annuistar Value offered by the Registrant. ITEM 28. INDEMNIFICATION The Depositor's parent, MetLife, Inc. has secured a Financial Institutions Bond in the amount of $50,000,000, subject to a $5,000,000 deductible. MetLife, Inc. also maintains a Directors and Officers Liability and Corporate Reimbursement Insurance Policy with limits of $400 million under which the Depositor and MetLife Investors Distribution Company, the Registrant's underwriter (the "Underwriter"), as well as certain other subsidiaries of MetLife are covered. A provision in MetLife, Inc.'s by-laws provides for the indemnification (under certain circumstances) of individuals serving as directors or officers of certain organizations, including the Depositor and the Underwriter. Sections 33-770 to 33-778, inclusive of the Connecticut General Statutes ("C.G.S.") regarding indemnification of directors and officers of Connecticut corporations provides in general that Connecticut corporations shall indemnify their officers, directors and certain other defined individuals against judgments, fines, penalties, amounts paid in settlement and reasonable expenses actually incurred in connection with proceedings against the corporation. The corporation's obligation to provide such indemnification generally does not apply unless (1) the individual is wholly successful on the merits in the defense of any such proceeding; or (2) a determination is made (by persons specified in the statute) that the individual acted in good faith and in the best interests of the corporation and in all other cases, his conduct was at least not opposed to the best interests of the corporation, and in a criminal case he had no reasonable cause to believe his conduct was unlawful; or (3) the court, upon application by the individual, determines in view of all of the circumstances that such person is fairly and reasonably entitled to be indemnified, and then for such amount as the court shall determine. With respect to proceedings brought by or in the right of the corporation, the statute provides that the corporation shall indemnify its officers, directors and certain other defined individuals, against reasonable expenses actually incurred by them in connection with such proceedings, subject to certain limitations. C.G.S. Section 33-778 provides an exclusive remedy; a Connecticut corporation cannot indemnify a director or officer to an extent either greater or less than that authorized by the statute, e.g., pursuant to its certificate of incorporation, by-laws, or any separate contractual arrangement. However, the statute does specifically authorize a corporation to procure indemnification insurance to provide greater indemnification rights. The premiums for such insurance may be shared with the insured individuals on an agreed basis. Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of 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 (a) MetLife Investors Distribution Company 5 Park Plaza, Suite 1900 Irvine, CA 92614 MetLife Investors Distribution Company also serves as principal underwriter and distributor for the following investment companies (other than the Registrant): MetLife of CT Separate Account QPN for Variable Annuities MetLife of CT Fund UL for Variable Life Insurance, MetLife of CT Fund UL III for Variable Life Insurance Metropolitan Life Variable Annuity Separate Account I Metropolitan Life Variable Annuity Separate Account II Met Investors Series Trust MetLife Investors Variable Annuity Account One MetLife Investors Variable Annuity Account Five MetLife Investors Variable Life Account One MetLife Investors Variable Life Account Five MetLife Investors USA Separate Account A MetLife Investors USA Variable Life Account A First MetLife Investors Variable Annuity Account One General American Separate Account Eleven General American Separate Account Twenty-Eight General American Separate Account Twenty-Nine General American Separate Account Two Security Equity Separate Account Twenty-Six Security Equity Separate Account Twenty-Seven Metropolitan Life Separate Account E Metropolitan Life Separate Account UL Metropolitan Tower Life Separate Account One Metropolitan Tower Life Separate Account Two Paragon Separate Account A Paragon Separate Account B Paragon Separate Account C Paragon Separate Account D Metropolitan Series Fund, Inc. (b) MetLife Investors Distribution Company is the principal underwriter for the Contracts. The following persons are officers and managers of MetLife Investors Distribution Company. The principal business address for MetLife Investors Distribution Company is 5 Park Plaza, Suite 1900, Irvine, CA 92614.
NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH UNDERWRITER - -------------------------- --------------------------------------------------------------------- Michael K. Farrell Director 10 Park Avenue Morristown, NJ 07962 Craig W. Markham Director and Vice President 13045 Tesson Ferry Road St. Louis, MO 63128 William J. Toppeta Director 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Paul A. Sylvester President, National Sales Manager- Annuities & LTC 10 Park Avenue Morristown, NJ 07962 Elizabeth M. Forget Executive Vice President, Investment Fund Management & Marketing 260 Madison Avenue New York, NY 10016 Paul A. LaPiana Executive Vice President, National Sales Manager-Life 5 Park Plaza Suite 1900 Irvine, CA 92614 Richard C. Pearson Executive Vice President, General Counsel and Secretary 5 Park Plaza Suite 1900 Irvine, CA 92614 Andrew Aiello Senior Vice President, Channel Head-National Accounts 5 Park Plaza Suite 1900 Irvine, CA 92614 Jeffrey A. Barker Senior Vice President, Channel Head-Independent Accounts 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Douglas P. Rodgers Senior Vice President, Channel Head-LTC 10 Park Avenue Morristown, NJ 07962 Myrna F. Solomon Senior Vice President, Channel Head-Banks 501 Boylston Street Boston, MA 02116 Leslie Sutherland Senior Vice President, Channel Head-Broker/Dealers 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 John C. Kennedy Senior Vice President, Channel Head-Wirehouse 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Curtis Wohlers Senior Vice President, Channel Head-Planners 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101
NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH UNDERWRITER - -------------------------- --------------------------------------------------------------------- Jay S. Kaduson Senior Vice President 10 Park Avenue Morristown, NJ 07962 Eric T. Steigerwalt Treasurer 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Peter Gruppuso Vice President, Chief Financial Officer 485-E US Highway 1 South Iselin, NJ 08830 Debora L. Buffington Vice President, Director of Compliance 5 Park Plaza Suite 1900 Irvine, CA 92614 David DeCarlo Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Charles M. Deuth Vice President, National Accounts 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Paul M. Kos Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Deron J. Richens Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Cathy Sturdivant Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Paulina Vakouros Vice President 260 Madison Avenue New York, NY 10016
(c) Compensation from the Registrant. The following commissions and other compensation were received by the Distributor, directly or indirectly, from the Registrant during the Registrant's last fiscal year:
(2) NET (1) UNDERWRITING (3) (4) (5) NAME OF PRINCIPAL DISCOUNTS AND COMPENSATION ON BROKERAGE OTHER UNDERWRITER COMMISSIONS REDEMPTION COMMISSIONS COMPENSATION ----------------- --------------- --------------- --------------- --------------- MetLife Investors.......................... $128,299,602 $0 $0 $0 Distribution Company
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS METLIFE INSURANCE COMPANY OF CONNECTICUT ONE CITYPLACE HARTFORD, CONNECTICUT 06103-3415 ITEM 31. MANAGEMENT SERVICES Not Applicable. ITEM 32. UNDERTAKINGS The undersigned Registrant hereby undertakes: (a) 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 sixteen months old for so long as payments under the variable annuity contracts may be accepted; (b) 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; and (c) To deliver any Statement of Additional Information and any financial statements required to be made available under this Form N-4 promptly upon written or oral request. (d) To comply with and rely upon the Securities and Exchange Commission No- Action Letter to the American Council of Life Insurance, dated November 28, 1998, regarding Sections 22(e), 27(c)(1) and 27(d) of the Investment Company Act of 1940. The MetLife Insurance Company of Connecticut hereby represents: (a) That the aggregate charges under the Contracts of the Registrant described herein are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by MetLife Insurance Company of Connecticut. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this Registration Statement to be signed on its behalf, in the City of Morristown, and State of New Jersey, on this 9th day of July 2008. METLIFE OF CT SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES (Registrant) METLIFE INSURANCE COMPANY OF CONNECTICUT (Depositor) By: /s/ MICHAEL K. FARRELL ------------------------------------ Michael K. Farrell, President As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on the 9th day of July 2008.
