485BPOS 1 y75937a2e485bpos.txt NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT AS FILED WITH SECURITIES AND EXCHANGE COMMISSION ON April 21, 2009 Registration Nos. 333-51676 811-08828 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------- FORM N-4 ----------------- REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ] PRE-EFFECTIVE AMENDMENT NO. [ ] POST-EFFECTIVE AMENDMENT NO. 20 [X] and REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ] AMENDMENT NO. 47 [X] (CHECK APPROPRIATE BOX OR BOXES) ----------------- NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT (Exact Name of Registrant) NEW ENGLAND LIFE INSURANCE COMPANY (Name of Depositor) 501 Boylston Street, Boston, Massachusetts 02116 (Address of Depositor's Principal Executive Offices) Depositor's Telephone Number: 617-578-2000 NAME AND ADDRESS OF AGENT FOR SERVICE: Marie C. Swift, Esquire Vice President and Counsel New England Life Insurance Company 501 Boylston Street Boston, Massachusetts 02116-3700 COPY TO: Stephen E. Roth, Esquire Mary E. Thornton, Esquire Sutherland Asbill & Brennan LLP 1275 Pennsylvania Avenue, N.W. Washington, D.C. 20004-2415 It is proposed that this filing will become effective (check appropriate box) [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [X] on May 1, 2009 pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [ ] on (date) pursuant to paragraph (a)(1) of Rule 485 If appropriate, check the following box: [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. Title of Securities Being Registered: Individual Variable Annuity Contracts ================================================================================ AMERICAN FORERUNNER SERIES(R) Individual Flexible Premium Variable Annuity Contracts Issued By New England Variable Annuity Separate Account of Annuity Administrative Office: New England Life Insurance Company P.O. Box 14594 501 Boylston Street Des Moines, IA 50306-3594 Boston, Massachusetts 02116 (800) 435-4117
This prospectus offers individual variable annuity contracts (the "Contracts") for individuals and some qualified and nonqualified retirement plans. You may allocate purchase payments to one or more subaccounts investing in these Eligible Funds of the Metropolitan Series Fund, Inc. ("Metropolitan Fund"), the Met Investors Series Trust and the American Funds Insurance Series. AMERICAN FUNDS INSURANCE SERIES(R) American Funds Bond Fund American Funds Global Small Capitalization Fund American Funds Growth Fund American Funds Growth-Income Fund MET INVESTORS SERIES TRUST BlackRock Large Cap Core Portfolio Clarion Global Real Estate Portfolio Harris Oakmark International Portfolio Janus Forty Portfolio Lazard Mid Cap Portfolio Legg Mason Partners Aggressive Growth Portfolio Legg Mason Value Equity Portfolio Lord Abbett Bond Debenture Portfolio Met/AIM Small Cap Growth Portfolio Met/Franklin Income Portfolio Met/Franklin Mutual Shares Portfolio Met/Templeton Growth Portfolio MFS(R) Research International Portfolio Oppenheimer Capital Appreciation Portfolio PIMCO Inflation Protected Bond Portfolio PIMCO Total Return Portfolio RCM Technology Portfolio T. Rowe Price Mid Cap Growth Portfolio MET INVESTORS SERIES TRUST -- ASSET ALLOCATION PORTFOLIOS American Funds Balanced Allocation Portfolio American Funds Moderate Allocation Portfolio American Funds Growth Allocation Portfolio Met/Franklin Templeton Founding Strategy Portfolio MET INVESTORS SERIES TRUST -- EXCHANGE TRADED FUND ("ETF") PORTFOLIOS SSgA Growth and Income ETF Portfolio SSgA Growth ETF Portfolio METROPOLITAN FUND Artio International Stock Portfolio Barclays Capital Aggregate Bond Index Portfolio BlackRock Aggressive Growth Portfolio BlackRock Bond Income Portfolio BlackRock Diversified Portfolio BlackRock Large Cap Value Portfolio BlackRock Legacy Large Cap Growth Portfolio BlackRock Money Market Portfolio BlackRock Strategic Value Portfolio Davis Venture Value Portfolio FI Mid Cap Opportunities Portfolio FI Value Leaders Portfolio Jennison Growth Portfolio Loomis Sayles Small Cap Core Portfolio Loomis Sayles Small Cap Growth Portfolio Met/Artisan Mid Cap Value Portfolio MetLife Mid Cap Stock Index Portfolio MetLife Stock Index Portfolio MFS(R) Total Return Portfolio MFS(R) Value Portfolio Morgan Stanley EAFE(R) Index Portfolio Neuberger Berman Mid Cap Value Portfolio Oppenheimer Global Equity Portfolio Russell 2000(R) Index Portfolio T. Rowe Price Large Cap Growth Portfolio T. Rowe Price Small Cap Growth Portfolio Western Asset Management Strategic Bond Opportunities Portfolio Western Asset Management U.S. Government Portfolio METROPOLITAN FUND -- ASSET ALLOCATION PORTFOLIOS MetLife Conservative Allocation Portfolio MetLife Conservative to Moderate Allocation Portfolio MetLife Moderate Allocation Portfolio MetLife Moderate to Aggressive Allocation Portfolio MetLife Aggressive Allocation Portfolio You may also allocate purchase payments to a Fixed Account in states that have approved this option. Limits apply to transfers to and from the Fixed Account. MAY 1, 2009 A-1 When you purchase your Contract, you must select one of five Classes of the Contract, each of which has different Withdrawal Charges and Asset-Based Insurance Charges. The five available Classes of the Contract are: -- Standard Class, -- B Plus Class, -- C Class, -- L Class, and -- P Class. If you select the B Plus Class, we will add a bonus amount to each purchase payment received in the first Contract Year. The overall expenses for the B Plus Class Contract may be higher than the expenses for a similar Contract that does not pay a bonus. Over time, the value of the bonus could be more than offset by higher expenses. Please read this prospectus carefully and keep it for reference. This prospectus contains information that you should know before investing. You can obtain a Statement of Additional Information ("SAI") about the Contracts, dated May 1, 2009. The SAI is filed with the Securities and Exchange Commission ("SEC") and is incorporated by reference in this prospectus. The SAI Table of Contents is on page A-- of the prospectus. For a free copy of the SAI, write or call New England Securities Corporation, 501 Boylston St., Boston, Massachusetts 02116, 1-800-777-5897 or visit our website at www.nef.com. NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED THESE CONTRACTS OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE SECURITIES AND EXCHANGE COMMISSION MAINTAINS A WEB SITE THAT CONTAINS THE STATEMENT OF ADDITIONAL INFORMATION, MATERIAL INCORPORATED BY REFERENCE, AND OTHER INFORMATION REGARDING REGISTRANTS THAT FILE ELECTRONICALLY WITH THE SEC. THE ADDRESS OF THE SITE IS HTTP://WWW.SEC.GOV. THE ELIGIBLE FUND PROSPECTUSES ARE ATTACHED. PLEASE READ THEM AND KEEP THEM FOR REFERENCE. WE DO NOT GUARANTEE HOW ANY OF THE SUBACCOUNTS OR ELIGIBLE FUNDS WILL PERFORM. THE CONTRACTS AND THE ELIGIBLE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, ANY FINANCIAL INSTITUTION AND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. MAY 1, 2009 A-2 TABLE OF CONTENTS OF THE PROSPECTUS
PAGE ----- GLOSSARY OF SPECIAL TERMS USED IN THIS PROSPECTUS.................... A-5 HIGHLIGHTS........................................................... A-6 FEE TABLE............................................................ A-12 HOW THE CONTRACT WORKS............................................... A-21 THE COMPANY.......................................................... A-22 THE VARIABLE ACCOUNT................................................. A-22 INVESTMENTS OF THE VARIABLE ACCOUNT.................................. A-22 Investment Advice.................................................. A-28 Certain Payments We Receive with Regard to the Eligible Funds...... A-30 Share Classes of the Eligible Funds................................ A-31 Substitution of Investments........................................ A-31 THE FIXED ACCOUNT.................................................... A-32 THE CONTRACTS........................................................ A-32 Standard Class..................................................... A-32 B Plus Class....................................................... A-32 C Class............................................................ A-33 L Class............................................................ A-33 P Class............................................................ A-33 Purchase Payments.................................................. A-33 Ten Day Right to Review............................................ A-34 Allocation of Purchase Payments.................................... A-34 Contract Value and Accumulation Unit Value......................... A-37 Payment on Death Prior to Annuitization............................ A-37 Standard Death Benefit............................................. A-38 Annual Step-Up Death Benefit....................................... A-38 Greater of Annual Step-Up or 5% Annual Increase Death Benefit...... A-38 Enhanced Death Benefit Rider....................................... A-39 Earnings Preservation Benefit Rider................................ A-41 Options for Death Proceeds......................................... A-42 Transfer Privilege................................................. A-44 Dollar Cost Averaging.............................................. A-47 Asset Rebalancing.................................................. A-48 Withdrawals........................................................ A-48 Systematic Withdrawals............................................. A-49 Suspension of Payments............................................. A-50 Inactive Contracts................................................. A-50 Ownership Rights................................................... A-50 Requests and Elections............................................. A-51 Confirming Transactions............................................ A-52 State Variations................................................... A-52 ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS......................................................... A-52 Asset-Based Insurance Charge....................................... A-52 Contract Administrative Fee........................................ A-53 Withdrawal Charge.................................................. A-53 Enhanced Death Benefit Rider....................................... A-55 Earnings Preservation Benefit Rider................................ A-55
A-3
PAGE ----- Guaranteed Minimum Income Benefit Rider............................ A-55 Guaranteed Withdrawal Benefit Rider................................ A-56 Guaranteed Minimum Accumulation Benefit Rider...................... A-57 Premium and Other Tax Charges...................................... A-57 Other Expenses..................................................... A-58 ANNUITY PAYMENTS..................................................... A-58 Election of Annuity................................................ A-58 Annuity Options.................................................... A-58 Amount of Annuity Payments......................................... A-60 LIVING BENEFITS...................................................... A-61 Overview of Living Benefit Riders.................................. A-61 GUARANTEED INCOME BENEFITS........................................... A-62 Facts About Guaranteed Income Benefit Riders....................... A-62 Description of GMIB Plus II........................................ A-64 Description of GMIB Plus I (formerly, the Predictor Plus).......... A-68 Description of GMIB II (formerly, the Predictor)................... A-70 Description of GMIB I.............................................. A-71 GUARANTEED WITHDRAWAL BENEFITS....................................... A-71 Facts About Guaranteed Withdrawal Benefit Riders................... A-72 Description of the Lifetime Withdrawal Guarantee II................ A-73 Description of the Lifetime Withdrawal Guarantee I................. A-79 Description of the Enhanced Guaranteed Withdrawal Benefit.......... A-80 Description of the Guaranteed Withdrawal Benefit I................. A-84 GUARANTEED MINIMUM ACCUMULATION BENEFIT.............................. A-84 RETIREMENT PLANS OFFERING FEDERAL TAX BENEFITS....................... A-88 FEDERAL INCOME TAX CONSIDERATIONS.................................... A-88 Taxation of Non-Qualified Contracts................................ A-89 Taxation of Qualified Contracts.................................... A-91 Possible Tax Law Changes........................................... A-94 VOTING RIGHTS........................................................ A-95 DISTRIBUTION OF THE CONTRACTS........................................ A-95 THE OPERATION OF THE FIXED ACCOUNT................................... A-96 Contract Value and Fixed Account Transactions...................... A-97 INVESTMENT PERFORMANCE INFORMATION................................... A-97 Yields............................................................. A-98 Standard Return.................................................... A-98 Non-Standard Return................................................ A-98 Other Performance.................................................. A-99 LEGAL PROCEEDINGS.................................................... A-99 FINANCIAL STATEMENTS................................................. A-99 ACCUMULATION UNIT VALUES (Condensed Financial Information)........... A-99 APPENDIX A: Consumer Tips............................................ A-130 APPENDIX B: Withdrawal Charge........................................ A-131 APPENDIX C: Premium Tax.............................................. A-132 APPENDIX D: Guaranteed Minimum Income Benefit Examples............... A-133 APPENDIX E: Guaranteed Withdrawal Benefit Examples................... A-140 APPENDIX F: Enhanced Death Benefit Examples.......................... A-151 TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION............. A-154
A-4 GLOSSARY OF SPECIAL TERMS USED IN THIS PROSPECTUS We have tried to make this prospectus as understandable for you as possible. However, in explaining how the Contract works, we have had to use certain terms that have special meanings. These terms are defined below: ACCOUNT. A subaccount of the Variable Account or the Fixed Account. ACCUMULATION UNIT. An accounting device used to calculate the Contract Value before annuitization. ANNUITANT. The natural person on whose life Annuity Payments are based. ANNUITIZATION. Application of proceeds under the Contract to an annuity option on the Maturity Date or upon an earlier date you choose. ANNUITY DATE. A date on which you choose to begin receiving Annuity Payments which must be at least 30 days after issue. If you do not choose a date, the Annuity Date will be no later than the Maturity Date shown on the Contract Schedule. ANNUITY UNIT. An accounting device used to calculate the dollar amount of Annuity payments. BENEFICIARY. The person designated to receive Death Proceeds under a Contract if a Contract Owner (or Annuitant, if the Contract is not owned by an individual) dies before annuitization of the Contract. CONTRACT YEAR. A twelve month period beginning with the date shown on your Contract and with each Contract Anniversary thereafter. DEATH PROCEEDS (PRIOR TO ANNUITIZATION). The amount we pay, prior to annuitization, on receipt of due proof of the death of a Contract Owner (or of the annuitant if the Contract is not owned by an individual) and election of payment. FIXED ACCOUNT. A part of the Company's general account to which you can allocate net purchase payments. The Fixed Account provides guarantees of principal and interest. GOOD ORDER. A request or transaction generally is considered in "good order" if it complies with our administrative procedures and the required information is complete and accurate. A request or transaction may be rejected or delayed if not in good order. If you have any questions, you should contact us or your sales representative before submitting the form or request. MATURITY DATE. The date on which annuity payments begin, unless you apply the Contract Value to an annuity payment option before then. The Maturity Date is the later of (i) the date when the Annuitant at his or her nearest birthday would be age 95 (or the maximum age permitted by state law, if less), or (ii) 10 years from the issue date. OWNER (CONTRACT OWNER). The person or entity which has all rights under the Contract. PAYEE. Any person or entity entitled to receive payments under the Contract. The term includes (i) an Annuitant, (ii) a Beneficiary or contingent Beneficiary who becomes entitled to death proceeds, and (iii) on full withdrawals or partial withdrawals of the Contract, the Contract Owner. VARIABLE ACCOUNT. A separate investment account of the Company, the New England Variable Annuity Separate Account. The Variable Account is divided into subaccounts; each invests in shares of one Eligible Fund. VARIABLE ANNUITY. An annuity providing for Annuity payments varying in amount to reflect the investment experience of a separate investment account. A-5 HIGHLIGHTS TAX DEFERRED VARIABLE ANNUITIES: Earnings under variable annuities are usually not taxed until paid out. This tax treatment is intended to encourage you to save for retirement. If the owner of a non-qualified annuity contract is not a natural person (e.g., certain trusts) gains under the contract are generally not eligible for tax deferral. THE CONTRACTS: The American Forerunner Series provides for variable annuity payments that begin at the Maturity Date, or earlier if you choose. Variable annuity payments fluctuate with the investment results of the Eligible Funds. (See "Amount of Annuity Payments.") We offer other variable annuity contracts that have different death benefits, contract features, fund selections, and optional programs. However, these other contracts also have different charges that would affect your subaccount performance and contract values. To obtain more information about these other contracts, contact our Annuity Administrative Office or your registered representative. The Contract allows you to select one of several different charge structures, each referred to as a Class, based on your specific situation. Each Class imposes varying levels of Withdrawal Charges and Asset-Based Insurance Charges. Depending on your expectations and preferences, you can choose the Class that best meets your needs. Prior to issuance, you must select one of five available Classes of the Contract: -- Standard Class, which imposes a Withdrawal Charge on withdrawals equal to a maximum of 7% of each purchase payment, reducing annually over 7 years, and an Asset-Based Insurance Charge; -- B Plus Class (which may be referred to as the "Bonus Class"), which credits a bonus amount to purchase payments received in the first Contract Year, imposes a higher Withdrawal Charge (maximum 9%) over a longer period of time (9 years), and imposes a relatively higher Asset-Based Insurance Charge during the Withdrawal Charge period; -- C Class, which does not impose any Withdrawal Charge on withdrawals, but imposes a relatively higher Asset-Based Insurance Charge; -- L Class, which reduces the period of time (3 years) that a Withdrawal Charge (maximum 7%) applies on withdrawals, but imposes a relatively higher Asset-Based Insurance Charge; and -- P Class, which lengthens the period of time (9 years) that a Withdrawal Charge (maximum 8%) is imposed on withdrawals, and imposes a relatively lower Asset-Based Insurance Charge. For the B Plus Class, you should know that over time and under certain circumstances (such as withdrawal during the last few years that a Withdrawal Charge applies, or after an extended period of poor market performance), the costs associated with the B Plus Class may exceed the bonus amount and any related earnings. You should consider this possibility before purchasing a B Plus Class Contract. A-6 Your financial representative can help you decide which Class is best for you. The following chart shows in graphic form the relative levels of the Withdrawal Charge and Asset-Based Insurance Charge under each Class: Relationship of Withdrawal Charges to Asset-Based Insurance Charges for Each Class of Contract [GRAPH] For actual expenses of each Class, see the Fee Table on page A-12. PURCHASE PAYMENTS: Currently, the minimum initial and subsequent purchase payments are as follows (exceptions may apply):
CLASS INITIAL SUBSEQUENT ----- ------- ---------- Standard, P................................ $ 5,000(nonqualified plans) $500 $ 2,000(qualified plans) C,L........................................ $25,000 $500 B Plus..................................... $10,000 $500
We may limit the purchase payments you can make. In addition, you may not make a purchase payment (1) within the seven years before the Contract's Maturity Date for the Standard Class, nine years for the P Class and the B Plus Class, and three years for the L Class, or (2) after a Contract Owner (or the Annuitant, if the Contract is not owned by an individual) reaches age 91. For joint Contract Owners, you may not make a purchase payment after the older Contract Owner reaches age 86. (See "Purchase Payments.") OWNERSHIP: The Owner of the Contract can be a natural person, a trust established for the exclusive benefit of a natural person, a charitable remainder trust or other trust arrangement (if approved by us). The Owner of the Contract can also be a beneficiary of a deceased person's contract that is an Individual Retirement Account or non-qualified A-7 deferred annuity. The Contract is not available to corporations or other business organizations, except to the extent an employer is the purchaser of a simplified employee pension plan ("SEP") under paragraph 408(k) of the Internal Revenue Code ("the Code") and a Simple Retirement Account ("SIMPLE IRA") under paragraph 408(p) of the Code. A contract generally may have two owners (both of whom must be individuals). Subject to state approval, certain retirement plans qualified under the Internal Revenue Code ("the Code") may purchase the Contract. FOR ANY TAX QUALIFIED ACCOUNT (E.G. INDIVIDUAL RETIREMENT ACCOUNTS), THE TAX DEFERRED ACCRUAL FEATURE IS PROVIDED BY THE TAX QUALIFIED RETIREMENT PLAN. THEREFORE, THERE SHOULD BE REASONS OTHER THAN TAX DEFERRAL FOR ACQUIRING AN ANNUITY CONTRACT WITHIN A QUALIFIED PLAN. For contract transactions, we rely on instructions from Contract Owners, whether a trustee or custodian of an eligible retirement plan or an individual owner. INVESTMENT OPTIONS: You may allocate purchase payments to the subaccounts or to the Fixed Account. The Fixed Account is not available to Contracts purchased on or after May 1, 2003 for which the C Class has been selected. The Fixed Account is also not available to Contracts purchased in New York on or after May 1, 2003 if the optional Guaranteed Minimum Income Benefit or a Guaranteed Withdrawal Benefit or Lifetime Withdrawal Guarantee is selected. If you elect to purchase the GMIB Plus II or GMIB Plus I Guaranteed Minimum Income Benefit, the Lifetime Withdrawal Guarantee II or Lifetime Withdrawal Guarantee I, the Guaranteed Minimum Accumulation Benefit, or the Enhanced Death Benefit, you are limited to allocating your purchase payment and Contract Value as described in "THE CONTRACTS--Investment Allocation Restrictions for Certain Riders." If you use Enhanced Dollar Cost Averaging ("EDCA"), you also may allocate your purchase payments and Contract Value to the EDCA Guaranteed Account (provided your EDCA destination portfolios are one of the permitted Subaccounts). You can allocate your Contract Value among the subaccounts and the Fixed Account as you choose any time (subject to limitation). You may not choose more than 18 subaccounts (including the Fixed Account) at the time you submit your initial purchase payment. If you wish to allocate a subsequent purchase payment to more than 18 subaccounts (including the Fixed Account), we must have your request to allocate future purchase payments to more than 18 subaccounts on record before we can apply your subsequent payment to your chosen allocation. You must allocate a minimum of $500 dollars to each account you select. However, for individual retirement annuities, individual retirement accounts and Roth Individual Retirement Accounts, if purchase payments are less than $2,000, then you may allocate the payment to a maximum of four subaccounts. You can change your purchase payment allocation (unless you elect to purchase the optional Guaranteed Minimum Accumulation Benefit). We believe that under current tax law you can transfer Contract Value between accounts without federal income tax. We reserve the right to limit transfers and charge a transfer fee. Currently, we do not charge a transfer fee or limit the number of transfers, but we do apply special limits to "market timing." (See "Transfer Privilege--Market Timing.") The minimum transfer amount is currently $500, unless we have agreed otherwise. Special limits may apply to transfers to and from the Fixed Account. (See "THE FIXED ACCOUNT.") The maximum transfer amount is $500,000 for each transaction. CHARGES: We apply the following charges to your Contract: -- premium tax charge, in some states. -- asset-based insurance charge at an annual rate ranging from 1.15% to 1.95% of the Variable Account's daily net assets depending upon the Class and death benefit option you select (these amounts increase by 0.25% for subaccounts investing in the American Funds Insurance Series). -- annual contract administrative fee of $30 during the accumulation phase and pro rata at annuitization (if the Contract Value is less than $50,000). A-8 -- except for C Class, Withdrawal Charge that varies by Class (maximum of 9% of each purchase payment made) on certain full and partial withdrawals and certain annuitization transactions. -- for Contracts with a Guaranteed Minimum Income Benefit Rider, a fee of 1.00% for the GMIB Plus II, 0.80% for GMIB Plus I, or 0.50% for GMIB II or GMIB I, imposed on the Income Base annually in arrears on each Contract Anniversary prior to annuitization (up to a maximum fee of 1.50% of the Income Base upon Optional Reset for GMIB Plus I or GMIB Plus II). -- for Contracts with the Guaranteed Withdrawal Benefit Rider, a fee of 0.50% of the Guaranteed Withdrawal Amount (up to a maximum fee of 0.95% of the Guaranteed Withdrawal Amount upon Optional Reset). -- for Contracts with the Enhanced Guaranteed Withdrawal Benefit Rider, a fee of 0.55% of the Guaranteed Withdrawal Amount (up to a maximum fee of 1.00% upon Optional Reset). -- for Contracts with a Guaranteed Minimum Accumulation Benefit Rider, a fee of 0.75% of the Guaranteed Accumulation Amount. -- for Contracts with an Earnings Preservation Benefit Rider, a fee of 0.25% deducted daily from subaccount assets prior to annuitization. -- for Contracts with a Lifetime Withdrawal Guarantee Benefit I rider, a fee of 0.50% of the Total Guaranteed Withdrawal Amount (up to a maximum of 0.95% if an Automatic Annual Step-Up occurs) for the Single Life version, and a fee of 0.70% of the Total Guaranteed Withdrawal Amount (up to a maximum of 1.40% if an Automatic Annual Step-Up occurs) for the Joint Life version. -- for Contracts with a Lifetime Withdrawal Guarantee II Benefit rider, a fee of 1.25% of the Total Guaranteed Withdrawal Amount (up to a maximum of 1.60% if an Automatic Annual Step-Up occurs) for the Single Life version, and a fee of 1.50% of the Total Guaranteed Withdrawal Amount (up to a maximum of 1.80% if an Automatic Annual Step-Up occurs) for the Joint Life version. -- for Contracts with an Enhanced Death Benefit rider, a fee of 0.75% (issue age 0-69) or 0.95% (issue age 70-75 of the death benefit base (up to a maximum of 1.50% if an Optional Step-Up occurs). Certain waivers or reductions may apply. (See "ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS.") We do not deduct a sales charge from purchase payments. For information concerning compensation paid for the sale of contracts, see "Distribution of the Contracts." TEN DAY RIGHT TO REVIEW: After you receive the Contract, you have ten days (more in some states) to return it to us or our agent for cancellation. We will return the Contract Value (or, in certain states, your purchase payments). PAYMENT ON DEATH: If a Contract Owner (or the Annuitant, if the Contract is not owned by an individual) dies before annuitization, the Beneficiary receives a death benefit. You will receive the Standard Death Benefit unless you chose to receive one of three optional death benefits--the Annual Step-Up Death Benefit, the Greater of Annual Step-Up or 5% Annual Increase Death Benefit or the Enhanced Death Benefit. The first two optional death benefits will increase the Asset-Based Insurance Charge applicable to your Contract. You may also elect to purchase, for an additional charge, the Earnings Preservation Benefit Rider, which provides an additional death benefit to assist with covering income taxes payable at death. A-9 The Standard Death Benefit equals the greater of the current Contract Value or total purchase payments less a pro rata reduction for partial withdrawals. The Annual Step-Up Death Benefit equals the greater of current Contract Value or the greatest Contract Value on any prior anniversary plus subsequent purchase payments, less a pro rata reduction for subsequent withdrawals. The Greater of Annual Step-Up or 5% Annual Increase Death Benefit equals the greatest of: current Contract Value; purchase payments (less prior withdrawals) accumulated at an annual rate of 5%; or the greatest Contract Value on any prior anniversary plus subsequent purchase payments, less a pro rata reduction for subsequent withdrawals. The Enhanced Death Benefit equals the greatest of: (1) current Contract Value, (2) total purchase payments (adjusted for withdrawals) accumulated at 5% per year, or (3) the highest Contract Value on any Contract Anniversary (adjusted for withdrawals). Death Proceeds are taxable and generally are included in the income of the recipient as follows: -- If received under an annuity payment option, they are taxed in the same manner as annuity payments. -- If distributed in a lump sum, they are taxed in the same manner as a full withdrawal. WITHDRAWALS: Before annuitization you can send us a written request to withdraw all or part of your Contract Value. After a partial withdrawal, the remaining Contract Value must be at least $2,000. Currently, a partial withdrawal must be at least $500. A withdrawal may be subject to federal income tax and federal tax laws penalize and may prohibit certain premature distributions from the Contract. (See "FEDERAL INCOME TAX CONSIDERATIONS.") You may also elect to purchase for an additional charge, a Guaranteed Withdrawal Benefit Rider ("GWB") or a Lifetime Withdrawal Guarantee Rider, which guarantees the return of your purchase payments over time (subject to the requirements of the rider). A Withdrawal Charge will apply to certain full and partial withdrawals and certain annuitization transactions for Standard, B Plus, L and P Class Contracts. On full withdrawals the annual contract administrative fee will be deducted. No Withdrawal Charge applies to C Class Contracts. We reserve the right to deduct a premium tax charge on full and partial withdrawals in some states. On a Standard, B Plus, L, or P Class Contract in any Contract Year you can make a withdrawal of a portion of your purchase payments free from any Withdrawal Charge (the "free withdrawal amount"). In the first Contract Year, no free withdrawal amount is available unless it is part of a monthly or quarterly systematic withdrawal program in which the monthly withdrawal amount does not exceed 1/12 of 10% of total purchase payments or the quarterly amount does not exceed 1/4 of 10% of total purchase payments. After the first Contract Year, the annual free withdrawal amount is equal to 10% of total purchase payments, less the total free withdrawal amount previously withdrawn in the same Contract Year. Earnings may be withdrawn at any time, free from any Withdrawal Charge. REPLACEMENT OF CONTRACTS EXCHANGE PROGRAMS. From time to time we may offer programs under which certain fixed or variable annuity contracts previously issued by us or one of our affiliates may be exchanged for the Contracts offered by this prospectus. Currently, with respect to exchanges from certain of our variable annuity contracts to this Contract, an existing contract is eligible for exchange if a withdrawal from, or surrender of, the contract would not trigger a Withdrawal Charge. The account value of this Contract attributable to the exchanged assets will not be subject to any Withdrawal Charge or be eligible for the Enhanced Dollar Cost Averaging (EDCA) program. Any additional purchase payments contributed to the new Contract will be subject to all fees and charges, including the Withdrawal Charge described in this prospectus. You should carefully consider whether an exchange is appropriate for you by comparing the death benefits, living benefits, and other guarantees provided by the contract you currently own to the benefits and guarantees that would be provided by the new Contract offered by this prospectus. Then, you should compare the fees and charges (e.g., the death benefit charges, the living benefit charges, and the mortality and expense charge) of your current contract to the fees and charges of the new Contract, which may be higher than your current contract. The programs we offer will be made available on terms and conditions determined by us, and any such programs will comply with applicable law. We believe the exchanges will be tax-free for federal income tax purposes; however, you should consult your tax adviser before making any such exchange. A-10 OTHER EXCHANGES. Generally you can exchange one variable annuity contract for another in a tax-free exchange under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both annuities carefully. If you exchange another annuity for the one described in this prospectus, unless the exchange occurs under one of our exchange programs as described above, you might have to pay a surrender charge on your old annuity and there will be a new surrender charge period for this contract. Other charges might be higher (or lower) and the benefits may be different. Also, because we will not issue the new annuity Contract until we have received the initial premium from your existing insurance company, the issuance of the Contract may be delayed. Generally, it is not advisable to purchase a Contract as a replacement for an existing variable annuity contract. Before you exchange another annuity for our Contract, ask your registered representative whether the exchange would be advantageous, given the contract features, benefits and charges. A-11 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 cash value between Eligible Fund options. State premium taxes of 0% to 3.5% may also be deducted. See "ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS--Premium and Other Tax Charges" for more information. CONTRACT OWNER TRANSACTION EXPENSES Sales Charge Imposed on Purchase Payments........ None Withdrawal Charge (as a percentage of each 9% declining purchase payment).............................. annually -- see Note (1) Transfer Fee(2).................................. $25
NOTES: (1) The Withdrawal Charge is a declining percentage of each purchase payment and varies by Contract Class, as follows:
NUMBER OF COMPLETE YEARS FROM RECEIPT OF STANDARD CLASS B PLUS CLASS L CLASS P CLASS C CLASS PURCHASE PAYMENT CHARGE CHARGE CHARGE CHARGE CHARGE ------------------------------ -------------- ------------ ------- ------- ------- 0.................................. 7% 9% 7% 8% None 1.................................. 6% 8% 6% 8% 2.................................. 6% 8% 5% 8% 3.................................. 5% 7% 0% 7% 4.................................. 4% 6% 0% 6% 5.................................. 3% 5% 0% 5% 6.................................. 2% 4% 0% 4% 7.................................. 0% 2% 0% 3% 8.................................. 0% 2% 0% 2% 9 and thereafter................... 0% 0% 0% 0%
(2) Currently, we do not charge this fee. We reserve the right to limit the number and dollar amount of transfers and impose a transfer fee of up to $25. We will not restrict transfers to less than 12 per Contract Year. The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Eligible Fund fees and expenses. VARIABLE ACCOUNT ANNUAL EXPENSES* (as a percentage of average daily net assets in the subaccounts) Asset-Based Insurance Charge for all subaccounts except the American Funds Bond, American Funds Growth, American Funds Growth-Income, and American Funds Global Small Capitalization Subaccounts(1)
DEATH BENEFIT:** STANDARD CLASS B PLUS CLASS(2) C CLASS L CLASS P CLASS ---------------- -------------- --------------- ------- ------- ------- Standard Death Benefit............. 1.25% 1.60% 1.60% 1.50% 1.15% Annual Step-Up Death Benefit....... 1.45% 1.80% 1.80% 1.70% 1.35% Greater of Annual Step-Up or 5% Annual Increase Death Benefit.... 1.60% 1.95% 1.95% 1.85% 1.50%
A-12 Asset-Based Insurance Charge for the American Funds Bond, American Funds Growth, American Funds Growth-Income, and American Funds Global Small Capitalization Subaccounts(1)
DEATH BENEFIT:** STANDARD CLASS B PLUS CLASS(2) C CLASS L CLASS P CLASS ---------------- -------------- --------------- ------- ------- ------- Standard Death Benefit............. 1.50% 1.85% 1.85% 1.75% 1.40% Annual Step-Up Death Benefit....... 1.70% 2.05% 2.05% 1.95% 1.60% Greater of Annual Step-Up or 5% Annual Increase Death Benefit.... 1.85% 2.20% 2.20% 2.10% 1.75% Earnings Preservation Benefit Rider(3).................................................... 0.25%
OTHER CONTRACT FEES Annual Contract Administrative Fee(4).... $30 OPTIONAL BENEFIT RIDERS+ Enhanced Death Benefit Rider (issue age 0-69)(5)............................... Maximum Guaranteed Charge: 1.50% Current Charge: 0.75% Enhanced Death Benefit Rider (issue age 70-75)(5).............................. Maximum Guaranteed Charge: 1.50% Current Charge: 0.95% Guaranteed Minimum Income Benefit (GMIB Plus II)(6)............................ Maximum Guaranteed Charge: 1.50% Current Charge: 1.00% Guaranteed Minimum Income Benefit (GMIB Plus I)(6)............................. Maximum Guaranteed Charge: 1.50% Current Charge: 0.80% Guaranteed Minimum Income Benefit (GMIB II or GMIB I)(6)....................... Current Charge: 0.50% Guaranteed Withdrawal Benefit(7)......... Maximum Guaranteed Charge: 0.95% Current Charge: 0.50% Enhanced Guaranteed Withdrawal Benefit(7)............................. Maximum Guaranteed Charge: 1.00% Current Charge: 0.55% Lifetime Withdrawal Guarantee II Benefit (Single Life Version)(8)............... Maximum Guaranteed Charge: 1.60% Current Charge: 1.25% Lifetime Withdrawal Guarantee II Benefit (Joint Life Version)(8)................ Maximum Guaranteed Charge: 1.80% Current Charge: 1.50% Lifetime Withdrawal Guarantee I Benefit (Single Life version)(8)............... Maximum Guaranteed Charge: 0.95% Current Charge: 0.50% Lifetime Withdrawal Guarantee I Benefit (Joint Life version)(8)................ Maximum Guaranteed Charge: 1.40% Current Charge: 0.70% Guaranteed Minimum Accumulation Benefit(9)............................. Current Charge: 0.75%
NOTES: * We are waiving the Asset Based Insurance Charge in the amount of 0.08% for the Subaccount investing in the BlackRock Large Cap Core Portfolio. ** Please see "Optional Benefit Riders" below for an additional optional death benefit rider, the Enhanced Death Benefit, for which the charge is assessed on the death benefit base and deducted annually from your Contract Value. + You may only elect one living benefit rider at a time. Certain riders are no longer available for purchase. (See "Living Benefits.") The GMIB Plus II rider is the only living benefit rider that may be elected with the Enhanced Death Benefit rider. (1) For Contracts issued prior to May 1, 2003, the Asset-Based Insurance Charge for the Annual Step-Up Death Benefit and the Greater of Annual Step-Up or 5% Annual Increase Death Benefit is 0.10% lower than what is described in the table. After annuitization, the amount of the Asset-Based Insurance Charge for each Class will be the charge that would apply for the standard death benefit; except that for the B Plus Class and the P Class, the Asset-Based Insurance Charge will be 1.25% after annuitization (1.50% for the American Funds Bond, American Funds Growth, American Funds Growth-Income, and American Funds Global Small Capitalization Subaccounts). We reserve the right to impose an A-13 increased Asset-Based Insurance Charge on other subaccounts that we add to the Contract in the future. The increase will not exceed the annual rate of 0.25% of average daily net assets in any such subaccounts. (2) The Asset-Based Insurance Charge will be reduced on the B Plus Class by 0.35% after the expiration of the 9-year Withdrawal Charge period. (3) The charge for the Earnings Preservation Benefit Rider will not be assessed after annuitization. (4) We will also deduct this fee on full withdrawal (regardless of contract size) and pro rata on annuitization. This fee will not be deducted during the accumulation period or on annuitization for Contracts with a Contract Value of $50,000 or more. We reserve the right to deduct this fee during the Annuity Period, pro rata from each annuity payment. (5) The death benefit base is initially set at an amount equal to your initial purchase payment. The death benefit base is adjusted for subsequent purchase payments and withdrawals. See "THE CONTRACTS -- Enhanced Death Benefit" for a definition of the term death benefit base. Different charges for the Enhanced Death Benefit were in effect prior to May 4, 2009. (6) For Contracts issued in New York State only, the GMIB Plus II rider charge is 0.95%. The GMIB Plus II, GMIB Plus I, GMIB II and GMIB I rider charge is imposed on the Income Base annually in arrears on each Contract Anniversary. The rider charge is deducted pro rata from each subaccount, the Fixed Account and the EDCA Guaranteed Account. The Income Base is based on the greater of premiums accumulated with interest and the greatest anniversary value for the Contract, subject to certain limitations. The charge for the Guaranteed Minimum Income Benefit will not be assessed after annuitization. If you elect an Optional Reset of the Guaranteed Minimum Income Benefit, as permitted under GMIB Plus II or GMIB Plus I, we may increase the Guaranteed Minimum Income Benefit charge to the then current charge applicable to the same rider, but no more than the maximum of 1.50% of the Income Base. Different charges for GMIB II and GMIB I were in effect prior to May 1, 2005. Different charges for GMIB Plus I were in effect prior to February 26, 2007. Different charges for GMIB Plus II were in effect prior to February 24, 2009. See "GUARANTEED INCOME BENEFITS" for more information. (7) The Guaranteed Withdrawal Benefit rider charge is imposed on the Guaranteed Withdrawal Amount annually in arrears on each Contract Anniversary. The rider charge is deducted pro rata from each subaccount, the Fixed Account and the EDCA Guaranteed Account. The Guaranteed Withdrawal Amount initially equals your purchase payments (and any applicable GWB Bonus Amount). If you elect an Optional Reset as permitted under this benefit, we may increase the Guaranteed Withdrawal Benefit charge to the then current charge applicable to the same rider, but no more than the maximum percentage of the Guaranteed Withdrawal Amount stated above. Different charges for Enhanced Guaranteed Withdrawal Benefit were in effect prior to July 16, 2007. See "GUARANTEED WITHDRAWAL BENEFITS" for more information. (8) The Lifetime Withdrawal Guarantee rider charge is imposed on the Total Guaranteed Withdrawal Amount annually in arrears on each Contract Anniversary. The rider charge is deducted pro rata from each subaccount, the Fixed Account and the EDCA Guaranteed Account. The Total Guaranteed Withdrawal Amount initially equals your initial Purchase Payments. If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee, we may increase the Lifetime Guaranteed Withdrawal rider charge to the then current charge applicable to the same rider, but no more than the maximum percentage of the Total Guaranteed Withdrawal Amount stated above. Different charges for LWG II were in effect prior to February 24, 2009. See "GUARANTEED WITHDRAWAL BENEFITS" for more information. (9) The Guaranteed Minimum Accumulation Benefit Rider Charge is imposed on the Guaranteed Accumulation Amount annually in arrears on each Contract Anniversary. The rider charge is deducted pro rata from the Asset Allocation subaccount and the EDCA Guaranteed Account. The Guaranteed Accumulation Amount equals a percentage of the purchase payments you made during the first 120 days that you held the Contract, less reductions for any withdrawals (and related Withdrawal Charges) that you made at any time before the Rider Maturity Date. The percentage of purchase payments made that determines the guaranteed amount range from 110% to 130%, depending on the Asset Allocation subaccount you selected. See "GUARANTEED MINIMUM ACCUMULATION BENEFIT" for more information. The next item shows the minimum and maximum total operating expenses charged by the Eligible Funds that you may pay periodically during the time that you own the Contract. More detail concerning each Eligible Fund's fees and expenses is contained below and in the prospectus for each Eligible Fund. RANGE OF ELIGIBLE FUND OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS)
MINIMUM MAXIMUM ------- ------- Total Annual Eligible Fund Operating Expenses* (expenses that are deducted from Eligible Fund assets, including management fees, distribution (12b-1) fees, and other expenses)...................................................... 0.53% 1.60%
NOTE: * The minimum operating expenses do not take into consideration any portfolio of the American Funds Insurance Series, for which an additional Asset-Based Insurance charge applies. The range of Total Annual Eligible Fund Operating Expenses does not take into account contractual arrangements for certain Eligible Funds that require the investment adviser to reimburse or waive Eligible Fund operating expenses, as described in more detail below. The following table shows the annual operating expenses for each Eligible Fund for the year ended December 31, 2008, before and after any applicable contractual expense subsidy or expense deferral arrangement: ANNUAL ELIGIBLE FUND OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS) (1)
ACQUIRED TOTAL CONTRACTUAL FEE NET TOTAL FUND FEES ANNUAL WAIVER AND/OR ANNUAL MANAGEMENT 12B-1 OTHER AND OPERATING EXPENSE OPERATING FEE FEES EXPENSES EXPENSES* EXPENSES REIMBURSEMENT EXPENSES(2) ---------- ----- -------- --------- --------- --------------- ----------- AMERICAN FUNDS INSURANCE SERIES(R)(3) American Funds Bond Fund.......... 0.39% 0.25% 0.01% -- 0.65% -- 0.65%
A-14
ACQUIRED TOTAL CONTRACTUAL FEE NET TOTAL FUND FEES ANNUAL WAIVER AND/OR ANNUAL MANAGEMENT 12B-1 OTHER AND OPERATING EXPENSE OPERATING FEE FEES EXPENSES EXPENSES* EXPENSES REIMBURSEMENT EXPENSES(2) ---------- ----- -------- --------- --------- --------------- ----------- American Funds Global Small Capitalization Fund............. 0.71% 0.25% 0.03% -- 0.99% -- 0.99% American Funds Growth Fund........ 0.32% 0.25% 0.01% -- 0.58% -- 0.58% American Funds Growth-Income Fund............................ 0.27% 0.25% 0.01% -- 0.53% -- 0.53% MET INVESTORS SERIES TRUST(3) BlackRock Large Cap Core Portfolio....................... 0.58% 0.25% 0.04% -- 0.87% -- 0.87% Clarion Global Real Estate Portfolio....................... 0.63% 0.25% 0.05% -- 0.93% -- 0.93% Harris Oakmark International Portfolio Class B............... 0.78% 0.25% 0.07% -- 1.10% -- 1.10% Harris Oakmark International Portfolio Class E............... 0.78% 0.15% 0.07% -- 1.00% -- 1.00% Janus Forty Portfolio............. 0.64% 0.25% 0.04% -- 0.93% -- 0.93% Lazard Mid Cap Portfolio(4)....... 0.69% 0.25% 0.05% -- 0.99% -- 0.99% Legg Mason Partners Aggressive Growth Portfolio................ 0.63% 0.25% 0.02% -- 0.90% -- 0.90% Legg Mason Value Equity Portfolio Class B......................... 0.63% 0.25% 0.04% -- 0.92% -- 0.92% Legg Mason Value Equity Portfolio Class E......................... 0.63% 0.15% 0.04% -- 0.82% -- 0.82% Lord Abbett Bond Debenture Portfolio....................... 0.50% 0.25% 0.03% -- 0.78% -- 0.78% Met/AIM Small Cap Growth Portfolio....................... 0.86% 0.25% 0.03% -- 1.14% -- 1.14% Met/Franklin Income Portfolio(5).. 0.80% 0.25% 0.23% -- 1.28% 0.02% 1.26% Met/Franklin Mutual Shares Portfolio(6).................... 0.80% 0.25% 0.55% -- 1.60% 0.45% 1.15% Met/Templeton Growth Portfolio(7).................... 0.70% 0.25% 0.59% -- 1.54% 0.47% 1.07% MFS(R) Research International Portfolio....................... 0.70% 0.25% 0.06% -- 1.01% -- 1.01% Oppenheimer Capital Appreciation Portfolio....................... 0.59% 0.25% 0.04% -- 0.88% -- 0.88% PIMCO Inflation Protected Bond Portfolio....................... 0.49% 0.25% 0.04% -- 0.78% -- 0.78% PIMCO Total Return Portfolio...... 0.48% 0.25% 0.05% -- 0.78% -- 0.78% RCM Technology Portfolio.......... 0.88% 0.25% 0.09% -- 1.22% -- 1.22% T. Rowe Price Mid Cap Growth Portfolio....................... 0.75% 0.25% 0.03% -- 1.03% -- 1.03% MET INVESTORS SERIES TRUST -- ASSET ALLOCATION PORTFOLIOS(3) American Funds Balanced Allocation Portfolio(8).................... 0.10% 0.55% 0.05% 0.40% 1.10% 0.05% 1.05% American Funds Moderate Allocation Portfolio(8).................... 0.10% 0.55% 0.05% 0.42% 1.12% 0.05% 1.07% American Funds Growth Allocation Portfolio(8).................... 0.10% 0.55% 0.05% 0.38% 1.08% 0.05% 1.03% Met/Franklin Templeton Founding Strategy Portfolio(9)........... 0.05% 0.25% 0.08% 0.89% 1.27% 0.08% 1.19% MET INVESTORS SERIES TRUST -- ETF PORTFOLIOS(3) SSgA Growth and Income ETF Portfolio(10)................... 0.33% 0.25% 0.08% 0.20% 0.86% 0.03% 0.83% SSgA Growth ETF Portfolio(11)..... 0.33% 0.25% 0.08% 0.21% 0.87% 0.03% 0.84% METROPOLITAN FUND(3) Artio International Stock Portfolio Class B(12)........... 0.82% 0.25% 0.13% -- 1.20% 0.03% 1.17%
A-15
ACQUIRED TOTAL CONTRACTUAL FEE NET TOTAL FUND FEES ANNUAL WAIVER AND/OR ANNUAL MANAGEMENT 12B-1 OTHER AND OPERATING EXPENSE OPERATING FEE FEES EXPENSES EXPENSES* EXPENSES REIMBURSEMENT EXPENSES(2) ---------- ----- -------- --------- --------- --------------- ----------- Artio International Stock Portfolio Class E(12)........... 0.82% 0.15% 0.13% -- 1.10% 0.03% 1.07% Barclays Capital Aggregate Bond Index Portfolio(13)............. 0.25% 0.25% 0.04% -- 0.54% 0.01% 0.53% BlackRock Aggressive Growth Portfolio....................... 0.72% 0.25% 0.05% -- 1.02% -- 1.02% BlackRock Bond Income Portfolio(14)................... 0.38% 0.25% 0.05% -- 0.68% 0.01% 0.67% BlackRock Diversified Portfolio... 0.45% 0.25% 0.04% -- 0.74% -- 0.74% BlackRock Large Cap Value Portfolio Class B............... 0.67% 0.25% 0.05% -- 0.97% -- 0.97% BlackRock Large Cap Value Portfolio Class E............... 0.67% 0.15% 0.05% -- 0.87% -- 0.87% BlackRock Legacy Large Cap Growth Portfolio Class B(15)........... 0.73% 0.25% 0.05% -- 1.03% 0.01% 1.02% BlackRock Legacy Large Cap Growth Portfolio Class E(15)........... 0.73% 0.15% 0.05% -- 0.93% 0.01% 0.92% BlackRock Money Market Portfolio(16)................... 0.32% 0.25% 0.02% -- 0.59% 0.01% 0.58% BlackRock Strategic Value Portfolio Class B............... 0.84% 0.25% 0.05% -- 1.14% -- 1.14% BlackRock Strategic Value Portfolio Class E............... 0.84% 0.15% 0.05% -- 1.04% -- 1.04% Davis Venture Value Portfolio Class B(17)..................... 0.70% 0.25% 0.03% -- 0.98% 0.04% 0.94% Davis Venture Value Portfolio Class E(17)..................... 0.70% 0.15% 0.03% -- 0.88% 0.04% 0.84% FI Mid Cap Opportunities Portfolio....................... 0.68% 0.25% 0.07% -- 1.00% -- 1.00% FI Value Leaders Portfolio Class B............................... 0.65% 0.25% 0.06% -- 0.96% -- 0.96% FI Value Leaders Portfolio Class E............................... 0.65% 0.15% 0.06% -- 0.86% -- 0.86% Jennison Growth Portfolio Class B............................... 0.63% 0.25% 0.04% -- 0.92% -- 0.92% Jennison Growth Portfolio Class E............................... 0.63% 0.15% 0.04% -- 0.82% -- 0.82% Loomis Sayles Small Cap Core Portfolio Class B(18)........... 0.90% 0.25% 0.06% -- 1.21% 0.05% 1.16% Loomis Sayles Small Cap Core Portfolio Class E(18)........... 0.90% 0.15% 0.06% -- 1.11% 0.05% 1.06% Loomis Sayles Small Cap Growth Portfolio(19)................... 0.90% 0.25% 0.13% -- 1.28% 0.06% 1.22% Met/Artisan Mid Cap Value Portfolio Class B............... 0.81% 0.25% 0.04% -- 1.10% -- 1.10% Met/Artisan Mid Cap Value Portfolio Class E............... 0.81% 0.15% 0.04% -- 1.00% -- 1.00% MetLife Mid Cap Stock Index Portfolio(13)................... 0.25% 0.25% 0.08% -- 0.58% 0.01% 0.57% MetLife Stock Index Portfolio(13)................... 0.25% 0.25% 0.04% -- 0.54% 0.01% 0.53% MFS(R) Total Return Portfolio..... 0.53% 0.25% 0.05% -- 0.83% -- 0.83% MFS(R) Value Portfolio Class B(20)........................... 0.72% 0.25% 0.08% -- 1.05% 0.07% 0.98% MFS(R) Value Portfolio Class E(20)........................... 0.72% 0.15% 0.08% -- 0.95% 0.07% 0.88% Morgan Stanley EAFE(R) Index Portfolio(21)................... 0.30% 0.25% 0.12% 0.01% 0.68% 0.01% 0.67%
A-16
ACQUIRED TOTAL CONTRACTUAL FEE NET TOTAL FUND FEES ANNUAL WAIVER AND/OR ANNUAL MANAGEMENT 12B-1 OTHER AND OPERATING EXPENSE OPERATING FEE FEES EXPENSES EXPENSES* EXPENSES REIMBURSEMENT EXPENSES(2) ---------- ----- -------- --------- --------- --------------- ----------- Neuberger Berman Mid Cap Value Portfolio....................... 0.65% 0.25% 0.04% -- 0.94% -- 0.94% Oppenheimer Global Equity Portfolio....................... 0.52% 0.25% 0.09% -- 0.86% -- 0.86% Russell 2000(R) Index Portfolio(13)................... 0.25% 0.25% 0.07% 0.01% 0.58% 0.01% 0.57% T. Rowe Price Large Cap Growth Portfolio....................... 0.60% 0.25% 0.07% -- 0.92% -- 0.92% T. Rowe Price Small Cap Growth Portfolio....................... 0.51% 0.25% 0.08% -- 0.84% -- 0.84% Western Asset Management Strategic Bond Opportunities Portfolio Class B......................... 0.60% 0.25% 0.05% -- 0.90% -- 0.90% Western Asset Management Strategic Bond Opportunities Portfolio Class E......................... 0.60% 0.15% 0.05% -- 0.80% -- 0.80% Western Asset Management U.S. Government Portfolio Class B.... 0.48% 0.25% 0.04% -- 0.77% -- 0.77% Western Asset Management U.S. Government Portfolio Class E.... 0.48% 0.15% 0.04% -- 0.67% -- 0.67% METROPOLITAN FUND -- ASSET ALLOCATION PORTFOLIOS(3) MetLife Conservative Allocation Portfolio(22)................... 0.10% 0.25% 0.02% 0.56% 0.93% 0.02% 0.91% MetLife Conservative to Moderate Allocation Portfolio(22)........ 0.09% 0.25% 0.01% 0.61% 0.96% -- 0.96% MetLife Moderate Allocation Portfolio(22)................... 0.07% 0.25% -- 0.65% 0.97% -- 0.97% MetLife Moderate to Aggressive Allocation Portfolio(22)........ 0.07% 0.25% -- 0.68% 1.00% -- 1.00% MetLife Aggressive Allocation Portfolio(22)................... 0.10% 0.25% 0.03% 0.72% 1.10% 0.03% 1.07%
NOTES: (1) The Eligible Fund expenses used to prepare this table were provided to us by the Eligible Funds. We have not independently verified such information. The expenses shown are those incurred for the year ended December 31, 2008. Current or future expenses may be greater or less than those shown. Certain Eligible Funds may impose a redemption fee in the future. (2) Net Total Contractual Annual Expenses do not reflect any expense reductions resulting from directed brokerage arrangements or voluntary waivers. (3) Our affiliate, MetLife Advisers, LLC ("MetLife Advisers") is the investment manager for the Portfolios of the Metropolitan Fund and the Met Investors Series Trust. Capital Research and Management Company is the investment adviser of the American Funds Insurance Series. (4) Other Expenses include 0.02% of deferred expense reimbursement from a prior period. (5) The Investment Manager has contractually agreed, for the period May 1, 2009 to April 30, 2010, to limit its fee and to reimburse expenses to the extent necessary to limit total operating expenses to 0.90%, excluding 12b-1 fees. Due to a voluntary management fee waiver not reflected in the table, the Portfolio's actual net operating expenses for the year ended December 31, 2008 were 1.14% for the Class B shares. (6) The Investment Manager has contractually agreed, for the period May 1, 2009 to April 30, 2010, to limit its fee and to reimburse expenses to the extent necessary to limit total operating expenses to 0.90%, excluding 12b-1 fees. (7) The Investment Manager has contractually agreed, for the period May 1, 2009 to April 30, 2010, to limit its fee and to reimburse expenses to the extent necessary to limit total operating expenses to 0.80%, excluding 12b-1 fees. Due to a voluntary management fee waiver not reflected in the table, the Portfolio's actual net operating expenses for the year ended December 31, 2008 were 1.05% for the Class B shares. (8) The Portfolio is a "fund of funds" that invests substantially all of its assets in portfolios of the American Funds Insurance Series. 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. The Investment Manager has contractually agreed, for the period May 1, 2009 to April 30, 2010, to limit its fee and to reimburse expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses and 12b-1 fees) to 0.10%. (9) The Portfolio is a "fund of funds" that invests equally in three other portfolios of the Met Investors Series Trust: the Met/Franklin Income Portfolio, the Met/Franklin Mutual Shares Portfolio and the Met/Templeton Growth Portfolio. Because the Portfolio invests in other A-17 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. The Investment Manager has contractually agreed, for the period May 1, 2009 to April 30, 2010, to limit its fee and to reimburse expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses and 12b-1 fees) to 0.05%. (10) The Portfolio primarily invests its assets in other investment companies known as exchange-traded funds ("underlying ETFs"). As an investor in an underlying ETF or other investment company, the Portfolio will bear its pro rata portion of the operating expenses of the underlying ETF or other investment company, including the management fee. The Investment Manager has contractually agreed, for the period May 1, 2009 to April 30, 2010, to waive a portion of the management fee equal to 0.03% of the first $500 million of average daily net assets. The Management Fee has been restated to reflect an amended management fee agreement as if the fees had been in effect during the previous fiscal year. Other Expenses include 0.03% of deferred expense reimbursement from a prior period. (11) The Portfolio primarily invests its assets in other investment companies known as exchange-traded funds ("underlying ETFs"). As an investor in an underlying ETF or other investment company, the Portfolio will bear its pro rata portion of the operating expenses of the underlying ETF or other investment company, including the management fee. The Investment Manager has contractually agreed, for the period May 1, 2009 to April 30, 2010, to waive a portion of the management fee equal to 0.03% of the first $500 million of average daily net assets. The Management Fee has been restated to reflect an amended management fee agreement as if the fees had been in effect during the previous fiscal year. Other Expenses include 0.02% of deferred expense reimbursement from a prior period. (12) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, to reduce the management fee for each Class of the Portfolio to the annual rate of 0.81% for the first $500 million of the Portfolio's average daily net assets and 0.78% for the next $500 million. (13) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, to reduce the management fee for each Class of the Portfolio to 0.243%. (14) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, to reduce the management fee for each Class of the Portfolio to the annual rate of 0.325% for the Portfolio's average daily net assets in excess of $1 billion but less than $2 billion. (15) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, to reduce the management fee for each Class of the Portfolio to the annual rate of 0.73% for the first $300 million of the Portfolio's average daily net assets and 0.705% for the next $700 million. (16) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, 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. Other Expenses include Treasury Guarantee Program expenses of 0.012% incurred for the period September 19, 2008 through December 31, 2008. (17) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, to reduce the management fee for each Class of the Portfolio to the annual rate of 0.75% for the first $50 million of the Portfolio's average daily net assets, 0.70% for the next $450 million, 0.65% for the next $4 billion, and 0.625% for amounts over $4.5 billion. (18) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, to reduce the management fee for each Class of the Portfolio to the annual rate of 0.85% for the first $500 million of the Portfolio's average daily net assets and 0.80% for amounts over $500 million. (19) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, to reduce the management fee for each Class of the Portfolio to the annual rate of 0.85% for the first $100 million of the Portfolio's average daily net assets and 0.80% for amounts over $100 million. (20) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, 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. (21) MetLife Advisers, LLC has contractually agreed, for the period May 1, 2009 through April 30, 2010, to reduce the management fee for each Class of the Portfolio to 0.293%. (22) The Portfolio is a "fund of funds" that invests substantially all of its assets in other portfolios of the Met Investors Series Trust and the Metropolitan Series Fund, Inc. 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 has contractually agreed, for the period May 1, 2009 through April 30, 2010, 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 net operating expenses of the Portfolio to 0.35% of the average daily net assets of the Class B shares. EXAMPLES These Examples are intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include Contract Owner transaction expenses, contract fees, Variable Account annual expenses, and Eligible Fund fees and expenses. (1) The examples assume that the Contract has (i) the Enhanced Death Benefit, (ii) the Guaranteed Minimum Income Benefit Rider (GMIB Plus II) and assuming the maximum charge permitted on an Optional Reset of 1.50% applies in all Contract years and (iii) the Earnings Preservation Benefit. EXAMPLE 1. This Example assumes that you invest $10,000 in a Standard Class Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the (a) maximum A-18 and (b) minimum fees and expenses of any of the Eligible Funds (before reimbursement and/or waiver). Although your actual costs may be higher or lower, based on these assumptions, your costs would be: (1) If you surrender your Contract or annuitize under a period certain option for a specified period of less than 15 years (with applicable Withdrawal Charges deducted) at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- (a).............................................. $1,356 $2,540 $3,746 $7,045 (b).............................................. $1,250 $2,233 $3,258 $6,200
(2) If you do not surrender your Contract or if you annuitize under a life contingency option or under a period certain option for a minimum specified period of 15 years (no Withdrawal Charges would be deducted) (2):
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- (a)............................................... $656 $2,000 $3,386 $7,045 (b)............................................... $550 $1,693 $2,898 $6,200
EXAMPLE 2. This Example assumes that you invest $10,000 in a B Plus Class Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the (a) maximum and (b) minimum fees and expenses of any of the Eligible Funds (before reimbursement and/or waiver). Although your actual costs may be higher or lower, based on these assumptions, your costs would be: (1) If you surrender your Contract or annuitize under a period certain option for a specified period of less than 15 years (with applicable Withdrawal Charges deducted) at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- (a).............................................. $1,605 $2,860 $4,150 $7,444 (b).............................................. $1,495 $2,545 $3,651 $6,595
(2) If you do not surrender your Contract or if you annuitize under a life contingency option or under a period certain option for a minimum specified period of 15 years (no Withdrawal Charges would be deducted) (2):
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- (a)............................................... $705 $2,140 $3,610 $7,444 (b)............................................... $595 $1,825 $3,111 $6,595
EXAMPLE 3. This Example assumes that you invest $10,000 in a C Class Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the (a) maximum and (b) minimum fees and expenses of any of the Eligible Funds (before reimbursement and/or waiver). Although your actual costs may be higher or lower, based on these assumptions, your costs would be: (1) If you surrender your Contract, do not surrender your Contract, annuitize or do not annuitize at the end of the applicable time period (no Withdrawal Charges apply to the C Class):
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- (a)............................................... $690 $2,096 $3,536 $7,291 (b)............................................... $584 $1,793 $3,057 $6,481
EXAMPLE 4. This Example assumes that you invest $10,000 in an L Class Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the (a) maximum and (b) minimum fees and expenses of any of the Eligible Funds (before reimbursement and/or waiver). Although your actual costs may be higher or lower, based on these assumptions, your costs would be: (1) If you surrender your Contract or annuitize under a period certain option for a specified period of less than 15 years (with applicable Withdrawal Charges deducted) at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- (a).............................................. $1,381 $2,518 $3,493 $7,221 (b).............................................. $1,274 $2,214 $3,012 $6,401
(2) If you do not surrender your Contract or if you annuitize under a life contingency option or under a period certain option for a minimum specified period of 15 years (no Withdrawal Charges would be deducted) (2):
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- (a)............................................... $681 $2,068 $3,493 $7,221 (b)............................................... $574 $1,764 $3,012 $6,401
A-19 EXAMPLE 5. This Example assumes that you invest $10,000 in an P Class Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the (a) maximum and (b) minimum fees and expenses of any of the Eligible Funds (before reimbursement and/or waiver). Although your actual costs may be higher or lower, based on these assumptions, your costs would be: (1) If you surrender your Contract or annuitize under a period certain option for a specified period of less than 15 years (with applicable Withdrawal Charges deducted) at the end of the applicable time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- (a).............................................. $1,446 $2,691 $3,879 $6,964 (b).............................................. $1,339 $2,383 $3,389 $6,110
(2) If you do not surrender your Contract or if you annuitize under a life contingency option or under a period certain option for a minimum specified period of 15 years (no Withdrawal Charges would be deducted) (2):
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- (a)............................................... $646 $1,971 $3,339 $6,964 (b)............................................... $539 $1,663 $2,849 $6,110
PLEASE REMEMBER THAT THE EXAMPLES ARE SIMPLY ILLUSTRATIONS AND DO NOT REPRESENT PAST OR FUTURE EXPENSES. Your actual expenses may be higher or lower than those reflected in the examples depending on the features you choose. Similarly your rate of return may be more or less than the 5% assumed in the examples. NOTES: (1) The examples do not reflect transfer fees or premium taxes (which may range up to 3.5%, depending on the jurisdiction). The examples use an average Contract Administrative Fee of .054% for the Standard Class; .046% for the B Plus Class; .040% for the C Class; .043% for the L Class; and .052% for the P Class. (See note (4), on p. A-14.) (2) If you subsequently withdraw the commuted value of amounts placed under any of these options, we will deduct from the amount you receive a portion of the Withdrawal Charge amount that would have been deducted when you originally applied the Contract proceeds to the option. (see "Withdrawal Charge" and "Annuity Options" for more information.) -------------------------------------------------------------------------------- Condensed financial information containing the Accumulation Unit Value history appears at the end of this prospectus (see "ACCUMULATION UNIT VALUES (Condensed Financial Information)"). A-20 HOW THE CONTRACT WORKS PURCHASE - You must select one of five Classes of the Contract, each of which has different Withdrawal Charges and Asset-Based Insurance Charges: - Standard Class - B Plus Class - C Class - L Class - P Class - You can make a one-time investment or establish an ongoing investment program, subject to the Company's minimum and maximum purchase payment guidelines, which vary by Class. ADDITIONAL PAYMENTS - Generally may be made at any time, (subject to Company limits), but no purchase payments allowed: (1) during the seven years immediately preceding the Maturity Date for the Standard Class; nine years for the B Plus Class; three years for the L Class; and nine years for the P Class; or (2) after a Contract Owner (or the Annuitant, if not owned in an individual capacity) reaches age 91. Joint Contract Owners may not make a purchase payment after the older Contract Owner reaches age 86. - Minimum $500 with certain exceptions (see page A-33). WITHDRAWALS - You may make withdrawals from your Contract, subject to imposition of a Withdrawal Charge. (This includes withdrawals resulting from a request to divide the Contract Value due to divorce.) - No Withdrawal Charge applies to Class C. For the other Classes, you may withdraw the free withdrawal amount each Contract Year without incurring the Withdrawal Charge. - In the first Contract Year, no free withdrawal amount is available unless it is part of a monthly systematic withdrawal program in which the monthly withdrawal amount does not exceed 1/12 of 10% of total purchase payments. - After the first Contract Year, the annual free withdrawal amount is equal to 10% of total purchase payments, less the total free withdrawal amount previously withdrawn in the same Contract Year. - Withdrawals may be taxable to the extent of gain. - Prior to age 59 1/2 a 10% penalty tax may apply. A 25% penalty tax may apply upon surrender from a SIMPLE IRA within the first 2 years. - Premium tax charge may apply. - You may also elect a Guaranteed Withdrawal Benefit Rider or a Lifetime Withdrawal Guarantee Benefit Rider, each of which provides a return of your purchase payments over time (subject to the requirements of the rider). DEATH PROCEEDS - You will receive the Standard Death Benefit unless you chose to receive one of three optional death benefits -- the Annual Step-Up Death Benefit, the Greater of Annual Step-Up or 5% Annual Increase Death Benefit or the Enhanced Death Benefit. - Certain optional death benefits will increase the Asset-Based Insurance Charge applicable to your Contract. The additional charge for the Enhanced Death Benefit, 0.75% - 0.95% of the Death benefit base, is deducted annually from Contract Value. - You may also elect to purchase, for an additional annual charge of 0.25%, the Earnings Preservation Benefit Rider, which provides an additional death benefit to assist with covering taxes payable at death. - Your Death Proceeds are guaranteed not to be less than your total purchase payments adjusted for any prior withdrawals (and, where applicable, net of premium tax charges). - Death proceeds may be taxable. - Premium tax charge may apply. CONTRACT VALUE - You allocate payments to your choice, within limits, of Eligible Funds and/or the Fixed Account. - The Contract Value reflects purchase payments, investment experience, interest credited on Fixed Account allocations, partial withdrawals and Contract charges. - The Contract Value invested in the Eligible Funds is not guaranteed. - Earnings in the Contract are free of any current income taxes. - You may change the allocation of future payments, within limits, at any time. - Prior to annuitization, you may transfer Contract Value among accounts, currently free of charge. (Special limits apply to situations that involve "market timing" and may apply to the Fixed Account.) RETIREMENT BENEFITS - Lifetime income options. - Fixed and/or variable payout options. - Retirement benefits may be taxable. - A Guaranteed Minimum Income Benefit, which provides a "floor" on annuity payments. - Premium tax charge may apply. ADDITIONAL BENEFITS - You pay no taxes on your investment as long as it remains in the Contract. - You may withdraw your Contract Value at any time, less any applicable Withdrawal Charge, subject to any applicable tax law restrictions. - We may waive the Withdrawal Charge on evidence of terminal illness, confinement to a nursing home, or permanent and total disability, if this benefit is available in your state. DAILY DEDUCTION FROM VARIABLE ACCOUNT - We deduct an Asset-Based Insurance Charge from the Contract Value daily. The amount of the charge depends upon the Class of Contract you select, the features you choose for your Contract, and the subaccounts you select. Asset- Based Insurance Charges (as an annual percentage of the daily net assets of each subaccount) for each Class and for each death benefit option prior to annuitization are: Standard Class -- MINIMUM-1.25%; MAXIMUM-1.60% B Plus Class -- MINIMUM-1.60%; MAXIMUM-1.95% C Class -- MINIMUM-1.60%; MAXIMUM-1.95% L Class -- MINIMUM-1.50%; MAXIMUM-1.85% P Class -- MINIMUM-1.15%; MAXIMUM-1.50% (These amounts increase by .25% for subaccounts investing in the American Funds Insurance Series) - We reserve the right to impose an increased Asset-Based Insurance Charge on subaccounts that we add to the Contract in the future. The increase will not exceed the annual rate of 0.25% of average daily net assets in any such subaccounts. - After annuitization, the amount of the Asset-Based Insurance Charge for each Class will be the charge that would apply for the standard death benefit, except that for the B Plus and P Class, the Asset-Based Insurance Charge will be 1.25% after annuitization. These amounts increase by .25% for Subaccounts investing in the American Funds Insurance Series. - Investment advisory fees and operating expenses are deducted from the Eligible Fund assets daily. ANNUAL CONTRACT ADMINISTRATIVE FEE - We deduct a $30 Contract Administrative Fee from the Contract Value in the Variable Account on each anniversary while the Contract is in-force and on full withdrawal. We deduct a pro rata portion on annuitization. We do not deduct this fee during the accumulation period or on annuitization if the Contract Value is $50,000 or more. We reserve the right to deduct this fee during the Annuity Period, pro rata from each annuity payment. WITHDRAWAL CHARGE - No Withdrawal Charge applies to Class C. - For the other Classes, we deduct a Withdrawal Charge (maximum of 9% of each purchase payment made) on certain full and partial withdrawals and certain annuitization transactions. (This includes withdrawals resulting from a request to divide the Contract Value due to divorce.) - You may withdraw the free withdrawal amount each Contract Year without incurring the Withdrawal Charge. - The applicable Withdrawal Charge varies by Class (see page A-52). OPTIONAL LIVING BENEFIT RIDER CHARGES - Guaranteed Minimum Accumulation Benefit: 0.75% of the Guaranteed Accumulation Amount. - Guaranteed Minimum Income Benefit Riders range: 0.50% - 1.00% of the Income Base (up to 1.50% upon Optional Reset or Automatic Annual Step-Up) - Guaranteed Withdrawal Benefit Riders range: 0.50% - 0.55% of the Guaranteed Withdrawal Amount up to a maximum of 1.00% upon Optional Reset - Lifetime Withdrawal Guarantee Benefit Riders range: 0.50% - 1.50% of the Total Guaranteed Withdrawal Amount (up to a maximum of 1.80% upon Optional Reset or Automatic Annual Step-Up) PREMIUM TAX CHARGE - Where applicable, we deduct a premium tax charge from the Contract Value when annuity benefits commence. A-21 THE COMPANY We were organized as a stock life insurance company in Delaware in 1980 and are authorized to operate in all states, the District of Columbia and Puerto Rico. Formerly, we were a wholly-owned subsidiary of New England Mutual Life Insurance Company ("New England Mutual"). On August 30, 1996, New England Mutual merged into MetLife, an insurance company whose principal office is One Madison Avenue, New York, NY 10010. MetLife is a wholly-owned subsidiary of MetLife, Inc., a publicly traded company. MetLife then became the parent of New England Variable Life Insurance Company which changed its name to "New England Life Insurance Company," (the "Company") and changed its domicile from the State of Delaware to the Commonwealth of Massachusetts. The Company is located at 501 Boylston Street, Boston, Massachusetts 02116. We are a member of the Insurance Marketplace Standards Association ("IMSA"), and as such may include the IMSA logo and information about IMSA membership in our advertisements. Companies that belong to IMSA subscribe to a set of ethical standards covering the various aspects of sales and service for individually sold life insurance and annuities. THE VARIABLE ACCOUNT We established a separate investment account, New England Variable Annuity Separate Account (the "Variable Account"), under Delaware law on July 1, 1994, to hold the assets backing the Contracts. When the Company changed its domicile to Massachusetts on August 30, 1996 the Variable Account became subject to Massachusetts law. The Variable Account is registered as a unit investment trust under the Investment Company Act of 1940. The Variable Account may be used to support other variable annuity contracts besides the Contracts. The other contracts may have different charges, and provide different benefits. The assets of the Variable Account equal to its reserves and other contract liabilities are not available to meet the claims of the Company's general creditors. The income and realized and unrealized capital gains or losses of the Variable Account are credited to or charged against the Variable Account and not to other income, gains or losses of the Company. All obligations arising under the Contracts are, however, general corporate obligations of the Company. We allocate your purchase payments to the subaccounts that you elect. If you allocate purchase payments to the Variable Account, the value of Accumulation Units credited to your Contract and the amount of the variable annuity payments depend on the investment experience of the Eligible Fund (a mutual fund) in which your selected subaccount invests. We do not guarantee the investment performance of the Variable Account. You bear the full investment risk for all amounts allocated to the Variable Account. The amount of the guaranteed death benefit that exceeds the Contract Value is paid from our general account. In addition, portions of the Contract's guaranteed living benefits payable may exceed the amount of the Contract Value and be paid from our general account. Benefit amounts paid from the general account are subject to the claims-paying ability of the Company. INVESTMENTS OF THE VARIABLE ACCOUNT We will allocate your purchase payments to the subaccounts investing in one or more of the Eligible Funds you chose, which we list below. No sales charge will apply at the time you make your payment. You may change your selection of Eligible Funds for future purchase payments at any time free of charge. (See "Requests and Elections.") You can transfer to or from any Eligible Fund, subject to certain conditions. (See "Transfer Privilege.") You may allocate your Contract Value among the subaccounts (including the Fixed Account, with certain exceptions) as you choose at any one time (subject to limitation). You may not choose more than 18 subaccounts (including the Fixed Account) at the time you submit your initial purchase payment. If you wish to allocate a subsequent purchase payment to more than 18 subaccounts (including the Fixed Account), we must have your request to allocate future purchase payments to more than 18 subaccounts on record before we can apply your subsequent payment to your chosen allocation. You must allocate a minimum of $500 to each account you select unless the Company consents to lower amounts. We reserve the right to add or remove Eligible Funds from time to time. See "Substitution of Investments." Certain Eligible Funds have investment objectives and policies similar to other funds that may be managed by the same subadviser. The performance of the Eligible Funds, however, may be higher or lower than the other funds. We make no representation that the investment results of any of the Eligible Funds will be comparable to the investment results of any other fund, even if the other fund has the same subadviser. You'll find complete information about the Eligible Funds, including the risks associated with each, in the accompanying prospectuses. They should be read along with this prospectus. A-22 AMERICAN FUNDS BALANCED ALLOCATION PORTFOLIO The American Funds Balanced Allocation Portfolio's investment objective is to seek a balance between a high level of current income and growth of capital with a greater emphasis on growth of capital. AMERICAN FUNDS BOND FUND The American Funds Bond Fund's investment objective is to seek to maximize current income and preserve capital by investing primarily in fixed-income securities. AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND The American Funds Global Small Capitalization Fund's investment objective is to seek capital appreciation through stocks. AMERICAN FUNDS GROWTH ALLOCATION PORTFOLIO The American Funds Growth Allocation Portfolio's investment objective is to seek growth of capital. AMERICAN FUNDS GROWTH FUND The American Funds Growth Fund's investment objective is to seek capital appreciation through stocks. AMERICAN FUNDS GROWTH-INCOME FUND The American Funds Growth-Income Fund's investment objective is to seek both capital appreciation and income. AMERICAN FUNDS MODERATE ALLOCATION PORTFOLIO The American Funds Moderate Allocation Portfolio's investment objective is to seek a high total return in the form of income and growth of capital, with a greater emphasis on income. ARTIO INTERNATIONAL STOCK PORTFOLIO The Artio International Stock Portfolio's investment objective is to seek long-term growth of capital. BARCLAYS CAPITAL AGGREGATE BOND INDEX PORTFOLIO The Barclays Capital Aggregate Bond Index Portfolio's investment objective is to seek to equal the performance of the Barclays Capital U.S. Aggregate Bond Index. BLACKROCK AGGRESSIVE GROWTH PORTFOLIO The BlackRock Aggressive Growth Portfolio's investment objective is to seek maximum capital appreciation. BLACKROCK BOND INCOME PORTFOLIO The BlackRock Bond Income Portfolio's investment objective is to seek a competitive total return primarily from investing in fixed-income securities. BLACKROCK DIVERSIFIED PORTFOLIO The BlackRock Diversified Portfolio's investment objective is to seek high total return while attempting to limit investment risk and preserve capital. BLACKROCK LARGE CAP CORE PORTFOLIO The BlackRock Large Cap Core Portfolio's investment objective is to seek long-term capital growth. BLACKROCK LARGE CAP VALUE PORTFOLIO The BlackRock Large Cap Value Portfolio's investment objective is to seek long-term growth of capital. A-23 BLACKROCK LEGACY LARGE CAP GROWTH PORTFOLIO The BlackRock Legacy Large Cap Growth Portfolio's investment objective is to seek long-term growth of capital. BLACKROCK MONEY MARKET PORTFOLIO The BlackRock Money Market Portfolio's investment objective is to seek a high level of current income consistent with preservation of capital. BLACKROCK STRATEGIC VALUE PORTFOLIO The BlackRock Strategic Value Portfolio's investment objective is to seek high total return, consisting principally of capital appreciation. CLARION GLOBAL REAL ESTATE PORTFOLIO The Clarion Global Real Estate Portfolio's investment objective is to seek total return through investment in real estate securities, emphasizing both capital appreciation and current income. DAVIS VENTURE VALUE PORTFOLIO The Davis Venture Value Portfolio's investment objective is to seek growth of capital. FI MID CAP OPPORTUNITIES PORTFOLIO The FI Mid Cap Opportunities Portfolio's investment objective is to seek long-term growth of capital. FI VALUE LEADERS PORTFOLIO The FI Value Leaders Portfolio's investment objective is to seek long-term growth of capital. HARRIS OAKMARK INTERNATIONAL PORTFOLIO The Harris Oakmark International Portfolio's investment objective is to seek long-term capital appreciation. JANUS FORTY PORTFOLIO The Janus Forty Portfolio's investment objective is to seek capital appreciation. JENNISON GROWTH PORTFOLIO The Jennison Growth Portfolio's investment objective is to seek long-term growth of capital. LAZARD MID CAP PORTFOLIO The Lazard Mid Cap Portfolio's investment objective is to seek long-term growth of capital. LEGG MASON PARTNERS AGGRESSIVE GROWTH PORTFOLIO The Legg Mason Partners Aggressive Growth Portfolio's investment objective is to seek capital appreciation. LEGG MASON VALUE EQUITY PORTFOLIO The Legg Mason Value Equity Portfolio's investment objective is to seek long-term growth of capital. LOOMIS SAYLES SMALL CAP CORE PORTFOLIO The Loomis Sayles Small Cap Core Portfolio's investment objective is to seek long-term capital growth from investments in common stocks or other equity securities. LOOMIS SAYLES SMALL CAP GROWTH PORTFOLIO The Loomis Sayles Small Cap Growth Portfolio's investment objective is to seek long-term capital growth. A-24 LORD ABBETT BOND DEBENTURE PORTFOLIO The Lord Abbett Bond Debenture Portfolio's investment objective is to seek high current income and the opportunity for capital appreciation to produce a high total return. MET/AIM SMALL CAP GROWTH PORTFOLIO The Met/AIM Small Cap Growth Portfolio's investment objective is to seek long-term growth of capital. MET/ARTISAN MID CAP VALUE PORTFOLIO The Met/Artisan Mid Cap Value Portfolio's investment objective is to seek long-term capital growth. MET/FRANKLIN INCOME PORTFOLIO The Met/Franklin Income Portfolio's investment objective is to seek to maximize income while maintaining prospects for capital appreciation. MET/FRANKLIN MUTUAL SHARES PORTFOLIO The Met/Franklin Mutual Shares Portfolio's investment objective is to seek capital appreciation, which may occasionally be short-term. The Portfolio's secondary investment objective is income. MET/FRANKLIN TEMPLETON FOUNDING STRATEGY PORTFOLIO The Met/Franklin Templeton Founding Strategy Portfolio's investment objective is to seek capital appreciation and secondarily investment objective is to seek income. MET/TEMPLETON GROWTH PORTFOLIO The Met/Templeton Growth Portfolio's investment objective is to seek long- term capital growth. METLIFE AGGRESSIVE ALLOCATION PORTFOLIO The MetLife Aggressive Allocation Portfolio's investment objective is to seek growth of capital. METLIFE CONSERVATIVE ALLOCATION PORTFOLIO The MetLife Conservative Allocation Portfolio's investment objective is to seek high level of current income, with growth of capital as a secondary objective. METLIFE CONSERVATIVE TO MODERATE ALLOCATION PORTFOLIO The MetLife Conservative to Moderate Allocation Portfolio's investment objective is to seek high total return in the form of income and growth of capital, with a greater emphasis on income. METLIFE MID CAP STOCK INDEX PORTFOLIO The MetLife Mid Cap Stock Index Portfolio's investment objective is to seek to equal the performance of the Standard & Poor's Mid Cap 400(R) Composite Stock Price Index. METLIFE MODERATE ALLOCATION PORTFOLIO The MetLife Moderate Allocation Portfolio's investment objective is to seek a balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital. METLIFE MODERATE TO AGGRESSIVE ALLOCATION PORTFOLIO The MetLife Moderate to Aggressive Allocation Portfolio's investment objective is to seek growth of capital. A-25 METLIFE STOCK INDEX PORTFOLIO The MetLife Stock Index Portfolio's investment objective is to seek to equal the performance of the Standard & Poor's 500(R) Composite Stock Price Index. MFS(R) RESEARCH INTERNATIONAL PORTFOLIO The MFS(R) Research International Portfolio's investment objective is to seek capital appreciation. MFS(R) TOTAL RETURN PORTFOLIO The MFS(R) Total Return Portfolio's investment objective is to seek a favorable total return through investment in a diversified portfolio. MFS(R) VALUE PORTFOLIO The MFS(R) Value Portfolio's investment objective is to seek capital appreciation. MORGAN STANLEY EAFE(R) INDEX PORTFOLIO The Morgan Stanley EAFE(R) Index Portfolio's investment objective is to seek to equal the performance of the MSCI EAFE(R) Index. NEUBERGER BERMAN MID CAP VALUE PORTFOLIO The Neuberger Berman Mid Cap Value Portfolio's investment objective is to seek capital growth. OPPENHEIMER CAPITAL APPRECIATION PORTFOLIO The Oppenheimer Capital Appreciation Portfolio's investment objective is to seek capital appreciation. OPPENHEIMER GLOBAL EQUITY PORTFOLIO The Oppenheimer Global Equity Portfolio's investment objective is to seek capital appreciation. PIMCO INFLATION PROTECTED BOND PORTFOLIO The PIMCO Inflation Protected Bond Portfolio's investment objective is to seek to provide maximum real return, consistent with preservation of capital and prudent investment management. PIMCO TOTAL RETURN PORTFOLIO The PIMCO Total Return Portfolio's investment objective is to seek maximum total return, consistent with the preservation of capital and prudent investment management. RCM TECHNOLOGY PORTFOLIO The RCM Technology Portfolio's investment objective is to seek capital appreciation; no consideration is given to income. RUSSELL 2000(R) INDEX PORTFOLIO The Russell 2000(R) Index Portfolio's investment objective is to seek to equal the return of the Russell 2000(R) Index. SSGA GROWTH AND INCOME ETF PORTFOLIO The SSgA Growth and Income ETF Portfolio's investment objective is to seek growth of capital and income. SSGA GROWTH ETF PORTFOLIO The SSgA Growth ETF Portfolio's investment objective is to seek growth of capital. A-26 T. ROWE PRICE LARGE CAP GROWTH PORTFOLIO The T. Rowe Price Large Cap Growth Portfolio's investment objective is to seek long-term growth of capital and, secondarily, dividend income. T. ROWE PRICE MID CAP GROWTH PORTFOLIO The T. Rowe Price Mid Cap Growth Portfolio's investment objective is to seek long-term growth of capital. T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO The T. Rowe Price Small Cap Growth Portfolio's investment objective is to seek long-term capital growth. WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES PORTFOLIO The Western Asset Management Strategic Bond Opportunities Portfolio's investment objective is to seek to maximize total return consistent with preservation of capital. WESTERN ASSET MANAGEMENT U.S. GOVERNMENT PORTFOLIO The Western Asset Management U.S. Government Portfolio's investment objective is to seek to maximize total return consistent with preservation of capital and maintenance of liquidity. A-27 INVESTMENT ADVICE MetLife Advisers, an affiliate of the Company, serves as Investment Adviser for each Portfolio of the Metropolitan Fund. The chart below shows the Subadviser of each Portfolio. MetLife Advisers oversees and recommends the hiring or replacement of its Subadvisers and is ultimately responsible for the investment performance of these Eligible Funds. Each Subadviser is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940.
PORTFOLIO ADVISER (SUBADVISER) --------- -------------------- Artio International Stock Portfolio(1)....................... Artio Global Management, LLC(2) Barclays Capital Aggregate Bond Index MetLife Investment Advisors Company, Portfolio(3)....................... LLC BlackRock Aggressive Growth Portfolio.......................... BlackRock Advisors, LLC BlackRock Bond Income Portfolio...... BlackRock Advisors, LLC BlackRock Diversified Portfolio...... BlackRock Advisors, LLC BlackRock Large Cap Value Portfolio.. BlackRock Advisors, LLC BlackRock Legacy Large Cap Growth Portfolio(4)....................... BlackRock Advisors, LLC BlackRock Money Market Portfolio..... BlackRock Advisors, LLC BlackRock Strategic Value Portfolio.. BlackRock Advisors, LLC Davis Venture Value Portfolio........ Davis Selected Advisers, L.P.(5) FI Mid Cap Opportunities Portfolio... Pyramis Global Advisors, LLC FI Value Leaders Portfolio........... Pyramis Global Advisors, LLC Jennison Growth Portfolio............ Jennison Associates LLC Loomis Sayles Small Cap Core Portfolio(6)....................... Loomis, Sayles & Company, L.P. Loomis Sayles Small Cap Growth Portfolio(7)....................... Loomis, Sayles & Company, L.P.(8) Met/Artisan Mid Cap Value Artisan Partners Limited Portfolio(9)....................... Partnership(10) MetLife Aggressive Allocation Portfolio.......................... N/A(11) MetLife Conservative Allocation Portfolio.......................... N/A(11) MetLife Conservative to Moderate Allocation Portfolio............... N/A(11) MetLife Mid Cap Stock Index MetLife Investment Advisors Company, Portfolio.......................... LLC MetLife Moderate Allocation Portfolio.......................... N/A(11) MetLife Moderate to Aggressive Allocation Portfolio............... N/A(11) MetLife Stock Index Portfolio........ MetLife Investment Advisors Company, LLC MFS(R) Total Return Portfolio........ Massachusetts Financial Services Company MFS(R) Value Portfolio............... Massachusetts Financial Services Company Morgan Stanley EAFE(R) Index MetLife Investment Advisors Company, Portfolio.......................... LLC Neuberger Berman Mid Cap Value Portfolio.......................... Neuberger Berman Management LLC Oppenheimer Global Equity Portfolio.. OppenheimerFunds, Inc. Russell 2000(R) Index Portfolio...... MetLife Investment Advisors Company, LLC T. Rowe Price Large Cap Growth Portfolio.......................... T. Rowe Price Associates, Inc. T. Rowe Price Small Cap Growth Portfolio.......................... T. Rowe Price Associates, Inc. Western Asset Management Strategic Bond Opportunities Portfolio....... Western Asset Management Company Western Asset Management U.S. Government Portfolio............... Western Asset Management Company
------- (1) Effective May 1, 2009, Julius Baer International Stock Portfolio changed its name to Artio International Stock Portfolio. (2) Effective May 1, 2009, Artio Global Management, LLC replaced Julius Baer Investment Management, LLC as subadviser. (3) Effective May 1, 2009, Lehman Brothers(R) Aggregate Bond Index Portfolio changed its name to Barclays Capital Aggregate Bond Index Portfolio. (4) Effective after 4:00 p.m. Eastern Time on May 1, 2009, FI Large Cap Portfolio merged with and into BlackRock Legacy Large Cap Growth Portfolio (the "Replacement Fund"). If you select the FI Large Cap Portfolio on your application and we receive your application after May 1, 2009, your purchase payments will automatically be allocated to the Replacement Fund. If you do not want your purchase payment to be allocated to the Replacement Fund, you should choose a fund other than the FI Large Cap Portfolio on your application. (5) Davis Selected Advisers, L.P. may delegate any of its responsibilities to Davis Selected Advisers-NY, Inc., a wholly-owned subsidiary. (6) Effective May 1, 2009, Loomis Sayles Small Cap Portfolio changed its name to Loomis Sayles Small Cap Core Portfolio. (7) Effective May 1, 2009, Frankin Templeton Small Cap Growth Portfolio changed its name to Loomis Sayles Small Cap Growth Portfolio. A-28 (8) Effective May 1, 2009, Loomis, Sayles & Company, L.P. replaced Franklin Advisers, Inc. as subadviser. (9) Effective May 1, 2009, Harris Oakmark Focused Value Portfolio changed its name to Met/Artisan Mid Cap Value Portfolio. (10) Effective May 1, 2009, Artisan Partners Limited Partnership replaced Harris Associates, L.P. as subadviser. (11) Metropolitan Fund Allocation Portfolios: The MetLife Conservative Allocation Portfolio, the MetLife Conservative to Moderate Allocation Portfolio, the MetLife Moderate Allocation Portfolio, the MetLife Moderate to Aggressive Allocation Portfolio, and the MetLife Aggressive Allocation Portfolio (collectively, the "Asset Allocation Portfolios") are "fund of funds" that invest in Class A shares of a diversified group of other underlying portfolios (Eligible Funds) of the Metropolitan Fund and Met Investors Series. There is no subadviser, however, there is an Asset Allocation Committee of investment professionals at MetLife Advisers that are responsible for the management of the Allocation Portfolios. Each underlying fund has its own subadviser. For more information regarding the Investment Adviser and the Subadviser of the Metropolitan Fund Portfolios, see the Statement of Additional Information for the Contracts, and also see the Metropolitan Fund prospectus attached at the end of this prospectus and its Statement of Additional Information. Effective on or about May 1, 2009, Met Investors Advisory, LLC merged with and into MetLife Advisers. As a result, MetLife Advisers, an affiliate of the Company, serves as Investment Adviser for each Portfolio of the Met Investors Series Trust. The chart below shows the Subadviser of each Portfolio. MetLife Advisers oversees and recommends the hiring or replacement of its Subadvisers and is ultimately responsible for the investment performance of these Eligible Funds. Each Subadviser is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940.
PORTFOLIO ADVISER (SUBADVISER) --------- -------------------- American Funds Balanced Allocation N/A(1) Portfolio.......................... American Funds Growth Allocation N/A(1) Portfolio.......................... American Funds Moderate Allocation N/A(1) Portfolio.......................... BlackRock Large Cap Core Portfolio... BlackRock Advisors, LLC Clarion Global Real Estate ING Clarion Real Estate Securities, Portfolio.......................... L.P. Harris Oakmark International Harris Associates L.P. Portfolio.......................... Janus Forty Portfolio................ Janus Capital Management LLC Lazard Mid Cap Portfolio............. Lazard Asset Management LLC Legg Mason Partners Aggressive Growth ClearBridge Advisors, LLC Portfolio.......................... Legg Mason Value Equity Portfolio.... Legg Mason Capital Management. Inc. Lord Abbett Bond Debenture Lord, Abbett & Co. LLC Portfolio.......................... Met/AIM Small Cap Growth Portfolio... Invesco Aim Capital Management, Inc. Met/Franklin Income Portfolio........ Franklin Advisers, Inc. Met/Franklin Mutual Shares Franklin Mutual Advisers, LLC Portfolio.......................... Met/Franklin Templeton Founding N/A(1) Strategy Portfolio................. Met/Templeton Growth Portfolio....... Templeton Global Advisors Limited MFS(R) Research International Massachusetts Financial Services Portfolio.......................... Company Oppenheimer Capital Appreciation OppenheimerFunds, Inc. Portfolio.......................... PIMCO Inflation Protected Bond Pacific Investment Management Company Portfolio.......................... LLC PIMCO Total Return Portfolio......... Pacific Investment Management Company LLC RCM Technology Portfolio............. RCM Capital Management LLC SSgA Growth and Income ETF SSgA Funds Management, Inc.(3) Portfolio(2)....................... SSgA Growth ETF Portfolio(4)......... SSgA Funds Management, Inc.(3) T. Rowe Price Mid Cap Growth T. Rowe Price Associates, Inc. Portfolio..........................