/s/ *MICHAEL K. FARRELL President and Director - ----------------------------------------------- (Michael K. Farrell) /s/ *STANLEY J. TALBI Executive Vice President and Chief Financial - ----------------------------------------------- Officer (Stanley J. Talbi) /s/ *JOSEPH J. PROCHASKA, JR. Executive Vice President and Chief - ----------------------------------------------- Accounting Officer (Joseph J. Prochaska, Jr.) /s/ *WILLIAM J. MULLANEY Director - ----------------------------------------------- (William J. Mullaney) /s/ *LISA M. WEBER Director - ----------------------------------------------- (Lisa M. Weber)
By: /s/ JOHN E. CONNOLLY, JR. ------------------------------------ John E. Connolly, Jr., Attorney-in- Fact * MetLife Insurance Company of Connecticut. Executed by John E. Connolly, Jr. on behalf of those indicated pursuant to powers of attorney filed herewith. EXHIBIT INDEX 13 Powers of Attorney
EX-99.(R) 2 y61036a1exv99wxry.txt POWERS OF ATTORNEY MetLife Insurance Company of Connecticut Power of Attorney Michael K. Farrell President and Director KNOW ALL MEN BY THESE PRESENTS, that I, Michael K. Farrell, President and a director of MetLife Insurance Company of Connecticut, a Connecticut company, do hereby appoint Michele H. Abate, Paul G. Cellupica, John E. Connolly, Jr., James L. Lipscomb, Gina C. Sandonato, Myra L. Saul and Marie C. Swift, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, in connection with: - - MetLife of CT Separate Account Eleven for Variable Annuities (Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity File No. 333-101778), - - MetLife of CT Separate Account QPN for Variable Annuities (MetLife Retirement Perspectives File No. 333-141941, Unallocated Group Variable Annuity File No. 333-136191), - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife and Invest File No. 002-88637, MetLife Variable Survivorship Life File No. 333-69771, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2 File No. 333-96515, MetLife Variable Life File No. 333-96519, MetLife Variable Survivorship Life II File No. 333-56952, MetLife Variable Life Accumulator- Series III File No. 333-113109), - - MetLife of CT Fund UL III for Variable Life Insurance (Corporate Owned Variable Universal Life Series 1 and Series 2 File No. 333-71349, Corporate Owned Variable Universal Life 2000 and Corporate Owned Variable Universal Life III File No. 333-94779, Corporate Benefit Life File No. 333-64364, Corporate Select Policy File No. 333-105335, Corporate Owned Variable Universal Life IV File No. 333-113533), and in connection with the combination of separate accounts with and into the MetLife of CT Separate Account Eleven for Variable Annuities on or about October 13, 2008: MetLife of CT Separate Account Eleven for Variable Annuities (Premier Advisers II Annuity, Premier Advisers III and Premier Advisers III Annuity (Series II), Portfolio Architect Annuity, Portfolio Architect Select Annuity, Premier Advisers Annuity (Class I), Premier Advisers Annuity (Class II), MetLife Access Annuity and MetLife Access Select Annuity, Vintage Annuity, Protected Equity Portfolio Annuity, Index Annuity, Vintage XTRA Annuity, Portfolio Architect XTRA Annuity, Vintage XTRA Annuity (Series II), Universal Annuity, Universal Select Annuity, Universal Annuity Advantage, MetLife Retirement Account Annuity, Premier Advisers AssetManager Annuity, Premier Advisers L Annuity, Premier Advisers L Annuity (Series II), Vintage II Annuity and Vintage II Annuity (Series II), Vintage 3 Annuity, Portfolio Architect 3 Annuity, Portfolio Architect L Annuity, Vintage L Annuity, Pioneer AnnuiStar Flex Annuity, Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity, Pioneer AnnuiStar Annuity, Portfolio Architect II Annuity and Pioneer AnnuiStar Value Annuity, PrimElite Annuity and PrimElite II Annuity, Gold Track Annuity and Gold Track Select Annuity, Marquis Portfolios, Vintage Access Annuity, Portfolio Architect Access Annuity, Scudder Advocate Advisor Annuity