------- (1) This portfolio is a "fund of funds" that invests in shares of a diversified group of other underlying portfolios of the Metropolitan Fund, Met Investors Series Trust, and/or the American Funds Insurance Series. There is no subadviser, however, there is an Asset Allocation Committee of investment professionals at MetLife Advisers that are responsible for the management of the Portfolios. Each underlying portfolio has its own adviser and/or subadviser. (2) Effective September 2, 2008, Cyclical Growth and Income ETF Portfolio changed its name to SSgA Growth and Income ETF Portfolio. (3) Effective September 2, 2008, SSgA Funds Management, Inc. replaced Gallatin Asset Management, Inc. as subadviser. (4) Effective September 2, 2008, Cyclical Growth ETF Portfolio changed its name to SSgA Growth ETF Portfolio. A-29 For more information regarding the Manager or Adviser of the Met Investors Series Trust Portfolios, see the Statement of Additional Information for the Contracts, and also see the Met Investors Series Trust prospectus attached at the end of this prospectus and its Statement of Additional Information. Capital Research and Management Company is the Investment Adviser for the American Funds Insurance Series Funds.
PORTFOLIO SUBADVISER --------- ---------- American Funds Bond Fund............. N/A American Funds Global Small N/A Capitalization..................... American Funds Growth................ N/A American Funds Growth-Income......... N/A
For more information about the Investment Adviser, see the American Funds Insurance Series prospectus attached at the end of this prospectus and its Statement of Additional Information. You can also get information about the Metropolitan Fund, Met Investors Series Trust and the American Funds Insurance Series (including a copy of the Statement of Additional Information) by accessing the Securities and Exchange Commission's website at http://www.sec.gov. CERTAIN PAYMENTS WE RECEIVE WITH REGARD TO THE ELIGIBLE FUNDS An investment adviser (other than our affiliate MetLife Advisers, LLC) or subadviser of an Eligible Fund, or its affiliates, may make payments to us and/or certain of our 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 Eligible 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 Eligible Fund assets. Contract Owners, through their indirect investment in the Eligible Funds, bear the costs of these advisory fees (see the Eligible Funds' prospectuses for more information). The amount of the payments we receive is based on a percentage of assets of the Eligible Funds attributable to the Contracts and certain other variable insurance products that we and our affiliates issue. These percentages differ and some advisers or subadvisers (or other affiliates) may pay us more than others. These percentages currently range up to 0.50%. Additionally, an investment adviser or subadviser of an Eligible Fund or its affiliates may provide us with wholesaling services that assist in the distribution of the Contracts and may pay us and/or certain of our 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. We and/or certain of our affiliated insurance companies have joint ownership interests in our affiliated investment adviser MetLife Advisers, LLC, which is formed as a "limited liability company". Our ownership interest in MetLife Advisers, LLC entitles us to profit distributions if the adviser makes a profit with respect to the advisory fees it receives from the Eligible Funds. We will benefit accordingly from assets allocated to the Eligible Funds to the extent they result in profits to the adviser. (See "FEE TABLE -- Annual Eligible Fund Operating Expenses" for information on the management fees paid by the Eligible Funds and the Statement of Additional Information for the Eligible Funds for information on the management fees paid by the advisers to the subadvisers.) Certain Eligible Funds have adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act of 1940. An Eligible Fund's 12b-1 Plan, if any, is described in more detail in the Eligible Fund's prospectus. (See "FEE TABLE -- Annual Eligible Fund Operating Expenses" and "DISTRIBUTION OF THE CONTRACTS.") Any payments we receive pursuant to those 12b-1 Plans are paid to us or our distributor. Payments under an Eligible Fund's 12b-1 Plan decrease the Eligible Fund's investment return. We select the Eligible 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 Eligible Fund's adviser or subadviser is one of our affiliates or whether the Eligible 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 A-30 affiliates in the variable insurance products we issue. We review the Eligible Funds periodically and may remove an Eligible Fund or limit its availability to new purchase payments and/or transfers of Contract Value if we determine that the Eligible Fund no longer meets one or more of the selection criteria, and/or if the Eligible Fund has not attracted significant allocations from Contract Owners. In some cases, we have included Eligible Funds based on recommendations made by selling firms. These selling firms may receive payments from the Eligible Funds they recommend and may benefit accordingly from the allocation of Contract Value to such Eligible Funds. We make certain payments to American Funds Distributors, Inc., principal underwriter for the American Funds Insurance Series. (See "DISTRIBUTION OF THE CONTRACTS.") WE DO NOT PROVIDE ANY INVESTMENT ADVICE AND DO NOT RECOMMEND OR ENDORSE ANY PARTICULAR ELIGIBLE FUND. YOU BEAR THE RISK OF ANY DECLINE IN THE CONTRACT VALUE OF YOUR CONTRACT RESULTING FROM THE PERFORMANCE OF THE ELIGIBLE FUNDS YOU HAVE CHOSEN. SHARE CLASSES OF THE ELIGIBLE FUNDS The Eligible Funds offer various classes of shares, each of which has a different level of expenses. Attached prospectuses for the Eligible Funds may provide information for share classes that are not available through the Contract. When you consult the attached prospectus for any Eligible Fund, you should be careful to refer to only the information regarding the class of shares that is available through the Contract. The following classes of shares are available under the Contract: -- For the Metropolitan Fund, we offer Class B shares of the BlackRock Aggressive Growth, Barclays Capital Aggregate Bond Index, BlackRock Bond Income, BlackRock Diversified, BlackRock Money Market, FI Mid Cap Opportunities, Loomis Sayles Small Cap Growth, MetLife Conservative Allocation, MetLife Conservative to Moderate Allocation, MetLife Mid Cap Stock Index, MetLife Moderate Allocation, MetLife Stock Index, MFS(R) Total Return, Morgan Stanley EAFE(R) Index, Neuberger Berman Mid Cap Value, Oppenheimer Global Equity, Russell 2000(R) Index, T. Rowe Price Large Cap Growth, T. Rowe Price Small Cap Growth, MetLife Moderate to Aggressive Allocation and MetLife Aggressive Allocation Portfolios; Class B shares of BlackRock Large Cap Value, Artio International Stock, BlackRock Legacy Large Cap Growth, BlackRock Strategic Value, Davis Venture Value, FI Value Leaders, Jennison Growth, Loomis Sayles Small Cap Core, Met/Artisan Mid Cap Value, MFS(R) Value, Western Asset Management Strategic Bond Opportunities and Western Asset Management U.S. Government Portfolios for Contracts issued on or after May 1, 2004 and Class E shares of these Portfolios for Contracts issued prior to May 1, 2004. -- For the Met Investors Series Trust, we offer Class B shares of all Portfolios except the Harris Oakmark International Portfolio, which is Class B for Contracts issued on or after May 1, 2003 and Class E for Contracts issued prior to May 1, 2003, the Legg Mason Value Equity Portfolio, which is Class B for Contracts issued on or after May 1, 2004 and Class E for Contracts issued prior to May 1, 2004, and the American Funds Balanced Allocation Portfolio, American Funds Moderate Allocation Portfolio and American Funds Growth Allocation Portfolio, which are Class C. -- For the American Funds Insurance Series, we offer Class 2 shares only. Additionally, shares of the Eligible Funds may be offered to insurance company separate accounts of both variable annuity and variable life insurance contracts and to Qualified Plans. Due to differences in tax treatment and other considerations, the interests of various contractowners participating in, and the interests of Qualified Plans investing in the Eligible Funds may conflict. The Eligible Funds will monitor events in order to identify the existence of any material irreconcilable conflicts and determine what action, if any, should be taken in response to any such conflict. SUBSTITUTION OF INVESTMENTS If investment in the Eligible Funds or a particular Fund is no longer possible, in our judgment becomes inappropriate for the purposes of the Contract, or for any other reason in our sole discretion, we may substitute another Eligible Fund or Funds without your consent. The substituted 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, for some or all classes of Contracts. However, we will not make such substitution without any necessary approval of the Securities and Exchange Commission. Furthermore, we may close subaccounts to allocation of purchase payments or Contract Value, or both, for some or all classes of Contracts, at any time in our sole discretion. If automatic allocations (such as dollar cost averaging, asset rebalancing, or purchase payments made through our automated payment program) are being made to a subaccount that is closed or no longer available due to an Eligible A-31 Fund liquidation, and if you do not give us other instructions, then any amounts that would have gone into the closed subaccount will be allocated to the BlackRock Money Market Subaccount. FIXED ACCOUNT You may allocate purchase payments to the Fixed Account in states that have approved this option (except for Contracts purchased on or after May 1, 2003 for which the C Class has been selected, Contracts which are purchased on or after that date in the state of New York if the optional, GMIB I is selected, or any Contracts which are purchased in New York state if the optional Guaranteed Withdrawal Benefit is selected). The Fixed Account is not available if the GMAB is selected. The Fixed Account is a part of our general account and offers a guaranteed interest rate. (See "THE OPERATION OF THE FIXED ACCOUNT" for more information.) During annuitization, the Fixed Account is not available but a fixed payment option is available. THE CONTRACTS We will issue the Standard Class, C Class, L Class and P Class contracts to an individual through the age of 85 in all states except New York. In New York we will issue the Standard Class to an individual through the age of 82; the L Class and C Class through the age of 85; and the P Class through the age of 80. The maximum issue age for the B Plus Class (for an individual or joint contract owners) is through the age of 80 in all states. Unless otherwise noted, information provided in each section is applicable to all contract classes. The Contract allows you to select one of several different charge structures, each referred to as a Class, based on your specific situation. Each Class imposes varying levels of Withdrawal Charges and Asset-Based Insurance Charges. THE ASSET-BASED INSURANCE CHARGE AMOUNTS DESCRIBED BELOW WILL INCREASE BY 0.25% FOR SUBACCOUNTS INVESTING IN THE AMERICAN FUNDS INSURANCE SERIES. Depending on your expectations and preferences, you can choose the Class that best meets your needs. Prior to issuance, you must select one of the following five available Classes of the Contract: STANDARD CLASS If you do not select a Class, your Contract will be issued as a Standard Class Contract. The Standard Class imposes a Withdrawal Charge on withdrawals equal to a maximum of 7% of each purchase payment, reducing over 7 years. It also imposes an Asset-Based Insurance Charge that ranges from 1.25% to 1.60% during the accumulation period, depending on the death benefit that you select. B PLUS CLASS If you select this Class, we will add a bonus amount to your Contract Value every time you make a purchase payment within the first Contract Year. The amount of the bonus is currently 4% of the amount of the purchase payment. The purchase payment bonus will be allocated among the subaccounts and the Fixed Account in the same manner as your purchase payments. Unless we specifically state otherwise, "purchase payments" in reference to the B Plus Class means purchase payments plus any associated bonus amounts. The B Plus Class imposes a Withdrawal Charge on withdrawals equal to a maximum of 9% of each purchase payment, reducing over 9 years. It also imposes an Asset-Based Insurance Charge that ranges from 1.60% to 1.95% during the Withdrawal Charge period, depending on the death benefit that you select. This charge is reduced by 0.35% after the expiration of the Withdrawal Charge period. The Asset-Based Insurance Charge will be 1.25% after annuitization (see "Asset- Based Insurance Charge"). Generally, an annuity with a purchase payment bonus may have higher charges and expenses than a similar annuity without a purchase payment bonus. Or, it may have less advantageous benefits and other features, or some combination of different charges and benefits. Alternatively, the charges and features could be the same, but we could make less profit or pay lower commissions to sales agents, or both. The Company does not expect to receive any additional profit due to the higher charges for the B Plus Class. In addition, you should know that over time and under certain circumstances (such as withdrawal during the last few years that a Withdrawal Charge applies, or after an extended period of poor market performance), the costs associated with a bonus may exceed the bonus amount and any related earnings. Accordingly, you should always consider the expenses along with the benefits and other features to be sure any annuity or class of annuity meets your financial needs and goals. Additionally, the annuity purchase rates for the B Plus Class Contract are different than for other Classes (see "Amount of Annuity Payments"). The B Plus Class may not be appropriate for use with certain qualified plans where there may be minimal initial purchase payments submitted in the first Contract Year. A-32 If you cancel the Contract by returning it during the Free Look Period, we will deduct any bonus amounts from the refund amount. We will take back the premium credit as if it had never been applied if we recapture a purchase payment bonus. However, the amount returned to you will not be decreased by any investment loss and you will retain any investment gain attributable to the bonus. C CLASS The C Class does not impose any Withdrawal Charge on withdrawals, but imposes a higher Asset-Based Insurance Charge than the Standard Class. This Asset-Based Insurance Charge ranges from 1.60% to 1.95% during the accumulation period, depending on the death benefit that you select. L CLASS The L Class reduces the period of time that a Withdrawal Charge applies on withdrawals, but imposes a higher Asset-Based Insurance Charge than the Standard Class. Specifically, the L Class imposes a Withdrawal Charge on withdrawals for three years equal to a maximum of 7% of each purchase payment (reducing to 6% in the second year and 5% in the third year). It also imposes an Asset-Based Insurance Charge that ranges from 1.50% to 1.85% during the accumulation period, depending on the death benefit that you select. P CLASS The P Class lengthens the period of time that a Withdrawal Charge is imposed on withdrawals, and imposes a lower Asset-Based Insurance Charge than the Standard Class. Specifically, the P Class imposes a Withdrawal Charge on withdrawals equal to a maximum of 8% of each purchase payment, reducing over 9 years. It also imposes an Asset-Based Insurance Charge that ranges from 1.15% to 1.50% during the accumulation period, depending on the death benefit that you select. The Asset-Based Insurance Charge will be 1.25% after annuitization (see "Asset-Based Insurance Charge"). *** We also make available an employee version of a Standard Class or P Class Contract which includes a purchase payment credit feature. The charges and deductions and all other features are the same as other Standard Class or P Class Contracts. Persons eligible to purchase an employee version are age 80 or younger, and are employees, officers, and directors or trustees of the Company, its affiliates, any broker-dealer authorized to sell the Contracts (or any bank affiliated with such a broker-dealer) and any investment adviser or subadviser to the Portfolios, or certain family members of the foregoing. If consistent with applicable state insurance law, for each purchase payment made under an employee version, we will credit the Contract with an additional 5% of each purchase payment. Any employee version purchase payment credit amounts will be applied on a pro-rata basis to the Fixed Account, if available, and the Eligible Funds based upon your allocation for your purchase payments, and will be subject to recapture under the same circumstances as the purchase payment credit for the B Plus Class, described above. No employee version purchase payment credit will apply to purchase payments which consist of money exchanged from other annuity issued by the Company or its affiliates. Other limitations may apply. We reserve the right to change the eligibility for or terms of the employee version. PURCHASE PAYMENTS Currently, the Standard Class and P Class minimum initial purchase payment is $5,000 for non-qualified plans and $2,000 for qualified plans unless we agree otherwise. The minimum subsequent purchase payment for non-qualified or qualified plans is $500 unless we agree otherwise. We will accept a different amount if required by federal tax law. For the C Class and L Class, the minimum initial investment is $25,000 and the minimum subsequent purchase payment is $500, unless we agree otherwise. For the B Plus Class, the minimum initial investment is $10,000 and the minimum subsequent purchase payment is $500, unless we agree otherwise. The following exceptions may apply. -- For the Standard and P Classes only, when the Contract is bought as part of an individual retirement account under Section 408(a) of the Internal Revenue Code (the "Code") or individual retirement annuity under Section 408(b) of the Code (both referred to as "IRAs"), or as a Roth IRA under Section 408A of the Code ("Roth IRA"), if you choose to have monthly purchase payments withdrawn from your financial institution account through debit authorization we will accept a monthly minimum of $100 in lieu of a single $2,000 initial purchase payment. -- For all other Contracts, we may accept monthly subsequent purchase payments as low as $100 per month if they are made through our automated payment program. The minimum initial purchase payment for the selected class must still be met. A-33 -- We reserve the right to refuse purchase payments made via 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 filled. (See "Access To Your Money.") -- If you send your purchase payment 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. -- We will not accept purchase payments made with cash, money orders or travelers checks. We may limit purchase payments made under a Contract. Currently, we may limit total purchase payments to $1,000,000. NO PURCHASE PAYMENTS MAY BE MADE (1) WITHIN SEVEN YEARS PRIOR TO THE CONTRACT'S MATURITY DATE FOR THE STANDARD CLASS; NINE YEARS FOR THE B PLUS CLASS AND THE P CLASS; AND THREE YEARS FOR THE L CLASS OR (2) AFTER A CONTRACT OWNER (OR THE ANNUITANT, IF THE CONTRACT IS NOT OWNED BY AN INDIVIDUAL) REACHES AGE 91. FOR JOINT CONTRACT OWNERS, YOU MAY NOT MAKE A PURCHASE PAYMENT AFTER THE OLDER CONTRACT OWNER REACHES AGE 86. 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 INCOME TAX CONSIDERATIONS.") When we receive your completed application (information) and initial purchase payment, within two business days we will issue your Contract. The Contract Date is the date shown on your Contract. We will contact you if the application is incomplete and we need additional information. We will return initial purchase payments if the application is not complete within five business days unless you agree otherwise. We reserve the right to reject any application. TEN DAY RIGHT TO REVIEW Within 10 days (or more where required by applicable state insurance law) after you receive your Contract you may return it to us or our agent for cancellation. Upon cancellation of the Contract, we will return to you the Contract Value. If required by the insurance law or regulations of the state in which your Contract is issued, however, we will refund all purchase payments made. If you have selected the B Plus Class and you return your Contract during this period, we will recapture the bonus credit amount. The amount returned to you will not be decreased by any investment loss and you will retain any investment gain attributable to the bonus. ALLOCATION OF PURCHASE PAYMENTS When you purchase a Contract, you may allocate your purchase payments to the subaccounts and/or the Fixed Account (subject to limitations). You may not choose more than 18 subaccounts (including the Fixed Account) at the time you submit your initial purchase payment. You must allocate a minimum of $500 dollars to each account you select. However, for IRAs and Roth IRAs, if purchase payments are less than $2,000, you may allocate the payments to a maximum of four accounts. If you wish to allocate the payment to more than 18 subaccounts (including the Fixed Account), we must have your request to allocate future purchase payments to more than 18 subaccounts on record before we can apply your subsequent payment to your chosen allocation. We convert your purchase payments, allocated to the Eligible Funds, to a unit of interest known as an Accumulation Unit. The number of Accumulation Units credited to the Contract is determined by dividing the purchase payment by the Accumulation Unit Value for the selected subaccounts at the end of the valuation day we receive your purchase payment at our Annuity Administrative Office. (See "Requests and Elections" for more information on receipt of purchase payments.) INVESTMENT ALLOCATION RESTRICTIONS FOR CERTAIN RIDERS If you choose the GMIB Plus II, Lifetime Withdrawal Guarantee II, and/or Enhanced Death Benefit rider, until the rider terminates, we will require you to allocate your purchase payments and Contract Value as described in the "Allocation" subsection below. If you choose GMIB Plus I rider, until the rider terminates, we will require you to allocate your purchase payments and Contract Value solely among the Fixed Account, BlackRock Money Market Portfolio, American Funds Balanced A-34 Allocation Portfolio, American Funds Growth Allocation Portfolio, American Funds Moderate Allocation Portfolio, Met/Franklin Templeton Founding Strategy Portfolio, the MetLife Conservative Allocation Portfolio, MetLife Conservative to Moderate Allocation Portfolio, MetLife Moderate Allocation Portfolio, MetLife Moderate to Aggressive Allocation Portfolio, SSgA Growth ETF Portfolio and/or SSgA Growth and Income ETF Portfolio (you may participate in the Enhanced Dollar Cost Averaging (EDCA) program, subject to restrictions). If you choose the Lifetime Withdrawal Guarantee I rider, until the rider terminates, we will require you to allocate your purchase payments and Contract Value solely among the Fixed Account, BlackRock Money Market Portfolio, American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio, American Funds Moderate Allocation Portfolio, Met/Franklin Templeton Founding Strategy Portfolio, the MetLife Conservative Allocation Portfolio, MetLife Conservative to Moderate Allocation Portfolio, MetLife Moderate Allocation Portfolio, MetLife Moderate to Aggressive Allocation Portfolio, SSgA Growth ETF Portfolio and/or SSgA Growth and Income ETF Portfolio (you may participate in the EDCA program, subject to restrictions). If you choose the Guaranteed Minimum Accumulation Benefit rider, until the rider terminates, we will require you to allocate your purchase payments and Contract Value solely to one of the MetLife Asset Allocation Program portfolios, excluding the MetLife Moderate to Aggressive Allocation Portfolio and the MetLife Aggressive Allocation Portfolio (you may participate in the EDCA program, subject to restrictions). ALLOCATION. If you elect GMIB Plus II, the Lifetime Withdrawal Guarantee II, or the Enhanced Death Benefit, you must comply with the following investment allocation restrictions. SPECIFICALLY, YOU MUST ALLOCATE ACCORDING TO EITHER (A) OR (B) BELOW: (A) You must allocate: - 100% of your purchase payments or Contract Value to the Fixed Account, BlackRock Money Market Portfolio, American Funds Balanced Allocation Portfolio, American Funds Moderate Allocation Portfolio, MetLife Conservative Allocation Portfolio, MetLife Conservative to Moderate Allocation Portfolio, MetLife Moderate Allocation Portfolio and/or SSgA Growth and Income ETF Portfolio. For Contracts issued based on applications and necessary information received at our Annuity Administrative Office in good order before the close of the New York Stock Exchange on May 1, 2009, the following subaccounts are also available under option (A): the MetLife Moderate to Aggressive Allocation Portfolio, American Funds Growth Allocation Portfolio, Met/Franklin Templeton Founding Strategy Portfolio and SSgA Growth ETF Portfolio. OR (B) You must allocate: - at least 30% of purchase payments or Contract Value to Platform 1 subaccounts and/or to the Fixed Account; - up to 70% of purchase payments or Contract Value to Platform 2 subaccounts; - up to 15% of purchase payments or Contract Value to Platform 3 subaccounts; and - up to 15% of purchase payments or Contract Value to Platform 4 subaccounts. For Contracts issued based on applications and necessary information received at our Annuity Administrative Office in good order before the close of the New York Stock Exchange on May 1, 2009, the following investment allocation restrictions apply under option (B): you must allocate at least 15% of purchase payments or Contract Value to Platform 1 subaccounts and/or to the Fixed Account and you may allocate up to 85% of purchase payments or Contract Value to Platform 2 subaccounts (the percentages for Platforms 3 and 4 are the same as those listed above). See the "EDCA" section below for information on allocating purchase payments to the EDCA account under option (B). A-35 The subaccounts in each Platform are: PLATFORM 1 SUBACCOUNTS American Funds Bond Barclays Capital Aggregate Bond Index BlackRock Bond Income BlackRock Money Market PIMCO Inflation Protection Bond PIMCO Total Return Western Asset Management U.S. Government PLATFORM 2 SUBACCOUNTS AMERICAN FUNDS GROWTH AMERICAN FUNDS GROWTH-INCOME ARTIO INTERNATIONAL STOCK BLACKROCK DIVERSIFIED BLACKROCK LARGE CAP CORE BLACKROCK LARGE CAP VALUE BLACKROCK LEGACY LARGE CAP GROWTH* DAVIS VENTURE VALUE FI VALUE LEADERS HARRIS OAKMARK INTERNATIONAL JANUS FORTY JENNISON GROWTH LEGG MASON PARTNERS AGGRESSIVE GROWTH LEGG MASON VALUE EQUITY LORD ABBETT BOND DEBENTURE MET/FRANKLIN INCOME MET/FRANKLIN MUTUAL SHARES MET/TEMPLETON GROWTH METLIFE STOCK INDEX MFS(R) RESEARCH INTERNATIONAL MFS(R) TOTAL RETURN MFS(R) VALUE MORGAN STANLEY EAFE(R) INDEX OPPENHEIMER CAPITAL APPRECIATION OPPENHEIMER GLOBAL EQUITY T. ROWE PRICE LARGE CAP GROWTH WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES PLATFORM 3 SUBACCOUNTS BlackRock Aggressive Growth FI Mid Cap Opportunities Lazard Mid Cap Met/Artisan Mid Cap Value MetLife Mid Cap Stock Index Neuberger Berman Mid Cap Value T. Rowe Price Mid Cap Growth PLATFORM 4 SUBACCOUNTS AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION BLACKROCK STRATEGIC VALUE CLARION GLOBAL REAL ESTATE LOOMIS SAYLES SMALL CAP CORE LOOMIS SAYLES SMALL CAP GROWTH MET/AIM SMALL CAP GROWTH RUSSELL 2000(R) INDEX RCM TECHNOLOGY T. ROWE PRICE SMALL CAP GROWTH ------- * Effective after 4:00 p.m. Eastern Time on May 1, 2009, FI Large Cap merged with and into BlackRock Legacy Large Cap Growth. If you select the FI Large Cap subaccount on your application and we receive your application after May 1, 2009, your purchase payments will automatically be allocated to BlackRock Legacy Large Cap Growth. If you do not want your purchase payment to be allocated to BlackRock Legacy Large Cap Growth, you should choose a subaccount other than the FI Large Cap subaccount on your application. YOUR PURCHASE PAYMENTS AND TRANSFER REQUESTS MUST BE ALLOCATED IN ACCORDANCE WITH THE ABOVE LIMITATIONS. WE WILL REJECT ANY PURCHASE PAYMENTS OR TRANSFER REQUESTS THAT DO NOT COMPLY WITH THE ABOVE LIMITATIONS. We determine whether a subaccount is classified as Platform 1, Platform 2, Platform 3 or Platform 4. We may determine or change the classification of a subaccount in the event that a subaccount is added, deleted, substituted, merged or otherwise reorganized. In that case, any change in classification will only take effect as to your contract in the event you make a new purchase payment or request a transfer among subaccounts. We will provide you with prior written notice of any changes in classification of subaccounts. REBALANCING. If you choose to allocate according to (B) above, we will rebalance your Contract Value on a quarterly basis based on your most recent allocation of purchase payments that complies with the allocation limitations described above. We will also rebalance your Contract Value when we receive a subsequent purchase payment that is accompanied by new allocation instructions (in addition to the quarterly rebalancing). We will first rebalance your Contract Value on the date that is three months from the rider issue date; provided however, if a quarterly rebalancing date occurs on the 29th, 30th or 31st of a month, we will instead rebalance on the 1st day of the A-36 following month. We will subsequently rebalance your Contract Value on each quarter thereafter on the same day. In addition, if a quarterly rebalancing date is not a business day the reallocation will occur on the next business day. Withdrawals from the contract will not result in rebalancing on the date of withdrawal. The rebalancing requirement described above does not apply if you choose to allocate according to (A) above. EDCA. If you choose to allocate according to (B) above and you choose to allocate a purchase payment to the EDCA account, that entire purchase payment must be allocated only to the EDCA account. Any transfer from an EDCA account must be allocated in accordance with the limitations described under (B) above. In addition, if you made previous purchase payments before allocating a purchase payment to the EDCA account, all transfers from an EDCA account must be allocated to the same subaccounts as your most recent allocations for purchase payments. CHANGING PURCHASE PAYMENT ALLOCATION INSTRUCTIONS. You may change your purchase payment allocation instructions under (B) above at any time by providing notice to us at our Annuity Administrative Office or by any other method acceptable to us, provided such instructions comply with the allocation limits described above. If you provide new allocation instructions for purchase payments and if these instructions conform to the allocation limits described under (B) above, then we will rebalance in accordance with the revised allocation instructions. Any future purchase payment, EDCA account transfer and quarterly rebalancing allocations will be automatically updated in accordance with these new instructions. TRANSFERS. Please note that any transfer request must result in a Contract Value that meets the allocation limits described above. Any transfer request will not cause your allocation instructions to change unless you provide us with a separate instruction at the time of transfer. CONTRACT VALUE AND ACCUMULATION UNIT VALUE We determine the value of your Contract by multiplying the number of Accumulation Units credited to your Contract by the appropriate Accumulation Unit Values. The Accumulation Unit Value for each Class and subaccount depends on the net investment experience of its corresponding Eligible Fund and reflects the deduction of all fees and expenses. The Accumulation Unit Value of each Class of each subaccount was initially set at $1.00. We determine the Accumulation Unit Value by multiplying the most recent Accumulation Unit Value by the net investment factor for that day. The net investment factor is determined for each Class for each subaccount and reflects the change in net asset value per share of the corresponding Eligible Fund as of the close of regular trading on the New York Stock Exchange from the net asset value most recently determined, the amount of dividends or other distributions made by that Eligible Fund since the last determination of net asset value per share, and daily deductions from the average daily net asset value of the subaccount for the Separate Account annual expenses which vary depending upon the Class, death benefit, and subaccounts you choose. (See "Asset-Based Insurance Charge, Withdrawal Charge and Other Sales Deductions.") The net investment factor may be greater or less than one. We describe the formula for determining the net investment factor under the caption "Net Investment Factor" in the Statement of Additional Information. If you select the Fixed Account option, the total Contract Value includes the amount of Contract Value held in the Fixed Account. (See "THE FIXED ACCOUNT.") PAYMENT ON DEATH PRIOR TO ANNUITIZATION Prior to annuitization, your Contract's Death Proceeds will be determined as of the end of the business day that we receive, at our Annuity Administration Office, both due proof of the death of: (1) you as Contract Owner; (2) the first Contract Owner to die, if your Contract has Joint Owners; or (3) the Annuitant, if your Contract is not owned in an individual capacity and an acceptable election for the payment method. (If there is no named Beneficiary under a joint Contract, the Death Proceeds will be paid to the surviving Contract Owner.) You will receive the Standard Death Benefit unless you chose to receive one of three optional death benefits only two of which are available in any state--the Annual Step-Up Death Benefit, the Greater of Annual Step-Up or 5% Annual Increase Death Benefit, or the Enhanced Death Benefit. The first two optional death benefits will increase the Asset-Based Insurance Charge applicable to your Contract. The Enhanced Death Benefit is available for an additional charge. You may also elect to purchase, for an additional charge, the Earnings Preservation Benefit Rider, which provides an additional death benefit to assist with covering taxes payable at death. After annuitization, the charges for the Enhanced Death Benefit Rider and Earnings Preservation Benefit Rider will not be assessed. MULTIPLE BENEFICIARIES. Where there are multiple Beneficiaries, the Death Proceeds will only be determined as of the time the first Beneficiary submits the necessary documentation in good order. If the Death Proceeds payable is A-37 an amount that exceeds the Contract Value on the day it is determined, we will apply to the Contract at that time an amount equal to the difference between the Death Proceeds payable and the Contract Value, in accordance with the current allocation of Contract Value. This amount remains in the Variable Account (and/or the Fixed Account, if applicable) until each of the other Beneficiaries submits the necessary documentation in good order to claim their death benefit. Any Death Proceeds amounts held in the Variable Account on behalf of the remaining Beneficiaries are subject to investment risk. There is no additional death benefit guarantee. STANDARD DEATH BENEFIT The Standard Death Benefit at any time will be the greater of: (1) the Contract Value; or (2) total Purchase Payments, reduced proportionately by the percentage reduction in Contract Value attributable to each partial withdrawal (including any applicable Withdrawal Charge). If you are a natural person and change the Contract Owner to someone other than your spouse during the accumulation period, the Standard Death Benefit payable when the new Contract Owner dies will be the greater of: (1) the Contract Value; or (2) the Contract Value as of the effective date of the change of Contract Owner, increased by any purchase payments made and reduced proportionately by the percentage reduction in Contract Value attributable to any partial withdrawals (including any applicable Withdrawal Charge) taken after that date. ANNUAL STEP-UP DEATH BENEFIT If you elect the Annual Step-Up Death Benefit, the death benefit will be the greater of: (1) the Contract Value; or (2) the Highest Anniversary Value as defined below. On the issue date, the Highest Anniversary Value is equal to your initial purchase payment. Thereafter, the Highest Anniversary Value as recalculated will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in Contract Value attributable to each subsequent partial withdrawal. On each Contract Anniversary prior to the Contract Owner's 81st birthday, the Highest Anniversary Value will be recalculated and set equal to the greater of the Highest Anniversary Value before the recalculation or the Contract Value on the date of the recalculation. If you are a natural person and change the Contract Owner to someone other than your spouse, the death benefit is equal to the greatest of: (a) the Contract Value; (b) the Contract Value as of the effective date of the change of Contract Owner, increased by purchase payments received after that date and reduced proportionately by the percentage reduction in Contract Value attributable to each partial withdrawal (including any applicable Withdrawal Charge) made after that date; or (c) the Highest Anniversary Value, except that, on the effective date of the Contract Owner change, the Highest Anniversary Value will be recalculated and set equal to the Contract Value on that date. If a non-natural person owns the Contract, then the Annuitant shall be deemed to be Contract Owner in determining the death benefit. If Joint Owners are named, the age of the older will be used to determine the death benefit amount. You may not purchase this benefit if you are 80 years of age or older. GREATER OF ANNUAL STEP-UP OR 5% ANNUAL INCREASE DEATH BENEFIT In states where the Greater of Annual Step-Up or 5% Annual Increase Death Benefit rider has been approved and the Enhanced Death Benefit has not been approved, you may select the Greater of Annual Step-Up or 5% Annual Increase Death Benefit rider if you are age 79 or younger at the effective date of your Contract. If you select the Greater of Annual Step-Up or 5% Annual Increase Death Benefit rider, the death benefit will be the greater of: (1) the Contract Value; or (2) the Enhanced Death Benefit value. A-38 The Enhanced Death Benefit value is the greater of (a) or (b) below: (a) Highest Anniversary Value (as defined above for the Annual Step-Up Death Benefit). (b) Annual Increase Amount: On the Issue Date, the Annual Increase Amount is equal to your initial purchase payment. Thereafter, the Annual Increase Amount is equal to (i) less (ii), where: (i) is purchase payments accumulated at the Annual Increase Rate. The Annual Increase Rate is 5% per year through the Contract Anniversary immediately prior to the Contract Owner's 81st birthday, and 0% per year thereafter; and (ii) Withdrawal Adjustments accumulated at the Annual Increase Rate. A Withdrawal Adjustment is equal to the value of the Annual Increase Amount immediately prior to a withdrawal multiplied by the percentage reduction in Contract Value attributable to that partial withdrawal (including any applicable Withdrawal Charge). If you are a natural person and change the Contract Owner to someone other than your spouse, the death benefit is equal to the greater of the Contract Value or the Enhanced Death Benefit; however, for purposes of calculating the Enhanced Death Benefit value: (a) the Highest Anniversary Value equals your Contract Value as of the date the Contract Owner is changed; and (b) the current Annual Increase Amount equals your Contract Value as of the date the Contract Owner is changed. After that date, the Contract Value on the date the Contract Owner is changed will be treated as the initial purchase payment, and purchase payments received and partial withdrawals taken (including any applicable Withdrawal Charge) prior to the changes of Contract Owner will not be taken into account. If a non-natural person owns the Contract, then the Annuitant will be treated as the Contract Owner in determining the death benefit amount. If Joint Owners are named, the age of the older will be used to determine the death benefit amount. You may not purchase this benefit if you are 80 years of age or older. ENHANCED DEATH BENEFIT RIDER In states where approved, you may select the version of the Enhanced Death Benefit rider described below if you are age 75 or younger at the effective date of your Contract, you either (a) have not elected any living benefit rider or (b) have elected the GMIB Plus II rider and we receive, in good order, your application and necessary information at our Annuity Administrative Office on and after May 4, 2009. In order for us to issue you the previous version of this rider (that has a lower charge and different features), we must receive your application and necessary information at our Annuity Administrative Office, in good order, before the close of the New York Stock Exchange on May 1, 2009. If you select the Enhanced Death Benefit rider, the amount of the death benefit will be the greater of: (1) the Contract Value; or (2) the death benefit base. The death benefit base provides protection against adverse investment experience. It guarantees that the death benefit will not be less than the greater of: (1) the highest Contract Value on any anniversary (adjusted for withdrawals), or (2) the amount of your initial investment (adjusted for withdrawals), accumulated at 5% per year. The death benefit base is the greater of (a) or (b) below: (a) Highest Anniversary Value: On the date we issue your Contract, the Highest Anniversary Value is equal to your initial purchase payment. Thereafter, the Highest Anniversary Value will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in Contract Value attributable to each partial withdrawal. The percentage reduction in Contract Value is the dollar amount of the withdrawal plus any applicable Withdrawal Charges divided by the Contract Value immediately preceding such withdrawal. On each Contract Anniversary prior to your 81st birthday, the Highest Anniversary Value will be recalculated to equal the greater of the Highest Anniversary Value before the recalculation or the Contract Value on the date of the recalculation. The Highest Anniversary Value does not change after the Contract Anniversary immediately preceding the Owner's 81st birthday, except that it is increased for each subsequent purchase payment and reduced proportionately by the percentage reduction in Contract Value attributable to each subsequent withdrawal (including any applicable Withdrawal Charge). A-39 (b) Annual Increase Amount: On the date we issue your Contract, the Annual Increase Amount is equal to your initial purchase payment. All purchase payments received within 120 days of the date we issue your Contract will be treated as part of the initial purchase payment for this purpose. Thereafter, the Annual Increase Amount is equal to (i) less (ii), where: (i) is purchase payments accumulated at the annual increase rate. The annual increase rate is 5% per year through the Contract Anniversary immediately prior to your 91st birthday, and 0% per year thereafter; and (ii) is withdrawal adjustments accumulated at the annual increase rate. The annual increase rate is 5% per year through the Contract Anniversary immediately prior to your 91st birthday, and 0% per year thereafter. The withdrawal adjustment for any partial withdrawal in a Contract Year is equal to the Annual Increase Amount immediately prior to the withdrawal multiplied by the percentage reduction in Contract Value attributable to that partial withdrawal (including any applicable Withdrawal Charge). However, (1) if the partial withdrawal occurs before the Contract Anniversary immediately prior to your 91st birthday; (2) if all partial withdrawals in a Contract Year are payable to the Owner (or the Annuitant if the Owner is a non-natural person) or other payees that we agree to; and (3) if total partial withdrawals in a Contract Year are not greater than 5% of the Annual Increase Amount on the previous Contract Anniversary, the total withdrawal adjustments for that Contract Year will be set equal to the dollar amount of total partial withdrawals in that Contract Year and will be treated as a single withdrawal at the end of that Contract Year. The Annual Increase Amount does not change after the Contract Anniversary immediately preceding the Owner's 91st birthday, except that it is increased for each subsequent purchase payment and reduced by the withdrawal adjustments described in (b)(ii) above. For Contracts issued based on applications and necessary information received in good order at our Annuity Administrative Office on or before May 1, 2009, we offered a version of the Enhanced Death Benefit rider that is no longer available. The prior version is the same as the current version except that: (1) the annual increase rate for the Annual Increase Amount and for withdrawal adjustments is 6% with respect to (b)(i) and (ii) above; (2) different investment allocation restrictions apply (see "THE CONTRACTS--Allocation of Purchase Payments--Investment Allocation Restrictions for Certain Riders"); and (3) different rider charges apply (see ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS--Enhanced Death Benefit Rider"). OPTIONAL STEP-UP. On each Contract Anniversary on or after the first anniversary following the effective date of the rider, you may elect an Optional Step-Up provided that (1) the Contract Value exceeds the Annual Increase Amount immediately before the Step-Up; and (2) the Owner (or oldest Joint Owner or Annuitant if the Contract is owned by a non-natural person) is not older than age 80 on the date of the Optional Step-Up. We must receive your request to exercise the Optional Step-Up in writing at our Annuity Administrative Office or any other method acceptable to us. We must receive your request prior to the Contract Anniversary for an Optional Step-Up to occur on that Contract Anniversary. The Optional Step-Up will: (a) Reset the Annual Increase Amount to the Contract Value on the Contract Anniversary following the receipt of an Optional Step-Up election; and (b) Reset the Enhanced Death Benefit rider charge to a rate we shall determine that does not exceed the maximum Optional Step-Up charge (1.50%) 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. On the date of the Step-Up, the Contract Value on that day will be treated as a single purchase payment received on the date of the Step-Up for purposes of determining the Annual Increase Amount after the Step-Up. All purchase payments and withdrawal adjustments previously used to calculate the Annual Increase Amount will be set equal to zero on the date of the Step-Up. When you elect the Optional Step-Up, provided the above requirements are met, you may elect either: (1) a one time Optional Step-Up at any Contract Anniversary; or (2) Optional Step-Ups to occur under the Automatic Annual Step-Up (on any Contract Anniversary while this election is in effect, the Annual Increase Amount will reset to the Contract Value automatically). In the event that the charge applicable to Contract purchases at the time of the Step-Up is higher than your current Enhanced Death Benefit rider charge, you will be notified in writing a minimum of 30 days in advance of the applicable Contract Anniversary and be informed that you may choose to decline the Automatic Annual Step-Up. If you A-40 decline the Automatic Annual Step-Up, you must notify us in accordance with our Administrative Procedures (currently we require you to submit your request in writing to our Annuity Administrative Office no less than seven calendar days prior to the applicable Contract Anniversary). Once you notify us of your decision to decline the Automatic Annual Step-Up, you will no longer be eligible for future Automatic Annual Step-Ups until you notify us in writing to our Annuity Administrative Office that you wish to reinstate the Step-Ups. This reinstatement will take effect at the next Contract Anniversary after we receive your request for reinstatement. If you have also elected the GMIB Plus II rider and you elect Optional Step-Ups to occur under the Automatic Annual Step-up, it will remain in effect through the seventh Contract Anniversary following the date you make the election. You may make a new election if you want Automatic Annual Step-Ups to continue after the seventh Contract Anniversary. You may discontinue Automatic Annual Step-Ups at any time by notifying us in writing to our Annuity Administrative Office (or by any other method acceptable to us), at least 30 days prior to the Contract Anniversary following the date you make this election. If you discontinue Automatic Annual Step-Ups, the Enhanced Death Benefit rider (and the rider charge) will continue, and you may choose to elect a one time Optional Step-Up or reinstate Automatic Annual Step-Ups as described above. INVESTMENT ALLOCATION RESTRICTIONS. If you select the Enhanced Death Benefit rider, there are certain investment allocation restrictions. (See "THE CONTRACTS--Investment Allocation Restrictions for Certain Riders.") If you elect the Enhanced Death Benefit, you may not participate in the Dollar Cost Averaging (DCA) program. However, you may elect to participate in the Enhanced Dollar Cost Averaging (EDCA) program, provided that your destination investment portfolios are selected in accordance with the investment allocation restrictions. TERMINATION OF THE ENHANCED DEATH BENEFIT. The Enhanced Death Benefit will terminate upon the earliest of: (a) The date you make a total withdrawal of your Contract Value (a pro rata portion of the rider charge will be assessed); (b) The date there are insufficient funds to deduct the Enhanced Death Benefit rider charge from your Contract Value; (c) The date you annuitize your Contract (a pro rata portion of the rider charge will be assessed); (d) A change of the Owner or Joint Owner (or Annuitant if the Owner is a non-natural person), subject to our administrative procedures; (e) The date you assign your Contract, subject to our administrative procedures; (f) The date the death benefit amount is determined (excluding the determination of the death benefit amount under the spousal continuation option); or (g) Termination of the Contract to which this rider is attached. (See Appendix F for examples of the Enhanced Death Benefit.) EARNINGS PRESERVATION BENEFIT RIDER The Earnings Preservation Benefit Rider is an optional rider that provides an additional death benefit ("Additional Death Benefit") to assist with covering income taxes payable upon death. This rider may not be suitable for all Contract Owners (particularly those approaching age 70 1/2) or in all circumstances. You should discuss with your registered representative whether this rider is appropriate for your needs and circumstances. The Additional Death Benefit Amount will be calculated upon the death of the first Owner or Joint Owner. If the spouse is the beneficiary and elects to continue the Contract, then he or she may: (1) continue the rider so that the Additional Death Benefit is payable upon his or her death; or (2) discontinue the rider and have the Additional Death Benefit that would have been payable at the Owner's death added to the Contract Value. The rider terminates, and the rider fee is no longer deducted, upon payment of the Additional Death Benefit. Before the Contract Anniversary immediately prior to the Contract Owner's 81st birthday, the Earnings Preservation Benefit is equal to the applicable Benefit Percentage from the table below times the amount calculated by (a)-(b) below: (a) is the death benefit under your Contract; and (b) total purchase payments not withdrawn. For purposes of calculating this value, partial withdrawals (including any applicable Withdrawal Charge) are first applied against earnings in the Contract and then against purchase payments. A-41 On or after the Contract Anniversary immediately prior to the Contract Owner's 81st birthday, the Earnings Preservation Benefit is equal to the applicable Benefit Percentage times the amount calculated by (a)-(b) below: (a) the death benefit amount on the Contract Anniversary immediately prior to the Contract Owner's 81st birthday, increased by subsequent purchase payments and reduced proportionately by the percentage reduction in Contract Value attributable to each subsequent partial withdrawal (including any applicable Withdrawal Charge); and (b) total purchase payments not withdrawn. For purposes of calculating this value, partial withdrawals (including any applicable Withdrawal Charge) are first applied against earnings in the Contract, and then against purchase payments. BENEFIT PERCENTAGE
ISSUE AGE PERCENTAGE --------- ---------- Ages 69 or younger 40% Ages 70-79 25% Ages 80 and above 0%
If a non-natural person owns the Contract, then the Annuitant will be treated as the Contract Owner in determining the Earnings Preservation Benefit. If Joint Owners are named, the age of the older Contract Owner will be used to determine the Earnings Preservation Benefit. You may not purchase this benefit if you are 80 years of age or older. WE DEDUCT A DAILY FEE AT THE ANNUAL RATE OF 0.25% OF AVERAGE DAILY NET ASSETS IN THE SUBACCOUNTS FOR THIS RIDER PRIOR TO ANNUITIZATION. AFTER ANNUITIZATION THE CHARGE WILL NOT BE ASSESSED. OPTIONS FOR DEATH PROCEEDS For non-tax qualified plans, the Code requires that if the Contract Owner (or, if applicable, Annuitant) dies prior to annuitization, we must pay Death Proceeds within 5 years from the date of death or apply the Death Proceeds to a payment option to begin within one year, but not to exceed the life or life expectancy of the beneficiary. We will pay the Death Proceeds, reduced by the amount of any applicable premium tax charge, in a lump sum or apply them to provide one or more of the fixed or variable methods of payment available (see "Annuity Options"). (Certain annuity payment options are not available for the Death Proceeds.) You may elect the form of payment during your lifetime (or during the Annuitant's lifetime, if the Contract is not owned by an individual). This election, particularly for Contracts issued in connection with retirement plans qualifying for tax benefited treatment, is subject to any applicable requirements of federal tax law. For Death Proceeds to be paid other than immediately in lump sum, any portion in the Variable Account remains in the Variable Account until distribution begins. From the time the Death Proceeds are determined until complete distribution is made, any amount in the Variable Account will be subject to investment risk. The beneficiary bears such investment risk. Where there are multiple Beneficiaries, the Death Proceeds will only be determined as of the time the first Beneficiary submits the necessary documentation in good order (see "Payment on Death Prior to Annuitization--Multiple Beneficiaries" above for more information). If you have not elected a form of payment, your Beneficiary has 90 days after we receive due proof of death, at our Annuity Administrative Office, to make an election. If you make no election, your Contract will be continued if permitted under our rules then in effect. Whether and when such an election is made could affect when the Death Proceeds are deemed to be received under the tax laws. The Beneficiary may: (1) receive payment in a single sum; (2) receive payment in the form of certain annuity payment options that begin within one year of the date of death; or (3) if eligible, continue the Contract under the Beneficiary Continuation provision or the Spousal Continuation provision, as further described below. We may also offer a payment option under which your Beneficiary may receive payments, over a period not extending beyond his or her life expectancy, under a method of distribution similar to the distribution of required minimum distributions from Qualified Contracts. IF THE BENEFICIARY DOES NOT MAKE AN ELECTION WITHIN 90 DAYS AFTER WE RECEIVE DUE PROOF OF DEATH, AND THE BENEFICIARY IS ELIGIBLE FOR EITHER THE BENEFICIARY CONTINUATION OR THE SPOUSAL CONTINUATION PROVISION, WE WILL CONTINUE THE CONTRACT UNDER THE APPLICABLE PROVISION. A-42 There are comparable rules for distribution on the death of the Annuitant under tax-qualified plans. However, for the Qualified Contracts, if Death Proceeds are applied to a payment option, payment must begin no later than the end of the calendar year immediately following the year of death. Please check with your registered representative regarding the availability of the following in your state. We may also offer a payment option, for certain Qualified Contracts and Non-Qualified Contracts, under which your Beneficiary may receive payments, over a period not extending beyond his or her life expectancy, under a method of distribution similar to the distribution of required minimum distributions from Individual Retirement Accounts. If this option is elected, we will issue a new Contract to your Beneficiary in order to facilitate the distribution of payments. The new Contract will be of the same class as your Contract, except if your Contract is a B Plus Class Contract, in which case we will issue a C Class Contract. Your Beneficiary may choose any optional death benefit available under the new Contract. Upon the death of your Beneficiary, the death benefit would be required to be distributed to your Beneficiary's beneficiary at least as rapidly as under the method of distribution in effect at the time of your Beneficiary's death. Moreover, if the Beneficiary under a Qualified Contract is the Annuitant's spouse, the tax law also generally allows distributions to begin by the year in which the Annuitant would have reached 70 1/2 (which may be more or less than five years after the Annuitant's death). (See "Federal Income Tax Considerations.") To the extent permitted under tax law, and in accordance with our procedures, your designated Beneficiary is permitted to make additional purchase payments consisting of monies which are direct transfers (as permitted under tax law) from other Qualified or Non-Qualified Contracts, depending on which type of Contract you own, held in the name of the decedent. Your Beneficiary is also permitted to choose some of the optional benefits available under the Contract, but certain Contract provisions or programs may not be available. The beneficiary may be permitted to choose some of the optional benefits available under the contract but no optional living benefit riders are available and certain contract provisions or programs may not be available. If you (or, if applicable, the Annuitant) die on or after annuitization, the remaining interest in the Contract will be distributed as quickly as under the method of distribution in effect on the date of death. --TOTAL CONTROL ACCOUNT A Beneficiary may elect to have the Contract's death proceeds paid through an account called the Total Control Account at the time for payment. The Total Control Account is an interest-bearing account through which the Beneficiary has complete access to the proceeds, with unlimited check-writing privileges. We credit interest to the account at a rate that will not be less than a minimum guaranteed rate. Assets backing the Total Control Accounts are maintained in our general account and are subject to the claims of our creditors. We will bear the investment experience of such assets; however, regardless of the investment experience of such assets, the interest credited to the Total Control Account will never fall below the applicable guaranteed minimum rate. Because we bear the investment experience of the assets backing the Total Control Accounts, we may receive a profit from these assets. The Total Control Account is not insured by the FDIC or any other governmental agency. --BENEFICIARY CONTINUATION Since tax law requires that Death Proceeds be distributed within five years after the death of a Contract Owner (or, if applicable, the Annuitant), the Beneficiary Continuation provision permits a Beneficiary to keep the Death Proceeds in the Contract and to continue the Contract for a period ending five years after the date of death. The Death Proceeds must meet our published minimum (currently $5,000 for non-tax qualified Contracts and $2,000 for tax qualified Contracts) in order for the Contract to be continued by any Beneficiary. IF THE BENEFICIARY DOES NOT MAKE AN ELECTION WITHIN 90 DAYS AFTER WE RECEIVE DUE PROOF OF DEATH, AT OUR ANNUITY ADMINISTRATIVE OFFICE, WE WILL CONTINUE THE CONTRACT UNDER THE BENEFICIARY CONTINUATION PROVISION FOR A PERIOD ENDING FIVE YEARS AFTER THE DATE OF DEATH. IF BENEFICIARY CONTINUATION IS NOT AVAILABLE BECAUSE THE BENEFICIARY'S SHARE OF THE DEATH PROCEEDS DOES NOT MEET OUR PUBLISHED MINIMUM, HOWEVER, WE WILL PAY THE DEATH PROCEEDS IN A SINGLE SUM UNLESS THE BENEFICIARY ELECTS A PERMISSIBLE ANNUITY PAYMENT OPTION WITHIN 90 DAYS AFTER WE RECEIVE DUE PROOF OF DEATH. The Death Proceeds become the Contract Value on the date of the continuation and are allocated among the accounts in the same proportion as they had been prior to the continuation. In addition, the Beneficiary will have the right to make transfers and fully or partially withdraw his or her portion of the Contract Value, but may not make further purchase payments or exercise the dollar cost averaging feature. No minimum guaranteed death benefit A-43 amount or Withdrawal Charge will apply. Five years from the date of death of the Contract Owner (or, if applicable, the Annuitant), we will pay the Beneficiary's Contract Value to the Beneficiary. If the Beneficiary dies during that five year period, the Beneficiary's death benefit is the Contract Value on the date when we receive due proof of death. --SPECIAL OPTIONS FOR SPOUSES Under the Spousal Continuation provision, the Contract may be continued after your death prior to annuitization in certain situations: if a Contract has spousal Joint Owners who are also the only Beneficiaries under the Contract, or if only one spouse is the Contract Owner (or, if applicable, the Annuitant) and the other spouse is the primary Beneficiary. In either of these situations, the surviving spouse may elect, within 90 days after we receive due proof of your death, at our Annuity Administrative Office,: (1) to receive the Death Proceeds either in one sum or under a permitted payment option; (2) to continue the Contract under the Beneficiary Continuation provision; or (3) to continue the Contract under the Spousal Continuation provision with the surviving spouse as the Contract Owner (or, if applicable, the Annuitant). If the surviving spouse elects to continue the Contract under the Spousal Continuation provision, the Contract Value under the continued Contract will be adjusted as of the date we received due proof of death to an amount equal to the death benefit amount that would have been payable at the Contract Owner's death (excluding any amount that would have been payable under the Earnings Preservation Benefit Rider if the surviving spouse elects to continue the Rider). Any excess of the death benefit amount over the Contract Value will be allocated among the accounts in the same proportion as they had been prior to the continuation. The spouse is permitted to make additional purchase payments. The spouse is not permitted to choose any optional riders available under the contract unless the deceased spouse had previously purchased the benefit at issue of the contract. For purposes of the death benefit on the continued contract, Death Proceeds will be calculated the same as prior to continuation except all values used to calculate Death Proceeds, which may include a Highest Anniversary Value and/or an Annual Increase Amount (depending on the optional benefit), are reset on the date the spouse continues the contract. Because the Death 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. Therefore, under current federal law, a purchaser who has or is contemplating a civil union or same-sex marriage should note that the rights of a spouse under the spousal continuation provisions of this Contract will not be available to such partner or same-sex marriage spouse. IF THE SURVIVING SPOUSE DOES NOT MAKE AN ELECTION WITHIN 90 DAYS AFTER WE RECEIVE DUE PROOF OF DEATH, WE WILL AUTOMATICALLY CONTINUE THE CONTRACT UNDER THE SPOUSAL CONTINUATION PROVISION IF OUR RULES PERMIT. Additionally we will treat the absence of an election as if the Earnings Preservation Benefit had been declined. The terms and conditions of the Contract that applied prior to the death will continue to apply, with certain exceptions described in the Contract. TRANSFER PRIVILEGE --GENERAL Currently, you may transfer your Contract Value among subaccounts and/or the Fixed Account without incurring federal income tax consequences. It is not clear, however, whether the Internal Revenue Service will limit the number of transfers between subaccounts and/or the Fixed Account. See the Statement of Additional Information about the Contracts, "Tax Status of the Contract." We currently do not charge a transfer fee or limit the number of transfers. We reserve the right to limit transfers and to charge a transfer fee of up to $25. We will not restrict transfers to less than 12. If we do change our policy, we will notify you in advance. You may not make a transfer to more than 18 subaccounts (including the Fixed Account) at any time if the request is made by telephone to our voice response system or by Internet. A request to transfer to more than 18 subaccounts (including the Fixed Account) may be made by calling our Annuity Administrative Office. If you have elected the GMAB rider, no transfers are permitted while this rider is in effect except under the EDCA program (see "Guaranteed Minimum Accumulation Benefit"). If you have elected to add a GMIB Plus I or Lifetime Withdrawal Guarantee I rider to your Contract, you may only make transfers between certain Eligible Funds. Please refer to the A-44 section "LIVING BENEFITS." If you have elected to add a GMIB Plus II, Lifetime Withdrawal Guarantee II or Enhanced Death Benefit rider to your Contract, there are investment allocation restrictions, as described in the section "THE CONTRACTS -- Investment Allocation Restrictions for Certain Riders." Currently we allow a maximum of $500,000 and a minimum of $500 for each transfer unless otherwise agreed. (If a subaccount contains less than $500, that full amount may be transferred to a subaccount in which you already invested, or you may transfer this amount in combination with Contract Value from another subaccount so that the total transferred to the new subaccount is at least $500.) During the Annuity Period, you may not make any transfers to the Fixed Account if you are receiving payments under a variable payment option. No transfers are allowed if you are receiving payments under a fixed payment option. Additionally, during the Annuity Period, the following Subaccounts are currently not available: American Funds Balanced Allocation, American Funds Bond, American Funds Growth Allocation, American Funds Moderate Allocation, BlackRock Aggressive Growth, BlackRock Diversified, BlackRock Large Cap Value, BlackRock Legacy Large Cap Growth, BlackRock Strategic Value, Clarion Global Real Estate, SSgA Growth and Income ETF, SSgA Growth ETF, Davis Venture Value, FI Value Leaders, Met/Artisan Mid Cap Value, Jennison Growth, Artio International Stock, Loomis Sayles Small Cap Core, Met/Franklin Income, Met/Franklin Mutual Shares, Met/Franklin Templeton Founding Strategy, Met/Templeton Growth, MetLife Aggressive Allocation, MetLife Conservative Allocation, MetLife Conservative to Moderate Allocation, MetLife Moderate Allocation, MetLife Moderate to Aggressive Allocation, MFS(R) Total Return, MFS(R) Value, Oppenheimer Capital Appreciation, Oppenheimer Global Equity, PIMCO Inflation Protected Bond, T. Rowe Price Large Cap Growth, T. Rowe Price Small Cap Growth, Western Asset Management Strategic Bond Opportunities, and Western Asset Management U.S. Government subaccounts. Under Contracts issued in New York, you may not transfer any Contract Value to any Portfolio of the American Funds Insurance Series during the Annuity Period. For information regarding the impact of subaccount transfers on the level of annuity payments, see the Statement of Additional Information. We will treat as one transfer all transfers requested by you on the same day for all Contracts you own. For multiple transfers requested on the same day, which exceed the $500,000 maximum, we will not execute any amount of the transfer. We will make transfers at the Accumulation Unit Values next determined after we receive your request at our Annuity Administrative Office. See "Requests and Elections" for information regarding transfers made by written request, by telephone or by Internet. We may distribute your Contract Value among as many subaccounts as you choose (including the Fixed Account) at any time. You must allocate a minimum of $500 dollars per account. We will not process transfer requests not complying with this rule. --MARKET TIMING Frequent requests from Contract Owners to transfer Contract Value may dilute the value of an Eligible 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 Eligible Fund and the reflection of that change in the Eligible 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 Eligible Funds and may disrupt Eligible Fund management strategy, requiring an Eligible 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 Eligible 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 Eligible Funds (i.e., the American Funds Global Small Capitalization Fund, Artio International Stock Portfolio, BlackRock Strategic Value Portfolio, Clarion Global Real Estate Portfolio, Harris Oakmark International Portfolio, Loomis Sayles Small Cap Core Portfolio, Loomis Sayles Small Cap Growth Portfolio, Lord Abbett Bond Debenture Portfolio, Met/AIM Small Cap Growth Portfolio, Met/Templeton Growth Portfolio, MFS(R) Research International Portfolio, Morgan Stanley EAFE(R) Index Portfolio, Oppenheimer Global Equity Portfolio, Russell 2000(R) Index Portfolio, T. Rowe Price Small Cap Growth Portfolio and Western Asset Management Strategic Bond Opportunities Portfolio), and we monitor transfer activity in those Eligible Funds (the "Monitored Portfolios"). In addition, as described below, we are required to treat all American Funds Insurance Series portfolios ("American A-45 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 category of international, small-cap and high yield Eligible Funds, in a 12-month period there were, (1) six or more transfers involving the given category; (2) cumulative gross transfers involving the given category that exceed the current Contract Value; and (3) two or more "round-trips" involving any Monitored Portfolio in the given category. A round-trip generally is defined as a transfer in followed by a transfer out within the next seven calendar days or a transfer out followed by a transfer in with the next seven calendar days, in either case subject to certain other criteria. We do not believe that other Eligible Funds present a significant opportunity to engage in arbitrage trading and therefore do not monitor transfer activity in those Eligible Funds. We may change the Monitored Portfolios at any time without notice in our sole discretion. In addition to monitoring transfer activity in certain Eligible Funds, we rely on the underlying Eligible 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. 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; each additional violation will result in the imposition of a six-month restriction, during which period we will require all transfer requests to or from an American Funds portfolio to be submitted with an original signature. Further, as Monitored Portfolios, all American Funds portfolios also will be subject to our current market timing and excessive trading policies, procedures and restrictions (described below), 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 Contract Owners or other persons who have an interest in the Contracts, we require all future transfer requests to or from any Monitored Portfolios or other identified Eligible Funds under that Contract to be submitted with an original signature. 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 Eligible 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 Eligible Funds 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 Eligible 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, Eligible 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 Eligible 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 Eligible Funds, we have entered into a written agreement, as required by SEC regulation, with each Eligible Fund or its principal underwriter that obligates us to provide to the Eligible Fund promptly upon request certain information about the trading activity of individual Contract Owners, and to execute instructions from the Eligible Fund to restrict or prohibit further purchases or transfers by specific Contract Owners who violate the frequent trading policies established by the Eligible Fund. A-46 In addition, Contract Owners and other persons with interests in the contracts should be aware that the purchase and redemption orders received by the Eligible Funds generally are "omnibus" orders from intermediaries, such as retirement plans or separate accounts funding variable insurance contracts. 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 Eligible 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 Eligible 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 Eligible Funds. If an Eligible Fund believes that an omnibus order reflects one or more transfer requests from Contract Owners engaged in disruptive trading activity, the Eligible 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 Eligible 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 Eligible Fund prospectuses for more details. We reserve the right to limit the number of transfers during the accumulation and/or income periods. We also reserve the right to refuse transfers to the Fixed Account if we are paying an interest rate on the Fixed Account equivalent to our guaranteed minimum interest rate. We will notify you, in advance, if we change the above transfer provisions. Special rules apply to transfers involving the Fixed Account. We limit transfers out of the Fixed Account as to amount. Currently we are not imposing these restrictions but we have the right to reimpose them at anytime. Special limits may apply on purchase payments and amounts transferred into the Fixed Account. (See "THE OPERATION OF THE FIXED ACCOUNT" and the Statement of Additional Information.) DOLLAR COST AVERAGING We offer an automated transfer privilege called dollar cost averaging. There is no charge to you for this feature. Under this feature you may request that we transfer an amount of your Contract Value on the same day each month, prior to annuitization, from any one account of your choice to one or more of the other accounts (including the Fixed Account, subject to the limitations on transfers into the Fixed Account). We currently restrict the amount of Contract Value which you may transfer from the Fixed Account. We allow one dollar cost averaging program to be active at a time. Currently, you must transfer a minimum of $100 per transfer. You can make subsequent purchase payments while you have an active dollar cost averaging program in effect, provided however, that no amount will be allocated to the program without your express direction. Although the dollar cost averaging transfer amount will not be increased, we will increase the number of months over which transfers are made unless otherwise elected in writing. You may cancel your use of the dollar cost averaging program at any time prior to the monthly transfer date. The program is not available if you have selected the Guaranteed Minimum Accumulation Benefit rider. (See APPENDIX A for more information about Dollar Cost Averaging and the Statement of Additional Information for more information on Dollar Cost Averaging and the Fixed Account.) Guaranteed Account. To the extent allowed by state law, we may credit an interest rate different from the current Fixed Account rate to eligible payments that you allocate to a Guaranteed Account we establish for the purpose of enhanced dollar cost averaging (an "enhanced dollar cost averaging option"). The Guaranteed Account is part of our general account. Enhanced dollar cost averaging is available for Standard Class, P Class and L Class Contracts, but is not available for B Plus Class and C Class Contracts or to purchase payments which consist of money exchanged from other contracts we or an affiliate issues. A purchase payment must be a minimum of $10,000 in order for it to be eligible for the enhanced dollar cost averaging option. A minimum of $500 must be allocated to the enhanced dollar cost averaging option. Only one dollar cost averaging program may be in effect at one time. Certain rules and limitations may apply to the purchase payments you can allocate to the Guaranteed Account. Under enhanced dollar cost averaging, you currently may select a duration of six or twelve months. We may in the future offer enhanced dollar cost averaging for a duration of three months. The first transfer will be made on the date amounts are allocated to the enhanced dollar cost averaging option. Subsequent transfers will be made on the same day in subsequent months. If amounts are received on the 29th, 30th, or 31st of the month, dollar cost averaging transactions will be made on the 1st day of the following month. If the selected day is not a business day, the transfer will be deducted from the enhanced dollar cost averaging option on the selected day but will be applied to the A-47 subaccounts on the next business day. Enhanced dollar cost averaging interest will not be credited on the transfer amount between the selected day and the next business day. The transfer amount will be equal to the amount allocated to the enhanced dollar cost averaging option divided by the selected duration in months. For example, a $12,000 allocation to a six-month enhanced dollar cost averaging option will consist of a $2,000 transfer each month for six months, and a final transfer of any remaining amounts, including the interest credited, separately as a seventh transfer. If a subsequent premium is allocated to an enhanced rate dollar cost averaging option while dollar cost averaging transfers are currently active, the subsequent payment will be allocated to the active enhanced dollar cost averaging option (6 or 12 months) generally at the then current rate. The monthly dollar cost averaging transfer amount will be increased by the subsequent investment amount divided by the number of months in the selected duration period for the program. Using our example above, a subsequent $6,000 allocation to a 6 month dollar cost averaging will increase the dollar cost averaging transfer amount from $2,000 to $3,000 ($12,000/6 + $6,000/6). Dollar cost averaging transfers will be made on a first-in first-out basis. If a subsequent premium is allocated to an enhanced rate dollar cost averaging option, the program will end when the assets are exhausted (which may be later than the selected period). If you cancel your participation in the enhanced dollar cost averaging option, and your Contract was issued on or after May 1, 2005, any remaining balance of your Contract Value in the Guaranteed Account will be transferred to the subaccounts in accordance with the percentages you have chosen for the enhanced dollar cost averaging program. If your Contract was issued prior to May 1, 2005, any remaining balance of your Contract Value in the Guaranteed Account will be transferred to the BlackRock Money Market Subaccount unless you instruct us otherwise. ASSET REBALANCING We offer an asset rebalancing program for Contract Value. There is no charge to you for this program. Contract Value allocated to the subaccounts can be expected to increase or decrease at different rates due to market fluctuations. An asset rebalancing program automatically reallocates your Contract Value among the subaccounts periodically (either annually, semi- annually, quarterly, or monthly) to return the allocation to the allocation percentages you specify. Asset rebalancing is intended to transfer Contract Value from those subaccounts that have increased in value to those that have declined, or not increased as much, in value. Over time, this method of investing may help you "buy low and sell high," although there can be no assurance that this objective will be achieved. Asset rebalancing does not guarantee profits, nor does it assure that you will not have losses. You may select an asset rebalancing program when you apply for the Contract or at a later date by contacting our Annuity Administrative Office. You specify the percentage allocations to which your Contract Value will be reallocated among the subaccounts (excluding the Fixed Account). If you have selected the GMIB Plus II rider, the Lifetime Withdrawal Guarantee II rider, or the Enhanced Death Benefit rider, the Fixed Account is available for the asset rebalancing program. The asset rebalancing program is not available if you have selected the Guaranteed Minimum Accumulation Benefit rider. On the last day of each period on which the New York Stock Exchange is open, we will transfer Contract Value among the subaccounts to the extent necessary to return the allocation to your specifications. If the last day of the period you select is the 29th, 30th or 31st of the month, transfers are made on the 1st day of the following month. Asset rebalancing will continue until you notify us in writing or by telephone at our Annuity Administrative Office. Asset rebalancing cannot continue beyond the Maturity Date. Currently, we don't count transfers made under an asset rebalancing program for purposes of the transfer rules described above. WITHDRAWALS Before annuitization, you may withdraw all or part of your Contract Value. You may receive the proceeds in cash or apply them to a payment option. The proceeds you receive will be the Contract Value determined as of the end of the business day that we receive your request at our Annuity Administration Office, reduced by the following amounts: -- any applicable Withdrawal Charge and -- the Contract Administrative Fee. We currently do not impose but reserve the right to deduct a premium tax charge on withdrawals or payment of Death Proceeds in certain states. See "ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS" for a description of these charges and when they apply. A-48 Restrictions. Federal tax laws, laws relating to employee benefit plans, or the terms of benefit plans for which the Contracts may be purchased may restrict your right to withdraw your Contract Value. -- Federal tax laws impose penalties on certain premature distributions from the Contracts. Full and partial withdrawals and systematic withdrawals prior to age 59 1/2 may be subject to a 10% penalty tax (and 25% in the case of a withdrawal from a SIMPLE IRA within the first two years.). (See "FEDERAL INCOME TAX CONSIDERATIONS.") Because a withdrawal may result in adverse tax consequences, you should consult a qualified tax adviser before making the withdrawal. (See "FEDERAL INCOME TAX CONSIDERATIONS.") How to withdraw all or part of your Contract Value. -- You must submit a request to our Annuity Administrative Office. (See "Requests and Elections.") -- You must provide satisfactory evidence of terminal illness, confinement to a nursing home or permanent and total disability if you would like to have the Withdrawal Charge waived. (See "ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS.") -- You must state in your request whether you would like to apply the proceeds to a payment option (otherwise you will receive the proceeds in a lump sum and may be taxed less favorably). -- We have to receive your withdrawal request in our Annuity Administrative Office prior to the Maturity Date or the Contract Owner's death. We will normally pay withdrawal proceeds within seven days after receipt of a request at the Annuity Administrative Office, but we may delay payment, by law, under certain circumstances. (See "Suspension of Payments.") We may also withhold payment of 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 communication 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. Amount of Withdrawal. We will base the amount of the withdrawal proceeds on the Accumulation Unit Values that are next computed after we receive the completed withdrawal request at our Annuity Administrative Office. However, if you choose to apply the withdrawal proceeds to a payment option, we will base the withdrawal proceeds on Accumulation Unit Values calculated on a later date if you so specify in your request. The amount of a partial withdrawal is a minimum of $500 unless we consent otherwise. After a partial withdrawal, your remaining Contract Value must be at least $2,000, unless we consent to a lower amount. A partial withdrawal will reduce your Contract Value in the subaccounts and Fixed Account in proportion to the amount of your Contract Value in each, unless you request otherwise. SYSTEMATIC WITHDRAWALS Under the Systematic Withdrawal feature you may withdraw equal dollar amounts of your Contract Value automatically on a monthly, quarterly, semi- annual or annual basis prior to annuitization. For all Classes other than the C Class, only monthly or quarterly withdrawals may be made during the 1st Contract Year. If you would like to receive your Systematic Withdrawal Program payment on or about the first of the month, you should make your request by the 20th day of the month. The annualized amount to be withdrawn cannot exceed 10% of total purchase payments, unless we agree otherwise. Currently a withdrawal must be a minimum of $100 (unless we consent otherwise). We reserve the right to change the required minimum systematic withdrawal amount. If the New York Stock Exchange is closed on the day when the withdrawal is to be made, we will process the withdrawal on the next business day. The Withdrawal Charge will apply to amounts you receive under the Systematic Withdrawal program in the same manner as it applies to other partial withdrawals and withdrawals of Contract Value. (See "Withdrawal Charge.") If you continue to make purchase payments under the Contract while you are making Systematic Withdrawals you could incur any applicable Withdrawal Charge on the withdrawals at the same time that you are making the new purchase payments. You may only have one systematic withdrawal program in effect at any time. A-49 The federal tax laws may include systematic withdrawals in your gross income in the year in which you receive the withdrawal amount and will impose a penalty tax of 10% on certain systematic withdrawals which are premature distributions. The application for the systematic withdrawal program sets forth additional terms and conditions. SUSPENSION OF PAYMENTS We reserve the right to suspend or postpone the payment of any amounts due under the Contract or transfers of Contract Values between subaccounts or to the Fixed Account when permitted under applicable Federal laws, rules and regulations. Current Federal law permits such suspension or postponement if: (a) the New York Stock Exchange is closed (other than for customary weekend and holiday closings); (b) trading on the Exchange is restricted; (c) an emergency exists, as determined by the Securities and Exchange Commission, so that it is not practicable to dispose of securities held in the Variable Account or to determine the value of its assets; or (d) the Securities and Exchange Commission by order so permits for the protection of securities holders. Applicable laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to reject a premium payment and/or block or "freeze" your account. If these laws apply in a particular situation, we would not be allowed to process any request for withdrawals, surrenders, loans, or death benefits, make transfers, annuitize or continue making payments under your death benefit option until instructions are received from the appropriate regulator. We also may be required to provide additional information about you or your Contract to government regulators. INACTIVE CONTRACTS We may terminate this Contract by paying you the Contract Value in a lump sum if, prior to the date you choose to annuitize, you make no purchase payments for two consecutive Contract Years (unless otherwise specified by your state), the total amount of purchase payments made, less any partial withdrawals, is less than $2,000 (or any lower amount required by federal tax law), and the Contract Value on or after the end of such two year period is less than $2,000. Accordingly, no Contract will be terminated due solely to negative investment performance. Federal tax law may impose additional restrictions on our right to cancel your traditional IRA, Roth IRA, SEP, SIMPLE or other Qualified Contract. OWNERSHIP RIGHTS During the Annuitant's lifetime, all rights under the Contract belong solely to you as the Contract Owner unless otherwise provided. These rights include the right to: -- change the Beneficiary -- change the Annuitant before the Annuity Date (subject to our underwriting and administrative rules) -- assign the Contract (subject to limitations) -- change the payment option -- exercise all other rights, benefits, options and privileges allowed by the Contract or us. You may not change the ownership of your Contract without our consent. A change of ownership may terminate certain optional riders. If you use a Contract to fund an IRA or TSA Plan, the Contract Owner must be the Annuitant, and we will not allow a Contingent Annuitant. Qualified Plans and certain TSA Plans with sufficient employer involvement are deemed to be "Pension Plans" under ERISA and may, therefore, be subject to rules under the Retirement Equity Act of 1984. These rules require that benefits from annuity contracts purchased by a Pension Plan and distributed to or owned by a participant be provided in accordance with certain spousal consent, present value and other requirements which are not enumerated in your Contract. You should consider carefully the tax consequences of the purchase of the Contracts by Pension Plans. Contracts offered by the prospectus which we designed to qualify for the favorable tax treatment described below under "FEDERAL INCOME TAX CONSIDERATIONS" contain restrictions on transfer or assignment, reflecting requirements of the Code which must be satisfied in order to assure continued eligibility for such tax treatment. In accordance with such requirements, ownership of such a Contract may not be changed and the Contract may not be sold, assigned or pledged as collateral for a loan or for any other purpose except under some limited circumstances. A A-50 Contract Owner contemplating a sale, assignment or pledge of the Contract should carefully review its provisions and consult a qualified tax adviser. If your Contract is used in connection with deferred compensation plans or retirement plans not qualifying for favorable federal tax treatment, such plans may also restrict the exercise of your rights. You should review the provisions of any such plan. REQUESTS AND ELECTIONS We will treat your request for a Contract transaction, or your submission of a purchase payment, as received by us if we receive a request conforming to our administrative procedures or a payment at our Annuity Administrative Office before the close of regular trading on the New York Stock Exchange on that day. If we receive it after that time, or if the New York Stock Exchange is not open that day, then we will treat it as received on the next day when the New York Stock Exchange is open. Our Annuity Administrative Office is New England Life Insurance Company, c/o Annuity Administrative Office, P.O. Box 14594, Des Moines, IA 50306-3594. Subject to our restrictions on "market timing", requests for subaccount transfers, address changes or reallocation of future purchase payments may be made: -- By Telephone (1-800-435-4117), between the hours of 9:00 a.m. and 4:00 p.m. Eastern Time -- Through your Registered Representative -- In writing to New England Life Insurance Company, c/o Annuity Administrative Office, P.O. Box 14594 Des Moines, IA 50306-3594 -- By fax (515) 457-4301, or -- For transfers or reallocation of future purchase payments, by Internet at www.nef.com If we have not received your request by 4:00 p.m. Eastern Time, even if due to our delay, we will treat your request as having been received on the following business day. All other requests must be in written form, satisfactory to us. We may allow requests for a withdrawal over the telephone, by fax, or through the Internet, subject to certain limitations. We may stop offering telephone, fax and Internet transactions at any time in our sole discretion. We will use reasonable procedures such as requiring certain identifying information, tape recording the telephone instructions, and providing written confirmation of the transaction, in order to confirm that instructions communicated by telephone, Internet or fax are genuine. However, because telephone and Internet transactions may be available to anyone who provides certain information about you and your Contract, you should protect that information. We may not be able to verify that you are the person providing telephone or Internet instructions, or that you have authorized any such person to act for you. Any telephone, Internet or fax instructions reasonably believed by us to be genuine will be your responsibility, including losses arising from any errors in the communication of instructions. As a result of this policy, you will bear the risk of loss. If we do not employ reasonable procedures to confirm that instructions communicated by telephone, Internet or fax are genuine, we may be liable for any losses due to unauthorized or fraudulent transactions. All other requests and elections under your Contract must be in writing signed by the proper party, must include any necessary documentation and must be received at our Annuity Administrative Office to be effective. If acceptable to us, requests or elections relating to Beneficiaries and ownership will take effect as of the date signed unless we have already acted in reliance on the prior status. We are not responsible for the validity of any written request or election. 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. Telephone, facsimile, and computer systems (including the Internet) may not always be available. Any telephone, facsimile or computer system, whether it is yours, your service provider's, your registered representative's, or ours, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of your request. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. If you experience technical difficulties or problems, you should make your request in writing to the Company's Annuity Administrative Office as described above. A-51 CONFIRMING TRANSACTIONS We will send out written statements confirming that a transaction was recently completed. Certain transactions may be confirmed quarterly. Unless you inform us of any errors within 60 days of receipt, we will consider these communications to be accurate and complete. STATE VARIATIONS Contracts issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus because of state law variations. These differences include, among other things, free look rights, age issuance limitations, transfer rights and limitations, the right to reject purchase payments, the right to assess transfer fees, and general availability of certain riders. However, please note that the maximum fees and charges for all features and benefits are set forth in the fee table in this prospectus. If you would like to review a copy of the Contract and endorsements, contact our Annuity Administrative Office. ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS We deduct various charges from your Contract Value for the services provided, expenses incurred and risks assumed in connection with your Contract. The charges are: -- Asset-Based Insurance Charge -- Contract Administrative Fee -- Withdrawal Charge -- For Contracts with an Enhanced Death Benefit Rider, an extra fee -- For Contracts with an Earnings Preservation Benefit Rider, an extra fee -- For Contracts with a GMIB Rider, an extra fee -- For Contracts with a GWB Rider, an extra fee -- For Contracts with the GMAB Rider, an extra fee -- Premium Tax Charge and Other Expenses We describe these charges below. The amount of a charge may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designation of the charge or associated with the particular Contract. For example, the Withdrawal Charge may not fully cover all of the sales and distribution expenses actually incurred by us, and proceeds from other charges, including the Asset-Based Insurance Charge, may be used in part to cover such expenses. We can profit from certain Contract charges. Eligible Fund operating expenses are shown beginning on page A-14. ASSET-BASED INSURANCE CHARGE We impose an annual Asset-Based Insurance Charge on the Contract Value. The amount of the charge depends upon the Class of Contract you select, the features you choose for your Contract, and the subaccounts you select. We deduct this charge daily from the assets in each subaccount. This amount compensates us for mortality risks we assume for the annuity payment and death benefit guarantees made under the Contract. These guarantees include making annuity payments that won't change based on our actual mortality experience, and providing a guaranteed minimum death benefit under the Contract. The charge also compensates us for expense risks we assume to cover Contract maintenance expenses. These expenses may include issuing Contracts, maintaining records, making and maintaining subaccounts available under the Contract and performing accounting, regulatory compliance, and reporting functions. This charge also compensates us for costs associated with the establishment and administration of the Contract, including programs like transfers and Dollar Cost Averaging. If the Asset-Based Insurance Charge is inadequate to cover the actual expenses of mortality, maintenance, and administration, we will bear the loss. If the charge exceeds the actual expenses, we will add the excess to our profit and it may be used to finance distribution expenses. A-52 The chart below lists the amount of the Asset-Based Insurance Charge (as an annual percentage of the daily net assets of each subaccount) for each Class and for each death benefit option prior to annuitization.*
STANDARD B PLUS DEATH BENEFIT** CLASS CLASS*** C CLASS L CLASS P CLASS --------------- -------- -------- ------- ------- ------- Standard Death Benefit........................... 1.25% 1.60% 1.60% 1.50% 1.15% Annual Step-Up Death Benefit..................... 1.45% 1.80% 1.80% 1.70% 1.35% Greater of Annual Step-Up or 5% Annual Increase Death Benefit.................................. 1.60% 1.95% 1.95% 1.85% 1.50%