and Scudder Advocate Advisor- ST1. and in connection with the combination of separate accounts with and into the MetLife of CT Fund UL for Variable Life Insurance on or about October 13, 2008: - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife, MetLife Variable Survivorship Life, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2, MetLife Variable Life, MetLife Variable Survivorship Life II, MetLife Variable Life Accumulator- Series III, Vintage Life, and Portfolio Architect Life.) and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder with or without the others. IN WITNESS WHEREOF, I have hereunto set my hand this 2nd day of July, 2008. /s/ Michael K. Farrell ---------------------------------------- Michael K. Farrell MetLife Insurance Company of Connecticut Power of Attorney William J. Mullaney Director KNOW ALL MEN BY THESE PRESENTS, that I, William J. Mullaney, a director of MetLife Insurance Company of Connecticut, a Connecticut company, do hereby appoint Michele H. Abate, Paul G. Cellupica, John E. Connolly, Jr., James L. Lipscomb, Gina C. Sandonato, Myra L. Saul and Marie C. Swift, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, in connection with: - - MetLife of CT Separate Account Eleven for Variable Annuities (Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity File No. 333-101778), - - MetLife of CT Separate Account QPN for Variable Annuities (MetLife Retirement Perspectives File No. 333-141941, Unallocated Group Variable Annuity File No. 333-136191), - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife and Invest File No. 002-88637, MetLife Variable Survivorship Life File No. 333-69771, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2 File No. 333-96515, MetLife Variable Life File No. 333-96519, MetLife Variable Survivorship Life II File No. 333-56952, MetLife Variable Life Accumulator- Series III File No. 333-113109), - - MetLife of CT Fund UL III for Variable Life Insurance (Corporate Owned Variable Universal Life Series 1 and Series 2 File No. 333-71349, Corporate Owned Variable Universal Life 2000 and Corporate Owned Variable Universal Life III File No. 333-94779, Corporate Benefit Life File No. 333-64364, Corporate Select Policy File No. 333-105335, Corporate Owned Variable Universal Life IV File No. 333-113533), and in connection with the combination of separate accounts with and into the MetLife of CT Separate Account Eleven for Variable Annuities on or about October 13, 2008: MetLife of CT Separate Account Eleven for Variable Annuities (Premier Advisers II Annuity, Premier Advisers III and Premier Advisers III Annuity (Series II), Portfolio Architect Annuity, Portfolio Architect Select Annuity, Premier Advisers Annuity (Class I), Premier Advisers Annuity (Class II), MetLife Access Annuity and MetLife Access Select Annuity, Vintage Annuity, Protected Equity Portfolio Annuity, Index Annuity, Vintage XTRA Annuity, Portfolio Architect XTRA Annuity, Vintage XTRA Annuity (Series II), Universal Annuity, Universal Select Annuity, Universal Annuity Advantage, MetLife Retirement Account Annuity, Premier Advisers AssetManager Annuity, Premier Advisers L Annuity, Premier Advisers L Annuity (Series II), Vintage II Annuity and Vintage II Annuity (Series II), Vintage 3 Annuity, Portfolio Architect 3 Annuity, Portfolio Architect L Annuity, Vintage L Annuity, Pioneer AnnuiStar Flex Annuity, Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity, Pioneer AnnuiStar Annuity, Portfolio Architect II Annuity and Pioneer AnnuiStar Value Annuity, PrimElite Annuity and PrimElite II Annuity, Gold Track Annuity and Gold Track Select Annuity, Marquis Portfolios, Vintage Access Annuity, Portfolio Architect Access Annuity, Scudder Advocate Advisor Annuity and Scudder Advocate Advisor- ST1. and in connection with the combination of separate accounts with and into the MetLife of CT Fund UL for Variable Life Insurance on or about October 13, 2008: - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife, MetLife