* We currently impose an additional Asset-Based Insurance Charge of 0.25% of average daily net assets on the American Funds Bond, American Funds Growth, American Funds Growth-Income and American Funds Global Small Capitalization Subaccounts. We reserve the right to impose an increased Asset-Based Insurance Charge on subaccounts that we add to the Contract in the future. The increase will not exceed the annual rate of 0.25% of average daily net assets in any such subaccounts. ** See below for an additional optional death benefit rider, the Enhanced Death Benefit, for which the charge is assessed on the "death benefit base" and deducted annually from the account value. *** The Asset-Based Insurance Charge will be reduced on the B Plus Class by 0.35% after the expiration of the 9-year Withdrawal Charge period. For Contracts issued prior to May 1, 2003, the Asset-Based Insurance Charge for the Annual Step-Up Death Benefit and the Greater of Annual Step-Up or 5% Annual Increase Death Benefit is 0.10% lower than what is described in the table. We continue to assess an Asset-Based Insurance Charge after annuitization. If you elect an enhanced death benefit, the amount of the Asset- Based Insurance Charge after annuitization will equal the level of the charge that would apply if you had not elected an enhanced death benefit; except that for the B Plus Class and P Class, the Asset-Based Insurance Charge will be 1.25% after annuitization. The Asset-Based Insurance Charge for all Classes increases by 0.25% for subaccounts investing in the American Funds Insurance Series. CONTRACT ADMINISTRATIVE FEE The annual Contract Administrative Fee is $30. This fee (along with a portion of the Asset-Based Insurance Charge) is for such expenses as issuing Contracts, maintaining records, providing accounting, valuation, regulatory and reporting services, as well as expenses associated with marketing, sale and distribution of the Contracts. We deduct the fee for the prior Contract Year from your Contract Value on each Contract Anniversary, if your Contract Value is less than $50,000, and at the time of a full withdrawal regardless of your Contract size, from each subaccount in the ratio that the Contract Value in the subaccounts bears to your total Contract Value (excluding the Fixed Account). We will deduct it, pro rata, at annuitization if your Contract Value is less than $50,000. We reserve the right to deduct this fee during the Annuity Period, pro rata from each annuity payment. If we issue two Contracts to permit the funding of a spousal IRA, we will impose the Contract Administrative Fee only on the Contract to which you have allocated the larger purchase payments in your Contract application. We deduct the charge entirely from the Contract Value in the Variable Account, and not from the Contract Value in the Fixed Account. WITHDRAWAL CHARGE We do not deduct or charge for sales expenses from your purchase payments when they are made. However, a Withdrawal Charge may apply on certain events ("withdrawal events"). (This includes withdrawals resulting from a request to divide the Contract Value due to divorce.) THIS CHARGE DOES NOT APPLY TO THE C CLASS. Withdrawal events are: (a) a full or partial withdrawal of your Contract (including withdrawals where you apply the proceeds to certain payment options); (b) in some circumstances, a withdrawal of the commuted value of amounts that you applied to an annuity payment option; or (c) under Contracts issued in New York, the Annuity Date if as of that date a purchase payment has been invested for less than seven years on the Standard Class, nine years on the B Plus and P Class, and three years on the L Class. When you make a full withdrawal of your Contract, we take into account the Withdrawal Charge in calculating the proceeds you will receive. On a partial withdrawal, we deduct the Withdrawal Charge from the Contract Value remaining after deduction of the amount you requested. We take the Withdrawal Charge from the Contract Value in the subaccounts and the Fixed Account in the same proportion as the Contract Value withdrawn. A-53 The Charge equals a percentage of each purchase payment withdrawn. Each purchase payment is subject to the charge for the applicable period specified below (12 month periods) from the date we receive it, as follows:
NUMBER OF COMPLETE YEARS FROM RECEIPT OF STANDARD PURCHASE CLASS B PLUS CLASS L CLASS P CLASS PAYMENT CHARGE CHARGE CHARGE CHARGE ---------- -------- ------------ ------- ------- 0......... 7% 9% 7% 8% 1......... 6% 8% 6% 8% 2......... 6% 8% 5% 8% 3......... 5% 7% 0% 7% 4......... 4% 6% 0% 6% 5......... 3% 5% 0% 5% 6......... 2% 4% 0% 4% 7......... 0% 2% 0% 3% 8......... 0% 2% 0% 2% 9 and thereaf- ter..... 0% 0% 0% 0%
On a Standard, B Plus, L, or P Class Contract in any Contract Year you may withdraw the free withdrawal amount without incurring the Withdrawal Charge. In the first Contract Year, no free withdrawal amount is available unless it is part of a monthly or quarterly systematic withdrawal program in which the monthly withdrawal amount does not exceed 1/12 of 10% of total purchase payments or the quarterly amount does not exceed 1/4 of 10% of total purchase payments. After the first Contract Year, the annual free withdrawal amount is equal to 10% of total purchase payments, less the total free withdrawal amount previously withdrawn in the same Contract Year. Earnings may be withdrawn at any time, free from any Withdrawal Charge. We will attribute a withdrawal first to earnings, then to the free withdrawal amount, and then to remaining purchase payments. All withdrawals of purchase payments (including the free withdrawal amount) will result in the liquidation of purchase payments on a "first-in, first-out" basis. That is, we will withdraw your purchase payments in the order you made them. If your Contract Value is less than your total purchase payments due to negative investment performance or deduction of the Contract Administrative Fee, we apply the Withdrawal Charge to your Contract Value (instead of your purchase payments). Under such circumstances, the following rules apply for calculating the Withdrawal Charge: the deficiency will be attributed to your most recent purchase payment first, and subsequent earnings will be credited to that deficiency (and not treated as earnings) until Contract Value exceeds purchase payments. Waiver of the Withdrawal Charge. No Withdrawal Charge will apply to the Standard, L, P and B Plus Class: -- On the Maturity Date or payment of the Death Proceeds. -- If you apply the proceeds to a variable or fixed payment option involving a life contingency (described under "Annuity Options"), or, for a minimum specified period of 15 years, to either the Variable Income for a Specified Number of Years Option or the Variable Income Payments to Age 100 Option (if elected prior to age 85), or a comparable fixed option. However, if you later withdraw the commuted value of amounts placed under any of those options, we will deduct from the amount you receive a portion of the Withdrawal Charge amount that we would have deducted when you originally applied the Contract proceeds to the option. We will take into account the lapse of time from annuitization to withdrawal. We will base the portion of the Withdrawal Charge which applies on the ratio of (1) the number of whole months remaining, on the date of the withdrawal, until the date when the Withdrawal Charge would expire, to (2) the number of whole months that were remaining, when you applied the proceeds to the option, until the date when the Withdrawal Charge would expire. (See example in APPENDIX B.) -- On full or partial withdrawals if you, a Joint Owner, or Annuitant if the Contract is not owned by an individual, become terminally ill (as defined in the Contract), become chronically ill (as defined in the Contract), or are permanently and totally disabled (as defined in the Contract). These benefits are only available if you were not over age 65 (for the disability benefit) or age 80 (for the terminally ill or chronically ill benefit) when we issued A-54 the Contract, and may not be available in every state. These waivers are only applicable for the Standard, B Plus, L and P Class Contracts. -- On minimum distributions required by tax law. We currently waive the Withdrawal Charge on required minimum distributions from qualified contracts but only as to amounts required to be distributed from this contract. This waiver only applies if the required minimum distribution exceeds the free withdrawal amount and no previous withdrawals were made during the Contract Year. (See "FEDERAL INCOME TAX CONSIDERATIONS--Taxation of Qualified Contracts.") -- If the amount of the Withdrawal Charge that would apply if not for this provision, (1) would constitute less than 0.50% of your Contract Value, and (2) you transfer your total Contract Value to certain eligible contracts issued by the Company or one of its affiliated companies. We may also waive the Withdrawal Charge if you surrender a Contract in order to purchase a group variable annuity issued by us or an affiliate. ENHANCED DEATH BENEFIT RIDER If you select the Enhanced Death Benefit, and you are age 0-69 at issue, we will assess a charge during the accumulation phase equal to 0.75% of the death benefit base. If you are age 70-75 at issue, we will assess a charge during the accumulation phase equal to 0.95% of the death benefit base (see "THE CONTRACTS--Enhanced Death Benefit" for a discussion of how the death benefit base is determined). If your death benefit base is increased due to an Optional Step-Up, we may reset the rider charge to a rate that does not exceed the lower of (a) the Maximum Optional Step-Up Charge (1.50%) or (b) the current rate we charge for the same rider available for new Contract purchases at the time of the Optional Step-Up. Starting with the first Contract Anniversary, the charge is assessed for the prior Contract Year at each Contract Anniversary, before any Optional Step-Up. If you make a full withdrawal (surrender) or if you begin to receive annuity payments at the annuity date, a pro rata portion of the charge will be assessed. The charge is deducted from your Contract Value pro rata from each subaccount, the Fixed Account and the EDCA account in the ratio each portfolio/account bears to your total Contract Value. We take amounts from the subaccounts by canceling accumulation units from the Separate Account. For Contracts issued from February 24, 2009 through May 1, 2009, the percentage charge for the Enhanced Death Benefit is 0.65% of the death benefit base if you are age 69 or younger at issue and 0.90% of the death benefit base if you are age 70-75 at issue. For Contracts issued prior to February 24, 2009, the percentage charge for the Enhanced Death Benefit is 0.65% of the death benefit base if you are age 69 or younger at issue and 0.85% of the death benefit base if you are age 70-75 at issue. For Contracts issued prior to May 4, 2009, if you elected both the Enhanced Death Benefit rider and the GMIB Plus II rider (described below), the percentage charge for the Enhanced Death Benefit is reduced by 0.05%. EARNINGS PRESERVATION BENEFIT RIDER If you have selected the Earnings Preservation Benefit Rider, we impose a daily fee at the annual rate of 0.25% of average daily net assets in the subaccounts prior to annuitization. GUARANTEED MINIMUM INCOME BENEFIT RIDER If you have selected a Guaranteed Minimum Income Benefit Rider ("GMIB")--either the GMIB Plus II or GMIB Plus I, or GMIB II or GMIB I, we impose a charge of 1.00% (for the GMIB Plus II), 0.80% (for the GMIB Plus I) and 0.50% (for the GMIB II or GMIB I) of the Income Base at the time the charge is assessed. For Contracts issued in New York State only, the GMIB Plus II rider charge is 0.95% of the Income Base at the time the charge is assessed. For the GMIB Plus II, if you elect an Optional Step-Up on any Contract Anniversary as permitted, we may reset the GMIB Rider Charge to a rate that does not exceed the lower of (a) the Maximum Optional Step-Up Charge (1.50%) or (b) the rate we charge for the same rider available for new purchases at the time of the Optional Step-Up. For GMIB Plus I, if you elect an Optional Reset on any Contract Anniversary as permitted, we may increase the GMIB Plus I charge to the then current charge applicable to the same rider, but no more than a maximum of 1.50% of the Income Base. The rider charge is deducted from your Contract Value pro rata from each Subaccount, the Fixed Account and the EDCA Guaranteed Account. GMIB II is no longer available for sale, effective for Contracts issued based on applications and necessary information received at our Annuity Service Center on and after May 4, 2009. GMIB I is not available for sale. A-55 For Contracts issued prior to February 24, 2009 for which the GMIB Plus II was elected, the rider charge equals 0.80% of the Income Base (0.75% of the Income Base for Contracts issued in New York State). For Contracts issued prior to February 26, 2007, the charge for the GMIB Plus I (prior to Optional Reset) is 0.75% of the Income Base. For Contracts issued from May 1, 2003 through April 30, 2005, the GMIB I charge is reduced to 0.45% of the Income Base if you choose either the Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5% Annual Increase Death Benefit. For Contracts issued prior to February 15, 2003, the charge for the GMIB I is 0.15% lower (0.35% rather than 0.50%). See "GUARANTEED INCOME BENEFITS" for more information on how the charge is calculated. After annuitization, the charge for the Guaranteed Minimum Income Benefit Rider will not be assessed. LIFETIME WITHDRAWAL GUARANTEE AND GUARANTEED WITHDRAWAL BENEFIT -- RIDER CHARGE There are two versions of the optional Lifetime Withdrawal Guarantee rider: the Lifetime Withdrawal Guarantee II rider and the Lifetime Withdrawal Guarantee I rider (collectively referred to as the Lifetime Withdrawal Guarantee riders). There are also two versions of the optional Guaranteed Withdrawal Benefit ("GWB") rider: the Enhanced GWB rider and the GWB I rider (collectively referred to as the Guaranteed Withdrawal Benefit riders). The GWB I rider is no longer available for sale. Please check with your registered representative regarding which versions are available in your state. If you elect one of the Lifetime Withdrawal Guarantee riders or one of the Guaranteed Withdrawal Benefit riders, a charge is deducted from your Contract Value during the accumulation phase on each Contract Anniversary. The charge for the Lifetime Withdrawal Guarantee II rider is equal to 1.25% (Single Life version) or 1.50% (Joint Life version) of the Total Guaranteed Withdrawal Amount (see "GUARANTEED WITHDRAWAL BENEFITS--Description of the Lifetime Withdrawal Guarantee II") on the applicable Contract Anniversary, after applying any 7.25% Compounding Income Amount and prior to taking into account any Automatic Annual Step-Up occurring on such Contract Anniversary. For Contracts issued prior to February 24, 2009, the charge for the Lifetime Withdrawal Guarantee II rider is equal to 0.65% (Single Life version) or 0.85% (Joint Life version) of the Total Guaranteed Withdrawal Amount (see "GUARANTEED WITHDRAWAL BENEFITS--Description of the Lifetime Withdrawal Guarantee II") on the applicable Contract Anniversary, after applying any 7.25% Compounding Income Amount and prior to taking into account any Automatic Annual Step-Up occurring on such Contract Anniversary. The charge for the Lifetime Withdrawal Guarantee I rider is equal to 0.50% (Single Life version) or 0.70% (Joint Life version) of the Total Guaranteed Withdrawal Amount on the applicable Contract Anniversary, after applying any 5% Compounding Income Amount and prior to taking into account any Automatic Annual Step-Up occurring on such Contract Anniversary. The charge for the Enhanced GWB rider is equal to 0.55% of the Guaranteed Withdrawal Amount (see "GUARANTEED WITHDRAWAL BENEFITS--Description of the Enhanced Guaranteed Withdrawal Benefit") on the applicable Contract Anniversary, prior to taking into account any Optional Reset occurring on such Contract Anniversary. (For Contracts issued prior to July 16, 2007, the charge for the Enhanced GWB rider is equal to 0.50% of the Guaranteed Withdrawal Amount on the applicable Contract Anniversary, prior to taking into account any Optional Reset occurring on such Contract Anniversary.) The charge for the GWB I rider is equal to 0.50% of the Guaranteed Withdrawal Amount on the applicable Contract Anniversary, prior to taking into account any Optional Reset occurring on such Contract Anniversary. The LWG or GWB rider charge is deducted from your Contract Value pro rata from each subaccount, the Fixed Account and the Enhanced Dollar Cost Averaging ("EDCA") Guaranteed Account in the ratio each account bears to your total Contract Value. We take amounts from the subaccounts that are part of the Separate Account by canceling accumulation units from the Separate Account. If you make a full withdrawal (surrender) of your Contract Value, you apply your Contract Value to an annuity option, there is a change in Owners, Joint Owners or Annuitants (if the Owner is a non-natural person), or the Contract terminates (except for a termination due to death), or (under the Lifetime Withdrawal Guarantee II rider) you assign your Contract, a pro rata portion of the rider charge will be assessed based on the number of full months from the last Contract Anniversary to the date of the change. If the Enhanced GWB, Lifetime Withdrawal Guarantee I or Lifetime Withdrawal Guarantee II rider is cancelled pursuant to the cancellation provisions of each rider, a pro rata portion of the rider charge will not be assessed based on the period from the Contract Anniversary to the date the cancellation takes effect. If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee II rider, we may reset the Lifetime Withdrawal Guarantee II rider charge to a rate that does not exceed the lower of: (a) the Maximum Optional Step-Up Charge (1.60% for the Single Life version or 1.80% for the Joint Life version) or (b) the current rate we charge for the same rider available for new Contract purchases at the time of the Automatic Annual Step-Up. For Contracts A-56 issued prior to February 24, 2009, the Maximum Optional Step-Up Charge is 1.25% (Single Life version) or 1.50% (Joint Life version). If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee I rider, we may increase the Lifetime Withdrawal Guarantee I rider charge to the charge applicable to current Contract purchases of the same rider at the time of the step-up, but to no more than a maximum of 0.95% (Single Life version) or 1.40% (Joint Life version) of the Total Guaranteed Withdrawal Amount. If you elect an Optional Reset as permitted under the Enhanced GWB rider or the GWB I rider, we may increase the rider charge to the Enhanced GWB/GWB I rider charge applicable to current Contract purchases of the same rider at the time of the reset, but to no more than a maximum of 1.00% (for Enhanced GWB) or 0.95% (for GWB I) of the Guaranteed Withdrawal Amount. For Contracts issued prior to July 16, 2007, the maximum charge for the Enhanced GWB rider upon an Optional Reset is equal to 0.95% of the Guaranteed Withdrawal Amount. If one of the Lifetime Withdrawal Guarantee riders is in effect, the rider charge will continue if your Remaining Guaranteed Withdrawal Amount (see "GUARANTEED WITHDRAWAL BENEFITS--Description of the Lifetime Withdrawal Guarantee II") equals zero. If the Enhanced GWB or GWB I rider is in effect, the rider charge will not continue if your Benefit Base (see "GUARANTEED WITHDRAWAL BENEFITS--Description of the Enhanced Guaranteed Withdrawal Benefit") equals zero. Some of the descriptions of the GWB I rider may have changed subject to state approval of an endorsement. GUARANTEED MINIMUM ACCUMULATION BENEFIT RIDER The Guaranteed Minimum Accumulation Benefit (GMAB) rider is no longer available for sale, effective for applications and necessary paperwork received on and after May 4, 2009. If you elected the GMAB, a charge is deducted from your Contract Value on each Contract Anniversary. The charge is equal to 0.75% of the GMAB Guaranteed Accumulation Amount at the end of the prior Contract Year. The GMAB Rider Charge is deducted from your Contract Value pro rata from your Contract's Asset Allocation subaccount and the EDCA Guaranteed Account in the ratio each account bears to your total Contract Value. We take amounts from the Subaccount that is part of the Separate Account by cancelling accumulation units from the Separate Account. If you make a full withdrawal (surrender) of your Contract Value or you apply your Contract Value to an annuity option, we will assess a pro rata portion of the GMAB Rider Charge based on the number of whole months since the last Contract Anniversary. (See "GUARANTEED MINIMUM ACCUMULATION BENEFIT.") PREMIUM AND OTHER TAX CHARGES We reserve the right to deduct from the purchase payments or Contract Value any taxes paid by us to any governmental entity relating to this Contract (including without limitation: premium taxes, federal, state and local withholding of income, estate, inheritance and other taxes required by law, and any new or increased state income taxes enacted). We will, at our sole discretion, determine when taxes relate to the Contract, including for example when they have resulted from: the investment experience of the Variable Account; receipt by us of purchase payments; commencement of annuity benefits; payment of death benefits; partial and full withdrawals; and any new or increased taxes which become effective that are imposed on us and which relate to purchase payments, earnings, gains, losses, fees, and charges under the Contract. We may, at our sole discretion, pay taxes when due and make a deduction for such taxes from the Contract Value at a later date. Payment at an earlier date does not waive any right we may have to deduct amounts at a later date. Most states impose a premium tax liability on the date when annuity benefits commence. In those states, we deduct the premium tax charge from the Contract Value on that date. To determine whether and when a premium tax charge will be imposed on a Contract, we will look to the state of residence of the Owner when a withdrawal is made or Death Proceeds are paid and to the state of residence of the annuitant when annuity benefits commence. In South Dakota, we reserve the right to deduct the premium tax charge at the earliest of: a full or partial withdrawal of the Contract, the date when annuity benefits commence, or payment of the Death Proceeds (including application of the Death Proceeds to the Beneficiary Continuation provision). Deductions for state premium tax charges currently range from 1/2% to 1.00% of the Contract Value (or, if applicable, purchase payments or Death Proceeds) for Contracts used with retirement plans qualifying for tax benefited treatment under the Code and from 1% to 3.5% of the Contract Value (or, if applicable, Death Proceeds) for all other Contracts. For contracts sold in California to 408(a) IRA Trusts, the premium tax charge is 2.35%. See Appendix C for a list of premium tax rates. A-57 OTHER EXPENSES An investment advisory fee is deducted from, and certain other expenses are paid out of, the assets of each Eligible Fund. (See "Expense Table.") The prospectus and Statement of Additional Information of the Eligible Funds describe these deductions and expenses. ANNUITY PAYMENTS ELECTION OF ANNUITY The annuity period begins at the Maturity Date or at any earlier date you choose to annuitize and provides for payments to be made to the Payee. You may apply your Contract Value to one of the payment options listed below (or a comparable fixed option). We base the Maturity Date of your Contract on the age of the Annuitant. The Maturity Date is the later of (i) the date when the Annuitant, at his or her nearest birthday, would be age 95 (or the maximum age allowed by state law) or (ii) 10 years from the date of issue (this requirement may be changed). If your Contract is acquired pursuant to an exchange from an old contract (see "THE CONTRACTS-- Purchase Payments"), the Maturity Date of the Contract would be set at age 95 (or the maximum allowed by state law) regardless of what the maturity date may have been for the old Contract. Upon the death of an Annuitant who is not the Owner or Joint Owner, during the Accumulation Period, the Owner automatically becomes the Annuitant, unless the Owner chooses a new Annuitant subject to our underwriting rules in effect at the time of the request for this change. If the Owner is a non-natural person, the death of the Annuitant will be treated as the death of an Owner. If you change the Annuitant, or the Owner becomes the Annuitant because of the original Annuitant's death, we will change the Maturity Date, if necessary, so that it is the date when the new Annuitant, at his or her nearest birthday, would be age 95 (or the maximum age allowed by state law). Unless you elect another option, variable annuity payments will begin at the Maturity Date for the life of the Payee, but for at least ten years. Any Contract Value in the Fixed Account will be applied to provide fixed, not variable, payments. You can change this annuity payment option at any time prior to annuitization. You may elect to have annuity payments under a Contract made on a variable basis or on a fixed basis, or you may designate a portion to be paid on a variable basis and a portion on a fixed basis. If you select payments on a fixed basis, we will transfer the amount of your Contract Value applied to the fixed payment option (net of any applicable charges described under "ASSET- BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS") to our general account. We will fix the annuity payments in amount and duration by the annuity payment option selected, and by the age and the sex of the Payee. For Contracts issued in situations involving an employer-sponsored plan subject to ERISA or where required by state law, we fix annuity payments in amount and duration using the same criteria except we do not take into account the sex of the Payee. If you were issued a Contract with sex-distinct annuity rates prior to the time that state law mandated unisex annuity rates, the annuity rates we use will not be less than the guaranteed sex-distinct rates in the Contract when issued. You may choose to have annuity payments made on a monthly, quarterly, semi-annual, or annual frequency. (See "Amount of Annuity Payments.") Contracts used in connection with retirement plans qualifying for tax benefited treatment may have various requirements for the time by which benefit payments must commence, the period over which such payments may be made, the annuity payment options that may be selected, and the minimum annual amounts of such payments. Penalty taxes or other adverse tax consequences may occur upon failure to meet such requirements. ANNUITY OPTIONS There are several annuity payment options. You may select one of the payment options prior to the Annuity Date, at full or partial withdrawal, or when death proceeds are payable. (Some options are not available for death proceeds.) For a description of the tax consequences of full and partial annuitization, see "FEDERAL INCOME TAX CONSIDERATIONS". In addition to the annuity options described below, we may offer an additional payment option that would allow your Beneficiary to take distribution of the Contract Value over a period not extending beyond his or her life expectancy. Under this option, annual distributions would not be made in the form of an annuity, but would be calculated in a manner similar to the calculation of required minimum distributions from Qualified Contracts. See "FEDERAL INCOME TAX CONSIDERATIONS--Taxation of Qualified Contracts." We intend to make this payment option available to both tax qualified and non-tax qualified Contracts. You select an annuity payment option by written request to us and subject to any applicable federal tax law restrictions. A-58 The Contract offers the variable annuity payment options listed below. Variable Income for a Specified Number of Years. We will make variable payments for the number of years elected, which may not be more than 30 except with our consent. THIS OPTION CANNOT BE SELECTED FOR DEATH PROCEEDS. Variable Life Income. We will make variable payments which will continue: while the Payee is living* ; while the Payee is living but for at least ten years; or while the Payee is living but for at least twenty years. (The latter two alternatives are referred to as Variable Life Income with Period Certain Option.) Variable Income Payments to Age 100 ("American Income Advantage"). We will make variable payments for the number of whole years until the Payee is age 100. THIS OPTION CANNOT BE SELECTED FOR DEATH PROCEEDS. Variable Life Income for Two Lives. We will make variable payments which will continue: while either of two Payees is living (Joint and Survivor Variable Life Income)*, while either of two Payees is living but for at least 10 years (Joint and Survivor Variable Life Income, 10 Years Certain); while two Payees are living, and, after the death of one while the other is still living, two-thirds to the survivor (Joint and 2/3 to Survivor Variable Life Income).* THIS OPTION CANNOT BE SELECTED FOR DEATH PROCEEDS. You may be able to purchase the Contract as the beneficiary of a deceased person's Individual Retirement Account. If you do so, you must take distribution of the Contract Value in accordance with the minimum required distribution rules set forth in the Internal Revenue Code and IRS regulations. See "FEDERAL INCOME TAX CONSIDERATIONS--Taxation of Qualified Contracts." Under certain circumstances, you may satisfy those requirements by electing an annuity option, but you may only elect an annuity option that is available for Death Proceeds. You may choose any optional death benefit available under the Contract, but certain other Contract provisions and programs will not be available. Upon your death, the Death Proceeds would be required to be distributed to your Beneficiary at least as rapidly as under the method of distribution in effect at the time of your death. Other annuity payment options (including other periods certain) may be available from time to time, and you should ask us about their availability. If you do not elect an annuity payment option by the Maturity Date, we will make variable payments under the Contract while the Payee is living but for at least ten years. (This is the Variable Life Income with Period Certain Option.) If your purchase payments would be less than our published minimum, then you will need our consent to apply the Contract proceeds to an annuity payment option. You may withdraw the commuted value of the payments remaining under a variable period certain option (such as the Variable Income for a Specified Number of Years Option). You may not commute a fixed period certain option or any option involving a life contingency, whether fixed or variable, prior to the death of the last surviving annuitant. Upon the death of the last surviving annuitant, the beneficiary may choose to continue receiving income payments or to receive the commuted value of the remaining payments. For variable income payment options, the calculation of the commuted value will be done using the assumed investment return applicable to the Contract. (See "Amount of Annuity Payments".) For fixed income payment options, the calculation of the commuted value will be done using the then current annuity purchase rates. Please be advised that the tax consequences resulting from the election of an annuity payment option containing a commutation feature (i.e., an annuity payment option that permits the withdrawal of a commuted value) is uncertain and the IRS may determine that the taxable amount of the annuity payments and withdrawals received for any year COULD BE GREATER THAN OR LESS THAN THE TAXABLE AMOUNT REPORTED BY THE COMPANY. The exercise of the commutation feature also may result in adverse tax consequences including: - The imposition of a 10% penalty tax on the taxable amount of the commuted value, if the taxpayer has not attained age 59 1/2 at the time the withdrawal is made. This 10% penalty tax is in addition to the ordinary income tax on the taxable amount of the commuted value. - The retroactive imposition of the 10% penalty tax on annuity payments received prior to the taxpayer attaining age 59 1/2. - The possibility that the exercise of the commutation feature could adversely affect the amount excluded from federal income tax under any annuity payments made after such commutation. ---------- * It is possible under this option to receive only one variable annuity payment if the Payee dies (or Payees die) before the due date of the second payment or to receive only two variable annuity payments if the Payee dies (or Payees die) before the due date of the third payment, and so on. A-59 A payee should consult with his or her own tax advisor prior to electing to annuitize the contract and prior to exercising any commutation feature under an annuity payment option. See the section entitled "ASSET-BASED INSURANCE CHARGES, WITHDRAWAL AND OTHER DEDUCTIONS" to find out whether a Withdrawal Charge applies when you annuitize or withdraw the commuted value of any payments certain. If you are receiving payments under the Variable Income for a Specified Number of Years Option or the Variable Income Payments to Age 100 Option you may convert to an option involving a life contingency. The availability of certain annuity payment options may be restricted on account of Company policy, administrative procedures, and federal tax law which, among other things, may restrict payment to the life expectancy of the payee and/or may limit the choice of percentage reduction in payments under a joint and survivor option. In addition, these federal tax rules may also limit the use in qualified contracts of annuity payment options that contain a commutation feature because, among other things, income payments must be made at least annually to avoid a 50% excise tax. Accordingly, we reserve the right to restrict the availability under qualified contracts of annuity payment options with commutation features and/or limit the amount that may be withdrawn under such features. We continue to assess an Asset-Based Insurance Charge after annuitization. If you elect an enhanced death benefit, the amount of the Asset-Based Insurance Charge after annuitization will equal the level of the charge that would apply if you had not elected an enhanced death benefit; except that for the B Plus Class and P Class, the Asset-Based Insurance Charge will be 1.25% after annuitization. THE ASSET-BASED INSURANCE CHARGE FOR ALL CLASSES INCREASES BY 0.25% FOR SUBACCOUNTS INVESTING IN THE AMERICAN FUNDS INSURANCE SERIES. Charges for the Guaranteed Minimum Income Benefit and the Earnings Preservation Benefit Rider will not be assessed after annuitization. AMOUNT OF ANNUITY PAYMENTS At the Annuity Date (or any other application of proceeds to a payment option), your Contract Value (reduced by applicable premium tax, Contract Administrative Fee, and Withdrawal Charges) is applied toward the purchase of annuity payments. We determine the amount of variable annuity payments on the basis of (i) annuity purchase rates not lower than the rates set forth in the Life Income Tables contained in the Contract that reflect the Payee's age, (ii) the assumed investment return selected, (iii) the type of payment option selected, and (iv) the investment performance of the Eligible Funds selected. The Fixed Account is not available under variable payment options. Additionally, during the Annuity Period, the following subaccounts are currently not available: American Funds Balanced Allocation, American Funds Bond, American Funds Growth Allocation, American Funds Moderate Allocation, BlackRock Aggressive Growth, BlackRock Diversified, BlackRock Large Cap Value, BlackRock Legacy Large Cap Growth, BlackRock Strategic Value, Clarion Global Real Estate, SSgA Growth and Income ETF, SSgA Growth ETF, Davis Venture Value, FI Value Leaders, Met/Artisan Mid Cap Value, Jennison Growth, Artio International Stock, Loomis Sayles Small Cap Core, Met/Franklin Income, Met/Franklin Mutual Shares, Met/Franklin Templeton Founding Strategy, Met/Templeton Growth, MetLife Aggressive Allocation, MetLife Conservative Allocation, MetLife Conservative to Moderate Allocation, MetLife Moderate Allocation, MetLife Moderate to Aggressive Allocation, MFS(R) Total Return, MFS(R) Value, Oppenheimer Capital Appreciation, Oppenheimer Global Equity, PIMCO Inflation Protected Bond, T. Rowe Price Large Cap Growth, T. Rowe Price Small Cap Growth, Western Asset Management Strategic Bond Opportunities, and Western Asset Management U.S. Government subaccounts. Under Contracts issued in New York, you may not transfer any Contract Value to any Portfolio of the American Funds Insurance Series during the Annuity Period. We calculate the initial payment using the assumed investment return you select. The amount of each payment after the initial payment will depend on how the subaccounts perform, relative to the assumed investment return. If the actual net investment return (annualized) exceeds your assumed investment return, the payment will increase. Conversely, if the actual return is less than your assumed investment return, the annuity payment will decrease. When selecting an assumed investment return, you should keep in mind that a lower assumed investment return will result in a lower initial annuity payment, but subsequent annuity payments will increase more rapidly or decline more slowly as changes occur in the investment experience of the Eligible Funds. On the other hand, a higher assumed investment return will result in a higher initial payment than a lower assumed investment return, but later payments will rise more slowly or fall more rapidly. You may select an assumed investment return of 3.5% or, if allowed by applicable law or regulation, 5%. If you do not choose an assume investment return, we will use 3.5%. A-60 If you own a B Plus Class Contract and choose to annuitize under a fixed or variable payment option during the 9-year Withdrawal Charge period, your annuity payments will be based on a different set of current annuity purchase rates than our other Classes. Additionally, our guaranteed rates for fixed or variable annuity payments will be different for B Plus Class Contracts than for other Classes. The effect of these different rates would be to lower your annuity payments. For more information regarding annuity payment options, you should refer to the Statement of Additional Information and also to the Contract, which contains detailed information about the various forms of annuity payment options available, and other important matters. LIVING BENEFITS OVERVIEW OF LIVING BENEFIT RIDERS We offer a suite of optional living benefit riders that, for certain additional charges, offer protection against market risk (the risk that your investments may decline in value or underperform your expectations). Only one of these riders may be elected, and the rider must be elected at Contract issue. These optional riders are described briefly below. Please see the more detailed description that follows for important information on the costs, restrictions and availability of each optional rider. We currently offer two types of living benefit riders--guaranteed income benefits and guaranteed withdrawal benefits: Guaranteed Income Benefits -- Guaranteed Minimum Income Benefit Plus (GMIB Plus II and GMIB Plus I) -- Guaranteed Minimum Income Benefit (GMIB II and GMIB I) Our guaranteed income benefit riders are designed to allow you to invest your Contract Value in the market while at the same time assuring a specified guaranteed level of minimum fixed annuity payments if you elect to annuitize. The fixed annuity payment amount is guaranteed regardless of investment performance or the actual Contract Value at the time you annuitize. Prior to exercising the rider and annuitizing your Contract, you may make withdrawals up to a maximum level specified in the rider and still maintain the benefit amount. Guaranteed Withdrawal Benefits -- Lifetime Withdrawal Guarantee (Lifetime Withdrawal Guarantee II and Lifetime Withdrawal Guarantee I) -- Enhanced Guaranteed Withdrawal Benefit (Enhanced GWB) -- Guaranteed Withdrawal Benefit (GWB I) The guaranteed withdrawal benefit riders are designed to guarantee that at least the entire amount of purchase payments you make will be returned to you through a series of withdrawals without annuitizing, regardless of investment performance, as long as withdrawals in any Contract Year do not exceed the maximum amount allowed under the rider. With the Lifetime Withdrawal Guarantee (LWG) riders, you get the same benefits, but in addition, if you make your first withdrawal on or after the date you reach age 59 1/2, you are guaranteed income (without annuitizing) for your life (and the life of your spouse, if the Joint Life version of the rider was elected and your spouse elects to continue the Contract and is at least age 59 1/2 at continuation), even after the entire amount of purchase payments has been returned. Guaranteed Asset Accumulation Benefit Prior to May 4, 2009, we offered the Guaranteed Minimum Accumulation Benefit (GMAB). The GMAB is designed to guarantee that your Contract Value will not be less than a minimum amount at the end of the 10-year waiting period. The amount of the guarantee depends on which of three permitted subaccounts you select. A-61 GUARANTEED INCOME BENEFITS At the time you buy the Contract, you may elect a guaranteed income benefit rider, called a Guaranteed Minimum Income Benefit (GMIB), for an additional charge. Each version of these riders is designed to guarantee a predictable, minimum level of fixed annuity payments, regardless of investment performance during the accumulation phase. HOWEVER, IF APPLYING YOUR ACTUAL CONTRACT VALUE AT THE TIME YOU ANNUITIZE THE CONTRACT TO THEN CURRENT ANNUITY PURCHASE RATES (OUTSIDE OF THE RIDER) PRODUCES HIGHER INCOME PAYMENTS, YOU WILL RECEIVE THE HIGHER PAYMENTS AND THUS YOU WILL HAVE PAID FOR THE RIDER EVEN THOUGH IT WAS NOT USED. Also, prior to exercising the rider, you may make specified withdrawals that reduce your Income Base (as explained below) during the accumulation phase and still leave the rider guarantees intact, provided the conditions of the rider are met. Your registered representative can provide you an illustration of the amounts you would receive, with or without withdrawals, if you exercised the rider. There are four versions of the GMIB under this Contract: -- GMIB Plus II -- GMIB Plus I (formerly, the Predictor Plus) -- GMIB II (formerly, the Predictor) -- GMIB I Please check with your registered representative regarding whether GMIB Plus II or GMIB Plus I is available in your state. GMIB II is no longer available for sale, effective for Contracts issued based on applications and necessary information received at our Annuity Administrative Office on and after May 4, 2009. GMIB I is not available for sale. Additionally, there may be versions of each rider that vary by issue date and state availability. Please check with your registered representative regarding which version(s) are available in your state. You may not have this benefit and an LWG, GWB or GMAB rider in effect at the same time. Once elected, the rider cannot be terminated except as discussed below. FACTS ABOUT GUARANTEED INCOME BENEFIT RIDERS INCOME BASE AND GMIB ANNUITY PAYMENTS. Under all versions of the GMIB, we calculate an "Income Base" (as described below) that determines, in part, the minimum amount you receive as an income payment upon exercising the GMIB rider and annuitizing the Contract. IT IS IMPORTANT TO RECOGNIZE THAT THIS INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND DOES NOT ESTABLISH OR GUARANTEE YOUR CONTRACT VALUE OR A MINIMUM RETURN FOR ANY SUBACCOUNT. For purposes of calculating the Income Base, the B Plus Class bonus credits are not included. After a minimum 10-year waiting period, and then only within 30 days following a Contract Anniversary, you may exercise the rider. We then will apply the Income Base calculated at the time of exercise to the conservative GMIB Annuity Table (as described below) specified in the rider in order to determine your minimum guaranteed lifetime fixed monthly annuity payments (your actual payment may be higher than this minimum if, as discussed above, the base Contract under its terms would provide a higher payment). Partial annuitizations are not permitted under the GMIB riders. Applicable Withdrawal Charges on the date that you exercise the Rider will be deducted from the Income Base. We also reserve the right to reduce the Income Base for any Premium and Other Taxes that may apply. THE GMIB RIDER CHARGE. Rider charges are 1.00% for GMIB Plus II, 0.80% for GMIB Plus I and 0.50% of the Income Base for GMIB II and GMIB I at the time the charge is assessed. If your Income Base is increased due to an Optional Step-Up under the GMIB Plus II rider, we may reset the rider charge to a rate that does not exceed lower of (a) the Maximum Optional Step-Up Charge (1.50%) or (b) the current rate we charge for the same rider available for new Contract purchases at the time of the Optional Step-Up. If your Income Base is increased due to an Optional Reset under the GMIB Plus I rider, we may increase the rider charge to the charge applicable to Contract purchases of the same rider at the time of the increase, but to no more than a maximum of 1.50%. For Contracts issued prior to February 24, 2009 for which the GMIB Plus II was elected, the rider charge equals 0.80% of the Income Base. For Contracts issued prior to February 26, 2007 for which the GMIB Plus I was elected, the rider charge equals 0.75% of the Income Base. The charge is assessed at the first Contract Anniversary, and then at each subsequent Contract Anniversary up to and including the anniversary on or immediately preceding the date the Rider is exercised. Upon full withdrawal or annuitization, the rider charge is deducted from your Contract Value pro rata from each Subaccount, the Fixed Account and the EDCA Guaranteed Account. For Contracts issued from May 1, 2003 and prior to May 1, 2005, the charge for the GMIB I and GMIB II is reduced to 0.45% of the Income Base if you choose either the Annual Step-Up Death Benefit A-62 or the Greater of Annual Step-Up or 5% Annual Increase Death Benefit. For Contracts applied for prior to February 15, 2003 the charge for the Guaranteed Minimum Income Benefit is 0.15% lower (0.35% rather than 0.50%). The GMIB Rider Charge will result in the cancellation of Accumulation Units from each applicable subaccount of the Variable Account and/or a reduction in the Contract Value allocated to the Fixed Account in the ratio the Contract Value in a subaccount and/or the Fixed Account bears to the total Contract Value. For Contracts issued on and after May 1, 2003, the Fixed Account is not available in the state of New York if you have selected a GMIB rider. THE GMIB ANNUITY TABLE. The GMIB Annuity Table is specified in the rider. For GMIB Plus II in Contracts issued after May 1, 2009, this table is calculated based on the Annuity 2000 Mortality Table with a 10-year age set-back with interest of 1.5% per annum. For GMIB Plus II in Contracts issued from February 24, 2009 through May 1, 2009 in all states except New York and prior to May 1, 2009 in New York State, this table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set-back with interest of 1.5% per annum. For GMIB Plus II in Contracts issued in all states except New York before February 24, 2009, and for GMIB Plus I, GMIB II and GMIB I, this table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set-back with interest of 2.5% per annum. As with other pay-out types, the amount you receive as an income payment also depends on your age, your sex (where permitted by law), and the annuity option you select. For GMIB Plus II, the annuity rates for attained ages 86 to 90 are the same as those for attained age 85. The annuity rates in the GMIB Annuity Table are conservative and a Withdrawal Charge may be applicable, so the amount of guaranteed minimum lifetime income that the GMIB produces may be less than the amount of annuity income that would be provided by applying your Contract Value on your annuity date to then-current annuity purchase rates. If you exercise the GMIB rider, your annuity payments will be the greater of: -- the annuity payment determined by applying the amount of the Income Base to the GMIB Annuity Table, or -- the annuity payment determined for the same annuity option in accordance with the base Contract. (See "ANNUITY PAYMENTS".) If you choose not to receive annuity payments as guaranteed under the rider, you may elect any of the annuity options available under the Contract. OWNERSHIP. If the Owner is a natural person, the Owner must be the Annuitant. If a non-natural person owns the Contract, then the Annuitant will be considered the Owner in determining the Income Base and GMIB annuity payments. If Joint Owners are named, the age of the older Joint Owner will be used to determine the Income Base and GMIB annuity payments. For the purposes of the Guaranteed Income Benefits section of the prospectus, "you" always means the Owner or oldest Joint Owner or, if the owner is a non-natural person, the Annuitant. GMIB, QUALIFIED CONTRACTS AND DECEDENT CONTRACTS. The GMIB may have limited usefulness in connection with a Qualified Contract, such as an IRA (see "FEDERAL INCOME TAX CONSIDERATIONS -- Taxation of Qualified Contracts"), in circumstances where, due to the 10-year waiting period after purchase (and, for the GMIB Plus II and GMIB Plus II, after an Optional Reset/Step-Up) the Owner is unable to exercise the rider until after the required beginning date of required minimum distributions under the contract. In such event, required minimum distributions received from the Contract during the 10-year waiting period will have the effect of reducing the income base either on a proportionate or dollar- for-dollar basis, as the case may be. This may have the effect of reducing or eliminating the value of annuity payments under the GMIB. You should consult your tax adviser prior to electing a GMIB rider. Additionally, the GMIB is not available for purchase by a Beneficiary under a decedent's Non-Qualified Contract (see "FEDERAL INCOME TAX CONSIDERATIONS -- Taxation of Non-Qualified Contracts") or IRA (or where otherwise offered, under any other contract which is being "stretched" by a Beneficiary after the death of the owner or after the death of the annuitant in certain cases). The GMIB benefit may not be exercised until 10 years after purchase, and the benefit provides guaranteed monthly fixed income payments for life (or joint lives, if applicable), with payments guaranteed for a specified number of years. However, the tax rules require distributions prior to the end of the 10-year waiting period, commencing generally in the year after the Owner's death, and also prohibit payments for as long as the Beneficiary's life in certain circumstances. (See Appendix D for examples of the GMIB.) A-63 DESCRIPTION OF GMIB PLUS II In states where approved, the version of the GMIB Plus II described below is available for Contracts issued based on applications and necessary information that we receive in good order at our Annuity Administrative Office on and after May 4, 2009. In order for us to issue you the previous version of this rider (that has different features), we must receive your application and necessary information at our Annuity Administrative Office, in good order, before the close of the New York Stock Exchange on May 1, 2009. In states where approved, GMIB Plus II rider is available only for Owners up through age 78, and you can only elect GMIB Plus II at the time you purchase the Contract. GMIB Plus II may be exercised after a 10-year waiting period and then only within 30 days following a Contract Anniversary, provided that the exercise must occur no later than the 30-day period following the Contract Anniversary prior to the Owner's 91st birthday. Income Base. The Income Base is the greater of (a) or (b) below. (a) Highest Anniversary Value: On the issue date, the "Highest Anniversary Value" is equal to your initial purchase payment. Thereafter, the Highest Anniversary Value will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in Contract Value attributable to each subsequent withdrawal (including any applicable Withdrawal Charge). On each Contract Anniversary prior to the Owner's 81st birthday, the Highest Anniversary Value will be recalculated and set equal to the greater of the Highest Anniversary Value before the recalculation or the Contract Value on the date of the recalculation. The Highest Anniversary Value does not change after the Contract Anniversary immediately preceding the Owner's 81st birthday, except that it is increased for each subsequent purchase payment and reduced proportionally by the percentage reduction in Contract Value attributable to each subsequent withdrawal (including any applicable Withdrawal Charge). (b) Annual Increase Amount: On the issue date, the "Annual Increase Amount" is equal to your initial purchase payment. (For these purposes, all purchase payments credited within 120 days of the date we issued the Contract will be treated as if they were received on the date we issue the Contract.) Thereafter, the Annual Increase Amount is equal to (i) less (ii), where: (i) is purchase payments accumulated at the annual increase rate. The annual increase rate is 5% per year through the Contract Anniversary prior to the Owner's 91st birthday and 0% thereafter; and (ii) is withdrawal adjustments accumulated at the annual increase rate. Withdrawal adjustments in a Contract Year are determined according to (1) or (2) as defined below: (1) The withdrawal adjustment for each withdrawal in a Contract Year is the value of the Annual Increase Amount immediately prior to the withdrawal multiplied by the percentage reduction in Contract Value attributed to that withdrawal (including any applicable Withdrawal Charge); or (2) If total withdrawals in a Contract Year are 5% or less of the Annual Increase Amount on the issue date or on the prior Contract Anniversary after the first Contract Year, and if these withdrawals are paid to you (or the Annuitant if the Contract is owned by a non-natural person) or to another payee we agree to, the total withdrawal adjustments for that Contract Year will be set equal to the dollar amount of total withdrawals (including any applicable Withdrawal Charge) in that Contract Year. These withdrawal adjustments will replace the withdrawal adjustments defined in (1) above and be treated as though the corresponding withdrawals occurred at the end of that Contract Year. (See section (1) of Appendix D for examples of the calculation of the withdrawal adjustment.) For Contracts issued in New York State, the Annual Increase Amount shall not exceed 270% of total purchase payments or, if greater, 270% of the Annual Increase Amount as of the most recent Optional Step-Up. In determining GMIB Plus II annuity income, an amount equal to the Withdrawal Charge that would be assessed upon a complete withdrawal and the amount of any premium and other taxes that may apply will be deducted from the Income Base. OPTIONAL STEP-UP. On each Contract Anniversary as permitted, you may elect to reset the Annual Increase Amount to the Contract Value. An Optional Step-Up may be beneficial if your Contract Value has grown at a rate above the 5% accumulation rate on the Annual Increase Amount. HOWEVER, IF YOU ELECT TO RESET THE ANNUAL INCREASE AMOUNT, WE WILL RESTART THE 10-YEAR WAITING PERIOD. IN ADDITION, WE MAY RESET GMIB PLUS II RIDER CHARGE TO A RATE THAT DOES NOT EXCEED THE LOWER OF (A) MAXIMUM OPTIONAL STEP-UP CHARGE (1.50%) OR (B) THE CURRENT RATE WE CHARGE A-64 FOR THE SAME RIDER AVAILABLE FOR NEW CONTRACT PURCHASES AT THE TIME OF THE OPTIONAL STEP-UP. An Optional Step-Up is permitted only if: (1) the Contract Value exceeds the Annual Increase Amount immediately before the reset; and (2)the Owner (or oldest Joint Owner or Annuitant if the Contract is owned by a non-natural person) is not older than age 80 on the date of the Optional Step- Up. You may elect either: 1) a one-time Optional Step-Up at any Contract Anniversary provided the above requirements are met, or 2) Optional Step-Ups to occur under the Automatic Annual Step-Up. If you elect Automatic Annual Step- Ups, on any Contract Anniversary while this election is in effect, the Annual Increase Amount will reset to the Contract Value automatically, provided the above requirements are met. The same conditions described above will apply to each Automatic Step-Up. You may discontinue this election at any time by notifying us in writing at our Annuity Administrative Office (or by any other method acceptable to us), at least 30 days prior to the Contract Anniversary on which a reset may otherwise occur. Otherwise, it will remain in effect through the seventh Contract Anniversary following the date you make this election, at which point you must make a new election if you want Automatic Annual Step-Ups to continue. If you discontinue or do not re-elect the Automatic Annual Step- Ups, no Optional Step-Up will occur automatically on any subsequent Contract Anniversary unless you make a new election under the terms described above. If you discontinue Automatic Annual Step-Ups, the GMIB Plus II rider (and the rider charge) will continue, and you may choose to elect a one time Optional Step-Up or reinstate Automatic Annual Step-Ups as described above. We must receive your request to exercise the Optional Step-Up in writing at our Annuity Administrative Office, or by any other method acceptable to us. We must receive your request prior to the Contract Anniversary for an Optional Step-Up to occur on that Contract Anniversary. The Optional Step-Up: (1) resets the Annual Increase Amount to the Contract Value on the Contract Anniversary following the receipt of an Optional Step-Up election; (2) resets GMIB Plus II waiting period to the tenth Contract Anniversary following the date the Optional Step-Up took effect; and (3) may reset GMIB Plus II rider charge to a rate that does not exceed the lower of (a) the Maximum Optional Step-Up Charge (1.50%) or (b) the current rate we charge for the same rider available for new Contract purchases at the time of the Optional Step-Up. For Contracts issued in New York State, an Optional Step-Up also resets the maximum Annual Increase Amount to 270% multiplied by the reset Annual Increase Amount (if greater than the maximum Annual Increase Amount prior to the Optional Step-Up). On the date of the Optional Step-Up, the Contract Value on that day will be treated as a single purchase payment received on the date of the Step-Up for purposes of determining the Annual Increase Amount after the reset. All purchase payments and withdrawal adjustments previously used to calculate the Annual Increase Amount will be set equal to zero on the date of the Step-Up. INVESTMENT ALLOCATION RESTRICTIONS. If you elect GMIB Plus II, there are certain investment allocation restrictions. (See "THE CONTRACTS--Investment Allocation Restrictions for Certain Riders.") If you elect GMIB Plus II, you may not participate in the Dollar Cost Averaging (DCA) program. However, you may elect to participate in the Enhanced Dollar Cost Averaging (EDCA) program, provided that your destination subaccounts are selected in accordance with the investment allocation restrictions. GUARANTEED PRINCIPAL OPTION. On each Contract Anniversary starting with the tenth Contract Anniversary and through the Contract Anniversary prior to the Owner's 91st birthday, you may exercise the Guaranteed Principal Option. If the Owner is a non-natural person, the Annuitant's age is the basis for determining the birthday. If there are Joint Owners, the age of the oldest Owner is used for determining the birthday. We must receive your request to exercise the Guaranteed Principal Option in writing, or any other method that we agree to, within 30 days following the applicable Contract Anniversary. The Guaranteed Principal Option will take effect at the end of this 30-day period following that Contract Anniversary. By exercising the Guaranteed Principal Option, you elect to receive an additional amount to be added to your Contract Value intended to restore your initial investment in the Contract, in lieu of receiving GMIB Plus II payments. The additional amount is called the Guaranteed Principal Adjustment and is equal to (a) minus (b) where: (a) is purchase payments credited within 120 days of the date we issued the Contract (reduced proportionately by the percentage reduction in Contract Value attributable to each partial withdrawal (including applicable Withdrawal Charges) prior to the exercise of the Guaranteed Principal Option) and (b) the Contract Value on the Contract Anniversary immediately preceding exercise of the Guaranteed Principal Option. A-65 The Guaranteed Principal Option can only be exercised if (a) exceeds (b), as defined above. The Guaranteed Principal Adjustment will be added to each applicable subaccount in the ratio the portion of the Contract Value in such subaccount bears to the total Contract Value in all subaccounts. IT IS IMPORTANT TO NOTE THAT ONLY PURCHASE PAYMENTS MADE DURING THE FIRST 120 DAYS THAT YOU HOLD THE CONTRACT ARE TAKEN INTO CONSIDERATION IN DETERMINING THE GUARANTEED PRINCIPAL ADJUSTMENT. IF YOU ANTICIPATE MAKING PURCHASE PAYMENTS AFTER 120 DAYS, YOU SHOULD UNDERSTAND THAT SUCH PAYMENTS WILL NOT INCREASE THE GUARANTEED PRINCIPAL ADJUSTMENT. However, because purchase payments made after 120 days will increase your Contract Value, such payments may have a significant impact on whether or not a Guaranteed Principal Adjustment is due. Therefore, GMIB Plus II may not be appropriate for you if you intend to make additional purchase payments after the 120-day period and are purchasing the GMIB Plus II for this feature. The Guaranteed Principal Adjustment will never be less than zero. IF THE GUARANTEED PRINCIPAL OPTION IS EXERCISED, THE GMIB PLUS II RIDER WILL TERMINATE AS OF THE DATE THE OPTION TAKES EFFECT AND NO ADDITIONAL GMIB CHARGES WILL APPLY THEREAFTER. The variable annuity Contract, however, will continue, and the GMIB Plus II investment allocation restrictions, described above, will no longer apply. EXERCISING THE GMIB PLUS II RIDER. If you exercise GMIB Plus II, you must elect to receive annuity payments under one of the following fixed annuity options: (1) Life annuity with 5 years of annuity payments guaranteed. (2) Joint and last survivor annuity with 5 years of annuity payments guaranteed. Based on federal tax rules, this option is not available for Qualified Contracts where the difference in ages of the joint Annuitants (who are not spouses) is greater than 10 years. (See "ANNUITY PAYMENTS.") Option (2) is available in New York State only if the youngest Annuitant is age 35 or older. These options are described in the Contract and the GMIB Plus II rider. Partial annuitizations are not permitted. We reserve the right to reduce the Income Base for any Premium and Other Taxes that may apply. The GMIB Annuity Table is specified in the rider. This table is calculated based on the Annuity 2000 Mortality Table with a 10-year age set back with interest of 1.5% per annum for GMIB Plus II. As with other payout types, the amount you receive as an income payment also depends on your age, your sex (where permitted by law), and the annuity option you select. For GMIB Plus II, the annuity rates for attained ages 86 to 90 are the same as those for attained age 85. THE ANNUITY RATES IN THE GMIB ANNUITY TABLE ARE CONSERVATIVE AND A WITHDRAWAL CHARGE MAY BE APPLICABLE, SO THE AMOUNT OF GUARANTEED MINIMUM LIFETIME INCOME THAT THE GMIB PRODUCES MAY BE LESS THAN THE AMOUNT OF ANNUITY INCOME THAT WOULD BE PROVIDED BY APPLYING YOUR CONTRACT VALUE ON YOUR ANNUITY DATE TO THEN-CURRENT ANNUITY PURCHASE RATES. If you exercise GMIB Plus II, your annuity payments will be the greater of: -- the annuity payment determined by applying the amount of the Income Base to the GMIB Annuity Table, or -- the annuity payment determined for the same annuity option in accordance with the base Contract. (See "ANNUITY PAYMENTS.") If the amount of the guaranteed minimum lifetime income that the GMIB Plus II produces is less than the amount of annuity income that would be provided by applying Contract Value on the annuity date to the then-current annuity purchase rates, then you would have paid for a benefit that you did not use. If you take a full withdrawal of your Contract Value, your Contract is terminated by us due to its small Contract Value and inactivity (see "THE CONTRACTS--Inactive Contracts"), or your Contract lapses and there remains any Income Base, we will commence making income payments within 30 days of the date of the full withdrawal, termination or lapse. In such cases, your income payments under this benefit, if any, will be determined using the Income Base and any applicable withdrawal adjustment that was taken on account of the withdrawal, termination or lapse. The GMIB purchase payout rates are enhanced under the following circumstances (not applicable to Contracts issued in New York State). If: -- you begin withdrawals on or after your 62nd birthday; -- your Contract Value is fully withdrawn or decreases to zero at or after your 62nd birthday and there is an Income Base remaining; and -- the annuity option you select is the single life annuity with 5 years of annuity payments guaranteed; A-66 then the annual annuity payments under the GMIB Plus II rider will equal or exceed 5.5% of the Annual Increase Amount (calculated on the date the payments are determined). Alternatively, if: -- you begin withdrawals on or after your 60th birthday; -- your Contract Value is fully withdrawn or decreases to zero at or after your 60th birthday and there is an Income Base remaining; and -- the annuity option you select is the single life annuity with 5 years of annuity payments guaranteed; then the annual annuity payments under the GMIB Plus II rider will equal or exceed 5% of the Income Base (calculated on the date the payments are determined). If you choose not to receive annuity payments as guaranteed under GMIB Plus II, you may elect any of the annuity options available under the Contract. TERMINATING THE GMIB PLUS II RIDER. Except as otherwise provided in GMIB Plus II rider, the GMIB Plus II will terminate upon the earliest of: a) The 30th day following the Contract Anniversary prior to your 91st birthday; b) The date you make a complete withdrawal of your Contract Value (if there is an Income Base remaining, you will receive payments based on the remaining Income Base); c) The date you elect to receive annuity payments under the Contract and you do not elect to receive payments under the GMIB; d) Death of the Owner or Joint Owner (unless the spouse (aged 89 or younger) is the beneficiary and elects to continue the Contract), or death of the Annuitant if a non-natural person owns the Contract; e) A change for any reason of the Owner or Joint Owner or the Annuitant, if a non-natural person owns the Contract, unless we agree otherwise; f) The effective date of the Guaranteed Principal Option; or g) The date you assign your Contract, subject to our administrative procedures. When GMIB Plus II rider terminates, the corresponding GMIB Plus II rider charge terminates and the GMIB Plus II investment allocation restrictions no longer apply. (See Appendix D for examples illustrating the operation of GMIB Plus II.) For Contracts issued in all states except New York from February 24, 2009 through May 1, 2009, the following differences apply: (1) The annual increase rate is 6% through the Contract Anniversary immediately prior to your 91st birthday, and 0% per year thereafter. (2) If total withdrawals in a Contract Year are 6% or less of the Annual Increase Amount on the issue date or on the prior Contract Anniversary after the first Contract Year, and if these withdrawals are paid to you (or the Annuitant if the Contract is owned by a non-natural person) or to another payee we agree to, the total withdrawal adjustments for that Contract Year will be set equal to the dollar amount of total withdrawals (including any applicable withdrawal charge) in that Contract Year. (3) Different investment allocation restrictions apply. (See "THE CONTRACTS -- Allocation of Purchase Payments -- Investment Allocation Restrictions for Certain Riders.") (4) The fixed annuity options are the single life annuity with 10 years of annuity payments guaranteed (if you choose to start the Annuity Option after age 79, the year of the Guarantee Period component of the Annuity Option is reduced to: 9 years at age 80, 8 years at age 81, 7 years at age 82, 6 years at age 83, or 5 years at ages 84 through 90) or the joint and last survivor annuity with 10 years of annuity payments guaranteed (not available for Qualified Contracts where the difference in ages of the Joint Annuitants is greater than 10 years; this limitation only applies to Joint Annuitants who are not spouses). (5) The GMIB Annuity Table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set-back with interest of 1.5% per annum. A-67 (6) The GMIB payout rates are enhanced to be at least (a) 6% of the Income Base (calculated on the date the payments are determined) in the event: (i) you begin withdrawals on or after your 62nd birthday; (ii) your Contract Value is fully withdrawn or decreases to zero on or after your 62nd birthday and there is an Income Base remaining; and (iii) the annuity option you select is the single life annuity with 10 years of annuity payments guaranteed, or (b) 5% of the Income Base (calculated on the date the payments are determined) if: (i) you begin withdrawals on or after your 60th birthday; (ii) your Contract Value is fully withdrawn or decreases to zero on or after your 60th birthday and there is an Income Base remaining; and (iii) the annuity option you select is the single life annuity with 10 years of annuity payments guaranteed. For Contracts issued in all states except New York before February 24, 2009, differences (1) through (4) above apply, and the following replaces differences (5) and (6): (5) The GMIB Annuity Table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set-back with interest of 2.5% per annum. (6) The GMIB payout rates are enhanced to be at least 6% of the Income Base (calculated on the date the payments are determined) in the event: (i) you begin withdrawals on or after your 60th birthday; (ii) your Contract Value is fully withdrawn or decreases to zero on or after your 60th birthday and there is an Income Base remaining; and (iii) the annuity option you select is the single life annuity with 10 years of annuity payments guaranteed. For Contracts issued in New York State on or prior to May 1, 2009, differences (1), (2) and (3) apply, the following replaces differences (4), (5) and (6), and there is an additional difference (7): (4) The GMIB annuity rates for ages 85-90 are the same as those for age 84; (5) The GMIB Annuity Table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set-back with interest of 1.5% per annum. (6) The joint and last survivor annuity option is only available if the oldest annuitant's attained age is 55 or older. (7) The Annual Increase Amount shall not exceed 190% of total purchase payments or, if greater, 190% of the Annual Increase Amount as of the most recent Optional Step-Up; DESCRIPTION OF GMIB PLUS I (FORMERLY, THE PREDICTOR PLUS) In states where GMIB Plus I has been approved and GMIB Plus II has not been approved, GMIB Plus I is available only for Owners up through age 75, and you can only elect GMIB Plus I at the time you purchase the Contract. We may refer to GMIB Plus I as the Predictor Plus in marketing material or other communications. GMIB Plus I may be exercised after a 10-year waiting period and then only within 30 days following a Contract Anniversary, provided that the exercise must occur no later than the 30-day period following the Contract Anniversary on or following the Owner's 85th birthday. GMIB Plus I is otherwise identical to GMIB Plus II, with the following exceptions: (1) The GMIB Plus I Income Base is calculated as described above, except that the annual increase rate is 6% per year through the Contract Anniversary on or following the Owner's 85th birthday and 0% thereafter. (2) An "Optional Step-Up" under GMIB Plus II rider is referred to as an "Optional Reset" under the GMIB Plus I rider. An Optional Reset is permitted only if: (a) the Contract Value exceeds the Annual Increase Amount immediately before the reset; and (b) the Owner (or oldest Joint Owner or Annuitant if the Contract is owned by a non-natural person) is not older than age 75 on the date of the Optional Reset. (3) If your Income Base is increased due to an Optional Reset under the GMIB Plus I rider, we may increase the rider charge to the charge applicable to Contract purchases of the same rider at the time of the increase, but to no more than a maximum of 1.50%. (4) The Guaranteed Principal Option may be exercised on each Contract Anniversary starting with the tenth Contract Anniversary and through the contract anniversary prior to the Owner's 86th birthday. (5) We reserve the right to prohibit an Optional Reset if we no longer offer this benefit for a Class of the Contract. We are waiving this right with respect to purchasers of the Contract offered by this prospectus who elect or have elected the GMIB Plus I rider and will allow Optional Resets by those purchasers even if this benefit is no longer offered for a Class of Contract. A-68 (6) The fixed annuity options are the single life annuity with 10 years of annuity payments guaranteed (if you choose to start the Annuity Option after age 79, the year of the Guarantee Period component of the Annuity Option is reduced to: 9 years at age 80, 8 years at age 81, 7 years at age 82, 6 years at age 83, or 5 years at ages 84 and 85) or the joint and last survivor annuity with 10 years of annuity payments guaranteed (not available for Qualified Contracts where the difference in ages of the Joint Annuitants is greater than 10 years; this limitation only applies to Joint Annuitants who are not spouses). (7) Termination provision g) above does not apply, and the following replaces termination provision a), above: The 30th day following the Contract Anniversary on or following your 85th birthday. and the following replaces termination provision d), above: Death of the Owner or Joint Owner (unless the spouse (age 84 or younger) is the beneficiary and elects to continue the Contract), or death of the Annuitant if a non-natural person owns the Contract. (8) The GMIB Annuity Table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set-back with interest of 2.5% per annum. (9) If approved in your state, the GMIB payout rates are enhanced to be at least 6% of the Income Base (calculated on the date the payments are determined) in the event: (i) you begin withdrawals on or after your 60th birthday; (ii) your Contract Value is fully withdrawn or decreases to zero on or after your 60th birthday and there is an Income Base remaining; and (iii) the annuity option you select is the single life annuity with 10 years of annuity payments guaranteed. (10) If you elect GMIB Plus I, you are limited to allocating your purchase payments and Contract Value among the Fixed Account and/or following subaccounts: (a) the MetLife Conservative Allocation Portfolio (b) the MetLife Conservative to Moderate Allocation Portfolio (c) the MetLife Moderate Allocation Portfolio (d) the MetLife Moderate to Aggressive Allocation Portfolio (e) the American Funds Moderate Allocation Portfolio (f) the American Funds Balanced Allocation Portfolio (g) the American Funds Growth Allocation Portfolio (h) the Met/Franklin Templeton Founding Strategy Portfolio (i) the SSgA Growth and Income ETF Portfolio (j) the SSgA Growth ETF Portfolio (k) the BlackRock Money Market Portfolio. You may elect to participate in the EDCA program, provided that your destination subaccounts are one or more of the above-listed subaccounts. For Contracts issued before July 16, 2007, the enhanced GMIB purchase payout rates described in item (9) above will not be applied. For Contracts issued before February 26, 2007, we offered a version of GMIB Plus I that is no longer available. Under this prior version, when we calculate the Annual Increase Amount: (1) the annual increase rate is 5% per year through the Contract Anniversary on or following the Owner's 85th birthday; and (2) the amount of total withdrawal adjustments for a Contract Year will be set equal to the dollar amount of total withdrawals in such Contract Year provided that such total withdrawals do not exceed 5% of the Annual Increase Amount on the issue date or on the prior Contract Anniversary after the first Contract Year. The rider charge for this prior version of GMIB Plus I is 0.75% of the Income Base (with a maximum charge of up to 1.50% upon the exercise of the Optional Reset feature). (See Appendix D for examples of the GMIB.) For Contracts issued before February 27, 2006, you may elect an Optional Reset under GMIB Plus I as described above, except that: 1) you may elect an Optional Reset on any Contract Anniversary only on or after the third Contract A-69 Anniversary, and you may then elect an Optional Reset at any subsequent Contract Anniversary only if it has been at least three years since the last Optional Reset; and 2) you are required to affirmatively elect an Optional Reset in accordance with the procedures described above; the Automatic Annual Step-Up feature is not available. Subject to state approval, we will enhance your Contract to change the frequency of the Optional Resets from every third Contract Anniversary to every Contract Anniversary. You will also be able to elect Automatic Annual Step-Ups, as described above. DESCRIPTION OF GMIB II (FORMERLY, THE PREDICTOR) The GMIB II rider is no longer available for sale, effective for Contracts issued based on applications and necessary information received at our Annuity Administrative Office on and after May 4, 2009. In states where approved, GMIB II was available only for Owners up through age 75, and you can only elect GMIB II at the time you purchase the Contract. GMIB II may be exercised after a 10-year waiting period and then only within 30 days following a Contract Anniversary, provided that the exercise must occur no later than the 30-day period following the Contract Anniversary on or following the Owner's 85th birthday. We may refer to GMIB II as the Predictor in marketing materials or other communications. GMIB II is otherwise identical to GMIB Plus II, with the following exceptions: (1) The additional charge for GMIB II is lower (see "ASSET BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS--Guaranteed Minimum Income Benefit Rider"). (2) The GMIB II Income Base is calculated as described above, except that, for purposes of calculating the Annual Increase Amount: a. the annual increase rate is 5% per year through the Contract Anniversary on or following the Owner's 85th birthday and 0% thereafter, and b. the amount of total withdrawal adjustments for a Contract Year as calculated in paragraph (b)(ii)(2) of the "Income Base" section of "Description of GMIB Plus II" above will be set equal to the dollar amount of total withdrawals (including any applicable Withdrawal Charge) in such Contract Year provided that such total withdrawals do not exceed 5% of the Annual Increase Amount on the issue date or on the prior Contract Anniversary after the first Contract Year. (3) There is no Guaranteed Principal Option. (4) There is no Optional Reset feature. (5) The fixed annuity options are the single life annuity with 10 years of annuity payments guaranteed (if you choose to start the Annuity Option after age 79, the year of the Guarantee Period component of the Annuity Option is reduced to: 9 years at age 80, 8 years at age 81, 7 years at age 82, 6 years at age 83, or 5 years at ages 84 and 85) or the joint and last survivor annuity with 10 years of annuity payments guaranteed (not available for Qualified Contracts where the difference in ages of the Joint Annuitants is greater than 10 years; this limitation only applies to Joint Annuitants who are not spouses). (6) The GMIB Annuity Table is the Annuity 2000 Mortality Table with a 7-year age set-back with interest of 2.5% per annum and GMIB payout rates are not enhanced. (7) The following replaces termination provision a), above: The 30th day following the Contract Anniversary on or following your 85th birthday. (8) The following replaces termination provision d), above: Death of the owner or joint owner (unless the spouse (age 84 or younger) is the beneficiary and elects to continue the contract), or death of the annuitant if a non-natural person owns the contract. (9) The following replaces termination provision e), above: A change for any reason of the Owner or Joint Owner or the Annuitant if a non-natural person owns the Contract. (10) Termination provisions f) and g), above, do not apply. A-70 (11) There are no limitations to how you may allocate your purchase payments and Contract Value among the subaccounts, and you may participate in the Dollar Cost Averaging (DCA) program. (See Appendix D for examples illustrating the operation of GMIB II.) DESCRIPTION OF GMIB I The GMIB I Rider is not available for sale. In states where approved, you could only elect GMIB I at the time you purchased the Contract and if you were age 75 or less. Once elected, the rider cannot be terminated except as described below. GMIB I may be exercised after a 10-year waiting period, up through age 85, within 30 days following a Contract Anniversary. GMIB I is identical to GMIB II, with the following exceptions: (1) The GMIB I Income Base is calculated as described above in "Description of GMIB Plus II--Income Base", except that: a) Withdrawals may be payable as you direct without affecting the withdrawal adjustments; b) The annual increase rate is 6% per year through the Contract Anniversary immediately prior to the Owner's 81st birthday and 0% thereafter; and (c) If total withdrawals in a Contract Year are 6% or less of the Annual Increase Amount on the issue date or previous Contract Anniversary, if later, the total withdrawal adjustments for that Contract Year will be set equal to the dollar amount of total withdrawals in that Contract Year. (2) The following replaces termination provision d), above: Death of the Owner or death of the Annuitant if a non-natural person owns the Contract. (3) If you take a full withdrawal of your Contract Value, your Contract is terminated by us due to its small Contract Value and inactivity (see "THE CONTRACTS--Inactive Contracts"), or your Contract lapses, the GMIB I rider terminates (even if there remains any Income Base) and no payments will be made under the rider. We currently waive the contractual requirement that terminates the GMIB I rider in the event of the death of the Owner in circumstances where the spouse of the Owner elects to continue the Contract. (See "THE CONTRACTS--Options for Death Proceeds.") In such event, the GMIB I rider will automatically continue unless the spouse elects to terminate the rider. We are permanently waiving this requirement with respect to purchasers of the Contract offered by this prospectus who have elected GMIB I. GUARANTEED WITHDRAWAL BENEFITS We offer optional guaranteed withdrawal benefit riders for an additional charge. There are four different versions of the GWB under this Contract: -- Lifetime Withdrawal Guarantee II ("LWG II") -- Lifetime Withdrawal Guarantee I ("LWG I") -- Enhanced Guaranteed Withdrawal Benefit ("Enhanced GWB") -- Guaranteed Withdrawal Benefit I ("GWB I") LWG I is only offered in states where LWG II has not yet been approved. GWB I is no longer available for sale. Additionally, there may be versions of each rider that vary by issue date and state availability. Please check with your registered representative regarding which version(s) are available in your state. Each of the guaranteed withdrawal benefit riders guarantees that the entire amount of purchase payments you make will be returned to you through a series of withdrawals that you may begin taking immediately or at a later time, provided withdrawals in any Contract Year do not exceed the maximum amount allowed. This means that, regardless of negative investment performance, you can take specified annual withdrawals until the entire amount of the purchase payments you made during the time period specified in your rider has been returned to you. Moreover, if you make your first withdrawal on or after the date you reach age 59 1/2, the Lifetime Withdrawal Guarantee riders guarantee income, without annuitizing the Contract, for your life (and the life of your spouse, if the Joint Life version of the rider A-71 was elected, and your spouse elects to continue the Contract and is at least age 59 1/2 at continuation), even after the entire amount of purchase payments has been returned. (See "Description of the Lifetime Withdrawal Guarantee II" below.) If you purchase a guaranteed withdrawal benefit rider, you must elect one version at the time you purchase the Contract, prior to age 86. Contracts issued in New York State are subject to the following issue age requirements for the Lifetime Withdrawal Guarantee I: (1) the owner or oldest joint owner (or annuitant if the owner is a non-natural person) is at least 60 years old for the Single Life Version and (2) the Joint Life Version must be owned by joint owners who are spouses, each of whom is at least 63 years old (because of the requirement that the Contract be owned by joint owners, in New York the Joint Life Version is only available for Non-Qualified Contracts). You may not have this benefit and another living benefit (GMIB or GMAB) or the Enhanced Death Benefit rider in effect at the same time. Once elected, these riders may not be terminated except as stated below. FACTS ABOUT GUARANTEED WITHDRAWAL BENEFIT RIDERS MANAGING WITHDRAWALS. The GWB guarantee may be reduced if your annual withdrawals are greater than the maximum amount allowed, called the Annual Benefit Payment, which is described in more detail below. The GWB does not establish or guarantee a Contract Value or minimum return for any subaccount. The Benefit Base (as described below) under the GWB I and Enhanced GWB riders, and the Remaining Guaranteed Withdrawal Amount (as described below) under the Lifetime Withdrawal Guarantee rider, cannot be taken as a lump sum. (However, if you cancel the Lifetime Withdrawal Guarantee riders after a waiting period of at least fifteen years, the Guaranteed Principal Adjustment will increase your Contract Value to the purchase payments credited within the first 120 days of the date that we issue the Contract, reduced proportionately for any withdrawals. See "Description of the Lifetime Withdrawal Guarantee II--Cancellation and Guaranteed Principal Adjustment" below.) Income taxes and penalties may apply to your withdrawals, and Withdrawal Charges may apply to withdrawals during the first Contract Year unless you take the necessary steps to elect to take such withdrawals under a Systematic Withdrawal Program. Withdrawal charges will also apply to withdrawals of purchase payments that exceed the free withdrawal amount. (See "ASSET BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS--Withdrawal Charge.") IF IN ANY CONTRACT YEAR YOU TAKE CUMULATIVE WITHDRAWALS THAT EXCEED THE ANNUAL BENEFIT PAYMENT, THE TOTAL PAYMENTS THAT THE GWB GUARANTEES THAT YOU OR YOUR BENEFICIARY WILL RECEIVE FROM THE CONTRACT OVER TIME MAY BE LESS THAN THE INITIAL GUARANTEED WITHDRAWAL AMOUNT (TOTAL GUARANTEED WITHDRAWAL AMOUNT FOR THE LIFETIME WITHDRAWAL GUARANTEE RIDERS). THIS REDUCTION MAY BE SIGNIFICANT AND MEANS THAT RETURN OF YOUR PURCHASE PAYMENTS MAY BE LOST. THE GWB RIDER CHARGE WILL CONTINUE TO BE DEDUCTED AND CALCULATED BASED ON THE GUARANTEED WITHDRAWAL AMOUNT (TOTAL GUARANTEED WITHDRAWAL AMOUNT FOR THE LIFETIME WITHDRAWAL GUARANTEE RIDERS) UNTIL TERMINATION OF THE RIDER. GWB AND LWG RIDER CHARGES. If you elect one of the Lifetime Withdrawal Guarantee riders or one of the Guaranteed Withdrawal Benefit riders, a charge is deducted from your Contract Value during the accumulation phase on each Contract Anniversary. The rider charge is deducted from your Contract Value pro rata from each Subaccount, the Fixed Account and the EDCA Guaranteed Account. The Fixed Account is not available for Contracts purchased in the state of New York if you have selected a guaranteed withdrawal benefit. The charge for the Lifetime Withdrawal Guarantee II rider is equal to 1.25% (Single Life version) or 1.50% (Joint Life version) of the Total Guaranteed Withdrawal Amount (see "Description of the Lifetime Withdrawal Guarantee II -- Total Guaranteed Withdrawal Amount") on the applicable Contract Anniversary, after applying any 7.25% Compounding Income Amount and prior to taking into account any Automatic Annual Step-Up occurring on such Contract Anniversary. For Contracts issued prior to February 24, 2009, the charge for the Lifetime Withdrawal Guarantee II rider is equal to 0.65% (Single Life version) or 0.85% (Joint Life version) of the Total Guaranteed Withdrawal Amount on the applicable Contract Anniversary, after applying any 7.25% Compounding Income Amount and prior to taking into account any Automatic Annual Step-Up occurring on such Contract Anniversary. The charge for the Lifetime Withdrawal Guarantee I rider is equal to 0.50% (Single Life version) or 0.70% (Joint Life version) of the Total Guaranteed Withdrawal Amount on the applicable Contract Anniversary, after applying any 5% Compounding Income Amount and prior to taking into account any Automatic Annual Step-Up occurring on such Contract Anniversary. If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee II rider, we may reset the Lifetime Withdrawal Guarantee II rider charge to a rate we shall determine that does not exceed the Maximum Optional Step-Up Charge of 1.50% (Single Life version) or 1.80% (Joint Life version), 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. For Contracts issued prior to February 24, 2009, the Maximum Optional Step-up Charge is 1.25% (Single Life version) or 1.50% (Joint Life version). If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee I rider, A-72 we may increase the Lifetime Withdrawal Guarantee I rider charge to the charge applicable to current contract purchases of the same rider at the time of the step-up, but to no more than a maximum of 0.95% (Single Life version) or 1.40% (Joint Life version) of the Total Guaranteed Withdrawal Amount. If one of the Lifetime Withdrawal Guarantee riders is in effect, the rider charge will continue if your Remaining Guaranteed Withdrawal Amount (see "Description of the Lifetime Withdrawal Guarantee II -- Remaining Guaranteed Withdrawal Amount") equals zero. The charge for the Enhanced GWB rider is equal to 0.55% of the Guaranteed Withdrawal Amount (see "Description of the Enhanced Guaranteed Withdrawal Benefit -- Guaranteed Withdrawal Amount") on the applicable Contract Anniversary, prior to taking into account any Optional Reset occurring on such Contract Anniversary. (For Contracts issued prior to July 16, 2007, the charge for the Enhanced GWB rider is equal to 0.50% of the Guaranteed Withdrawal Amount on the applicable Contract Anniversary, prior to taking into account any Optional Reset occurring on such Contract Anniversary.) The charge for the GWB I rider is equal to 0.50% of the Guaranteed Withdrawal Amount on the applicable Contract Anniversary, prior to taking into account any Optional Reset occurring on such Contract Anniversary. If you elect an Optional Reset as permitted under the Enhanced GWB rider or the GWB I rider, we may increase the rider charge to the Enhanced GWB/GWB I rider charge applicable to current Contract purchases of the same rider at the time of the reset, but to no more than a maximum of 1.00% (for Enhanced GWB) or 0.95% (for GWB I) of the Guaranteed Withdrawal Amount. (For contracts issued prior to July 16, 2007, the maximum charge for the Enhanced GWB rider upon an Optional Reset is equal to 0.95% of the Guaranteed Withdrawal Amount.) If the Enhanced GWB or GWB I rider is in effect, the rider charge will not continue if your Benefit Base (see "Description of the Enhanced Guaranteed Withdrawal Benefit -- Benefit Base") equals zero. WITHDRAWAL CHARGE. We will apply a Withdrawal Charge to withdrawals from purchase payments of up to 9% of purchase payments taken in the first nine years following receipt of the applicable purchase payment. (See "ASSET BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS--Withdrawal Charge" and "THE CONTRACTS--Systematic Withdrawals.") TAXES. Withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 59 1/2, a 10% federal tax penalty may apply. TAX TREATMENT. THE TAX TREATMENT OF WITHDRAWALS UNDER THE GWB AND LWG RIDERS IS UNCERTAIN. IT IS CONCEIVABLE THAT THE AMOUNT OF POTENTIAL GAIN COULD BE DETERMINED BASED ON THE BENEFIT BASE (REMAINING GUARANTEED WITHDRAWAL AMOUNT UNDER THE LIFETIME WITHDRAWAL GUARANTEE RIDERS) AT THE TIME OF THE WITHDRAWAL, IF THE BENEFIT BASE (OR REMAINING GUARANTEED WITHDRAWAL AMOUNT) IS GREATER THAN THE CONTRACT VALUE (PRIOR TO WITHDRAWAL CHARGES, IF APPLICABLE). THIS COULD RESULT IN A GREATER AMOUNT OF TAXABLE INCOME REPORTED UNDER A WITHDRAWAL AND CONCEIVABLY A LIMITED ABILITY TO RECOVER ANY REMAINING BASIS IF THERE IS A LOSS ON SURRENDER OF THE CONTRACT. CONSULT YOUR TAX ADVISOR PRIOR TO PURCHASE. GWB, LIFETIME WITHDRAWAL GUARANTEE AND DECEDENT CONTRACTS. The Lifetime Withdrawal Guarantee is not available for purchase by a beneficiary under a decedent's Non-Qualified Contract (see "FEDERAL INCOME TAX CONSIDERATIONS--Taxation of Non-Qualified Contracts") or IRA (or where otherwise offered, under any other contract which is being "stretched" by a beneficiary after the death of the owner or after the death of the annuitant in certain cases). Under the tax rules, such contracts generally require distributions to commence in accordance with tax regulations by the end of the calendar year following the year of the owner's death. However, these required distributions can in certain circumstances exceed the Annual Benefit Payment, and any such excess will have the effect of reducing the lifetime payments under the Lifetime Withdrawal Guarantee. Note that the Enhanced GWB and GWB I riders are not available for purchase by a beneficiary under a decedent's Non-Qualified Contract. (See Appendix E for examples of the GWB riders.) DESCRIPTION OF THE LIFETIME WITHDRAWAL GUARANTEE II In states where approved, the version of the Lifetime Withdrawal Guarantee II described below is available for Contracts issued based on applications and necessary information that we receive in good order at our Annuity Administrative Office on and after May 4, 2009. In order for us to issue you the previous version of this rider (that has different investment allocation restrictions -- see "THE CONTRACTS -- Allocation of Purchase Payments -- Investment Allocation Restrictions for Certain Riders"), we must receive your application and necessary information at our Annuity Administrative Office, in good order, before the close of the New York Stock Exchange on May 1, 2009. A-73 TOTAL GUARANTEED WITHDRAWAL AMOUNT. While the Lifetime Withdrawal Guarantee II rider is in effect, we guarantee that you will receive a minimum amount over time. We refer to this minimum amount as the Total Guaranteed Withdrawal Amount . The initial Total Guaranteed Withdrawal Amount is equal to your initial purchase payment. We increase the Total Guaranteed Withdrawal Amount (up to a maximum of $10,000,000) by each additional purchase payment. For purposes of calculating the Total Guaranteed Withdrawal Amount, the B Plus Class bonus credits are not included. If you take a withdrawal that does not exceed the Annual Benefit Payment (see "Annual Benefit Payment" below), then we will not reduce the Total Guaranteed Withdrawal Amount. We refer to this type of withdrawal as a Non-Excess Withdrawal. If, however, you take a withdrawal that results in cumulative withdrawals for the current Contract Year that exceeds the Annual Benefit Payment, then we will reduce the Total Guaranteed Withdrawal Amount in the same proportion that the entire withdrawal (including any Withdrawal Charge) reduces the Contract Value. We refer to this type of withdrawal as an Excess Withdrawal. REMAINING GUARANTEED WITHDRAWAL AMOUNT. The Remaining Guaranteed Withdrawal Amount is the remaining amount you are guaranteed to receive over time. We increase the Remaining Guaranteed Withdrawal Amount (up to a maximum of $10,000,000) by additional purchase payments. If you take a Non-Excess Withdrawal, we will decrease the Remaining Guaranteed Withdrawal Amount by the amount of the Non-Excess Withdrawal (including any applicable Withdrawal Charges). If, however, you take an Excess Withdrawal, then we will reduce the Remaining Guaranteed Withdrawal Amount in the same proportion that the withdrawal (including any applicable Withdrawal Charges) reduces the Contract Value. 7.25% COMPOUNDING INCOME AMOUNT. For Contracts issued in all states except New York, on each Contract Anniversary until the earlier of: (a) the date of the second withdrawal from the Contract or (b) the tenth Contract Anniversary, we increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 7.25% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase (up to a maximum of $10,000,000). We may also increase the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount by the Automatic Annual Step-Up (discussed below), if that would result in a higher Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount. 6% Compounding Income Amount (New York State only). For Contracts issued in New York State, if you elect the Single Life Version of LWG II, on each Contract Anniversary beginning with the Contract Anniversary following the date you reach age 63, until the earlier of: (a) five years or (b) the date of the first withdrawal from the Contract, we increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 6% multiplied by the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount before such increase (up to a maximum of $10,000,000). If the first withdrawal is taken before the Contract Anniversary following the date you reach age 63, the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount will never be increased by the 6% Compounding Income Amount. If you elect the Joint Life Version of LWG II, on each Contract Anniversary beginning with the Contract Anniversary following the date the younger spouse reaches age 66 , until the earlier of: (a) five years or (b) the date of the first withdrawal from the Contract, we increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 6% multiplied by the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount before such increase (up to a maximum of $10,000,000). We may increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by the Automatic Annual Step-up (discussed below), if that would result in a higher Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount. If the first withdrawal is taken before the Contract Anniversary following the date the youngest spouse reaches age 66 , the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount will never be increased by the 6% Compounding Income Amount. ANNUAL BENEFIT PAYMENT. For Contracts issued in all states except New York, the initial Annual Benefit Payment is equal to the initial Total Guaranteed Withdrawal Amount multiplied by the 5% Withdrawal Rate (6% Withdrawal Rate if you make your first withdrawal on or after the date you reach age 76). If the Total Guaranteed Withdrawal Amount is later recalculated (for example, because of additional purchase payments, the 7.25% Compounding Income Amount, the Automatic Annual Step-Up, or Excess Withdrawals), the Annual Benefit Payment is reset equal to the new Total Guaranteed Withdrawal Amount multiplied by the 5% Withdrawal Rate (6% Withdrawal Rate if you make your first withdrawal on or after the date you reach age 76). Annual Benefit Payment (New York State only). For Contracts issued in New York State, if you elect the Single Life Version of LWG II, the Annual Benefit Payment is equal to the initial Total Guaranteed A-74 Withdrawal Amount multiplied by the 5% withdrawal rate (6% if you make the first withdrawal on or after the Contract Anniversary following the date you reach age 76). If you elect the Joint Life Version of LWG II, the initial Annual Benefit Payment is equal to the Total Guaranteed Withdrawal Amount multiplied by the 4.5% withdrawal rate (5% withdrawal rate if you make the first withdrawal on or after the Contract Anniversary following the date you and your spouse are at least age 63). If the Total Guaranteed Withdrawal Amount is later recalculated (for example, because of additional purchase payments, the 6% Compounding Income Amount, the Automatic Step-Up, or Excess Withdrawals), the Annual Benefit Payment is reset to equal the new Total Guaranteed Withdrawal Amount multiplied by the 4.5% withdrawal rate (5% withdrawal rate if you make your first withdrawal on or after the Contract Anniversary following the date the younger spouse reaches age 63). IT IS IMPORTANT TO NOTE: -- If you take your first withdrawal before the date you reach age 59 1/2 (or, for Contracts issued in New York State with the Joint Life version, if you take your first withdrawal before the date when you and your spouse are at least age 59 1/2), we will continue to pay the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted, even if your Contract Value declines to zero. This means if your Contract Value is depleted due to a Non-Excess Withdrawal or the deduction of the rider charge, and your Remaining Guaranteed Withdrawal Amount is greater than zero, we will pay you the remaining Annual Benefit Payment, if any, not yet withdrawn during the Contract Year that the Contract Value was depleted, and beginning in the following Contract Year, we will continue paying the Annual Benefit Payment to you each year until your Remaining Guaranteed Withdrawal Amount is depleted. This guarantees that you will receive your purchase payments regardless of market performance so long as you do not take Excess Withdrawals; however, you will not be guaranteed income for the rest of your life. -- If you take your first withdrawal on or after the date you reach age 59 1/2, we will continue to pay the Annual Benefit Payment each year for the rest of your life (and the life of your spouse, if the Joint Life version of the rider was elected, and your spouse elects to continue the Contract and is at least age 59 1/2 at continuation, and, for Contracts issued in New York State, if you take your first withdrawal when you and your spouse are at least age 59 1/2), even if your Remaining Guaranteed Withdrawal Amount and/or Contract Value declines to zero. This means if your Remaining Guaranteed Withdrawal Amount and/or your Contract Value is depleted due to a Non-Excess Withdrawal or the deduction of the rider charge, we will pay to you the remaining Annual Benefit Payment, if any, not yet withdrawn during the Contract Year that the Contract Value was depleted, and beginning in the following Contract Year, we will continue paying the Annual Benefit Payment to you each year for the rest of your life (and your spouse's life, if the Joint Life version of the rider was elected, and your spouse elects to continue the Contract and is at least age 59 1/2 at continuation). Therefore, you will be guaranteed income for life. -- If you take your first withdrawal on or after the date you reach age 76, your Annual Benefit payment will be set equal to a 6% Withdrawal Rate multiplied by the Total Guaranteed Withdrawal Amount. For Contracts issued in New York State, if you elect the Joint Life Version, if you take your first withdrawal on or after the Contract Anniversary following the date you and your spouse are at least age 63, your Annual Benefit Payment will be set equal to 5% withdrawal rate multiplied by the Total Guaranteed Withdrawal Amount. -- IF YOU HAVE ELECTED THE LWG II, YOU SHOULD CAREFULLY CONSIDER WHEN TO BEGIN TAKING WITHDRAWALS. IF YOU BEGIN TAKING WITHDRAWALS TOO SOON, YOU MAY LIMIT THE VALUE OF THE LWG II. FOR EXAMPLE, WE NO LONGER INCREASE YOUR TOTAL GUARANTEED WITHDRAWAL AMOUNT BY THE 7.25% COMPOUNDING INCOME AMOUNT (6% COMPOUNDING INCOME AMOUNT FOR CONTRACTS ISSUED IN NEW YORK STATE) ONCE YOU MAKE YOUR SECOND WITHDRAWAL. HOWEVER, IF YOU DELAY TAKING WITHDRAWALS FOR TOO LONG, YOU MAY LIMIT THE NUMBER OF YEARS AVAILABLE FOR YOU TO TAKE WITHDRAWALS IN THE FUTURE (DUE TO LIFE EXPECTANCY) AND YOU MAY BE PAYING FOR A BENEFIT YOU ARE NOT USING. -- At any time during the accumulation phase, you can elect to annuitize under current annuity rates in lieu of continuing the LWG II rider. Annuitization may provide higher income amounts if the current annuity option rates applied to the Contract Value (reduced by applicable premium tax, Contract Administrative Fee and Withdrawal Charges) on the Annuity Date exceed the payments under the LWG II rider. Also, income amounts provided by annuitizing under current annuity rates may be higher due to different tax treatment of this income compared to the tax treatment of the payments received under the LWG II rider (see "FEDERAL INCOME TAX CONSIDERATIONS"). A-75 MANAGING YOUR WITHDRAWALS. It is important that you carefully manage your annual withdrawals. To retain the full guarantees of this rider, your annual withdrawals cannot exceed the Annual Benefit Payment each Contract Year. In other words, you should not take Excess Withdrawals. We do not include Withdrawal Charges for the purpose of calculating whether you have made an Excess Withdrawal. IF YOU DO TAKE AN EXCESS WITHDRAWAL, WE WILL RECALCULATE THE TOTAL GUARANTEED WITHDRAWAL AMOUNT AND REDUCE THE ANNUAL BENEFIT PAYMENT TO THE NEW TOTAL GUARANTEED WITHDRAWAL AMOUNT MULTIPLIED BY THE 5% WITHDRAWAL RATE (6% WITHDRAWAL RATE IF YOU MAKE YOUR FIRST WITHDRAWAL ON OR AFTER THE DATE YOU REACH AGE 76). IN ADDITION, AS NOTED ABOVE, IF YOU TAKE AN EXCESS WITHDRAWAL, WE WILL REDUCE THE REMAINING GUARANTEED WITHDRAWAL AMOUNT IN THE SAME PROPORTION THAT THE WITHDRAWAL REDUCES THE CONTRACT VALUE. THESE REDUCTIONS IN THE TOTAL GUARANTEED WITHDRAWAL AMOUNT, ANNUAL BENEFIT PAYMENT, AND REMAINING GUARANTEED WITHDRAWAL AMOUNT MAY BE SIGNIFICANT. You are still eligible to receive either lifetime payments or the remainder of the Remaining Guaranteed Withdrawal Amount so long as the withdrawal that exceeded the Annual Benefit Payment did not cause your Contract Value to decline to zero. You can always take Non-Excess Withdrawals. However, if you choose to receive only a part of your Annual Benefit Payment in any given Contract Year, your Annual Benefit Payment is not cumulative and your Remaining Guaranteed Withdrawal Amount and Annual Benefit Payment will not increase. For example, since your Annual Benefit Payment is 5% of your Total Guaranteed Withdrawal Amount (or 6% if you make your first withdrawal on or after the date you reach age 76), you cannot withdraw 3% of the Total Guaranteed Withdrawal Amount in one year and then withdraw 7% of the Total Guaranteed Withdrawal Amount the next year without making an Excess Withdrawal in the second year. AUTOMATIC ANNUAL STEP-UP. On each Contract Anniversary prior to the Owner's 91st birthday (or, for Contracts issued in New York State with the Joint Life version, the younger spouse's 91st birthday), an Automatic Annual Step-Up will occur, provided that the Contract Value exceeds the Total Guaranteed Withdrawal Amount (after compounding) immediately before the Step-Up (and provided that you have not chosen to decline the Step-Up as described below). The Automatic Annual Step-Up: -- resets the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount to the Contract Value on the date of the Step-Up, up to a maximum of $10,000,000, regardless of whether or not you have taken any withdrawals; -- resets the Annual Benefit Payment equal to 5% of the Total Guaranteed Withdrawal Amount after the Step-Up (or 6% if you make your first withdrawal on or after the date you reach age 76) or, for Contracts issued in New York State, if the Joint Life version was elected, reset the Annual Benefit Payment equal to 4.5% of the Total Guaranteed Withdrawal Amount after the step-up (or 5% if you make your first withdrawal on or after the Contract Anniversary following the date the younger spouse is at least age 63); and -- may reset the LWG II rider charge to a rate that does not exceed the lower of: (a) the Maximum Optional Step-Up Charge (1.60% for the Single Life version or 1.80% for the Joint Life version) or (b) the current rate that we charge for the same rider available for new Contract purchases at the time of the Automatic Annual Step-Up. For contracts issued before February 24, 2009, the maximum charge upon an Automatic Annual Step-Up is 1.25% (Single Life version) or 1.50% (Joint Life version). In the event that the charge applicable to Contract purchases at the time of the Step-Up is higher than your current LWG II rider charge, we will notify you in writing a minimum of 30 days in advance of the applicable Contract Anniversary and inform you that you may choose to decline the Automatic Annual Step-Up. If you choose to decline the Automatic Annual Step-Up, you must notify us in accordance with our Administrative Procedures (currently we require you to submit your request in writing at our Annuity Administrative office no less than seven calendar days prior to the applicable Contract Anniversary). Once you notify us of your decision to decline the Automatic Annual Step-Up, you will no longer be eligible for future Automatic Annual Step-Ups until you notify us in writing at our Annuity Administrative office that you wish to reinstate the Step-Ups. This reinstatement will take effect at the next Contract Anniversary after we receive your request for reinstatement. Please note that the Automatic Annual Step-Up may be of limited benefit if you intend to make purchase payments that would cause your Contract Value to approach $10,000,000, because the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount cannot exceed $10,000,000. A-76 REQUIRED MINIMUM DISTRIBUTIONS. For IRAs and other Contracts subject to Section 401(a)(9) of the Internal Revenue Code, you may be required to take withdrawals to fulfill minimum distribution requirements generally beginning at age 70 1/2. These required distributions may be larger than your Annual Benefit Payment. If you enroll in the Automated Required Minimum Distribution program and elect annual withdrawals, after the first Contract Year, we will increase your Annual Benefit Payment to equal your most recently calculated required minimum distribution amount, if such amounts are greater than your Annual Benefit Payment. Otherwise, any cumulative withdrawals you make to satisfy your required minimum distribution amount will be treated as Excess Withdrawals if they exceed your Annual Benefit Payment. YOU MUST BE ENROLLED ONLY IN THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM TO QUALIFY FOR THIS INCREASE IN THE ANNUAL BENEFIT PAYMENT. YOU MAY NOT BE ENROLLED IN ANY OTHER SYSTEMATIC WITHDRAWAL PROGRAM. THE FREQUENCY OF YOUR WITHDRAWALS MUST BE ANNUAL. THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM IS BASED ON INFORMATION RELATING TO THIS CONTRACT ONLY. To enroll in the Automated Required Minimum Distribution program, please contact our Annuity Administrative Office. INVESTMENT ALLOCATION RESTRICTIONS. If you elect the LWG II rider, there are certain investment allocation restrictions. Please see "THE CONTRACTS--Investment Allocation Restrictions For Certain Riders". If you elect the LWG II, you may not participate in the Dollar Cost Averaging (DCA) program. However, you may elect to participate in the Enhanced Dollar Cost Averaging (EDCA) program, provided that your destination investment portfolios are selected in accordance with the investment allocation restrictions. JOINT LIFE VERSION. A Joint Life version of the LWG II rider is available for a charge of 1.50% (which may increase upon an Automatic Annual Step-Up to a maximum of 1.80%). Like the Single Life version of the LWG II rider, the Joint Life version must be elected at the time you purchase the Contract, and the Owner (or oldest Joint Owner) must be age 85 or younger. Under the Joint Life version, when the Owner of the Contract dies (or when the first Joint Owner dies), the LWG II rider will automatically remain in effect only if the spouse is the primary beneficiary and elects to continue the Contract under the spousal continuation provisions. (See "THE CONTRACTS--Options for Death Proceeds.") This means that if you purchase the Joint Life version and subsequently get divorced, or your spouse is no longer the primary Beneficiary at the time of your death, he or she will not be eligible to receive payments under the LWG II rider. If the spouse is younger than age 59 1/2 when he or she elects to continue the Contract, the spouse will receive the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted. If the spouse is age 59 1/2 or older when he or she elects to continue the Contract, the spouse will receive the Annual Benefit Payment each year for the remainder of his or her life. If the first withdrawal was taken before the Contract Owner died (or before the first Joint Owner died), the Withdrawal Rate upon continuation of the Contract and LWG II rider by the spouse will be based on the age of the Contract Owner, or oldest Joint Owner, at the time the first withdrawal was taken (see "Annual Benefit Payment" above). In situations in which a trust is both the Owner and Beneficiary of the Contract, the Joint Life version of the LWG II would not apply. In addition, because of the definition of "spouse" under federal law, a purchaser who has or is contemplating a civil union or same-sex marriage should note that such partner/spouse would not be able to receive continued payments after the death of the Contract Owner under the Joint Life version of the LWG II. For contracts issued prior to February 24, 2009, the current charge for the Joint Life version is 0.85% (which may increase upon an Automatic Annual Step-Up to a maximum of 1.50%). For Contracts issued in New York State, in order for you and your spouse to receive lifetime income, you and your spouse must be at least age 59 1/2 at the time of the first withdrawal. Please note that a change of the primary Beneficiary will terminate the LWG II rider in New York State. The age at which the 6% Compounding Income Amount may begin to be applied to the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount is different for the Single Life and Joint Life versions for Contracts issued in New York State (see "6% Compounding Income Amount" above.) In addition, the withdrawal rate for the Joint Life Version may differ from the withdrawal rate for the Single Life Version for Contracts issued in New York State (see "Annual Benefit Payment" above). CANCELLATION AND GUARANTEED PRINCIPAL ADJUSTMENT. You may elect to cancel the LWG II rider on the Contract Anniversary every five Contract Years for the first 15 Contract Years and annually thereafter. We must receive your cancellation request within 30 days following the applicable Contract Anniversary in accordance with our Administrative Procedures (currently we require you to submit your request in writing at our Annuity Administrative Office). The cancellation will take effect upon our receipt of your request. If cancelled, the LWG II rider will terminate, we will no longer deduct the LWG II rider charge, and the investment allocation restrictions described in "Investment Allocation Restrictions For Certain Riders" will no longer apply. The variable annuity Contract, however, will continue. If you cancel the LWG II rider on the fifteenth Contract Anniversary or any Contract Anniversary thereafter, we will add a Guaranteed Principal Adjustment to your Contract Value. The Guaranteed Principal Adjustment is intended to A-77 restore your initial investment in the Contract in the case of poor investment performance. The Guaranteed Principal Adjustment is equal to (a)-(b) where: (a) is purchase payments credited within 120 days of the date that we issued the Contract, reduced proportionately by the percentage reduction in Contract Value attributable to any partial withdrawals taken (including any applicable Withdrawal Charges) and (b) is the Contract Value on the date of cancellation. The Guaranteed Principal Adjustment will be added to each applicable subaccount in the ratio the portion of the Contract Value in such subaccount bears to the total Contract Value in all subaccounts. The Guaranteed Principal Adjustment will never be less than zero. Only purchase payments made during the first 120 days that you hold the Contract are taken into consideration in determining the Guaranteed Principal Adjustment. Contract Owners who anticipate making purchase payments after 120 days should understand that such payments will not increase the Guaranteed Principal Adjustment. Purchase payments made after 120 days are added to your Contract Value and impact whether or not a benefit is due. Therefore, the LWG II may not be appropriate for you if you intend to make additional purchase payments after the 120-day period and are purchasing the LWG II for its Guaranteed Principal Adjustment feature. TERMINATION OF THE LIFETIME WITHDRAWAL GUARANTEE II RIDER. The Lifetime Withdrawal Guarantee II rider will terminate upon the earliest of: (1) the date of a full withdrawal of the Contract Value (a pro rata portion of the rider charge will be assessed; you are still eligible to receive either the Remaining Guaranteed Withdrawal Amount or lifetime payments, provided the withdrawal did not exceed the Annual Benefit Payment and the provisions and conditions of the rider have been met); (2) the date all of the Contract Value is applied to an annuity option (a pro rata portion of the rider charge will be assessed); (3) the date there are insufficient funds to deduct the Lifetime Withdrawal Guarantee rider charge from the Contract Value and your Contract is thereby terminated (whatever Contract Value is available will be applied to pay the rider charge and you are still eligible to receive either the Remaining Guaranteed Withdrawal Amount or lifetime payments, provided the provisions and conditions of the rider have been met; however, you will have no other benefits under the Contract); (4) death of the Owner or Joint Owner (or the Annuitant if the Owner is a non-natural person), except where the Contract is issued under the Joint Life version of the Lifetime Withdrawal Guarantee, the primary Beneficiary is the spouse, and the spouse elects to continue the Contract under the spousal continuation provisions of the Contract; (5) change of the Owner or Joint Owner for any reason (a pro rata portion of the rider charge will be assessed), subject to our administrative procedures; (6) the effective date of the cancellation of the rider; (7) termination of the Contract to which the rider is attached (a pro rata portion of the rider charge will be assessed, except for a termination due to death); (8) the date you assign your Contract, subject to our administrative procedures (a pro rata portion of the rider charge will be assessed); or. (9) only for Contracts issued in New York State with the Joint Life version, the effective date of a change of the primary Beneficiary (a pro- rata portion of the rider charge will be assessed), subject to our administrative procedures. Once the rider is terminated, the LWG II rider charge will no longer be deducted and the LWG II investment allocation restrictions will no longer apply. ADDITIONAL INFORMATION. The LWG II rider may affect the death benefit available under your Contract. If the Owner or Joint Owner should die while the LWG II rider is in effect, an alternate death benefit amount will be calculated under the LWG II rider that can be taken in a lump sum. The LWG II death benefit amount that may be taken as a lump sum will be equal to total purchase payments less any partial withdrawals (deducted on a dollar-for-dollar basis). If this death benefit amount is greater than the death benefit provided by your Contract, and if you made no Excess A-78 Withdrawals, then this death benefit amount will be paid instead of the death benefit provided by the Contract. All other provisions of your Contract's death benefit will apply. Alternatively, the Beneficiary may elect to receive the Remaining Guaranteed Withdrawal Amount as a death benefit, in which case we will pay the Remaining Guaranteed Withdrawal Amount on a monthly basis (or any mutually agreed upon frequency, but no less frequently than annually) until the Remaining Guaranteed Withdrawal Amount is exhausted. The surviving spouse's withdrawal rights then come to an end. Currently, there is no minimum dollar amount for the payments; however, we reserve the right to accelerate any payment, in a lump sum, that is less than $500 (see below). This death benefit will be paid instead of the applicable contractual death benefit or the additional death benefit amount calculated under the LWG II as described above. Otherwise, the provisions of those contractual death benefits will determine the amount of the death benefit. Except as may be required by the Internal Revenue Code, an annual payment will not exceed the Annual Benefit Payment. If your beneficiary dies while such payments are made, we will continue making the payments to the beneficiary's estate unless we have agreed to another payee in writing. If the Contract is a Non-Qualified Contract, any death benefit must be paid out over a time period and in a manner that satisfies Section 72(s) of the Internal Revenue Code. If the Owner (or the Annuitant, if the Owner is not a natural person) dies prior to the "annuity starting date" (as defined under the Internal Revenue Code and regulations thereunder), the period over which the Remaining Guaranteed Withdrawal Amount is paid as a death benefit cannot exceed the remaining life expectancy of the payee under the appropriate IRS tables. For purposes of the preceding sentence, if the payee is a non-natural person, the Remaining Guaranteed Withdrawal Amount must be paid out within 5 years from the date of death. Payments under this death benefit must begin within 12 months following the date of death. We reserve the right to accelerate any payment, in a lump sum, that is less than $500 or to comply with requirements under the Internal Revenue Code (including minimum distribution requirements for IRAs and other contracts subject to Section 401(a)(9) of the Internal Revenue Code and Non-Qualified Contracts subject to Section 72(s)). If you terminate the LWG II rider because (1) you make a total withdrawal of your Contract Value; (2) your Contract Value is insufficient to pay the LWG II rider charge; or (3) the Contract Owner dies, except where the beneficiary or Joint Owner is the spouse of the Owner and the spouse elects to continue the Contract, you may not make additional purchase payments under the Contract. DESCRIPTION OF THE LIFETIME WITHDRAWAL GUARANTEE I In states where the Lifetime Withdrawal Guarantee II is not yet approved, we offer (in states where approved) the Lifetime Withdrawal Guarantee I rider. The Lifetime Withdrawal Guarantee I rider is identical to the Lifetime Withdrawal Guarantee II, with the exceptions described below. TOTAL GUARANTEED WITHDRAWAL AMOUNT. The maximum Total Guaranteed Withdrawal Amount under the Lifetime Withdrawal Guarantee I is $5,000,000. If you elect the Lifetime Withdrawal Guarantee I rider and take an Excess Withdrawal, we will reduce the Total Guaranteed Withdrawal Amount by an amount equal to the difference between the Total Guaranteed Withdrawal Amount after the withdrawal and the Contract Value after the withdrawal (if lower). On the other hand, if you elect the LWG II rider and take an Excess Withdrawal, we will reduce the Total Guaranteed Withdrawal Amount in the same proportion that the withdrawal reduces the Contract Value. REMAINING GUARANTEED WITHDRAWAL AMOUNT. The maximum Remaining Guaranteed Withdrawal Amount under the Lifetime Withdrawal Guarantee I is $5,000,000. If you elect the Lifetime Withdrawal Guarantee I rider and take a withdrawal, we will reduce the Remaining Guaranteed Withdrawal Amount by the amount of each withdrawal regardless of whether it is an Excess or Non-Excess withdrawal. However, if the withdrawal is an Excess Withdrawal, then we will additionally reduce the Remaining Guaranteed Withdrawal Amount to equal the difference between the Remaining Guaranteed Withdrawal Amount after the withdrawal and the Contract Value after the withdrawal (if lower). On the other hand, if you elect the LWG II rider and take a withdrawal, we will reduce the Remaining Guaranteed Withdrawal Amount by the amount of each withdrawal for withdrawals that are Non- Excess Withdrawals and for Excess Withdrawals, we will reduce the Remaining Guaranteed Withdrawal Amount in the same proportion that the withdrawal reduces the Contract Value. COMPOUNDING INCOME AMOUNT. If you elect the Lifetime Withdrawal Guarantee I rider, on each Contract Anniversary until the earlier of: (a) the date of the first withdrawal from the Contract or (b) the tenth Contract Anniversary, we increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 5% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase (up to a maximum of $5,000,000). On the other hand, if you elect the LWG II rider, on each Contract Anniversary until the earlier of: (a) the date of the second withdrawal from the Contract or (b) the tenth Contract Anniversary, we increase the Total Guaranteed Withdrawal Amount and the Remaining A-79 Guaranteed Withdrawal Amount by an amount equal to 7.25% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase. ANNUAL BENEFIT PAYMENT. Under the Lifetime Withdrawal Guarantee I, the Annual Benefit Payment is set equal to the Total Guaranteed Withdrawal Amount multiplied by the 5% Withdrawal Rate (there is no 6% Withdrawal Rate for taking later withdrawals). AUTOMATIC ANNUAL STEP-UP. If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee I rider, we may increase the Lifetime Withdrawal Guarantee I rider charge to the charge applicable to current Contract purchases of the same rider at the time of the step-up, but to no more than a maximum of 0.95% (Single Life version) or 1.40% (Joint Life version) of the Total Guaranteed Withdrawal Amount. Automatic Annual Step-Ups may occur on each Contract Anniversary prior to the Owner's 86th birthday. RIDER CHARGE. The charge for the Lifetime Withdrawal Guarantee I rider is 0.50% (Single Life version) or 0.70% (Joint Life version) of the Total Guaranteed Withdrawal Amount (see "ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS--Guaranteed Withdrawal Benefit Rider"). INVESTMENT ALLOCATION RESTRICTIONS. If you elect the Lifetime Withdrawal Guarantee I rider, you are limited to allocating your purchase payments and Contract Value among the Fixed Account and/or the following Subaccounts: (1) MetLife Conservative Allocation Subaccount (2) MetLife Conservative to Moderate Allocation Subaccount (3) MetLife Moderate Allocation Subaccount (4) MetLife Moderate to Aggressive Allocation Subaccount (5) American Funds Moderate Allocation Subaccount (6) American Funds Balanced Allocation Subaccount (7) American Funds Growth Allocation Subaccount (8) Met/Franklin Templeton Founding Strategy Subaccount (9) the SSgA Growth and Income ETF Portfolio (10) the SSgA Growth ETF Portfolio (11) BlackRock Money Market Subaccount. You may also elect to participate in dollar cost averaging or EDCA programs, provided that your destination Subaccounts are one or more of the above listed Subaccounts you have chosen. On the other hand, if you elect the LWG II rider, you must comply with the restrictions listed in "THE CONTRACTS--Investment Allocation Restrictions For Certain Riders." DESCRIPTION OF THE ENHANCED GUARANTEED WITHDRAWAL BENEFIT BENEFIT BASE. The Guaranteed Withdrawal Amount is the maximum total amount of money that you are guaranteed to receive over time under the Enhanced GWB rider. At issue, the Guaranteed Withdrawal Amount and the Benefit Base are both equal to your initial purchase payment plus the GWB Bonus Amount. At any subsequent point in time, the Benefit Base is the remaining amount of money that you are guaranteed to receive through withdrawals under the Enhanced GWB rider. Your Benefit Base will change with each purchase payment, or as the result of an Optional Reset. Also, each withdrawal will reduce your Benefit Base. If negative investment performance reduces your Contract Value below the Benefit Base, you are still guaranteed to be able to withdraw the entire amount of your Benefit Base. The Benefit Base is equal to: -- Your initial purchase payment, increased by the 5% GWB Bonus Amount; -- Increased by each subsequent purchase payment, and by the 5% GWB Bonus Amount; -- Reduced dollar for dollar by Benefits Paid, which are withdrawals and amounts applied to an annuity option (currently, you may not apply amounts less than your entire Contract Value to an annuity option); and A-80 -- If a Benefit Paid from your Contract is not payable to the Contract Owner or the Contract Owner's bank account (or to the Annuitant or the Annuitant 's bank account, if the Owner is a non-natural person), or results in cumulative Benefits Paid for the current Contract Year exceeding the Annual Benefit Payment, and the resulting Benefit Base exceeds the Contract Value, an additional reduction in the Benefit Base will be made. This additional reduction will be equal to the difference between the Benefit Base and your Contract Value after the decrease for the Benefits Paid. The Benefit Base will also be reset as a result of an Optional Reset as described below. (See Appendix E for examples of how withdrawals affect the Benefit Base.) ANNUAL BENEFIT PAYMENT. The Annual Benefit Payment is the maximum amount of your Benefit Base you may withdraw each Contract Year without adversely impacting the amount guaranteed to be available to you through withdrawals over time. The initial Annual Benefit Payment is equal to the initial Benefit Base multiplied by the GWB Withdrawal Rate (7%). The Annual Benefit Payment is reset after each subsequent purchase payment to the greater of: (1) the Annual Benefit Payment before the subsequent purchase payment, and (2) the GWB Withdrawal Rate multiplied by the Benefit Base after the subsequent purchase payment. The Annual Benefit Payment will also be reset as a result of an Optional Reset as described below. You can continue to receive annual withdrawals in an amount equal to or less than your Annual Benefit Payment until your Benefit Base is depleted. MANAGING YOUR WITHDRAWALS. It is important that you carefully manage your annual withdrawals. To retain the guarantees of this rider, your annual withdrawals (including any applicable Withdrawal Charge) cannot exceed the Annual Benefit Payment each Contract Year. If a withdrawal from your Contract does result in annual withdrawals during a Contract Year exceeding the Annual Benefit Payment, or if the withdrawal is not payable to the Contract Owner or the Contract Owner's bank account (or to the Annuitant or the Annuitant 's bank account, if the Owner is a non-natural person), the Annual Benefit Payment will be recalculated and may be reduced. The new Annual Benefit Payment will equal the lower of (1) the Annual Benefit Payment before the withdrawal and (2) your Contract Value after the decrease for the withdrawal (including any applicable Withdrawal Charge) multiplied by the GWB Withdrawal Rate. This reduction may be significant. Furthermore, because the GWB rider charge is assessed as a percentage of the Guaranteed Withdrawal Amount, any decrease of the Annual Benefit Payment caused by an excess withdrawal results in an increase in the cost of the rider relative to the benefits you will receive. (See Appendix E for examples of how withdrawals and subsequent purchase payments affect the Annual Benefit Payment.) You can always take annual withdrawals less than the Annual Benefit Payment. However, if you choose to receive only a part of, or none of, your Annual Benefit Payment in any given Contract Year, your Annual Benefit Payment is not cumulative and your Benefit Base and Annual Benefit Payment will not increase. For example, if your Annual Benefit Payment is 7% of your Benefit Base and you withdraw only 4% one year, you cannot then withdraw 10% the next year without exceeding your Annual Benefit Payment. REQUIRED MINIMUM DISTRIBUTIONS. For IRAs and other Contracts subject to Section 401(a)(9) of the Internal Revenue Code, you may be required to take withdrawals to fulfill minimum distribution requirements generally beginning at age 70 1/2. These required distributions may be larger than your Annual Benefit Payment. If you enroll in the Automated Required Minimum Distribution program and elect annual withdrawals, after the first Contract Year, we will increase your Annual Benefit Payment to equal your most recently calculated required minimum distribution amount, if such amounts are greater than your Annual Benefit Payment. Otherwise, any cumulative withdrawals you make to satisfy your required minimum distribution amount will be treated as excess withdrawals if they exceed your Annual Benefit Payment. YOU MUST BE ENROLLED ONLY IN THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM TO QUALIFY FOR THIS INCREASE IN THE ANNUAL BENEFIT PAYMENT. YOU MAY NOT BE ENROLLED IN ANY OTHER SYSTEMATIC WITHDRAWAL PROGRAM. The frequency of your withdrawals must be annual. The Automated Required Minimum Distribution program is based on information relating to this Contract only. To enroll in the Automated Required Minimum Distribution program, please contact our Annuity Administrative Office. GUARANTEED WITHDRAWAL AMOUNT. We assess the GWB rider charge as a percentage of the Guaranteed Withdrawal Amount, which is initially set at an amount equal to your initial purchase payment plus the GWB Bonus Amount. For purposes of calculating the Guaranteed Withdrawal Amount, B Plus Class bonus credits are not included. The Guaranteed Withdrawal Amount may increase with subsequent purchase payments. In this case, the Guaranteed Withdrawal Amount will be reset equal to the greater of: (1) the Guaranteed Withdrawal Amount before the purchase payment and (2) the Benefit Base after the purchase payment. Withdrawals do not decrease the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will also be reset as a result of an Optional Reset as A-81 described below. If your Guaranteed Withdrawal Amount increases, the amount of the Enhanced GWB rider charge we deduct will increase because the rider charge is a percentage of your Guaranteed Withdrawal Amount. OPTIONAL RESET. At any Contract Anniversary prior to the 86th birthday of the Owner (or the oldest Joint Owner, or the Annuitant if the Contract is owned by a non-natural person), you may elect an Optional Reset. The purpose of an Optional Reset is to "lock-in" a higher Benefit Base, which may increase the amount of the Annual Benefit Payment and lengthen the period of time over which these withdrawals can be taken. The Optional Reset will reset the Annual Benefit Payment, Benefit Base and Guaranteed Withdrawal Amount, provided that your Contract Value is larger than the Benefit Base immediately before the reset. We reserve the right to prohibit an Optional Reset election if we no longer offer this benefit. An Optional Reset will: -- Reset your Guaranteed Withdrawal Amount and Benefit Base equal to the Contract Value on the date of the reset; -- Reset your Annual Benefit Payment equal to the Contract Value on the date of the reset multiplied by the GWB Withdrawal Rate (7%); and -- Reset the Enhanced GWB rider charge equal to then current level we charge for the same rider at the time of the reset, up to the maximum charge of 1.00%. You may elect either a one-time Optional Reset or Automatic Annual Resets. A one-time Optional Reset is permitted only if: (1) your Contract Value is larger than the Benefit Base immediately before the reset, and (2) the reset occurs prior to the 86th birthday of the Owner (or oldest Joint Owner, or the Annuitant if the Contract is owned by a non-natural person). We must receive your request for a one time Optional Reset in accordance with our administrative procedures (currently we require you to submit your request in writing at our Annuity Administrative Office) before the applicable Contract Anniversary. The Optional Reset will take effect on the next Contract Anniversary following our receipt of your written request. If you elect Automatic Annual Resets, a reset will occur automatically on any Contract Anniversary if: (1) your Contract Value is larger than the Guaranteed Withdrawal Amount immediately before the reset, and (2) the Contract Anniversary is prior to the 86th birthday of the Owner (or oldest Joint Owner or Annuitant if the Contract is owned by a non-natural person). The same conditions will apply to each Automatic Annual Reset. In the event that the charge applicable to Contract purchases at the time of the Automatic Annual Reset is higher than your current Enhanced GWB rider charge, we will notify you in writing a minimum of 30 days in advance of the applicable Contract Anniversary and inform you that you may choose to decline the Automatic Annual Reset. You may discontinue Automatic Annual Resets by notifying us in writing, at our Annuity Service Center (or by any other method acceptable to us), prior to the Contract Anniversary on which a reset may otherwise occur. If you discontinue the Automatic Annual Resets, no reset will occur automatically on any subsequent Contract Anniversary unless you make a new election under the terms described above. (If you discontinue Automatic Annual Resets, the Enhanced GWB rider (and the rider charge) will continue, and you may choose to elect a one- time Optional Reset or reinstate Automatic Annual Resets.) It is possible to elect a one-time Optional Reset when the Contract Value is larger than the Benefit Base but smaller than the Guaranteed Withdrawal Amount. (By contrast, an Automatic Annual Reset will never occur if the Contract Value is smaller than the Guaranteed Withdrawal Amount.) If you elect a one-time Optional Reset when the Contract Value before the reset was less than the Guaranteed Withdrawal Amount, you would lock in a higher Benefit Base, which would increase the total amount you are guaranteed to receive through withdrawals under the Enhanced GWB rider, and extend the period of time over which you could make those withdrawals. However, you would also decrease the Annual Benefit Payment and the Guaranteed Withdrawal Amount. You should consider electing a one-time Optional Reset when your Contract Value is smaller than the Guaranteed Withdrawal Amount only if you are willing to accept the decrease in the Annual Benefit Payment and Guaranteed Withdrawal Amount in return for locking in the higher Benefit Base. Otherwise, you should only elect a one-time Optional Reset when your Contract Value is larger than the Guaranteed Withdrawal Amount. Any benefit of a one-time Optional Reset or Automatic Annual Reset also depends on the current Enhanced GWB rider charge. If the current charge in effect at the time of the reset is higher than the charge you are paying, it may not be beneficial to elect a reset because we will begin applying the higher current charge at the time of the reset (even if a one-time Optional Reset results in a decrease of your Annual Benefit Payment and/or your Guaranteed Withdrawal Amount). A-82 For Contracts issued prior to July 16, 2007, you may elect an Optional Reset beginning with the third Contract Anniversary (as long as it is prior to the Owner's 86th birthday) and at any subsequent Contract Anniversary prior to the Owner's 86th birthday as long as it has been at least three years since the last Optional Reset. Automatic Annual Resets are not available CANCELLATION OF THE ENHANCED GWB RIDER. You may elect to cancel the Enhanced GWB rider in accordance with our Administrative Procedures (currently we require you to submit your cancellation request in writing at our Annuity Administrative Office) during the 90-day period following your fifth Contract Anniversary. Such cancellation will take effect upon our receipt of your request. If cancelled, the Enhanced GWB rider will terminate and we will no longer deduct the Enhanced GWB rider charge. The Contract, however, will continue. If you cancel the Enhanced GWB rider, you may not re-elect it. TERMINATION OF THE ENHANCED GWB RIDER. The Enhanced GWB rider will terminate upon the earliest of: (1) the date you make a full withdrawal of your Contract Value; (2) the date you apply all of your Contract Value to an annuity option; (3) the date there are insufficient funds to deduct the Enhanced GWB rider charge from your Contract Value (whatever Contract Value is available will be applied to pay the annual Enhanced GWB rider charge); (4) the date we receive due proof of the Owner's death and a beneficiary claim form, except where the beneficiary or Joint Owner is the spouse of the Owner and the spouse elects to continue the Contract and the spouse is less than 85 years old, or the Annuitant dies if the Owner is a non-natural person; note: (a) if the spouse elects to continue the Contract (so long as the spouse is less than 85 years old and the Enhanced GWB rider is in effect at the time of continuation), all terms and conditions of the Enhanced GWB rider will apply to the surviving spouse; and (b) we will not terminate the rider until we receive both due proof of the Owner's death and a beneficiary claim form (from certain beneficiaries, such as a trust, we may require additional information, such as the trust document), which means we will continue to deduct the Enhanced GWB rider charge until we receive this information; (5) a change of the Owner or Joint Owner (or the Annuitant if the Owner is a non-natural person) for any reason; (6) The effective date of cancellation of the rider; or (7) the termination of your Contract. ADDITIONAL INFORMATION. If you take a full withdrawal of your Contract Value and the withdrawal does not exceed the Annual Benefit Payment, or your Contract Value is reduced to zero because you do not have a sufficient Contract Value to pay the Enhanced GWB rider charge and your Benefit Base after the withdrawal is greater than zero, we will commence making payments to the Owner or Joint Owner (or to the Annuitant if the Owner is a non-natural person) on a monthly basis (or any mutually agreed upon frequency, but not less frequently than annually) until the Benefit Base is exhausted. Your withdrawal rights then come to an end. Currently, there is no minimum dollar amount for the payments; however, we reserve the right to accelerate any payment, in a lump sum, that is less than $500 (see below). The total annual payments cannot exceed the Annual Benefit Payment, except to the extent required under the Internal Revenue Code. If you or the Joint Owner (or the Annuitant if the Owner is a non-natural person) should die while these payments are being made, your beneficiary will receive these payments. No other death benefit will be paid. If the Owner or Joint Owner (or the Annuitant if the Owner is a non-natural person) should die while the Enhanced GWB rider is in effect, your beneficiary may elect to receive the Benefit Base as a death benefit in lieu of any other Contractual death benefits. Otherwise, the provisions of those death benefits will determine the amount of the death benefit and no benefit will be payable under the Enhanced GWB rider. If the beneficiary elects the Benefit Base as a death benefit, we will pay the remaining Benefit Base on a monthly basis (or any mutually agreed upon frequency, but no less frequently than annually) until the Benefit Base is exhausted. Except as may be required by the Internal Revenue Code, an annual payment will not exceed the Annual Benefit Payment. If your beneficiary dies while such payments are made, we will continue making the payments to the beneficiary's estate unless we have agreed to another payee in writing. If the Contract is a Non-Qualified Contract, any death benefit must be paid out over a time period and in a manner that satisfies Section 72(s) of the Internal Revenue Code. If the Owner (or the Annuitant , if the Owner is not a natural person) dies prior to the "annuity starting date" (as defined under the Internal Revenue Code and regulations thereunder), the period over which the Benefit Base is paid as a death benefit cannot exceed the remaining life expectancy of the payee under the appropriate IRS tables. For A-83 purposes of the preceding sentence, if the payee is a non-natural person, the Benefit Base must be paid out within 5 years from the date of death. Payments under this death benefit must begin within 12 months following the date of death. We reserve the right to accelerate any payment, in a lump sum, that is less than $500 or to comply with requirements under the Internal Revenue Code (including minimum distribution requirements for IRAs and other Contracts subject to Section 401(a)(9) of the Internal Revenue Code and Non-Qualified Contracts subject to Section 72(s)). If you terminate the Enhanced GWB rider because (1) you make a total withdrawal of your Contract Value; (2) your Contract Value is insufficient to pay the Enhanced GWB rider charge; or (3) the Contract Owner or Joint Owner (or the Annuitant , if the Owner is a non-natural person) dies, except where the beneficiary or Joint Owner is the spouse of the Owner and the spouse elects to continue the Contract and the spouse is less than 85 years old, you may not make additional purchase payments under the Contract. DESCRIPTION OF THE GUARANTEED WITHDRAWAL BENEFIT I The GWB I rider is no longer available for sale. The GWB I rider is the same as the Enhanced GWB rider described above, with the following differences: (1) there is no favorable treatment of required minimum distributions; (2) the GWB I rider charge continues even if your Benefit Base equals zero; (3) you may only elect the Optional Reset once every five Contract Years instead of every Contract Year; (4) the GWB I rider charge is 0.50% and the maximum GWB I rider charge upon an Optional Reset is 0.95%; and (5) you do not have the ability to cancel the rider following your fifth Contract Anniversary. By endorsement, the GWB I rider has been enhanced so that items (1) and (2) above no longer apply and the interval between Optional Resets in item (3) has been decreased to every three Contract Years. You may now elect an Optional Reset under the GWB I starting with the third Contract Anniversary (as long as it is prior to the Owner's 86th birthday), and you may elect an Optional Reset at any subsequent Contract Anniversary prior to the Owner's 86th birthday, as long as it has been at least three years since the last Optional Reset. GUARANTEED MINIMUM ACCUMULATION BENEFIT The Guaranteed Minimum Accumulation Benefit (GMAB) rider is no longer available for sale, effective for applications and necessary paperwork received on and after May 4, 2009. The GMAB guarantees that your Contract Value will not be less than a minimum amount at the end of a specified number of years (the "Rider Maturity Date"). If your Contract Value is less than the minimum guaranteed amount at the Rider Maturity Date, we will apply an additional amount to increase your Contract Value so that it is equal to the guaranteed amount. This benefit is intended to protect you against poor investment performance during the accumulation phase of your Contract. If you elected the GMAB rider, we require you to allocate your purchase payments and all of your Contract Value to one of the Asset Allocation subaccounts available in your Contract (the MetLife Moderate to Aggressive Allocation Subaccount and the MetLife Aggressive Allocation Subaccount are not available for this purpose). You may also allocate purchase payments to the Enhanced Dollar Cost Averaging program, provided that your destination subaccount is the available Asset Allocation subaccount you have chosen. No transfers are permitted while this rider is in effect. The Asset Allocation subaccount you choose will determine the percentage of purchase payments that equal the guaranteed amount. The Asset Allocation subaccounts available if you chose the GMAB rider, the percentage of purchase payments that determines the guaranteed amount, and the number of years to the Rider Maturity Date for each, are:
GUARANTEED AMOUNT ASSET ALLOCATION (% OF PURCHASE YEARS TO RIDER SUBACCOUNT PAYMENTS) MATURITY DATE ---------------- ----------------- -------------- MetLife Conservative Allocation Subaccount....... 130% 10 years MetLife Conservative to Moderate Allocation Subaccount..................................... 120% 10 years MetLife Moderate Allocation Subaccount........... 110% 10 years
For more information on the Asset Allocation subaccounts, please see "Investment Advice" in your contract prospectus as well as the prospectus for the Asset Allocation portfolios the subaccounts invest in. A-84 You may elect the GMAB rider when you purchase the Contract, up through age 80. However, you may not elect the GMAB rider if you have also elected the Enhanced Death Benefit rider, a GWB rider or a GMIB rider. BENEFIT DESCRIPTION. The GMAB rider guarantees that at the Rider Maturity Date, your Contract Value will at least be equal to a percentage of the purchase payments you made during the first 120 days that you held the Contract (the "GMAB Eligibility Period"), less reductions for any withdrawals (and related Withdrawal Charges) that you made at any time before the Rider Maturity Date. The percentage of purchase payments made that determines the guaranteed amount range from 110% to 130%, depending on the Asset Allocation subaccount you selected. This guaranteed amount is the "Guaranteed Accumulation Amount." The Guaranteed Accumulation Amount is used only to determine the amount of any benefit payable under the GMAB feature and the amount of the annual charge for the GMAB. There is a maximum Guaranteed Accumulation Amount for your Contract that is shown on your contract schedule page (currently $5,000,000). Purchase payments made after this maximum Guaranteed Accumulation Amount is reached will not increase the Guaranteed Accumulation Amount above the maximum. However, if you make a withdrawal of Contract Value during the GMAB Eligibility Period that reduces the Guaranteed Accumulation Amount below the maximum, then purchase payments you make after the withdrawal, and during the GMAB Eligibility Period, will increase the Guaranteed Accumulation Amount until it reaches the maximum. Only purchase payments made during the first 120 days that you hold the Contract are taken into consideration in determining the Guaranteed Accumulation Amount. If you anticipate making purchase payments after 120 days, you should understand that such payments will not increase the Guaranteed Accumulation Amount. Purchase payments made after 120 days are added to your Contract Value and impact whether or not a benefit is due under the GMAB feature at the Rider Maturity Date. On your Contract's issue date, the Guaranteed Accumulation Amount is equal to a percentage of your initial purchase payment. Subsequent purchase payments made during the GMAB Eligibility Period increase the Guaranteed Accumulation Amount by the percentage amount of the purchase payment (subject to the limit described above) depending on which Asset Allocation subaccount you have selected. When you make a withdrawal from the Contract, the Guaranteed Accumulation Amount is reduced in the same proportion that the amount of the withdrawal (including any related Withdrawal Charge) bears to the total Contract Value. EXAMPLE: Assume your Contract Value is $100,000 and your Guaranteed Accumulation Amount is $120,000, prior to making a $10,000 withdrawal from the Contract. The withdrawal amount is 10% of the Contract Value. Therefore, after the withdrawal, your Contract Value would be $90,000 and your Guaranteed Accumulation Amount would be $108,000 (90% of $120,000). The Guaranteed Accumulation Amount does not represent an amount of money available for withdrawal and is not used to calculate any benefits under the Contract prior to the Rider Maturity Date. Purchase payment bonus amounts under the B Plus Class are not considered to be purchase payments under the GMAB rider and are not part of the Guaranteed Accumulation Amount. At the Rider Maturity Date, after deduction of the annual charge for the GMAB rider, we will compare your Contract's Contract Value to its Guaranteed Accumulation Amount. If the Contract Value is less than the Guaranteed Accumulation Amount, we will contribute to your Contract Value the amount needed to make it equal the Guaranteed Accumulation Amount. (This added amount is the "Guaranteed Accumulation Payment.") The Guaranteed Accumulation Payment is allocated entirely to the Asset Allocation subaccount you have selected (no portion of the Guaranteed Accumulation Payment is allocated to the EDCA Guaranteed Account). If your Contract Value is greater than or equal to the Guaranteed Accumulation Amount at the Rider Maturity Date, then no Guaranteed Accumulation Payment will be paid into your Contract Value. The GMAB rider terminates at the Rider Maturity Date. We will not assess the GMAB Rider Charge after that date, and the related investment requirements and restrictions will no longer apply. If your Contract Value is reduced to zero for any reason other than a full withdrawal of the Contract Value or application of the entire Contract Value to an annuity option, but your Contract has a positive Guaranteed Accumulation Amount remaining, the Contract and the GMAB rider will remain in force. No charge for the GMAB rider will be deducted or accrue while there is insufficient Contract Value to cover the deductions for the charge. At the Rider Maturity Date, the Guaranteed Accumulation Payment will be paid into the Contract. Purchase payments made after the 120 day GMAB Eligibility Period may have a significant impact on whether or not a Guaranteed Accumulation Payment is due at the Rider Maturity Date. Even if purchase payments made during the 120 day GMAB Eligibility Period lose significant value, if the Contract Value, which includes all purchase A-85 payments, is equal to or greater than the Guaranteed Accumulation Amount, which is a percentage of your purchase payments made during the 120 day period, then no Guaranteed Accumulation Payment is made. Therefore, the GMAB rider may not be appropriate for you, if you intend to make additional purchase payments after the GMAB Eligibility Period. EXAMPLE: Assume that you make one $10,000 purchase payment during the 120 day GMAB Eligibility Period and you select the MetLife Moderate Allocation Subaccount. Therefore, the Guaranteed Accumulation Amount is $11,000 (110% of your $10,000 purchase payment). Assume that at the Rider Maturity Date, your Contract Value is $0. The Guaranteed Accumulation Payment is $11,000 ($11,000 - $0 = $11,000). In contrast, assume that you make one $10,000 purchase payment during the 120 day GMAB Eligibility Period and you select the MetLife Moderate Allocation Subaccount. Therefore, the Guaranteed Accumulation Amount is $11,000. Also assume that on the day before the Rider Maturity Date your Contract Value is $0. Assume that you decide to make one purchase payment on the day before the Rider Maturity Date of $11,000. At the Rider Maturity Date, assume there has not been any positive or negative investment experience for the one day between your purchase payment and the Rider Maturity Date. Consequently, your Contract Value is $11,000. We would not pay a Guaranteed Accumulation Payment because the Contract Value of $11,000 is equal to the Guaranteed Accumulation Amount of $11,000 ($11,000 - $11,000 = $0). RIDER TERMINATION. The GMAB rider will terminate at the earliest of: (1) the Rider Maturity Date; (2) the date you surrender the Contract; (3) the date you cancel the GMAB rider, as described below; (4) the date you apply all of your Contract Value to an annuity option; and (5) the date of death of the Owner or Joint Owner (or Annuitant if the Owner is a non-natural person) unless the Beneficiary is the spouse of the Owner and elects to continue the Contract under the spousal continuation provisions of the Contract. Once the rider is terminated, the GMAB Rider Charge will no longer be deducted and the related investment requirements and limitations will no longer apply. If the rider is terminated before the Rider Maturity Date, the Guaranteed Accumulation Payment will not be paid. CANCELLATION. You have a one-time right to cancel this optional benefit, to take effect on your fifth Contract Anniversary. We must receive your request in writing at our Annuity Administrative Office within the 90-day period after your fifth Contract Anniversary. Such cancellation will take effect upon our receipt of your request. Once you have cancelled the GMAB rider, you will no longer be eligible to receive the Guaranteed Accumulation Payment or be bound by the investment requirements and restrictions, and we will no longer deduct the charge for this rider. GMAB RIDER CHARGE The GMAB Rider charge is equal to 0.75% of the GMAB Guaranteed Accumulation Amount at the end of the prior Contract Year. The GMAB Rider Charge is deducted on each Contract Anniversary from your Contract Value pro rata from your Contract's Asset Allocation subaccount and the EDCA Guaranteed Account in the ratio each account bears to your total Contract Value. We take amounts from the Subaccount that is part of the Separate Account by cancelling accumulation units from the Separate Account. If you make a full withdrawal (surrender) of your Contract Value or you apply your Contract Value to an annuity option, we will assess a pro rata portion of the GMAB Rider Charge based on the number of whole months since the last Contract Anniversary. GMAB AND DECEDENT CONTRACTS. Note that the GMAB is not available for purchase by a Beneficiary under a decedent's Non-Qualified Contract (see "FEDERAL INCOME TAX CONSIDERATIONS") or IRA Contract (or where otherwise offered, under any other Contract which is being "stretched" by a Beneficiary after the death of the Contract Owner or after the death of the Annuitant in certain cases) because, under tax rules, such Contracts generally require distributions to commence by the end of the calendar year following the year of the Contract Owner's death and such distributions will have the effect of reducing the usefulness of the GMAB. A-86 SUMMARY OF LIVING BENEFIT RIDERS The chart below highlights certain differences among the living benefit riders. Please refer to the detailed descriptions above for specific information about the features, costs and restrictions associated with the riders.*
---------------------------------------------------------------------------------------------------------- WITHDRAWAL GUARANTEES INCOME GUARANTEES LIFETIME WITHDRAWAL GMIB PLUS GUARANTEE ENHANCED I & II I & II GWB ---------------------------------------------------------------------------------------------------------- LIFETIME INCOME Yes (after waiting Yes (if first No period) withdrawal on or after age 59 1/2) ---------------------------------------------------------------------------------------------------------- BENEFIT RIDER INVOLVES Yes No No ANNUITIZATION ---------------------------------------------------------------------------------------------------------- WITHDRAWALS Prior to annuitization Yes Yes PERMITTED(1) ---------------------------------------------------------------------------------------------------------- WAITING PERIOD Must wait 10 years to None (age 59 1/2 for None annuitize under rider; lifetime withdrawals) Optional Step-Up(2) restarts waiting period; Withdrawals available immediately ---------------------------------------------------------------------------------------------------------- RESET/STEP-UP Yes Yes Yes ---------------------------------------------------------------------------------------------------------- MAY INVEST IN VARIABLE Prior to annuitization Yes Yes ACCOUNT ---------------------------------------------------------------------------------------------------------- INVESTMENT ALLOCATION Yes Yes No REQUIREMENTS ---------------------------------------------------------------------------------------------------------- ABILITY TO CANCEL RIDER Yes, after 10 years, can Yes, at 5th, 10th & 15th Yes, within 90 days after take lump-sum option Contract Anniversary, 5th Contract Anniversary under the GPO provisions annually thereafter; or, lump-sum option under the GPA provisions after 15 years ---------------------------------------------------------------------------------------------------------- DEATH BENEFIT Prior to annuitization, Contract death benefit or Ability to receive Contract death benefit alternate rider death Benefit Base in series of available(3) benefit; ability to payments instead of receive Remaining Contract death benefit Guaranteed Withdrawal Amount in series of payments instead of Contract death benefit ---------------------------------------------------------------------------------------------------------- CURRENT RIDER GMIB Plus II: 1.00%; GMIB LWG II: 1.25% (Single Enhanced GWB: 0.55% CHARGES(4) Plus I: 0.80% Life version) or 1.50% (Joint Life version); LWG I: 0.50% (Single Life version) or 0.70% (Joint Life version) ----------------------------------------------------------------------------------------------------------
------- * For a description of the GMAB, GMIB II and GWB I riders, which are no longer available as of May 4, 2009, see "Living Benefits" above. (1) Withdrawals will reduce the living and death benefits and Contract Value. (2) For GMIB Plus I, the Optional Step-Up is called the "Optional Reset." (3) If the Contract is annuitized, annuity payments may be guaranteed for a certain period of time (depending on the annuity option selected) and therefore payable upon death of the annuitant. See "ANNUITY PAYMENTS" and the rider descriptions for more information. (4) Certain rider charges may increase upon a Optional Reset or Optional Step- Up. Generally, rider charges are assessed as a percentage of the guaranteed benefit rather than account value. For example, the charge for GMIB Plus II is 1.00% of the Income Base. See "ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS" and the individual rider descriptions for more information. A-87 RETIREMENT PLANS OFFERING FEDERAL TAX BENEFITS The Federal tax laws provide for a variety of retirement plans offering tax benefits. These plans, which may be funded through the purchase of the individual variable annuity contracts offered in this prospectus, include: 1. Plans qualified under Section 401(a) of the Code ("Qualified Plans"); and 2. Individual retirement accounts adopted by or on behalf of individuals pursuant to Section 408(a) of the Code and individual retirement annuities purchased pursuant to Section 408(b) of the Code (both of which may be referred to as "IRAs"), including simplified employee pension plans and salary reduction simplified employee pension plans, which are specialized IRAs that meet the requirements of Section 408(k) of the Code ("SEPs" and "SARSEPs"), Simple Retirement Accounts under Section 408(p) of the Code ("SIMPLE IRAs") and Roth Individual Retirement Accounts under Section 408A of the Code ("Roth IRAs"). SARSEPs are only allowed if the Plan was established prior to January 1, 1997. An investor should consult a qualified tax or other advisor as to the suitability of a Contract as a funding vehicle for retirement plans qualifying for tax-favored treatment, as to the rules underlying such plans and as to the state and federal tax aspects of such plans. In particular, the Contract is not intended for use with annuity purchase plans adopted by public schools and certain tax-exempt organizations pursuant to Section 403(b) of the Code ("TSA Plans") that are subject to ERISA. The Company will not provide all the administrative support appropriate for such plans. Accordingly, the Contract should not be purchased for use with such plans. The Contract previously was available for use in TSA Plans funded solely by transfers from existing 403(b) plans (so-called "90-24 transfers") and which are not otherwise subject to ERISA. 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. Such additional payments may have significant adverse tax consequences. (See "FEDERAL INCOME TAX CONSIDERATIONS.") The Company may make the Contract available for use with Section 401(k) plans. A summary of the federal tax laws regarding contributions to, and distributions from, the above tax benefited retirement plans may be found below under "FEDERAL INCOME TAX CONSIDERATIONS--Taxation of Qualified Contracts." It should be understood that should a tax-favored retirement plan lose its qualification for tax-exempt status, employees will lose some of the tax benefits described herein. In the case of certain TSA Plans, IRAs and Roth IRAs, the individual variable annuity contracts offered in this prospectus comprise the retirement "plan" itself. These Contracts will be endorsed, if necessary, to comply with federal and state legislation governing such plans, and such endorsements may alter certain Contract provisions described in this prospectus. Refer to the Contracts and any endorsements for more complete information. Because the underlying tax-favored retirement plan itself provides tax deferral, whether or not a variable annuity is purchased, you should consider whether the features and benefits unique to variable annuities are appropriate for your needs when purchasing a Qualified Contract. FEDERAL INCOME TAX CONSIDERATIONS The following discussion is general in nature and is not intended as tax advice. Each person concerned should consult a competent tax advisor. No attempt is made to consider any applicable state tax or other tax laws, or to address any federal estate, or state and local estate, inheritance and other tax consequences of ownership or receipt of distributions under a Contract. When you invest in an annuity contract, you usually do not pay taxes on your investment gains until you withdraw the money--generally for retirement purposes. If you invest in a variable annuity as part of an individual retirement plan, pension plan or employer-sponsored retirement program, your contract is called a Qualified Contract. If your annuity is independent of any formal retirement or pension plan, it is termed a Non-Qualified Contract. The tax rules applicable to Qualified Contracts vary according to the type of retirement plan and the terms and conditions of the plan. Under current federal income tax law, the taxable portion of distributions under qualified plans (including IRAs) is not eligible for the reduced tax rate applicable to long-term capital gains and qualifying dividends. Owner Control. In some circumstances, owners of variable contracts who retain excessive control over the investment of the underlying separate account assets may be treated as the owners of those assets and may be subject to tax on income produced by those assets. Although published guidance in this area does not address certain aspects of the Contracts, we believe that the Owner of a Contract should not be treated as the owner of the separate A-88 account assets. We reserve the right to modify the Contracts to bring them into conformity with applicable standards should such modification be necessary to prevent Owners of the Contracts from being treated as the owners of the underlying separate account assets. TAXATION OF NON-QUALIFIED CONTRACTS Non-Natural Person. If a non-natural person (e.g., a trust) owns a Non- Qualified Contract, the taxpayer generally must include in income any increase in the excess of the account value over the investment in the Contract (generally, the premiums or other consideration paid for the Contract) during the taxable year. There are some exceptions to this rule and a prospective owner that is not a natural person should discuss these with a tax adviser. The following discussion generally applies to Contracts owned by natural persons. Withdrawals. When a withdrawal from a Non-Qualified Contract occurs, the amount received will be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of the account value immediately before the distribution over the Owner's investment in the Contract (generally, the premiums or other consideration paid for the Contract, reduced by any amount previously distributed from the Contract that was not subject to tax) at that time. In the case of a surrender under a Non-Qualified Contract, the amount received generally will be taxable only to the extent it exceeds the Owner's investment in the Contract. In the case of a withdrawal under a Qualified Contract, a ratable portion of the amount received is taxable, generally based on the ratio of the "investment in the contract" to the individual's total account balance or accrued benefit under the retirement plan. The "investment in the contract" generally equals the amount of any non-deductible Purchase Payments paid by or on behalf of any individual. In many cases, the "investment in the contract" under a Qualified Contract can be zero. It is conceivable that charges for certain optional benefits under a variable annuity contract, such as any enhanced death benefit in excess of the Standard Death Benefit, may be considered as deemed distributions subject to immediate taxation. The Issuer currently intends to treat these charges as an intrinsic part of the annuity contract and does not tax report these as taxable income. However, it is possible that this may change in the future if we determine that this is required by the IRS. If so, the charge could also be subject to a 10% penalty tax if the taxpayer is under age 59 1/2. The tax treatment of withdrawals under such a benefit is also uncertain. It is conceivable that the amount of potential gain could be determined based on the remaining guaranteed minimum withdrawal benefit base 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 Issuer intends to tax report such withdrawals using the gross Contract Value rather than the remaining Benefit Base to determine gain. However, in cases where the maximum permitted withdrawal in any year under the GMWB exceeds the gross 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 this benefit and the remaining after-tax basis immediately preceding the withdrawal. Consult your tax adviser prior to selecting any optional benefit under the Contract. Penalty Tax on Certain Withdrawals. In the case of a distribution (or a deemed distribution) from a Non-Qualified Contract, there may be imposed a federal tax penalty (in addition to ordinary income tax) equal to 10% of the amount treated as income. In general, however, there is no penalty on distributions: - made on or after the taxpayer reaches age 59 1/2; - made on or after the death of an Owner; - attributable to the taxpayer's becoming disabled; - made as part of a series of substantially equal periodic payment (at least annually) for the life (or life expectancy) of the taxpayer or the joint lives (or life expectancies) of the taxpayer and his or her designated beneficiary; or - under certain single premium immediate annuities providing for substantially equal payments made at least annually and where the annuity date is no later than one year from the date of purchase. Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above. Also, additional exceptions apply to distributions from a Qualified Contract. You should consult a tax adviser with regard to exceptions from the penalty tax. A-89 Annuity Payments. Although tax consequences may vary depending on the payout option elected under an annuity contract, a portion of each annuity payment is generally not taxed and the remainder is taxed as ordinary income. The non-taxable portion of any annuity payment is generally determined in a manner that is designed to allow you to recover your investment in the contract ratably on a tax-free basis over the expected stream of annuity payments, as determined when annuity payments start. Once your investment in the contract has been fully recovered, however, the full amount of each annuity payment is subject to tax as ordinary income. Once the investment in the Contract has been recovered through the use of the excludable amount, the entire amount of all future payments are includable in taxable income. In general, the amount of each payment under a variable annuity payment option that can be excluded from federal income tax is the remaining after-tax cost in the amount annuitized at the time such payments commence, divided by the number of expected payments, subject to certain adjustments. No deduction is permitted for any excess of such excludable amount for a year over the annuity payments actually received in that year. However, you may elect to increase the excludable amount attributable to future years by a ratable portion of such excess. Consult your tax advisor as to how to make such election and also as to how to treat the loss due to any unrecovered investment in the contract when the income stream is terminated. The federal income tax treatment of an annuity payment option that contains a commutation feature (i.e., an annuity payment option that permits the withdrawal of a commuted value) is uncertain. Specifically, it is possible that (a) all payments made under the annuity payment option will be taxed as withdrawals, on an income-first basis, rather than as annuity payments, a portion of which would be excludable from income as a return of investment in the contract, or (b) the ability to fully recover the investment in the contract over the annuity payment period may be limited due to the reduction or elimination of future annuity payments that would have each had an excludable amount. Additionally, it is uncertain whether the exercise of a commutation feature under a joint and survivor variable life annuity payment option constitutes an exchange into a deferred annuity, thus requiring payout of any remaining interest in the deferred annuity within five years of an owner's death (or the primary annuitant's death where the owner is not a natural person) or over the designated beneficiary's life (or over a period no longer than the beneficiary's remaining life expectancy) with such payments beginning within 12 months of the date of death if an owner dies during the certain period for such payout option. Accordingly, we reserve the right to restrict the availability of the commutation feature or to require the value of all remaining income payments be paid to the designated beneficiary or to the surviving joint annuitant, as the case may be, in a lump sum after proof of an owner's death (or of a primary annuitant's death, where the owner is not a natural person) during the certain period to comply with these tax law requirements. Caution: We will treat the application of less than your entire Contract Value under a Non-Qualified Contract to a pay-out option (receiving annuity income payments) as a taxable withdrawal for federal income tax purposes and also as subject to the 10% penalty tax (if you are under age 59 1/2) in addition to ordinary income tax. We will then treat the amount of the withdrawal as the purchase price of an income annuity and tax report the annuity income payments received under the rules for variable income annuities. Consult your tax advisor prior to partially annuitizing your contract. Annuity income payments and amount received on the exercise of a withdrawal or partial withdrawal from an annuity option under your non-qualified contract may not be transferred in a tax-free exchange into another annuity contract. In accordance with our procedures, such amounts will instead be taxable under the rules for annuity income payments or withdrawals, whichever is applicable. Additionally, if you are under age 59 1/2 at the time annuity income payments commence and intend the annuity income payments to constitute an exception to the 10% penalty tax, any attempt to make a tax-free transfer or rollover (whether for non-qualified or qualified annuities) prior to the later of (a) age 59 1/2, or (b) five years after annuity income payments commence, will generally invalidate the exception and subject you to additional penalties and interest. The IRS has not furnished explicit guidance as to how the excludable amount is to be determined each year under variable income annuities that permit transfers between investment subaccounts after the annuity starting date. Consult your own tax advisor. Taxation of Death Benefit Proceeds. Amounts may be distributed from a Contract because of your death or the death of the Annuitant. Generally, such amounts are includible in the income of the recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a surrender of the Contract, or (ii) if distributed under a payout option, they are taxed in the same way as annuity payments. See the Statement of Additional Information as well as page A- of this prospectus for a general discussion on the federal income tax rules applicable to how death benefits must be distributed. A-90 Transfers, Assignments or Exchanges of a Contract. Where otherwise permitted under the terms of the Contract, a transfer or assignment of ownership of a Contract, the designation or change of an annuitant, the selection of certain maturity dates, or the exchange of a Contract may result in certain adverse tax consequences to you that are not discussed herein. An owner contemplating any such transfer, assignment, exchange, or event should consult a tax advisor as to the tax consequences. Withholding. Annuity distributions are generally subject to withholding for the recipient's federal income tax liability. Recipients can generally elect, however, not to have tax withheld from distributions. Multiple Contracts. 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. Please consult your tax advisor. Further Information. We believe that the Contracts will qualify as annuity contracts for federal income tax purposes and the above discussion is based on that assumption. Further details may be found in the Statement of Additional Information under the heading "Tax Status of the Contracts." TAXATION OF QUALIFIED CONTRACTS The tax rules applicable to Qualified Contracts vary according to the type of retirement plan and the terms and conditions of the plan. Your rights under a Qualified Contract may be subject to the terms of the retirement plan itself, regardless of the terms of the Qualified Contract. Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions with respect to the Contract comply with the law. Individual Retirement Accounts (IRA's), as defined in Section 408 of the Internal Revenue Code (Code), permit individuals to make annual contributions of up to the lesser of the applicable dollar amount for the year (for 2009, $5,000 plus, for Owner's age 50 or older, $1,000) or the amount of compensation includible in the individual's gross income for the year. The contributions may be deductible in whole or in part, depending on the individual's income. If contributions are being made under a SEP or SARSEP plan of your employer, additional amounts may be contributed as permitted by the Code and the terms of the employer's plan. Distributions from certain retirement plans may be "rolled over" into an IRA on a tax-deferred basis without regard to these limits. Amounts in the IRA (other than non-deductible contributions) are taxed when distributed from the IRA. A 10% penalty tax generally applies to distributions made before age 59 1/2, unless an exception applies. The IRS could conceivably take the position that the offering of death benefits in excess of the greater of (a) Contract Value or (b) return of premium (adjusted for prior distributions) adversely affects the qualification of the Contract as an IRA. Disqualification of the Contract as an IRA could result in the immediate taxation of amounts held in the Contract and the imposition of penalty taxes. THE IRS HAS APPROVED THE FORM OF THE TRADITIONAL IRA ENDORSEMENT AND SIMPLE IRA ENDORSEMENT FOR USE WITH THE CONTRACT AND CERTAIN RIDERS, INCLUDING RIDERS PROVIDING FOR DEATH BENEFITS IN EXCESS OF PREMIUMS PAID. PLEASE BE AWARE THAT THE IRA OR SIMPLE IRA CONTRACT ISSUED TO YOU MAY DIFFER FROM THE FORM OF THE TRADITIONAL IRA OR SIMPLE IRA APPROVED BY THE IRS BECAUSE OF SEVERAL FACTORS SUCH AS DIFFERENT RIDERS AND STATE INSURANCE REQUIREMENTS. ADDITIONALLY, SUCH APPROVAL AS TO THE FORM OF THE CONTRACT BY THE IRS DOES NOT CONSTITUTE ANY APPROVAL OR ENDORSEMENT AS TO THE INVESTMENT PROGRAM THEREUNDER. SIMPLE IRA's permit certain small employers to establish SIMPLE plans as provided by Section 408(p) of the Code, under which employees may elect to defer to a SIMPLE IRA a percentage of compensation up to $11,500 for 2009. The sponsoring employer is generally required to make matching or non-elective contributions on behalf of employees. Distributions from SIMPLE IRA's are subject to the same restrictions that apply to IRA distributions and are taxed as ordinary income. Subject to certain exceptions, premature distributions prior to age 59 1/2 are subject to a 10% penalty tax, which is increased to 25% if the distribution occurs within the first two years after the commencement of the employee's participation in the plan. Roth IRAs, as described in Code section 408A, permit certain eligible individuals to make non-deductible contributions to a Roth IRA in cash or as a rollover or transfer from another Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA is generally subject to tax, and other special rules apply. The Owner may wish to consult a tax adviser before combining any converted amounts with any other Roth IRA contributions, including any other conversion amounts from other tax years. Distributions from a Roth IRA generally are not taxed, except that, once aggregate distributions exceed contributions to the Roth IRA, 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 the five taxable years starting with the year in which the first contribution is made to any Roth IRA. A 10% penalty tax may apply to amounts attributable A-91 to a conversion from an IRA if they are distributed during the five taxable years beginning with the year in which the conversion was made. Corporate pension and profit-sharing plans under Section 401(a) of the Code allow corporate employers to establish various types of retirement plans for employees, and self-employed individuals to establish qualified plans for themselves and their employees. Adverse tax consequences to the retirement plan, the participant or both may result if the Contract is transferred to any individual as a means to provide benefit payments, unless the plan complies with all the requirements applicable to such benefits prior to transferring the Contract. The Contract has an enhanced death benefit that in some cases may exceed the greater of the premium payments or the account value. Tax Sheltered Annuities under section 403(b) of the Code allow employees of certain Section 501(c)(3) organizations and public schools to exclude from their gross income the premium payments made, within certain limits, on a contract that will provide an annuity for the employee's retirement. These premium payments may be subject to FICA (social security) tax. Distributions of (1) salary reduction contributions made in years beginning after December 31, 1988; (2) earnings on those contributions; and (3) earnings on amounts held as of the close of the last year beginning before January 1, 1989, are not allowed prior to age 59 1/2, severance from employment, death or disability. Salary reduction contributions may also be distributed upon hardship, but would generally be subject to penalties under new IRS regulations affecting 403(b) plans and arrangements. As part of the new IRS 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 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 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. In consideration of these regulations, the Contract is no longer available for purchase as a transfer. 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. Hurricane Relief. Your plan may provide for "qualified hurricane distributions" pursuant to the Katrina Emergency Tax Relief Act of 2005 and the Gulf Opportunity Zone Act of 2005. Subject to an aggregate limit of $100,000 among all eligible retirement plans, a participant's qualified hurricane distributions are not subject to the 10% early withdrawal penalty that might otherwise apply to a qualified annuity under section 72(t). To the extent a participant "repays" a qualified hurricane distribution by contributing within three years of the distribution date to an eligible retirement plan that accepts rollover contributions, it will generally be treated as a timely direct trustee-to-trustee transfer and will not be subject to income tax. To the extent a participant does not repay a qualified hurricane distribution within three years, he or she will include the distribution in gross income ratably over the three-tax year period, beginning with the tax year in which the distribution is received, unless the participant elects to opt out of three-year averaging by including the qualified hurricane distribution in gross income for the year it is received. Consult your independent tax advisor to determine if hurricane relief is available to your particular situation. Death Benefits. FOR CONTRACTS PURCHASED IN CONNECTION WITH QUALIFIED PLANS UNDER SECTION 401(A) OR TSA PLANS UNDER SECTION 403(B), CERTAIN DEATH BENEFITS COULD CONCEIVABLY BE CHARACTERIZED AS AN INCIDENTAL BENEFIT, THE AMOUNT OF WHICH IS LIMITED IN CERTAIN PENSION OR PROFIT-SHARING PLANS. BECAUSE THE DEATH BENEFIT IN CERTAIN CASES MAY EXCEED THIS LIMITATION, EMPLOYERS USING THE CONTRACT IN CONNECTION WITH SUCH PLANS SHOULD CONSULT THEIR TAX ADVISER. Eligible Section 457(b) Plans, while not actually providing for a qualified plan as that term is normally used, provides for certain eligible deferred compensation plans with respect to service for state governments, local governments, political subdivisions, agencies, instrumentalities and certain affiliates of such entities, and tax exempt organizations. The Contract can be used with such plans. Under such plans a participant may specify the form of investment in which his or her participation will be made. Under a non- governmental plan, all such investments, however, are owned by and are subject to, the claims of the general creditors of the sponsoring employer (which must be a tax-exempt entity under Section 501(c) of the Code). In general, all amounts received under a non-governmental Section 457(b) plan are taxable and are subject to federal income tax withholding as wages. Required Minimum Distributions. Qualified Contracts (including contracts issued under Section 457(b) plans) have minimum distribution rules that govern the timing and amount of distributions. You should refer to your A-92 retirement plan, adoption agreement, or consult a tax adviser for more information about these distribution rules. Failure to meet such rules generally results in the imposition of a 50% excise tax on the amount which should have been, but was not, distributed. Under final income tax regulations regarding minimum distribution requirements, in general, the value of all benefits under a deferred annuity (including death benefits in excess of Contract Value, as well as all living benefits) must be added to the Contract Value in computing the amount required to be distributed over the applicable period. The final required minimum distribution regulations permit income payments to increase due to "actuarial gain" which includes the investment performance of the underlying assets, as well as changes in actuarial factors and assumptions under certain conditions. Additionally, withdrawals may also be permitted under certain conditions. The new rules are not entirely clear, and you should consult with your own tax advisor to determine whether your variable income annuity will satisfy these rules for your own situation. Under recently enacted legislation, you (and after your death, your designated Beneficiaries) generally do not have to take the required minimum distribution for 2009. The waiver does not apply to any 2008 payments even if received in 2009, so for those payments, you are still required to receive your first required minimum distribution payment by April 1, 2009. In contrast, if your first required minimum distribution would have been due by April 1, 2010, you are not required to take such distribution; however, your 2010 required minimum distribution is due by December 31, 2010. For after-death required minimum distributions, the five-year rule is applied without regard to calendar year 2009. For instance, if you died in 2007, the five-year period ends in 2013 instead of 2012. This required minimum distribution waiver does not apply if you are receiving annuity payments under your Contract. The required minimum distribution rules are complex, so consult with your tax advisor before waiving your 2009 required minimum distribution payment. Other Tax Issues. Distributions from Qualified Contracts generally are subject to withholding for the Owner's federal income tax liability. The withholding rate varies according to the type of distribution and the Owner's tax status. The Owner will be provided the opportunity to elect not to have tax withheld from distributions. "Taxable eligible rollover distributions" from section 401(a), 403(a), 403(b) and governmental Section 457(b) plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is any distribution to an employee (or employee's spouse or former spouse as beneficiary or alternate payee) from such a plan, except certain distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, if the employee chooses a "direct rollover" from the plan to a tax-qualified plan, IRA or tax sheltered annuity or to a governmental 457 plan that agrees to separately account for rollover contributions. Effective March 28th 2005, certain mandatory distributions made to participants in an amount in excess of $1,000 must be rolled over to an IRA designated by the Plan, unless the participant elects to receive it in cash or roll it over to a different IRA or eligible retirement plan of his or her own choosing. General transitional rules apply as to when plans have to be amended. Special effective date rules apply for governmental plans and church plans. Tax Credits and Deductions. We may be entitled to certain tax benefits related to the assets of the Variable Account. These tax benefits, which may include foreign tax credits and corporate dividend received deductions, are not passed back to the Variable Account or to Contract Owners since the Company is the owner of the assets from which the tax benefits are derived. Guaranteed Benefits. If you have purchased the Guaranteed Withdrawal Benefit or Enhanced Guaranteed Withdrawal Benefit, 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 Withdrawal Charges). This could result in a greater amount of taxable income in certain cases. In general, at the present time, we intend 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 Guaranteed Withdrawal Benefit 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. We reserve the right to change its tax reporting practices where we determine that it is not in accordance with IRS guidance (whether formal or informal). A-93 Commutation Features Under Annuity Payment Options. Please be advised that the tax consequences resulting from the election of an annuity payment option containing a commutation feature is uncertain and the IRS may determine that the taxable amount of the annuity payments and withdrawals received for any year COULD BE GREATER THAN OR LESS THAN THE TAXABLE AMOUNT REPORTED BY THE COMPANY. The exercise of the commutation feature also may result in adverse tax consequences including: - The imposition of a 10% penalty tax on the taxable amount of the commuted value, if the taxpayer has not attained age 59 1/2 at the time the withdrawal is made. This 10% penalty tax is in addition to the ordinary income tax on the taxable amount of the commuted value. - The retroactive imposition of the 10% penalty tax on annuity payments received prior to the taxpayer attaining age 59 1/2. - The possibility that the exercise of the commutation feature could adversely affect the amount excluded from federal income tax under any annuity payments made after such commutation. See also the discussion of commutation features under "Annuity Payments." A payee should consult with his or her own tax advisor prior to electing to annuitize the contract and prior to exercising any commutation feature under an annuity payment option. 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 advisor 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. Annuity purchases by nonresident aliens and foreign corporations. The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchaser's country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S. state, and foreign taxation with respect to an annuity contract purchase. 