Variable Survivorship Life, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2, MetLife Variable Life, MetLife Variable Survivorship Life II, MetLife Variable Life Accumulator- Series III, Vintage Life, and Portfolio Architect Life.) and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder with or without the others. IN WITNESS WHEREOF, I have hereunto set my hand this 26th day of June, 2008. /s/ William J. Mullaney ---------------------------------------- William J. Mullaney MetLife Insurance Company of Connecticut Power of Attorney Lisa M. Weber Director KNOW ALL MEN BY THESE PRESENTS, that I, Lisa M. Weber, a director of MetLife Insurance Company of Connecticut, a Connecticut company, do hereby appoint Michele H. Abate, Paul G. Cellupica, John E. Connolly, Jr., James L. Lipscomb, Gina C. Sandonato, Myra L. Saul and Marie C. Swift, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, in connection with: - - MetLife of CT Separate Account Eleven for Variable Annuities (Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity File No. 333-101778), - - MetLife of CT Separate Account QPN for Variable Annuities (MetLife Retirement Perspectives File No. 333-141941, Unallocated Group Variable Annuity File No. 333-136191), - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife and Invest File No. 002-88637, MetLife Variable Survivorship Life File No. 333-69771, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2 File No. 333-96515, MetLife Variable Life File No. 333-96519, MetLife Variable Survivorship Life II File No. 333-56952, MetLife Variable Life Accumulator- Series III File No. 333-113109), - - MetLife of CT Fund UL III for Variable Life Insurance (Corporate Owned Variable Universal Life Series 1 and Series 2 File No. 333-71349, Corporate Owned Variable Universal Life 2000 and Corporate Owned Variable Universal Life III File No. 333-94779, Corporate Benefit Life File No. 333-64364, Corporate Select Policy File No. 333-105335, Corporate Owned Variable Universal Life IV File No. 333-113533), and in connection with the combination of separate accounts with and into the MetLife of CT Separate Account Eleven for Variable Annuities on or about October 13, 2008: MetLife of CT Separate Account Eleven for Variable Annuities (Premier Advisers II Annuity, Premier Advisers III and Premier Advisers III Annuity (Series II), Portfolio Architect Annuity, Portfolio Architect Select Annuity, Premier Advisers Annuity (Class I), Premier Advisers Annuity (Class II), MetLife Access Annuity and MetLife Access Select Annuity, Vintage Annuity, Protected Equity Portfolio Annuity, Index Annuity, Vintage XTRA Annuity, Portfolio Architect XTRA Annuity, Vintage XTRA Annuity (Series II), Universal Annuity, Universal Select Annuity, Universal Annuity Advantage, MetLife Retirement Account Annuity, Premier Advisers AssetManager Annuity, Premier Advisers L Annuity, Premier Advisers L Annuity (Series II), Vintage II Annuity and Vintage II Annuity (Series II), Vintage 3 Annuity, Portfolio Architect 3 Annuity, Portfolio Architect L Annuity, Vintage L Annuity, Pioneer AnnuiStar Flex Annuity, Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity, Pioneer AnnuiStar Annuity, Portfolio Architect II Annuity and Pioneer AnnuiStar Value Annuity, PrimElite Annuity and PrimElite II Annuity, Gold Track Annuity and Gold Track Select Annuity, Marquis Portfolios, Vintage Access Annuity, Portfolio Architect Access Annuity, Scudder Advocate Advisor Annuity and Scudder Advocate Advisor- ST1. and in connection with the combination of separate accounts with and into the MetLife of CT Fund UL for Variable Life Insurance on or about October 13, 2008: - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife, MetLife Variable Survivorship Life, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2, MetLife Variable Life, MetLife Variable Survivorship Life II, MetLife Variable Life Accumulator- Series III, Vintage Life, and Portfolio Architect Life.) and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder with or without the others. IN WITNESS WHEREOF, I have hereunto set my hand this 27th day of June, 2008. /s/ Lisa M. Weber ---------------------------------------- Lisa M. Weber MetLife Insurance Company of Connecticut Power of Attorney Stanley J. Talbi Executive Vice President and Chief Financial Officer KNOW ALL MEN BY THESE PRESENTS, that I, Stanley J. Talbi, Executive Vice President and Chief Financial Officer of MetLife Insurance Company of Connecticut, a Connecticut company, do hereby appoint Michele H. Abate, Paul G. Cellupica, John E. Connolly, Jr., James L. Lipscomb, Gina C. Sandonato, Myra L. Saul and Marie C. Swift, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, in connection with: - - MetLife of CT Separate Account Eleven for Variable Annuities (Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity File No. 333-101778), - - MetLife of CT Separate Account QPN for Variable Annuities (MetLife Retirement Perspectives File No. 333-141941, Unallocated Group Variable Annuity File No. 333-136191), - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife and Invest File No. 002-88637, MetLife Variable Survivorship Life File No. 333-69771, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2 File No. 333-96515, MetLife Variable Life File No. 333-96519, MetLife Variable Survivorship Life II File No. 333-56952, MetLife Variable Life Accumulator- Series III File No. 333-113109), - - MetLife of CT Fund UL III for Variable Life Insurance (Corporate Owned Variable Universal Life Series 1 and Series 2 File No. 333-71349, Corporate Owned Variable Universal Life 2000 and Corporate Owned Variable Universal Life III File No. 333-94779, Corporate Benefit Life File No. 333-64364, Corporate Select Policy File No. 333-105335, Corporate Owned Variable Universal Life IV File No. 333-113533), and in connection with the combination of separate accounts with and into the MetLife of CT Separate Account Eleven for Variable Annuities on or about October 13, 2008: MetLife of CT Separate Account Eleven for Variable Annuities (Premier Advisers II Annuity, Premier Advisers III and Premier Advisers III Annuity (Series II), Portfolio Architect Annuity, Portfolio Architect Select Annuity, Premier Advisers Annuity (Class I), Premier Advisers Annuity (Class II), MetLife Access Annuity and MetLife Access Select Annuity, Vintage Annuity, Protected Equity Portfolio Annuity, Index Annuity, Vintage XTRA Annuity, Portfolio Architect XTRA Annuity, Vintage XTRA Annuity (Series II), Universal Annuity, Universal Select Annuity, Universal Annuity Advantage, MetLife Retirement Account Annuity, Premier Advisers AssetManager Annuity, Premier Advisers L Annuity, Premier Advisers L Annuity (Series II), Vintage II Annuity and Vintage II Annuity (Series II), Vintage 3 Annuity, Portfolio Architect 3 Annuity, Portfolio Architect L Annuity, Vintage L Annuity, Pioneer AnnuiStar Flex Annuity, Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity, Pioneer AnnuiStar Annuity, Portfolio Architect II Annuity and Pioneer AnnuiStar Value Annuity, PrimElite Annuity and PrimElite II Annuity, Gold Track Annuity and Gold Track Select Annuity, Marquis Portfolios, Vintage Access Annuity, Portfolio Architect Access Annuity, Scudder Advocate Advisor Annuity and Scudder Advocate Advisor- ST1. and in connection with the combination of separate accounts with and into the MetLife of CT Fund UL for Variable Life Insurance on or about October 13, 2008: - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife, MetLife Variable Survivorship Life, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2, MetLife Variable Life, MetLife Variable Survivorship Life II, MetLife Variable Life Accumulator- Series III, Vintage Life, and Portfolio Architect Life.) and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder with or without the others. IN WITNESS WHEREOF, I have hereunto set my hand this 27th day of June, 2008. /s/ Stanley J. Talbi ---------------------------------------- Stanley