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 your tax advisor regarding the tax consequences of purchasing an annuity contract and/or any proposed distribution, particularly a partial distribution or election to annuitize. POSSIBLE TAX LAW CHANGES Although the likelihood of legislative changes is uncertain, there is always the possibility that the tax treatment of the Contract could change by legislation or otherwise. Consult a tax adviser with respect to legislative developments and their effect on the Contract. A-94 We have the right to modify the Contract in response to legislative changes that could otherwise diminish the favorable tax treatment that annuity contract owners currently receive. We make no guarantee regarding the tax status of any Contract and do not intend the above discussion as tax advice. VOTING RIGHTS We are the legal owner of the Eligible Fund shares held in the Variable Account and have the right to vote those shares at meetings of the Eligible Fund shareholders. However, to the extent required by Federal securities law, we will give you, as Contract Owner, the right to instruct us how to vote the shares that are attributable to your Contract. Prior to annuitization, we determine the number of votes on which you have a right to instruct us, on the basis of your percentage interest in a subaccount and the total number of votes attributable to the subaccount. After annuitization, the number of votes attributable to your Contract is determined on the basis of the reserve for your future annuity payments and the total number of votes attributable to the subaccount. After annuitization the votes attributable to your Contract decrease as reserves underlying your Contract decrease. We will determine, as of the record date, if you are entitled to give voting instructions and the number of shares as to which you have a right of instruction. If we do not receive timely instructions from you, we will vote your shares for, against, or withheld from voting on any proposition in the same proportion as the shares held in that subaccount for all policies or contracts for which we have received voting instructions. We will vote for Eligible Fund shares held in our general investment account (or any unregistered separate account for which voting privileges are not given) in the same proportion as the aggregate of (i) the shares for which we received voting instructions and (ii) the shares that we vote in proportion to such voting instructions. The effect of this proportional voting is that a small number of Contract Owners may control the outcome of a vote. DISTRIBUTION OF THE CONTRACTS We have entered into a distribution agreement with our affiliate, New England Securities Corporation ("Distributor"), for the distribution and sale of the Contracts. Distributor offers the Contracts through its sales representatives. Distributor may also enter into selling agreements with other affiliated broker-dealers ("selling firms") for the sale of the Contracts. Distributor 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. We pay commissions to Distributor for sales of the Contracts by its sales representatives, as well as selling firms. Each of the Eligible Funds make payments to Distributor under their distribution plans in consideration of services provided and expenses incurred by Distributor in distributing Fund shares (see "Fee Table--Annual Eligible Fund Operating Expenses" and the Eligible Fund prospectuses). These payments range from 0.15% to 0.25% of Variable Account assets invested in a particular Eligible Fund. Distributor may also receive brokerage commissions on securities transactions initiated by an investment adviser of an Eligible Fund. Additionally, we pay American Funds Distributors, Inc., principal underwriter for the American Funds Insurance Series, a percentage of all amounts allocated to the American Funds Bond Fund, American Funds Growth Fund, the American Funds Growth-Income Fund, and the American Funds Global Small Capitalization Fund for the services it provides in marketing the Funds' shares in connection with the Contract. Distributor's sales representatives receive cash payments for the products they sell and service based upon a "gross dealer concession" model. The cash payments received are equal to part or all of the gross dealer concession amounts described below. The percentage the sales representative receives is determined by a formula that takes into consideration the amount of proprietary products the sales representative sells and services. Proprietary products are products issued by us or an affiliate. Because sales of proprietary products are a factor in determining the percentage of the gross dealer concession amount to which Distributor's sales representatives are entitled, these sales representatives have an incentive to favor sale of the Contract over similar products issued by non-affiliates. With respect to the Contract, the gross dealer concession is up to 7.50% of each purchase payment, and, starting as early as the second Contract Year, is up to 1.14% of the Contract Value each year the Contract is in force. We do not currently but reserve the right to pay lower gross dealer concession on purchase payments allocated to the Fixed Account and/or Guaranteed Account than we do for purchase payments allocated to the Variable Account. All or a portion of gross dealer concession may be returned if the Contract is not continued through the first Contract Year. Gross dealer concession may also be paid if the Contract is annuitized. The amount of this gross dealer concession payable upon annuitization depends on several factors, including the number of years the Contract has been in force. A-95 Distributor also makes payments for the sale of the Contracts to the Managing Partner who supervises the sales representative. Payments to the Managing Partners vary and depend on a number of factors, including sales of proprietary products, the sales representative's level of sales, as well as the level of sales by all sales representatives in the Managing Partner's agency. Because the sales made by the representatives they supervise are a factor in determining Managing Partners' compensation, they also have an incentive to favor the sales of proprietary products. Managing Partners may pay a portion of their cash compensation to their sales representatives. Distributor's sales representatives and their Managing Partners (and the sales representatives and managers of our affiliates) may also be eligible for additional cash compensation such as bonuses, equity awards (for example, stock options), training allowances, supplemental salary, financing arrangements, marketing support, medical and retirement benefits and other insurance and non- insurance benefits. The amount of this additional compensation is based on the amount of proprietary products sold. Sales representatives must meet a minimum level of sales of proprietary products in order to maintain agent status with us and in order to be eligible for most of the cash compensation described above. Sales representatives and their managers are also eligible for various non- cash compensation programs that the Company offers, such as conferences, trips, prizes, and awards. In addition, Distributor's sales representatives who meet certain productivity, persistency, and length of service standards and/or their managers may be eligible for additional compensation. Other payments may be made for other services that do not directly involve the sale of the Contracts. These services may include the recruitment and training of personnel, production of promotional literature, and similar services. In addition to the payments listed above, NELICO makes certain payments to its business unit or to the business unit of its affiliate that is responsible for the operation of the distribution systems through which the Contract is sold. This amount is part of the total compensation paid for the sale of the Contract. Receipt of the cash compensation described above may provide sales representatives and their Managing Partners with an incentive to favor the sale of proprietary products over similar products issued by non-affiliates. The commissions payable for Contract sales by selling firms (affiliated and non affiliated)will not exceed that described above. Selling firms pay their sales representatives all or a portion of the commissions received for their sales of Contracts; some firms may retain a portion of commissions. Sales representatives and their managers are also eligible for various cash benefits and non-cash compensation items (as described above) that we may provide jointly with affiliated selling firms. A portion of the payments made to selling firms may be passed on to their sales representatives in accordance with their internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your sales representative for further information about what your sales representative and the selling firm for which he or she works may receive in connection with your purchase of a Contract. Commissions and other incentives or payments described above are not charged directly to Contract Owners or the Variable Account. We intend to recoup commissions and other sales expenses through fees and charges deducted under the Contract. We and Distributor may also enter into preferred distribution arrangements with certain affiliated selling firms such as MetLife Securities, Inc., MetLife Investors Distribution Company, Walnut Street Securities, Inc. and Tower Square Securities, Inc.. These arrangements are sometimes called "shelf space" arrangements. Under these arrangements, we and Distributor may pay separate, additional compensation to the selling firm for services the selling firm provides in connection with the distribution of the Contracts. These services may include providing us with access to the distribution network of the selling firm, the hiring and training of the selling firm's sales personnel, the sponsoring of conferences and seminars by the selling firm, or general marketing services performed by the selling firm. The selling firm may also provide other services or incur other costs in connection with distributing the Contracts. THE OPERATION OF THE FIXED ACCOUNT The Contract has a Fixed Account option in states that have approved this option. You may allocate net purchase payments and may transfer Contract Value in the Variable Account to the Fixed Account, which is part of our general account. The Fixed Account offers diversification to a variable annuity contract, allowing you to protect principal and A-96 earn a guaranteed rate of interest. The Fixed Account is not available to Contracts purchased after May 1, 2003 for which the C Class has been selected or for any Contracts which are purchased on or after that date in the state of New York if the GMIB I or GMIB II has been selected. The Fixed Account is also not available for Contracts purchased in the state of New York if the optional Guaranteed Withdrawal Benefit is selected. The Fixed Account is not available if the GMIB Plus I or GMAB is selected. Because of exemptive and exclusionary provisions, interests in the Fixed Account have not been registered under the Securities Act of 1933, and neither the Fixed Account nor the general account has been registered as an investment company under the Investment Company Act of 1940. Therefore, neither the general account, the Fixed Account nor any interests therein are generally subject to the provisions of these Acts, and we have been advised that the staff of the Securities and Exchange Commission does not review disclosures relating to the general account. Disclosures regarding the Fixed Account may, however, be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. Our general account consists of all assets owned by us other than those in the Variable Account and the Company's other separate accounts. We have sole discretion over the investment of assets in the general account, including those in the Fixed Account. You do not share in the actual investment experience of the assets in the Fixed Account. Instead, we guarantee that we will credit Contract Values in the Fixed Account with interest at an annual rate that will not be less than the greater of 1.0% or the minimum rate required by your state. We are not obligated to credit interest at a higher rate, although we have sole discretion to do so. We will credit Contract Values in the Fixed Account with interest daily. We also reserve the right to restrict transfers or purchase payments into the Fixed Account if we are paying an interest rate on the Fixed Account equivalent to our guaranteed minimum interest rate or if the total Contract Value in the Fixed Account exceeds such maximum amount(s) that we establish from time to time. You can contact us or consult your registered representative for our current limits. Currently, any purchase payment or portion of Contract Value you allocate to the Fixed Account will earn interest at an annual rate we determine for that deposit for a 12-month period. At the end of each succeeding 12-month period, we will determine the interest rate that will apply to that deposit plus the accrued interest for the next 12 months. This renewal rate may differ from the interest rate that is applied to new deposits on that same day. CONTRACT VALUE AND FIXED ACCOUNT TRANSACTIONS A Contract's total Contract Value will include its Contract Value in the Variable Account, in the Fixed Account, or in the Company's general account (but outside the Fixed Account). Amounts you surrender from the Fixed Account will be on a "first-in, first- out" basis. The amounts you allocate to the Fixed Account are subject to the same rights and limitations as in the Variable Account regarding withdrawals and partial withdrawals. Special limits, however, apply to transfers involving the Fixed Account (see below). Unless you request otherwise, any partial withdrawal you make will reduce the Contract Value in the subaccounts of the Variable Account and the Fixed Account, proportionately. We limit the amount of Contract Value which you may transfer from the Fixed Account, except with our consent to the greater of (i) 25% of Contract Value in the Fixed Account at the end of the first day of the Contract Year, or (ii) the amount of Contract Value that you transferred from the Fixed Account in the prior Contract Year. However, these limits do not apply to new deposits to the Fixed Account for which the dollar cost averaging program has been elected within 30 days from the date of deposit. Amounts you transfer to the subaccounts from the Fixed Account will be on a "last-in, first-out" basis. No transfers to the Fixed Account are allowed for 180 days after the date of a transfer out of the Fixed Account and we reserve the right to restrict purchase payments to the Fixed Account during this period. Currently we are not imposing the restrictions on transfers out of the Fixed Account but we have the right to reimpose them at any time. See the Statement of Additional Information. We will deduct the annual Contract Administrative Fee entirely from the Contract Value in the Variable Account, and not from the Contract Value in the Fixed Account. For more information on the Fixed Account please refer to the Statement of Additional Information. INVESTMENT PERFORMANCE INFORMATION We may advertise or include in sales literature (i) current and effective yields for the subaccounts for a Class; (ii) total returns for the subaccounts for a Class, (iii) non-standard returns for the subaccounts for a Class and (iv) historical and hypothetical illustrations of the growth and value of a purchase payment or payments invested in the subaccounts for a specified period for a Class. Total returns for the subaccounts are based on the investment A-97 performance of the corresponding Eligible Funds. THESE FIGURES ARE BASED ON HISTORICAL EARNINGS AND DO NOT INDICATE OR PROJECT FUTURE PERFORMANCE. We may also advertise or include in sales literature a subaccount's performance for a Class compared to certain performance rankings and indexes compiled by independent organizations, and we may present performance rankings and indexes without such a comparison. We may reflect bonus amounts in performance relating to the B Plus Class. YIELDS The current yield of the BlackRock Money Market Subaccount refers to the annualized income generated by an investment in the subaccount over a specified 7-day period on a Class-specific basis. The current yield is calculated by assuming that the income generated for that 7-day period is generated each 7-day period over a 52-week period and is shown as a percentage of the investment. The effective yield is calculated similarly but, when annualized, the income earned by an investment is assumed to be reinvested. The effective yield will be slightly higher than the current yield because of the compounding effect of this assumed reinvestment. The yield of a subaccount (beside the BlackRock Money Market Subaccount) refers to the annualized income generated by an investment in the subaccount over a specified 30-day or one-month period on a Class-specific basis. The yield is calculated by assuming the income generated by the investment during that 30- day or one-month period is generated each period over 12 months and is shown as a percentage of the investment. STANDARD RETURN The total return of a subaccount refers to return quotations assuming an investment under a Contract has been held in the subaccount for the stated times. Average annual total return of a subaccount tells you the return you would have experienced if you allocated a $1,000 purchase payment to a subaccount for the specified period. We provide average annual total returns for the subaccounts on a Class-specific basis. Standardized average annual total return reflects all historical investment results, less all charges and deductions applied against the subaccount for that Class (assuming selection of the Standard Death Benefit), including any Withdrawal Charge that would apply if you terminated a Contract at the end of each period indicated, but excluding any deductions for premium taxes. Standard total return for a Class will reflect the charge for GMIB I or GMIB II but will not reflect charges for any other optional additional benefits, including the Earnings Preservation Benefit Rider. From time to time in response to changes in the marketplace, promotional emphasis, and actual sales experience, we may modify our determination of which charges and deductions for optional features to factor into each Class's standardized average annual total returns. Narrative disclosure accompanying performance information in marketing materials always will indicate clearly which charges and deductions are reflected in performance for each Class. Standardized total return may be quoted for various periods including 1 year, 5 years, and 10 years, or from inception of the subaccount if any of those periods are not available. NON-STANDARD RETURN "Non-Standard" average annual total return information for a Class may be presented, computed on the same basis as described above, except that deductions may not include the Withdrawal Charge or the charge for the GMIB. We may from time to time disclose average annual total return for non-standard periods and cumulative total return for a subaccount. We may also provide non-standard performance that reflects the inclusion or exclusion of various optional riders on a Class-specific basis. Narrative disclosure in marketing material containing non-standard returns will indicate which charges and deductions are reflected. Non-standard performance for a Class will be accompanied by standard performance for that Class. We may also illustrate on a Class-specific basis what would have been the growth and value of a specified purchase payment or payments if it or they had been invested in each of the Eligible Funds on the first day of the first month after those Eligible Funds had commenced operations. This illustration will show Contract Value and Withdrawal Value, calculated in the same manner as average annual total return, as of the end of each year, ending with the date of the illustration. Withdrawal Value reflects the deduction of any Withdrawal Charge that may apply, but does not reflect the deduction of any premium tax charge. We may also show annual percentage changes in Contract Value and Withdrawal Value, cumulative returns, and annual effective rates of return. We determine the annual percentage change in Contract Value by taking the difference between the Contract Value or Withdrawal Value at the beginning and at the end of each year and dividing it by the beginning Contract Value or Withdrawal Value. We determine cumulative return by taking the difference between the investment at the beginning of the period and the ending Contract Value or Withdrawal Value and dividing it by the investment at the beginning of the period. We calculate the annual effective rate of return in the same manner as average annual total return. A-98 We may show the percent change in accumulation unit value and annual effective rate of return of a subaccount. Accumulation unit values do not reflect the impact of any Withdrawal Charge, premium tax charge, or the annual Contract Administrative Fee. The percent change in accumulation unit value is calculated by dividing the difference in accumulation unit values at the beginning and end of the period by the beginning accumulation unit value. See the Statement of Additional Information for a description of the method for calculating the annual effective rate of return. We may present illustrations for a hypothetical Contract assuming monthly transfers from one subaccount to designated other subaccounts under a Dollar Cost Averaging Program. We may also present illustrations designed to show required minimum distributions and other values for hypothetical Contracts under certain qualified plans. We may also illustrate growth and value of a specified purchase payment or payments on a Class-specific basis in the same manner as described above based on hypothetical returns. To see an example of one such hypothetical illustration, refer to Appendix G. OTHER PERFORMANCE In advertising and sales literature, we may compare the performance of each subaccount on a Class-specific basis to the performance of other variable annuity issuers in general or to the performance of particular types of variable annuities investing in mutual funds, or investment series of mutual funds with investment objectives similar to each of the subaccounts. Advertising and sales literature may also show the performance rankings of the subaccounts assigned by independent services, such as Variable Annuity Research Data Services ("VARDS"), or may compare to the performance of a subaccount on a Class-specific basis to that of a widely used index, such as Standard & Poor's Index of 500 Common Stocks. We may also use other independent ranking services and indexes as a source of performance comparison. LEGAL PROCEEDINGS In the ordinary course of business, NELICO, 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, NELICO does not believe any such action or proceeding will have a material adverse effect upon the Separate Account or upon the ability of New England Securities Corporation to perform its contract with the Separate Account or of NELICO to meet its obligations under the Contracts. FINANCIAL STATEMENTS Financial statements for the New England Variable Annuity Separate Account, New England Life Insurance Company and Metropolitan Life Insurance Company are included in the Statement of Additional Information, a copy of which can be obtained by writing to New England Securities Corporation at 501 Boylston Street, Boston, Massachusetts 02116 or telephoning 1-800-356-5015 or visiting our website at www.nef.com. ACCUMULATION UNIT VALUES NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT CONDENSED FINANCIAL INFORMATION The following tables show the Accumulation Unit Values through December 31, 2008 for each subaccount. The Accumulation Unit Values are shown for Contracts with the lowest total Variable Account charge that applied through December 31, 2008, and for Contracts with the highest total Variable Account Charge that applied through December 31, 2008. The first table shows Contracts with the Standard Death Benefit and no riders (1.15% Variable Account charge for all subaccounts except those investing in the American Funds Insurance Series, where it was 1.40%). The second table shows Contracts with the Greater of Annual Step- Up or 5% Annual Increase Death Benefit and the Earnings Preservation Benefit Rider (2.20% Variable Account charge for all subaccounts except those investing in the American Funds Insurance Series, where it was 2.45%.) All other possible combination of charges for an American Forerunner Series Contract appear in the Statement of Additional Information, which is A-99 available upon request by writing or calling New England Securities Corporation, 501 Boylston St., Boston, MA 02116 1-800-777-5897 or visiting our website at www.nef.com. ACCUMULATION UNIT VALUES (FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT CONDENSED FINANCIAL INFORMATION
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- American Forerunner -- 1.15 American Funds Balanced Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.008739 7.023763 2,139,300 American Funds Growth Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998740 6.370796 5,674,388 American Funds Moderate Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.018739 7.698627 1,998,760 BlackRock Aggressive Growth Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 34.939028 38.800924 8,169 01/01/2005 to 12/31/2005.................... 38.800924 42.360155 21,964 01/01/2006 to 12/31/2006.................... 42.360155 44.585585 48,714 01/01/2007 to 12/31/2007.................... 44.585585 52.991867 71,893 01/01/2008 to 12/31/2008.................... 52.991867 28.371329 88,238 BlackRock Bond Income Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 3.967687 4.116167 163,045 01/01/2002 to 12/31/2002.................... 4.116167 4.401486 1,804,114 01/01/2003 to 12/31/2003.................... 4.401486 4.594079 4,102,407 01/01/2004 to 12/31/2004.................... 4.594079 4.730889 5,962,426 01/01/2005 to 12/31/2005.................... 4.730889 4.777709 7,142,220 01/01/2006 to 12/31/2006.................... 4.777709 4.918626 7,522,271 01/01/2007 to 12/31/2007.................... 4.918626 5.154892 7,063,348 01/01/2008 to 12/31/2008.................... 5.154892 4.909032 5,787,885 BlackRock Diversified Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 36.941912 39.924032 17,530 01/01/2005 to 12/31/2005.................... 39.924032 40.581393 32,172 01/01/2006 to 12/31/2006.................... 40.581393 44.229038 41,317 01/01/2007 to 12/31/2007.................... 44.229038 46.176288 48,017 01/01/2008 to 12/31/2008.................... 46.176288 34.251139 49,567 BlackRock Large Cap Core Sub-Account(12) 04/30/2007 to 12/31/2007.................... 8.290231 8.375437 475,242 01/01/2008 to 12/31/2008.................... 8.375437 5.190547 508,205
A-100
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- BlackRock Large Cap Sub-Account(12) (previously BlackRock Investment Trust Sub-Account (Class B)) 07/02/2001 to 12/31/2001.................... 7.405651 6.772638 9,147 01/01/2002 to 12/31/2002.................... 6.772638 4.935465 174,161 01/01/2003 to 12/31/2003.................... 4.935465 6.338206 420,746 01/01/2004 to 12/31/2004.................... 6.338206 6.929556 622,871 01/01/2005 to 12/31/2005.................... 6.929556 7.077751 612,453 01/01/2006 to 12/31/2006.................... 7.077751 7.964984 514,294 01/01/2007 to 04/27/2007.................... 7.964984 8.359930 0 BlackRock Large Cap Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.074511 1.187350 1,779,030 01/01/2005 to 12/31/2005.................... 1.187350 1.239040 3,199,011 01/01/2006 to 12/31/2006.................... 1.239040 1.459220 4,651,289 01/01/2007 to 12/31/2007.................... 1.459220 1.487583 6,643,621 01/01/2008 to 12/31/2008.................... 1.487583 0.954237 7,976,000 BlackRock Large Cap Value Sub-Account (Class E)(9) 05/01/2002 to 12/31/2002.................... 1.000000 0.793741 375,552 01/01/2003 to 12/31/2003.................... 0.793741 1.062518 2,038,338 01/01/2004 to 12/31/2004.................... 1.062518 1.190256 3,754,139 01/01/2005 to 12/31/2005.................... 1.190256 1.243644 3,394,211 01/01/2006 to 12/31/2006.................... 1.243644 1.465566 3,610,207 01/01/2007 to 12/31/2007.................... 1.465566 1.496121 3,903,735 01/01/2008 to 12/31/2008.................... 1.496121 0.960759 3,627,371 BlackRock Legacy Large Cap Growth Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.375262 2.606996 350,302 01/01/2005 to 12/31/2005.................... 2.606996 2.751324 757,219 01/01/2006 to 12/31/2006.................... 2.751324 2.825633 887,193 01/01/2007 to 12/31/2007.................... 2.825633 3.307992 1,134,135 01/01/2008 to 12/31/2008.................... 3.307992 2.070212 1,395,870 BlackRock Legacy Large Cap Growth Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 3.039302 2.779511 273,278 01/01/2002 to 12/31/2002.................... 2.779511 1.834426 2,050,719 01/01/2003 to 12/31/2003.................... 1.834426 2.446494 4,355,028 01/01/2004 to 12/31/2004.................... 2.446494 2.626601 5,025,000 01/01/2005 to 12/31/2005.................... 2.626601 2.774555 4,418,744 01/01/2006 to 12/31/2006.................... 2.774555 2.852573 3,974,723 01/01/2007 to 12/31/2007.................... 2.852573 3.342657 3,563,998 01/01/2008 to 12/31/2008.................... 3.342657 2.093982 3,054,506
A-101
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- BlackRock Money Market Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 2.316804 2.332669 365,811 01/01/2002 to 12/31/2002.................... 2.332669 2.332852 2,821,839 01/01/2003 to 12/31/2003.................... 2.332852 2.318973 6,195,400 01/01/2004 to 12/31/2004.................... 2.318973 2.309213 6,704,053 01/01/2005 to 12/31/2005.................... 2.309213 2.343071 6,730,542 01/01/2006 to 12/31/2006.................... 2.343071 2.421770 7,612,640 01/01/2007 to 12/31/2007.................... 2.421770 2.509184 8,588,411 01/01/2008 to 12/31/2008.................... 2.509184 2.544886 13,450,403 BlackRock Strategic Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.626631 1.833047 2,779,549 01/01/2005 to 12/31/2005.................... 1.833047 1.882997 5,523,544 01/01/2006 to 12/31/2006.................... 1.882997 2.167606 6,291,565 01/01/2007 to 12/31/2007.................... 2.167606 2.063593 6,557,708 01/01/2008 to 12/31/2008.................... 2.063593 1.253431 6,669,517 BlackRock Strategic Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.432285 1.403224 642,658 01/01/2002 to 12/31/2002.................... 1.403224 1.089127 8,010,482 01/01/2003 to 12/31/2003.................... 1.089127 1.614079 17,079,781 01/01/2004 to 12/31/2004.................... 1.614079 1.837570 22,522,556 01/01/2005 to 12/31/2005.................... 1.837570 1.888488 20,398,176 01/01/2006 to 12/31/2006.................... 1.888488 2.177644 17,872,678 01/01/2007 to 12/31/2007.................... 2.177644 2.075611 15,735,424 01/01/2008 to 12/31/2008.................... 2.075611 1.261848 13,874,737 Clarion Global Real Estate Sub-Account (previously Neuberger Berman Real Estate Sub-Account)(17) 05/01/2004 to 12/31/2004.................... 9.999055 12.855176 389,828 01/01/2005 to 12/31/2005.................... 12.855176 14.397050 1,237,659 01/01/2006 to 12/31/2006.................... 14.397050 19.581741 1,855,516 01/01/2007 to 12/31/2007.................... 19.581741 16.451894 1,946,537 01/01/2008 to 12/31/2008.................... 16.451894 9.485788 2,056,888 Davis Venture Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.925848 3.154211 2,118,582 01/01/2005 to 12/31/2005.................... 3.154211 3.429931 6,914,939 01/01/2006 to 12/31/2006.................... 3.429931 3.876398 10,590,474 01/01/2007 to 12/31/2007.................... 3.876398 3.998279 12,408,677 01/01/2008 to 12/31/2008.................... 3.998279 2.390441 13,943,753
A-102
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- Davis Venture Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.834665 2.692750 574,764 01/01/2002 to 12/31/2002.................... 2.692750 2.221384 4,781,789 01/01/2003 to 12/31/2003.................... 2.221384 2.870941 11,135,852 01/01/2004 to 12/31/2004.................... 2.870941 3.182610 14,532,812 01/01/2005 to 12/31/2005.................... 3.182610 3.465227 14,852,787 01/01/2006 to 12/31/2006.................... 3.465227 3.919203 14,265,655 01/01/2007 to 12/31/2007.................... 3.919203 4.045854 13,051,767 01/01/2008 to 12/31/2008.................... 4.045854 2.421367 11,828,331 FI Large Cap Sub-Account 05/01/2006 to 12/31/2006.................... 17.509536 17.742684 4,682 01/01/2007 to 12/31/2007.................... 17.742684 18.191648 16,795 01/01/2008 to 12/31/2008.................... 18.191648 9.899608 21,313 FI Mid Cap Opportunities Sub-Account(4) 05/01/2002 to 12/31/2002.................... 1.000000 0.811726 318,975 01/01/2003 to 12/31/2003.................... 0.811726 1.140188 1,940,329 01/01/2004 to 04/30/2004.................... 1.140188 1.130795 2,954,746 FI Mid Cap Opportunities Sub-Account(3) (previously Janus Mid Cap Sub-Account) 07/02/2001 to 12/31/2001.................... 1.899424 1.567482 164,995 01/01/2002 to 12/31/2002.................... 1.567482 1.097491 607,378 01/01/2003 to 12/31/2003.................... 1.097491 1.456818 1,226,037 01/01/2004 to 12/31/2004.................... 1.456818 1.682450 4,503,752 01/01/2005 to 12/31/2005.................... 1.682450 1.774090 4,448,034 01/01/2006 to 12/31/2006.................... 1.774090 1.956578 4,127,653 01/01/2007 to 12/31/2007.................... 1.956578 2.090955 3,973,228 01/01/2008 to 12/31/2008.................... 2.090955 0.921211 3,921,022 FI Value Leaders Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.365503 2.672659 80,300 01/01/2005 to 12/31/2005.................... 2.672659 2.917798 476,645 01/01/2006 to 12/31/2006.................... 2.917798 3.220868 977,870 01/01/2007 to 12/31/2007.................... 3.220868 3.309276 1,135,793 01/01/2008 to 12/31/2008.................... 3.309276 1.992201 962,880 FI Value Leaders Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.652774 2.411394 98,150 01/01/2002 to 12/31/2002.................... 2.411394 1.917471 342,085 01/01/2003 to 12/31/2003.................... 1.917471 2.402457 743,172 01/01/2004 to 12/31/2004.................... 2.402457 2.697006 1,058,978 01/01/2005 to 12/31/2005.................... 2.697006 2.946950 1,051,934 01/01/2006 to 12/31/2006.................... 2.946950 3.256193 1,110,483 01/01/2007 to 12/31/2007.................... 3.256193 3.348856 1,006,488 01/01/2008 to 12/31/2008.................... 3.348856 2.018308 865,847
A-103
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- Franklin Templeton Small Cap Growth Sub-Account 07/02/2001 to 12/31/2001.................... 0.954129 0.881195 178,826 01/01/2002 to 12/31/2002.................... 0.881195 0.626836 1,795,413 01/01/2003 to 12/31/2003.................... 0.626836 0.896067 4,615,868 01/01/2004 to 12/31/2004.................... 0.896067 0.984537 6,743,180 01/01/2005 to 12/31/2005.................... 0.984537 1.016048 8,146,418 01/01/2006 to 12/31/2006.................... 1.016048 1.102095 9,589,427 01/01/2007 to 12/31/2007.................... 1.102095 1.136435 9,641,364 01/01/2008 to 12/31/2008.................... 1.136435 0.659333 10,254,621 Harris Oakmark Focused Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 3.096339 3.365533 1,370,253 01/01/2005 to 12/31/2005.................... 3.365533 3.650141 3,318,068 01/01/2006 to 12/31/2006.................... 3.650141 4.047789 4,449,531 01/01/2007 to 12/31/2007.................... 4.047789 3.718169 4,485,320 01/01/2008 to 12/31/2008.................... 3.718169 1.979894 4,563,854 Harris Oakmark Focused Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.560091 2.685571 481,964 01/01/2002 to 12/31/2002.................... 2.685571 2.416310 4,907,449 01/01/2003 to 12/31/2003.................... 2.416310 3.163837 11,636,252 01/01/2004 to 12/31/2004.................... 3.163837 3.433184 14,747,612 01/01/2005 to 12/31/2005.................... 3.433184 3.727094 13,867,196 01/01/2006 to 12/31/2006.................... 3.727094 4.137273 12,094,110 01/01/2007 to 12/31/2007.................... 4.137273 3.804158 10,867,283 01/01/2008 to 12/31/2008.................... 3.804158 2.027693 9,689,704 Harris Oakmark International Sub-Account (Class B)(6) 05/01/2003 to 12/31/2003.................... 0.878540 1.182011 2,995,185 01/01/2004 to 12/31/2004.................... 1.182011 1.408279 9,968,061 01/01/2005 to 12/31/2005.................... 1.408279 1.590425 16,284,269 01/01/2006 to 12/31/2006.................... 1.590425 2.025872 20,405,438 01/01/2007 to 12/31/2007.................... 2.025872 1.980184 21,282,940 01/01/2008 to 12/31/2008.................... 1.980184 1.157172 20,184,851 Harris Oakmark International Sub-Account (Class E)(7) 05/01/2002 to 12/31/2002.................... 1.061095 0.886504 0 01/01/2003 to 12/31/2003.................... 0.886504 1.184423 1,543,584 01/01/2004 to 12/31/2004.................... 1.184423 1.413075 2,533,199 01/01/2005 to 12/31/2005.................... 1.413075 1.596359 3,197,476 01/01/2006 to 12/31/2006.................... 1.596359 2.035584 3,474,457 01/01/2007 to 12/31/2007.................... 2.035584 1.992066 3,459,660 01/01/2008 to 12/31/2008.................... 1.992066 1.165262 2,773,250 Janus Forty Sub-Account 04/30/2007 to 12/31/2007.................... 155.288878 190.818735 11,955 01/01/2008 to 12/31/2008.................... 190.818735 109.412134 70,483
A-104
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- Jennison Growth Sub-Account (Class B) 05/01/2005 to 12/31/2005.................... 0.412046 0.495770 372,314 01/01/2006 to 12/31/2006.................... 0.495770 0.502487 834,092 01/01/2007 to 12/31/2007.................... 0.502487 0.553280 1,110,375 01/01/2008 to 12/31/2008.................... 0.553280 0.347050 1,270,553 Jennison Growth Subaccount (Class B)(8)(10) (previously Met/Putnam Voyager Sub-Account (Class B)) 05/01/2004 to 12/31/2004.................... 0.426835 0.446336 83,090 01/01/2005 to 04/30/2005.................... 0.446336 0.407095 0 Jennison Growth Sub-Account (Class E) 05/01/2005 to 12/31/2005.................... 0.412329 0.496830 3,192,387 01/01/2006 to 12/31/2006.................... 0.496830 0.503929 3,201,902 01/01/2007 to 12/31/2007.................... 0.503929 0.555641 2,656,436 01/01/2008 to 12/31/2008.................... 0.555641 0.348382 2,346,588 Jennison Growth Subaccount (Class E)(9)(10) (previously Met/Putnam Voyager Sub-Account (Class E)) 07/02/2001 to 12/31/2001.................... 0.576172 0.494394 357,289 01/01/2002 to 12/31/2002.................... 0.494394 0.347152 1,678,334 01/01/2003 to 12/31/2003.................... 0.347152 0.431385 3,578,139 01/01/2004 to 12/31/2004.................... 0.431385 0.446340 3,453,420 01/01/2005 to 04/30/2005.................... 0.446340 0.411153 0 Julius Baer International Stock Sub-Account (Class B) (formerly FI International Stock Sub-Account (Class B))(8)(15) 05/01/2004 to 12/31/2004.................... 1.221093 1.397216 1,227,378 01/01/2005 to 12/31/2005.................... 1.397216 1.624204 3,844,781 01/01/2006 to 12/31/2006.................... 1.624204 1.866242 5,748,730 01/01/2007 to 12/31/2007.................... 1.866242 2.030547 6,339,042 01/01/2008 to 12/31/2008.................... 2.030547 1.119223 7,948,500 Julius Baer International Stock Sub-Account (Class E) (formerly FI International Stock Sub-Account (Class E))(9)(15) 07/02/2001 to 12/31/2001.................... 1.286985 1.177247 302,022 01/01/2002 to 12/31/2002.................... 1.177247 0.958679 3,281,364 01/01/2003 to 12/31/2003.................... 0.958679 1.212108 9,382,604 01/01/2004 to 12/31/2004.................... 1.212108 1.414070 10,047,349 01/01/2005 to 12/31/2005.................... 1.414070 1.646785 9,262,176 01/01/2006 to 12/31/2006.................... 1.646785 1.892721 8,542,749 01/01/2007 to 12/31/2007.................... 1.892721 2.061892 7,354,196 01/01/2008 to 12/31/2008.................... 2.061892 1.137322 7,170,716
A-105
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- Lazard Mid Cap Sub-Account 05/01/2002 to 12/31/2002.................... 1.141290 0.969569 430,746 01/01/2003 to 12/31/2003.................... 0.969569 1.209365 3,066,916 01/01/2004 to 12/31/2004.................... 1.209365 1.367680 5,283,165 01/01/2005 to 12/31/2005.................... 1.367680 1.461043 5,799,526 01/01/2006 to 12/31/2006.................... 1.461043 1.656344 6,140,949 01/01/2007 to 12/31/2007.................... 1.656344 1.592926 7,222,657 01/01/2008 to 12/31/2008.................... 1.592926 0.971556 6,889,859 Legg Mason Partners Aggressive Growth Sub- Account(5)(13) 07/02/2001 to 12/31/2001.................... 0.952135 0.775990 338,843 01/01/2002 to 12/31/2002.................... 0.775990 0.530690 1,339,061 01/01/2003 to 12/31/2003.................... 0.530690 0.681507 2,098,484 01/01/2004 to 12/31/2004.................... 0.681507 0.730558 2,428,212 01/01/2005 to 12/31/2005.................... 0.730558 0.820277 2,795,359 01/01/2006 to 12/31/2006.................... 0.820277 0.796827 3,757,688 01/01/2007 to 12/31/2007.................... 0.796827 0.805523 3,722,075 01/01/2008 to 12/31/2008.................... 0.805523 0.485322 3,438,939 Legg Mason Value Equity Sub-Account 05/01/2006 to 12/31/2006.................... 9.519843 10.222985 69,097 01/01/2007 to 12/31/2007.................... 10.222985 9.508568 96,051 01/01/2008 to 12/31/2008.................... 9.508568 4.265892 114,583 Lehman Brothers(R) Aggregate Bond Index Sub- Account 07/02/2001 to 12/31/2001.................... 1.104444 1.137661 214,731 01/01/2002 to 12/31/2002.................... 1.137661 1.236460 3,314,448 01/01/2003 to 12/31/2003.................... 1.236460 1.263646 9,580,256 01/01/2004 to 12/31/2004.................... 1.263646 1.297178 11,900,128 01/01/2005 to 12/31/2005.................... 1.297178 1.306147 14,339,751 01/01/2006 to 12/31/2006.................... 1.306147 1.340487 15,246,938 01/01/2007 to 12/31/2007.................... 1.340487 1.413341 14,789,032 01/01/2008 to 12/31/2008.................... 1.413341 1.475806 12,927,831 Loomis Sayles Small Cap Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.401208 2.725367 300,389 01/01/2005 to 12/31/2005.................... 2.725367 2.874174 1,328,797 01/01/2006 to 12/31/2006.................... 2.874174 3.307237 2,293,441 01/01/2007 to 12/31/2007.................... 3.307237 3.649272 2,877,648 01/01/2008 to 12/31/2008.................... 3.649272 2.306703 3,215,282
A-106
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- Loomis Sayles Small Cap Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.417476 2.290434 145,572 01/01/2002 to 12/31/2002.................... 2.290434 1.774194 1,198,186 01/01/2003 to 12/31/2003.................... 1.774194 2.390252 3,539,781 01/01/2004 to 12/31/2004.................... 2.390252 2.745768 4,603,794 01/01/2005 to 12/31/2005.................... 2.745768 2.898261 4,742,441 01/01/2006 to 12/31/2006.................... 2.898261 3.338152 4,422,117 01/01/2007 to 12/31/2007.................... 3.338152 3.686879 3,933,129 01/01/2008 to 12/31/2008.................... 3.686879 2.332819 3,505,825 Lord Abbett Bond Debenture Sub-Account 07/02/2001 to 12/31/2001.................... 1.380912 1.390396 52,634 01/01/2002 to 12/31/2002.................... 1.390396 1.366619 963,586 01/01/2003 to 12/31/2003.................... 1.366619 1.609827 4,577,028 01/01/2004 to 12/31/2004.................... 1.609827 1.721334 9,039,529 01/01/2005 to 12/31/2005.................... 1.721334 1.727117 12,161,562 01/01/2006 to 12/31/2006.................... 1.727117 1.863611 14,355,332 01/01/2007 to 12/31/2007.................... 1.863611 1.962852 15,753,529 01/01/2008 to 12/31/2008.................... 1.962852 1.579380 13,447,224 Met/AIM Small Cap Growth Sub-Account 05/01/2002 to 12/31/2002.................... 1.123754 0.849902 651,148 01/01/2003 to 12/31/2003.................... 0.849902 1.166732 2,056,754 01/01/2004 to 12/31/2004.................... 1.166732 1.227546 2,741,236 01/01/2005 to 12/31/2005.................... 1.227546 1.313857 3,080,384 01/01/2006 to 12/31/2006.................... 1.313857 1.483088 2,830,369 01/01/2007 to 12/31/2007.................... 1.483088 1.628351 2,498,856 01/01/2008 to 12/31/2008.................... 1.628351 0.986272 2,237,821 Met/Franklin Income Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998740 8.000140 17,561 Met/Franklin Mutual Shares Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998740 6.611535 25,904 Met/Franklin Templeton Founding Strategy Sub- Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998740 7.045771 385,070 Met/Templeton Growth Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998740 6.580617 14,195 MetLife Aggressive Sub-Account 05/01/2005 to 12/31/2005.................... 9.999055 11.169288 24,530 01/01/2006 to 12/31/2006.................... 11.169288 12.770955 349,460 01/01/2007 to 12/31/2007.................... 12.770955 13.036832 595,402 01/01/2008 to 12/31/2008.................... 13.036832 7.674550 762,897
A-107
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- MetLife Conservative Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.999055 10.317034 7,268 01/01/2006 to 12/31/2006.................... 10.317034 10.902214 59,113 01/01/2007 to 12/31/2007.................... 10.902214 11.377287 282,342 01/01/2008 to 12/31/2008.................... 11.377287 9.628698 792,455 MetLife Conservative to Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.999055 10.535322 151,983 01/01/2006 to 12/31/2006.................... 10.535322 11.396525 542,136 01/01/2007 to 12/31/2007.................... 11.396525 11.807528 1,911,543 01/01/2008 to 12/31/2008.................... 11.807528 9.151441 2,651,607 MetLife Mid Cap Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.053577 1.033682 118,901 01/01/2002 to 12/31/2002.................... 1.033682 0.867483 1,826,447 01/01/2003 to 12/31/2003.................... 0.867483 1.153856 4,894,484 01/01/2004 to 12/31/2004.................... 1.153856 1.319938 7,335,056 01/01/2005 to 12/31/2005.................... 1.319938 1.461744 8,344,977 01/01/2006 to 12/31/2006.................... 1.461744 1.587065 9,084,788 01/01/2007 to 12/31/2007.................... 1.587065 1.686745 8,784,510 01/01/2008 to 12/31/2008.................... 1.686745 1.060829 8,755,243 MetLife Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.999055 10.766505 830,877 01/01/2006 to 12/31/2006.................... 10.766505 11.903852 2,840,488 01/01/2007 to 12/31/2007.................... 11.903852 12.278437 6,984,165 01/01/2008 to 12/31/2008.................... 12.278437 8.662263 9,916,917 MetLife Moderate to Aggressive Allocation Sub- Account 05/01/2005 to 12/31/2005.................... 9.999055 10.992739 483,478 01/01/2006 to 12/31/2006.................... 10.992739 12.412295 3,516,873 01/01/2007 to 12/31/2007.................... 12.412295 12.741993 13,893,994 01/01/2008 to 12/31/2008.................... 12.741993 8.172701 18,895,032 MetLife Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 3.893357 3.611327 114,642 01/01/2002 to 12/31/2002.................... 3.611327 2.766162 1,416,238 01/01/2003 to 12/31/2003.................... 2.766162 3.496726 3,440,780 01/01/2004 to 12/31/2004.................... 3.496726 3.811946 5,142,665 01/01/2005 to 12/31/2005.................... 3.811946 3.933377 5,401,947 01/01/2006 to 12/31/2006.................... 3.933377 4.479032 5,242,174 01/01/2007 to 12/31/2007.................... 4.479032 4.647803 4,774,960 01/01/2008 to 12/31/2008.................... 4.647803 2.882609 5,006,580 MFS(R) Investors Trust Sub-Account (Class B)(11) 05/01/2004 to 12/31/2004.................... 7.787457 8.647002 9,665 01/01/2005 to 12/31/2005.................... 8.647002 9.138390 20,535 01/01/2006 to 04/30/2006.................... 9.138390 9.558607 29,169
A-108
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- MFS(R) Investors Trust Sub-Account (Class E)(11) 07/02/2001 to 12/31/2001.................... 0.899677 0.835089 110,905 01/01/2002 to 12/31/2002.................... 0.835089 0.658445 813,019 01/01/2003 to 12/31/2003.................... 0.658445 0.790862 2,467,604 01/01/2004 to 12/31/2004.................... 0.790862 0.869966 4,638,502 01/01/2005 to 12/31/2005.................... 0.869966 0.921227 4,584,532 01/01/2006 to 04/30/2006.................... 0.921227 0.963902 0 MFS(R) Investors Trust Sub-Account(2)(11) (previously MFS(R) Research Managers Sub- Account) 07/02/2001 to 12/31/2001.................... 0.981512 0.881931 14,318 01/01/2002 to 12/31/2002.................... 0.881931 0.660811 488,204 01/01/2003 to 12/31/2003.................... 0.660811 0.809503 1,444,156 01/01/2004 to 04/30/2004.................... 0.809503 0.824834 1,931,513 MFS(R) Research International Sub-Account 07/02/2001 to 12/31/2001.................... 0.927492 0.849709 93,021 01/01/2002 to 12/31/2002.................... 0.849709 0.740863 1,816,147 01/01/2003 to 12/31/2003.................... 0.740863 0.967070 5,529,748 01/01/2004 to 12/31/2004.................... 0.967070 1.142973 8,360,916 01/01/2005 to 12/31/2005.................... 1.142973 1.315501 10,997,444 01/01/2006 to 12/31/2006.................... 1.315501 1.645958 12,926,162 01/01/2007 to 12/31/2007.................... 1.645958 1.843291 13,818,599 01/01/2008 to 12/31/2008.................... 1.843291 1.050197 17,805,194 MFS(R) Total Return Sub-Account 05/01/2004 to 12/31/2004.................... 3.836332 4.178340 2,030,803 01/01/2005 to 12/31/2005.................... 4.178340 4.248456 2,996,302 01/01/2006 to 12/31/2006.................... 4.248456 4.701210 3,176,630 01/01/2007 to 12/31/2007.................... 4.701210 4.838519 3,226,616 01/01/2008 to 12/31/2008.................... 4.838519 3.714131 2,711,425 MFS(R) Value Sub-Account (Class B) (formerly Harris Oakmark Large Cap Value Sub-Account (Class B))(8)(16) 05/01/2004 to 12/31/2004.................... 1.230199 1.329755 2,077,579 01/01/2005 to 12/31/2005.................... 1.329755 1.292898 6,777,537 01/01/2006 to 12/31/2006.................... 1.292898 1.506150 7,944,239 01/01/2007 to 12/31/2007.................... 1.506150 1.428893 8,029,025 01/01/2008 to 12/31/2008.................... 1.428893 0.936451 8,573,069
A-109
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- MFS(R) Value Sub-Account (Class E) (formerly Harris Oakmark Large Cap Value Sub-Account (Class E))(9)(16) 05/01/2002 to 12/31/2002.................... 1.194373 0.981280 1,013,132 01/01/2003 to 12/31/2003.................... 0.981280 1.215874 8,106,150 01/01/2004 to 12/31/2004.................... 1.215874 1.337643 11,067,763 01/01/2005 to 12/31/2005.................... 1.337643 1.301992 11,137,622 01/01/2006 to 12/31/2006.................... 1.301992 1.517964 10,194,359 01/01/2007 to 12/31/2007.................... 1.517964 1.441564 8,867,641 01/01/2008 to 12/31/2008.................... 1.441564 0.946068 7,557,362 MFS(R) Total Return Sub-Account(1) (previously Balanced Sub-Account) 07/02/2001 to 12/31/2001.................... 1.524385 1.498783 35,048 01/01/2002 to 12/31/2002.................... 1.498783 1.278296 1,327,453 01/01/2003 to 12/31/2003.................... 1.278296 1.511755 3,446,285 01/01/2004 to 04/30/2004.................... 1.511755 1.499786 4,349,772 Morgan Stanley EAFE(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 0.950882 0.858225 78,621 01/01/2002 to 12/31/2002.................... 0.858225 0.706210 1,730,884 01/01/2003 to 12/31/2003.................... 0.706210 0.957843 5,478,996 01/01/2004 to 12/31/2004.................... 0.957843 1.129340 8,721,376 01/01/2005 to 12/31/2005.................... 1.129340 1.260846 10,320,319 01/01/2006 to 12/31/2006.................... 1.260846 1.563644 11,042,309 01/01/2007 to 12/31/2007.................... 1.563644 1.708280 11,955,730 01/01/2008 to 12/31/2008.................... 1.708280 0.976071 12,740,429 Neuberger Berman Mid Cap Value Sub-Account 07/02/2001 to 12/31/2001.................... 1.561179 1.512612 63,321 01/01/2002 to 12/31/2002.................... 1.512612 1.347093 805,768 01/01/2003 to 12/31/2003.................... 1.347093 1.813282 2,573,919 01/01/2004 to 12/31/2004.................... 1.813282 2.198692 5,209,970 01/01/2005 to 12/31/2005.................... 2.198692 2.432881 8,256,813 01/01/2006 to 12/31/2006.................... 2.432881 2.674453 9,986,489 01/01/2007 to 12/31/2007.................... 2.674453 2.728070 10,970,053 01/01/2008 to 12/31/2008.................... 2.728070 1.416431 11,677,205 Oppenheimer Capital Appreciation Sub-Account 05/01/2005 to 12/31/2005.................... 8.032014 8.735738 29,894 01/01/2006 to 12/31/2006.................... 8.735738 9.293841 78,596 01/01/2007 to 12/31/2007.................... 9.293841 10.499744 169,622 01/01/2008 to 12/31/2008.................... 10.499744 5.611086 222,689
A-110
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- Oppenheimer Global Equity Sub-Account 05/01/2004 to 12/31/2004.................... 12.983513 15.001713 7,183 01/01/2005 to 12/31/2005.................... 15.001713 17.200474 75,986 01/01/2006 to 12/31/2006.................... 17.200474 19.784749 221,134 01/01/2007 to 12/31/2007.................... 19.784749 20.781961 304,771 01/01/2008 to 12/31/2008.................... 20.781961 12.211547 300,693 PIMCO Inflation Protection Bond Sub-Account 05/01/2006 to 12/31/2006.................... 11.078325 11.205166 64,045 01/01/2007 to 12/31/2007.................... 11.205166 12.272379 151,478 01/01/2008 to 12/31/2008.................... 12.272379 11.295897 916,660 PIMCO Total Return Sub-Account 07/02/2001 to 12/31/2001.................... 1.008542 1.056063 1,136,384 01/01/2002 to 12/31/2002.................... 1.056063 1.141013 9,603,432 01/01/2003 to 12/31/2003.................... 1.141013 1.176541 29,020,116 01/01/2004 to 12/31/2004.................... 1.176541 1.220981 42,539,683 01/01/2005 to 12/31/2005.................... 1.220981 1.234188 53,067,828 01/01/2006 to 12/31/2006.................... 1.234188 1.275235 56,248,053 01/01/2007 to 12/31/2007.................... 1.275235 1.355933 55,723,578 01/01/2008 to 12/31/2008.................... 1.355933 1.345880 49,763,446 RCM Technology Sub-Account 07/02/2001 to 12/31/2001.................... 0.758624 0.610749 236,284 01/01/2002 to 12/31/2002.................... 0.610749 0.297468 1,811,806 01/01/2003 to 12/31/2003.................... 0.297468 0.463355 6,874,562 01/01/2004 to 12/31/2004.................... 0.463355 0.438292 12,237,593 01/01/2005 to 12/31/2005.................... 0.438292 0.481024 11,341,203 01/01/2006 to 12/31/2006.................... 0.481024 0.500963 11,210,671 01/01/2007 to 12/31/2007.................... 0.500963 0.651313 11,514,422 01/01/2008 to 12/31/2008.................... 0.651313 0.357644 11,811,439 Russell 2000(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.226300 1.193861 176,064 01/01/2002 to 12/31/2002.................... 1.193861 0.936873 1,652,423 01/01/2003 to 12/31/2003.................... 0.936873 1.349540 4,202,177 01/01/2004 to 12/31/2004.................... 1.349540 1.566231 7,033,204 01/01/2005 to 12/31/2005.................... 1.566231 1.614955 8,067,607 01/01/2006 to 12/31/2006.................... 1.614955 1.877218 8,902,863 01/01/2007 to 12/31/2007.................... 1.877218 1.824009 8,818,796 01/01/2008 to 12/31/2008.................... 1.824009 1.195970 8,219,937 SSgA Growth and Income ETF Sub-Account (formerly Cyclical Growth and Income ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.528821 11.195806 19,800 01/01/2007 to 12/31/2007.................... 11.195806 11.664615 85,601 01/01/2008 to 12/31/2008.................... 11.664615 8.641254 164,786
A-111
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- SSgA Growth ETF Sub-Account (formerly Cyclical Growth ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.719973 11.451405 23,293 01/01/2007 to 12/31/2007.................... 11.451405 11.955814 46,159 01/01/2008 to 12/31/2008.................... 11.955814 7.922324 87,355 T. Rowe Price Large Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.132121 1.228822 1,449,526 01/01/2005 to 12/31/2005.................... 1.228822 1.291677 5,547,726 01/01/2006 to 12/31/2006.................... 1.291677 1.441446 7,160,330 01/01/2007 to 12/31/2007.................... 1.441446 1.555276 8,008,961 01/01/2008 to 12/31/2008.................... 1.555276 0.891682 8,861,861 T. Rowe Price Mid Cap Growth Sub-Account 07/02/2001 to 12/31/2001.................... 0.931854 0.825551 41,122 01/01/2002 to 12/31/2002.................... 0.825551 0.456708 1,655,011 01/01/2003 to 12/31/2003.................... 0.456708 0.616917 5,668,644 01/01/2004 to 12/31/2004.................... 0.616917 0.718542 12,901,702 01/01/2005 to 12/31/2005.................... 0.718542 0.814249 19,229,605 01/01/2006 to 12/31/2006.................... 0.814249 0.854583 23,043,363 01/01/2007 to 12/31/2007.................... 0.854583 0.993758 25,073,979 01/01/2008 to 12/31/2008.................... 0.993758 0.591882 26,714,584 T. Rowe Price Small Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.260567 1.346140 151,024 01/01/2005 to 12/31/2005.................... 1.346140 1.473388 708,562 01/01/2006 to 12/31/2006.................... 1.473388 1.509438 1,478,571 01/01/2007 to 12/31/2007.................... 1.509438 1.634326 1,792,516 01/01/2008 to 12/31/2008.................... 1.634326 1.028841 2,187,102 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.910648 2.028901 1,435,056 01/01/2005 to 12/31/2005.................... 2.028901 2.057148 4,955,681 01/01/2006 to 12/31/2006.................... 2.057148 2.131819 7,685,962 01/01/2007 to 12/31/2007.................... 2.131819 2.185365 8,845,406 01/01/2008 to 12/31/2008.................... 2.185365 1.831445 7,824,922 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(9) 07/02/2001 to 12/31/2001.................... 1.578946 1.617493 180,096 01/01/2002 to 12/31/2002.................... 1.617493 1.748698 1,639,255 01/01/2003 to 12/31/2003.................... 1.748698 1.944727 5,507,868 01/01/2004 to 12/31/2004.................... 1.944727 2.046945 8,185,861 01/01/2005 to 12/31/2005.................... 2.046945 2.077677 8,394,205 01/01/2006 to 12/31/2006.................... 2.077677 2.153702 7,962,524 01/01/2007 to 12/31/2007.................... 2.153702 2.211727 7,864,990 01/01/2008 to 12/31/2008.................... 2.211727 1.855921 5,862,575
A-112
1.15% VARIABLE ACCOUNT CHARGE --------------------------------------- AUV AT AUV AT ACCUM UNITS BEGINNING OF ENDING OF END OF PERIOD PERIOD PERIOD ------------ ---------- ----------- Western Asset Management U.S. Government Sub- Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.579245 1.619580 2,054,332 01/01/2005 to 12/31/2005.................... 1.619580 1.623381 6,607,389 01/01/2006 to 12/31/2006.................... 1.623381 1.667697 8,653,084 01/01/2007 to 12/31/2007.................... 1.667697 1.715019 8,732,679 01/01/2008 to 12/31/2008.................... 1.715019 1.686333 9,173,702 Western Asset Management U.S. Government Sub- Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.458588 1.504288 871,165 01/01/2002 to 12/31/2002.................... 1.504288 1.600458 4,380,584 01/01/2003 to 12/31/2003.................... 1.600458 1.606657 10,414,448 01/01/2004 to 12/31/2004.................... 1.606657 1.632791 12,063,010 01/01/2005 to 12/31/2005.................... 1.632791 1.639669 11,770,403 01/01/2006 to 12/31/2006.................... 1.639669 1.685404 10,745,311 01/01/2007 to 12/31/2007.................... 1.685404 1.734878 9,495,932 01/01/2008 to 12/31/2008.................... 1.734878 1.707646 7,041,869
1.40% VARIABLE ACCOUNT CHARGE ---------------------------------------------- NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD ------------- ------------- -------------- American Forerunner -- 1.40 American Funds Bond Sub-Account 05/01/2006 to 12/31/2006..................... 14.825548 15.562026 165,796 01/01/2007 to 12/31/2007..................... 15.562026 15.855269 691,490 01/01/2008 to 12/31/2008..................... 15.855269 14.172696 684,203 American Funds Global Small Capitalization Sub- Account 07/02/2001 to 12/31/2001..................... 1.467879 1.354969 174,008 01/01/2002 to 12/31/2002..................... 1.354969 1.081548 2,084,831 01/01/2003 to 12/31/2003..................... 1.081548 1.637421 4,945,481 01/01/2004 to 12/31/2004..................... 1.637421 1.951751 9,266,699 01/01/2005 to 12/31/2005..................... 1.951751 2.412643 12,165,119 01/01/2006 to 12/31/2006..................... 2.412643 2.951478 15,102,207 01/01/2007 to 12/31/2007..................... 2.951478 3.533839 16,495,469 01/01/2008 to 12/31/2008..................... 3.533839 1.619536 17,411,843 American Forerunner -- 1.15 01/00/1900
A-113
1.40% VARIABLE ACCOUNT CHARGE ---------------------------------------------- NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD ------------- ------------- -------------- American Funds Growth Sub-Account 07/02/2001 to 12/31/2001..................... 12.984914 11.482595 92,536 01/01/2002 to 12/31/2002..................... 11.482595 8.553837 1,339,395 01/01/2003 to 12/31/2003..................... 8.553837 11.539710 3,886,871 01/01/2004 to 12/31/2004..................... 11.539710 12.800876 6,318,658 01/01/2005 to 12/31/2005..................... 12.800876 14.667370 7,944,020 01/01/2006 to 12/31/2006..................... 14.667370 15.941872 8,793,027 01/01/2007 to 12/31/2007..................... 15.941872 17.660120 8,829,483 01/01/2008 to 12/31/2008..................... 17.660120 9.756618 9,143,320 American Funds Growth-Income Sub-Account 07/02/2001 to 12/31/2001..................... 8.799275 8.540624 110,485 01/01/2002 to 12/31/2002..................... 8.540624 6.876924 1,449,139 01/01/2003 to 12/31/2003..................... 6.876924 8.980345 4,125,345 01/01/2004 to 12/31/2004..................... 8.980345 9.773854 6,296,437 01/01/2005 to 12/31/2005..................... 9.773854 10.200482 7,723,449 01/01/2006 to 12/31/2006..................... 10.200482 11.588340 8,088,661 01/01/2007 to 12/31/2007..................... 11.588340 12.002585 7,801,254 01/01/2008 to 12/31/2008..................... 12.002585 7.355638 7,641,518
A-114 ACCUMULATION UNIT VALUES (FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT CONDENSED FINANCIAL INFORMATION
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ American Forerunner -- 2.20 American Funds Balanced Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008..................... 10.007589 6.973097 0 American Funds Growth Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008..................... 9.997589 6.324798 0 American Funds Moderate Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008..................... 10.017588 7.643140 0 BlackRock Aggressive Growth Sub-Account (Class B) 05/01/2004 to 12/31/2004..................... 29.528498 32.564802 0 01/01/2005 to 12/31/2005..................... 32.564802 35.181834 324 01/01/2006 to 12/31/2006..................... 35.181834 36.644245 972 01/01/2007 to 12/31/2007..................... 36.644245 43.096000 1,142 01/01/2008 to 12/31/2008..................... 43.096000 22.830686 1,172 BlackRock Bond Income Sub-Account (Class B) 07/02/2001 to 12/31/2001..................... 3.289752 3.395052 0 01/01/2002 to 12/31/2002..................... 3.395052 3.592471 0 01/01/2003 to 12/31/2003..................... 3.592471 3.710502 9,484 01/01/2004 to 12/31/2004..................... 3.710502 3.780980 20,644 01/01/2005 to 12/31/2005..................... 3.780980 3.778624 21,119 01/01/2006 to 12/31/2006..................... 3.778624 3.849555 13,969 01/01/2007 to 12/31/2007..................... 3.849555 3.992112 16,300 01/01/2008 to 12/31/2008..................... 3.992112 3.761891 12,966 BlackRock Diversified Sub-Account (Class B) 05/01/2004 to 12/31/2004..................... 30.635232 32.878595 415 01/01/2005 to 12/31/2005..................... 32.878595 33.071886 91 01/01/2006 to 12/31/2006..................... 33.071886 35.669174 338 01/01/2007 to 12/31/2007..................... 35.669174 36.848524 321 01/01/2008 to 12/31/2008..................... 36.848524 27.045619 299 BlackRock Large Cap Core Sub-Account(12) 04/30/2007 to 12/31/2007..................... 6.452878 6.473410 1,846 01/01/2008 to 12/31/2008..................... 6.473410 3.969669 0
A-115
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ BlackRock Large Cap Sub-Account(12) (previously BlackRock Investment Trust Sub-Account (Class B)) 07/02/2001 to 12/31/2001..................... 6.128417 5.575148 0 01/01/2002 to 12/31/2002..................... 5.575148 4.020285 0 01/01/2003 to 12/31/2003..................... 4.020285 5.109056 0 01/01/2004 to 12/31/2004..................... 5.109056 5.527244 0 01/01/2005 to 12/31/2005..................... 5.527244 5.586658 0 01/01/2006 to 12/31/2006..................... 5.586658 6.221507 1,904 01/01/2007 to 04/27/2007..................... 6.221507 6.507696 0 BlackRock Large Cap Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004..................... 1.052091 1.154511 0 01/01/2005 to 12/31/2005..................... 1.154511 1.192227 6,810 01/01/2006 to 12/31/2006..................... 1.192227 1.389468 84,147 01/01/2007 to 12/31/2007..................... 1.389468 1.401599 176,220 01/01/2008 to 12/31/2008..................... 1.401599 0.889641 107,847 BlackRock Large Cap Value Sub-Account (Class E)(9) 05/01/2002 to 12/31/2002..................... 1.000000 0.788172 0 01/01/2003 to 12/31/2003..................... 0.788172 1.044060 7,861 01/01/2004 to 12/31/2004..................... 1.044060 1.157334 15,772 01/01/2005 to 12/31/2005..................... 1.157334 1.196654 33,539 01/01/2006 to 12/31/2006..................... 1.196654 1.395508 34,537 01/01/2007 to 12/31/2007..................... 1.395508 1.409640 35,649 01/01/2008 to 12/31/2008..................... 1.409640 0.895719 33,458 BlackRock Legacy Large Cap Growth Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004..................... 2.149498 2.342840 3,511 01/01/2005 to 12/31/2005..................... 2.342840 2.446796 13,081 01/01/2006 to 12/31/2006..................... 2.446796 2.486696 20,230 01/01/2007 to 12/31/2007..................... 2.486696 2.880635 22,491 01/01/2008 to 12/31/2008..................... 2.880635 1.783832 23,845 BlackRock Legacy Large Cap Growth Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001..................... 2.833690 2.577886 0 01/01/2002 to 12/31/2002..................... 2.577886 1.683547 0 01/01/2003 to 12/31/2003..................... 1.683547 2.221857 3,020 01/01/2004 to 12/31/2004..................... 2.221857 2.360447 19,886 01/01/2005 to 12/31/2005..................... 2.360447 2.467444 28,901 01/01/2006 to 12/31/2006..................... 2.467444 2.510392 28,727 01/01/2007 to 12/31/2007..................... 2.510392 2.910806 28,587 01/01/2008 to 12/31/2008..................... 2.910806 1.804304 28,140
A-116
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ BlackRock Money Market Sub-Account (Class B) 07/02/2001 to 12/31/2001..................... 1.920674 1.923760 0 01/01/2002 to 12/31/2002..................... 1.923760 1.903818 0 01/01/2003 to 12/31/2003..................... 1.903818 1.872726 31,002 01/01/2004 to 12/31/2004..................... 1.872726 1.845312 64,852 01/01/2005 to 12/31/2005..................... 1.845312 1.852865 41,252 01/01/2006 to 12/31/2006..................... 1.852865 1.895153 45,608 01/01/2007 to 12/31/2007..................... 1.895153 1.942941 43,463 01/01/2008 to 12/31/2008..................... 1.942941 1.949948 37,566 BlackRock Strategic Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004..................... 1.562518 1.748585 137,836 01/01/2005 to 12/31/2005..................... 1.748585 1.777530 168,944 01/01/2006 to 12/31/2006..................... 1.777530 2.024884 78,843 01/01/2007 to 12/31/2007..................... 2.024884 1.907462 104,899 01/01/2008 to 12/31/2008..................... 1.907462 1.146425 36,889 BlackRock Strategic Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001..................... 1.417468 1.381413 0 01/01/2002 to 12/31/2002..................... 1.381413 1.060973 0 01/01/2003 to 12/31/2003..................... 1.060973 1.555960 21,326 01/01/2004 to 12/31/2004..................... 1.555960 1.752858 41,566 01/01/2005 to 12/31/2005..................... 1.752858 1.782672 53,701 01/01/2006 to 12/31/2006..................... 1.782672 2.034215 54,698 01/01/2007 to 12/31/2007..................... 2.034215 1.918527 52,037 01/01/2008 to 12/31/2008..................... 1.918527 1.154097 42,289 Clarion Global Real Estate Sub-Account (previously Neuberger Berman Real Estate Sub- Account)(17) 05/01/2004 to 12/31/2004..................... 9.998192 12.764997 4,955 01/01/2005 to 12/31/2005..................... 12.764997 14.147202 11,234 01/01/2006 to 12/31/2006..................... 14.147202 19.041742 26,839 01/01/2007 to 12/31/2007..................... 19.041742 15.830068 22,801 01/01/2008 to 12/31/2008..................... 15.830068 9.031329 15,525 Davis Venture Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004..................... 2.647827 2.834688 41,463 01/01/2005 to 12/31/2005..................... 2.834688 3.050386 79,987 01/01/2006 to 12/31/2006..................... 3.050386 3.411548 203,065 01/01/2007 to 12/31/2007..................... 3.411548 3.481854 89,779 01/01/2008 to 12/31/2008..................... 3.481854 2.059813 73,302
A-117
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ Davis Venture Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001..................... 2.642938 2.497466 0 01/01/2002 to 12/31/2002..................... 2.497466 2.038732 0 01/01/2003 to 12/31/2003..................... 2.038732 2.607387 18,677 01/01/2004 to 12/31/2004..................... 2.607387 2.860180 231,327 01/01/2005 to 12/31/2005..................... 2.860180 3.081745 37,707 01/01/2006 to 12/31/2006..................... 3.081745 3.449185 37,725 01/01/2007 to 12/31/2007..................... 3.449185 3.523249 37,901 01/01/2008 to 12/31/2008..................... 3.523249 2.086441 33,480 FI Large Cap Sub-Account 05/01/2006 to 12/31/2006..................... 15.818357 15.917739 0 01/01/2007 to 12/31/2007..................... 15.917739 16.149075 0 01/01/2008 to 12/31/2008..................... 16.149075 8.695741 0 FI Mid Cap Opportunities Sub-Account(4) 05/01/2002 to 12/31/2002..................... 1.000000 0.806033 0 01/01/2003 to 12/31/2003..................... 0.806033 1.120382 6,352 01/01/2004 to 04/30/2004..................... 1.120382 1.107324 40,828 FI Mid Cap Opportunities Sub-Account(3) (previously Janus Mid Cap Sub-Account) 07/02/2001 to 12/31/2001..................... 1.814885 1.489847 0 01/01/2002 to 12/31/2002..................... 1.489847 1.032208 0 01/01/2003 to 12/31/2003..................... 1.032208 1.355874 3,788 01/01/2004 to 12/31/2004..................... 1.355874 1.549471 125,500 01/01/2005 to 12/31/2005..................... 1.549471 1.616856 127,987 01/01/2006 to 12/31/2006..................... 1.616856 1.764590 47,680 01/01/2007 to 12/31/2007..................... 1.764590 1.865975 67,363 01/01/2008 to 12/31/2008..................... 1.865975 0.813441 37,748 FI Value Leaders Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004..................... 2.107115 2.364207 607 01/01/2005 to 12/31/2005..................... 2.364207 2.554180 3,873 01/01/2006 to 12/31/2006..................... 2.554180 2.790114 33,250 01/01/2007 to 12/31/2007..................... 2.790114 2.836590 42,859 01/01/2008 to 12/31/2008..................... 2.836590 1.689700 18,371 FI Value Leaders Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001..................... 2.434601 2.201472 0 01/01/2002 to 12/31/2002..................... 2.201472 1.732236 0 01/01/2003 to 12/31/2003..................... 1.732236 2.147737 0 01/01/2004 to 12/31/2004..................... 2.147737 2.385812 3,016 01/01/2005 to 12/31/2005..................... 2.385812 2.579773 11,374 01/01/2006 to 12/31/2006..................... 2.579773 2.820795 11,374 01/01/2007 to 12/31/2007..................... 2.820795 2.870598 11,374 01/01/2008 to 12/31/2008..................... 2.870598 1.711892 11,374
A-118
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ Franklin Templeton Small Cap Growth Sub-Account 07/02/2001 to 12/31/2001..................... 0.952424 0.875004 0 01/01/2002 to 12/31/2002..................... 0.875004 0.615917 0 01/01/2003 to 12/31/2003..................... 0.615917 0.871274 6,247 01/01/2004 to 12/31/2004..................... 0.871274 0.947272 166,064 01/01/2005 to 12/31/2005..................... 0.947272 0.967412 215,948 01/01/2006 to 12/31/2006..................... 0.967412 1.038404 104,112 01/01/2007 to 12/31/2007..................... 1.038404 1.059511 109,626 01/01/2008 to 12/31/2008..................... 1.059511 0.608244 85,025 Harris Oakmark Focused Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004..................... 2.758183 2.977180 37,105 01/01/2005 to 12/31/2005..................... 2.977180 3.195328 55,264 01/01/2006 to 12/31/2006..................... 3.195328 3.506527 53,467 01/01/2007 to 12/31/2007..................... 3.506527 3.187138 19,925 01/01/2008 to 12/31/2008..................... 3.187138 1.679285 13,552 Harris Oakmark Focused Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001..................... 2.349496 2.451764 0 01/01/2002 to 12/31/2002..................... 2.451764 2.182873 0 01/01/2003 to 12/31/2003..................... 2.182873 2.828363 63,108 01/01/2004 to 12/31/2004..................... 2.828363 3.037004 67,383 01/01/2005 to 12/31/2005..................... 3.037004 3.262671 27,710 01/01/2006 to 12/31/2006..................... 3.262671 3.584022 25,192 01/01/2007 to 12/31/2007..................... 3.584022 3.260825 15,910 01/01/2008 to 12/31/2008..................... 3.260825 1.719816 14,545 Harris Oakmark International Sub-Account (Class B)(6) 05/01/2003 to 12/31/2003..................... 0.864265 1.154680 0 01/01/2004 to 12/31/2004..................... 1.154680 1.361315 154,133 01/01/2005 to 12/31/2005..................... 1.361315 1.521381 224,942 01/01/2006 to 12/31/2006..................... 1.521381 1.917749 201,589 01/01/2007 to 12/31/2007..................... 1.917749 1.854805 212,077 01/01/2008 to 12/31/2008..................... 1.854805 1.072522 78,472 Janus Forty Sub-Account 04/30/2007 to 12/31/2007..................... 119.280338 145.542773 505 01/01/2008 to 12/31/2008..................... 145.542773 82.574883 919 Jennison Growth Sub-Account (Class B) 05/01/2005 to 12/31/2005..................... 0.390922 0.467096 40,374 01/01/2006 to 12/31/2006..................... 0.467096 0.468491 41,226 01/01/2007 to 12/31/2007..................... 0.468491 0.510431 42,167 01/01/2008 to 12/31/2008..................... 0.510431 0.316809 48,888 Jennison Growth Subaccount (Class B)(8)(10) (previously Met/Putnam Voyager Sub-Account (Class B)) 05/01/2004 to 12/31/2004..................... 0.409218 0.424945 0 01/01/2005 to 04/30/2005..................... 0.424945 0.386270 0
A-119
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ Jennison Growth Sub-Account (Class E) 05/01/2005 to 12/31/2005..................... 0.391191 0.468094 13,393 01/01/2006 to 12/31/2006..................... 0.468094 0.469834 13,959 01/01/2007 to 12/31/2007..................... 0.469834 0.512608 13,935 01/01/2008 to 12/31/2008..................... 0.512608 0.318025 12,184 Jennison Growth Subaccount (Class E)(9)(10) (previously Met/Putnam Voyager Sub-Account (Class E)) 07/02/2001 to 12/31/2001..................... 0.569116 0.485780 0 01/01/2002 to 12/31/2002..................... 0.485780 0.337533 0 01/01/2003 to 12/31/2003..................... 0.337533 0.415056 12,375 01/01/2004 to 12/31/2004..................... 0.415056 0.424948 13,323 01/01/2005 to 04/30/2005..................... 0.424948 0.390108 0 Julius Baer International Stock Sub-Account (Class B) (formerly FI International Stock Sub-Account (Class B))(8)(15) 05/01/2004 to 12/31/2004..................... 1.065074 1.210240 38,955 01/01/2005 to 12/31/2005..................... 1.210240 1.392205 29,796 01/01/2006 to 12/31/2006..................... 1.392205 1.583009 57,536 01/01/2007 to 12/31/2007..................... 1.583009 1.704290 83,475 01/01/2008 to 12/31/2008..................... 1.704290 0.929532 118,037 Julius Baer International Stock Sub-Account (Class E) (formerly FI International Stock Sub-Account (Class E))(9)(15) 07/02/2001 to 12/31/2001..................... 1.156531 1.052366 0 01/01/2002 to 12/31/2002..................... 1.052366 0.848021 0 01/01/2003 to 12/31/2003..................... 0.848021 1.061006 2,237 01/01/2004 to 12/31/2004..................... 1.061006 1.224834 2,228 01/01/2005 to 12/31/2005..................... 1.224834 1.411556 2,219 01/01/2006 to 12/31/2006..................... 1.411556 1.605463 2,210 01/01/2007 to 12/31/2007..................... 1.605463 1.730593 2,200 01/01/2008 to 12/31/2008..................... 1.730593 0.944560 1,265 Lazard Mid Cap Sub-Account 05/01/2002 to 12/31/2002..................... 1.134614 0.957136 0 01/01/2003 to 12/31/2003..................... 0.957136 1.181399 0 01/01/2004 to 12/31/2004..................... 1.181399 1.322062 2,144 01/01/2005 to 12/31/2005..................... 1.322062 1.397607 2,133 01/01/2006 to 12/31/2006..................... 1.397607 1.567929 57,788 01/01/2007 to 12/31/2007..................... 1.567929 1.492057 80,480 01/01/2008 to 12/31/2008..................... 1.492057 0.900477 48,776
A-120
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ Legg Mason Partners Aggressive Growth Sub- Account(5)(13) 07/02/2001 to 12/31/2001..................... 0.950434 0.770544 0 01/01/2002 to 12/31/2002..................... 0.770544 0.521447 0 01/01/2003 to 12/31/2003..................... 0.521447 0.662628 0 01/01/2004 to 12/31/2004..................... 0.662628 0.702881 5,165 01/01/2005 to 12/31/2005..................... 0.702881 0.780985 12,328 01/01/2006 to 12/31/2006..................... 0.780985 0.750752 77,494 01/01/2007 to 12/31/2007..................... 0.750752 0.750973 79,346 01/01/2008 to 12/31/2008..................... 0.750973 0.447703 82,332 Legg Mason Value Equity Sub-Account 05/01/2006 to 12/31/2006..................... 8.844334 9.431696 0 01/01/2007 to 12/31/2007..................... 9.431696 8.680398 932 01/01/2008 to 12/31/2008..................... 8.680398 3.853354 744 Lehman Brothers(R) Aggregate Bond Index Sub- Account 07/02/2001 to 12/31/2001..................... 1.074285 1.100823 0 01/01/2002 to 12/31/2002..................... 1.100823 1.183930 0 01/01/2003 to 12/31/2003..................... 1.183930 1.197322 233,953 01/01/2004 to 12/31/2004..................... 1.197322 1.216221 52,976 01/01/2005 to 12/31/2005..................... 1.216221 1.211873 71,366 01/01/2006 to 12/31/2006..................... 1.211873 1.230779 70,018 01/01/2007 to 12/31/2007..................... 1.230779 1.284048 105,888 01/01/2008 to 12/31/2008..................... 1.284048 1.326761 62,767 Loomis Sayles Small Cap Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004..................... 2.161605 2.436398 0 01/01/2005 to 12/31/2005..................... 2.436398 2.542675 5,528 01/01/2006 to 12/31/2006..................... 2.542675 2.895310 16,644 01/01/2007 to 12/31/2007..................... 2.895310 3.161190 30,241 01/01/2008 to 12/31/2008..................... 3.161190 1.977202 47,137 Loomis Sayles Small Cap Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001..................... 2.242109 2.113147 0 01/01/2002 to 12/31/2002..................... 2.113147 1.619735 0 01/01/2003 to 12/31/2003..................... 1.619735 2.159414 2,425 01/01/2004 to 12/31/2004..................... 2.159414 2.454626 6,936 01/01/2005 to 12/31/2005..................... 2.454626 2.563974 15,352 01/01/2006 to 12/31/2006..................... 2.563974 2.922363 17,059 01/01/2007 to 12/31/2007..................... 2.922363 3.193754 16,791 01/01/2008 to 12/31/2008..................... 3.193754 1.999579 16,354
A-121
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ Lord Abbett Bond Debenture Sub-Account 07/02/2001 to 12/31/2001..................... 1.319758 1.321880 0 01/01/2002 to 12/31/2002..................... 1.321880 1.285701 0 01/01/2003 to 12/31/2003..................... 1.285701 1.498707 162,520 01/01/2004 to 12/31/2004..................... 1.498707 1.585737 223,374 01/01/2005 to 12/31/2005..................... 1.585737 1.574492 74,062 01/01/2006 to 12/31/2006..................... 1.574492 1.681231 96,970 01/01/2007 to 12/31/2007..................... 1.681231 1.752167 57,966 01/01/2008 to 12/31/2008..................... 1.752167 1.395079 49,742 Met/AIM Small Cap Growth Sub-Account 05/01/2002 to 12/31/2002..................... 1.117179 0.839004 0 01/01/2003 to 12/31/2003..................... 0.839004 1.139755 0 01/01/2004 to 12/31/2004..................... 1.139755 1.186602 23,434 01/01/2005 to 12/31/2005..................... 1.186602 1.256812 23,649 01/01/2006 to 12/31/2006..................... 1.256812 1.403914 22,917 01/01/2007 to 12/31/2007..................... 1.403914 1.525233 20,674 01/01/2008 to 12/31/2008..................... 1.525233 0.914110 0 Met/Franklin Income Sub-Account (Class C) 04/28/2008 to 12/31/2008..................... 9.997589 7.942507 0 Met/Franklin Mutual Shares Sub-Account (Class C) 04/28/2008 to 12/31/2008..................... 9.997589 6.563810 0 Met/Franklin Templeton Founding Strategy Sub- Account (Class C) 04/28/2008 to 12/31/2008..................... 9.997589 6.994952 0 Met/Templeton Growth Sub-Account (Class C) 04/28/2008 to 12/31/2008..................... 9.997589 6.533132 0 MetLife Aggressive Sub-Account 05/01/2005 to 12/31/2005..................... 9.998192 11.090906 0 01/01/2006 to 12/31/2006..................... 11.090906 12.549255 0 01/01/2007 to 12/31/2007..................... 12.549255 12.675952 0 01/01/2008 to 12/31/2008..................... 12.675952 7.383724 7,971 MetLife Conservative Allocation Sub-Account 05/01/2005 to 12/31/2005..................... 9.998192 10.244587 0 01/01/2006 to 12/31/2006..................... 10.244587 10.712904 57,287 01/01/2007 to 12/31/2007..................... 10.712904 11.062340 4,990 01/01/2008 to 12/31/2008..................... 11.062340 9.264045 6,611 MetLife Conservative to Moderate Allocation Sub- Account 05/01/2005 to 12/31/2005..................... 9.998192 10.461355 0 01/01/2006 to 12/31/2006..................... 10.461355 11.198645 0 01/01/2007 to 12/31/2007..................... 11.198645 11.480672 106,882 01/01/2008 to 12/31/2008..................... 11.480672 8.804813 99,674
A-122
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ MetLife Mid Cap Stock Index Sub-Account 07/02/2001 to 12/31/2001..................... 1.042674 1.017616 0 01/01/2002 to 12/31/2002..................... 1.017616 0.845053 0 01/01/2003 to 12/31/2003..................... 0.845053 1.112298 4,265 01/01/2004 to 12/31/2004..................... 1.112298 1.259075 20,790 01/01/2005 to 12/31/2005..................... 1.259075 1.379828 19,161 01/01/2006 to 12/31/2006..................... 1.379828 1.482519 18,224 01/01/2007 to 12/31/2007..................... 1.482519 1.559085 14,275 01/01/2008 to 12/31/2008..................... 1.559085 0.970241 14,832 MetLife Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005..................... 9.998192 10.690928 6,536 01/01/2006 to 12/31/2006..................... 10.690928 11.697181 7,271 01/01/2007 to 12/31/2007..................... 11.697181 11.938556 11,246 01/01/2008 to 12/31/2008..................... 11.938556 8.334120 12,898 MetLife Moderate to Aggressive Allocation Sub- Account 05/01/2005 to 12/31/2005..................... 9.998192 10.915585 0 01/01/2006 to 12/31/2006..................... 10.915585 12.196813 1,764 01/01/2007 to 12/31/2007..................... 12.196813 12.389279 1,754 01/01/2008 to 12/31/2008..................... 12.389279 7.863050 10,495 MetLife Stock Index Sub-Account 07/02/2001 to 12/31/2001..................... 3.462513 3.194852 0 01/01/2002 to 12/31/2002..................... 3.194852 2.421545 0 01/01/2003 to 12/31/2003..................... 2.421545 3.029154 16,316 01/01/2004 to 12/31/2004..................... 3.029154 3.267648 14,357 01/01/2005 to 12/31/2005..................... 3.267648 3.336629 30,642 01/01/2006 to 12/31/2006..................... 3.336629 3.759933 24,327 01/01/2007 to 12/31/2007..................... 3.759933 3.860633 13,014 01/01/2008 to 12/31/2008..................... 3.860633 2.369252 13,241 MFS(R) Investors Trust Sub-Account (Class B)(11) 05/01/2004 to 12/31/2004..................... 7.387943 8.146489 0 01/01/2005 to 12/31/2005..................... 8.146489 8.519782 0 01/01/2006 to 04/30/2006..................... 8.519782 8.881372 0 MFS(R) Investors Trust Sub-Account (Class E)(11) 07/02/2001 to 12/31/2001..................... 0.879356 0.811953 0 01/01/2002 to 12/31/2002..................... 0.811953 0.633499 0 01/01/2003 to 12/31/2003..................... 0.633499 0.752961 0 01/01/2004 to 12/31/2004..................... 0.752961 0.819602 42,721 01/01/2005 to 12/31/2005..................... 0.819602 0.858858 42,576 01/01/2006 to 04/30/2006..................... 0.858858 0.895600 0
A-123
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ MFS(R) Investors Trust Sub-Account(2)(11) (previously MFS(R) Research Managers Sub- Account) 07/02/2001 to 12/31/2001..................... 0.959338 0.857483 0 01/01/2002 to 12/31/2002..................... 0.857483 0.635762 0 01/01/2003 to 12/31/2003..................... 0.635762 0.770684 43,623 01/01/2004 to 04/30/2004..................... 0.770684 0.782576 44,505 MFS(R) Research International Sub-Account 07/02/2001 to 12/31/2001..................... 0.913249 0.832273 0 01/01/2002 to 12/31/2002..................... 0.832273 0.718052 0 01/01/2003 to 12/31/2003..................... 0.718052 0.927567 0 01/01/2004 to 12/31/2004..................... 0.927567 1.084809 46,809 01/01/2005 to 12/31/2005..................... 1.084809 1.235559 47,864 01/01/2006 to 12/31/2006..................... 1.235559 1.529838 60,678 01/01/2007 to 12/31/2007..................... 1.529838 1.695257 93,603 01/01/2008 to 12/31/2008..................... 1.695257 0.955712 32,991 MFS(R) Total Return Sub-Account 05/01/2004 to 12/31/2004..................... 3.208595 3.470400 26,448 01/01/2005 to 12/31/2005..................... 3.470400 3.491885 39,232 01/01/2006 to 12/31/2006..................... 3.491885 3.823770 39,866 01/01/2007 to 12/31/2007..................... 3.823770 3.894126 21,438 01/01/2008 to 12/31/2008..................... 3.894126 2.957847 19,407 MFS(R) Value Sub-Account (Class B) (formerly Harris Oakmark Large Cap Value Sub-Account (Class B))(8)(16) 05/01/2004 to 12/31/2004..................... 1.161353 1.246630 19,747 01/01/2005 to 12/31/2005..................... 1.246630 1.199452 100,954 01/01/2006 to 12/31/2006..................... 1.199452 1.382742 80,480 01/01/2007 to 12/31/2007..................... 1.382742 1.298036 78,045 01/01/2008 to 12/31/2008..................... 1.298036 0.841760 59,629 MFS(R) Value Sub-Account (Class E) (formerly Harris Oakmark Large Cap Value Sub-Account (Class E))(9)(16) 05/01/2002 to 12/31/2002..................... 1.151561 0.939474 0 01/01/2003 to 12/31/2003..................... 0.939474 1.151927 7,851 01/01/2004 to 12/31/2004..................... 1.151927 1.254021 17,337 01/01/2005 to 12/31/2005..................... 1.254021 1.207886 34,074 01/01/2006 to 12/31/2006..................... 1.207886 1.393585 12,219 01/01/2007 to 12/31/2007..................... 1.393585 1.309543 12,245 01/01/2008 to 12/31/2008..................... 1.309543 0.850402 11,924 MFS(R) Total Return Sub-Account(1) (previously Balanced Sub-Account) 07/02/2001 to 12/31/2001..................... 1.421239 1.390063 0 01/01/2002 to 12/31/2002..................... 1.390063 1.173173 0 01/01/2003 to 12/31/2003..................... 1.173173 1.372962 11,508 01/01/2004 to 04/30/2004..................... 1.372962 1.357400 32,755
A-124
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ Morgan Stanley EAFE(R) Index Sub-Account 07/02/2001 to 12/31/2001..................... 0.924892 0.830391 0 01/01/2002 to 12/31/2002..................... 0.830391 0.676158 0 01/01/2003 to 12/31/2003..................... 0.676158 0.907523 147,548 01/01/2004 to 12/31/2004..................... 0.907523 1.058811 136,248 01/01/2005 to 12/31/2005..................... 1.058811 1.169793 58,486 01/01/2006 to 12/31/2006..................... 1.169793 1.435621 42,456 01/01/2007 to 12/31/2007..................... 1.435621 1.551944 171,524 01/01/2008 to 12/31/2008..................... 1.551944 0.877433 34,321 Neuberger Berman Mid Cap Value Sub-Account 07/02/2001 to 12/31/2001..................... 1.518411 1.463468 0 01/01/2002 to 12/31/2002..................... 1.463468 1.289686 0 01/01/2003 to 12/31/2003..................... 1.289686 1.717901 10,219 01/01/2004 to 12/31/2004..................... 1.717901 2.061234 20,028 01/01/2005 to 12/31/2005..................... 2.061234 2.257043 52,328 01/01/2006 to 12/31/2006..................... 2.257043 2.455307 122,970 01/01/2007 to 12/31/2007..................... 2.455307 2.478212 58,879 01/01/2008 to 12/31/2008..................... 2.478212 1.273177 52,528 Oppenheimer Capital Appreciation Sub-Account 05/01/2005 to 12/31/2005..................... 7.683859 8.299136 0 01/01/2006 to 12/31/2006..................... 8.299136 8.737359 1,780 01/01/2007 to 12/31/2007..................... 8.737359 9.767408 2,227 01/01/2008 to 12/31/2008..................... 9.767408 5.164859 2,531 Oppenheimer Global Equity Sub-Account 05/01/2004 to 12/31/2004..................... 12.041673 13.816953 531 01/01/2005 to 12/31/2005..................... 13.816953 15.677143 717 01/01/2006 to 12/31/2006..................... 15.677143 17.844741 1,714 01/01/2007 to 12/31/2007..................... 17.844741 18.547315 2,325 01/01/2008 to 12/31/2008..................... 18.547315 10.784023 2,383 PIMCO Inflation Protection Bond Sub-Account 05/01/2006 to 12/31/2006..................... 10.734463 10.782032 0 01/01/2007 to 12/31/2007..................... 10.782032 11.684976 0 01/01/2008 to 12/31/2008..................... 11.684976 10.642558 16,757 PIMCO Total Return Sub-Account 07/02/2001 to 12/31/2001..................... 1.004489 1.046322 0 01/01/2002 to 12/31/2002..................... 1.046322 1.118684 0 01/01/2003 to 12/31/2003..................... 1.118684 1.141461 223,531 01/01/2004 to 12/31/2004..................... 1.141461 1.172170 85,090 01/01/2005 to 12/31/2005..................... 1.172170 1.172506 137,039 01/01/2006 to 12/31/2006..................... 1.172506 1.198883 267,777 01/01/2007 to 12/31/2007..................... 1.198883 1.261366 117,354 01/01/2008 to 12/31/2008..................... 1.261366 1.238905 73,469
A-125
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ RCM Technology Sub-Account 07/02/2001 to 12/31/2001..................... 0.755554 0.605074 0 01/01/2002 to 12/31/2002..................... 0.605074 0.291611 0 01/01/2003 to 12/31/2003..................... 0.291611 0.449510 9,828 01/01/2004 to 12/31/2004..................... 0.449510 0.420740 28,663 01/01/2005 to 12/31/2005..................... 0.420740 0.456953 80,524 01/01/2006 to 12/31/2006..................... 0.456953 0.470936 80,885 01/01/2007 to 12/31/2007..................... 0.470936 0.605850 78,721 01/01/2008 to 12/31/2008..................... 0.605850 0.329184 86,392 Russell 2000(R) Index Sub-Account 07/02/2001 to 12/31/2001..................... 1.192679 1.155042 0 01/01/2002 to 12/31/2002..................... 1.155042 0.896925 0 01/01/2003 to 12/31/2003..................... 0.896925 1.278525 71,775 01/01/2004 to 12/31/2004..................... 1.278525 1.468279 21,158 01/01/2005 to 12/31/2005..................... 1.468279 1.498195 31,590 01/01/2006 to 12/31/2006..................... 1.498195 1.723354 28,040 01/01/2007 to 12/31/2007..................... 1.723354 1.656911 7,796 01/01/2008 to 12/31/2008..................... 1.656911 1.074995 8,776 SSgA Growth and Income ETF Sub-Account (formerly Cyclical Growth and Income ETF Sub- Account)(14) 05/01/2006 to 12/31/2006..................... 10.464513 11.050225 0 01/01/2007 to 12/31/2007..................... 11.050225 11.392034 0 01/01/2008 to 12/31/2008..................... 11.392034 8.350805 0 SSgA Growth ETF Sub-Account (formerly Cyclical Growth ETF Sub-Account)(14) 05/01/2006 to 12/31/2006..................... 10.654502 11.302506 0 01/01/2007 to 12/31/2007..................... 11.302506 11.676430 0 01/01/2008 to 12/31/2008..................... 11.676430 7.655988 0 T. Rowe Price Large Cap Growth Sub-Account 05/01/2004 to 12/31/2004..................... 1.068742 1.151983 74,148 01/01/2005 to 12/31/2005..................... 1.151983 1.198298 164,172 01/01/2006 to 12/31/2006..................... 1.198298 1.323311 136,323 01/01/2007 to 12/31/2007..................... 1.323311 1.412816 121,079 01/01/2008 to 12/31/2008..................... 1.412816 0.801498 71,794 T. Rowe Price Mid Cap Growth Sub-Account 07/02/2001 to 12/31/2001..................... 0.928116 0.817928 0 01/01/2002 to 12/31/2002..................... 0.817928 0.447775 0 01/01/2003 to 12/31/2003..................... 0.447775 0.598533 18,187 01/01/2004 to 12/31/2004..................... 0.598533 0.689830 53,659 01/01/2005 to 12/31/2005..................... 0.689830 0.773575 123,804 01/01/2006 to 12/31/2006..................... 0.773575 0.803434 198,600 01/01/2007 to 12/31/2007..................... 0.803434 0.924469 151,514 01/01/2008 to 12/31/2008..................... 0.924469 0.544831 195,827
A-126
2.20% VARIABLE ACCOUNT CHARGE ---------------------------------------------- ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF END OF PERIOD PERIOD PERIOD ------------- ------------- ------------ T. Rowe Price Small Cap Growth Sub-Account 05/01/2004 to 12/31/2004..................... 1.169074 1.239772 1,741 01/01/2005 to 12/31/2005..................... 1.239772 1.342839 20,354 01/01/2006 to 12/31/2006..................... 1.342839 1.361357 20,388 01/01/2007 to 12/31/2007..................... 1.361357 1.458512 25,172 01/01/2008 to 12/31/2008..................... 1.458512 0.908519 20,676 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004..................... 1.729072 1.823352 58,188 01/01/2005 to 12/31/2005..................... 1.823352 1.829480 79,943 01/01/2006 to 12/31/2006..................... 1.829480 1.876140 81,591 01/01/2007 to 12/31/2007..................... 1.876140 1.903070 78,541 01/01/2008 to 12/31/2008..................... 1.903070 1.578157 60,980 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(9) 07/02/2001 to 12/31/2001..................... 1.472110 1.500176 0 01/01/2002 to 12/31/2002..................... 1.500176 1.604940 0 01/01/2003 to 12/31/2003..................... 1.604940 1.766219 75,351 01/01/2004 to 12/31/2004..................... 1.766219 1.839586 240,453 01/01/2005 to 12/31/2005..................... 1.839586 1.847755 105,213 01/01/2006 to 12/31/2006..................... 1.847755 1.895417 92,336 01/01/2007 to 12/31/2007..................... 1.895417 1.926046 78,534 01/01/2008 to 12/31/2008..................... 1.926046 1.599266 84,827 Western Asset Management U.S. Government Sub- Account (Class B)(8) 05/01/2004 to 12/31/2004..................... 1.429154 1.455487 92,386 01/01/2005 to 12/31/2005..................... 1.455487 1.443706 106,848 01/01/2006 to 12/31/2006..................... 1.443706 1.467668 119,206 01/01/2007 to 12/31/2007..................... 1.467668 1.493466 100,290 01/01/2008 to 12/31/2008..................... 1.493466 1.453107 75,312 Western Asset Management U.S. Government Sub- Account (Class E)(9) 07/02/2001 to 12/31/2001..................... 1.359892 1.395183 0 01/01/2002 to 12/31/2002..................... 1.395183 1.468876 0 01/01/2003 to 12/31/2003..................... 1.468876 1.459159 50,616 01/01/2004 to 12/31/2004..................... 1.459159 1.467362 50,495 01/01/2005 to 12/31/2005..................... 1.467362 1.458193 50,732 01/01/2006 to 12/31/2006..................... 1.458193 1.483254 49,798 01/01/2007 to 12/31/2007..................... 1.483254 1.510762 23,541 01/01/2008 to 12/31/2008..................... 1.510762 1.471474 51,798
A-127
2.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD ------------- ------------- -------------- American Forerunner -- 2.45 American Funds Bond Sub-Account 05/01/2006 to 12/31/2006..................... 13.487687 14.059508 1,910 01/01/2007 to 12/31/2007..................... 14.059508 14.174025 1,840 01/01/2008 to 12/31/2008..................... 14.174025 12.537127 1,815 American Funds Global Small Capitalization Sub- Account 07/02/2001 to 12/31/2001..................... 1.419743 1.303641 0 01/01/2002 to 12/31/2002..................... 1.303641 1.029696 0 01/01/2003 to 12/31/2003..................... 1.029696 1.542665 14,945 01/01/2004 to 12/31/2004..................... 1.542665 1.819557 48,160 01/01/2005 to 12/31/2005..................... 1.819557 2.225825 85,288 01/01/2006 to 12/31/2006..................... 2.225825 2.694580 216,540 01/01/2007 to 12/31/2007..................... 2.694580 3.192383 181,882 01/01/2008 to 12/31/2008..................... 3.192383 1.447669 176,492 American Funds Growth Sub-Account 07/02/2001 to 12/31/2001..................... 10.817061 9.515212 0 01/01/2002 to 12/31/2002..................... 9.515212 7.014065 0 01/01/2003 to 12/31/2003..................... 7.014065 9.363770 22,664 01/01/2004 to 12/31/2004..................... 9.363770 10.278365 34,426 01/01/2005 to 12/31/2005..................... 10.278365 11.654464 44,902 01/01/2006 to 12/31/2006..................... 11.654464 12.535213 55,219 01/01/2007 to 12/31/2007..................... 12.535213 13.740443 33,497 01/01/2008 to 12/31/2008..................... 13.740443 7.511376 28,438 American Funds Growth-Income Sub-Account 07/02/2001 to 12/31/2001..................... 7.330458 7.077669 0 01/01/2002 to 12/31/2002..................... 7.077669 5.639330 0 01/01/2003 to 12/31/2003..................... 5.639330 7.287395 31,896 01/01/2004 to 12/31/2004..................... 7.287395 7.848266 46,116 01/01/2005 to 12/31/2005..................... 7.848266 8.105542 56,352 01/01/2006 to 12/31/2006..................... 8.105542 9.112476 46,484 01/01/2007 to 12/31/2007..................... 9.112476 9.339095 45,419 01/01/2008 to 12/31/2008..................... 9.339095 5.663246 40,734
-------- (1) Previously, the Balanced Sub-Account. On April 30, 2004, the Balanced Portfolio that had been offered as an Eligible Fund through that date, merged with and into the MFS Total Return Portfolio. Information shown for the MFS Total Return Sub-Account reflects the unit value history of the Balanced Sub-Account through the date of the merger. (2) Previously, the MFS Research Managers Sub-Account. On April 30, 2004, the MFS Research Managers Portfolio that had been offered as an Eligible Fund through that date, merged with and into the MFS Investors Trust Portfolio. On April 28, 2006, the MFS Investors Trust Portfolio merged into the Legg Mason Value Equity Portfolio. Information shown for the Legg Mason Value Equity Sub-Account reflects the unit value history of the MFS Research Managers Sub-Account through the date of the April 30, 2004 merger. A-128 (3) Previously, the Janus Mid Cap Sub-Account. On April 30, 2004, the FI Mid Cap Opportunities Portfolio that had been offered as an Eligible Fund through that date, merged with and into the Janus Mid Cap Portfolio and immediately following the merger, the Janus Mid Cap Portfolio was renamed the FI Mid Cap Opportunities Portfolio. Information shown for the FI Mid Cap Opportunities Sub-Account (formerly the Janus Mid Cap Sub-Account) reflects the unit value history of the Janus Mid Cap Sub-Account through the date of the merger. (4) Previously, the FI Mid Cap Opportunities Sub-Account. On April 30, 2004, the FI Mid Cap Opportunities Portfolio that had been offered as an Eligible Fund through that date, merged with and into the Janus Mid Cap Portfolio and immediately following the merger, the Janus Mid Cap Portfolio was renamed the FI Mid Cap Opportunities Portfolio. Information shown reflects the unit value history of the FI Mid Cap Opportunities Portfolio Sub- Account. (5) Previously, the Janus Growth Sub-Account. On April 28, 2003, the Janus Growth Portfolio that had been offered as an Eligible Fund through that date, merged with and into the Janus Aggressive Growth Portfolio. Information shown for the Janus Aggressive Growth Sub-Account is based on the May 1, 2001 inception date of the Janus Growth Sub-Account and reflects the unit value history of the Janus Growth Sub-Account through the date of the merger. (6) The Harris Oakmark International Portfolio Class B shares are only available under Contracts issued on or after May 1, 2003. (7) The Harris Oakmark International Portfolio Class E shares are only available under Contracts issued prior to May 1, 2003. (8) BlackRock Large Cap Value, BlackRock Legacy Large Cap Growth, BlackRock Strategic Value, Davis Venture Value, FI International Stock, FI Value Leaders, Harris Oakmark Focused Value, Harris Oakmark Large Cap Value, Jennison Growth, Loomis Sayles Small Cap, Western Asset Management Strategic Bond Opportunities and Western Asset Management U.S. Government Portfolios Class B shares are only available under Contracts issued on or after May 1, 2004. (9) BlackRock Large Cap Value, BlackRock Legacy Large Cap Growth, BlackRock Strategic Value, Davis Venture Value, FI International Stock, FI Value Leaders, Harris Oakmark Focused Value, Harris Oakmark Large Cap Value, Jennison Growth, Loomis Sayles Small Cap, Western Asset Management Strategic Bond Opportunities and Western Asset Management U.S. Government Portfolios Class E shares are only available under Contracts issued prior to May 1, 2004. (10) Previously, the Met/Putnam Voyager Sub-Account. On April 29, 2005, the Met/Putnam Voyager Portfolio that had been offered as an Eligible Fund up through that date, merged with and into the Jennison Growth Portfolio. Information shown for the Jennison Growth Sub-Account (formerly the Met/Putnam Voyager Sub-Account) reflects the unit value history of the Met/Putnam Voyager Sub-Account through the date of the merger. (11) Previously the MFS Investors Trust Sub-Account. On April 28, 2006, the MFS Investors Trust Portfolio that had been offered as an Eligible Fund up through that date, merged with and into the Legg Mason Value Equity Portfolio. Information shown for the Legg Mason Value Equity Sub-Account (formerly the MFS Investors Trust Sub-Account) reflects the unit value history of the MFS Investors Sub-Account through the date of the merger. (12) Effective October 2, 2006, BlackRock Investment Trust Portfolio changed its name to BlackRock Large Cap Portfolio. On or about April 30, 2007, BlackRock Large Cap Portfolio merged into BlackRock Large-Cap Core Portfolio. (13) Effective October 1, 2006, Janus Aggressive Growth Portfolio changed its name to Legg Mason Aggressive Growth Portfolio. Effective April 30, 2007, Legg Mason Aggressive Growth Portfolio changed its name to Legg Mason Partners Aggressive Growth Portfolio. (14) On September 2, 2008, Cyclical Growth and Income ETF Portfolio changed its name to SSgA Growth and Income ETF and Cyclical Growth ETF Portfolio changed its name to SSgA Growth ETF Portfolio. (15) On January 7, 2008, FI International Stock Portfolio changed its name to Julius Baer International Stock Portfolio. (16) On January 7, 2008, Harris Oakmark Large Cap Value Portfolio changed its name to MFS(R) Value Portfolio. (17) On April 28, 2008, Neuberger Berman Real Estate Portfolio changed its name to Clarion Global Real Estate Portfolio. A-129 APPENDIX A CONSUMER TIPS DOLLAR COST AVERAGING Dollar cost averaging allows you to take advantage of long-term stock market results. It does not guarantee a profit or protect against a loss. If you follow a program of dollar cost averaging on a long-term basis and the stock fund selected performs at least as well as the S&P 500 has historically, it is likely although not guaranteed that the price at which shares are withdrawn will be higher than the average cost per share. Under dollar cost averaging you invest the same amount of money in the same professionally managed fund at regular intervals over a long period of time. Dollar cost averaging keeps you from investing too much when the price of shares is high and too little when the price is low. When the price of shares is low, the money invested buys more shares. When it is high, the money invested buys fewer shares. If you have the ability and desire to maintain this program over a long period of time (for example, 20 years), and the stock fund chosen follows the historical upward market trends, the price at which the shares are sold should be higher than their average cost. The price could be lower, however, if the fund chosen does not follow these historical trends. If you are contemplating the use of dollar cost averaging, you should consider your ability to continue the on-going purchases in order to take advantage of periods of low price levels. DIVERSIFICATION Diversifying investment choices can enhance returns, by providing a wider opportunity for safe returns, and reduce risks, by spreading the chance of loss. Holding a single investment requires a safe return because a loss may risk the entire investment. By diversifying, on the other hand, you can more safely take a chance that some investments will under-perform and that others will over- perform. Thus you can potentially earn a better-than-average rate of return on a diversified portfolio than on a single safe investment. This is because, although some of a diversified investment may be totally lost, some of the investment may perform at above-average rates that more than compensate for the loss. MISCELLANEOUS Toll-free telephone service: --A recording of daily unit values is available by calling 1-800-333-2501. --Fund transfers, address changes and changes of future purchase payment allocations can be made by calling 1- 800-435-4117. Written Communications: --All communications and inquiries regarding address changes, premium payments, billing, fund transfers, withdrawals, maturities and any other processing matters relating to your Contract should be directed to: New England Life Insurance Company c/o Annuity Administrative Office P.O. Box 14594 Des Moines, IA 50306-3594 fax: (515) 457-4301 Internet Communications: --Fund transfers and future allocations can be made at www.nef.com
A-130 APPENDIX B WITHDRAWAL CHARGE The following example illustrates how the Withdrawal Charge would apply if the commuted value of amounts that have been placed under certain payment options is later withdrawn. As described in the prospectus in the section "Withdrawal Charge," no Withdrawal Charge will apply for any Class of the Contract if at any time more than 30 days from the time we issued your Contract you apply the proceeds to a variable or fixed payment option involving a life contingency or, for a minimum specified period of 15 years, to either the Variable Income for a Specified Number of Years Option or the Variable Income Payments to Age 100 Option, or a comparable fixed option. However, if you later withdraw the commuted value of amounts placed under the variable payment options, we will deduct from the amount you receive a portion of the Withdrawal Charge for your Contract Class that was waived. Amounts applied to a fixed payment option may not be commuted. We base the waiver on the ratio of: (1) the number of whole months remaining on the date of withdrawal until the date when the Withdrawal Charge for your Contract Class would expire, to (2) the number of whole months that were remaining when you applied the proceeds to the option, until the date when the Withdrawal Charge for your Contract Class would expire. As an example, assume that you apply $100,000 of Contract Value on a Standard Class Contract (net of any premium tax charge and Contract Administrative fee to the Variable Income for a Specified Number of Years Option for a 20 year period. Assume further that the proceeds are derived from a $30,000 purchase payment made ten years ago, a $30,000 purchase payment made exactly two years ago, and investment earnings, and that the Withdrawal Charge waived when you applied the proceeds to the payment option was $1,620. If the Payee surrenders the commuted value of the proceeds under option six months later, the Withdrawal Charge would be $1,458 (representing the $1,620 waived at annuitization multiplied by 54/60, where 54 is the number of whole months currently remaining until the Withdrawal Charge would expire, and 60 is the number of whole months that remained at the time of annuitization until the Withdrawal Charge would expire). We calculate this amount in the same manner for each Class of Contract that imposes a Withdrawal Charge, using the Withdrawal Charge percentage applicable to that Class. A-131 APPENDIX C PREMIUM TAX Premium tax rates are subject to change. At present we pay premium taxes in the following jurisdictions at the rates shown.
CONTRACTS USED WITH TAX JURISDICTION QUALIFIED RETIREMENT PLANS ALL OTHER CONTRACTS ------------ -------------------------- ------------------- California 0.50%(1) 2.35% Florida 1.00%(2) 1.00%(2) Maine -- 2.00% Nevada -- 3.50% South Dakota -- 1.25% West Virginia 1.00%(3) 1.00%(3) Wyoming -- 1.00% Puerto Rico 1.00% 1.00%
------- (1) Contracts sold to sec.408(a) IRA Trusts are taxed at 2.35%. (2) Annuity Premiums are exempt from taxation provided that the tax savings are passed back to the Contract holders. Otherwise they are taxable at 1.00%. (3) A special rate applies for large case annuity policies. The special rate is 8/100 of 1% for that portion of the annuity considerations received on a Contract exceeding $500,000 annually. The special rate is not subject to retaliation. See "Premium Tax Charges" in the prospectus for more information about how premium taxes affect your Contract. A-132 APPENDIX D GUARANTEED MINIMUM INCOME BENEFIT (GMIB) EXAMPLES The purpose of these examples is to illustrate the operation of the GMIB. 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 investment allocation made by a Contract Owner and the investment experience of the Eligible Funds. The examples do not reflect the deduction of fees and charges. The purpose of these examples is to illustrate the operation of the Guaranteed Minimum Income Benefit (GMIB). (Unless otherwise noted, these examples are for the GMIB Plus II rider.) 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 investment allocations and the investment experience of the investment portfolios chosen. THE EXAMPLES DO NOT REFLECT THE DEDUCTION OF FEES AND CHARGES, WITHDRAWAL CHARGES OR INCOME TAXES OR TAX PENALTIES. (1) Withdrawal Adjustments to Annual Increase Amount Dollar-for-dollar adjustment when withdrawal is less than or equal to 5% of the Annual Increase Amount from the prior Contract Anniversary Assume the initial purchase payment is $100,000 and the GMIB Plus II is selected. Assume that during the first Contract Year, $5,000 is withdrawn. Because the withdrawal is less than or equal to 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced by the withdrawal on a dollar-for-dollar basis to $100,000 ($100,000 increased by 5% per year, compounded annually, less $5,000 = $100,000). Assuming no other purchase payments or withdrawals are made before the second Contract Anniversary, the Annual Increase Amount at the second Contract Anniversary will be $105,000 ($100,000 increased by 5% per year, compounded annually). Proportionate adjustment when withdrawal is greater than 5% of the Annual Increase Amount from the prior Contract Anniversary Assume the initial purchase payment is $100,000 and the GMIB Plus II is selected. Assume the Contract Value at the first Contract Anniversary is $100,000. The Annual Increase Amount at the first Contract Anniversary will be $105,000 ($100,000 increased by 5% per year, compounded annually). Assume that on the first Contract Anniversary, $10,000 is withdrawn (leaving a Contract Value of $90,000). Because the withdrawal is greater than 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced by the value of the Annual Increase Amount immediately prior to the withdrawal ($105,000) multiplied by the percentage reduction in the Contract Value attributed to that entire withdrawal (10%). Therefore, the new Annual Increase Amount is $94,500 ($105,000 x 10% = $10,500; $105,000 -- $10,500 = $94,500). (If multiple withdrawals are made during a Contract Year -- for example, two $5,000 withdrawals instead of one $10,000 withdrawal -- and those withdrawals total more than 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced proportionately by each of the withdrawals made during that Contract Year and there will be no dollar-for-dollar withdrawal adjustment for the Contract Year.) Assuming no other purchase payments or withdrawals are made before the second Contract Anniversary, the Annual Increase Amount at the second Contract Anniversary will be $99,225 ($94,500 increased by 5% per year, compounded annually). (Based on the date a Contract was issued with the GMIB Plus II rider or the GMIB Plus I rider, the annual increase rate may be higher than 5%. See "Living Benefits -- Guaranteed Income Benefits.") (2) The 5% Annual Increase Amount Example Assume the Owner of the Contract is a male, age 55 at issue, and he elects the GMIB Plus II rider. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the Contract issue date, the 5% Annual Increase Amount is equal to $100,000 (the initial purchase payment). The 5% Annual Increase Amount is calculated at each Contract Anniversary (through the Contract Anniversary prior to the Owner's 91st birthday). At the tenth Contract Anniversary, when the Owner is age 65, the 5% Annual Increase Amount is $162,889 ($100,000 increased by 5% per year, compounded annually). See section (3) below for an example of the calculation of the Highest Anniversary Value. A-133 Graphic Example: Determining a value upon which future income payments can be based Assume that you make an initial purchase payment of $100,000. Prior to annuitization, your Contract Value fluctuates above and below your initial purchase payment depending on the investment performance of the investment options you selected. Your purchase payments accumulate at the annual increase rate of 5%, until the Contract Anniversary on or immediately after the Contract Owner's 90th birthday. Your purchase payments are also adjusted for any withdrawals (including any applicable withdrawal charge) made during this period. The line (your purchase payments accumulated at 5% a year adjusted for withdrawals and charges "the 5% Annual Increase Amount") is the value upon which future income payments can be based. (Time payin graph) Graphic Example: Determining your guaranteed lifetime income stream Assume that you decide to annuitize your Contract and begin taking annuity payments after 20 years. In this example, your 5% Annual Increase Amount is higher than the Highest Anniversary Value and will produce a higher income benefit. Accordingly, the 5% Annual Increase Amount will be applied to the annuity pay-out rates in the Guaranteed Minimum Income Benefit Annuity Table to determine your lifetime annuity payments. THE INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE GUARANTEED MINIMUM INCOME BENEFIT PAYMENT AND THE CHARGE FOR THE BENEFIT. (time pay-in out graph) (In contrast to the GMIB Plus II rider, for the GMIB II rider, purchase payments accumulate at the annual increase rate of 5% until the Contract Anniversary on or immediately after the Contract Owner's 85th birthday.) (3) The "Highest Anniversary Value" ("HAV") Example Assume, as in the example in section (2) above, the Owner of the Contract is a male, age 55 at issue, and he elects the GMIB Plus II rider. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the Contract issue date, the Highest Anniversary Value is equal to $100,000 (the initial purchase payment). Assume the Contract Value on the first Contract Anniversary is $108,000 due to A-134 good market performance. Because the Contract Value is greater than the Highest Anniversary Value ($100,000), the Highest Anniversary Value is set equal to the Contract Value ($108,000). Assume the Contract Value on the second Contract Anniversary is $102,000 due to poor market performance. Because the Contract Value is less than the Highest Anniversary Value ($108,000), the Highest Anniversary Value remains $108,000. Assume this process is repeated on each Contract Anniversary until the tenth Contract Anniversary, when the Contract Value is $155,000 and the Highest Anniversary Value is $150,000. The Highest Anniversary Value is set equal to the Contract Value ($155,000). See section (4) below for an example of the exercise of the GMIB Plus II rider. Graphic Example: Determining a value upon which future income payments can be based Prior to annuitization, the Highest Anniversary Value begins to lock in growth. The Highest Anniversary Value is adjusted upward each Contract Anniversary if the Contract Value at that time is greater than the amount of the current Highest Anniversary Value. Upward adjustments will continue until the Contract Anniversary immediately prior to the Contract Owner's 81st birthday. The Highest Anniversary Value also is adjusted for any withdrawals taken (including any applicable withdrawal charge) or any additional payments made. The Highest Anniversary Value line is the value upon which future income payments can be based. (time pay in graph) Determining your guaranteed lifetime income stream Assume that you decide to annuitize your Contract and begin taking annuity payments after 20 years. In this example, the Highest Anniversary Value is higher than the Contract Value. Accordingly, the Highest Anniversary Value will be applied to the annuity payout rates in the GMIB Annuity Table to determine your lifetime annuity A-135 payments. The Income Base is not available for cash withdrawals and is only used for purposes of calculating the GMIB Payment and the rider charge. (time pay in out graph) (4) Putting it all together Example Continuing the examples in sections (2) and (3) above, assume the Owner chooses to exercise the GMIB Plus II rider at the tenth Contract Anniversary and elects a life annuity with 10 years of annuity payments guaranteed. Because the 5% Annual Increase Amount ($162,889) is greater than the Highest Anniversary Value ($155,000), the 5% Annual Increase Amount ($162,889) is used as the Income Base. The Income Base of $162,889 is applied to the GMIB Annuity Table. This yields annuity payments of $591 per month for life, with a minimum of 10 years guaranteed. (If the same Owner were instead age 70, the Income Base of $162,889 would yield monthly payments of $673; if the Owner were age 75, the Income Base of $162,889 would yield monthly payments of $785.) The above example does not take into account the impact of premium and other taxes. As with other pay-out types, the amount you receive as an income payment depends on your age, sex (where permitted by law), and the income type you select. THE INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE GUARANTEED MINIMUM INCOME BENEFIT PAYMENT AND THE CHARGE FOR THE BENEFIT. Graphic Example Prior to annuitization, the two calculations (the 5% Annual Increase Amount and the Highest Anniversary Value) work together to protect your future income. Upon annuitization of the Contract, you will receive income payments for life and the Income Bases and the Contract Value will cease to exist. Also, the GMIB Plus II may only be exercised no later than the Contract Anniversary on or following the Contract Owner's 90th birthday, after a 10-year waiting period, and then only within a 30-day period following the Contract Anniversary. (The GMIB II may only be exercised no later than the Contract Anniversary on or following the Contract Owner's 85th birthday, after a 10-year waiting period, and then only within a 30- day period following the Contract Anniversary.) A-136 (time pay in GRAPH) With the Guaranteed Minimum Income Benefit, the Income Base is applied to special, conservative Guaranteed Minimum Income Benefit annuity purchase factors, which are guaranteed at the time the Contract is issued. However, if then-current annuity purchase factors applied to the Contract Value would produce a greater amount of income, then you will receive the greater amount. In other words, when you annuitize your Contract you will receive whatever amount produces the greatest income payment. Therefore, if your Contract Value would provide greater income than would the amount provided under the Guaranteed Minimum Income Benefit, you will have paid for the Guaranteed Minimum Income Benefit although it was never used. (time pay inout GRAPH) (5) The Guaranteed Principal Option--GMIB Plus I and GMIB Plus II Initial Investment is $100,000. Assume that no withdrawals are taken. Assume that Contract Value at the 10th Contract Anniversary is $50,000 due to poor market performance, and you exercise the Guaranteed Principal Option at this time. A-137 The effect of exercising the Guaranteed Principal Option: 1) A Guaranteed Principal Adjustment of $100,000 -- $50,000 = $50,000 is added to the Contract Value 30 days after the 10(th) Contract Anniversary bringing it back up to $100,000. 2) The GMIB Plus rider and rider fee terminates as of the date that the Adjustment is made to the Contract Value; the variable annuity contract continues. 3) GMIB Plus Allocation and Transfer restrictions terminate as of the date that the Adjustment is made to the Contract Value. (GRAPH) ------- * Withdrawals reduce the original purchase payment (i.e. those payments credited within 120 days of contract issue date) proportionately and therefore, may have a significant impact on the amount of the Guaranteed Principal Option. (6) The Optional Reset: Automatic Annual Step-Up -- GMIB Plus II Assume your initial investment is $100,000 and no withdrawals are taken. The 5% Annual Increase Amount increases to $105,000 on the first anniversary ($100,000 increased by 5% per year, compounded annually). Assume your Contract Value at the first Contract Anniversary is $110,000 due to good market performance, and you elected Optional Resets to occur under the Automatic Annual Step-Up feature prior to the first Contract Anniversary. Because your Contract Value is higher than your 5% Annual Increase Amount, an Optional Reset will automatically occur. The effect of the Optional Reset is: (1) The 5% Annual Increase Amount automatically resets from $105,000 to $110,000; (2) The 10-year waiting period to annuitize the Contract under the Guaranteed Minimum Income Benefit is reset to 10 years from the first Contract Anniversary; (3) The GMIB Plus II rider charge is reset to the fee we charge new Contract Owners for the same GMIB Plus II rider at that time; and (4) The Guaranteed Principal Option can still be elected on the 10th Contract Anniversary. The 5% Annual Increase Amount increases to $115,500 on the second anniversary ($110,000 increased by 5% per year, compounded annually). Assume your Contract Value at the second Contract Anniversary is $120,000 due to good market performance, and you have not discontinued the Automatic Annual Step-Up feature. Because your Contract Value is higher than your 5% Annual Increase Amount, an Optional Reset will automatically occur. The effect of the Optional Reset is: (1) The 5% Annual Increase Amount automatically resets from $115,500 to $120,000; (2) The 10-year waiting period to annuitize the Contract under the Guaranteed Minimum Income Benefit is reset to 10 years from the second Contract Anniversary; (3) The GMIB Plus II rider charge is reset to the fee we charge new Contract Owners for the same GMIB Plus II rider at that time; and (4) The Guaranteed Principal Option can still be elected on the 10th Contract Anniversary. A-138 Assume your Contract Value increases by $10,000 at each Contract Anniversary in years three through seven. At each Contract Anniversary, your Contract Value would exceed the 5% Annual Increase Amount and an Optional Reset would automatically occur (provided you had not discontinued the Automatic Annual Step-Up feature, and other requirements were met). The effect of each Optional Reset is: (1) The 5% Annual Increase Amount automatically resets to the higher Contract Value; (2) The 10-year waiting period to annuitize the Contract under the Guaranteed Minimum Income Benefit is reset to 10 years from the date of the Optional Reset; (3) The GMIB Plus II rider charge is reset to the fee we charge new Contract Owners for the same GMIB Plus II rider at that time; and (4) The Guaranteed Principal Option can still be elected on the 10th Contract Anniversary. After the seventh Contract Anniversary, the initial Automatic Annual Step- Up election expires. Assume you do not make a new election of the Automatic Annual Step-Up. The 5% Annual Increase Amount increases to $178,500 on the eighth anniversary ($170,000 increased by 5% per year, compounded annually). Assume your Contract Value at the eighth Contract Anniversary is $160,000 due to poor market performance. An Optional Reset is NOT permitted because your Contract Value is lower than your 5% Annual Increase Amount. However, because the Optional Reset has locked-in previous gains, the 5% Annual Increase Amount remains at $178,500 despite poor market performance, and, provided the rider continues in effect, will continue to grow at 5% annually (subject to adjustments for additional purchase payments and/or withdrawals) through the Contract Anniversary on or after your 90th birthday (for Contracts issued in New York State, the Annual Increase Amount is subject to a 270% maximum increase limitation). Also, please note: (1) The 10-year waiting period to annuitize the Contract under the Guaranteed Minimum Income Benefit remains at the 17th Contract Anniversary (10 years from the date of the last Optional Reset); (2) The GMIB Plus II rider charge remains at its current level; and (3) The Guaranteed Principal Option can still be elected on the 10th Contract Anniversary. (Graph) A-139 APPENDIX E GUARANTEED WITHDRAWAL BENEFIT EXAMPLES The purpose of these examples is to illustrate the operation of the Guaranteed Withdrawal Benefit. (Examples A, B and C are for the Lifetime Withdrawal Guarantee I and Lifetime Withdrawal Guarantee II riders. Examples D through K are for Enhanced GWB and GWB I.) 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 investment allocations and the investment experience of the investment portfolios chosen. THE EXAMPLES DO NOT REFLECT THE DEDUCTION OF FEES AND CHARGES, WITHDRAWAL CHARGES, OR INCOME TAXES OR TAX PENALTIES. The Guaranteed Withdrawal Benefit does not establish or guarantee a Contract Value or minimum return for any investment portfolio. The Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount (under the Lifetime Withdrawal Guarantee) and the Guaranteed Withdrawal Amount and the Benefit Base (under the Enhanced GWB and GWB I) cannot be taken as a lump sum. A. LIFETIME WITHDRAWAL GUARANTEE 1. WHEN WITHDRAWALS DO NOT EXCEED THE ANNUAL BENEFIT PAYMENT Assume that a Contract had an initial purchase payment of $100,000. The initial Contract Value would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 x 5%). Assume that $5,000 is withdrawn each year, beginning before the Contract Owner attains age 59 1/2. The Remaining Guaranteed Withdrawal Amount is reduced by $5,000 each year as withdrawals are taken (the Total Guaranteed Withdrawal Amount is not reduced by these withdrawals). The Annual Benefit Payment of $5,000 is guaranteed to be received until the Remaining Guaranteed Withdrawal Amount is depleted, even if the Contract Value is reduced to zero. If the first withdrawal is taken after age 59 1/2, then the Annual Benefit Payment of $5,000 is guaranteed to be received for the Owner's lifetime, even if the Remaining Guaranteed Withdrawal Amount and the Contract Value are reduced to zero. (Under the Lifetime Withdrawal Guarantee II rider, if the Contract Owner makes the first withdrawal at or after age 76, the Withdrawal Rate is 6% instead of 5% and the Annual Benefit Payment is $6,000.) (GRAPH) 2. WHEN WITHDRAWALS DO EXCEED THE ANNUAL BENEFIT PAYMENT a. Lifetime Withdrawal Guarantee II -- Proportionate Reduction Assume that a Contract with the Lifetime Withdrawal Guarantee II rider had an initial purchase payment of $100,000. The initial Contract Value would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 x 5%). (If the Contract Owner makes the first withdrawal on or after the date he A-140 or she reaches age 76, the Withdrawal Rate is 6% instead of 5% and the initial Annual Benefit Payment would be $6,000. For the purposes of this example, assume the Contract Owner makes the first withdrawal before he or she reaches age 76 and the Withdrawal Rate is therefore 5%.) Assume that the Remaining Guaranteed Withdrawal Amount is reduced to $95,000 due to a withdrawal of $5,000 in the first year. Assume the Contract Value was further reduced to $80,000 at year two due to poor market performance. If you withdrew $10,000 at this time, your Contract Value would be reduced to $80,000 -- $10,000 = $70,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $5,000, there would be a proportional reduction to the Remaining Guaranteed Withdrawal Amount and the Total Guaranteed Withdrawal Amount. The proportional reduction is equal to the withdrawal ($10,000) divided by the Contract Value before the withdrawal ($80,000), or 12.5%. The Remaining Guaranteed Withdrawal Amount after the withdrawal would be $83,125 ($95,000 reduced by 12.5%). This new Remaining Guaranteed Withdrawal Amount of $83,125 would now be the amount guaranteed to be available to be withdrawn over time. The Total Guaranteed Withdrawal Amount would be reduced to $87,500 ($100,000 reduced by 12.5%). The Annual Benefit Payment would be set equal to 5% x $87,500 = $4,375. (Assume instead that you withdrew $10,000 during year two in two separate withdrawals of $4,000 and $6,000. Since the first withdrawal of $4,000 did not exceed the Annual Benefit Payment of $5,000, there would be no proportional reduction to the Remaining Guaranteed Withdrawal Amount and the Total Guaranteed Withdrawal Amount at the time of that withdrawal. The second withdrawal ($6,000), however, results in cumulative withdrawals of $10,000 during year two and causes a proportional reduction to the Remaining Guaranteed Withdrawal Amount and the Total Guaranteed Withdrawal Amount. The proportional reduction would be equal to the entire amount of the second withdrawal ($6,000) divided by the Contract Value before that withdrawal.) b. Lifetime Withdrawal Guarantee I -- Reduction to Contract Value Assume that a Contract with the Lifetime Withdrawal Guarantee I rider had an initial purchase payment of $100,000. The initial Contract Value would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 x 5%). Assume that the Remaining Guaranteed Withdrawal Amount is reduced to $95,000 due to a withdrawal of $5,000 in the first year. Assume the Contract Value was further reduced to $75,000 at year two due to poor market performance. If you withdrew $10,000 at this time, your Contract Value would be reduced to $75,000 -- $10,000 = $65,000. Your Remaining Guaranteed Withdrawal Amount would be reduced to $95,000 -- $10,000 = $85,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $5,000 and the resulting Remaining Guaranteed Withdrawal Amount would be greater than the resulting Contract Value, there would be an additional reduction to the Remaining Guaranteed Withdrawal Amount. The Remaining Guaranteed Withdrawal Amount after the withdrawal would be set equal to the Contract Value after the withdrawal ($65,000). This new Remaining Guaranteed Withdrawal Amount of $65,000 would now be the amount guaranteed to be available to be withdrawn over time. The Total Guaranteed Withdrawal Amount would also be reduced to $65,000. The Annual Benefit Payment would be set equal to 5% x $65,000 = $3,250. B. LIFETIME WITHDRAWAL GUARANTEE -- COMPOUNDING INCOME AMOUNT (FOR ALL STATES EXCEPT NEW YORK) Assume that a Contract with the Lifetime Withdrawal Guarantee II rider had an initial purchase payment of $100,000. The initial Remaining Guaranteed Withdrawal Amount would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, and the Annual Benefit Payment would be $5,000 ($100,000 x 5%). (If the Contract Owner makes the first withdrawal at or after age 76, the Withdrawal Rate is 6% instead of 5% and the Annual Benefit Payment would be $6,000. For the purposes of this example, assume the Contract Owner makes the first withdrawal before he or she reaches age 76 and the Withdrawal Rate is therefore 5%.) The Total Guaranteed Withdrawal Amount will increase by 7.25% of the previous year's Total Guaranteed Withdrawal Amount until the earlier of the second withdrawal or the 10th Contract Anniversary. The Annual Benefit Payment will be recalculated as 5% of the new Total Guaranteed Withdrawal Amount. If the second withdrawal is taken in the first Contract Year, then there would be no increase: the Total Guaranteed Withdrawal Amount would remain at $100,000 and the Annual Benefit Payment will remain at $5,000 ($100,000 x 5%). A-141 If the second withdrawal is taken in the second Contract Year, then the Total Guaranteed Withdrawal Amount would increase to $107,250 ($100,000 x 107.25%), and the Annual Benefit Payment would increase to $5,362 ($107,250 x 5%). If the second withdrawal is taken in the third Contract Year, then the Total Guaranteed Withdrawal Amount would increase to $115,025 ($107,250 x 107.25%), and the Annual Benefit Payment would increase to $5,751 ($115,025 x 5%). If the second withdrawal is taken after the 10th Contract Year, then the Total Guaranteed Withdrawal Amount would increase to $201,360 (the initial $100,000, increased by 7.25% per year, compounded annually for 10 years), and the Annual Benefit Payment would increase to $10,068 ($201,360 x 5%). (In contrast to the Lifetime Withdrawal Guarantee II rider, the Lifetime Withdrawal Guarantee I rider has a 5% Compounding Income Amount and the Total Guaranteed Withdrawal Amount is increased by 5% on each Contract Anniversary until the earlier of the date of the first withdrawal or the tenth Contract Anniversary.) (BAR GRAPH) C. LIFETIME WITHDRAWAL GUARANTEE -- AUTOMATIC ANNUAL STEP-UPS AND 7.25% COMPOUNDING INCOME AMOUNT (NO WITHDRAWALS) Assume that a Contract with the Lifetime Withdrawal Guarantee II rider had an initial purchase payment of $100,000. Assume that no withdrawals are taken. At the first Contract Anniversary, assuming that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $107,250 ($100,000 increased by 7.25%, compounded annually). Assume the Contract Value has increased to $110,000 at the first Contract Anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $107,250 to $110,000 and reset the Annual Benefit Payment to $5,500 ($110,000 x 5%). At the second Contract Anniversary, assuming that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $117,975 ($110,000 increased by 7.25%, compounded annually). Assume the Contract Value has increased to $120,000 at the second Contract Anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $117,975 to $120,000 and reset the Annual Benefit Payment to $6,000 ($120,000 x 5%). Assuming that no withdrawals are taken, each year the Total Guaranteed Withdrawal Amount would increase by 7.25%, compounded annually, from the second Contract Anniversary through the ninth Contract Anniversary, and at that point would be equal to $195,867. Assume that during these Contract Years the account value does not exceed the Total Guaranteed Withdrawal Amount due to poor market performance. Assume the Contract Value at the ninth Contract Anniversary has increased to $200,000 due to good market performance. The Automatic Annual Step- Up will increase the Total Guaranteed Withdrawal Amount from $195,867 to $200,000 and reset the Annual Benefit Payment to $10,000 ($200,000 x 5%). At the 10th Contract Anniversary, assuming that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $214,500 ($200,000 increased by 7.25%, compounded annually). Assume the Contract Value is less than $214,500. There is no Automatic Annual Step-Up since the Contract Value is below the Total Guaranteed A-142 Withdrawal Amount; however, due to the 7.25% increase in the Total Guaranteed Withdrawal Amount, the Annual Benefit Payment is increased to $10,725 ($214,500 x 5%). D. FOR CONTRACTS ISSUED IN NEW YORK STATE: LIFETIME WITHDRAWAL GUARANTEE BENEFIT -- 6% COMPOUNDING INCOME AMOUNT Assume that a Contract owner, age 63 at issue, elected the Single Life version of the LWG II and made an initial purchase payment of $100,000. The initial Remaining Guaranteed Withdrawal Amount would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, and the Annual Benefit Payment would be $5,000 ($100,000 x 5%). (If the Contract Owner makes the first withdrawal on or after the Contract Anniversary following the date he or she reaches age 76, the Withdrawal rate is 6% instead of 5% and the initial Annual Benefit Payment would be $6,000. For purposes of the example, assume the Contract Owner makes the first withdrawal before the Contract Anniversary following the date he or she reaches age 76 and the Withdrawal Rate is therefore 5%.) The Total Guaranteed Withdrawal Amount will increase by 6% of the previous year's Total Guaranteed Withdrawal Amount until the earlier of the first withdrawal or the 5th Contract Anniversary. The Annual Benefit Payment will be recalculated as 5% of the new Total Guaranteed Withdrawal Amount. If the first withdrawal is taken in the first Contract Year then there would be no increase: the Total Guaranteed Withdrawal Amount would remain at $100,000 and the Annual Benefit Payment will remain at $5,000 ($100,000 x 5%). If the first withdrawal is taken in the second Contract Year then the Total Guaranteed Withdrawal Amount would increase to $106,000 ($100,000 x 106%), and the Annual Benefit Payment would increase to $5,300 ($106,000 x 5%). If the first withdrawal is taken in the third Contract Year then the Total Guaranteed Withdrawal Amount would increase to $112,360 ($106,000 x 106%), and the Annual Benefit Payment would increase to $5,618 ($112,360 x 5%). If the first withdrawal is taken after the 5th Contract Year then the Total Guaranteed Withdrawal Amount would increase to $133,822 (the initial $100,000, increased by 6% per year, compounded annually for 5 years), and the Annual Benefit Payment would increase to $6,691 ($133,822 x 5%). A-143 (BAR GRAPH) E. FOR CONTRACTS ISSUED IN NEW YORK STATE: LIFETIME WITHDRAWAL GUARANTEE BENEFIT -- AUTOMATIC ANNUAL STEP-UPS AND 6% COMPOUNDING INCOME AMOUNT (NO WITHDRAWALS) Assume that a Contract owner, age 63 at issue, elected the Single Life version of LWG II and made an initial purchase payment of $100,000. Assume that no withdrawals are taken. At the first Contract Anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $106,000 ($100,000 increased by 6%, compounded annually). Assume the Contract Value has increased to $110,000 at the first Contract Anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $106,000 to $110,000 and reset the Annual Benefit Payment to $5,500 ($110,000 x 5%). At the second Contract Anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $116,600 ($110,000 increased by 6%, compounded annually). Assume the Contract Value has increased to $120,000 at the second Contract Anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $116,600 to $120,000 and reset the Annual Benefit Payment to $6,000 ($120,000 x 5%). Provided that no withdrawals are taken, each year the Total Guaranteed Withdrawal Amount would increase by 6%, compounded annually, from the second Contract Anniversary through the fourth Contract Anniversary, and at that point would be equal to $134,832. Assume that during these Contract years the Contract Value does not exceed the Total Guaranteed Withdrawal Amount due to poor market performance. Assume the Contract Value at the fourth Contract Anniversary has increased to $150,000 due to good market performance. The Automatic Annual Step- Up will increase the Total Guaranteed Withdrawal Amount from $134,832 to $150,000 and reset the Annual Benefit Payment to $7,500 ($150,000 x 5%). At the 5th Contract Anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $159,000 ($150,000 increased by 6%, compounded annually). Assume the Contract Value is less than $159,000. There is no Automatic Annual Step-Up since the Contract Value is below the Total Guaranteed Withdrawal Amount; however, due to the 6% increase in the Total Guaranteed Withdrawal Amount, the Annual Benefit Payment is increased to $7,950 ($159,000 x 5%). A-144 (PERFORMANCE GRAPH) F. ENHANCED GUARANTEED WITHDRAWAL BENEFIT AND GWB I -- HOW WITHDRAWALS AFFECT THE BENEFIT BASE 1. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 ($100,000 + 5% GWB Bonus Amount). Assume that the Contract Value grew to $110,000 because of market performance. If a subsequent withdrawal of $10,000 were made, the Benefit Base would be reduced to $105,000 -- $10,000 = $95,000. Assume the withdrawal of $10,000 exceeded the Annual Benefit Payment. Since the Contract Value of $100,000 exceeds the Benefit Base of $95,000, no further reduction to the Benefit Base is made. 2. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000. Assume that the Contract Value shrank to $90,000 because of market performance. If a subsequent withdrawal of $10,000 were made, the Benefit Base would be reduced to $95,000 and the Contract Value would be reduced to $80,000. Assume the withdrawal of $10,000 exceeded the Annual Benefit Payment. Since the Contract Value of $80,000 is less than the Benefit Base of $95,000, a further reduction of the $15,000 difference is made, bringing the Benefit Base to $80,000. G. ENHANCED GUARANTEED WITHDRAWAL BENEFIT AND GWB I -- HOW WITHDRAWALS AND SUBSEQUENT PURCHASE PAYMENTS AFFECT THE ANNUAL BENEFIT PAYMENT An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350 ($105,000 x 7%). If $7,000 withdrawals were then made for each of the next five years, the Benefit Base would be decreased to $70,000. If a subsequent purchase payment of $10,000 were made the next day, the Benefit Base would be increased to $70,000 + $10,000 + (5% x $10,000) = $80,500. The Annual Benefit Payment would be reset to the greater of a) $7,350 (the Annual Benefit Payment before the second purchase payment) and b) $5,635 (7% multiplied by the Benefit Base after the second purchase payment). In this case, the Annual Benefit Payment would remain at $7,350. H. ENHANCED GUARANTEED WITHDRAWAL BENEFIT AND GWB I -- HOW WITHDRAWALS AFFECT THE ANNUAL BENEFIT PAYMENT 1. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350. If a withdrawal of $9,000 was made the next day, and negative market performance reduced the Contract Value by an additional $1,000, the account value would be reduced to $100,000 -- $9,000 -- $1,000 = $90,000. Since the withdrawal of $9,000 exceeded the Annual Benefit Payment of $7,350, the Annual Benefit Payment would be reset to the lower of a) $7,350 (the Annual Benefit Payment before the withdrawal) and b) $6,300 (7% multiplied by the Contract Value after the withdrawal). In this case the Annual Benefit Payment would be reset to $6,300. A-145 2. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350. If a withdrawal of $10,000 was made two years later after the Contract Value had increased to $150,000, the Contract Value would be reduced to $140,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $7,350, the Annual Benefit Payment would be reset to the lower of a) $7,350 (the Annual Benefit Payment before the withdrawal) and b) $9,800 (7% multiplied by the Contract Value after the withdrawal). In this case the Annual Benefit Payment would remain at $7,350. I. ENHANCED GUARANTEED WITHDRAWAL BENEFIT AND GWB I -- HOW WITHDRAWALS AND SUBSEQUENT PURCHASE PAYMENTS AFFECT THE GUARANTEED WITHDRAWAL AMOUNT An initial purchase payment is made of $100,000 and the initial Guaranteed Withdrawal Amount and initial Benefit Base would both be $105,000. Assume that over the next five years, withdrawals reduced the Benefit Base to $70,000. If a subsequent purchase payment of $10,000 was made, the Benefit Base would be increased to $70,000 + $10,000 + (5% x $10,000) = $80,500. The Guaranteed Withdrawal Amount would be reset to the greater of a) $105,000 (the Guaranteed Withdrawal Amount before the second purchase payment) and b) $80,500 (the Benefit Base after the second purchase payment). In this case, the Guaranteed Withdrawal Amount would remain at $105,000. J. ENHANCED GUARANTEED WITHDRAWAL BENEFIT AND GWB I -- PUTTING IT ALL TOGETHER 1. WHEN WITHDRAWALS DO NOT EXCEED THE ANNUAL BENEFIT PAYMENT An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000, and the Annual Benefit Payment would be $7,350. Assume that the Benefit Base was reduced to $82,950 due to 3 years of withdrawing $7,350 each year and assume that the Contract Value was further reduced to $50,000 at year four due to poor market performance. If you withdrew $7,350 at this time, your Contract Value would be reduced to $50,000 -- $7,350 = $42,650. Your Benefit Base would be reduced to $82,950 -- $7,350 = $75,600. Since the withdrawal of $7,350 did not exceed the Annual Benefit Payment, there would be no additional reduction to the Benefit Base. The Guaranteed Withdrawal Amount would remain at $105,000 and the Annual Benefit Payment would remain at $7,350. A-146 (BAR GRAPH) 2. WHEN WITHDRAWALS DO EXCEED THE ANNUAL BENEFIT PAYMENT An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000, and the Annual Benefit Payment would be $7,350. Assume that the Benefit Base was reduced to $82,950 due to 3 years of withdrawing $7,350 each year. Assume the account value was further reduced to $50,000 at year four due to poor market performance. If you withdrew $10,000 at this time, your Contract Value would be reduced to $50,000 -- $10,000 = $40,000. Your Benefit Base would be reduced to $82,950 -- $10,000 = $72,950. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $7,350 and the resulting Benefit Base would be greater than the resulting Contract Value, there would be an additional reduction to the Benefit Base. The Benefit Base after the withdrawal would be set equal to the Contract Value after the withdrawal = $40,000. The Annual Benefit Payment would be set equal to the lesser of $7,350 and 7% x $40,000 = $2,800. The Guaranteed Withdrawal Amount would remain at $105,000, but this amount now no longer would be guaranteed to be received over time. The new Benefit Base of $40,000 would be now the amount guaranteed to be available to be withdrawn over time. A-147 (BAR GRAPH) K. ENHANCED GWB -- HOW THE OPTIONAL RESET WORKS (MAY BE ELECTED PRIOR TO AGE 86) Assume that a Contract had an initial purchase payment of $100,000 and the fee is 0.55%. The initial Contract Value would be $100,000, the initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000 and the Annual Benefit Payment would be $7,350 (assuming you began withdrawing in your first year). The Contract Value on the third Contract Anniversary grew due to market performance to $148,350. Assume the fee remains at 0.55%. If an Optional Reset is elected or Automatic Annual Resets are in effect, the charge would remain at 0.55%, the Guaranteed Withdrawal Amount and the Benefit Base would both be reset to $148,350, and the Annual Benefit Payment would become 7% x $148,350 = $10,385. The Contract Value on the sixth Contract Anniversary grew due to market performance to $179,859. Assume the fee has been increased to 0.60%. If an Optional Reset is elected or Automatic Annual Resets are in effect, the charge would increase to 0.60%, the Guaranteed Withdrawal Amount and the Benefit Base would both be reset to $179,859, and the Annual Benefit Payment would become 7% x $179,859 = $12,590. The Contract Value on the ninth Contract Anniversary grew due to market performance to $282,582. Assume the fee is still 0.60%. If an Optional Reset is elected or Automatic Annual Resets are in effect, the charge would remain at 0.60%, the Guaranteed Withdrawal Amount and the Benefit Base would both be reset to $282,582, and the Annual Benefit Payment would become 7% x $282,582 = $19,781. The period of time over which the Annual Benefit Payment may be taken would be lengthened. A-148 (GRAPH) L. ENHANCED GWB -- HOW A ONE-TIME OPTIONAL RESET MAY INCREASE THE BENEFIT BASE WHILE DECREASING THE GUARANTEED WITHDRAWAL AMOUNT AND ANNUAL BENEFIT PAYMENT Assume that a Contract had an initial purchase payment of $100,000. The initial Contract Value would be $100,000, the initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000 and the Annual Benefit Payment would be $7,350. Assume that the Benefit Base is reduced to $70,000 due to 5 years of withdrawing $7,000 each year, but also assume that, due to positive market performance, the Contract Value at the end of 5 years is $80,000. If a one-time Optional Reset is elected, the Benefit Base would be reset from $70,000 to $80,000, the Guaranteed Withdrawal Amount would be reduced from $105,000 to $80,000, and the Annual Benefit Payment would be reduced from $7,350 to $5,600 ($80,000 x 7%). (If you elect Automatic Annual Resets, a reset will not occur if the Contract Value is lower than the Guaranteed Withdrawal Amount.) Under these circumstances, a one-time Optional Reset increases the Benefit Base (the remaining amount of money you are guaranteed to receive) by $10,000, but also reduces the Annual Benefit Payment, thereby lengthening the period of time over which you will receive the money. This Optional Reset also reduces the Guaranteed Withdrawal Amount, against which the GWB rider charge is calculated. If the GWB rider charge fee rate does not increase in connection with the Optional Reset, the reduced Guaranteed Withdrawal Amount will result in a reduction in the amount of the annual GWB rider charge. M. ENHANCED GWB AND GWB I -- ANNUAL BENEFIT PAYMENT CONTINUING WHEN ACCOUNT VALUE REACHES ZERO Assume that a Contract had an initial purchase payment of $100,000. The initial Contract Value would be $100,000, the initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350 ($105,000 x 7%). Assume that the Benefit Base was reduced to $31,500 due to 10 years of withdrawing $7,350 each year and assume that the Contract Value was further reduced to $0 at year 11 due to poor market performance. We would commence making payments to you (equal, on an annual basis, to the Annual Benefit Payment) until the Benefit Base is exhausted. A-149 In this situation (assuming monthly payments), there would be 51 payments of $612.50 and a final payment of $262.50, which, in sum, would deplete the $31,500 Benefit Base. The total amount withdrawn over the life of the Contract would then be $105,000. (BAR CHART) A-150 APPENDIX F ENHANCED DEATH BENEFIT EXAMPLES The purpose of these examples is to illustrate the operation of the death benefit base under the Enhanced Death Benefit rider. 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 investment allocation made by a Contract Owner and the investment experience of the investment portfolios chosen. THE EXAMPLES DO NOT REFLECT THE DEDUCTION OF FEES AND CHARGES, WITHDRAWAL CHARGES, OR INCOME TAXES OR TAX PENALTIES. EXAMPLE:
--------------------------------------------------------------------------------------------- AMOUNT DATE A Initial Purchase Payment 10/1/2008 $100,000 --------------------------------------------------------------------------------------------- B Contract Value 10/1/2009 $90,000 (First Contract Anniversary) --------------------------------------------------------------------------------------------- C1 Contract Value (Highest As of 10/1/2009 $100,000 Anniversary Value) (= greater of A and B) --------------------------------------------------------------------------------------------- C2 6% Annual Increase Amount As of 10/1/2009 $106,000 (= A x 1.06) --------------------------------------------------------------------------------------------- C3 Death Benefit 10/1/2009 $106,000 (= greater of C1 and C2) --------------------------------------------------------------------------------------------- D Withdrawal (Dollar-For- 10/2/2009 $6,000 Dollar within 6% limit) --------------------------------------------------------------------------------------------- E Percentage Reduction in 10/2/2009 6.67% Contract Value (= D/B) --------------------------------------------------------------------------------------------- F Contract Value after 10/2/2009 $84,000 Withdrawal (= B - D) --------------------------------------------------------------------------------------------- G1 Highest Anniversary Value As of 10/2/2009 $93,333 reduced for Withdrawal (= C1 - (C1 x E)) --------------------------------------------------------------------------------------------- G2 6% Annual Increase Amount As of 10/2/2009 $100,017 reduced for Withdrawal (= C2 - D) Note: C2 includes additional day of interest at 6% --------------------------------------------------------------------------------------------- G3 Death Benefit 10/2/2009 $100,017 (= greater of G1 and G2) --------------------------------------------------------------------------------------------- H Contract Value 10/1/2010 $110,000 (Second Contract Anniversary) --------------------------------------------------------------------------------------------- I1 Contract Value (Highest 10/1/2010 $110,000 Anniversary Value) (= greater of G1 and H) --------------------------------------------------------------------------------------------- I2 6% Annual Increase Amount 10/1/2010 $106,360 (= C2 x 1.06 - D) --------------------------------------------------------------------------------------------- I3 Death Benefit 10/1/2010 $110,000 (= greater of I1 and I2) --------------------------------------------------------------------------------------------- J Withdrawal (Proportional 10/2/2010 $11,000 above 6% limit) --------------------------------------------------------------------------------------------- K Percentage Reduction in 10/2/2010 10% Contract Value (= J/H) --------------------------------------------------------------------------------------------- L Contract Value after 10/2/2010 $99,000 Withdrawal (= H - J) --------------------------------------------------------------------------------------------- M1 Highest Anniversary Value As of 10/2/2010 $99,000 reduced for Withdrawal (= 11 - (11 x K)) --------------------------------------------------------------------------------------------- M2 6% Annual Increase Amount As of 10/2/2010 $95,739 reduced for Withdrawal (= 12 - (12 x K)) Note: 12 includes additional day of interest at 6% --------------------------------------------------------------------------------------------- M3 Death Benefit 10/2/2010 $99,000 (= greater of M1 and M2) ---------------------------------------------------------------------------------------------
A-151 (1) WITHDRAWAL ADJUSTMENTS TO ANNUAL INCREASE AMOUNT Dollar-for-dollar adjustment when withdrawal is less than or equal to 5% of the Annual Increase Amount from the prior Contract Anniversary Assume the initial purchase payment is $100,000 and the Enhanced Death Benefit is selected. Assume that during the first Contract Year, $5,000 is withdrawn. Because the withdrawal is less than or equal to 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced by the withdrawal on a dollar-for-dollar basis to $100,000 ($100,000 increased by 5% per year, compounded annually, less $5,000 = $100,000). Assuming no other purchase payments or withdrawals are made before the second Contract Anniversary, the Annual Increase Amount at the second Contract Anniversary will be $105,000 ($100,000 increased by 5% per year, compounded annually). Proportionate adjustment when withdrawal is greater than 6% of the Annual Increase Amount from the prior Contract Anniversary Assume the initial purchase payment is $100,000 and the Enhanced Death Benefit is selected. Assume the Contract Value at the first Contract Anniversary is $100,000. The Annual Increase Amount at the first Contract Anniversary will be $105,000 ($100,000 increased by 5% per year, compounded annually). Assume that on the first Contract Anniversary, $10,000 is withdrawn (leaving an account balance of $90,000). Because the withdrawal is greater than 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced by the value of the Annual Increase Amount immediately prior to the withdrawal ($105,000) multiplied by the percentage reduction in the Contract Value attributed to that withdrawal (10%). Therefore, the new Annual Increase Amount is $94,500 ($105,000 x 10% = $10,500; $105,000 -- $10,500 = $94,500). Assuming no other purchase payments or withdrawals are made before the second Contract Anniversary, the Annual Increase Amount at the second Contract Anniversary will be $99,225 ($94,500 increased by 5% per year, compounded annually). (2) THE 5% ANNUAL INCREASE AMOUNT Example Assume the Contract Owner is a male, age 55 at issue, and he elects the Enhanced Death Benefit rider. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the Contract issue date, the 5% Annual Increase Amount is equal to $100,000 (the initial purchase payment). The 5% Annual Increase Amount is calculated at each Contract Anniversary (through the Contract Anniversary on or following the Contract Owner's 90th birthday). At the tenth Contract Anniversary, when the Contract Owner is age 65, the 5% Annual Increase Amount is $162,889 ($100,000 increased by 5% per year, compounded annually). See section (3) below for an example of the calculation of the Highest Anniversary Value. Determining a death benefit based on the Annual Increase Amount Assume that you make an initial purchase payment of $100,000. Prior to annuitization, your Contract Value fluctuates above and below your initial purchase payment depending on the investment performance of the subaccounts you selected. The 5% Annual Increase Amount, however, accumulates an amount equal to your purchase payments at the Annual Increase Rate of 5% per annum, until the Contract Anniversary on or following the Contract Owner's 90th birthday. The 5% Annual Increase Amount is also adjusted for any withdrawals (including any applicable withdrawal charge) made during this period. The 5% Annual Increase Amount line is the value upon which a future death benefit amount can be based (if it is greater than the Highest Anniversary Value and Contract Value on the date the death benefit amount is determined). (3) THE HIGHEST ANNIVERSARY VALUE (HAV) Example Assume, as in the example in section (2) above, the Contract Owner is a male, age 55 at issue, and he elects the Enhanced Death Benefit rider. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the Contract issue date, the Highest Anniversary Value is equal to $100,000 (the initial purchase payment). Assume the Contract Value on the first Contract Anniversary is $108,000 due to good market performance. Because the Contract Value is greater than the Highest Anniversary Value ($100,000), the Highest Anniversary Value is set equal to the Contract Value ($108,000). Assume the Contract Value on the second Contract Anniversary is $102,000 due to poor market performance. Because the Contract Value is less than the Highest Anniversary Value ($108,000), the Highest Anniversary Value remains $108,000. A-152 Assume this process is repeated on each Contract Anniversary until the tenth Contract Anniversary, when the Contract Value is $155,000 and the Highest Anniversary Value is $150,000. The Highest Anniversary Value is set equal to the Contract Value ($155,000). Determining a death benefit based on the Highest Anniversary Value Prior to annuitization, the Highest Anniversary Value begins to lock in growth. The Highest Anniversary Value is adjusted upward each Contract Anniversary if the Contract Value at that time is greater than the amount of the current Highest Anniversary Value. Upward adjustments will continue until the Contract Anniversary immediately prior to the Contract Owner's 81st birthday. The Highest Anniversary Value also is adjusted for any withdrawals taken (including any applicable withdrawal charge) or any additional payments made. The Highest Anniversary Value is the value upon which a future death benefit amount can be based (if it is greater than the Annual Increase Amount and Contract Value on the date the death benefit amount is determined). (4) PUTTING IT ALL TOGETHER Example Continuing the examples in sections (2) and (3) above, assume the Contract Owner dies after the tenth Contract Anniversary but prior to the eleventh Contract Anniversary, and on the date the death benefit amount is determined, the Contract Value is $150,000 due to poor market performance. Because the 5% Annual Increase Amount ($162,889) is greater than the Highest Anniversary Value ($155,000), the 5% Annual Increase Amount ($162,889) is used as the death benefit base. Because the death benefit base ($162,889) is greater than the Contract Value ($150,000), the death benefit base will be the death benefit amount. The above example does not take into account the impact of premium and other taxes. THE DEATH BENEFIT BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE DEATH BENEFIT AMOUNT AND THE CHARGE FOR THE BENEFIT. (5) THE OPTIONAL STEP-UP Assume your initial purchase payment is $100,000 and no withdrawals are taken. The 5% Annual Increase Amount increases to $105,000 on the first anniversary ($100,000 increased by 5% per year, compounded annually). Assume your Contract Value at the first Contract Anniversary is $110,000 due to good market performance, and you elect an Optional Step-Up. The effect of the Optional Step-Up election is: (1) The 5% Annual Increase Amount resets from $105,000 to $110,000; and (2) The Enhanced Death Benefit rider charge is reset to the fee we charge new Contract Owners for the Enhanced Death Benefit at that time. The 5% Annual Increase Amount increases to $115,500 on the second anniversary ($110,000 increased by 5% per year, compounded annually). Assume your Contract Value at the second Contract Anniversary is $112,000 due to poor market performance. You may NOT elect an Optional Step-Up at this time, because the Contract Value is less than the 5% Annual Increase Amount (6) THE OPTIONAL STEP-UP: AUTOMATIC ANNUAL STEP-UP Assume your initial purchase payment is $100,000 and no withdrawals are taken. The 5% Annual Increase Amount increases to $105,000 on the first anniversary ($100,000 increased by 5% per year, compounded annually). Assume your Contract Value at the first Contract Anniversary is $110,000 due to good market performance, and you elected Optional Step-Ups to occur under the Automatic Annual Step-Up feature prior to the first Contract Anniversary. Because your Contract Value is higher than your 5% Annual Increase Amount, an Optional Step-Up will automatically occur. The effect of the Optional Step-Up is: (1) The 5% Annual Increase Amount automatically resets from $105,000 to $110,000; and A-153 (2) The Enhanced Death Benefit rider charge is reset to the fee we charge new Contract Owners for the Enhanced Death Benefit at that time. The 6% Annual Increase Amount increases to $115,500 on the second anniversary ($110,000 increased by 5% per year, compounded annually). Assume your Contract Value at the second Contract Anniversary is $120,000 due to good market performance, and you have not discontinued the Automatic Annual Step-Up feature. Because your Contract Value is higher than your 5% Annual Increase Amount, an Optional Step-Up will automatically occur. The effect of the Optional Step-Up is: (1) The 5% Annual Increase Amount automatically resets from $115,500 to $120,000; and (2) The Enhanced Death Benefit rider charge is reset to the fee we charge new Contract Owners for the Enhanced Death Benefit at that time. Assume your Contract Value increases by $10,000 at each Contract Anniversary in years three through seven. At each Contract Anniversary, your Contract Value would exceed the 5% Annual Increase Amount and an Optional Step- Up would automatically occur (provided you had not discontinued the Automatic Annual Step-Up feature, and other requirements were met). The effect of the Optional Step-Up is: (1) The 5% Annual Increase Amount automatically resets to the higher Contract Value; and (2) The Enhanced Death Benefit rider charge is reset to the fee we charge new Contract Owners for the Enhanced Death Benefit at that time. After the seventh Contract Anniversary, the initial Automatic Annual Step- Up election expires. Assume you do not make a new election of the Automatic Annual Step-Up. The 5% Annual Increase Amount increases to $178,500 on the eighth anniversary ($170,000 increased by 5% per year, compounded annually). Assume your Contract Value at the eighth Contract Anniversary is $160,000 due to poor market performance. An Optional Step-Up is NOT permitted because your Contract Value is lower than your 5% Annual Increase Amount. However, because the Optional Step-Up has locked-in previous gains, the 5% Annual Increase Amount remains at $178,500 despite poor market performance, and, provided the rider continues in effect, will continue to grow at 5% annually (subject to adjustments for additional purchase payments and/or withdrawals) through the Contract Anniversary on or after your 90th birthday. Also, note the Enhanced Death Benefit rider charge remains at its current level. A-154 TABLE OF CONTENTS FOR THE STATEMENT OF ADDITIONAL INFORMATION FOR THE AMERICAN FORERUNNER SERIES
PAGE ------ THE COMPANY AND THE VARIABLE ACCOUNT................................... II-3 SERVICES RELATING TO THE VARIABLE ACCOUNT AND THE CONTRACTS............ II-3 INVESTMENT ADVICE...................................................... II-3 DISTRIBUTION OF THE CONTRACTS.......................................... II-5 CALCULATION OF PERFORMANCE DATA........................................ II-6 CALCULATION OF YIELDS.................................................. II-7 NET INVESTMENT FACTOR.................................................. II-8 ANNUITY PAYMENTS....................................................... II-9 HYPOTHETICAL ILLUSTRATIONS OF ANNUITY PAYOUTS.......................... II-11 HISTORICAL ILLUSTRATIONS OF ANNUITY PAYOUTS............................ II-11 ACCUMULATION UNIT VALUES (Condensed Financial Information)............. II-12 THE FIXED ACCOUNT...................................................... II-148 TAX STATUS OF THE CONTRACTS............................................ II-148 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.......................... II-149 LEGAL MATTERS.......................................................... II-149 FINANCIAL STATEMENTS................................................... 1
If you would like a copy of any of the following Statements of Additional Information, please check the appropriate box below and mail to: New England Securities Corporation 501 Boylston Street Boston, Massachusetts 02116 [ ] American Forerunner Series -- New England Variable Annuity Separate Account [ ] Metropolitan Series Fund, Inc. [ ] Met Investors Series Trust [ ] American Funds Insurance Series [ ] My current address is: Name ------------------------------------ --------------------------- Contract Number Address ------------------------------------ --------------------------- Signature ------------------------------------ Zip
A-155 NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT AMERICAN FORERUNNER SERIES INDIVIDUAL VARIABLE ANNUITY CONTRACTS ISSUED BY NEW ENGLAND LIFE INSURANCE COMPANY STATEMENT OF ADDITIONAL INFORMATION (PART B) MAY 1, 2009 This Statement of Additional Information is not a prospectus. This Statement of Additional Information relates to the Prospectus dated May 1, 2009 and should be read in conjunction therewith. A copy of the Prospectus may be obtained by writing to New England Securities Corporation ("New England Securities"), 501 Boylston Street, Boston, Massachusetts 02116. II-1 TABLE OF CONTENTS
PAGE ------ THE COMPANY AND THE VARIABLE ACCOUNT................................... II-3 SERVICES RELATING TO THE VARIABLE ACCOUNT AND THE CONTRACTS............ II-3 INVESTMENT ADVICE...................................................... II-3 DISTRIBUTION OF THE CONTRACTS.......................................... II-5 CALCULATION OF PERFORMANCE DATA........................................ II-6 CALCULATION OF YIELDS.................................................. II-7 NET INVESTMENT FACTOR.................................................. II-9 ANNUITY PAYMENTS....................................................... II-9 HYPOTHETICAL ILLUSTRATIONS OF ANNUITY PAYOUTS.......................... II-10 HISTORICAL ILLUSTRATIONS OF ANNUITY PAYOUTS............................ II-11 ACCUMULATION UNIT VALUES (Condensed Financial Information)............. II-12 THE FIXED ACCOUNT...................................................... II-189 TAX STATUS OF THE CONTRACTS............................................ II-189 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.......................... II-190 LEGAL MATTERS.......................................................... II-190 FINANCIAL STATEMENTS...................................................
II-2 THE COMPANY AND THE VARIABLE ACCOUNT The New England Variable Annuity Separate Account (the "Variable Account") is a separate account of New England Life Insurance Company ("The Company" or "NELICO"). The Variable Account was established on July 1, 1994. The Contracts were first made available on June 1, 2001. The Company is an indirect, wholly- owned subsidiary of Metropolitan Life Insurance Company ("MetLife"). MetLife is a wholly-owned subsidiary of MetLife, Inc., a publicly traded company. MetLife entered into a net worth maintenance agreement with the Company at the time MetLife merged with New England Mutual Life Insurance Company. Under the agreement, MetLife agreed, without limitation as to the amount, to cause the Company to have certain minimum capital and surplus levels and liquidity necessary to enable it to meet its current obligations on a timely basis. At December 31, 2007, the capital and surplus of NELICO was in excess of these minimum capital and surplus levels. MetLife and the Company entered into the agreement in part to enhance and maintain the financial strength of the Company as set forth in the agreement. Creditors of the Company (including its policyholders) have certain rights under the agreement to enforce the provisions of the agreement through certain state insurance regulators. However, the agreement provides, among other things, that it does not provide any creditor of the Company with recourse to or against any of the assets of MetLife. MetLife has the right to terminate the agreement upon thirty days written notice to the Company. MetLife has agreed not to terminate the agreement unless one of certain designated events occur, including if the Company attains a financial strength rating from Moody's Investors Service, Inc. without giving weight to the support of the agreement, that is the same as or better than its Moody's rating with such support. SERVICES RELATING TO THE VARIABLE ACCOUNT AND THE CONTRACTS The Company maintains the books and records of the Variable Account and provides issuance and other administrative services for the Contracts. INVESTMENT ADVICE The Variable Account invests in the Portfolios of the Metropolitan Series Fund, Inc. ("Metropolitan Fund"), the Met Investors Series Trust, and other, unaffiliated open-end management investment companies that serve as investment vehicles for variable life and variable annuity separate accounts. MetLife Advisers, LLC ("MetLife Advisers") and Met Investors Advisory LLC ("Met Investors Advisory"), as the Advisers to the Metropolitan Fund and the Met Investors Series Trust, respectively, may, from time to time, replace the subadviser of a Portfolio with a new subadviser. A number of subadviser changes have been made with respect to the Portfolios in which the Variable Account invests. MetLife Advisers (formerly known as New England Investment Management, Inc. which was formerly known as TNE Advisers, Inc.) became the investment Adviser to the Portfolios of the Metropolitan Fund on May 1, 2001. Prior to May 1, 2001, Metropolitan Life Insurance Company was the investment Adviser for all Portfolios of the Metropolitan Fund. MetLife Advisers was also the investment Adviser to each of the Series of the New England Zenith Fund ("Zenith Fund") until May 1, 2003, the date on which each Series became a Portfolio of the Metropolitan Fund. MetLife Advisers had been the Adviser to all Series of the Zenith Fund since 1994, with the following exceptions: in the case of the Back Bay Advisors Money Market Series (formerly known as the State Street Research Money Market Portfolio and currently known as the BlackRock Money Market Portfolio), the Back Bay Advisors Bond Income Series (formerly known as the State Street Research Bond Income Portfolio and currently known as the BlackRock Bond Income Portfolio), the Westpeak Value Growth Series (formerly, the Westpeak Growth and Income Series, which was formerly the FI Structured Equity Portfolio, and currently known as the FI Value Leaders Portfolio), the Loomis Sayles Small Cap Series and the Loomis Sayles Avanti Growth Series (currently known as the Harris Oakmark Focused Value Portfolio), MetLife Advisers became the Adviser on May 1, 1995. Met Investors Advisory (formerly known as Met Investors Advisory Corp., which was formerly known as Security First Investment Management) became the Investment Adviser for the Portfolios of the Met Investors Series Trust on February 12, 2001. II-3 The following is the subadviser history of the Metropolitan Fund Portfolios that, prior to May 1, 2003, were Series of the Zenith Fund: The subadviser to the FI Value Leaders Portfolio (formerly, the FI Structured Equity Portfolio, which was formerly the Westpeak Growth and Income Series, which was formerly the Westpeak Value Growth Series) was Westpeak Investment Advisors, L.P. until May 1, 2002, when Fidelity Management & Research Company became the subadviser. The subadviser to the BlackRock Money Market Portfolio (formerly, the State Street Research Money Market Portfolio which was formerly, the Back Bay Advisors Money Market Series) and the BlackRock Bond Income Portfolio (formerly, the State Street Research Bond Income Portfolio which was formerly, the Back Bay Advisors Bond Income Series) was Back Bay Advisors, L.P. until July 1, 2001, when State Street Research & Management Company became the subadviser; BlackRock Advisors, Inc. became the subadviser on January 31, 2005; and BlackRock Advisors, LLC became the subadviser on September 28, 2006. The subadviser to the Harris Oakmark Focused Value Portfolio (formerly, the Harris Oakmark Mid Cap Value Series, which was formerly the Goldman Sachs Midcap Value Series, which was formerly the Loomis Sayles Avanti Growth Series) was Loomis, Sayles and Company, L.P. until May 1, 1998, when Goldman Sachs Asset Management, a separate operating division of Goldman Sachs & Co., became the subadviser; Harris Associates L.P. became the subadviser on May 1, 2000. The subadviser to the Balanced Portfolio (which was merged into the MFS(R) Total Return Portfolio of the Metropolitan Fund on April 30, 2004, and was formerly, the Loomis Sayles Balanced Series) was Loomis, Sayles and Company, L.P. until May 1, 2000, when Wellington Management Company, LLP became the subadviser. The subadviser to the BlackRock Legacy Large Cap Growth Portfolio (formerly, the State Street Research Large Cap Growth Portfolio which was formerly, the Alger Equity Growth Portfolio) was Fred Alger Management, Inc. until May 1, 2004, when State Street Research & Management Company became the subadviser; BlackRock Advisors, Inc. became the subadviser on January 31, 2005; and BlackRock Advisors, LLC became the subadviser on September 28, 2006. On April 30, 2004, the MFS(R) Research Managers Portfolio merged with and into the MFS(R) Investors Trust Portfolio. On April 28, 2006 the MFS(R) Investors Trust Portfolio of the Metropolitan Fund merged with and into the Legg Mason Value Equity Portfolio of the Met Investors Series Trust. The following is the subadviser history of the remaining Metropolitan Fund Portfolios: Metropolitan Life Insurance Company became the subadviser to the Lehman Brothers(R) Aggregate Bond Index Portfolio, the MetLife Stock Index Portfolio, the MetLife Mid Cap Stock Index Portfolio, the Morgan Stanley EAFE(R) Index Portfolio and the Russell 2000(R) Index Portfolio on May 1, 2001 until April 30, 2007 when MetLife Investment Advisors Company, LLC became the subadviser. The subadviser to the FI International Stock Portfolio (formerly, the Putnam International Stock Portfolio, which was formerly the Santander International Stock Portfolio), was Santander Global Advisors, Inc. until January 24, 2000 when Putnam Investment Management, LLC became the subadviser until December 16, 2003, when Fidelity Management & Research Company became the subadviser. The sub-adviser for Julius Baer International Stock Portfolio (formerly FI International Stock Portfolio was Fidelity Management & Research Company until January 7, 2008 when Julius Baer Investment Management LLC became the sub- adviser to Julius Baer International Stock Portfolio. On April 28, 2003, the Janus Growth of the Metropolitan Fund Portfolio merged with and into the Janus Aggressive Growth Portfolio of the Met Investors Series Trust. On April 30, 2004, the FI Mid Cap Opportunities Portfolio merged with and into the Janus Mid Cap Portfolio, which was immediately renamed the FI Mid Cap Opportunities Portfolio and prior to May 1, 2004, Janus Capital Management LLC was the subadviser to this Portfolio. Immediately following the merger, Fidelity Management & Research Company replaced Janus Capital Management LLC as the subadviser to the FI Mid Cap Opportunities Portfolio. On April 28, 2008, Pyramis Global Advisors, LLC replaced its affiliate Fidelity Management & Research Company as subadviser. The sub-adviser to the BlackRock Aggressive Growth Portfolio (formerly, the State Street Research Aggressive Growth Portfolio), the BlackRock Strategic Value Portfolio (formerly, the State Street Research Aurora Portfolio), the BlackRock Diversified Portfolio (formerly, the State Street Research Diversified Portfolio), the BlackRock Large Cap Portfolio (formerly, the BlackRock Investment Trust Portfolio which was formerly, the State Street Research Investment Trust Portfolio), and the BlackRock Large Cap Value Portfolio (formerly, the State Street Research II-4 Large Cap Value Portfolio) was State Street Research & Management Company until January 31, 2005, when BlackRock Advisors, Inc. became the sub-adviser; and BlackRock Advisors, LLC became the subadviser on September 28, 2006. The sub- adviser to the Oppenheimer Global Equity Portfolio (formerly, the Scudder Global Equity Portfolio) was Deutsche Investment Management Americas Inc. until May 1, 2005 when OppenheimerFunds, Inc. became the sub-adviser. On January 7, 2008 MFS(R) Value Portfolio replaced Harris Oakmark Large Cap Value Portfolio and Massachusetts Financial Services Company became the sub-adviser. On April 28, 2008, Clarion Global Real Estate Portfolio replaced Neuberger Berman Real Estate Sub-Account and INC Clarion Real Estate Services, L.P. became the sub-adviser. On April 29, 2005, the Met/Putnam Voyager Portfolio (formerly, the Putnam Large Cap Growth Portfolio) merged with and into Jennison Growth Portfolio. The subadviser to the Western Asset Management U.S. Government Portfolio (formerly, Salomon Brothers U.S. Government Portfolio) and the Western Asset Management Strategic Bond Opportunities Portfolio (formerly, Salomon Brothers Strategic Bond Opportunities) was Salomon Brothers Asset Management until May 1, 2006, when Western Asset Management Company became the subadviser. On January 7, 2008, FI International Stock Portfolio changed its name to Julius Baer International Stock Portfolio. Also on January 7, 2008, Julius Baer Investment Management LLC replaced Fidelity Management & Research Company as subadviser. On or about April 30, 2007, the BlackRock Large Cap Portfolio (formerly, the BlackRock Investment Trust Portfolio which was formerly, the State Street Research Investment Trust Portfolio) of the Metropolitan Fund merged with and into the BlackRock Large-Cap Core Portfolio of the Met Investors Series Trust. The following is the Adviser (i.e., the "subadviser") history of the Met Investors Series Trust: The subadviser to the T. Rowe Price Mid-Cap Growth Portfolio (formerly, the MFS(R) Mid Cap Growth Portfolio) was Massachusetts Financial Services Company until January 1, 2003, when T. Rowe Price Associates, Inc. became the subadviser. The subadviser to the Harris Oakmark International Portfolio (formerly, State Street Research Concentrated International Portfolio) was State Street Research & Management Company until December 31, 2002 and Harris Associates L.P. became the subadviser effective January 1, 2003. The subadviser to the RCM Technology Portfolio (formerly the RCM Global Technology Portfolio which was formerly, the PIMCO PEA Innovation Portfolio, which was formerly the PIMCO Innovation Portfolio) was PEA Capital LLC until January 15, 2005 when RCM Capital Management LLC became the subadviser. The subadviser to the Lazard Mid-Cap Portfolio (formerly, Met/AIM Mid-Cap Core Equity Portfolio) was A I M Capital Management, Inc. until December 19, 2005, when Lazard Asset Management LLC became the subadviser. The subadviser to the Legg Mason Partners Aggressive Growth Portfolio (formerly the Legg Mason Aggressive Growth Portfolio, which was formerly, the Janus Aggressive Growth Portfolio, which was formerly the Janus Growth Portfolio) was Janus Capital Management LLC until October 1, 2006 when Clearbridge Advisors, LLC became the subadviser. On September 2, 2008, Cyclical Growth and Income ETF Portfolio changed its name to SSgA Growth and Income ETF and Cyclical Growth ETF Portfolio changed its name to SSgA Growth ETF Portfolio. Also on September 2, 2008, SSgA Funds Management, Inc. replaced Franklin Advisers, Inc. as subadviser. DISTRIBUTION OF THE CONTRACTS The Contracts are offered to the public on a continuous basis. We anticipate continuing to offer the Contracts, but reserve the right to discontinue the offering. New England Securities Corporation ("Distributor") serves as principal underwriter for the Contracts. Distributor is a Massachusetts corporation organized in 1968 and an indirect, wholly owned subsidiary of the Company, and its home address is located at 501 Boylston Street, Boston, Massachusetts 02116. Distributor is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as well as II-5 with 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 Hotline at 1-800-289-9999, or by visiting FINRA's website at www.finra.org. Distributor offers the Contracts through its sales representatives. Distributor is not a member of the Securities Investor Protection Corporation. Distributor also may enter into selling agreements with other broker-dealers ("selling firms") and compensate them for their services. Sales representatives are appointed as our insurance agents. Distributor received sales compensation with respect to the Contracts in the following amounts during the periods indicated:
AGGREGATE AMOUNT OF COMMISSIONS RETAINED BY DISTRIBUTOR AFTER AGGREGATE AMOUNT PAYMENTS TO OF COMMISSIONS ITS REGISTERED PAID TO PERSONS AND FISCAL YEAR DISTRIBUTOR* SELLING FIRMS ----------- ---------------- ----------------- 2006.................................................. $29,025,979 $0 2007.................................................. $36,330,400 $0 2008.................................................. $33,159,311 $0
-------- * Includes sales compensation paid to registered persons of Distributor. Distributor passes through commissions it receives to selling firms for their sales and does not retain any portion of it in return for its services as distributor for the Contracts. However, under the distribution agreement with Distributor, we pay the following sales expenses: sales representative training allowances; deferred compensation and insurance benefits of registered persons; advertising expenses; and all other expenses of distributing the Contracts. We also pay for Distributor's operating and other expenses. CALCULATION OF PERFORMANCE DATA AVERAGE ANNUAL TOTAL RETURN We may provide average annual total returns for each Subaccount on a Class- specific basis, based on the actual investment experience of the Subaccounts, the Metropolitan Fund, the Met Investors Series Trust and the American Funds Insurance Series. THIS INFORMATION DOES NOT INDICATE OR REPRESENT FUTURE PERFORMANCE. Average annual total returns will be provided for a subaccount on a Class-specific basis for 1, 5, and 10 years, or for a shorter period, if applicable. We base calculations of average annual total return for each Class on the assumption that a single investment of $1,000 was made at the beginning of each period. The returns do not reflect the effect of any premium tax charge, which applies in certain states, and which would reduce the average annual total returns. The average annual total return is related to withdrawal value and is calculated as follows for each Class. The amount of the assumed $1,000 purchase payment for a Contract issued at the beginning of the period is divided by the Accumulation Unit Value of each subaccount for the relevant Class at the beginning of the period shown to arrive at the number of Accumulation Units purchased. The Accumulation Unit Values reflect the applicable Asset-Based Insurance Charge for each Class, assuming the Standard Death Benefit: 1.25% for the Standard Class; 1.60% for the B Plus Class; 1.60% for the C Class; 1.50% for the L Class; and 1.15% for the P Class. (These charges increase by 0.25% for subaccounts investing in the American Funds Insurance Series.) The total number of units held under the Contract at the beginning of the first Contract Year covered by the period shown is multiplied by the Accumulation Unit Value at the end of the last Contract Year covered by the period shown to arrive at the Contract Value on that date. The Contract Value is also reduced for the GMIB (Predictor Plus) rider charge which is assessed as .75% per year of the GMIB Income Base (up to a maximum of 1.50% upon Optional Reset) or for the Guaranteed Withdrawal Benefit Rider charge which is .50% of the Guaranteed Withdrawal Amount (up to a maximum of .95% upon Optional Reset). This Contract Value is then reduced by the applicable Withdrawal Charge and by a factor that reflects the $30 Contract Administrative Fee which would be deducted upon withdrawal at the end of the last Contract Year in the period II-6 to arrive at the withdrawal value. The average annual total return is the annual compounded rate of return which would produce the withdrawal value on that date. In other words, the average annual total return is the rate which, when added to 1, raised to a power reflecting the number of years in the period shown, and multiplied by the initial $1,000 investment, yields the withdrawal value at the end of the period. The average annual total returns assume that no premium tax charge has been deducted. The Accumulation Unit Values used for this purpose reflect an average per unit charge for the $30 Contract Administrative Fee. Subaccount average annual total return, which is calculated in accordance with the Securities and Exchange Commission ("SEC") standardized formula, uses the inception date of the subaccount through which the Eligible Fund is available. Eligible Fund total return adjusted for Contract charges, which is non-standard performance, uses the inception date of the Eligible Fund, and therefore may reflect periods prior to the availability of the corresponding subaccount under the Contract. For non-standard performance, if there is a partial year included in the reporting period, we reflect only a pro rata portion of the average per unit Contract Administrative Fee factor for that partial year. For non-standard performance, we do not reflect the withdrawal charge or the charge for the GMIB. THIS INFORMATION DOES NOT INDICATE OR REPRESENT FUTURE PERFORMANCE. Certain portfolios of the Metropolitan Fund and Met Investors Series have been managed by different investment advisers or investment subadvisers. Accordingly, performance may reflect the management of previous advisers or subadvisers. For prior advisory and subadvisory history, see "INVESTMENT ADVICE" on page II-3. As discussed in the prospectus in the section entitled "Investment Performance Information", the Variable Account may illustrate historical investment performance on a Class-specific basis by showing the Percentage Change in Unit Value and the Annual Effective Rate of Return of each subaccount of the Variable Account for every calendar year since inception of the corresponding Eligible Funds to the date of the illustration and for the ten, five and one year periods ending with the date of the illustration. Such illustrations do not reflect the impact of any Withdrawal Charge, premium tax charge, or the annual $30 Contract Administrative Fee. The method of calculating the percentage change in unit value is described in the prospectus under "Investment Performance Information." The annual effective rate of return in these illustrations for each Class is calculated by dividing the unit value at the end of the period by the unit value at the beginning of the period, raising this quantity to the power of 1/n (where n is the number of years in the period), and then subtracting 1. We may show daily unit values for each subaccount in advertising and sales literature, including on our website. CALCULATION OF YIELDS MONEY MARKET YIELD From time to time, we may quote in advertisements and sales literature the current yield for the BlackRock Money Market Subaccount for a 7-day period in a manner that does not take into consideration any realized or unrealized gains or losses on shares of the underlying Eligible Fund or on its respective portfolio securities. On a Class-specific basis, the current yield is computed by: (a) determining the net change (exclusive of realized gains and losses on the sales of securities and unrealized appreciation and depreciation) at the end of the 7- day period in the value of a hypothetical account under a Contract having a balance of one Accumulation Unit at the beginning of the period, (b) dividing such net change in subaccount value by the subaccount value at the beginning of the period to determine the base period return; and (c) annualizing this quotient on a 365-day basis. The net change in subaccount value reflects: (1) net income from the Eligible Fund attributable to the hypothetical account; and (2) charges and deductions imposed under the Contract which are attributable to the hypothetical account. The charges and deductions include the per unit charges for the hypothetical account for: (1) the asset-based insurance charge for each Class assuming the Standard Death Benefit (1.25% for the Standard Class; 1.60% for the Bonus Class; 1.60% for the C Class; 1.50% for the L Class; and 1.15% for the P Class); and (2) the annual $30 Contract Administrative Fee. For purposes of calculating current yield for a Contract, an average per unit Contract Administrative Fee is used. II-7 On a Class-specific basis, current yield will be calculated according to the following formula: Current Yield = ((NCF - ES)/UV) x (365/7) Where: NCF = the net change in the value of the Eligible Fund (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation) for the 7-day period attributable to a hypothetical account having a balance of one Accumulation Unit. ES = per unit expenses for the hypothetical account for the 7-day period. UV = the unit value on the first day of the 7-day period. We may also quote the effective yield of the BlackRock Money Market Subaccount for the same 7-day period, determined on a compounded basis. The effective yield is calculated by compounding the unannualized base period return according to the following formula: Effective Yield = (1 + ((NCF - ES)/UV))365/7 - 1 Where: NCF = the net change in the value of the Eligible Fund (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation) for the 7-day period attributable to a hypothetical account having a balance of one Accumulation Unit. ES = per unit expenses of the hypothetical account for the 7-day period. UV = the unit value for the first day of the 7-day period. Because of the charges and deductions imposed under the Contract, the yield for the BlackRock Money Market Subaccount will be lower than the yield for the corresponding underlying Eligible Fund. The yields on amounts held in the BlackRock Money Market 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 Eligible Fund, the types and qualities of portfolio securities held by the Eligible Fund, and the Eligible Fund's operating expenses. Yields on amounts held in the BlackRock Money Market Subaccount may also be presented for periods other than a 7-day period. OTHER SUBACCOUNT YIELDS From time to time, we may quote in sales literature or advertisements the current annualized yield of one or more of the subaccounts (other than the BlackRock Money Market Subaccount) for a Contract for a 30-day or one-month period. The annualized yield of a subaccount refers to income generated by the subaccount over a specified 30-day or one-month period on a Class-specific basis. Because the yield is annualized, the yield generated by the subaccount during the 30-day or one-month period is assumed to be generated each period over a 12-month period. On a Class-specific basis, the yield is computed by: (1) dividing the net investment income of the Eligible Fund attributable to the subaccount units less subaccount expenses for the period; by (2) the maximum offering price per unit on the last day of the period times the daily average number of units outstanding for the period; then (3) compounding that yield for a 6-month period; and then (4) multiplying that result by 2. The charges and deductions include the per unit charges for the hypothetical account for: (1) the Asset-Based Insurance Charge for each Class assuming the Standard Death Benefit (1.25% for the Standard Class; 1.60% for the Bonus Class; 1.60% for the C Class; 1.50% for the L Class; and 1.15% for the P Class); and (2) the annual $30 Contract Administrative Fee. For purposes of calculating the 30-day or one- month yield, an average per unit Contract Administrative Fee is used. II-8 On a Class-specific basis, the 30-day or one-month yield is calculated according to the following formula: Yield = 2 x ((((NI - ES)/(U x UV)) + 1)(6) - 1) Where: NI = net investment income of the Eligible Fund for the 30-day or one-month period attributable to the subaccount's units. ES = expenses of the subaccount for the 30-day or one-month period. U = the average number of units outstanding. UV = the Accumulation Unit Value at the close of the last day in the 30-day or one-month period. Because of the charges and deductions imposed under the Contracts, the yield for a subaccount will be lower than the yield for the corresponding Eligible Fund. The yield on the amounts held in the subaccounts normally will fluctuate over time. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. A subaccount's actual yield is affected by the types and quality of portfolio securities held by the corresponding Eligible Fund, and its operating expenses. NET INVESTMENT FACTOR The Company determines the net investment factor ("Net Investment Factor") for each Class of subaccount on each day on which the New York Stock Exchange is open for trading as follows: (1) The Company takes the net asset value per share of the Eligible Fund held in the subaccount determined as of the close of regular trading on the New York Stock Exchange on a particular day; (2) Next, the Company adds the per share amount of any dividend or capital gains distribution made by the Eligible Fund since the close of regular trading on the New York Stock Exchange on the preceding trading day. (3) This total amount is then divided by the net asset value per share of the Eligible Fund as of the close of regular trading on the New York Stock Exchange on the preceding trading day. (4) Finally, the Company subtracts the daily charges for the Asset- Based Insurance Charge for that Class since the close of regular trading on the New York Stock Exchange on the preceding trading day. (See "Asset-Based Insurance Charge, Withdrawal Charge and Other Deductions" in the prospectus.) ANNUITY PAYMENTS At annuitization, the Contract Value is applied toward the purchase of variable annuity payments. The amount of these payments will be determined on the basis of (i) annuity purchase rates not lower than the rates set forth in the Life Income Tables contained in the Contract that reflect the age of the Payee at annuitization, (ii) the assumed investment return selected, (iii) the type of payment option selected, (iv) the investment performance of the Eligible Fund(s) selected, and (v) the Class of Contract. If you elected the Guaranteed Minimum Income Benefit Rider, you may be able to elect to receive annuity payments under that Rider (see the prospectus for more information). If you own a B Plus Class Contract and choose to annuitize under a fixed payment option during the 9-year Withdrawal Charge period, your annuity payments will be based on a different set of current annuity purchase rates than our other Classes. Additionally, our guaranteed rates for variable annuity payments will be different on B Plus Class Contracts than on other Classes. The effect of these different rates would lower your annuity payments. When a variable annuity payment option is selected, the Contract proceeds will be applied at annuity purchase rates, which vary depending on the particular option selected and the age of the Payee, to calculate the initial payment. We will fix the annuity payments in amount and duration by the annuity option selected, and by the age and sex of the Payee. Under such Contracts, a given Contract Value will produce a higher basic payment level for a male Payee than for a female Payee, reflecting the longer life expectancy of the female Payee. If the Contract Owner has selected an annuity payment option that guarantees that payments will be made for a certain number of years regardless of whether the Payee remains alive, the Contract Value will purchase lower periodic benefits than under a life contingent II-9 option. For Contracts issued in situations involving an employer-sponsored plan subject to ERISA, we fix annuity payments in amount and duration using the same criteria except we do not take into account the sex of the Payee. The amount of the initial payment is determined by applying the applicable annuity purchase rate to the amount applied from each subaccount to provide the annuity. This initial payment is converted into annuity units, the number of which remains constant. Each annuity payment is in an amount equal to that number of annuity units multiplied by the applicable annuity unit value for that payment (described below). The applicable annuity unit value for each Class and subaccount will change from day to day depending upon the investment performance of the subaccount, which in turn depends upon the investment performance of the Eligible Fund in which the subaccount invests, and applicable charges and expenses. The selection of an assumed investment return ("Assumed Investment Return") will affect both the initial payment and the amount by which subsequent payments increase or decrease. The initial payment is calculated on the assumption that the Net Investment Factors applicable to the Contract will be equivalent on an annual basis to a net investment return at the Assumed Investment Return. If this assumption is met following the date any payment is determined, then the amount of the next payment will be exactly equal to the amount of the preceding payment. If the actual Net Investment Factors are equivalent to a net investment return greater than the Assumed Investment Return, the next payment will be larger than the preceding one; if the actual Net Investment Factors are equivalent to a net investment return smaller than the Assumed Investment Return, then the next payment will be smaller than the preceding payment. Unless otherwise provided, the Assumed Investment Return will be at an annual effective rate of 3.5%. You may select as an alternative an Assumed Investment Return equal to an annual effective rate of 5%, if allowed by applicable law or regulation. A higher Assumed Investment Return will produce a higher first payment, a more slowly rising series of subsequent payments when the actual net investment performance exceeds the Assumed Investment Return, and a more rapid drop in subsequent payments when the actual net investment performance is less than the Assumed Investment Return. A lower Assumed Investment Return will produce a lower first payment, a more rapidly rising series of subsequent payments when the actual net investment performance exceeds the Assumed Investment Return, and a less rapid drop in subsequent payments when the actual net investment performance is less than the Assumed Investment Return. The number of annuity units credited under a variable payment option is determined as follows: (1) The Contract proceeds are applied at the Company's annuity purchase rates for the selected Assumed Investment Return to determine the initial payment. (The amount of Contract Value or Death Proceeds applied will be reduced by any applicable Withdrawal Charge, Contract Administrative Fee, and premium tax charge, as described in the prospectus.) (2) The number of annuity units is determined by dividing the amount of the initial payment by the applicable annuity unit value(s) for the Class next determined following the date of application of proceeds. The dollar amount of the initial payment will be determined as described above. The dollar amount of each subsequent payment is determined by multiplying the number of annuity units by the applicable annuity unit value for the Class which is determined no more than 10 days before the payment is due. The value of an annuity unit for the Class of each subaccount depends on the Assumed Investment Return and on the Net Investment Factors applicable at the time of valuation. The initial annuity unit values were set at $1.00 effective on or about the date on which shares of the corresponding Eligible Funds were first publicly available. For each Class the Net Investment Factor and, therefore, changes in the value of an annuity unit under a variable payment option, reflect the deduction of the Asset-Based Insurance Charge. (See "Net Investment Factor" above.) On a Class-specific basis, the annuity unit value for each subaccount is equal to the corresponding annuity unit value for the subaccount previously determined multiplied by the applicable Net Investment Factor for that subaccount for the New York Stock Exchange trading day then ended, and further multiplied by the assumed interest factor ("Assumed Interest Factor") for each day of the valuation period. The Assumed Interest Factor represents the daily equivalent of the Contract's annual Assumed Investment Return. In the calculation of annuity unit values, the Assumed Interest Factor has the effect of reducing the Net Investment Factor by an amount equal to the daily equivalent of the Contract's Assumed Investment Return. The result of this adjustment is that if the Net II-10 Investment Factor for a valuation period is greater (when expressed as an annual net investment return) than the Assumed Investment Return, the annuity unit value will increase. If the Net Investment Factor for the period is less (when expressed as an annual net investment return) than the Assumed Investment Return, the annuity unit value will decrease. At an Assumed Investment Return of 3.5%, the Assumed Interest Factor is .9999058. The Assumed Interest Factor for a 5% Assumed Investment Return is computed on a consistent basis. Transfers among the variable subaccounts will be made by converting the number of annuity units being transferred to the number of annuity units of the subaccount to which the transfer is made, so that the next annuity payment, if it were made at that time, would be the same amount that it would have been without the transfer. Thereafter, annuity payments will reflect changes in the value of the new annuity units. HYPOTHETICAL ILLUSTRATIONS OF ANNUITY PAYOUTS We may provide illustrations to show how variable annuity payments under each Class of the Contract change with investment performance over an extended period of time. The illustrations show on a Class-specific basis how annuity income payments would vary over time if the return on assets in the selected portfolios were a uniform gross annual rate of return of up to 10%. One of the gross rates illustrated is 0%. The values would be different from those shown if the actual returns averaged the illustrated rates but fluctuated over and under those averages throughout the years. The Class-specific illustrations reflect the Contract charges applicable to that Class of Contract with the death benefit and optional features you select, and take into account the Eligible Funds' management fees and other operating expenses. The annuity payments illustrated are on a pre-tax basis. The Federal income tax treatment of annuity payment considerations is generally described in the section of your current prospectus entitled "FEDERAL INCOME TAX CONSIDERATIONS". When part of the Contract Value has been allocated to the fixed annuity payment option, the guaranteed minimum annuity payment resulting from this allocation is also shown. The illustrated variable annuity payments are determined through the use of standard mortality tables and an assumed interest rate. If the Assumed Investment Return is 3.5%, then actual performance greater than 3.5% per year will result in increasing annuity payments and actual performance less than 3.5% per year will result in decreasing annuity payments. The Company offers an alternative Assumed Investment Return of 5%, which you may select. Fixed annuity payments remain constant. Initial annuity payments under a fixed annuity payout are generally higher than initial payments under a variable payout option. The illustrations may show the payments for more than one hypothetical constant Assumed Investment Return. Of course, actual investment performance will not be constant and may be volatile. Actual income amounts would differ from those illustrated if the actual rate of return averaged the rate shown over a period of years, but also fluctuated above or below those averages for individual contract years. As noted in the prospectus under "Investment Performance Information", we may also illustrate the growth and value of a specified purchase payment or payments prior to annuitization on a Class-specific basis based on hypothetical returns. In these illustrations we may use any assumed gross annual rate up to 12%. HISTORICAL ILLUSTRATIONS OF ANNUITY PAYOUTS We may also provide illustrations to show how variable annuity payments under each Class of the Contract change with investment performance over an extended period of time. In comparison with hypothetical illustrations based on a uniform annual rate of return, these illustrations use historical annual returns to illustrate that annuity payments vary over time based on fluctuations in annual returns. The Class-specific illustrations reflect the daily charge to the subaccounts for the applicable Asset Based Insurance Charge with the death benefit illustrated. The amounts shown in the illustrations also take into account the actual Eligible Funds' management fees and operating expenses. Actual fees and expenses of the Eligible Funds associated with your Contract may be more or less than the historical fees, will vary from year to year, and will depend on how you allocate your Contract Value. See the section in your current prospectus entitled "Fee Table" for more complete details. The annuity payments illustrated are on a pre-tax basis. The Federal income tax treatment of annuity II-11 payment considerations is generally described in the section of your current prospectus entitled "FEDERAL INCOME TAX CONSIDERATIONS." The illustrations reflect the performance from the year of inception of the selected Eligible Fund(s). The historical variable annuity payments are based on an assumed investment return. If the Assumed Investment Return (AIR)is 3.5%, then actual performance greater than 3.5% per year results in an increased annuity payment and actual performance less than 3.5% per year results in a decreased annuity payment. We offer an alternative Assumed Investment Return of 5%. An AIR of 3.5% will result in a lower initial payment than a 5% AIR. Similarly, an AIR of 5% will result in a higher initial payment than a 3.5% AIR. The illustrations are based on the current annuity purchase rates used by the Company. The rates may differ at the time you annuitize. For each Class, the illustrations show the amount of the first payment for each year shown. During each year, the payments would vary to reflect fluctuations in the actual rate of return on the Eligible Funds. II-12 THESE TABLES REFLECT ALL POSSIBLE COMBINATIONS OF CHARGES NOT SHOWN IN THE PROSPECTUS TABLES. ACCUMULATION UNIT VALUES (FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT CONDENSED FINANCIAL INFORMATION The following tables show the Accumulation Unit Values through December 31, 2008.