J. Talbi MetLife Insurance Company of Connecticut Power of Attorney Joseph J. Prochaska, Jr. Executive Vice President and Chief Accounting Officer KNOW ALL MEN BY THESE PRESENTS, that I, Joseph J. Prochaska, Jr., Executive Vice President and Chief Accounting Officer of MetLife Insurance Company of Connecticut, a Connecticut company, do hereby appoint Michele H. Abate, Paul G. Cellupica, John E. Connolly, Jr., James L. Lipscomb, Gina C. Sandonato, Myra L. Saul and Marie C. Swift, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, in connection with: - - MetLife of CT Separate Account Eleven for Variable Annuities (Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity File No. 333-101778), - - MetLife of CT Separate Account QPN for Variable Annuities (MetLife Retirement Perspectives File No. 333-141941, Unallocated Group Variable Annuity File No. 333-136191), - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife and Invest File No. 002-88637, MetLife Variable Survivorship Life File No. 333-69771, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2 File No. 333-96515, MetLife Variable Life File No. 333-96519, MetLife Variable Survivorship Life II File No. 333-56952, MetLife Variable Life Accumulator- Series III File No. 333-113109), - - MetLife of CT Fund UL III for Variable Life Insurance (Corporate Owned Variable Universal Life Series 1 and Series 2 File No. 333-71349, Corporate Owned Variable Universal Life 2000 and Corporate Owned Variable Universal Life III File No. 333-94779, Corporate Benefit Life File No. 333-64364, Corporate Select Policy File No. 333-105335, Corporate Owned Variable Universal Life IV File No. 333-113533), and in connection with the combination of separate accounts with and into the MetLife of CT Separate Account Eleven for Variable Annuities on or about October 13, 2008: MetLife of CT Separate Account Eleven for Variable Annuities (Premier Advisers II Annuity, Premier Advisers III and Premier Advisers III Annuity (Series II), Portfolio Architect Annuity, Portfolio Architect Select Annuity, Premier Advisers Annuity (Class I), Premier Advisers Annuity (Class II), MetLife Access Annuity and MetLife Access Select Annuity, Vintage Annuity, Protected Equity Portfolio Annuity, Index Annuity, Vintage XTRA Annuity, Portfolio Architect XTRA Annuity, Vintage XTRA Annuity (Series II), Universal Annuity, Universal Select Annuity, Universal Annuity Advantage, MetLife Retirement Account Annuity, Premier Advisers AssetManager Annuity, Premier Advisers L Annuity, Premier Advisers L Annuity (Series II), Vintage II Annuity and Vintage II Annuity (Series II), Vintage 3 Annuity, Portfolio Architect 3 Annuity, Portfolio Architect L Annuity, Vintage L Annuity, Pioneer AnnuiStar Flex Annuity, Pioneer AnnuiStar Plus Annuity, Portfolio Architect Plus Annuity, Scudder Advocate Rewards Annuity, Pioneer AnnuiStar Annuity, Portfolio Architect II Annuity and Pioneer AnnuiStar Value Annuity, PrimElite Annuity and PrimElite II Annuity, Gold Track Annuity and Gold Track Select Annuity, Marquis Portfolios, Vintage Access Annuity, Portfolio Architect Access Annuity, Scudder Advocate Advisor Annuity and Scudder Advocate Advisor- ST1. and in connection with the combination of separate accounts with and into the MetLife of CT Fund UL for Variable Life Insurance on or about October 13, 2008: - - MetLife of CT Fund UL for Variable Life Insurance (MarketLife, MetLife Variable Survivorship Life, MetLife Variable Life Accumulator and MetLife Variable Life Accumulator- Series 2, MetLife Variable Life, MetLife Variable Survivorship Life II, MetLife Variable Life Accumulator- Series III, Vintage Life, and Portfolio Architect Life.) and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder with or without the others. IN WITNESS WHEREOF, I have hereunto set my hand this 1st day of July, 2008. /s/ Joseph J. Prochaska, Jr. ---------------------------------------- Joseph J. Prochaska, Jr. -----END PRIVACY-ENHANCED MESSAGE-----