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Balanced Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.008630 7.018922 2,479,754 American Funds Growth Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998630 6.366400 5,509,605 American Funds Moderate Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.018630 7.693325 2,819,563 BlackRock Aggressive Growth Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 34.383594 38.158780 1,485 01/01/2005 to 12/31/2005.................... 38.158780 41.617600 10,814 01/01/2006 to 12/31/2006.................... 41.617600 43.760334 21,634 01/01/2007 to 12/31/2007.................... 43.760334 51.958765 29,799 01/01/2008 to 12/31/2008.................... 51.958765 27.790242 47,414 BlackRock Bond Income Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 3.897455 4.041298 406,052 01/01/2002 to 12/31/2002.................... 4.041298 4.317105 3,666,963 01/01/2003 to 12/31/2003.................... 4.317105 4.501514 6,337,864 01/01/2004 to 12/31/2004.................... 4.501514 4.630921 6,575,235 01/01/2005 to 12/31/2005.................... 4.630921 4.672089 7,328,710 01/01/2006 to 12/31/2006.................... 4.672089 4.805097 8,005,472 01/01/2007 to 12/31/2007.................... 4.805097 5.030850 8,006,228 01/01/2008 to 12/31/2008.................... 5.030850 4.786105 6,745,318 BlackRock Diversified Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 36.289090 39.192519 15,147 01/01/2005 to 12/31/2005.................... 39.192519 39.798130 24,061 01/01/2006 to 12/31/2006.................... 39.798130 43.332145 37,777 01/01/2007 to 12/31/2007.................... 43.332145 45.194447 59,725 01/01/2008 to 12/31/2008.................... 45.194447 33.489217 66,776 BlackRock Large Cap Core Sub-Account(12) 04/30/2007 to 12/31/2007.................... 8.094761 8.172470 481,421 01/01/2008 to 12/31/2008.................... 8.172470 5.059671 498,037 BlackRock Large Cap Sub-Account(12) (previously BlackRock Investment Trust Sub- Account (Class B)) 07/02/2001 to 12/31/2001.................... 7.273319 6.648295 19,133 01/01/2002 to 12/31/2002.................... 6.648295 4.839997 340,601 01/01/2003 to 12/31/2003.................... 4.839997 6.209409 539,609 01/01/2004 to 12/31/2004.................... 6.209409 6.781940 612,593 01/01/2005 to 12/31/2005.................... 6.781940 6.920075 557,309 01/01/2006 to 12/31/2006.................... 6.920075 7.779782 504,484 01/01/2007 to 04/27/2007.................... 7.779782 8.162884 0
II-13
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Large Cap Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.072355 1.184182 895,546 01/01/2005 to 12/31/2005.................... 1.184182 1.234503 1,745,201 01/01/2006 to 12/31/2006.................... 1.234503 1.452428 2,997,873 01/01/2007 to 12/31/2007.................... 1.452428 1.479171 4,381,495 01/01/2008 to 12/31/2008.................... 1.479171 0.947887 4,611,228 BlackRock Large Cap Value Sub-Account (Class E)(9) 05/01/2002 to 12/31/2002.................... 1.000000 0.793209 530,074 01/01/2003 to 12/31/2003.................... 0.793209 1.060741 1,729,925 01/01/2004 to 12/31/2004.................... 1.060741 1.187075 4,063,877 01/01/2005 to 12/31/2005.................... 1.187075 1.239084 3,699,894 01/01/2006 to 12/31/2006.................... 1.239084 1.458737 3,447,961 01/01/2007 to 12/31/2007.................... 1.458737 1.487653 3,051,814 01/01/2008 to 12/31/2008.................... 1.487653 0.954361 2,761,095 BlackRock Legacy Large Cap Growth Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.352775 2.580603 246,717 01/01/2005 to 12/31/2005.................... 2.580603 2.720755 696,241 01/01/2006 to 12/31/2006.................... 2.720755 2.791453 1,294,736 01/01/2007 to 12/31/2007.................... 2.791453 3.264694 1,548,400 01/01/2008 to 12/31/2008.................... 3.264694 2.041063 1,895,716 BlackRock Legacy Large Cap Growth Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 3.019092 2.759654 337,995 01/01/2002 to 12/31/2002.................... 2.759654 1.819502 2,109,027 01/01/2003 to 12/31/2003.................... 1.819502 2.424162 3,737,503 01/01/2004 to 12/31/2004.................... 2.424162 2.600016 4,380,651 01/01/2005 to 12/31/2005.................... 2.600016 2.743736 3,994,660 01/01/2006 to 12/31/2006.................... 2.743736 2.818074 3,658,537 01/01/2007 to 12/31/2007.................... 2.818074 3.298914 3,158,035 01/01/2008 to 12/31/2008.................... 3.298914 2.064503 2,749,944 BlackRock Money Market Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 2.275792 2.290238 981,708 01/01/2002 to 12/31/2002.................... 2.290238 2.288137 7,080,343 01/01/2003 to 12/31/2003.................... 2.288137 2.272253 8,178,961 01/01/2004 to 12/31/2004.................... 2.272253 2.260422 9,122,398 01/01/2005 to 12/31/2005.................... 2.260422 2.291278 8,739,491 01/01/2006 to 12/31/2006.................... 2.291278 2.365877 9,526,682 01/01/2007 to 12/31/2007.................... 2.365877 2.448810 9,799,482 01/01/2008 to 12/31/2008.................... 2.448810 2.481164 16,906,640 BlackRock Strategic Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.620412 1.824830 2,239,279 01/01/2005 to 12/31/2005.................... 1.824830 1.872688 3,863,369 01/01/2006 to 12/31/2006.................... 1.872688 2.153590 4,265,916 01/01/2007 to 12/31/2007.................... 2.153590 2.048187 4,357,648 01/01/2008 to 12/31/2008.................... 2.048187 1.242823 4,134,957
II-14
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Strategic Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.430867 1.401132 1,221,865 01/01/2002 to 12/31/2002.................... 1.401132 1.086411 10,392,688 01/01/2003 to 12/31/2003.................... 1.086411 1.608449 17,608,402 01/01/2004 to 12/31/2004.................... 1.608449 1.829325 20,138,730 01/01/2005 to 12/31/2005.................... 1.829325 1.878142 18,102,180 01/01/2006 to 12/31/2006.................... 1.878142 2.163555 15,695,178 01/01/2007 to 12/31/2007.................... 2.163555 2.060108 13,310,200 01/01/2008 to 12/31/2008.................... 2.060108 1.251164 11,254,485 Clarion Global Real Estate Sub-Account (previously Neuberger Berman Real Estate Sub-Account)(17) 05/01/2004 to 12/31/2004.................... 9.998973 12.846559 227,580 01/01/2005 to 12/31/2005.................... 12.846559 14.373064 771,922 01/01/2006 to 12/31/2006.................... 14.373064 19.529656 1,155,242 01/01/2007 to 12/31/2007.................... 19.529656 16.391631 1,230,370 01/01/2008 to 12/31/2008.................... 16.391631 9.441537 1,291,536 Davis Venture Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.898156 3.122286 2,171,954 01/01/2005 to 12/31/2005.................... 3.122286 3.391833 6,042,147 01/01/2006 to 12/31/2006.................... 3.391833 3.829521 10,492,849 01/01/2007 to 12/31/2007.................... 3.829521 3.945957 12,875,243 01/01/2008 to 12/31/2008.................... 3.945957 2.356788 15,140,648 Davis Venture Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.815820 2.673516 929,183 01/01/2002 to 12/31/2002.................... 2.673516 2.203304 6,433,899 01/01/2003 to 12/31/2003.................... 2.203304 2.844732 11,096,983 01/01/2004 to 12/31/2004.................... 2.844732 3.150396 14,010,283 01/01/2005 to 12/31/2005.................... 3.150396 3.426735 13,858,324 01/01/2006 to 12/31/2006.................... 3.426735 3.871807 12,629,968 01/01/2007 to 12/31/2007.................... 3.871807 3.992908 10,948,412 01/01/2008 to 12/31/2008.................... 3.992908 2.387277 9,640,224 FI Large Cap Sub-Account 05/01/2006 to 12/31/2006.................... 17.340954 17.560205 11,805 01/01/2007 to 12/31/2007.................... 17.560205 17.986452 22,435 01/01/2008 to 12/31/2008.................... 17.986452 9.778103 32,836 FI Mid Cap Opportunities Sub-Account(4) 05/01/2002 to 12/31/2002.................... 1.000000 0.811177 217,753 01/01/2003 to 12/31/2003.................... 0.811177 1.138274 1,041,349 01/01/2004 to 04/30/2004.................... 1.138274 1.128525 1,573,543 FI Mid Cap Opportunities Sub-Account(3) (previously Janus Mid Cap Sub-Account) 07/02/2001 to 12/31/2001.................... 1.891206 1.559925 131,929 01/01/2002 to 12/31/2002.................... 1.559925 1.091096 722,960 01/01/2003 to 12/31/2003.................... 1.091096 1.446896 1,165,323 01/01/2004 to 12/31/2004.................... 1.446896 1.669317 2,383,428 01/01/2005 to 12/31/2005.................... 1.669317 1.758487 2,431,850 01/01/2006 to 12/31/2006.................... 1.758487 1.937436 2,742,360 01/01/2007 to 12/31/2007.................... 1.937436 2.068418 2,794,431 01/01/2008 to 12/31/2008.................... 2.068418 0.910364 3,198,705
II-15
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ FI Value Leaders Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.339585 2.641623 231,769 01/01/2005 to 12/31/2005.................... 2.641623 2.881043 474,382 01/01/2006 to 12/31/2006.................... 2.881043 3.177125 978,040 01/01/2007 to 12/31/2007.................... 3.177125 3.261051 1,359,040 01/01/2008 to 12/31/2008.................... 3.261051 1.961196 1,663,788 FI Value Leaders Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.631178 2.390568 138,790 01/01/2002 to 12/31/2002.................... 2.390568 1.899012 675,852 01/01/2003 to 12/31/2003.................... 1.899012 2.376957 1,211,599 01/01/2004 to 12/31/2004.................... 2.376957 2.665706 1,518,691 01/01/2005 to 12/31/2005.................... 2.665706 2.909847 1,531,374 01/01/2006 to 12/31/2006.................... 2.909847 3.211992 1,575,063 01/01/2007 to 12/31/2007.................... 3.211992 3.300077 1,322,383 01/01/2008 to 12/31/2008.................... 3.300077 1.986910 1,215,193 Franklin Templeton Small Cap Growth Sub- Account 07/02/2001 to 12/31/2001.................... 0.953966 0.880596 333,496 01/01/2002 to 12/31/2002.................... 0.880596 0.625777 2,870,903 01/01/2003 to 12/31/2003.................... 0.625777 0.893664 5,115,288 01/01/2004 to 12/31/2004.................... 0.893664 0.980913 6,713,282 01/01/2005 to 12/31/2005.................... 0.980913 1.011299 7,945,057 01/01/2006 to 12/31/2006.................... 1.011299 1.095850 7,962,232 01/01/2007 to 12/31/2007.................... 1.095850 1.128859 7,613,501 01/01/2008 to 12/31/2008.................... 1.128859 0.654279 7,451,310 Harris Oakmark Focused Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 3.062420 3.326459 933,283 01/01/2005 to 12/31/2005.................... 3.326459 3.604168 2,607,623 01/01/2006 to 12/31/2006.................... 3.604168 3.992825 3,982,921 01/01/2007 to 12/31/2007.................... 3.992825 3.663992 3,979,113 01/01/2008 to 12/31/2008.................... 3.663992 1.949082 3,827,783 Harris Oakmark Focused Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.539245 2.662382 822,817 01/01/2002 to 12/31/2002.................... 2.662382 2.393038 6,928,769 01/01/2003 to 12/31/2003.................... 2.393038 3.130235 13,023,261 01/01/2004 to 12/31/2004.................... 3.130235 3.393317 14,512,972 01/01/2005 to 12/31/2005.................... 3.393317 3.680143 13,773,481 01/01/2006 to 12/31/2006.................... 3.680143 4.081083 11,992,186 01/01/2007 to 12/31/2007.................... 4.081083 3.748720 10,284,759 01/01/2008 to 12/31/2008.................... 3.748720 1.996133 9,023,233 Harris Oakmark International Sub-Account (Class B)(6) 05/01/2003 to 12/31/2003.................... 0.877171 1.179380 975,495 01/01/2004 to 12/31/2004.................... 1.179380 1.403737 4,403,557 01/01/2005 to 12/31/2005.................... 1.403737 1.583716 7,378,814 01/01/2006 to 12/31/2006.................... 1.583716 2.015315 11,168,276 01/01/2007 to 12/31/2007.................... 2.015315 1.967885 13,752,302 01/01/2008 to 12/31/2008.................... 1.967885 1.148829 13,603,260
II-16
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Harris Oakmark International Sub-Account (Class E)(7) 05/01/2002 to 12/31/2002.................... 1.060502 0.885421 0 01/01/2003 to 12/31/2003.................... 0.885421 1.181785 1,785,236 01/01/2004 to 12/31/2004.................... 1.181785 1.408514 2,979,589 01/01/2005 to 12/31/2005.................... 1.408514 1.589622 3,607,139 01/01/2006 to 12/31/2006.................... 1.589622 2.024973 4,402,862 01/01/2007 to 12/31/2007.................... 2.024973 1.979689 3,959,033 01/01/2008 to 12/31/2008.................... 1.979689 1.156859 3,093,649 Janus Forty Sub-Account 04/30/2007 to 12/31/2007.................... 151.435577 185.959018 5,698 01/01/2008 to 12/31/2008.................... 185.959018 106.518462 51,081 Jennison Growth Sub-Account (Class B) 05/01/2005 to 12/31/2005.................... 0.409985 0.492965 304,981 01/01/2006 to 12/31/2006.................... 0.492965 0.499145 1,280,163 01/01/2007 to 12/31/2007.................... 0.499145 0.549049 1,689,831 01/01/2008 to 12/31/2008.................... 0.549049 0.344049 2,054,526 Jennison Growth Subaccount (Class B)(8)(10) (previously Met/Putnam Voyager Sub-Account (Class B)) 05/01/2004 to 12/31/2004.................... 0.425125 0.444253 3,059 01/01/2005 to 04/30/2005.................... 0.444253 0.405064 0 Jennison Growth Sub-Account (Class E) 05/01/2005 to 12/31/2005.................... 0.410269 0.494021 3,627,443 01/01/2006 to 12/31/2006.................... 0.494021 0.500579 3,545,304 01/01/2007 to 12/31/2007.................... 0.500579 0.551393 3,391,644 01/01/2008 to 12/31/2008.................... 0.551393 0.345371 3,032,319 Jennison Growth Subaccount (Class E)(9)(10) (previously Met/Putnam Voyager Sub-Account (Class E)) 07/02/2001 to 12/31/2001.................... 0.575496 0.493571 404,240 01/01/2002 to 12/31/2002.................... 0.493571 0.346224 2,441,313 01/01/2003 to 12/31/2003.................... 0.346224 0.429804 3,861,380 01/01/2004 to 12/31/2004.................... 0.429804 0.444259 3,651,151 01/01/2005 to 04/30/2005.................... 0.444259 0.409102 0 Julius Baer International Stock Sub-Account (Class B) (formerly FI International Stock Sub-Account (Class B))(8)(15) 05/01/2004 to 12/31/2004.................... 1.205297 1.378228 644,662 01/01/2005 to 12/31/2005.................... 1.378228 1.600534 2,957,117 01/01/2006 to 12/31/2006.................... 1.600534 1.837213 5,150,017 01/01/2007 to 12/31/2007.................... 1.837213 1.996953 5,131,830 01/01/2008 to 12/31/2008.................... 1.996953 1.099600 6,034,065 Julius Baer International Stock Sub-Account (Class E) (formerly FI International Stock Sub-Account (Class E))(9)(15) 07/02/2001 to 12/31/2001.................... 1.273950 1.164741 480,562 01/01/2002 to 12/31/2002.................... 1.164741 0.947551 4,943,896 01/01/2003 to 12/31/2003.................... 0.947551 1.196835 7,993,525 01/01/2004 to 12/31/2004.................... 1.196835 1.394854 7,655,331 01/01/2005 to 12/31/2005.................... 1.394854 1.622788 6,945,884 01/01/2006 to 12/31/2006.................... 1.622788 1.863281 6,810,395 01/01/2007 to 12/31/2007.................... 1.863281 2.027781 5,699,228 01/01/2008 to 12/31/2008.................... 2.027781 1.117383 5,338,642
II-17
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Lazard Mid Cap Sub-Account 05/01/2002 to 12/31/2002.................... 1.140653 0.968377 631,334 01/01/2003 to 12/31/2003.................... 0.968377 1.206674 1,995,924 01/01/2004 to 12/31/2004.................... 1.206674 1.363269 3,127,787 01/01/2005 to 12/31/2005.................... 1.363269 1.454880 3,378,703 01/01/2006 to 12/31/2006.................... 1.454880 1.647714 3,509,898 01/01/2007 to 12/31/2007.................... 1.647714 1.583033 4,606,938 01/01/2008 to 12/31/2008.................... 1.583033 0.964552 4,493,691 Legg Mason Partners Aggressive Growth Sub- Account(5)(13) 07/02/2001 to 12/31/2001.................... 0.951972 0.775470 389,694 01/01/2002 to 12/31/2002.................... 0.775470 0.529802 2,103,838 01/01/2003 to 12/31/2003.................... 0.529802 0.679683 3,035,424 01/01/2004 to 12/31/2004.................... 0.679683 0.727873 3,243,529 01/01/2005 to 12/31/2005.................... 0.727873 0.816448 3,586,303 01/01/2006 to 12/31/2006.................... 0.816448 0.792317 4,039,293 01/01/2007 to 12/31/2007.................... 0.792317 0.800159 4,159,632 01/01/2008 to 12/31/2008.................... 0.800159 0.481605 3,942,039 Legg Mason Value Equity Sub-Account 05/01/2006 to 12/31/2006.................... 9.453340 10.144842 65,712 01/01/2007 to 12/31/2007.................... 10.144842 9.426397 97,837 01/01/2008 to 12/31/2008.................... 9.426397 4.224768 150,971 Lehman Brothers(R) Aggregate Bond Index Sub- Account 07/02/2001 to 12/31/2001.................... 1.101525 1.134100 647,303 01/01/2002 to 12/31/2002.................... 1.134100 1.231358 5,241,579 01/01/2003 to 12/31/2003.................... 1.231358 1.257179 10,255,426 01/01/2004 to 12/31/2004.................... 1.257179 1.289246 12,756,433 01/01/2005 to 12/31/2005.................... 1.289246 1.296866 14,972,721 01/01/2006 to 12/31/2006.................... 1.296866 1.329635 18,189,155 01/01/2007 to 12/31/2007.................... 1.329635 1.400491 17,054,241 01/01/2008 to 12/31/2008.................... 1.400491 1.460924 14,987,637 Loomis Sayles Small Cap Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.377286 2.696428 251,711 01/01/2005 to 12/31/2005.................... 2.696428 2.840821 991,747 01/01/2006 to 12/31/2006.................... 2.840821 3.265599 1,944,669 01/01/2007 to 12/31/2007.................... 3.265599 3.599707 2,620,745 01/01/2008 to 12/31/2008.................... 3.599707 2.273086 3,081,470 Loomis Sayles Small Cap Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.400198 2.272929 202,579 01/01/2002 to 12/31/2002.................... 2.272929 1.758876 1,641,772 01/01/2003 to 12/31/2003.................... 1.758876 2.367243 3,175,066 01/01/2004 to 12/31/2004.................... 2.367243 2.716612 3,573,319 01/01/2005 to 12/31/2005.................... 2.716612 2.864629 3,492,759 01/01/2006 to 12/31/2006.................... 2.864629 3.296126 3,517,684 01/01/2007 to 12/31/2007.................... 3.296126 3.636804 3,047,220 01/01/2008 to 12/31/2008.................... 3.636804 2.298822 2,756,341
II-18
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Lord Abbett Bond Debenture Sub-Account 07/02/2001 to 12/31/2001.................... 1.373789 1.382542 122,188 01/01/2002 to 12/31/2002.................... 1.382542 1.357536 2,439,994 01/01/2003 to 12/31/2003.................... 1.357536 1.597530 5,934,798 01/01/2004 to 12/31/2004.................... 1.597530 1.706473 8,913,662 01/01/2005 to 12/31/2005.................... 1.706473 1.710500 11,885,856 01/01/2006 to 12/31/2006.................... 1.710500 1.843841 14,305,072 01/01/2007 to 12/31/2007.................... 1.843841 1.940078 15,948,217 01/01/2008 to 12/31/2008.................... 1.940078 1.559489 13,599,419 Met/AIM Small Cap Growth Sub-Account 05/01/2002 to 12/31/2002.................... 1.123126 0.848860 430,464 01/01/2003 to 12/31/2003.................... 0.848860 1.164131 1,406,306 01/01/2004 to 12/31/2004.................... 1.164131 1.223582 1,751,151 01/01/2005 to 12/31/2005.................... 1.223582 1.308310 1,834,114 01/01/2006 to 12/31/2006.................... 1.308310 1.475354 1,980,266 01/01/2007 to 12/31/2007.................... 1.475354 1.618231 2,092,922 01/01/2008 to 12/31/2008.................... 1.618231 0.979157 1,827,763 Met/Franklin Income Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998630 7.994633 59,148 Met/Franklin Mutual Shares Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998630 6.606975 47,087 Met/Franklin Templeton Founding Strategy Sub- Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998630 7.040915 157,976 Met/Templeton Growth Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998630 6.576079 16,265 MetLife Aggressive Sub-Account 05/01/2005 to 12/31/2005.................... 9.998973 11.161798 27,787 01/01/2006 to 12/31/2006.................... 11.161798 12.749671 442,317 01/01/2007 to 12/31/2007.................... 12.749671 13.002022 1,153,077 01/01/2008 to 12/31/2008.................... 13.002022 7.646365 1,224,589 MetLife Conservative Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998973 10.310111 130,758 01/01/2006 to 12/31/2006.................... 10.310111 10.884040 241,473 01/01/2007 to 12/31/2007.................... 10.884040 11.346907 620,962 01/01/2008 to 12/31/2008.................... 11.346907 9.593358 1,281,491 MetLife Conservative to Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998973 10.528255 284,700 01/01/2006 to 12/31/2006.................... 10.528255 11.377529 1,164,090 01/01/2007 to 12/31/2007.................... 11.377529 11.776000 2,964,511 01/01/2008 to 12/31/2008.................... 11.776000 9.117849 4,841,696 MetLife Mid Cap Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.052532 1.032136 223,464 01/01/2002 to 12/31/2002.................... 1.032136 0.865315 2,492,483 01/01/2003 to 12/31/2003.................... 0.865315 1.149827 5,063,817 01/01/2004 to 12/31/2004.................... 1.149827 1.314011 6,327,264 01/01/2005 to 12/31/2005.................... 1.314011 1.453731 7,243,058 01/01/2006 to 12/31/2006.................... 1.453731 1.576792 7,625,919 01/01/2007 to 12/31/2007.................... 1.576792 1.674142 7,341,025 01/01/2008 to 12/31/2008.................... 1.674142 1.051844 8,043,722
II-19
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MetLife Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998973 10.759284 707,709 01/01/2006 to 12/31/2006.................... 10.759284 11.884012 4,525,389 01/01/2007 to 12/31/2007.................... 11.884012 12.245653 12,436,101 01/01/2008 to 12/31/2008.................... 12.245653 8.630461 18,654,307 MetLife Moderate to Aggressive Allocation Sub- Account 05/01/2005 to 12/31/2005.................... 9.998973 10.985367 485,857 01/01/2006 to 12/31/2006.................... 10.985367 12.391608 4,560,146 01/01/2007 to 12/31/2007.................... 12.391608 12.707971 15,881,886 01/01/2008 to 12/31/2008.................... 12.707971 8.142692 20,978,386 MetLife Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 3.850101 3.569420 179,083 01/01/2002 to 12/31/2002.................... 3.569420 2.731332 1,942,937 01/01/2003 to 12/31/2003.................... 2.731332 3.449245 3,653,650 01/01/2004 to 12/31/2004.................... 3.449245 3.756416 4,668,415 01/01/2005 to 12/31/2005.................... 3.756416 3.872216 5,058,223 01/01/2006 to 12/31/2006.................... 3.872216 4.404993 5,536,674 01/01/2007 to 12/31/2007.................... 4.404993 4.566380 4,668,980 01/01/2008 to 12/31/2008.................... 4.566380 2.829263 4,608,552 MFS(R) Investors Trust Sub-Account (Class B)(11) 05/01/2004 to 12/31/2004.................... 7.748492 8.598035 12,295 01/01/2005 to 12/31/2005.................... 8.598035 9.077584 28,780 01/01/2006 to 04/30/2006.................... 9.077584 9.491938 30,412 MFS(R) Investors Trust Sub-Account (Class E)(11) 07/02/2001 to 12/31/2001.................... 0.897721 0.832858 120,423 01/01/2002 to 12/31/2002.................... 0.832858 0.656026 1,530,612 01/01/2003 to 12/31/2003.................... 0.656026 0.787176 2,549,167 01/01/2004 to 12/31/2004.................... 0.787176 0.865043 4,277,793 01/01/2005 to 12/31/2005.................... 0.865043 0.915101 3,742,961 01/01/2006 to 04/30/2006.................... 0.915101 0.957183 0 MFS(R) Investors Trust Sub-Account(2)(11) (previously MFS(R) Research Managers Sub- Account) 07/02/2001 to 12/31/2001.................... 0.979378 0.879571 122,347 01/01/2002 to 12/31/2002.................... 0.879571 0.658378 802,087 01/01/2003 to 12/31/2003.................... 0.658378 0.805710 1,541,735 01/01/2004 to 04/30/2004.................... 0.805710 0.820699 1,666,173 MFS(R) Research International Sub-Account 07/02/2001 to 12/31/2001.................... 0.927136 0.848963 277,020 01/01/2002 to 12/31/2002.................... 0.848963 0.739466 2,846,609 01/01/2003 to 12/31/2003.................... 0.739466 0.964297 5,307,770 01/01/2004 to 12/31/2004.................... 0.964297 1.138554 6,751,783 01/01/2005 to 12/31/2005.................... 1.138554 1.309109 8,044,802 01/01/2006 to 12/31/2006.................... 1.309109 1.636329 9,531,123 01/01/2007 to 12/31/2007.................... 1.636329 1.830665 11,227,223 01/01/2008 to 12/31/2008.................... 1.830665 1.041955 14,239,333 MFS(R) Total Return Sub-Account 05/01/2004 to 12/31/2004.................... 3.771594 4.105109 2,827,816 01/01/2005 to 12/31/2005.................... 4.105109 4.169836 3,539,599 01/01/2006 to 12/31/2006.................... 4.169836 4.609613 3,776,779 01/01/2007 to 12/31/2007.................... 4.609613 4.739479 4,097,309 01/01/2008 to 12/31/2008.................... 4.739479 3.634454 3,543,635
II-20
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MFS(R) Value Sub-Account (Class B) (formerly Harris Oakmark Large Cap Value Sub-Account (Class B))(8)(16) 05/01/2004 to 12/31/2004.................... 1.223470 1.321605 1,638,566 01/01/2005 to 12/31/2005.................... 1.321605 1.283692 4,974,100 01/01/2006 to 12/31/2006.................... 1.283692 1.493936 7,079,420 01/01/2007 to 12/31/2007.................... 1.493936 1.415881 7,764,303 01/01/2008 to 12/31/2008.................... 1.415881 0.926991 8,306,094 MFS(R) Value Sub-Account (Class E) (formerly Harris Oakmark Large Cap Value Sub-Account (Class E))(9)(16) 05/01/2002 to 12/31/2002.................... 1.190228 0.977213 1,679,195 01/01/2003 to 12/31/2003.................... 0.977213 1.209630 5,837,482 01/01/2004 to 12/31/2004.................... 1.209630 1.329439 7,243,365 01/01/2005 to 12/31/2005.................... 1.329439 1.292717 6,792,026 01/01/2006 to 12/31/2006.................... 1.292717 1.505649 6,028,854 01/01/2007 to 12/31/2007.................... 1.505649 1.428431 5,312,067 01/01/2008 to 12/31/2008.................... 1.428431 0.936508 4,685,072 MFS(R) Total Return Sub-Account(1) (previously Balanced Sub-Account) 07/02/2001 to 12/31/2001.................... 1.514247 1.488083 360,833 01/01/2002 to 12/31/2002.................... 1.488083 1.267902 2,635,315 01/01/2003 to 12/31/2003.................... 1.267902 1.497971 4,565,858 01/01/2004 to 04/30/2004.................... 1.497971 1.485622 5,151,293 Morgan Stanley EAFE(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 0.948368 0.855536 209,511 01/01/2002 to 12/31/2002.................... 0.855536 0.703293 2,746,997 01/01/2003 to 12/31/2003.................... 0.703293 0.952936 6,042,129 01/01/2004 to 12/31/2004.................... 0.952936 1.122429 8,204,327 01/01/2005 to 12/31/2005.................... 1.122429 1.251881 9,180,604 01/01/2006 to 12/31/2006.................... 1.251881 1.550980 10,374,851 01/01/2007 to 12/31/2007.................... 1.550980 1.692742 10,904,460 01/01/2008 to 12/31/2008.................... 1.692742 0.966221 11,913,657 Neuberger Berman Mid Cap Value Sub-Account 07/02/2001 to 12/31/2001.................... 1.557054 1.507861 78,495 01/01/2002 to 12/31/2002.................... 1.507861 1.341513 1,245,456 01/01/2003 to 12/31/2003.................... 1.341513 1.803959 2,602,170 01/01/2004 to 12/31/2004.................... 1.803959 2.185197 5,612,321 01/01/2005 to 12/31/2005.................... 2.185197 2.415539 7,373,295 01/01/2006 to 12/31/2006.................... 2.415539 2.652742 8,429,634 01/01/2007 to 12/31/2007.................... 2.652742 2.703203 9,391,847 01/01/2008 to 12/31/2008.................... 2.703203 1.402108 9,923,370 Oppenheimer Capital Appreciation Sub-Account 05/01/2005 to 12/31/2005.................... 7.998185 8.693182 44,329 01/01/2006 to 12/31/2006.................... 8.693182 9.239346 92,950 01/01/2007 to 12/31/2007.................... 9.239346 10.427689 142,163 01/01/2008 to 12/31/2008.................... 10.427689 5.566975 167,099 Oppenheimer Global Equity Sub-Account 05/01/2004 to 12/31/2004.................... 12.890720 14.884624 9,455 01/01/2005 to 12/31/2005.................... 14.884624 17.049221 102,857 01/01/2006 to 12/31/2006.................... 17.049221 19.591226 263,366 01/01/2007 to 12/31/2007.................... 19.591226 20.558001 316,449 01/01/2008 to 12/31/2008.................... 20.558001 12.067810 328,343
II-21
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ PIMCO Inflation Protection Bond Sub-Account 05/01/2006 to 12/31/2006.................... 11.045105 11.164159 66,101 01/01/2007 to 12/31/2007.................... 11.164159 12.215182 182,408 01/01/2008 to 12/31/2008.................... 12.215182 11.231981 1,054,294 PIMCO Total Return Sub-Account 07/02/2001 to 12/31/2001.................... 1.008155 1.055126 1,119,475 01/01/2002 to 12/31/2002.................... 1.055126 1.138865 16,599,383 01/01/2003 to 12/31/2003.................... 1.138865 1.173147 32,638,246 01/01/2004 to 12/31/2004.................... 1.173147 1.216239 40,652,548 01/01/2005 to 12/31/2005.................... 1.216239 1.228169 48,734,602 01/01/2006 to 12/31/2006.................... 1.228169 1.267751 55,367,514 01/01/2007 to 12/31/2007.................... 1.267751 1.346621 57,456,286 01/01/2008 to 12/31/2008.................... 1.346621 1.335298 53,339,495 RCM Technology Sub-Account 07/02/2001 to 12/31/2001.................... 0.758331 0.610204 94,456 01/01/2002 to 12/31/2002.................... 0.610204 0.296896 1,890,616 01/01/2003 to 12/31/2003.................... 0.296896 0.462007 5,227,797 01/01/2004 to 12/31/2004.................... 0.462007 0.436579 6,922,678 01/01/2005 to 12/31/2005.................... 0.436579 0.478666 6,389,625 01/01/2006 to 12/31/2006.................... 0.478666 0.498010 5,891,296 01/01/2007 to 12/31/2007.................... 0.498010 0.646824 6,439,657 01/01/2008 to 12/31/2008.................... 0.646824 0.354822 6,324,933 Russell 2000(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.223058 1.190110 277,659 01/01/2002 to 12/31/2002.................... 1.190110 0.932989 2,510,267 01/01/2003 to 12/31/2003.................... 0.932989 1.342601 5,066,094 01/01/2004 to 12/31/2004.................... 1.342601 1.556617 6,724,020 01/01/2005 to 12/31/2005.................... 1.556617 1.603443 7,566,069 01/01/2006 to 12/31/2006.................... 1.603443 1.861978 7,837,846 01/01/2007 to 12/31/2007.................... 1.861978 1.807382 7,611,161 01/01/2008 to 12/31/2008.................... 1.807382 1.183877 7,487,946 SSgA Growth and Income ETF Sub-Account (formerly Cyclical Growth and Income ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.522679 11.181857 16,259 01/01/2007 to 12/31/2007.................... 11.181857 11.638374 36,637 01/01/2008 to 12/31/2008.................... 11.638374 8.613162 122,202 SSgA Growth ETF Sub-Account (formerly Cyclical Growth ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.713720 11.437139 34,142 01/01/2007 to 12/31/2007.................... 11.437139 11.928919 59,977 01/01/2008 to 12/31/2008.................... 11.928919 7.896564 103,666 T. Rowe Price Large Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.125926 1.221288 978,390 01/01/2005 to 12/31/2005.................... 1.221288 1.282478 4,973,054 01/01/2006 to 12/31/2006.................... 1.282478 1.429754 6,945,697 01/01/2007 to 12/31/2007.................... 1.429754 1.541110 8,339,019 01/01/2008 to 12/31/2008.................... 1.541110 0.882672 8,941,806
II-22
1.25% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ T. Rowe Price Mid Cap Growth Sub-Account 07/02/2001 to 12/31/2001.................... 0.931494 0.824824 342,075 01/01/2002 to 12/31/2002.................... 0.824824 0.455853 2,938,916 01/01/2003 to 12/31/2003.................... 0.455853 0.615144 6,230,898 01/01/2004 to 12/31/2004.................... 0.615144 0.715759 12,892,638 01/01/2005 to 12/31/2005.................... 0.715759 0.810287 17,133,576 01/01/2006 to 12/31/2006.................... 0.810287 0.849577 20,689,731 01/01/2007 to 12/31/2007.................... 0.849577 0.986943 22,527,544 01/01/2008 to 12/31/2008.................... 0.986943 0.587233 23,879,613 T. Rowe Price Small Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.251553 1.335628 110,140 01/01/2005 to 12/31/2005.................... 1.335628 1.460425 493,836 01/01/2006 to 12/31/2006.................... 1.460425 1.494666 1,539,292 01/01/2007 to 12/31/2007.................... 1.494666 1.616706 2,069,225 01/01/2008 to 12/31/2008.................... 1.616706 1.016726 2,681,339 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.892562 2.008364 1,521,011 01/01/2005 to 12/31/2005.................... 2.008364 2.034295 4,035,933 01/01/2006 to 12/31/2006.................... 2.034295 2.106035 6,894,191 01/01/2007 to 12/31/2007.................... 2.106035 2.156764 9,339,891 01/01/2008 to 12/31/2008.................... 2.156764 1.805664 8,481,623 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(9) 07/02/2001 to 12/31/2001.................... 1.568445 1.605937 287,447 01/01/2002 to 12/31/2002.................... 1.605937 1.734481 3,519,888 01/01/2003 to 12/31/2003.................... 1.734481 1.926993 10,119,058 01/01/2004 to 12/31/2004.................... 1.926993 2.026247 11,481,473 01/01/2005 to 12/31/2005.................... 2.026247 2.054618 11,641,713 01/01/2006 to 12/31/2006.................... 2.054618 2.127675 9,554,380 01/01/2007 to 12/31/2007.................... 2.127675 2.182804 9,028,855 01/01/2008 to 12/31/2008.................... 2.182804 1.829815 6,919,792 Western Asset Management U.S. Government Sub- Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.564295 1.603184 2,078,192 01/01/2005 to 12/31/2005.................... 1.603184 1.605346 7,317,339 01/01/2006 to 12/31/2006.................... 1.605346 1.647525 11,261,412 01/01/2007 to 12/31/2007.................... 1.647525 1.692572 11,740,506 01/01/2008 to 12/31/2008.................... 1.692572 1.662594 10,725,573 Western Asset Management U.S. Government Sub- Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.448887 1.493541 847,646 01/01/2002 to 12/31/2002.................... 1.493541 1.587441 8,277,460 01/01/2003 to 12/31/2003.................... 1.587441 1.591992 12,674,903 01/01/2004 to 12/31/2004.................... 1.591992 1.616267 12,870,374 01/01/2005 to 12/31/2005.................... 1.616267 1.621457 11,846,856 01/01/2006 to 12/31/2006.................... 1.621457 1.665022 10,367,600 01/01/2007 to 12/31/2007.................... 1.665022 1.712175 9,246,950 01/01/2008 to 12/31/2008.................... 1.712175 1.683611 7,437,793
II-23
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Bond Sub-Account 05/01/2006 to 12/31/2006..................... 14.692602 15.412255 206,337 01/01/2007 to 12/31/2007..................... 15.412255 15.686896 874,300 01/01/2008 to 12/31/2008..................... 15.686896 14.008133 1,018,827 American Funds Global Small Capitalization Sub- Account 07/02/2001 to 12/31/2001..................... 1.463224 1.350000 295,927 01/01/2002 to 12/31/2002..................... 1.350000 1.076512 2,760,128 01/01/2003 to 12/31/2003..................... 1.076512 1.628167 4,912,135 01/01/2004 to 12/31/2004..................... 1.628167 1.938776 7,451,246 01/01/2005 to 12/31/2005..................... 1.938776 2.394218 10,097,133 01/01/2006 to 12/31/2006..................... 2.394218 2.926019 12,290,858 01/01/2007 to 12/31/2007..................... 2.926019 3.499836 13,271,602 01/01/2008 to 12/31/2008..................... 3.499836 1.602339 14,771,356 American Funds Growth Sub-Account 07/02/2001 to 12/31/2001..................... 12.760851 11.278829 168,238 01/01/2002 to 12/31/2002..................... 11.278829 8.393632 1,874,264 01/01/2003 to 12/31/2003..................... 8.393632 11.312295 3,772,092 01/01/2004 to 12/31/2004..................... 11.312295 12.536032 5,226,860 01/01/2005 to 12/31/2005..................... 12.536032 14.349601 6,391,197 01/01/2006 to 12/31/2006..................... 14.349601 15.580943 7,344,549 01/01/2007 to 12/31/2007..................... 15.580943 17.242941 7,406,684 01/01/2008 to 12/31/2008..................... 17.242941 9.516563 7,930,190 American Funds Growth-Income Sub-Account 07/02/2001 to 12/31/2001..................... 8.647461 8.389090 190,117 01/01/2002 to 12/31/2002..................... 8.389090 6.748146 2,226,755 01/01/2003 to 12/31/2003..................... 6.748146 8.803389 4,231,229 01/01/2004 to 12/31/2004..................... 8.803389 9.571662 5,903,453 01/01/2005 to 12/31/2005..................... 9.571662 9.979509 7,052,462 01/01/2006 to 12/31/2006..................... 9.979509 11.326003 7,204,668 01/01/2007 to 12/31/2007..................... 11.326003 11.719080 7,191,793 01/01/2008 to 12/31/2008..................... 11.719080 7.174678 7,297,775
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Balanced Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.008520 7.014085 165,145 American Funds Growth Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998521 6.362009 903,057 American Funds Moderate Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.018520 7.688028 172,061 BlackRock Aggressive Growth Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 33.837186 37.527489 2,359 01/01/2005 to 12/31/2005.................... 37.527489 40.888321 4,987 01/01/2006 to 12/31/2006.................... 40.888321 42.950645 11,241 01/01/2007 to 12/31/2007.................... 42.950645 50.946162 17,729 01/01/2008 to 12/31/2008.................... 50.946162 27.221248 24,830
II-24
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Bond Income Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 3.828491 3.967810 217,116 01/01/2002 to 12/31/2002.................... 3.967810 4.234371 1,818,388 01/01/2003 to 12/31/2003.................... 4.234371 4.410821 2,755,116 01/01/2004 to 12/31/2004.................... 4.410821 4.533074 3,197,295 01/01/2005 to 12/31/2005.................... 4.533074 4.568816 3,530,909 01/01/2006 to 12/31/2006.................... 4.568816 4.694201 3,643,211 01/01/2007 to 12/31/2007.................... 4.694201 4.909808 3,437,166 01/01/2008 to 12/31/2008.................... 4.909808 4.666270 2,626,961 BlackRock Diversified Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 35.648033 38.474665 1,897 01/01/2005 to 12/31/2005.................... 38.474665 39.030259 3,967 01/01/2006 to 12/31/2006.................... 39.030259 42.453752 5,881 01/01/2007 to 12/31/2007.................... 42.453752 44.233821 8,024 01/01/2008 to 12/31/2008.................... 44.233821 32.744497 7,097 BlackRock Large Cap Core Sub-Account(12) 04/30/2007 to 12/31/2007.................... 7.903960 7.974482 243,509 01/01/2008 to 12/31/2008.................... 7.974482 4.932134 228,768 BlackRock Large Cap Sub-Account(12) (previously BlackRock Investment Trust Sub- Account (Class B)) 07/02/2001 to 12/31/2001.................... 7.143398 6.526287 20,628 01/01/2002 to 12/31/2002.................... 6.526287 4.746421 124,713 01/01/2003 to 12/31/2003.................... 4.746421 6.083269 241,556 01/01/2004 to 12/31/2004.................... 6.083269 6.637515 327,032 01/01/2005 to 12/31/2005.................... 6.637515 6.765961 315,340 01/01/2006 to 12/31/2006.................... 6.765961 7.598944 295,699 01/01/2007 to 04/27/2007.................... 7.598944 7.970544 0 BlackRock Large Cap Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.070204 1.181023 222,093 01/01/2005 to 12/31/2005.................... 1.181023 1.229983 601,557 01/01/2006 to 12/31/2006.................... 1.229983 1.445668 1,017,651 01/01/2007 to 12/31/2007.................... 1.445668 1.470807 1,351,592 01/01/2008 to 12/31/2008.................... 1.470807 0.941580 1,464,805 BlackRock Large Cap Value Sub-Account (Class E)(9) 05/01/2002 to 12/31/2002.................... 1.000000 0.792676 149,186 01/01/2003 to 12/31/2003.................... 0.792676 1.058975 633,797 01/01/2004 to 12/31/2004.................... 1.058975 1.183911 1,208,221 01/01/2005 to 12/31/2005.................... 1.183911 1.234551 1,085,453 01/01/2006 to 12/31/2006.................... 1.234551 1.451953 1,140,687 01/01/2007 to 12/31/2007.................... 1.451953 1.479247 1,166,714 01/01/2008 to 12/31/2008.................... 1.479247 0.948015 975,371 BlackRock Legacy Large Cap Growth Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.330500 2.554477 54,378 01/01/2005 to 12/31/2005.................... 2.554477 2.690527 206,150 01/01/2006 to 12/31/2006.................... 2.690527 2.757686 263,360 01/01/2007 to 12/31/2007.................... 2.757686 3.221962 302,111 01/01/2008 to 12/31/2008.................... 3.221962 2.012323 355,042
II-25
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Legacy Large Cap Growth Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.999024 2.739942 165,746 01/01/2002 to 12/31/2002.................... 2.739942 1.804690 1,376,184 01/01/2003 to 12/31/2003.................... 1.804690 2.402031 2,242,123 01/01/2004 to 12/31/2004.................... 2.402031 2.573699 2,420,784 01/01/2005 to 12/31/2005.................... 2.573699 2.713259 2,079,100 01/01/2006 to 12/31/2006.................... 2.713259 2.783993 1,829,333 01/01/2007 to 12/31/2007.................... 2.783993 3.255744 1,808,823 01/01/2008 to 12/31/2008.................... 3.255744 2.035439 1,666,543 BlackRock Money Market Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 2.235521 2.248592 869,330 01/01/2002 to 12/31/2002.................... 2.248592 2.244279 2,741,837 01/01/2003 to 12/31/2003.................... 2.244279 2.226473 4,235,857 01/01/2004 to 12/31/2004.................... 2.226473 2.212661 3,325,994 01/01/2005 to 12/31/2005.................... 2.212661 2.240630 3,111,335 01/01/2006 to 12/31/2006.................... 2.240630 2.311275 2,932,154 01/01/2007 to 12/31/2007.................... 2.311275 2.389891 3,163,873 01/01/2008 to 12/31/2008.................... 2.389891 2.419040 4,663,226 BlackRock Strategic Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.614218 1.816649 923,895 01/01/2005 to 12/31/2005.................... 1.816649 1.862435 1,599,991 01/01/2006 to 12/31/2006.................... 1.862435 2.139664 1,823,090 01/01/2007 to 12/31/2007.................... 2.139664 2.032896 1,845,494 01/01/2008 to 12/31/2008.................... 2.032896 1.232305 1,721,266 BlackRock Strategic Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.429451 1.399052 558,279 01/01/2002 to 12/31/2002.................... 1.399052 1.083716 5,041,638 01/01/2003 to 12/31/2003.................... 1.083716 1.602866 8,227,912 01/01/2004 to 12/31/2004.................... 1.602866 1.821151 9,465,838 01/01/2005 to 12/31/2005.................... 1.821151 1.867886 8,568,287 01/01/2006 to 12/31/2006.................... 1.867886 2.149597 7,641,077 01/01/2007 to 12/31/2007.................... 2.149597 2.044760 6,645,180 01/01/2008 to 12/31/2008.................... 2.044760 1.240595 5,795,912 Clarion Global Real Estate Sub-Account (previously Neuberger Berman Real Estate Sub-Account)(17) 05/01/2004 to 12/31/2004.................... 9.998890 12.837948 110,329 01/01/2005 to 12/31/2005.................... 12.837948 14.349118 275,585 01/01/2006 to 12/31/2006.................... 14.349118 19.477708 453,846 01/01/2007 to 12/31/2007.................... 19.477708 16.331587 511,634 01/01/2008 to 12/31/2008.................... 16.331587 9.397492 486,586 Davis Venture Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.870725 3.090685 662,509 01/01/2005 to 12/31/2005.................... 3.090685 3.354159 1,845,396 01/01/2006 to 12/31/2006.................... 3.354159 3.783210 2,982,387 01/01/2007 to 12/31/2007.................... 3.783210 3.894320 3,433,602 01/01/2008 to 12/31/2008.................... 3.894320 2.323608 3,502,048
II-26
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Davis Venture Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.797107 2.654425 441,860 01/01/2002 to 12/31/2002.................... 2.654425 2.185385 3,544,762 01/01/2003 to 12/31/2003.................... 2.185385 2.818779 6,131,831 01/01/2004 to 12/31/2004.................... 2.818779 3.118527 6,895,437 01/01/2005 to 12/31/2005.................... 3.118527 3.388693 6,611,460 01/01/2006 to 12/31/2006.................... 3.388693 3.825009 6,238,689 01/01/2007 to 12/31/2007.................... 3.825009 3.940683 5,566,242 01/01/2008 to 12/31/2008.................... 3.940683 2.353684 5,130,878 FI Large Cap Sub-Account 05/01/2006 to 12/31/2006.................... 17.174056 17.379668 4,116 01/01/2007 to 12/31/2007.................... 17.379668 17.783641 6,138 01/01/2008 to 12/31/2008.................... 17.783641 9.658129 6,193 FI Mid Cap Opportunities Sub-Account(4) 05/01/2002 to 12/31/2002.................... 1.000000 0.810632 97,989 01/01/2003 to 12/31/2003.................... 0.810632 1.136381 390,452 01/01/2004 to 04/30/2004.................... 1.136381 1.126278 732,700 FI Mid Cap Opportunities Sub-Account(3) (previously Janus Mid Cap Sub-Account) 07/02/2001 to 12/31/2001.................... 1.883025 1.552394 61,360 01/01/2002 to 12/31/2002.................... 1.552394 1.084738 353,346 01/01/2003 to 12/31/2003.................... 1.084738 1.437020 558,019 01/01/2004 to 12/31/2004.................... 1.437020 1.656261 1,248,080 01/01/2005 to 12/31/2005.................... 1.656261 1.742997 1,176,022 01/01/2006 to 12/31/2006.................... 1.742997 1.918455 1,284,135 01/01/2007 to 12/31/2007.................... 1.918455 2.046095 1,146,092 01/01/2008 to 12/31/2008.................... 2.046095 0.899632 1,230,000 FI Value Leaders Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.313951 2.610948 23,165 01/01/2005 to 12/31/2005.................... 2.610948 2.844750 107,176 01/01/2006 to 12/31/2006.................... 2.844750 3.133975 252,821 01/01/2007 to 12/31/2007.................... 3.133975 3.213529 334,704 01/01/2008 to 12/31/2008.................... 3.213529 1.930673 277,483 FI Value Leaders Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.609765 2.369929 44,802 01/01/2002 to 12/31/2002.................... 2.369929 1.880732 386,064 01/01/2003 to 12/31/2003.................... 1.880732 2.351730 802,697 01/01/2004 to 12/31/2004.................... 2.351730 2.634773 807,025 01/01/2005 to 12/31/2005.................... 2.634773 2.873216 751,618 01/01/2006 to 12/31/2006.................... 2.873216 3.168397 792,595 01/01/2007 to 12/31/2007.................... 3.168397 3.252015 715,382 01/01/2008 to 12/31/2008.................... 3.252015 1.956005 558,191 Franklin Templeton Small Cap Growth Sub- Account 07/02/2001 to 12/31/2001.................... 0.953804 0.880011 258,180 01/01/2002 to 12/31/2002.................... 0.880011 0.624749 1,365,065 01/01/2003 to 12/31/2003.................... 0.624749 0.891300 2,155,256 01/01/2004 to 12/31/2004.................... 0.891300 0.977339 2,642,995 01/01/2005 to 12/31/2005.................... 0.977339 1.006611 2,730,470 01/01/2006 to 12/31/2006.................... 1.006611 1.089682 2,764,354 01/01/2007 to 12/31/2007.................... 1.089682 1.121378 2,635,921 01/01/2008 to 12/31/2008.................... 1.121378 0.649289 2,367,434
II-27
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Harris Oakmark Focused Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 3.028873 3.287838 403,355 01/01/2005 to 12/31/2005.................... 3.287838 3.558773 915,002 01/01/2006 to 12/31/2006.................... 3.558773 3.938606 1,205,771 01/01/2007 to 12/31/2007.................... 3.938606 3.610604 1,281,844 01/01/2008 to 12/31/2008.................... 3.610604 1.918751 1,305,553 Harris Oakmark Focused Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.518576 2.639391 401,779 01/01/2002 to 12/31/2002.................... 2.639391 2.370004 3,706,789 01/01/2003 to 12/31/2003.................... 2.370004 3.097009 6,468,059 01/01/2004 to 12/31/2004.................... 3.097009 3.353935 7,196,581 01/01/2005 to 12/31/2005.................... 3.353935 3.633810 6,767,545 01/01/2006 to 12/31/2006.................... 3.633810 4.025687 5,792,113 01/01/2007 to 12/31/2007.................... 4.025687 3.694118 5,021,337 01/01/2008 to 12/31/2008.................... 3.694118 1.965080 4,442,394 Harris Oakmark International Sub-Account (Class B)(6) 05/01/2003 to 12/31/2003.................... 0.875803 1.176753 580,830 01/01/2004 to 12/31/2004.................... 1.176753 1.399207 1,886,163 01/01/2005 to 12/31/2005.................... 1.399207 1.577033 3,772,112 01/01/2006 to 12/31/2006.................... 1.577033 2.004813 5,385,433 01/01/2007 to 12/31/2007.................... 2.004813 1.955662 5,916,229 01/01/2008 to 12/31/2008.................... 1.955662 1.140547 5,256,145 Harris Oakmark International Sub-Account (Class E)(7) 05/01/2002 to 12/31/2002.................... 1.059909 0.884331 32,461 01/01/2003 to 12/31/2003.................... 0.884331 1.179161 558,061 01/01/2004 to 12/31/2004.................... 1.179161 1.403980 1,235,141 01/01/2005 to 12/31/2005.................... 1.403980 1.582926 1,670,051 01/01/2006 to 12/31/2006.................... 1.582926 2.014435 1,956,424 01/01/2007 to 12/31/2007.................... 2.014435 1.967407 2,071,297 01/01/2008 to 12/31/2008.................... 1.967407 1.148527 1,598,579 Janus Forty Sub-Account 04/30/2007 to 12/31/2007.................... 147.677871 181.223037 4,374 01/01/2008 to 12/31/2008.................... 181.223037 103.701306 17,538 Jennison Growth Sub-Account (Class B) 05/01/2005 to 12/31/2005.................... 0.407936 0.490176 94,714 01/01/2006 to 12/31/2006.................... 0.490176 0.495826 200,531 01/01/2007 to 12/31/2007.................... 0.495826 0.544850 265,792 01/01/2008 to 12/31/2008.................... 0.544850 0.341075 472,844 Jennison Growth Subaccount (Class B)(8)(10) (previously Met/Putnam Voyager Sub-Account (Class B)) 05/01/2004 to 12/31/2004.................... 0.423422 0.442180 32,719 01/01/2005 to 04/30/2005.................... 0.442180 0.403043 0 Jennison Growth Sub-Account (Class E) 05/01/2005 to 12/31/2005.................... 0.408221 0.491229 1,720,408 01/01/2006 to 12/31/2006.................... 0.491229 0.497254 1,596,002 01/01/2007 to 12/31/2007.................... 0.497254 0.547180 1,215,905 01/01/2008 to 12/31/2008.................... 0.547180 0.342388 1,055,287
II-28
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Jennison Growth Subaccount (Class E)(9)(10) (previously Met/Putnam Voyager Sub-Account (Class E)) 07/02/2001 to 12/31/2001.................... 0.574821 0.492742 112,128 01/01/2002 to 12/31/2002.................... 0.492742 0.345299 1,428,969 01/01/2003 to 12/31/2003.................... 0.345299 0.428230 1,722,848 01/01/2004 to 12/31/2004.................... 0.428230 0.442188 1,672,132 01/01/2005 to 04/30/2005.................... 0.442188 0.407063 0 Julius Baer International Stock Sub-Account (Class B) (formerly FI International Stock Sub-Account (Class B))(8)(15) 05/01/2004 to 12/31/2004.................... 1.189706 1.359497 392,318 01/01/2005 to 12/31/2005.................... 1.359497 1.577210 883,380 01/01/2006 to 12/31/2006.................... 1.577210 1.808635 1,050,578 01/01/2007 to 12/31/2007.................... 1.808635 1.963914 1,298,359 01/01/2008 to 12/31/2008.................... 1.963914 1.080322 1,269,393 Julius Baer International Stock Sub-Account (Class E) (formerly FI International Stock Sub-Account (Class E))(9)(15) 07/02/2001 to 12/31/2001.................... 1.261053 1.152377 239,674 01/01/2002 to 12/31/2002.................... 1.152377 0.936556 2,208,624 01/01/2003 to 12/31/2003.................... 0.936556 1.181769 3,422,333 01/01/2004 to 12/31/2004.................... 1.181769 1.375915 3,077,245 01/01/2005 to 12/31/2005.................... 1.375915 1.599161 2,685,807 01/01/2006 to 12/31/2006.................... 1.599161 1.834322 2,271,385 01/01/2007 to 12/31/2007.................... 1.834322 1.994261 1,961,979 01/01/2008 to 12/31/2008.................... 1.994261 1.097808 1,946,427 Lazard Mid Cap Sub-Account 05/01/2002 to 12/31/2002.................... 1.140016 0.967184 213,941 01/01/2003 to 12/31/2003.................... 0.967184 1.203982 814,656 01/01/2004 to 12/31/2004.................... 1.203982 1.358864 985,057 01/01/2005 to 12/31/2005.................... 1.358864 1.448735 958,798 01/01/2006 to 12/31/2006.................... 1.448735 1.639120 828,282 01/01/2007 to 12/31/2007.................... 1.639120 1.573194 1,032,533 01/01/2008 to 12/31/2008.................... 1.573194 0.957594 1,005,787 Legg Mason Partners Aggressive Growth Sub- Account(5)(13) 07/02/2001 to 12/31/2001.................... 0.951810 0.774950 212,536 01/01/2002 to 12/31/2002.................... 0.774950 0.528917 890,937 01/01/2003 to 12/31/2003.................... 0.528917 0.677876 1,542,446 01/01/2004 to 12/31/2004.................... 0.677876 0.725210 1,804,841 01/01/2005 to 12/31/2005.................... 0.725210 0.812651 1,758,953 01/01/2006 to 12/31/2006.................... 0.812651 0.787846 1,661,717 01/01/2007 to 12/31/2007.................... 0.787846 0.794843 1,285,456 01/01/2008 to 12/31/2008.................... 0.794843 0.477925 1,182,457 Legg Mason Value Equity Sub-Account 05/01/2006 to 12/31/2006.................... 9.387302 10.067298 20,375 01/01/2007 to 12/31/2007.................... 10.067298 9.344941 25,021 01/01/2008 to 12/31/2008.................... 9.344941 4.184042 44,208
II-29
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Lehman Brothers(R) Aggregate Bond Index Sub- Account 07/02/2001 to 12/31/2001.................... 1.098614 1.130538 229,823 01/01/2002 to 12/31/2002.................... 1.130538 1.226269 1,687,331 01/01/2003 to 12/31/2003.................... 1.226269 1.250731 4,259,615 01/01/2004 to 12/31/2004.................... 1.250731 1.281348 4,947,365 01/01/2005 to 12/31/2005.................... 1.281348 1.287637 5,596,683 01/01/2006 to 12/31/2006.................... 1.287637 1.318858 5,467,050 01/01/2007 to 12/31/2007.................... 1.318858 1.387744 5,422,863 01/01/2008 to 12/31/2008.................... 1.387744 1.446177 4,833,928 Loomis Sayles Small Cap Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.353603 2.667795 142,465 01/01/2005 to 12/31/2005.................... 2.667795 2.807855 411,440 01/01/2006 to 12/31/2006.................... 2.807855 3.224486 701,160 01/01/2007 to 12/31/2007.................... 3.224486 3.550815 867,082 01/01/2008 to 12/31/2008.................... 3.550815 2.239960 888,968 Loomis Sayles Small Cap Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.383050 2.255570 52,241 01/01/2002 to 12/31/2002.................... 2.255570 1.743692 707,530 01/01/2003 to 12/31/2003.................... 1.743692 2.344473 1,480,073 01/01/2004 to 12/31/2004.................... 2.344473 2.687786 1,827,947 01/01/2005 to 12/31/2005.................... 2.687786 2.831410 1,644,032 01/01/2006 to 12/31/2006.................... 2.831410 3.254656 1,525,531 01/01/2007 to 12/31/2007.................... 3.254656 3.587439 1,517,743 01/01/2008 to 12/31/2008.................... 3.587439 2.265340 1,401,240 Lord Abbett Bond Debenture Sub-Account 07/02/2001 to 12/31/2001.................... 1.366705 1.374725 65,506 01/01/2002 to 12/31/2002.................... 1.374725 1.348510 1,037,918 01/01/2003 to 12/31/2003.................... 1.348510 1.585325 3,312,961 01/01/2004 to 12/31/2004.................... 1.585325 1.691740 4,095,184 01/01/2005 to 12/31/2005.................... 1.691740 1.694043 4,436,764 01/01/2006 to 12/31/2006.................... 1.694043 1.824281 4,640,375 01/01/2007 to 12/31/2007.................... 1.824281 1.917569 4,815,422 01/01/2008 to 12/31/2008.................... 1.917569 1.539851 3,818,036 Met/AIM Small Cap Growth Sub-Account 05/01/2002 to 12/31/2002.................... 1.122499 0.847818 145,764 01/01/2003 to 12/31/2003.................... 0.847818 1.161541 533,469 01/01/2004 to 12/31/2004.................... 1.161541 1.219636 685,966 01/01/2005 to 12/31/2005.................... 1.219636 1.302792 734,063 01/01/2006 to 12/31/2006.................... 1.302792 1.467668 675,061 01/01/2007 to 12/31/2007.................... 1.467668 1.608183 627,180 01/01/2008 to 12/31/2008.................... 1.608183 0.972099 586,321 Met/Franklin Income Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998521 7.989131 4,642 Met/Franklin Mutual Shares Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998521 6.602419 2,685 Met/Franklin Templeton Founding Strategy Sub- Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998521 7.036064 20,715 Met/Templeton Growth Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998521 6.571546 1,838
II-30
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MetLife Aggressive Sub-Account 05/01/2005 to 12/31/2005.................... 9.998890 11.154317 2,882 01/01/2006 to 12/31/2006.................... 11.154317 12.728431 136,098 01/01/2007 to 12/31/2007.................... 12.728431 12.967317 132,254 01/01/2008 to 12/31/2008.................... 12.967317 7.618291 75,811 MetLife Conservative Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998890 10.303196 3,072 01/01/2006 to 12/31/2006.................... 10.303196 10.865903 14,670 01/01/2007 to 12/31/2007.................... 10.865903 11.316619 19,347 01/01/2008 to 12/31/2008.................... 11.316619 9.558158 149,516 MetLife Conservative to Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998890 10.521194 10,357 01/01/2006 to 12/31/2006.................... 10.521194 11.358570 82,077 01/01/2007 to 12/31/2007.................... 11.358570 11.744567 255,838 01/01/2008 to 12/31/2008.................... 11.744567 9.084388 390,438 MetLife Mid Cap Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.051488 1.030593 46,529 01/01/2002 to 12/31/2002.................... 1.030593 0.863149 722,105 01/01/2003 to 12/31/2003.................... 0.863149 1.145792 2,198,172 01/01/2004 to 12/31/2004.................... 1.145792 1.308088 2,709,058 01/01/2005 to 12/31/2005.................... 1.308088 1.445738 2,870,524 01/01/2006 to 12/31/2006.................... 1.445738 1.566559 2,955,137 01/01/2007 to 12/31/2007.................... 1.566559 1.661606 2,736,501 01/01/2008 to 12/31/2008.................... 1.661606 1.042919 2,809,961 MetLife Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998890 10.752070 126,081 01/01/2006 to 12/31/2006.................... 10.752070 11.864211 499,022 01/01/2007 to 12/31/2007.................... 11.864211 12.212967 1,155,607 01/01/2008 to 12/31/2008.................... 12.212967 8.598785 1,585,046 MetLife Moderate to Aggressive Allocation Sub- Account 05/01/2005 to 12/31/2005.................... 9.998890 10.978002 193,029 01/01/2006 to 12/31/2006.................... 10.978002 12.370963 971,283 01/01/2007 to 12/31/2007.................... 12.370963 12.674051 2,264,451 01/01/2008 to 12/31/2008.................... 12.674051 8.112800 2,941,275 MetLife Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 3.807341 3.528018 64,482 01/01/2002 to 12/31/2002.................... 3.528018 2.696948 652,639 01/01/2003 to 12/31/2003.................... 2.696948 3.402424 1,619,258 01/01/2004 to 12/31/2004.................... 3.402424 3.701714 1,851,273 01/01/2005 to 12/31/2005.................... 3.701714 3.812026 1,876,561 01/01/2006 to 12/31/2006.................... 3.812026 4.332201 1,840,391 01/01/2007 to 12/31/2007.................... 4.332201 4.486409 1,686,547 01/01/2008 to 12/31/2008.................... 4.486409 2.776921 1,602,952 MFS(R) Investors Trust Sub-Account (Class B)(11) 05/01/2004 to 12/31/2004.................... 7.709722 8.549344 10,133 01/01/2005 to 12/31/2005.................... 8.549344 9.017183 15,676 01/01/2006 to 04/30/2006.................... 9.017183 9.425733 15,630
II-31
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MFS(R) Investors Trust Sub-Account (Class E)(11) 07/02/2001 to 12/31/2001.................... 0.895771 0.830635 227,620 01/01/2002 to 12/31/2002.................... 0.830635 0.653612 852,130 01/01/2003 to 12/31/2003.................... 0.653612 0.783495 1,327,287 01/01/2004 to 12/31/2004.................... 0.783495 0.860136 1,876,224 01/01/2005 to 12/31/2005.................... 0.860136 0.909004 1,706,218 01/01/2006 to 04/30/2006.................... 0.909004 0.950499 0 MFS(R) Investors Trust Sub-Account(2)(11) (previously MFS(R) Research Managers Sub- Account) 07/02/2001 to 12/31/2001.................... 0.977250 0.877224 59,840 01/01/2002 to 12/31/2002.................... 0.877224 0.655964 253,040 01/01/2003 to 12/31/2003.................... 0.655964 0.801952 407,327 01/01/2004 to 04/30/2004.................... 0.801952 0.816603 495,237 MFS(R) Research International Sub-Account 07/02/2001 to 12/31/2001.................... 0.926780 0.848208 161,048 01/01/2002 to 12/31/2002.................... 0.848208 0.738078 1,165,514 01/01/2003 to 12/31/2003.................... 0.738078 0.961516 2,377,369 01/01/2004 to 12/31/2004.................... 0.961516 1.134133 2,677,862 01/01/2005 to 12/31/2005.................... 1.134133 1.302727 3,067,021 01/01/2006 to 12/31/2006.................... 1.302727 1.626729 3,493,691 01/01/2007 to 12/31/2007.................... 1.626729 1.818097 4,016,551 01/01/2008 to 12/31/2008.................... 1.818097 1.033762 5,131,117 MFS(R) Total Return Sub-Account 05/01/2004 to 12/31/2004.................... 3.707949 4.033161 891,992 01/01/2005 to 12/31/2005.................... 4.033161 4.092670 1,090,624 01/01/2006 to 12/31/2006.................... 4.092670 4.519799 1,090,122 01/01/2007 to 12/31/2007.................... 4.519799 4.642465 948,031 01/01/2008 to 12/31/2008.................... 4.642465 3.556487 831,250 MFS(R) Value Sub-Account (Class B) (formerly Harris Oakmark Large Cap Value Sub-Account (Class B))(8)(16) 05/01/2004 to 12/31/2004.................... 1.216777 1.313504 679,014 01/01/2005 to 12/31/2005.................... 1.313504 1.274552 1,223,840 01/01/2006 to 12/31/2006.................... 1.274552 1.481821 1,594,820 01/01/2007 to 12/31/2007.................... 1.481821 1.402988 1,740,041 01/01/2008 to 12/31/2008.................... 1.402988 0.917627 1,795,866 MFS(R) Value Sub-Account (Class E) (formerly Harris Oakmark Large Cap Value Sub-Account (Class E))(9)(16) 05/01/2002 to 12/31/2002.................... 1.186098 0.973172 648,931 01/01/2003 to 12/31/2003.................... 0.973172 1.203420 2,333,920 01/01/2004 to 12/31/2004.................... 1.203420 1.321289 2,689,824 01/01/2005 to 12/31/2005.................... 1.321289 1.283513 2,454,270 01/01/2006 to 12/31/2006.................... 1.283513 1.493439 2,168,763 01/01/2007 to 12/31/2007.................... 1.493439 1.415424 2,219,650 01/01/2008 to 12/31/2008.................... 1.415424 0.927047 2,065,879 MFS(R) Total Return Sub-Account(1) (previously Balanced Sub-Account) 07/02/2001 to 12/31/2001.................... 1.504179 1.477444 45,831 01/01/2002 to 12/31/2002.................... 1.477444 1.257572 858,351 01/01/2003 to 12/31/2003.................... 1.257572 1.484283 1,751,585 01/01/2004 to 04/30/2004.................... 1.484283 1.471564 2,020,425
II-32
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Morgan Stanley EAFE(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 0.945862 0.852843 67,835 01/01/2002 to 12/31/2002.................... 0.852843 0.700383 1,081,587 01/01/2003 to 12/31/2003.................... 0.700383 0.948053 2,542,236 01/01/2004 to 12/31/2004.................... 0.948053 1.115559 3,433,665 01/01/2005 to 12/31/2005.................... 1.115559 1.242979 3,570,990 01/01/2006 to 12/31/2006.................... 1.242979 1.538418 3,451,194 01/01/2007 to 12/31/2007.................... 1.538418 1.677344 3,239,163 01/01/2008 to 12/31/2008.................... 1.677344 0.956470 3,295,162 Neuberger Berman Mid Cap Value Sub-Account 07/02/2001 to 12/31/2001.................... 1.552941 1.503129 34,558 01/01/2002 to 12/31/2002.................... 1.503129 1.335969 361,709 01/01/2003 to 12/31/2003.................... 1.335969 1.794722 1,093,194 01/01/2004 to 12/31/2004.................... 1.794722 2.171830 2,103,590 01/01/2005 to 12/31/2005.................... 2.171830 2.398373 2,806,108 01/01/2006 to 12/31/2006.................... 2.398373 2.631265 3,350,874 01/01/2007 to 12/31/2007.................... 2.631265 2.678622 3,583,350 01/01/2008 to 12/31/2008.................... 2.678622 1.387961 3,580,080 Oppenheimer Capital Appreciation Sub-Account 05/01/2005 to 12/31/2005.................... 7.964511 8.650849 19,326 01/01/2006 to 12/31/2006.................... 8.650849 9.185190 47,132 01/01/2007 to 12/31/2007.................... 9.185190 10.356153 61,095 01/01/2008 to 12/31/2008.................... 10.356153 5.523224 78,496 Oppenheimer Global Equity Sub-Account 05/01/2004 to 12/31/2004.................... 12.798623 14.768490 5,741 01/01/2005 to 12/31/2005.................... 14.768490 16.899352 30,573 01/01/2006 to 12/31/2006.................... 16.899352 19.399664 51,265 01/01/2007 to 12/31/2007.................... 19.399664 20.336533 63,694 01/01/2008 to 12/31/2008.................... 20.336533 11.925811 65,761 PIMCO Inflation Protection Bond Sub-Account 05/01/2006 to 12/31/2006.................... 11.011996 11.123317 15,802 01/01/2007 to 12/31/2007.................... 11.123317 12.158272 75,524 01/01/2008 to 12/31/2008.................... 12.158272 11.168445 358,149 PIMCO Total Return Sub-Account 07/02/2001 to 12/31/2001.................... 1.007769 1.054194 654,487 01/01/2002 to 12/31/2002.................... 1.054194 1.136725 7,591,886 01/01/2003 to 12/31/2003.................... 1.136725 1.169775 15,537,661 01/01/2004 to 12/31/2004.................... 1.169775 1.211528 18,151,277 01/01/2005 to 12/31/2005.................... 1.211528 1.222193 19,870,194 01/01/2006 to 12/31/2006.................... 1.222193 1.260325 20,087,566 01/01/2007 to 12/31/2007.................... 1.260325 1.337388 18,461,477 01/01/2008 to 12/31/2008.................... 1.337388 1.324814 16,166,800 RCM Technology Sub-Account 07/02/2001 to 12/31/2001.................... 0.758038 0.609663 58,620 01/01/2002 to 12/31/2002.................... 0.609663 0.296343 684,856 01/01/2003 to 12/31/2003.................... 0.296343 0.460690 2,171,669 01/01/2004 to 12/31/2004.................... 0.460690 0.434898 2,948,050 01/01/2005 to 12/31/2005.................... 0.434898 0.476348 2,805,676 01/01/2006 to 12/31/2006.................... 0.476348 0.495105 2,703,866 01/01/2007 to 12/31/2007.................... 0.495105 0.642405 3,593,986 01/01/2008 to 12/31/2008.................... 0.642405 0.352044 4,286,555
II-33
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Russell 2000(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.219826 1.186373 69,714 01/01/2002 to 12/31/2002.................... 1.186373 0.929131 980,925 01/01/2003 to 12/31/2003.................... 0.929131 1.335715 2,248,054 01/01/2004 to 12/31/2004.................... 1.335715 1.547082 2,975,158 01/01/2005 to 12/31/2005.................... 1.547082 1.592035 3,253,959 01/01/2006 to 12/31/2006.................... 1.592035 1.846888 3,394,157 01/01/2007 to 12/31/2007.................... 1.846888 1.790932 2,975,367 01/01/2008 to 12/31/2008.................... 1.790932 1.171923 2,745,422 SSgA Growth and Income ETF Sub-Account (formerly Cyclical Growth and Income ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.516543 11.167932 0 01/01/2007 to 12/31/2007.................... 11.167932 11.612202 962 01/01/2008 to 12/31/2008.................... 11.612202 8.585168 6,088 SSgA Growth ETF Sub-Account (formerly Cyclical Growth ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.707472 11.422896 1,746 01/01/2007 to 12/31/2007.................... 11.422896 11.902093 4,520 01/01/2008 to 12/31/2008.................... 11.902093 7.870894 5,925 T. Rowe Price Large Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.119764 1.213800 371,795 01/01/2005 to 12/31/2005.................... 1.213800 1.273345 1,150,111 01/01/2006 to 12/31/2006.................... 1.273345 1.418156 1,563,773 01/01/2007 to 12/31/2007.................... 1.418156 1.527073 1,899,276 01/01/2008 to 12/31/2008.................... 1.527073 0.873754 1,970,850 T. Rowe Price Mid Cap Growth Sub-Account 07/02/2001 to 12/31/2001.................... 0.931134 0.824088 228,099 01/01/2002 to 12/31/2002.................... 0.824088 0.454985 1,350,231 01/01/2003 to 12/31/2003.................... 0.454985 0.613351 2,740,053 01/01/2004 to 12/31/2004.................... 0.613351 0.712958 4,790,384 01/01/2005 to 12/31/2005.................... 0.712958 0.806313 6,160,745 01/01/2006 to 12/31/2006.................... 0.806313 0.844567 7,011,334 01/01/2007 to 12/31/2007.................... 0.844567 0.980138 7,209,883 01/01/2008 to 12/31/2008.................... 0.980138 0.582597 6,939,264 T. Rowe Price Small Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.242603 1.325197 59,871 01/01/2005 to 12/31/2005.................... 1.325197 1.447577 267,157 01/01/2006 to 12/31/2006.................... 1.447577 1.480039 517,577 01/01/2007 to 12/31/2007.................... 1.480039 1.599275 669,674 01/01/2008 to 12/31/2008.................... 1.599275 1.004753 714,896 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.874647 1.988034 432,154 01/01/2005 to 12/31/2005.................... 1.988034 2.011696 1,533,843 01/01/2006 to 12/31/2006.................... 2.011696 2.080563 2,034,695 01/01/2007 to 12/31/2007.................... 2.080563 2.128538 2,554,305 01/01/2008 to 12/31/2008.................... 2.128538 1.780246 2,167,094
II-34
1.35% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(9) 07/02/2001 to 12/31/2001.................... 1.558017 1.594464 179,069 01/01/2002 to 12/31/2002.................... 1.594464 1.720371 1,763,673 01/01/2003 to 12/31/2003.................... 1.720371 1.909409 3,667,562 01/01/2004 to 12/31/2004.................... 1.909409 2.005745 4,330,695 01/01/2005 to 12/31/2005.................... 2.005745 2.031803 4,385,668 01/01/2006 to 12/31/2006.................... 2.031803 2.101953 3,964,043 01/01/2007 to 12/31/2007.................... 2.101953 2.154249 3,927,738 01/01/2008 to 12/31/2008.................... 2.154249 1.804068 2,783,730 Western Asset Management U.S. Government Sub- Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.549486 1.586955 461,685 01/01/2005 to 12/31/2005.................... 1.586955 1.587510 1,337,696 01/01/2006 to 12/31/2006.................... 1.587510 1.627597 1,955,732 01/01/2007 to 12/31/2007.................... 1.627597 1.670419 2,204,360 01/01/2008 to 12/31/2008.................... 1.670419 1.639189 1,706,447 Western Asset Management U.S. Government Sub- Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.439254 1.482873 406,922 01/01/2002 to 12/31/2002.................... 1.482873 1.574516 3,752,623 01/01/2003 to 12/31/2003.................... 1.574516 1.577453 5,859,702 01/01/2004 to 12/31/2004.................... 1.577453 1.599901 5,492,094 01/01/2005 to 12/31/2005.................... 1.599901 1.603439 5,566,349 01/01/2006 to 12/31/2006.................... 1.603439 1.644880 5,050,463 01/01/2007 to 12/31/2007.................... 1.644880 1.689764 4,233,768 01/01/2008 to 12/31/2008.................... 1.689764 1.659908 3,477,432
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Bond Sub-Account 05/01/2006 to 12/31/2006..................... 14.560847 15.263925 60,295 01/01/2007 to 12/31/2007..................... 15.263925 15.520311 185,366 01/01/2008 to 12/31/2008..................... 15.520311 13.845482 152,090 American Funds Global Small Capitalization Sub- Account 07/02/2001 to 12/31/2001..................... 1.458585 1.345052 130,815 01/01/2002 to 12/31/2002..................... 1.345052 1.071482 961,486 01/01/2003 to 12/31/2003..................... 1.071482 1.618945 1,641,739 01/01/2004 to 12/31/2004..................... 1.618945 1.925863 2,958,867 01/01/2005 to 12/31/2005..................... 1.925863 2.375903 3,696,633 01/01/2006 to 12/31/2006..................... 2.375903 2.900742 4,692,653 01/01/2007 to 12/31/2007..................... 2.900742 3.466117 4,940,653 01/01/2008 to 12/31/2008..................... 3.466117 1.585305 5,195,834
II-35
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Growth Sub-Account 07/02/2001 to 12/31/2001..................... 12.540653 11.078671 95,874 01/01/2002 to 12/31/2002..................... 11.078671 8.236410 893,722 01/01/2003 to 12/31/2003..................... 8.236410 11.089325 1,811,737 01/01/2004 to 12/31/2004..................... 11.089325 12.276627 2,524,388 01/01/2005 to 12/31/2005..................... 12.276627 14.038670 2,807,059 01/01/2006 to 12/31/2006..................... 14.038670 15.228136 2,948,975 01/01/2007 to 12/31/2007..................... 15.228136 16.835562 2,865,929 01/01/2008 to 12/31/2008..................... 16.835562 9.282386 2,820,296 American Funds Growth-Income Sub-Account 07/02/2001 to 12/31/2001..................... 8.498265 8.240238 126,008 01/01/2002 to 12/31/2002..................... 8.240238 6.621767 1,040,860 01/01/2003 to 12/31/2003..................... 6.621767 8.629898 2,297,752 01/01/2004 to 12/31/2004..................... 8.629898 9.373627 3,012,257 01/01/2005 to 12/31/2005..................... 9.373627 9.763296 3,200,295 01/01/2006 to 12/31/2006..................... 9.763296 11.069576 3,206,145 01/01/2007 to 12/31/2007..................... 11.069576 11.442242 3,001,823 01/01/2008 to 12/31/2008..................... 11.442242 6.998153 2,903,088
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Balanced Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.008465 7.011667 19,218 American Funds Growth Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998466 6.359814 91,557 American Funds Moderate Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.018465 7.685380 5,832 BlackRock Aggressive Growth Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 33.567147 37.215656 753 01/01/2005 to 12/31/2005.................... 37.215656 40.528355 450 01/01/2006 to 12/31/2006.................... 40.528355 42.551290 1,071 01/01/2007 to 12/31/2007.................... 42.551290 50.447102 3,075 01/01/2008 to 12/31/2008.................... 50.447102 26.941035 2,360 BlackRock Bond Income Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 3.794455 3.931554 41,262 01/01/2002 to 12/31/2002.................... 3.931554 4.193573 201,281 01/01/2003 to 12/31/2003.................... 4.193573 4.366140 409,883 01/01/2004 to 12/31/2004.................... 4.366140 4.484905 401,399 01/01/2005 to 12/31/2005.................... 4.484905 4.518013 409,436 01/01/2006 to 12/31/2006.................... 4.518013 4.639690 421,577 01/01/2007 to 12/31/2007.................... 4.639690 4.850355 386,027 01/01/2008 to 12/31/2008.................... 4.850355 4.607455 309,883 BlackRock Diversified Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 35.331647 38.120554 0 01/01/2005 to 12/31/2005.................... 38.120554 38.651758 0 01/01/2006 to 12/31/2006.................... 38.651758 42.021096 0 01/01/2007 to 12/31/2007.................... 42.021096 43.761019 0 01/01/2008 to 12/31/2008.................... 43.761019 32.378238 245
II-36
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Large Cap Core Sub-Account(12) 04/30/2007 to 12/31/2007.................... 7.810216 7.877257 15,635 01/01/2008 to 12/31/2008.................... 7.877257 4.869552 21,695 BlackRock Large Cap Sub-Account(12) (previously BlackRock Investment Trust Sub- Account (Class B)) 07/02/2001 to 12/31/2001.................... 7.079287 6.466098 1,703 01/01/2002 to 12/31/2002.................... 6.466098 4.700289 9,125 01/01/2003 to 12/31/2003.................... 4.700289 6.021138 15,301 01/01/2004 to 12/31/2004.................... 6.021138 6.566431 14,227 01/01/2005 to 12/31/2005.................... 6.566431 6.690165 11,944 01/01/2006 to 12/31/2006.................... 6.690165 7.510073 10,760 01/01/2007 to 04/27/2007.................... 7.510073 7.876043 0 BlackRock Large Cap Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.069130 1.179446 3,456 01/01/2005 to 12/31/2005.................... 1.179446 1.227729 34,305 01/01/2006 to 12/31/2006.................... 1.227729 1.442300 138,796 01/01/2007 to 12/31/2007.................... 1.442300 1.466642 297,563 01/01/2008 to 12/31/2008.................... 1.466642 0.938443 357,829 BlackRock Large Cap Value Sub-Account (Class E)(9) 05/01/2002 to 12/31/2002.................... 1.000000 0.792413 3,190 01/01/2003 to 12/31/2003.................... 0.792413 1.058109 36,493 01/01/2004 to 12/31/2004.................... 1.058109 1.182350 100,985 01/01/2005 to 12/31/2005.................... 1.182350 1.232309 98,023 01/01/2006 to 12/31/2006.................... 1.232309 1.448594 133,565 01/01/2007 to 12/31/2007.................... 1.448594 1.475082 248,098 01/01/2008 to 12/31/2008.................... 1.475082 0.944871 239,650 BlackRock Legacy Large Cap Growth Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.319442 2.541513 0 01/01/2005 to 12/31/2005.................... 2.541513 2.675538 18,910 01/01/2006 to 12/31/2006.................... 2.675538 2.740956 26,641 01/01/2007 to 12/31/2007.................... 2.740956 3.200807 25,247 01/01/2008 to 12/31/2008.................... 3.200807 1.998105 145,452 BlackRock Legacy Large Cap Growth Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.989036 2.730133 15,331 01/01/2002 to 12/31/2002.................... 2.730133 1.797334 103,979 01/01/2003 to 12/31/2003.................... 1.797334 2.391051 137,582 01/01/2004 to 12/31/2004.................... 2.391051 2.560650 114,456 01/01/2005 to 12/31/2005.................... 2.560650 2.698157 100,587 01/01/2006 to 12/31/2006.................... 2.698157 2.767117 96,204 01/01/2007 to 12/31/2007.................... 2.767117 3.234382 101,348 01/01/2008 to 12/31/2008.................... 3.234382 2.021068 93,342 BlackRock Money Market Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 2.215646 2.228040 22,885 01/01/2002 to 12/31/2002.................... 2.228040 2.222654 117,801 01/01/2003 to 12/31/2003.................... 2.222654 2.203913 356,634 01/01/2004 to 12/31/2004.................... 2.203913 2.189142 363,839 01/01/2005 to 12/31/2005.................... 2.189142 2.215709 421,731 01/01/2006 to 12/31/2006.................... 2.215709 2.284429 573,318 01/01/2007 to 12/31/2007.................... 2.284429 2.360945 577,599 01/01/2008 to 12/31/2008.................... 2.360945 2.388543 745,139
II-37
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Strategic Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.611130 1.812573 8,779 01/01/2005 to 12/31/2005.................... 1.812573 1.857330 63,127 01/01/2006 to 12/31/2006.................... 1.857330 2.132735 113,157 01/01/2007 to 12/31/2007.................... 2.132735 2.025294 132,045 01/01/2008 to 12/31/2008.................... 2.025294 1.227079 142,298 BlackRock Strategic Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.428743 1.398010 79,337 01/01/2002 to 12/31/2002.................... 1.398010 1.082359 549,921 01/01/2003 to 12/31/2003.................... 1.082359 1.600054 897,467 01/01/2004 to 12/31/2004.................... 1.600054 1.817044 991,746 01/01/2005 to 12/31/2005.................... 1.817044 1.862746 901,998 01/01/2006 to 12/31/2006.................... 1.862746 2.142613 731,159 01/01/2007 to 12/31/2007.................... 2.142613 2.037091 577,630 01/01/2008 to 12/31/2008.................... 2.037091 1.235320 518,871 Clarion Global Real Estate Sub-Account (previously Neuberger Berman Real Estate Sub-Account)(17) 05/01/2004 to 12/31/2004.................... 9.998849 12.833645 6,184 01/01/2005 to 12/31/2005.................... 12.833645 14.337160 20,833 01/01/2006 to 12/31/2006.................... 14.337160 19.451786 37,355 01/01/2007 to 12/31/2007.................... 19.451786 16.301648 47,371 01/01/2008 to 12/31/2008.................... 16.301648 9.375546 48,703 Davis Venture Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.857108 3.075004 34,314 01/01/2005 to 12/31/2005.................... 3.075004 3.335478 118,287 01/01/2006 to 12/31/2006.................... 3.335478 3.760265 212,178 01/01/2007 to 12/31/2007.................... 3.760265 3.868756 272,418 01/01/2008 to 12/31/2008.................... 3.868756 2.307194 323,345 Davis Venture Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.787793 2.644925 76,898 01/01/2002 to 12/31/2002.................... 2.644925 2.176472 330,044 01/01/2003 to 12/31/2003.................... 2.176472 2.805879 581,668 01/01/2004 to 12/31/2004.................... 2.805879 3.102700 608,869 01/01/2005 to 12/31/2005.................... 3.102700 3.369815 565,916 01/01/2006 to 12/31/2006.................... 3.369815 3.801805 536,517 01/01/2007 to 12/31/2007.................... 3.801805 3.914808 482,090 01/01/2008 to 12/31/2008.................... 3.914808 2.337053 408,908 FI Large Cap Sub-Account 05/01/2006 to 12/31/2006.................... 17.091180 17.290064 0 01/01/2007 to 12/31/2007.................... 17.290064 17.683059 0 01/01/2008 to 12/31/2008.................... 17.683059 9.598675 0 FI Mid Cap Opportunities Sub-Account(4) 05/01/2002 to 12/31/2002.................... 1.000000 0.810370 17,439 01/01/2003 to 12/31/2003.................... 0.810370 1.135448 115,232 01/01/2004 to 04/30/2004.................... 1.135448 1.125169 208,801
II-38
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ FI Mid Cap Opportunities Sub-Account(3) (previously Janus Mid Cap Sub-Account) 07/02/2001 to 12/31/2001.................... 1.878947 1.548648 10,059 01/01/2002 to 12/31/2002.................... 1.548648 1.081589 82,679 01/01/2003 to 12/31/2003.................... 1.081589 1.432146 106,543 01/01/2004 to 12/31/2004.................... 1.432146 1.649816 246,945 01/01/2005 to 12/31/2005.................... 1.649816 1.735349 227,738 01/01/2006 to 12/31/2006.................... 1.735349 1.909085 131,234 01/01/2007 to 12/31/2007.................... 1.909085 2.035078 150,995 01/01/2008 to 12/31/2008.................... 2.035078 0.894338 183,585 FI Value Leaders Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.301239 2.595745 0 01/01/2005 to 12/31/2005.................... 2.595745 2.826776 34,217 01/01/2006 to 12/31/2006.................... 2.826776 3.112621 63,743 01/01/2007 to 12/31/2007.................... 3.112621 3.190028 61,523 01/01/2008 to 12/31/2008.................... 3.190028 1.915590 63,822 FI Value Leaders Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.599120 2.359679 9,164 01/01/2002 to 12/31/2002.................... 2.359679 1.871658 81,051 01/01/2003 to 12/31/2003.................... 1.871658 2.339210 109,289 01/01/2004 to 12/31/2004.................... 2.339210 2.619432 89,857 01/01/2005 to 12/31/2005.................... 2.619432 2.855064 85,793 01/01/2006 to 12/31/2006.................... 2.855064 3.146810 82,617 01/01/2007 to 12/31/2007.................... 3.146810 3.228235 68,660 01/01/2008 to 12/31/2008.................... 3.228235 1.940725 78,096 Franklin Templeton Small Cap Growth Sub- Account 07/02/2001 to 12/31/2001.................... 0.953723 0.879717 1,538 01/01/2002 to 12/31/2002.................... 0.879717 0.624228 120,614 01/01/2003 to 12/31/2003.................... 0.624228 0.890113 234,024 01/01/2004 to 12/31/2004.................... 0.890113 0.975547 244,173 01/01/2005 to 12/31/2005.................... 0.975547 1.004265 242,653 01/01/2006 to 12/31/2006.................... 1.004265 1.086600 217,401 01/01/2007 to 12/31/2007.................... 1.086600 1.117644 136,272 01/01/2008 to 12/31/2008.................... 1.117644 0.646802 128,110 Harris Oakmark Focused Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 3.012237 3.268696 4,827 01/01/2005 to 12/31/2005.................... 3.268696 3.536291 30,229 01/01/2006 to 12/31/2006.................... 3.536291 3.911773 37,528 01/01/2007 to 12/31/2007.................... 3.911773 3.584202 35,591 01/01/2008 to 12/31/2008.................... 3.584202 1.903762 28,972 Harris Oakmark Focused Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.508301 2.627971 57,009 01/01/2002 to 12/31/2002.................... 2.627971 2.358576 407,484 01/01/2003 to 12/31/2003.................... 2.358576 3.080534 657,276 01/01/2004 to 12/31/2004.................... 3.080534 3.334420 707,314 01/01/2005 to 12/31/2005.................... 3.334420 3.610866 598,855 01/01/2006 to 12/31/2006.................... 3.610866 3.998276 552,747 01/01/2007 to 12/31/2007.................... 3.998276 3.667119 449,971 01/01/2008 to 12/31/2008.................... 3.667119 1.949737 442,161
II-39
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Harris Oakmark International Sub-Account (Class B)(6) 05/01/2003 to 12/31/2003.................... 0.875120 1.175443 122,050 01/01/2004 to 12/31/2004.................... 1.175443 1.396950 197,750 01/01/2005 to 12/31/2005.................... 1.396950 1.573705 233,162 01/01/2006 to 12/31/2006.................... 1.573705 1.999585 366,639 01/01/2007 to 12/31/2007.................... 1.999585 1.949581 414,453 01/01/2008 to 12/31/2008.................... 1.949581 1.136429 374,444 Harris Oakmark International Sub-Account (Class E)(7) 05/01/2002 to 12/31/2002.................... 1.059613 0.883783 0 01/01/2003 to 12/31/2003.................... 0.883783 1.177842 74,852 01/01/2004 to 12/31/2004.................... 1.177842 1.401707 103,024 01/01/2005 to 12/31/2005.................... 1.401707 1.579576 188,989 01/01/2006 to 12/31/2006.................... 1.579576 2.009171 240,232 01/01/2007 to 12/31/2007.................... 2.009171 1.961279 251,549 01/01/2008 to 12/31/2008.................... 1.961279 1.144374 136,566 Janus Forty Sub-Account 04/30/2007 to 12/31/2007.................... 145.834124 178.900463 182 01/01/2008 to 12/31/2008.................... 178.900463 102.320777 4,205 Jennison Growth Sub-Account (Class B) 05/01/2005 to 12/31/2005.................... 0.406915 0.488787 43,670 01/01/2006 to 12/31/2006.................... 0.488787 0.494175 58,320 01/01/2007 to 12/31/2007.................... 0.494175 0.542763 56,758 01/01/2008 to 12/31/2008.................... 0.542763 0.339598 116,581 Jennison Growth Subaccount (Class B)(8)(10) (previously Met/Putnam Voyager Sub-Account (Class B)) 05/01/2004 to 12/31/2004.................... 0.422573 0.441147 0 01/01/2005 to 04/30/2005.................... 0.441147 0.402036 0 Jennison Growth Sub-Account (Class E) 05/01/2005 to 12/31/2005.................... 0.407190 0.489826 338,185 01/01/2006 to 12/31/2006.................... 0.489826 0.495587 400,385 01/01/2007 to 12/31/2007.................... 0.495587 0.545072 321,013 01/01/2008 to 12/31/2008.................... 0.545072 0.340897 223,028 Jennison Growth Subaccount (Class E)(9)(10) (previously Met/Putnam Voyager Sub-Account (Class E)) 07/02/2001 to 12/31/2001.................... 0.574484 0.492330 8,715 01/01/2002 to 12/31/2002.................... 0.492330 0.344836 92,649 01/01/2003 to 12/31/2003.................... 0.344836 0.427435 425,315 01/01/2004 to 12/31/2004.................... 0.427435 0.441146 407,120 01/01/2005 to 04/30/2005.................... 0.441146 0.406037 0 Julius Baer International Stock Sub-Account (Class B) (formerly FI International Stock Sub-Account (Class B))(8)(15) 05/01/2004 to 12/31/2004.................... 1.181986 1.350228 54,651 01/01/2005 to 12/31/2005.................... 1.350228 1.565675 195,256 01/01/2006 to 12/31/2006.................... 1.565675 1.794512 447,790 01/01/2007 to 12/31/2007.................... 1.794512 1.947600 607,200 01/01/2008 to 12/31/2008.................... 1.947600 1.070810 460,819
II-40
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Julius Baer International Stock Sub-Account (Class E) (formerly FI International Stock Sub-Account (Class E))(9)(15) 07/02/2001 to 12/31/2001.................... 1.254650 1.146238 84,642 01/01/2002 to 12/31/2002.................... 1.146238 0.931094 191,102 01/01/2003 to 12/31/2003.................... 0.931094 1.174289 386,520 01/01/2004 to 12/31/2004.................... 1.174289 1.366522 352,767 01/01/2005 to 12/31/2005.................... 1.366522 1.587452 299,674 01/01/2006 to 12/31/2006.................... 1.587452 1.819983 248,957 01/01/2007 to 12/31/2007.................... 1.819983 1.977677 229,090 01/01/2008 to 12/31/2008.................... 1.977677 1.088132 231,639 Lazard Mid Cap Sub-Account 05/01/2002 to 12/31/2002.................... 1.139697 0.966597 6,516 01/01/2003 to 12/31/2003.................... 0.966597 1.202647 88,459 01/01/2004 to 12/31/2004.................... 1.202647 1.356678 186,066 01/01/2005 to 12/31/2005.................... 1.356678 1.445684 232,057 01/01/2006 to 12/31/2006.................... 1.445684 1.634852 271,026 01/01/2007 to 12/31/2007.................... 1.634852 1.568309 310,533 01/01/2008 to 12/31/2008.................... 1.568309 0.954140 338,551 Legg Mason Partners Aggressive Growth Sub- Account(5)(13) 07/02/2001 to 12/31/2001.................... 0.951729 0.774690 20,766 01/01/2002 to 12/31/2002.................... 0.774690 0.528474 217,421 01/01/2003 to 12/31/2003.................... 0.528474 0.676985 261,235 01/01/2004 to 12/31/2004.................... 0.676985 0.723893 202,516 01/01/2005 to 12/31/2005.................... 0.723893 0.810771 227,709 01/01/2006 to 12/31/2006.................... 0.810771 0.785631 337,356 01/01/2007 to 12/31/2007.................... 0.785631 0.792211 272,665 01/01/2008 to 12/31/2008.................... 0.792211 0.476103 235,329 Legg Mason Value Equity Sub-Account 05/01/2006 to 12/31/2006.................... 9.354456 10.028747 1,748 01/01/2007 to 12/31/2007.................... 10.028747 9.304475 1,730 01/01/2008 to 12/31/2008.................... 9.304475 4.163826 1,965 Lehman Brothers(R) Aggregate Bond Index Sub- Account 07/02/2001 to 12/31/2001.................... 1.097162 1.128756 9,922 01/01/2002 to 12/31/2002.................... 1.128756 1.223720 112,812 01/01/2003 to 12/31/2003.................... 1.223720 1.247509 707,358 01/01/2004 to 12/31/2004.................... 1.247509 1.277406 779,958 01/01/2005 to 12/31/2005.................... 1.277406 1.283036 827,998 01/01/2006 to 12/31/2006.................... 1.283036 1.313490 846,664 01/01/2007 to 12/31/2007.................... 1.313490 1.381401 831,517 01/01/2008 to 12/31/2008.................... 1.381401 1.438845 599,719 Loomis Sayles Small Cap Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.341850 2.653593 200 01/01/2005 to 12/31/2005.................... 2.653593 2.791516 4,492 01/01/2006 to 12/31/2006.................... 2.791516 3.204124 12,561 01/01/2007 to 12/31/2007.................... 3.204124 3.526618 23,416 01/01/2008 to 12/31/2008.................... 3.526618 2.223577 22,661
II-41
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Loomis Sayles Small Cap Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.374519 2.246929 5,907 01/01/2002 to 12/31/2002.................... 2.246929 1.736142 36,115 01/01/2003 to 12/31/2003.................... 1.736142 2.333159 109,120 01/01/2004 to 12/31/2004.................... 2.333159 2.673476 143,530 01/01/2005 to 12/31/2005.................... 2.673476 2.814931 130,911 01/01/2006 to 12/31/2006.................... 2.814931 3.234101 140,459 01/01/2007 to 12/31/2007.................... 3.234101 3.562990 125,445 01/01/2008 to 12/31/2008.................... 3.562990 2.248771 123,288 Lord Abbett Bond Debenture Sub-Account 07/02/2001 to 12/31/2001.................... 1.363175 1.370828 0 01/01/2002 to 12/31/2002.................... 1.370828 1.344021 98,324 01/01/2003 to 12/31/2003.................... 1.344021 1.579261 282,645 01/01/2004 to 12/31/2004.................... 1.579261 1.684424 348,733 01/01/2005 to 12/31/2005.................... 1.684424 1.685876 470,290 01/01/2006 to 12/31/2006.................... 1.685876 1.814581 590,691 01/01/2007 to 12/31/2007.................... 1.814581 1.906414 699,149 01/01/2008 to 12/31/2008.................... 1.906414 1.530125 596,819 Met/AIM Small Cap Growth Sub-Account 05/01/2002 to 12/31/2002.................... 1.122185 0.847289 34,333 01/01/2003 to 12/31/2003.................... 0.847289 1.160234 233,535 01/01/2004 to 12/31/2004.................... 1.160234 1.217653 303,779 01/01/2005 to 12/31/2005.................... 1.217653 1.300025 229,385 01/01/2006 to 12/31/2006.................... 1.300025 1.463820 186,633 01/01/2007 to 12/31/2007.................... 1.463820 1.603161 191,311 01/01/2008 to 12/31/2008.................... 1.603161 0.968576 242,902 Met/Franklin Income Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998466 7.986381 2,864 Met/Franklin Mutual Shares Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998466 6.600141 0 Met/Franklin Templeton Founding Strategy Sub- Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998466 7.033638 74 Met/Templeton Growth Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998466 6.569280 0 MetLife Aggressive Sub-Account 05/01/2005 to 12/31/2005.................... 9.998849 11.150576 0 01/01/2006 to 12/31/2006.................... 11.150576 12.717820 0 01/01/2007 to 12/31/2007.................... 12.717820 12.949992 0 01/01/2008 to 12/31/2008.................... 12.949992 7.604288 1,679 MetLife Conservative Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998849 10.299739 0 01/01/2006 to 12/31/2006.................... 10.299739 10.856842 0 01/01/2007 to 12/31/2007.................... 10.856842 11.301500 26,059 01/01/2008 to 12/31/2008.................... 11.301500 9.540600 25,997 MetLife Conservative to Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998849 10.517665 0 01/01/2006 to 12/31/2006.................... 10.517665 11.349099 8,608 01/01/2007 to 12/31/2007.................... 11.349099 11.728876 32,332 01/01/2008 to 12/31/2008.................... 11.728876 9.067698 71,170
II-42
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MetLife Mid Cap Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.050967 1.029828 223,464 01/01/2002 to 12/31/2002.................... 1.029828 0.862076 183,553 01/01/2003 to 12/31/2003.................... 0.862076 1.143803 551,005 01/01/2004 to 12/31/2004.................... 1.143803 1.305163 570,838 01/01/2005 to 12/31/2005.................... 1.305163 1.441786 528,167 01/01/2006 to 12/31/2006.................... 1.441786 1.561498 483,920 01/01/2007 to 12/31/2007.................... 1.561498 1.655406 416,568 01/01/2008 to 12/31/2008.................... 1.655406 1.038505 409,548 MetLife Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998849 10.748464 9,839 01/01/2006 to 12/31/2006.................... 10.748464 11.854319 62,999 01/01/2007 to 12/31/2007.................... 11.854319 12.196651 152,777 01/01/2008 to 12/31/2008.................... 12.196651 8.582985 288,685 MetLife Moderate to Aggressive Allocation Sub- Account 05/01/2005 to 12/31/2005.................... 9.998849 10.974321 21,756 01/01/2006 to 12/31/2006.................... 10.974321 12.360650 41,772 01/01/2007 to 12/31/2007.................... 12.360650 12.657119 296,402 01/01/2008 to 12/31/2008.................... 12.657119 8.097891 521,985 MetLife Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 3.786132 3.507490 17,785 01/01/2002 to 12/31/2002.................... 3.507490 2.679909 114,121 01/01/2003 to 12/31/2003.................... 2.679909 3.379242 204,578 01/01/2004 to 12/31/2004.................... 3.379242 3.674651 314,160 01/01/2005 to 12/31/2005.................... 3.674651 3.782271 309,333 01/01/2006 to 12/31/2006.................... 3.782271 4.296243 228,164 01/01/2007 to 12/31/2007.................... 4.296243 4.446934 212,450 01/01/2008 to 12/31/2008.................... 4.446934 2.751104 197,073 MFS(R) Investors Trust Sub-Account (Class B)(11) 05/01/2004 to 12/31/2004.................... 7.690409 8.525102 0 01/01/2005 to 12/31/2005.................... 8.525102 8.987133 1,122 01/01/2006 to 04/30/2006.................... 8.987133 9.392804 1,731 MFS(R) Investors Trust Sub-Account (Class E)(11) 07/02/2001 to 12/31/2001.................... 0.894797 0.829520 11,890 01/01/2002 to 12/31/2002.................... 0.829520 0.652409 116,329 01/01/2003 to 12/31/2003.................... 0.652409 0.781667 134,035 01/01/2004 to 12/31/2004.................... 0.781667 0.857699 164,171 01/01/2005 to 12/31/2005.................... 0.857699 0.905976 112,277 01/01/2006 to 04/30/2006.................... 0.905976 0.947180 0 MFS(R) Investors Trust Sub-Account(2)(11) (previously MFS(R) Research Managers Sub- Account) 07/02/2001 to 12/31/2001.................... 0.976187 0.876044 857 01/01/2002 to 12/31/2002.................... 0.876044 0.654750 11,992 01/01/2003 to 12/31/2003.................... 0.654750 0.800071 33,231 01/01/2004 to 04/30/2004.................... 0.800071 0.814554 33,430
II-43
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MFS(R) Research International Sub-Account 07/02/2001 to 12/31/2001.................... 0.926602 0.847843 8,799 01/01/2002 to 12/31/2002.................... 0.847843 0.737386 106,045 01/01/2003 to 12/31/2003.................... 0.737386 0.960144 220,241 01/01/2004 to 12/31/2004.................... 0.960144 1.131947 197,420 01/01/2005 to 12/31/2005.................... 1.131947 1.299569 277,267 01/01/2006 to 12/31/2006.................... 1.299569 1.621977 249,381 01/01/2007 to 12/31/2007.................... 1.621977 1.811874 443,370 01/01/2008 to 12/31/2008.................... 1.811874 1.029706 847,169 MFS(R) Total Return Sub-Account 05/01/2004 to 12/31/2004.................... 3.676530 3.997661 224,054 01/01/2005 to 12/31/2005.................... 3.997661 4.054624 216,474 01/01/2006 to 12/31/2006.................... 4.054624 4.475551 210,592 01/01/2007 to 12/31/2007.................... 4.475551 4.594705 173,843 01/01/2008 to 12/31/2008.................... 4.594705 3.518132 163,932 MFS(R) Value Sub-Account (Class B) (formerly Harris Oakmark Large Cap Value Sub-Account (Class B))(8)(16) 05/01/2004 to 12/31/2004.................... 1.213445 1.309472 23,210 01/01/2005 to 12/31/2005.................... 1.309472 1.270007 151,389 01/01/2006 to 12/31/2006.................... 1.270007 1.475801 253,620 01/01/2007 to 12/31/2007.................... 1.475801 1.396585 321,559 01/01/2008 to 12/31/2008.................... 1.396585 0.912980 310,590 MFS(R) Value Sub-Account (Class E) (formerly Harris Oakmark Large Cap Value Sub-Account (Class E))(9)(16) 05/01/2002 to 12/31/2002.................... 1.184038 0.971161 105,515 01/01/2003 to 12/31/2003.................... 0.971161 1.200335 643,424 01/01/2004 to 12/31/2004.................... 1.200335 1.317242 735,390 01/01/2005 to 12/31/2005.................... 1.317242 1.278943 676,579 01/01/2006 to 12/31/2006.................... 1.278943 1.487381 558,311 01/01/2007 to 12/31/2007.................... 1.487381 1.408973 439,731 01/01/2008 to 12/31/2008.................... 1.408973 0.922359 304,667 MFS(R) Total Return Sub-Account(1) (previously Balanced Sub-Account) 07/02/2001 to 12/31/2001.................... 1.499169 1.472163 0 01/01/2002 to 12/31/2002.................... 1.472163 1.252454 146,985 01/01/2003 to 12/31/2003.................... 1.252454 1.477500 590,860 01/01/2004 to 04/30/2004.................... 1.477500 1.464598 646,784 Morgan Stanley EAFE(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 0.944611 0.851503 21,894 01/01/2002 to 12/31/2002.................... 0.851503 0.698933 299,954 01/01/2003 to 12/31/2003.................... 0.698933 0.945612 422,833 01/01/2004 to 12/31/2004.................... 0.945612 1.112130 521,668 01/01/2005 to 12/31/2005.................... 1.112130 1.238540 487,200 01/01/2006 to 12/31/2006.................... 1.238540 1.532160 485,009 01/01/2007 to 12/31/2007.................... 1.532160 1.669681 491,618 01/01/2008 to 12/31/2008.................... 1.669681 0.951622 478,991
II-44
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Neuberger Berman Mid Cap Value Sub-Account 07/02/2001 to 12/31/2001.................... 1.550889 1.500772 9,241 01/01/2002 to 12/31/2002.................... 1.500772 1.333202 170,229 01/01/2003 to 12/31/2003.................... 1.333202 1.790103 263,931 01/01/2004 to 12/31/2004.................... 1.790103 2.165156 276,099 01/01/2005 to 12/31/2005.................... 2.165156 2.389812 330,618 01/01/2006 to 12/31/2006.................... 2.389812 2.620566 384,349 01/01/2007 to 12/31/2007.................... 2.620566 2.666388 391,653 01/01/2008 to 12/31/2008.................... 2.666388 1.380927 455,733 Oppenheimer Capital Appreciation Sub-Account 05/01/2005 to 12/31/2005.................... 7.947721 8.629752 1,161 01/01/2006 to 12/31/2006.................... 8.629752 9.158221 1,997 01/01/2007 to 12/31/2007.................... 9.158221 10.320556 3,213 01/01/2008 to 12/31/2008.................... 10.320556 5.501470 46,562 Oppenheimer Global Equity Sub-Account 05/01/2004 to 12/31/2004.................... 12.752805 14.710742 72 01/01/2005 to 12/31/2005.................... 14.710742 16.824885 772 01/01/2006 to 12/31/2006.................... 16.824885 19.304552 1,225 01/01/2007 to 12/31/2007.................... 19.304552 20.226655 3,153 01/01/2008 to 12/31/2008.................... 20.226655 11.855415 4,451 PIMCO Inflation Protection Bond Sub-Account 05/01/2006 to 12/31/2006.................... 10.995472 11.102944 14,025 01/01/2007 to 12/31/2007.................... 11.102944 12.129906 4,190 01/01/2008 to 12/31/2008.................... 12.129906 11.136801 33,963 PIMCO Total Return Sub-Account 07/02/2001 to 12/31/2001.................... 1.007576 1.053729 194,398 01/01/2002 to 12/31/2002.................... 1.053729 1.135650 1,187,935 01/01/2003 to 12/31/2003.................... 1.135650 1.168086 2,538,171 01/01/2004 to 12/31/2004.................... 1.168086 1.209173 2,548,866 01/01/2005 to 12/31/2005.................... 1.209173 1.219208 2,424,090 01/01/2006 to 12/31/2006.................... 1.219208 1.256621 2,344,020 01/01/2007 to 12/31/2007.................... 1.256621 1.332788 2,085,818 01/01/2008 to 12/31/2008.................... 1.332788 1.319595 1,715,001 RCM Technology Sub-Account 07/02/2001 to 12/31/2001.................... 0.757892 0.609392 3,655 01/01/2002 to 12/31/2002.................... 0.609392 0.296061 37,645 01/01/2003 to 12/31/2003.................... 0.296061 0.460017 167,704 01/01/2004 to 12/31/2004.................... 0.460017 0.434044 283,676 01/01/2005 to 12/31/2005.................... 0.434044 0.475176 264,985 01/01/2006 to 12/31/2006.................... 0.475176 0.493640 270,613 01/01/2007 to 12/31/2007.................... 0.493640 0.640183 355,966 01/01/2008 to 12/31/2008.................... 0.640183 0.350649 371,938 Russell 2000(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.218212 1.184509 9,068 01/01/2002 to 12/31/2002.................... 1.184509 0.927217 82,611 01/01/2003 to 12/31/2003.................... 0.927217 1.332307 370,220 01/01/2004 to 12/31/2004.................... 1.332307 1.542362 433,301 01/01/2005 to 12/31/2005.................... 1.542362 1.586386 438,968 01/01/2006 to 12/31/2006.................... 1.586386 1.839418 438,778 01/01/2007 to 12/31/2007.................... 1.839418 1.782791 382,782 01/01/2008 to 12/31/2008.................... 1.782791 1.166009 336,607
II-45
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ SSgA Growth and Income ETF Sub-Account (formerly Cyclical Growth and Income ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.513475 11.160973 0 01/01/2007 to 12/31/2007.................... 11.160973 11.599133 984 01/01/2008 to 12/31/2008.................... 11.599133 8.571201 904 SSgA Growth ETF Sub-Account (formerly Cyclical Growth ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.704349 11.415778 0 01/01/2007 to 12/31/2007.................... 11.415778 11.888698 0 01/01/2008 to 12/31/2008.................... 11.888698 7.858087 0 T. Rowe Price Large Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.116697 1.210073 47,316 01/01/2005 to 12/31/2005.................... 1.210073 1.268802 140,834 01/01/2006 to 12/31/2006.................... 1.268802 1.412393 131,764 01/01/2007 to 12/31/2007.................... 1.412393 1.520102 277,980 01/01/2008 to 12/31/2008.................... 1.520102 0.869328 372,102 T. Rowe Price Mid Cap Growth Sub-Account 07/02/2001 to 12/31/2001.................... 0.930955 0.823724 1,317 01/01/2002 to 12/31/2002.................... 0.823724 0.454554 49,482 01/01/2003 to 12/31/2003.................... 0.454554 0.612473 348,218 01/01/2004 to 12/31/2004.................... 0.612473 0.711580 352,341 01/01/2005 to 12/31/2005.................... 0.711580 0.804354 423,789 01/01/2006 to 12/31/2006.................... 0.804354 0.842095 468,957 01/01/2007 to 12/31/2007.................... 0.842095 0.976778 451,872 01/01/2008 to 12/31/2008.................... 0.976778 0.580309 743,582 T. Rowe Price Small Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.238152 1.320013 6,538 01/01/2005 to 12/31/2005.................... 1.320013 1.441195 32,532 01/01/2006 to 12/31/2006.................... 1.441195 1.472779 71,743 01/01/2007 to 12/31/2007.................... 1.472779 1.590630 56,579 01/01/2008 to 12/31/2008.................... 1.590630 0.998819 137,581 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.865753 1.977947 4,438 01/01/2005 to 12/31/2005.................... 1.977947 2.000490 43,816 01/01/2006 to 12/31/2006.................... 2.000490 2.067943 91,292 01/01/2007 to 12/31/2007.................... 2.067943 2.114563 66,942 01/01/2008 to 12/31/2008.................... 2.114563 1.767671 71,904 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(9) 07/02/2001 to 12/31/2001.................... 1.552828 1.588756 32,226 01/01/2002 to 12/31/2002.................... 1.588756 1.713360 194,906 01/01/2003 to 12/31/2003.................... 1.713360 1.900673 701,179 01/01/2004 to 12/31/2004.................... 1.900673 1.995567 766,733 01/01/2005 to 12/31/2005.................... 1.995567 2.020485 722,920 01/01/2006 to 12/31/2006.................... 2.020485 2.089202 715,720 01/01/2007 to 12/31/2007.................... 2.089202 2.140105 733,708 01/01/2008 to 12/31/2008.................... 2.140105 1.791324 616,102
II-46
1.40% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Western Asset Management U.S. Government Sub- Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.542135 1.578902 0 01/01/2005 to 12/31/2005.................... 1.578902 1.578667 59,325 01/01/2006 to 12/31/2006.................... 1.578667 1.617724 101,569 01/01/2007 to 12/31/2007.................... 1.617724 1.659451 191,025 01/01/2008 to 12/31/2008.................... 1.659451 1.627610 194,870 Western Asset Management U.S. Government Sub- Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.434460 1.477564 75,153 01/01/2002 to 12/31/2002.................... 1.477564 1.568096 592,262 01/01/2003 to 12/31/2003.................... 1.568096 1.570238 896,737 01/01/2004 to 12/31/2004.................... 1.570238 1.591785 870,170 01/01/2005 to 12/31/2005.................... 1.591785 1.594510 984,184 01/01/2006 to 12/31/2006.................... 1.594510 1.634905 799,649 01/01/2007 to 12/31/2007.................... 1.634905 1.678672 735,352 01/01/2008 to 12/31/2008.................... 1.678672 1.648186 560,845
1.65% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Bond Sub-Account 05/01/2006 to 12/31/2006..................... 14.495461 15.190349 2,598 01/01/2007 to 12/31/2007..................... 15.190349 15.437742 19,135 01/01/2008 to 12/31/2008..................... 15.437742 13.764918 18,130 American Funds Global Small Capitalization Sub- Account 07/02/2001 to 12/31/2001..................... 1.456272 1.342581 15,917 01/01/2002 to 12/31/2002..................... 1.342581 1.068990 202,341 01/01/2003 to 12/31/2003..................... 1.068990 1.614374 325,669 01/01/2004 to 12/31/2004..................... 1.614374 1.919465 357,067 01/01/2005 to 12/31/2005..................... 1.919465 2.366832 388,520 01/01/2006 to 12/31/2006..................... 2.366832 2.888228 514,306 01/01/2007 to 12/31/2007..................... 2.888228 3.449430 606,182 01/01/2008 to 12/31/2008..................... 3.449430 1.576879 619,463 American Funds Growth Sub-Account 07/02/2001 to 12/31/2001..................... 12.432061 10.980001 16,988 01/01/2002 to 12/31/2002..................... 10.980001 8.158972 128,625 01/01/2003 to 12/31/2003..................... 8.158972 10.979584 227,255 01/01/2004 to 12/31/2004..................... 10.979584 12.149050 273,335 01/01/2005 to 12/31/2005..................... 12.149050 13.885866 276,823 01/01/2006 to 12/31/2006..................... 13.885866 15.054881 275,376 01/01/2007 to 12/31/2007..................... 15.054881 16.635658 267,553 01/01/2008 to 12/31/2008..................... 16.635658 9.167556 275,498
II-47
1.65% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Growth-Income Sub-Account 07/02/2001 to 12/31/2001..................... 8.424689 8.166857 9,169 01/01/2002 to 12/31/2002..................... 8.166857 6.559523 108,984 01/01/2003 to 12/31/2003..................... 6.559523 8.544503 255,290 01/01/2004 to 12/31/2004..................... 8.544503 9.276225 273,228 01/01/2005 to 12/31/2005..................... 9.276225 9.657033 296,153 01/01/2006 to 12/31/2006..................... 9.657033 10.943642 296,391 01/01/2007 to 12/31/2007..................... 10.943642 11.306386 257,849 01/01/2008 to 12/31/2008..................... 11.306386 6.911587 272,678
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Balanced Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.008411 7.009250 197,111 American Funds Growth Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998411 6.357620 624,685 American Funds Moderate Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.018410 7.682733 390,716 BlackRock Aggressive Growth Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 33.299262 36.906414 2,810 01/01/2005 to 12/31/2005.................... 36.906414 40.171558 6,374 01/01/2006 to 12/31/2006.................... 40.171558 42.155647 9,989 01/01/2007 to 12/31/2007.................... 42.155647 49.952930 10,425 01/01/2008 to 12/31/2008.................... 49.952930 26.663705 17,558 BlackRock Bond Income Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 3.761324 3.896256 0 01/01/2002 to 12/31/2002.................... 3.896256 4.153850 0 01/01/2003 to 12/31/2003.................... 4.153850 4.322625 349,469 01/01/2004 to 12/31/2004.................... 4.322625 4.437981 1,192,970 01/01/2005 to 12/31/2005.................... 4.437981 4.468514 1,657,805 01/01/2006 to 12/31/2006.................... 4.468514 4.586570 2,004,580 01/01/2007 to 12/31/2007.................... 4.586570 4.792414 2,105,860 01/01/2008 to 12/31/2008.................... 4.792414 4.550133 1,655,380 BlackRock Diversified Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 35.018069 37.769701 1,549 01/01/2005 to 12/31/2005.................... 37.769701 38.276926 9,884 01/01/2006 to 12/31/2006.................... 38.276926 41.592849 16,261 01/01/2007 to 12/31/2007.................... 41.592849 43.293270 27,271 01/01/2008 to 12/31/2008.................... 43.293270 32.016076 26,985 BlackRock Large Cap Core Sub-Account(12) 04/30/2007 to 12/31/2007.................... 7.717460 7.781092 86,831 01/01/2008 to 12/31/2008.................... 7.781092 4.807688 119,229
II-48
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Large Cap Sub-Account(12) (previously BlackRock Investment Trust Sub- Account (Class B)) 07/02/2001 to 12/31/2001.................... 7.015751 6.406361 0 01/01/2002 to 12/31/2002.................... 6.406361 4.654534 0 01/01/2003 to 12/31/2003.................... 4.654534 5.959547 32,870 01/01/2004 to 12/31/2004.................... 5.959547 6.496004 80,772 01/01/2005 to 12/31/2005.................... 6.496004 6.615113 93,532 01/01/2006 to 12/31/2006.................... 6.615113 7.422121 76,983 01/01/2007 to 04/27/2007.................... 7.422121 7.782537 0 BlackRock Large Cap Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.068057 1.177872 282,255 01/01/2005 to 12/31/2005.................... 1.177872 1.225479 493,055 01/01/2006 to 12/31/2006.................... 1.225479 1.438939 907,204 01/01/2007 to 12/31/2007.................... 1.438939 1.462490 1,776,396 01/01/2008 to 12/31/2008.................... 1.462490 0.935315 2,005,046 BlackRock Large Cap Value Sub-Account (Class E)(9) 05/01/2002 to 12/31/2002.................... 1.000000 0.792143 0 01/01/2003 to 12/31/2003.................... 0.792143 1.057210 141,369 01/01/2004 to 12/31/2004.................... 1.057210 1.180754 413,570 01/01/2005 to 12/31/2005.................... 1.180754 1.230032 385,547 01/01/2006 to 12/31/2006.................... 1.230032 1.445197 381,675 01/01/2007 to 12/31/2007.................... 1.445197 1.470883 277,703 01/01/2008 to 12/31/2008.................... 1.470883 0.941708 279,875 BlackRock Legacy Large Cap Growth Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.308436 2.528615 88,821 01/01/2005 to 12/31/2005.................... 2.528615 2.660633 177,678 01/01/2006 to 12/31/2006.................... 2.660633 2.724327 341,353 01/01/2007 to 12/31/2007.................... 2.724327 3.179790 525,309 01/01/2008 to 12/31/2008.................... 3.179790 1.983988 619,773 BlackRock Legacy Large Cap Growth Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.979081 2.720331 0 01/01/2002 to 12/31/2002.................... 2.720331 1.789982 0 01/01/2003 to 12/31/2003.................... 1.789982 2.380083 360,586 01/01/2004 to 12/31/2004.................... 2.380083 2.547627 646,165 01/01/2005 to 12/31/2005.................... 2.547627 2.683096 582,743 01/01/2006 to 12/31/2006.................... 2.683096 2.750299 487,196 01/01/2007 to 12/31/2007.................... 2.750299 3.213109 412,589 01/01/2008 to 12/31/2008.................... 3.213109 2.006766 387,513 BlackRock Money Market Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 2.195962 2.207732 0 01/01/2002 to 12/31/2002.................... 2.207732 2.201294 0 01/01/2003 to 12/31/2003.................... 2.201294 2.181647 588,176 01/01/2004 to 12/31/2004.................... 2.181647 2.165940 1,081,808 01/01/2005 to 12/31/2005.................... 2.165940 2.191132 1,290,686 01/01/2006 to 12/31/2006.................... 2.191132 2.257964 1,731,097 01/01/2007 to 12/31/2007.................... 2.257964 2.332420 2,684,653 01/01/2008 to 12/31/2008.................... 2.332420 2.358502 5,989,973
II-49
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Strategic Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.608047 1.808505 850,913 01/01/2005 to 12/31/2005.................... 1.808505 1.852238 1,736,483 01/01/2006 to 12/31/2006.................... 1.852238 2.125829 1,998,038 01/01/2007 to 12/31/2007.................... 2.125829 2.017720 1,872,461 01/01/2008 to 12/31/2008.................... 2.017720 1.221875 1,820,063 BlackRock Strategic Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.428036 1.396942 0 01/01/2002 to 12/31/2002.................... 1.396942 1.080993 0 01/01/2003 to 12/31/2003.................... 1.080993 1.617970 997,945 01/01/2004 to 12/31/2004.................... 1.617970 1.836470 2,212,853 01/01/2005 to 12/31/2005.................... 1.836470 1.881722 2,081,295 01/01/2006 to 12/31/2006.................... 1.881722 2.163361 1,722,839 01/01/2007 to 12/31/2007.................... 2.163361 2.055782 1,424,625 01/01/2008 to 12/31/2008.................... 2.055782 1.246028 1,149,280 Clarion Global Real Estate Sub-Account (previously Neuberger Berman Real Estate Sub-Account)(17) 05/01/2004 to 12/31/2004.................... 9.998808 12.829343 99,217 01/01/2005 to 12/31/2005.................... 12.829343 14.325212 275,907 01/01/2006 to 12/31/2006.................... 14.325212 19.425899 461,636 01/01/2007 to 12/31/2007.................... 19.425899 16.271764 548,921 01/01/2008 to 12/31/2008.................... 16.271764 9.353651 583,793 Davis Venture Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.843555 3.059403 1,075,169 01/01/2005 to 12/31/2005.................... 3.059403 3.316902 3,087,854 01/01/2006 to 12/31/2006.................... 3.316902 3.737460 5,165,928 01/01/2007 to 12/31/2007.................... 3.737460 3.843359 6,421,661 01/01/2008 to 12/31/2008.................... 3.843359 2.290895 6,974,088 Davis Venture Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.778511 2.635433 0 01/01/2002 to 12/31/2002.................... 2.635433 2.167576 0 01/01/2003 to 12/31/2003.................... 2.167576 2.793015 1,013,251 01/01/2004 to 12/31/2004.................... 2.793015 3.086927 2,470,166 01/01/2005 to 12/31/2005.................... 3.086927 3.351013 2,509,057 01/01/2006 to 12/31/2006.................... 3.351013 3.778708 2,355,062 01/01/2007 to 12/31/2007.................... 3.778708 3.889069 2,081,706 01/01/2008 to 12/31/2008.................... 3.889069 2.320520 1,713,450 FI Large Cap Sub-Account 05/01/2006 to 12/31/2006.................... 17.008703 17.200922 4,245 01/01/2007 to 12/31/2007.................... 17.200922 17.583045 7,506 01/01/2008 to 12/31/2008.................... 17.583045 9.539586 8,900 FI Mid Cap Opportunities Sub-Account(4) 05/01/2002 to 12/31/2002.................... 1.000000 0.810093 0 01/01/2003 to 12/31/2003.................... 0.810093 1.134487 166,188 01/01/2004 to 04/30/2004.................... 1.134487 1.124032 311,182
II-50
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ FI Mid Cap Opportunities Sub-Account(3) (previously Janus Mid Cap Sub-Account) 07/02/2001 to 12/31/2001.................... 1.874877 1.544884 0 01/01/2002 to 12/31/2002.................... 1.544884 1.078416 0 01/01/2003 to 12/31/2003.................... 1.078416 1.427230 128,598 01/01/2004 to 12/31/2004.................... 1.427230 1.643328 503,079 01/01/2005 to 12/31/2005.................... 1.643328 1.727663 546,390 01/01/2006 to 12/31/2006.................... 1.727663 1.899682 663,413 01/01/2007 to 12/31/2007.................... 1.899682 2.024036 574,046 01/01/2008 to 12/31/2008.................... 2.024036 0.889037 518,166 FI Value Leaders Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.288597 2.580629 43,054 01/01/2005 to 12/31/2005.................... 2.580629 2.808915 150,322 01/01/2006 to 12/31/2006.................... 2.808915 3.091412 418,994 01/01/2007 to 12/31/2007.................... 3.091412 3.166699 369,738 01/01/2008 to 12/31/2008.................... 3.166699 1.900624 324,843 FI Value Leaders Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.588519 2.349441 0 01/01/2002 to 12/31/2002.................... 2.349441 1.862607 0 01/01/2003 to 12/31/2003.................... 1.862607 2.326735 65,915 01/01/2004 to 12/31/2004.................... 2.326735 2.604158 107,931 01/01/2005 to 12/31/2005.................... 2.604158 2.837001 116,414 01/01/2006 to 12/31/2006.................... 2.837001 3.125342 126,283 01/01/2007 to 12/31/2007.................... 3.125342 3.204600 125,799 01/01/2008 to 12/31/2008.................... 3.204600 1.925548 108,419 Franklin Templeton Small Cap Growth Sub- Account 07/02/2001 to 12/31/2001.................... 0.953641 0.879413 0 01/01/2002 to 12/31/2002.................... 0.879413 0.623692 0 01/01/2003 to 12/31/2003.................... 0.623692 0.888912 289,136 01/01/2004 to 12/31/2004.................... 0.888912 0.973743 1,011,488 01/01/2005 to 12/31/2005.................... 0.973743 1.001908 1,210,426 01/01/2006 to 12/31/2006.................... 1.001908 1.083509 1,612,369 01/01/2007 to 12/31/2007.................... 1.083509 1.113904 1,720,837 01/01/2008 to 12/31/2008.................... 1.113904 0.644313 1,767,526 Harris Oakmark Focused Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.995692 3.249665 623,081 01/01/2005 to 12/31/2005.................... 3.249665 3.513950 1,637,522 01/01/2006 to 12/31/2006.................... 3.513950 3.885123 2,294,963 01/01/2007 to 12/31/2007.................... 3.885123 3.557994 2,696,827 01/01/2008 to 12/31/2008.................... 3.557994 1.888890 2,925,054 Harris Oakmark Focused Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.498068 2.616574 0 01/01/2002 to 12/31/2002.................... 2.616574 2.347167 0 01/01/2003 to 12/31/2003.................... 2.347167 3.064101 1,008,302 01/01/2004 to 12/31/2004.................... 3.064101 3.314970 2,238,370 01/01/2005 to 12/31/2005.................... 3.314970 3.588015 2,118,457 01/01/2006 to 12/31/2006.................... 3.588015 3.970992 1,710,740 01/01/2007 to 12/31/2007.................... 3.970992 3.640263 1,530,813 01/01/2008 to 12/31/2008.................... 3.640263 1.934485 1,445,155
II-51
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Harris Oakmark International Sub-Account (Class B)(6) 05/01/2003 to 12/31/2003.................... 0.874438 1.174138 354,194 01/01/2004 to 12/31/2004.................... 1.174138 1.394699 1,794,947 01/01/2005 to 12/31/2005.................... 1.394699 1.570386 3,501,079 01/01/2006 to 12/31/2006.................... 1.570386 1.994375 5,735,216 01/01/2007 to 12/31/2007.................... 1.994375 1.943523 7,218,326 01/01/2008 to 12/31/2008.................... 1.943523 1.132328 6,959,815 Janus Forty Sub-Account 04/30/2007 to 12/31/2007.................... 144.013390 176.607648 2,409 01/01/2008 to 12/31/2008.................... 176.607648 100.958623 16,506 Jennison Growth Sub-Account (Class B) 05/01/2005 to 12/31/2005.................... 0.405896 0.487402 74,616 01/01/2006 to 12/31/2006.................... 0.487402 0.492529 189,759 01/01/2007 to 12/31/2007.................... 0.492529 0.540683 324,137 01/01/2008 to 12/31/2008.................... 0.540683 0.338126 374,282 Jennison Growth Subaccount (Class B)(8)(10) (previously Met/Putnam Voyager Sub-Account (Class B)) 05/01/2004 to 12/31/2004.................... 0.421725 0.440116 14,584 01/01/2005 to 04/30/2005.................... 0.440116 0.401032 0 Jennison Growth Sub-Account (Class E) 05/01/2005 to 12/31/2005.................... 0.406174 0.488443 241,296 01/01/2006 to 12/31/2006.................... 0.488443 0.493941 185,101 01/01/2007 to 12/31/2007.................... 0.493941 0.542988 119,388 01/01/2008 to 12/31/2008.................... 0.542988 0.339423 105,132 Jennison Growth Subaccount (Class E)(9)(10) (previously Met/Putnam Voyager Sub-Account (Class E)) 07/02/2001 to 12/31/2001.................... 0.574147 0.491917 0 01/01/2002 to 12/31/2002.................... 0.491917 0.344376 0 01/01/2003 to 12/31/2003.................... 0.344376 0.426653 159,748 01/01/2004 to 12/31/2004.................... 0.426653 0.440119 233,843 01/01/2005 to 04/30/2005.................... 0.440119 0.405026 0 Julius Baer International Stock Sub-Account (Class B) (formerly FI International Stock Sub-Account (Class B))(8)(15) 05/01/2004 to 12/31/2004.................... 1.174316 1.341022 207,260 01/01/2005 to 12/31/2005.................... 1.341022 1.554225 550,772 01/01/2006 to 12/31/2006.................... 1.554225 1.780501 859,971 01/01/2007 to 12/31/2007.................... 1.780501 1.931421 1,138,150 01/01/2008 to 12/31/2008.................... 1.931421 1.061381 1,572,471 Julius Baer International Stock Sub-Account (Class E) (formerly FI International Stock Sub-Account (Class E))(9)(15) 07/02/2001 to 12/31/2001.................... 1.248281 1.140121 0 01/01/2002 to 12/31/2002.................... 1.140121 0.925665 0 01/01/2003 to 12/31/2003.................... 0.925665 1.166856 463,974 01/01/2004 to 12/31/2004.................... 1.166856 1.357192 608,112 01/01/2005 to 12/31/2005.................... 1.357192 1.575828 567,468 01/01/2006 to 12/31/2006.................... 1.575828 1.805756 384,657 01/01/2007 to 12/31/2007.................... 1.805756 1.961230 375,503 01/01/2008 to 12/31/2008.................... 1.961230 1.078541 337,342
II-52
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Lazard Mid Cap Sub-Account 05/01/2002 to 12/31/2002.................... 1.139379 0.965995 0 01/01/2003 to 12/31/2003.................... 0.965995 1.201297 163,329 01/01/2004 to 12/31/2004.................... 1.201297 1.354476 548,426 01/01/2005 to 12/31/2005.................... 1.354476 1.442618 710,203 01/01/2006 to 12/31/2006.................... 1.442618 1.630572 741,863 01/01/2007 to 12/31/2007.................... 1.630572 1.563417 1,511,439 01/01/2008 to 12/31/2008.................... 1.563417 0.950686 1,566,921 Legg Mason Partners Aggressive Growth Sub- Account(5)(13) 07/02/2001 to 12/31/2001.................... 0.951648 0.774430 0 01/01/2002 to 12/31/2002.................... 0.774430 0.528032 0 01/01/2003 to 12/31/2003.................... 0.528032 0.676043 112,568 01/01/2004 to 12/31/2004.................... 0.676043 0.722524 307,447 01/01/2005 to 12/31/2005.................... 0.722524 0.808835 481,283 01/01/2006 to 12/31/2006.................... 0.808835 0.783364 813,699 01/01/2007 to 12/31/2007.................... 0.783364 0.789527 965,438 01/01/2008 to 12/31/2008.................... 0.789527 0.474251 949,847 Legg Mason Value Equity Sub-Account 05/01/2006 to 12/31/2006.................... 9.321724 9.990344 17,034 01/01/2007 to 12/31/2007.................... 9.990344 9.264183 28,688 01/01/2008 to 12/31/2008.................... 9.264183 4.143706 30,125 Lehman Brothers(R) Aggregate Bond Index Sub- Account 07/02/2001 to 12/31/2001.................... 1.095821 1.127096 0 01/01/2002 to 12/31/2002.................... 1.127096 1.221309 0 01/01/2003 to 12/31/2003.................... 1.221309 1.244426 831,124 01/01/2004 to 12/31/2004.................... 1.244426 1.273611 2,078,402 01/01/2005 to 12/31/2005.................... 1.273611 1.278586 3,494,301 01/01/2006 to 12/31/2006.................... 1.278586 1.308282 4,610,812 01/01/2007 to 12/31/2007.................... 1.308282 1.375233 5,254,813 01/01/2008 to 12/31/2008.................... 1.375233 1.431702 4,350,182 Loomis Sayles Small Cap Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.330155 2.639467 186,451 01/01/2005 to 12/31/2005.................... 2.639467 2.775271 556,793 01/01/2006 to 12/31/2006.................... 2.775271 3.183890 1,080,860 01/01/2007 to 12/31/2007.................... 3.183890 3.502586 1,706,944 01/01/2008 to 12/31/2008.................... 3.502586 2.207315 1,858,304 Loomis Sayles Small Cap Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.366018 2.238304 0 01/01/2002 to 12/31/2002.................... 2.238304 1.728611 0 01/01/2003 to 12/31/2003.................... 1.728611 2.321876 271,700 01/01/2004 to 12/31/2004.................... 2.321876 2.659214 463,290 01/01/2005 to 12/31/2005.................... 2.659214 2.798519 480,785 01/01/2006 to 12/31/2006.................... 2.798519 3.213642 445,741 01/01/2007 to 12/31/2007.................... 3.213642 3.538671 418,307 01/01/2008 to 12/31/2008.................... 3.538671 2.232299 351,024
II-53
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Lord Abbett Bond Debenture Sub-Account 07/02/2001 to 12/31/2001.................... 1.371979 1.379335 0 01/01/2002 to 12/31/2002.................... 1.379335 1.351684 0 01/01/2003 to 12/31/2003.................... 1.351684 1.587476 749,060 01/01/2004 to 12/31/2004.................... 1.587476 1.692338 2,634,228 01/01/2005 to 12/31/2005.................... 1.692338 1.692952 3,725,393 01/01/2006 to 12/31/2006.................... 1.692952 1.821290 4,578,350 01/01/2007 to 12/31/2007.................... 1.821290 1.912501 5,498,142 01/01/2008 to 12/31/2008.................... 1.912501 1.534240 4,576,735 Met/AIM Small Cap Growth Sub-Account 05/01/2002 to 12/31/2002.................... 1.121872 0.846774 0 01/01/2003 to 12/31/2003.................... 0.846774 1.158960 110,103 01/01/2004 to 12/31/2004.................... 1.158960 1.215706 287,164 01/01/2005 to 12/31/2005.................... 1.215706 1.297300 337,119 01/01/2006 to 12/31/2006.................... 1.297300 1.460023 343,758 01/01/2007 to 12/31/2007.................... 1.460023 1.598198 325,390 01/01/2008 to 12/31/2008.................... 1.598198 0.965092 334,692 Met/Franklin Income Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998411 7.983631 9,668 Met/Franklin Mutual Shares Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998411 6.597865 17,150 Met/Franklin Templeton Founding Strategy Sub- Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998411 7.031214 45,821 Met/Templeton Growth Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998411 6.567015 2,914 MetLife Aggressive Sub-Account 05/01/2005 to 12/31/2005.................... 9.998808 11.146837 7,138 01/01/2006 to 12/31/2006.................... 11.146837 12.707218 114,393 01/01/2007 to 12/31/2007.................... 12.707218 12.932691 141,325 01/01/2008 to 12/31/2008.................... 12.932691 7.590311 137,134 MetLife Conservative Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998808 10.296283 6,307 01/01/2006 to 12/31/2006.................... 10.296283 10.847789 45,474 01/01/2007 to 12/31/2007.................... 10.847789 11.286401 230,763 01/01/2008 to 12/31/2008.................... 11.286401 9.523075 289,579 MetLife Conservative to Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998808 10.514136 73,210 01/01/2006 to 12/31/2006.................... 10.514136 11.339636 243,075 01/01/2007 to 12/31/2007.................... 11.339636 11.713206 677,099 01/01/2008 to 12/31/2008.................... 11.713206 9.051039 970,965 MetLife Mid Cap Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.050462 1.029066 0 01/01/2002 to 12/31/2002.................... 1.029066 0.861006 0 01/01/2003 to 12/31/2003.................... 0.861006 1.141814 449,810 01/01/2004 to 12/31/2004.................... 1.141814 1.302240 1,349,973 01/01/2005 to 12/31/2005.................... 1.302240 1.437840 1,680,432 01/01/2006 to 12/31/2006.................... 1.437840 1.556448 2,092,496 01/01/2007 to 12/31/2007.................... 1.556448 1.649223 2,386,944 01/01/2008 to 12/31/2008.................... 1.649223 1.034106 2,389,365
II-54
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MetLife Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998808 10.744858 218,867 01/01/2006 to 12/31/2006.................... 10.744858 11.844436 930,371 01/01/2007 to 12/31/2007.................... 11.844436 12.180356 2,311,940 01/01/2008 to 12/31/2008.................... 12.180356 8.567215 3,474,649 MetLife Moderate to Aggressive Allocation Sub- Account 05/01/2005 to 12/31/2005.................... 9.998808 10.970640 258,154 01/01/2006 to 12/31/2006.................... 10.970640 12.350345 1,466,084 01/01/2007 to 12/31/2007.................... 12.350345 12.640209 3,019,789 01/01/2008 to 12/31/2008.................... 12.640209 8.083009 3,445,407 MetLife Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 3.765130 3.487123 0 01/01/2002 to 12/31/2002.................... 3.487123 2.663010 0 01/01/2003 to 12/31/2003.................... 2.663010 3.356265 280,055 01/01/2004 to 12/31/2004.................... 3.356265 3.647836 750,148 01/01/2005 to 12/31/2005.................... 3.647836 3.752799 841,606 01/01/2006 to 12/31/2006.................... 3.752799 4.260642 1,081,018 01/01/2007 to 12/31/2007.................... 4.260642 4.407868 1,167,914 01/01/2008 to 12/31/2008.................... 4.407868 2.725565 1,243,468 MFS(R) Investors Trust Sub-Account (Class B)(11) 05/01/2004 to 12/31/2004.................... 7.671145 8.500928 1,000 01/01/2005 to 12/31/2005.................... 8.500928 8.957184 4,041 01/01/2006 to 04/30/2006.................... 8.957184 9.359990 3,712 MFS(R) Investors Trust Sub-Account (Class E)(11) 07/02/2001 to 12/31/2001.................... 0.893824 0.828409 0 01/01/2002 to 12/31/2002.................... 0.828409 0.651213 0 01/01/2003 to 12/31/2003.................... 0.651213 0.779841 117,844 01/01/2004 to 12/31/2004.................... 0.779841 0.855266 321,671 01/01/2005 to 12/31/2005.................... 0.855266 0.902957 300,068 01/01/2006 to 04/30/2006.................... 0.902957 0.943870 0 MFS(R) Investors Trust Sub-Account(2)(11) (previously MFS(R) Research Managers Sub- Account) 07/02/2001 to 12/31/2001.................... 0.975125 0.874868 0 01/01/2002 to 12/31/2002.................... 0.874868 0.653545 0 01/01/2003 to 12/31/2003.................... 0.653545 0.798203 107,751 01/01/2004 to 04/30/2004.................... 0.798203 0.812518 139,304 MFS(R) Research International Sub-Account 07/02/2001 to 12/31/2001.................... 0.915884 0.837810 0 01/01/2002 to 12/31/2002.................... 0.837810 0.728277 0 01/01/2003 to 12/31/2003.................... 0.728277 0.947848 285,128 01/01/2004 to 12/31/2004.................... 0.947848 1.116891 892,029 01/01/2005 to 12/31/2005.................... 1.116891 1.281644 1,266,548 01/01/2006 to 12/31/2006.................... 1.281644 1.598808 1,807,608 01/01/2007 to 12/31/2007.................... 1.598808 1.785095 2,827,867 01/01/2008 to 12/31/2008.................... 1.785095 1.013977 4,095,812 MFS(R) Total Return Sub-Account 05/01/2004 to 12/31/2004.................... 3.645377 3.962474 5,466 01/01/2005 to 12/31/2005.................... 3.962474 4.016932 893,393 01/01/2006 to 12/31/2006.................... 4.016932 4.431736 1,093,162 01/01/2007 to 12/31/2007.................... 4.431736 4.547436 1,320,688 01/01/2008 to 12/31/2008.................... 4.547436 3.480191 1,306,753
II-55
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MFS(R) Value Sub-Account (Class B) (formerly Harris Oakmark Large Cap Value Sub-Account (Class B))(8)(16) 05/01/2004 to 12/31/2004.................... 1.210121 1.305453 867,956 01/01/2005 to 12/31/2005.................... 1.305453 1.265477 1,991,877 01/01/2006 to 12/31/2006.................... 1.265477 1.469805 2,212,275 01/01/2007 to 12/31/2007.................... 1.469805 1.390211 2,152,159 01/01/2008 to 12/31/2008.................... 1.390211 0.908357 2,128,579 MFS(R) Value Sub-Account (Class E) (formerly Harris Oakmark Large Cap Value Sub-Account (Class E))(9)(16) 05/01/2002 to 12/31/2002.................... 1.181982 0.969147 0 01/01/2003 to 12/31/2003.................... 0.969147 1.197248 675,815 01/01/2004 to 12/31/2004.................... 1.197248 1.313196 1,548,748 01/01/2005 to 12/31/2005.................... 1.313196 1.274379 1,453,395 01/01/2006 to 12/31/2006.................... 1.274379 1.481335 1,046,720 01/01/2007 to 12/31/2007.................... 1.481335 1.402540 921,294 01/01/2008 to 12/31/2008.................... 1.402540 0.917686 863,248 MFS(R) Total Return Sub-Account(1) (previously Balanced Sub-Account) 07/02/2001 to 12/31/2001.................... 1.494175 1.466880 0 01/01/2002 to 12/31/2002.................... 1.466880 1.247335 0 01/01/2003 to 12/31/2003.................... 1.247335 1.470726 420,632 01/01/2004 to 04/30/2004.................... 1.470726 1.457644 746,550 Morgan Stanley EAFE(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 0.943437 0.850224 0 01/01/2002 to 12/31/2002.................... 0.850224 0.697528 0 01/01/2003 to 12/31/2003.................... 0.697528 0.943244 448,521 01/01/2004 to 12/31/2004.................... 0.943244 1.108790 1,319,462 01/01/2005 to 12/31/2005.................... 1.108790 1.234205 1,638,697 01/01/2006 to 12/31/2006.................... 1.234205 1.526036 1,797,160 01/01/2007 to 12/31/2007.................... 1.526036 1.662172 2,230,007 01/01/2008 to 12/31/2008.................... 1.662172 0.946866 2,122,211 Neuberger Berman Mid Cap Value Sub-Account 07/02/2001 to 12/31/2001.................... 1.548838 1.498398 0 01/01/2002 to 12/31/2002.................... 1.498398 1.330422 0 01/01/2003 to 12/31/2003.................... 1.330422 1.785481 144,438 01/01/2004 to 12/31/2004.................... 1.785481 2.158483 853,984 01/01/2005 to 12/31/2005.................... 2.158483 2.381260 1,937,452 01/01/2006 to 12/31/2006.................... 2.381260 2.609886 2,891,414 01/01/2007 to 12/31/2007.................... 2.609886 2.654186 3,764,153 01/01/2008 to 12/31/2008.................... 2.654186 1.373916 4,396,889 Oppenheimer Capital Appreciation Sub-Account 05/01/2005 to 12/31/2005.................... 7.930966 8.608707 6,760 01/01/2006 to 12/31/2006.................... 8.608707 9.131331 36,021 01/01/2007 to 12/31/2007.................... 9.131331 10.285082 48,785 01/01/2008 to 12/31/2008.................... 10.285082 5.479802 49,200 Oppenheimer Global Equity Sub-Account 05/01/2004 to 12/31/2004.................... 12.707150 14.653220 4,214 01/01/2005 to 12/31/2005.................... 14.653220 16.750746 26,991 01/01/2006 to 12/31/2006.................... 16.750746 19.209905 72,423 01/01/2007 to 12/31/2007.................... 19.209905 20.117370 110,565 01/01/2008 to 12/31/2008.................... 20.117370 11.785434 126,590
II-56
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ PIMCO Inflation Protection Bond Sub-Account 05/01/2006 to 12/31/2006.................... 10.978974 11.082609 54,149 01/01/2007 to 12/31/2007.................... 11.082609 12.101606 126,768 01/01/2008 to 12/31/2008.................... 12.101606 11.105247 371,727 PIMCO Total Return Sub-Account 07/02/2001 to 12/31/2001.................... 1.007382 1.053265 0 01/01/2002 to 12/31/2002.................... 1.053265 1.134583 0 01/01/2003 to 12/31/2003.................... 1.134583 1.166403 2,588,733 01/01/2004 to 12/31/2004.................... 1.166403 1.206825 7,383,838 01/01/2005 to 12/31/2005.................... 1.206825 1.216235 11,523,820 01/01/2006 to 12/31/2006.................... 1.216235 1.252931 14,270,403 01/01/2007 to 12/31/2007.................... 1.252931 1.328206 15,632,251 01/01/2008 to 12/31/2008.................... 1.328206 1.314400 14,551,036 RCM Technology Sub-Account 07/02/2001 to 12/31/2001.................... 0.757746 0.609113 0 01/01/2002 to 12/31/2002.................... 0.609113 0.295777 0 01/01/2003 to 12/31/2003.................... 0.295777 0.464083 742,655 01/01/2004 to 12/31/2004.................... 0.464083 0.437661 1,262,601 01/01/2005 to 12/31/2005.................... 0.437661 0.478898 1,240,390 01/01/2006 to 12/31/2006.................... 0.478898 0.497258 1,174,062 01/01/2007 to 12/31/2007.................... 0.497258 0.644552 1,492,886 01/01/2008 to 12/31/2008.................... 0.644552 0.352865 1,713,517 Russell 2000(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.216598 1.182629 0 01/01/2002 to 12/31/2002.................... 1.182629 0.925275 0 01/01/2003 to 12/31/2003.................... 0.925275 1.328844 567,797 01/01/2004 to 12/31/2004.................... 1.328844 1.537582 1,290,069 01/01/2005 to 12/31/2005.................... 1.537582 1.580682 1,570,284 01/01/2006 to 12/31/2006.................... 1.580682 1.831890 1,803,280 01/01/2007 to 12/31/2007.................... 1.831890 1.774602 1,979,142 01/01/2008 to 12/31/2008.................... 1.774602 1.160069 1,911,413 SSgA Growth and Income ETF Sub-Account (formerly Cyclical Growth and Income ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.510408 11.154018 0 01/01/2007 to 12/31/2007.................... 11.154018 11.586079 1,807 01/01/2008 to 12/31/2008.................... 11.586079 8.557256 36,836 SSgA Growth ETF Sub-Account (formerly Cyclical Growth ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.701227 11.408665 3,725 01/01/2007 to 12/31/2007.................... 11.408665 11.875318 5,753 01/01/2008 to 12/31/2008.................... 11.875318 7.845300 8,225 T. Rowe Price Large Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.113637 1.206357 411,092 01/01/2005 to 12/31/2005.................... 1.206357 1.264276 1,204,510 01/01/2006 to 12/31/2006.................... 1.264276 1.406653 2,346,411 01/01/2007 to 12/31/2007.................... 1.406653 1.513164 3,699,193 01/01/2008 to 12/31/2008.................... 1.513164 0.864925 4,236,583
II-57
1.45% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ T. Rowe Price Mid Cap Growth Sub-Account 07/02/2001 to 12/31/2001.................... 0.930796 0.823372 0 01/01/2002 to 12/31/2002.................... 0.823372 0.454161 0 01/01/2003 to 12/31/2003.................... 0.454161 0.611635 499,074 01/01/2004 to 12/31/2004.................... 0.611635 0.710250 2,971,928 01/01/2005 to 12/31/2005.................... 0.710250 0.802451 4,053,101 01/01/2006 to 12/31/2006.................... 0.802451 0.839683 6,105,826 01/01/2007 to 12/31/2007.................... 0.839683 0.973491 7,090,708 01/01/2008 to 12/31/2008.................... 0.973491 0.578065 7,499,130 T. Rowe Price Small Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.233717 1.314848 60,296 01/01/2005 to 12/31/2005.................... 1.314848 1.434841 388,621 01/01/2006 to 12/31/2006.................... 1.434841 1.465554 846,806 01/01/2007 to 12/31/2007.................... 1.465554 1.582032 1,113,588 01/01/2008 to 12/31/2008.................... 1.582032 0.992921 1,230,477 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.856901 1.967911 492,276 01/01/2005 to 12/31/2005.................... 1.967911 1.989347 1,725,497 01/01/2006 to 12/31/2006.................... 1.989347 2.055399 3,023,064 01/01/2007 to 12/31/2007.................... 2.055399 2.100680 4,497,418 01/01/2008 to 12/31/2008.................... 2.100680 1.755185 3,878,167 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(9) 07/02/2001 to 12/31/2001.................... 1.547655 1.583070 0 01/01/2002 to 12/31/2002.................... 1.583070 1.706369 0 01/01/2003 to 12/31/2003.................... 1.706369 1.891974 1,049,643 01/01/2004 to 12/31/2004.................... 1.891974 1.985439 2,244,541 01/01/2005 to 12/31/2005.................... 1.985439 2.009228 2,186,113 01/01/2006 to 12/31/2006.................... 2.009228 2.076526 2,178,728 01/01/2007 to 12/31/2007.................... 2.076526 2.126051 2,102,157 01/01/2008 to 12/31/2008.................... 2.126051 1.778668 1,693,074 Western Asset Management U.S. Government Sub- Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.534818 1.570890 958,888 01/01/2005 to 12/31/2005.................... 1.570890 1.569873 2,335,109 01/01/2006 to 12/31/2006.................... 1.569873 1.607910 3,318,924 01/01/2007 to 12/31/2007.................... 1.607910 1.648555 3,891,051 01/01/2008 to 12/31/2008.................... 1.648555 1.616113 3,597,556 Western Asset Management U.S. Government Sub- Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.429681 1.472276 0 01/01/2002 to 12/31/2002.................... 1.472276 1.561708 0 01/01/2003 to 12/31/2003.................... 1.561708 1.563055 892,208 01/01/2004 to 12/31/2004.................... 1.563055 1.583709 1,611,308 01/01/2005 to 12/31/2005.................... 1.583709 1.585629 1,538,248 01/01/2006 to 12/31/2006.................... 1.585629 1.624988 1,311,558 01/01/2007 to 12/31/2007.................... 1.624988 1.667651 1,148,880 01/01/2008 to 12/31/2008.................... 1.667651 1.636545 1,071,313
II-58
1.70% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Bond Sub-Account 05/01/2006 to 12/31/2006..................... 14.430321 15.117074 73,714 01/01/2007 to 12/31/2007..................... 15.117074 15.355552 381,227 01/01/2008 to 12/31/2008..................... 15.355552 13.684769 407,883 American Funds Global Small Capitalization Sub- Account 07/02/2001 to 12/31/2001..................... 1.453962 1.340084 0 01/01/2002 to 12/31/2002..................... 1.340084 1.066463 0 01/01/2003 to 12/31/2003..................... 1.066463 1.609753 399,819 01/01/2004 to 12/31/2004..................... 1.609753 1.913012 1,411,315 01/01/2005 to 12/31/2005..................... 1.913012 2.357699 2,343,635 01/01/2006 to 12/31/2006..................... 2.357699 2.875650 3,656,387 01/01/2007 to 12/31/2007..................... 2.875650 3.432683 4,730,097 01/01/2008 to 12/31/2008..................... 3.432683 1.568434 5,450,076 American Funds Growth Sub-Account 07/02/2001 to 12/31/2001..................... 12.325415 10.882824 0 01/01/2002 to 12/31/2002..................... 10.882824 8.082710 0 01/01/2003 to 12/31/2003..................... 8.082710 10.871528 400,545 01/01/2004 to 12/31/2004..................... 10.871528 12.023456 1,223,281 01/01/2005 to 12/31/2005..................... 12.023456 13.735471 1,741,977 01/01/2006 to 12/31/2006..................... 13.735471 14.884400 2,097,885 01/01/2007 to 12/31/2007..................... 14.884400 16.439009 2,295,795 01/01/2008 to 12/31/2008..................... 16.439009 9.054631 2,397,924 American Funds Growth-Income Sub-Account 07/02/2001 to 12/31/2001..................... 8.352463 8.094707 0 01/01/2002 to 12/31/2002..................... 8.094707 6.498317 0 01/01/2003 to 12/31/2003..................... 6.498317 8.460555 507,933 01/01/2004 to 12/31/2004..................... 8.460555 9.180484 1,248,923 01/01/2005 to 12/31/2005..................... 9.180484 9.552598 1,628,151 01/01/2006 to 12/31/2006..................... 9.552598 10.819898 1,810,952 01/01/2007 to 12/31/2007..................... 10.819898 11.172921 2,036,555 01/01/2008 to 12/31/2008..................... 11.172921 6.826567 2,118,299
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Balanced Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.008356 7.006834 77,597 American Funds Growth Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998356 6.355426 474,130 American Funds Moderate Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.018355 7.680087 157,033 BlackRock Aggressive Growth Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 33.033515 36.599740 14 01/01/2005 to 12/31/2005.................... 36.599740 39.817901 1,961 01/01/2006 to 12/31/2006.................... 39.817901 41.763681 1,853 01/01/2007 to 12/31/2007.................... 41.763681 49.463597 2,382 01/01/2008 to 12/31/2008.................... 49.463597 26.389229 2,905
II-59
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Bond Income Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 3.727288 3.860039 225,528 01/01/2002 to 12/31/2002.................... 3.860039 4.113183 582,376 01/01/2003 to 12/31/2003.................... 4.113183 4.278163 884,002 01/01/2004 to 12/31/2004.................... 4.278163 4.390130 1,021,364 01/01/2005 to 12/31/2005.................... 4.390130 4.418130 1,041,389 01/01/2006 to 12/31/2006.................... 4.418130 4.532595 1,021,385 01/01/2007 to 12/31/2007.................... 4.532595 4.733636 976,697 01/01/2008 to 12/31/2008.................... 4.733636 4.492074 807,503 BlackRock Diversified Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 34.707273 37.422077 914 01/01/2005 to 12/31/2005.................... 37.422077 37.905729 1,068 01/01/2006 to 12/31/2006.................... 37.905729 41.168965 1,436 01/01/2007 to 12/31/2007.................... 41.168965 42.830519 2,148 01/01/2008 to 12/31/2008.................... 42.830519 31.657964 2,311 BlackRock Large Cap Core Sub-Account(12) 04/30/2007 to 12/31/2007.................... 7.626066 7.686366 73,091 01/01/2008 to 12/31/2008.................... 7.686366 4.746774 63,532 BlackRock Large Cap Sub-Account(12) (previously BlackRock Investment Trust Sub- Account (Class B)) 07/02/2001 to 12/31/2001.................... 6.952785 6.347384 6,420 01/01/2002 to 12/31/2002.................... 6.347384 4.609377 26,015 01/01/2003 to 12/31/2003.................... 4.609377 5.898786 63,892 01/01/2004 to 12/31/2004.................... 5.898786 6.426552 91,826 01/01/2005 to 12/31/2005.................... 6.426552 6.541126 83,065 01/01/2006 to 12/31/2006.................... 6.541126 7.335451 73,743 01/01/2007 to 04/27/2007.................... 7.335451 7.690404 0 BlackRock Large Cap Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.066985 1.176301 129,326 01/01/2005 to 12/31/2005.................... 1.176301 1.223235 190,855 01/01/2006 to 12/31/2006.................... 1.223235 1.435589 441,138 01/01/2007 to 12/31/2007.................... 1.435589 1.458352 486,783 01/01/2008 to 12/31/2008.................... 1.458352 0.932200 429,983 BlackRock Large Cap Value Sub-Account (Class E)(9) 05/01/2002 to 12/31/2002.................... 1.000000 0.791872 12,191 01/01/2003 to 12/31/2003.................... 0.791872 1.056317 262,962 01/01/2004 to 12/31/2004.................... 1.056317 1.179166 601,733 01/01/2005 to 12/31/2005.................... 1.179166 1.227765 566,403 01/01/2006 to 12/31/2006.................... 1.227765 1.441814 638,388 01/01/2007 to 12/31/2007.................... 1.441814 1.466703 482,101 01/01/2008 to 12/31/2008.................... 1.466703 0.938560 370,477 BlackRock Legacy Large Cap Growth Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.297490 2.515792 18,136 01/01/2005 to 12/31/2005.................... 2.515792 2.645822 40,745 01/01/2006 to 12/31/2006.................... 2.645822 2.707812 51,217 01/01/2007 to 12/31/2007.................... 2.707812 3.158926 56,735 01/01/2008 to 12/31/2008.................... 3.158926 1.969979 66,674
II-60
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Legacy Large Cap Growth Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.969160 2.710625 332,685 01/01/2002 to 12/31/2002.................... 2.710625 1.782699 415,897 01/01/2003 to 12/31/2003.................... 1.782699 2.369215 648,081 01/01/2004 to 12/31/2004.................... 2.369215 2.534722 692,328 01/01/2005 to 12/31/2005.................... 2.534722 2.668175 577,553 01/01/2006 to 12/31/2006.................... 2.668175 2.733640 396,651 01/01/2007 to 12/31/2007.................... 2.733640 3.192042 342,798 01/01/2008 to 12/31/2008.................... 3.192042 1.992606 263,101 BlackRock Money Market Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 2.176424 2.187507 324,274 01/01/2002 to 12/31/2002.................... 2.187507 2.180026 1,244,380 01/01/2003 to 12/31/2003.................... 2.180026 2.159484 1,156,155 01/01/2004 to 12/31/2004.................... 2.159484 2.142861 961,402 01/01/2005 to 12/31/2005.................... 2.142861 2.166704 1,122,233 01/01/2006 to 12/31/2006.................... 2.166704 2.231677 1,071,485 01/01/2007 to 12/31/2007.................... 2.231677 2.304109 1,000,105 01/01/2008 to 12/31/2008.................... 2.304109 2.328706 1,833,282 BlackRock Strategic Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.604973 1.804450 222,843 01/01/2005 to 12/31/2005.................... 1.804450 1.847164 355,953 01/01/2006 to 12/31/2006.................... 1.847164 2.118949 472,478 01/01/2007 to 12/31/2007.................... 2.118949 2.010179 600,038 01/01/2008 to 12/31/2008.................... 2.010179 1.216697 591,850 BlackRock Strategic Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.427329 1.395932 796,821 01/01/2002 to 12/31/2002.................... 1.395932 1.079667 1,933,552 01/01/2003 to 12/31/2003.................... 1.079667 1.594479 2,609,789 01/01/2004 to 12/31/2004.................... 1.594479 1.808899 2,962,805 01/01/2005 to 12/31/2005.................... 1.808899 1.852548 2,489,094 01/01/2006 to 12/31/2006.................... 1.852548 2.128758 2,117,927 01/01/2007 to 12/31/2007.................... 2.128758 2.021883 1,717,184 01/01/2008 to 12/31/2008.................... 2.021883 1.224865 1,292,329 Clarion Global Real Estate Sub-Account (previously Neuberger Berman Real Estate Sub-Account)(17) 05/01/2004 to 12/31/2004.................... 9.998767 12.825046 35,814 01/01/2005 to 12/31/2005.................... 12.825046 14.313282 76,380 01/01/2006 to 12/31/2006.................... 14.313282 19.400065 124,484 01/01/2007 to 12/31/2007.................... 19.400065 16.241955 124,114 01/01/2008 to 12/31/2008.................... 16.241955 9.331819 119,189 Davis Venture Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.830075 3.043892 217,157 01/01/2005 to 12/31/2005.................... 3.043892 3.298442 588,242 01/01/2006 to 12/31/2006.................... 3.298442 3.714808 924,130 01/01/2007 to 12/31/2007.................... 3.714808 3.818147 1,051,764 01/01/2008 to 12/31/2008.................... 3.818147 2.274722 1,050,983
II-61
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Davis Venture Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.769260 2.626035 429,539 01/01/2002 to 12/31/2002.................... 2.626035 2.158768 1,057,579 01/01/2003 to 12/31/2003.................... 2.158768 2.780284 1,776,807 01/01/2004 to 12/31/2004.................... 2.780284 3.071317 1,936,388 01/01/2005 to 12/31/2005.................... 3.071317 3.332407 1,815,720 01/01/2006 to 12/31/2006.................... 3.332407 3.755854 1,601,147 01/01/2007 to 12/31/2007.................... 3.755854 3.863604 1,409,705 01/01/2008 to 12/31/2008.................... 3.863604 2.304166 1,170,773 FI Large Cap Sub-Account 05/01/2006 to 12/31/2006.................... 16.926625 17.112239 1,863 01/01/2007 to 12/31/2007.................... 17.112239 17.483597 1,923 01/01/2008 to 12/31/2008.................... 17.483597 9.480861 1,850 FI Mid Cap Opportunities Sub-Account(4) 05/01/2002 to 12/31/2002.................... 1.000000 0.809819 11,006 01/01/2003 to 12/31/2003.................... 0.809819 1.133534 167,196 01/01/2004 to 04/30/2004.................... 1.133534 1.122903 220,307 FI Mid Cap Opportunities Sub-Account(3) (previously Janus Mid Cap Sub-Account) 07/02/2001 to 12/31/2001.................... 1.870817 1.541172 42,264 01/01/2002 to 12/31/2002.................... 1.541172 1.075284 155,536 01/01/2003 to 12/31/2003.................... 1.075284 1.422361 192,066 01/01/2004 to 12/31/2004.................... 1.422361 1.636902 440,269 01/01/2005 to 12/31/2005.................... 1.636902 1.720049 419,491 01/01/2006 to 12/31/2006.................... 1.720049 1.890367 415,992 01/01/2007 to 12/31/2007.................... 1.890367 2.013099 372,476 01/01/2008 to 12/31/2008.................... 2.013099 0.883788 398,951 FI Value Leaders Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.276034 2.565613 6,905 01/01/2005 to 12/31/2005.................... 2.565613 2.791179 36,587 01/01/2006 to 12/31/2006.................... 2.791179 3.070363 36,412 01/01/2007 to 12/31/2007.................... 3.070363 3.143557 57,435 01/01/2008 to 12/31/2008.................... 3.143557 1.885786 69,832 FI Value Leaders Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.577961 2.339294 45,616 01/01/2002 to 12/31/2002.................... 2.339294 1.853635 101,294 01/01/2003 to 12/31/2003.................... 1.853635 2.314366 143,730 01/01/2004 to 12/31/2004.................... 2.314366 2.589016 196,755 01/01/2005 to 12/31/2005.................... 2.589016 2.819100 180,215 01/01/2006 to 12/31/2006.................... 2.819100 3.104073 214,576 01/01/2007 to 12/31/2007.................... 3.104073 3.181192 177,837 01/01/2008 to 12/31/2008.................... 3.181192 1.910521 134,001 Franklin Templeton Small Cap Growth Sub- Account 07/02/2001 to 12/31/2001.................... 0.953560 0.879131 120,968 01/01/2002 to 12/31/2002.................... 0.879131 0.623174 325,762 01/01/2003 to 12/31/2003.................... 0.623174 0.887726 527,481 01/01/2004 to 12/31/2004.................... 0.887726 0.971956 726,261 01/01/2005 to 12/31/2005.................... 0.971956 0.999571 690,237 01/01/2006 to 12/31/2006.................... 0.999571 1.080443 608,122 01/01/2007 to 12/31/2007.................... 1.080443 1.110194 545,819 01/01/2008 to 12/31/2008.................... 1.110194 0.641844 526,962
II-62
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Harris Oakmark Focused Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.979250 3.230759 111,252 01/01/2005 to 12/31/2005.................... 3.230759 3.491767 219,185 01/01/2006 to 12/31/2006.................... 3.491767 3.858674 276,594 01/01/2007 to 12/31/2007.................... 3.858674 3.531995 309,666 01/01/2008 to 12/31/2008.................... 3.531995 1.874145 317,836 Harris Oakmark Focused Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.487876 2.605275 590,460 01/01/2002 to 12/31/2002.................... 2.605275 2.335866 1,289,841 01/01/2003 to 12/31/2003.................... 2.335866 3.047827 1,761,538 01/01/2004 to 12/31/2004.................... 3.047827 3.295711 1,907,611 01/01/2005 to 12/31/2005.................... 3.295711 3.565392 1,721,240 01/01/2006 to 12/31/2006.................... 3.565392 3.943988 1,452,687 01/01/2007 to 12/31/2007.................... 3.943988 3.613689 1,225,198 01/01/2008 to 12/31/2008.................... 3.613689 1.919397 1,078,712 Harris Oakmark International Sub-Account (Class B)(6) 05/01/2003 to 12/31/2003.................... 0.873756 1.172825 108,362 01/01/2004 to 12/31/2004.................... 1.172825 1.392442 546,118 01/01/2005 to 12/31/2005.................... 1.392442 1.567063 920,584 01/01/2006 to 12/31/2006.................... 1.567063 1.989162 1,375,374 01/01/2007 to 12/31/2007.................... 1.989162 1.937469 1,374,747 01/01/2008 to 12/31/2008.................... 1.937469 1.128233 1,158,686 Harris Oakmark International Sub-Account (Class E)(7) 05/01/2002 to 12/31/2002.................... 1.059020 0.882701 50,270 01/01/2003 to 12/31/2003.................... 0.882701 1.175232 167,729 01/01/2004 to 12/31/2004.................... 1.175232 1.397200 190,072 01/01/2005 to 12/31/2005.................... 1.397200 1.572928 320,800 01/01/2006 to 12/31/2006.................... 1.572928 1.998722 387,138 01/01/2007 to 12/31/2007.................... 1.998722 1.949118 397,117 01/01/2008 to 12/31/2008.................... 1.949118 1.136135 342,739 Janus Forty Sub-Account 04/30/2007 to 12/31/2007.................... 142.216688 174.345849 1,812 01/01/2008 to 12/31/2008.................... 174.345849 99.615534 6,033 Jennison Growth Sub-Account (Class B) 05/01/2005 to 12/31/2005.................... 0.404881 0.486022 38,043 01/01/2006 to 12/31/2006.................... 0.486022 0.490890 15,275 01/01/2007 to 12/31/2007.................... 0.490890 0.538612 17,958 01/01/2008 to 12/31/2008.................... 0.538612 0.336662 24,147 Jennison Growth Subaccount (Class B)(8)(10) (previously Met/Putnam Voyager Sub-Account (Class B)) 05/01/2004 to 12/31/2004.................... 0.420880 0.439089 34,839 01/01/2005 to 04/30/2005.................... 0.439089 0.400031 0 Jennison Growth Sub-Account (Class E) 05/01/2005 to 12/31/2005.................... 0.405164 0.487067 335,756 01/01/2006 to 12/31/2006.................... 0.487067 0.492303 281,494 01/01/2007 to 12/31/2007.................... 0.492303 0.540916 332,928 01/01/2008 to 12/31/2008.................... 0.540916 0.337958 258,736
II-63
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Jennison Growth Subaccount (Class E)(9)(10) (previously Met/Putnam Voyager Sub-Account (Class E)) 07/02/2001 to 12/31/2001.................... 0.573810 0.491512 65,984 01/01/2002 to 12/31/2002.................... 0.491512 0.343921 287,464 01/01/2003 to 12/31/2003.................... 0.343921 0.425877 576,326 01/01/2004 to 12/31/2004.................... 0.425877 0.439098 467,041 01/01/2005 to 04/30/2005.................... 0.439098 0.404020 0 Julius Baer International Stock Sub-Account (Class B) (formerly FI International Stock Sub-Account (Class B))(8)(15) 05/01/2004 to 12/31/2004.................... 1.166701 1.331885 71,817 01/01/2005 to 12/31/2005.................... 1.331885 1.542867 158,018 01/01/2006 to 12/31/2006.................... 1.542867 1.766608 216,333 01/01/2007 to 12/31/2007.................... 1.766608 1.915389 233,216 01/01/2008 to 12/31/2008.................... 1.915389 1.052042 371,033 Julius Baer International Stock Sub-Account (Class E) (formerly FI International Stock Sub-Account (Class E))(9)(15) 07/02/2001 to 12/31/2001.................... 1.241943 1.134064 190,791 01/01/2002 to 12/31/2002.................... 1.134064 0.920290 690,284 01/01/2003 to 12/31/2003.................... 0.920290 1.159496 1,070,308 01/01/2004 to 12/31/2004.................... 1.159496 1.347955 1,098,003 01/01/2005 to 12/31/2005.................... 1.347955 1.564323 941,155 01/01/2006 to 12/31/2006.................... 1.564323 1.791679 707,911 01/01/2007 to 12/31/2007.................... 1.791679 1.944964 663,498 01/01/2008 to 12/31/2008.................... 1.944964 1.069058 491,493 Lazard Mid Cap Sub-Account 05/01/2002 to 12/31/2002.................... 1.139061 0.965412 63,403 01/01/2003 to 12/31/2003.................... 0.965412 1.199970 512,105 01/01/2004 to 12/31/2004.................... 1.199970 1.352301 665,384 01/01/2005 to 12/31/2005.................... 1.352301 1.439584 650,499 01/01/2006 to 12/31/2006.................... 1.439584 1.626332 592,953 01/01/2007 to 12/31/2007.................... 1.626332 1.558567 655,923 01/01/2008 to 12/31/2008.................... 1.558567 0.947261 667,875 Legg Mason Partners Aggressive Growth Sub- Account(5)(13) 07/02/2001 to 12/31/2001.................... 0.951567 0.774171 88,806 01/01/2002 to 12/31/2002.................... 0.774171 0.527591 299,874 01/01/2003 to 12/31/2003.................... 0.527591 0.675148 381,833 01/01/2004 to 12/31/2004.................... 0.675148 0.721206 430,386 01/01/2005 to 12/31/2005.................... 0.721206 0.806956 401,144 01/01/2006 to 12/31/2006.................... 0.806956 0.781155 470,509 01/01/2007 to 12/31/2007.................... 0.781155 0.786905 441,471 01/01/2008 to 12/31/2008.................... 0.786905 0.472439 387,215 Legg Mason Value Equity Sub-Account 05/01/2006 to 12/31/2006.................... 9.289131 9.952113 11,994 01/01/2007 to 12/31/2007.................... 9.952113 9.224090 11,770 01/01/2008 to 12/31/2008.................... 9.224090 4.123695 11,992
II-64
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Lehman Brothers(R) Aggregate Bond Index Sub- Account 07/02/2001 to 12/31/2001.................... 1.094262 1.125213 138,917 01/01/2002 to 12/31/2002.................... 1.125213 1.218660 563,451 01/01/2003 to 12/31/2003.................... 1.218660 1.241099 1,159,329 01/01/2004 to 12/31/2004.................... 1.241099 1.269569 1,344,094 01/01/2005 to 12/31/2005.................... 1.269569 1.273892 1,484,719 01/01/2006 to 12/31/2006.................... 1.273892 1.302829 1,457,503 01/01/2007 to 12/31/2007.................... 1.302829 1.368813 1,461,412 01/01/2008 to 12/31/2008.................... 1.368813 1.424305 1,114,767 Loomis Sayles Small Cap Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.318528 2.625426 24,798 01/01/2005 to 12/31/2005.................... 2.625426 2.759133 97,154 01/01/2006 to 12/31/2006.................... 2.759133 3.163799 217,181 01/01/2007 to 12/31/2007.................... 3.163799 3.478736 253,581 01/01/2008 to 12/31/2008.................... 3.478736 2.191182 262,612 Loomis Sayles Small Cap Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.357548 2.229758 97,823 01/01/2002 to 12/31/2002.................... 2.229758 1.721148 169,262 01/01/2003 to 12/31/2003.................... 1.721148 2.310693 270,331 01/01/2004 to 12/31/2004.................... 2.310693 2.645080 342,764 01/01/2005 to 12/31/2005.................... 2.645080 2.782258 326,235 01/01/2006 to 12/31/2006.................... 2.782258 3.193376 322,777 01/01/2007 to 12/31/2007.................... 3.193376 3.514587 258,881 01/01/2008 to 12/31/2008.................... 3.514587 2.215992 224,808 Lord Abbett Bond Debenture Sub-Account 07/02/2001 to 12/31/2001.................... 1.356144 1.363080 115,521 01/01/2002 to 12/31/2002.................... 1.363080 1.335094 363,197 01/01/2003 to 12/31/2003.................... 1.335094 1.567206 1,029,336 01/01/2004 to 12/31/2004.................... 1.567206 1.669891 1,378,405 01/01/2005 to 12/31/2005.................... 1.669891 1.669665 1,481,777 01/01/2006 to 12/31/2006.................... 1.669665 1.795342 1,617,115 01/01/2007 to 12/31/2007.................... 1.795342 1.884306 1,658,597 01/01/2008 to 12/31/2008.................... 1.884306 1.510864 1,307,361 Met/AIM Small Cap Growth Sub-Account 05/01/2002 to 12/31/2002.................... 1.121558 0.846253 40,889 01/01/2003 to 12/31/2003.................... 0.846253 1.157663 150,184 01/01/2004 to 12/31/2004.................... 1.157663 1.213737 264,999 01/01/2005 to 12/31/2005.................... 1.213737 1.294553 261,181 01/01/2006 to 12/31/2006.................... 1.294553 1.456205 243,296 01/01/2007 to 12/31/2007.................... 1.456205 1.593218 207,441 01/01/2008 to 12/31/2008.................... 1.593218 0.961601 182,617 Met/Franklin Income Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998356 7.980883 20,906 Met/Franklin Mutual Shares Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998356 6.595589 0 Met/Franklin Templeton Founding Strategy Sub- Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998356 7.028791 14,597 Met/Templeton Growth Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998356 6.564751 0
II-65
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MetLife Aggressive Sub-Account 05/01/2005 to 12/31/2005.................... 9.998767 11.143100 115 01/01/2006 to 12/31/2006.................... 11.143100 12.696624 8,067 01/01/2007 to 12/31/2007.................... 12.696624 12.915414 19,055 01/01/2008 to 12/31/2008.................... 12.915414 7.576359 21,149 MetLife Conservative Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998767 10.292828 2,440 01/01/2006 to 12/31/2006.................... 10.292828 10.838743 44,607 01/01/2007 to 12/31/2007.................... 10.838743 11.271323 54,975 01/01/2008 to 12/31/2008.................... 11.271323 9.505582 113,807 MetLife Conservative to Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998767 10.510609 25,642 01/01/2006 to 12/31/2006.................... 10.510609 11.330181 97,047 01/01/2007 to 12/31/2007.................... 11.330181 11.697557 135,884 01/01/2008 to 12/31/2008.................... 11.697557 9.034411 193,089 MetLife Mid Cap Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.049924 1.028297 35,737 01/01/2002 to 12/31/2002.................... 1.028297 0.859924 181,927 01/01/2003 to 12/31/2003.................... 0.859924 1.139806 492,520 01/01/2004 to 12/31/2004.................... 1.139806 1.299299 690,995 01/01/2005 to 12/31/2005.................... 1.299299 1.433878 792,505 01/01/2006 to 12/31/2006.................... 1.433878 1.551385 822,026 01/01/2007 to 12/31/2007.................... 1.551385 1.643032 831,895 01/01/2008 to 12/31/2008.................... 1.643032 1.029706 604,686 MetLife Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998767 10.741254 57,820 01/01/2006 to 12/31/2006.................... 10.741254 11.834561 440,798 01/01/2007 to 12/31/2007.................... 11.834561 12.164084 764,439 01/01/2008 to 12/31/2008.................... 12.164084 8.551473 844,251 MetLife Moderate to Aggressive Allocation Sub- Account 05/01/2005 to 12/31/2005.................... 9.998767 10.966961 56,770 01/01/2006 to 12/31/2006.................... 10.966961 12.340049 297,582 01/01/2007 to 12/31/2007.................... 12.340049 12.623322 915,422 01/01/2008 to 12/31/2008.................... 12.623322 8.068154 1,295,389 MetLife Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 3.744067 3.466792 56,920 01/01/2002 to 12/31/2002.................... 3.466792 2.646163 315,866 01/01/2003 to 12/31/2003.................... 2.646163 3.333363 556,570 01/01/2004 to 12/31/2004.................... 3.333363 3.621129 635,795 01/01/2005 to 12/31/2005.................... 3.621129 3.723466 672,106 01/01/2006 to 12/31/2006.................... 3.723466 4.225233 667,366 01/01/2007 to 12/31/2007.................... 4.225233 4.369038 604,242 01/01/2008 to 12/31/2008.................... 4.369038 2.700197 479,125 MFS(R) Investors Trust Sub-Account (Class B)(11) 05/01/2004 to 12/31/2004.................... 7.651943 8.476841 6,064 01/01/2005 to 12/31/2005.................... 8.476841 8.927355 12,645 01/01/2006 to 04/30/2006.................... 8.927355 9.327315 13,903
II-66
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MFS(R) Investors Trust Sub-Account (Class E)(11) 07/02/2001 to 12/31/2001.................... 0.892852 0.827308 69,338 01/01/2002 to 12/31/2002.................... 0.827308 0.650024 209,693 01/01/2003 to 12/31/2003.................... 0.650024 0.778025 545,215 01/01/2004 to 12/31/2004.................... 0.778025 0.852847 972,831 01/01/2005 to 12/31/2005.................... 0.852847 0.899954 801,223 01/01/2006 to 04/30/2006.................... 0.899954 0.940580 0 MFS(R) Investors Trust Sub-Account(2)(11) (previously MFS(R) Research Managers Sub- Account) 07/02/2001 to 12/31/2001.................... 0.974065 0.873709 35,218 01/01/2002 to 12/31/2002.................... 0.873709 0.652353 254,373 01/01/2003 to 12/31/2003.................... 0.652353 0.796346 380,102 01/01/2004 to 04/30/2004.................... 0.796346 0.810495 380,811 MFS(R) Research International Sub-Account 07/02/2001 to 12/31/2001.................... 0.926246 0.847093 69,731 01/01/2002 to 12/31/2002.................... 0.847093 0.736001 320,965 01/01/2003 to 12/31/2003.................... 0.736001 0.957376 614,709 01/01/2004 to 12/31/2004.................... 0.957376 1.127554 784,506 01/01/2005 to 12/31/2005.................... 1.127554 1.293235 809,040 01/01/2006 to 12/31/2006.................... 1.293235 1.612464 924,087 01/01/2007 to 12/31/2007.................... 1.612464 1.799437 1,095,286 01/01/2008 to 12/31/2008.................... 1.799437 1.021610 1,296,795 MFS(R) Total Return Sub-Account 05/01/2004 to 12/31/2004.................... 3.614511 3.927621 579,574 01/01/2005 to 12/31/2005.................... 3.927621 3.979617 374,107 01/01/2006 to 12/31/2006.................... 3.979617 4.388381 405,438 01/01/2007 to 12/31/2007.................... 4.388381 4.500688 353,317 01/01/2008 to 12/31/2008.................... 4.500688 3.442685 241,334 MFS(R) Value Sub-Account (Class B) (formerly Harris Oakmark Large Cap Value Sub-Account (Class B))(8)(16) 05/01/2004 to 12/31/2004.................... 1.206809 1.301449 220,558 01/01/2005 to 12/31/2005.................... 1.301449 1.260968 331,239 01/01/2006 to 12/31/2006.................... 1.260968 1.463837 462,023 01/01/2007 to 12/31/2007.................... 1.463837 1.383871 431,438 01/01/2008 to 12/31/2008.................... 1.383871 0.903760 391,084 MFS(R) Value Sub-Account (Class E) (formerly Harris Oakmark Large Cap Value Sub-Account (Class E))(9)(16) 05/01/2002 to 12/31/2002.................... 1.179929 0.967136 249,450 01/01/2003 to 12/31/2003.................... 0.967136 1.194167 1,007,194 01/01/2004 to 12/31/2004.................... 1.194167 1.309160 1,087,646 01/01/2005 to 12/31/2005.................... 1.309160 1.269829 899,883 01/01/2006 to 12/31/2006.................... 1.269829 1.475310 751,442 01/01/2007 to 12/31/2007.................... 1.475310 1.396133 646,891 01/01/2008 to 12/31/2008.................... 1.396133 0.913035 453,015 MFS(R) Total Return Sub-Account(1) (previously Balanced Sub-Account) 07/02/2001 to 12/31/2001.................... 1.489198 1.461634 58,534 01/01/2002 to 12/31/2002.................... 1.461634 1.242258 298,841 01/01/2003 to 12/31/2003.................... 1.242258 1.464011 600,760 01/01/2004 to 04/30/2004.................... 1.464011 1.450750 640,572
II-67
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Morgan Stanley EAFE(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 0.942114 0.848828 61,803 01/01/2002 to 12/31/2002.................... 0.848828 0.696033 348,113 01/01/2003 to 12/31/2003.................... 0.696033 0.940753 582,434 01/01/2004 to 12/31/2004.................... 0.940753 1.105307 803,232 01/01/2005 to 12/31/2005.................... 1.105307 1.229715 911,294 01/01/2006 to 12/31/2006.................... 1.229715 1.519726 952,063 01/01/2007 to 12/31/2007.................... 1.519726 1.654467 1,049,635 01/01/2008 to 12/31/2008.................... 1.654467 0.942003 939,905 Neuberger Berman Mid Cap Value Sub-Account 07/02/2001 to 12/31/2001.................... 1.546791 1.496064 16,557 01/01/2002 to 12/31/2002.................... 1.496064 1.327685 153,771 01/01/2003 to 12/31/2003.................... 1.327685 1.780927 375,475 01/01/2004 to 12/31/2004.................... 1.780927 2.151900 589,905 01/01/2005 to 12/31/2005.................... 2.151900 2.372814 885,931 01/01/2006 to 12/31/2006.................... 2.372814 2.599333 957,732 01/01/2007 to 12/31/2007.................... 2.599333 2.642124 934,659 01/01/2008 to 12/31/2008.................... 2.642124 1.366984 868,637 Oppenheimer Capital Appreciation Sub-Account 05/01/2005 to 12/31/2005.................... 7.914246 8.587712 2,657 01/01/2006 to 12/31/2006.................... 8.587712 9.104520 13,369 01/01/2007 to 12/31/2007.................... 9.104520 10.249730 23,633 01/01/2008 to 12/31/2008.................... 10.249730 5.458219 28,632 Oppenheimer Global Equity Sub-Account 05/01/2004 to 12/31/2004.................... 12.661659 14.595923 1,409 01/01/2005 to 12/31/2005.................... 14.595923 16.676933 12,488 01/01/2006 to 12/31/2006.................... 16.676933 19.115723 26,274 01/01/2007 to 12/31/2007.................... 19.115723 20.008676 29,730 01/01/2008 to 12/31/2008.................... 20.008676 11.715866 30,264 PIMCO Inflation Protection Bond Sub-Account 05/01/2006 to 12/31/2006.................... 10.962500 11.062311 1,317 01/01/2007 to 12/31/2007.................... 11.062311 12.073372 14,028 01/01/2008 to 12/31/2008.................... 12.073372 11.073782 76,344 PIMCO Total Return Sub-Account 07/02/2001 to 12/31/2001.................... 1.007189 1.052798 385,965 01/01/2002 to 12/31/2002.................... 1.052798 1.133503 2,638,927 01/01/2003 to 12/31/2003.................... 1.133503 1.164719 4,369,658 01/01/2004 to 12/31/2004.................... 1.164719 1.204478 5,126,077 01/01/2005 to 12/31/2005.................... 1.204478 1.213264 5,707,109 01/01/2006 to 12/31/2006.................... 1.213264 1.249248 5,265,586 01/01/2007 to 12/31/2007.................... 1.249248 1.323636 4,996,764 01/01/2008 to 12/31/2008.................... 1.323636 1.309221 4,389,804 RCM Technology Sub-Account 07/02/2001 to 12/31/2001.................... 0.757599 0.608856 236,284 01/01/2002 to 12/31/2002.................... 0.608856 0.295504 625,233 01/01/2003 to 12/31/2003.................... 0.295504 0.458700 1,054,382 01/01/2004 to 12/31/2004.................... 0.458700 0.432367 1,010,293 01/01/2005 to 12/31/2005.................... 0.432367 0.472869 728,402 01/01/2006 to 12/31/2006.................... 0.472869 0.490754 751,258 01/01/2007 to 12/31/2007.................... 0.490754 0.635801 835,795 01/01/2008 to 12/31/2008.................... 0.635801 0.347899 872,931
II-68
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Russell 2000(R) Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.214991 1.180793 41,596 01/01/2002 to 12/31/2002.................... 1.180793 0.923380 296,688 01/01/2003 to 12/31/2003.................... 0.923380 1.325456 811,431 01/01/2004 to 12/31/2004.................... 1.325456 1.532894 1,053,344 01/01/2005 to 12/31/2005.................... 1.532894 1.575077 1,141,584 01/01/2006 to 12/31/2006.................... 1.575077 1.824484 1,150,995 01/01/2007 to 12/31/2007.................... 1.824484 1.766538 1,056,001 01/01/2008 to 12/31/2008.................... 1.766538 1.154218 775,592 SSgA Growth and Income ETF Sub-Account (formerly Cyclical Growth and Income ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.507342 11.147068 0 01/01/2007 to 12/31/2007.................... 11.147068 11.573039 4,198 01/01/2008 to 12/31/2008.................... 11.573039 8.543334 5,888 SSgA Growth ETF Sub-Account (formerly Cyclical Growth ETF Sub-Account)(14) 05/01/2006 to 12/31/2006.................... 10.698105 11.401556 191 01/01/2007 to 12/31/2007.................... 11.401556 11.861953 1,678 01/01/2008 to 12/31/2008.................... 11.861953 7.832534 1,308 T. Rowe Price Large Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.110588 1.202656 122,399 01/01/2005 to 12/31/2005.................... 1.202656 1.259769 390,181 01/01/2006 to 12/31/2006.................... 1.259769 1.400941 445,110 01/01/2007 to 12/31/2007.................... 1.400941 1.506262 521,122 01/01/2008 to 12/31/2008.................... 1.506262 0.860547 565,354 T. Rowe Price Mid Cap Growth Sub-Account 07/02/2001 to 12/31/2001.................... 0.930595 0.822988 35,676 01/01/2002 to 12/31/2002.................... 0.822988 0.453700 216,411 01/01/2003 to 12/31/2003.................... 0.453700 0.610707 903,798 01/01/2004 to 12/31/2004.................... 0.610707 0.708818 1,758,734 01/01/2005 to 12/31/2005.................... 0.708818 0.800433 1,902,184 01/01/2006 to 12/31/2006.................... 0.800433 0.837155 2,333,048 01/01/2007 to 12/31/2007.................... 0.837155 0.970072 2,459,844 01/01/2008 to 12/31/2008.................... 0.970072 0.575745 2,313,511 T. Rowe Price Small Cap Growth Sub-Account 05/01/2004 to 12/31/2004.................... 1.229301 1.309708 17,031 01/01/2005 to 12/31/2005.................... 1.309708 1.428520 71,287 01/01/2006 to 12/31/2006.................... 1.428520 1.458370 124,002 01/01/2007 to 12/31/2007.................... 1.458370 1.573486 150,134 01/01/2008 to 12/31/2008.................... 1.573486 0.987061 136,618 Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.848098 1.957932 154,913 01/01/2005 to 12/31/2005.................... 1.957932 1.978274 452,037 01/01/2006 to 12/31/2006.................... 1.978274 2.042940 685,469 01/01/2007 to 12/31/2007.................... 2.042940 2.086898 731,381 01/01/2008 to 12/31/2008.................... 2.086898 1.742795 664,418
II-69
1.50% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Western Asset Management Strategic Bond Opportunities Sub-Account (Class B)(9) 07/02/2001 to 12/31/2001.................... 1.542500 1.577405 191,781 01/01/2002 to 12/31/2002.................... 1.577405 1.699410 532,430 01/01/2003 to 12/31/2003.................... 1.699410 1.883316 1,201,121 01/01/2004 to 12/31/2004.................... 1.883316 1.975363 1,377,461 01/01/2005 to 12/31/2005.................... 1.975363 1.998034 1,218,517 01/01/2006 to 12/31/2006.................... 1.998034 2.063928 1,227,596 01/01/2007 to 12/31/2007.................... 2.063928 2.112091 1,130,430 01/01/2008 to 12/31/2008.................... 2.112091 1.766103 887,376 Western Asset Management U.S. Government Sub- Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.527541 1.562924 208,245 01/01/2005 to 12/31/2005.................... 1.562924 1.561134 587,526 01/01/2006 to 12/31/2006.................... 1.561134 1.598163 831,499 01/01/2007 to 12/31/2007.................... 1.598163 1.637739 905,121 01/01/2008 to 12/31/2008.................... 1.637739 1.604705 793,327 Western Asset Management U.S. Government Sub- Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.424919 1.467007 381,965 01/01/2002 to 12/31/2002.................... 1.467007 1.555340 1,252,719 01/01/2003 to 12/31/2003.................... 1.555340 1.555910 1,725,027 01/01/2004 to 12/31/2004.................... 1.555910 1.575680 1,601,190 01/01/2005 to 12/31/2005.................... 1.575680 1.576803 1,459,605 01/01/2006 to 12/31/2006.................... 1.576803 1.615138 1,156,287 01/01/2007 to 12/31/2007.................... 1.615138 1.656709 1,037,174 01/01/2008 to 12/31/2008.................... 1.656709 1.624992 758,148
1.75% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Bond Sub-Account 05/01/2006 to 12/31/2006..................... 14.365473 15.044153 29,868 01/01/2007 to 12/31/2007..................... 15.044153 15.273800 79,642 01/01/2008 to 12/31/2008..................... 15.273800 13.605087 77,554 American Funds Global Small Capitalization Sub- Account 07/02/2001 to 12/31/2001..................... 1.451655 1.337649 101,630 01/01/2002 to 12/31/2002..................... 1.337649 1.063984 495,579 01/01/2003 to 12/31/2003..................... 1.063984 1.605210 756,241 01/01/2004 to 12/31/2004..................... 1.605210 1.906657 1,228,886 01/01/2005 to 12/31/2005..................... 1.906657 2.348696 1,558,812 01/01/2006 to 12/31/2006..................... 2.348696 2.863241 1,686,405 01/01/2007 to 12/31/2007..................... 2.863241 3.416153 1,719,437 01/01/2008 to 12/31/2008..................... 3.416153 1.560096 1,613,728
II-70
1.75% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Growth Sub-Account 07/02/2001 to 12/31/2001..................... 12.217535 10.785149 87,006 01/01/2002 to 12/31/2002..................... 10.785149 8.006151 303,680 01/01/2003 to 12/31/2003..................... 8.006151 10.763174 527,329 01/01/2004 to 12/31/2004..................... 10.763174 11.897655 656,687 01/01/2005 to 12/31/2005..................... 11.897655 13.584985 722,468 01/01/2006 to 12/31/2006..................... 13.584985 14.713987 748,164 01/01/2007 to 12/31/2007..................... 14.713987 16.242628 714,807 01/01/2008 to 12/31/2008..................... 16.242628 8.941966 711,350 American Funds Growth-Income Sub-Account 07/02/2001 to 12/31/2001..................... 8.279336 8.021955 93,671 01/01/2002 to 12/31/2002..................... 8.021955 6.436681 361,204 01/01/2003 to 12/31/2003..................... 6.436681 8.376130 567,631 01/01/2004 to 12/31/2004..................... 8.376130 9.084320 828,577 01/01/2005 to 12/31/2005..................... 9.084320 9.447825 853,967 01/01/2006 to 12/31/2006..................... 9.447825 10.695891 820,646 01/01/2007 to 12/31/2007..................... 10.695891 11.039317 770,415 01/01/2008 to 12/31/2008..................... 11.039317 6.741546 659,371
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ American Funds Balanced Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.008246 7.002004 343,103 American Funds Growth Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998247 6.351042 1,300,442 American Funds Moderate Allocation Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 10.018246 7.674798 201,387 BlackRock Aggressive Growth Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 32.508364 35.994014 6,226 01/01/2005 to 12/31/2005.................... 35.994014 39.119897 11,985 01/01/2006 to 12/31/2006.................... 39.119897 40.990647 25,657 01/01/2007 to 12/31/2007.................... 40.990647 48.499263 66,958 01/01/2008 to 12/31/2008.................... 48.499263 25.848728 62,479 BlackRock Bond Income Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 3.661310 3.789816 381,067 01/01/2002 to 12/31/2002.................... 3.789816 4.034315 1,414,185 01/01/2003 to 12/31/2003.................... 4.034315 4.191937 2,401,613 01/01/2004 to 12/31/2004.................... 4.191937 4.297336 3,094,533 01/01/2005 to 12/31/2005.................... 4.297336 4.320432 4,312,982 01/01/2006 to 12/31/2006.................... 4.320432 4.427948 3,954,970 01/01/2007 to 12/31/2007.................... 4.427948 4.619701 3,816,270 01/01/2008 to 12/31/2008.................... 4.619701 4.379560 2,886,691 BlackRock Diversified Sub-Account (Class B) 05/01/2004 to 12/31/2004.................... 34.093929 36.736393 7,701 01/01/2005 to 12/31/2005.................... 36.736393 37.174095 23,463 01/01/2006 to 12/31/2006.................... 37.174095 40.334109 35,511 01/01/2007 to 12/31/2007.................... 40.334109 41.919801 53,396 01/01/2008 to 12/31/2008.................... 41.919801 30.953714 27,622
II-71
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Large Cap Core Sub-Account(12) 04/30/2007 to 12/31/2007.................... 7.446233 7.500074 274,351 01/01/2008 to 12/31/2008.................... 7.500074 4.627073 227,398 BlackRock Large Cap Sub-Account(12) (previously BlackRock Investment Trust Sub- Account (Class B)) 07/02/2001 to 12/31/2001.................... 6.828543 6.230847 76,773 01/01/2002 to 12/31/2002.................... 6.230847 4.520215 187,509 01/01/2003 to 12/31/2003.................... 4.520215 5.778902 322,231 01/01/2004 to 12/31/2004.................... 5.778902 6.289633 386,337 01/01/2005 to 12/31/2005.................... 6.289633 6.395385 418,886 01/01/2006 to 12/31/2006.................... 6.395385 7.164865 335,997 01/01/2007 to 04/27/2007.................... 7.164865 7.509116 0 BlackRock Large Cap Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.064844 1.173163 476,148 01/01/2005 to 12/31/2005.................... 1.173163 1.218756 1,280,389 01/01/2006 to 12/31/2006.................... 1.218756 1.428907 1,672,674 01/01/2007 to 12/31/2007.................... 1.428907 1.450105 1,991,701 01/01/2008 to 12/31/2008.................... 1.450105 0.925997 2,112,181 BlackRock Large Cap Value Sub-Account (Class E)(9) 05/01/2002 to 12/31/2002.................... 1.000000 0.791346 539,213 01/01/2003 to 12/31/2003.................... 0.791346 1.054567 1,364,519 01/01/2004 to 12/31/2004.................... 1.054567 1.176032 2,292,827 01/01/2005 to 12/31/2005.................... 1.176032 1.223282 2,034,555 01/01/2006 to 12/31/2006.................... 1.223282 1.435118 1,779,644 01/01/2007 to 12/31/2007.................... 1.435118 1.458424 1,891,041 01/01/2008 to 12/31/2008.................... 1.458424 0.932324 1,715,065 BlackRock Legacy Large Cap Growth Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.275739 2.490322 153,254 01/01/2005 to 12/31/2005.................... 2.490322 2.616426 397,216 01/01/2006 to 12/31/2006.................... 2.616426 2.675056 426,097 01/01/2007 to 12/31/2007.................... 2.675056 3.117578 638,572 01/01/2008 to 12/31/2008.................... 3.117578 1.942240 690,266 BlackRock Legacy Large Cap Growth Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.949416 2.691262 456,780 01/01/2002 to 12/31/2002.................... 2.691262 1.768199 1,436,860 01/01/2003 to 12/31/2003.................... 1.768199 2.347597 2,586,749 01/01/2004 to 12/31/2004.................... 2.347597 2.509078 2,976,657 01/01/2005 to 12/31/2005.................... 2.509078 2.638548 2,404,338 01/01/2006 to 12/31/2006.................... 2.638548 2.700590 1,993,676 01/01/2007 to 12/31/2007.................... 2.700590 3.150282 1,453,551 01/01/2008 to 12/31/2008.................... 3.150282 1.964562 1,270,692 BlackRock Money Market Sub-Account (Class B) 07/02/2001 to 12/31/2001.................... 2.137897 2.147717 2,305,462 01/01/2002 to 12/31/2002.................... 2.147717 2.138245 6,180,906 01/01/2003 to 12/31/2003.................... 2.138245 2.115984 6,920,157 01/01/2004 to 12/31/2004.................... 2.115984 2.097591 5,191,065 01/01/2005 to 12/31/2005.................... 2.097591 2.118816 5,282,218 01/01/2006 to 12/31/2006.................... 2.118816 2.180179 5,425,763 01/01/2007 to 12/31/2007.................... 2.180179 2.248677 8,104,376 01/01/2008 to 12/31/2008.................... 2.248677 2.270405 12,302,981
II-72
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ BlackRock Strategic Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 1.598838 1.796361 1,043,521 01/01/2005 to 12/31/2005.................... 1.796361 1.837051 2,256,655 01/01/2006 to 12/31/2006.................... 1.837051 2.105247 2,527,452 01/01/2007 to 12/31/2007.................... 2.105247 1.995172 2,339,647 01/01/2008 to 12/31/2008.................... 1.995172 1.206400 2,137,231 BlackRock Strategic Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 1.425916 1.393850 871,034 01/01/2002 to 12/31/2002.................... 1.393850 1.076984 4,781,568 01/01/2003 to 12/31/2003.................... 1.076984 1.588924 7,338,569 01/01/2004 to 12/31/2004.................... 1.588924 1.800791 8,947,533 01/01/2005 to 12/31/2005.................... 1.800791 1.842407 7,920,987 01/01/2006 to 12/31/2006.................... 1.842407 2.114995 6,411,488 01/01/2007 to 12/31/2007.................... 2.114995 2.006791 5,210,290 01/01/2008 to 12/31/2008.................... 2.006791 1.214500 4,148,413 Clarion Global Real Estate Sub-Account (previously Neuberger Berman Real Estate Sub-Account)(17) 05/01/2004 to 12/31/2004.................... 9.998685 12.816450 145,132 01/01/2005 to 12/31/2005.................... 12.816450 14.289435 541,088 01/01/2006 to 12/31/2006.................... 14.289435 19.348461 1,239,217 01/01/2007 to 12/31/2007.................... 19.348461 16.182460 850,779 01/01/2008 to 12/31/2008.................... 16.182460 9.288285 955,453 Davis Venture Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.803289 3.013083 1,062,708 01/01/2005 to 12/31/2005.................... 3.013083 3.261804 3,318,167 01/01/2006 to 12/31/2006.................... 3.261804 3.669884 4,992,316 01/01/2007 to 12/31/2007.................... 3.669884 3.768182 5,653,064 01/01/2008 to 12/31/2008.................... 3.768182 2.242698 5,413,160 Davis Venture Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.750849 2.607269 953,766 01/01/2002 to 12/31/2002.................... 2.607269 2.141196 3,273,900 01/01/2003 to 12/31/2003.................... 2.141196 2.754899 5,717,905 01/01/2004 to 12/31/2004.................... 2.754899 3.040225 7,252,181 01/01/2005 to 12/31/2005.................... 3.040225 3.295384 6,897,171 01/01/2006 to 12/31/2006.................... 3.295384 3.710426 6,463,719 01/01/2007 to 12/31/2007.................... 3.710426 3.813036 5,771,401 01/01/2008 to 12/31/2008.................... 3.813036 2.271722 5,054,789 FI Large Cap Sub-Account 05/01/2006 to 12/31/2006.................... 16.763654 16.936242 2,256 01/01/2007 to 12/31/2007.................... 16.936242 17.286384 9,763 01/01/2008 to 12/31/2008.................... 17.286384 9.364494 13,130 FI Mid Cap Opportunities Sub-Account(4) 05/01/2002 to 12/31/2002.................... 1.000000 0.809277 108,375 01/01/2003 to 12/31/2003.................... 0.809277 1.131649 706,917 01/01/2004 to 04/30/2004.................... 1.131649 1.120668 1,045,702
II-73
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ FI Mid Cap Opportunities Sub-Account(3) (previously Janus Mid Cap Sub-Account) 07/02/2001 to 12/31/2001.................... 1.862721 1.533749 284,648 01/01/2002 to 12/31/2002.................... 1.533749 1.069029 723,043 01/01/2003 to 12/31/2003.................... 1.069029 1.412678 979,246 01/01/2004 to 12/31/2004.................... 1.412678 1.624128 2,036,124 01/01/2005 to 12/31/2005.................... 1.624128 1.704926 2,051,188 01/01/2006 to 12/31/2006.................... 1.704926 1.871877 2,008,067 01/01/2007 to 12/31/2007.................... 1.871877 1.991405 1,989,430 01/01/2008 to 12/31/2008.................... 1.991405 0.873383 1,952,129 FI Value Leaders Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.251096 2.535820 67,352 01/01/2005 to 12/31/2005.................... 2.535820 2.756018 272,475 01/01/2006 to 12/31/2006.................... 2.756018 3.028663 352,558 01/01/2007 to 12/31/2007.................... 3.028663 3.097746 368,084 01/01/2008 to 12/31/2008.................... 3.097746 1.856436 311,288 FI Value Leaders Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.556973 2.319096 83,093 01/01/2002 to 12/31/2002.................... 2.319096 1.835790 279,173 01/01/2003 to 12/31/2003.................... 1.835790 2.289801 347,415 01/01/2004 to 12/31/2004.................... 2.289801 2.558969 449,648 01/01/2005 to 12/31/2005.................... 2.558969 2.783606 454,362 01/01/2006 to 12/31/2006.................... 2.783606 3.061937 528,401 01/01/2007 to 12/31/2007.................... 3.061937 3.134854 430,049 01/01/2008 to 12/31/2008.................... 3.134854 1.880800 358,925 Franklin Templeton Small Cap Growth Sub- Account 07/02/2001 to 12/31/2001.................... 0.953398 0.878544 201,706 01/01/2002 to 12/31/2002.................... 0.878544 0.622137 1,587,342 01/01/2003 to 12/31/2003.................... 0.622137 0.885371 2,760,571 01/01/2004 to 12/31/2004.................... 0.885371 0.968406 3,158,601 01/01/2005 to 12/31/2005.................... 0.968406 0.994928 3,827,136 01/01/2006 to 12/31/2006.................... 0.994928 1.074352 3,681,568 01/01/2007 to 12/31/2007.................... 1.074352 1.102825 3,297,131 01/01/2008 to 12/31/2008.................... 1.102825 0.636943 2,906,450 Harris Oakmark Focused Value Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.946613 3.193249 711,120 01/01/2005 to 12/31/2005.................... 3.193249 3.447788 1,764,541 01/01/2006 to 12/31/2006.................... 3.447788 3.806276 2,128,666 01/01/2007 to 12/31/2007.................... 3.806276 3.480530 2,041,663 01/01/2008 to 12/31/2008.................... 3.480530 1.844979 1,851,824 Harris Oakmark Focused Value Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.467618 2.582768 893,806 01/01/2002 to 12/31/2002.................... 2.582768 2.313366 3,917,017 01/01/2003 to 12/31/2003.................... 2.313366 3.015461 6,143,596 01/01/2004 to 12/31/2004.................... 3.015461 3.257444 7,256,083 01/01/2005 to 12/31/2005.................... 3.257444 3.520483 6,885,431 01/01/2006 to 12/31/2006.................... 3.520483 3.890429 5,968,778 01/01/2007 to 12/31/2007.................... 3.890429 3.561032 5,186,771 01/01/2008 to 12/31/2008.................... 3.561032 1.889525 4,392,851
II-74
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Harris Oakmark International Sub-Account (Class B)(6) 05/01/2003 to 12/31/2003.................... 0.872394 1.170223 628,467 01/01/2004 to 12/31/2004.................... 1.170223 1.387961 2,665,170 01/01/2005 to 12/31/2005.................... 1.387961 1.560464 4,478,652 01/01/2006 to 12/31/2006.................... 1.560464 1.978812 6,010,303 01/01/2007 to 12/31/2007.................... 1.978812 1.925450 7,243,154 01/01/2008 to 12/31/2008.................... 1.925450 1.120108 6,334,852 Harris Oakmark International Sub-Account (Class E)(7) 05/01/2002 to 12/31/2002.................... 1.058428 0.881613 173,778 01/01/2003 to 12/31/2003.................... 0.881613 1.172603 631,384 01/01/2004 to 12/31/2004.................... 1.172603 1.392678 985,471 01/01/2005 to 12/31/2005.................... 1.392678 1.566275 1,211,368 01/01/2006 to 12/31/2006.................... 1.566275 1.988285 1,441,994 01/01/2007 to 12/31/2007.................... 1.988285 1.936990 1,563,307 01/01/2008 to 12/31/2008.................... 1.936990 1.127931 1,168,484 Janus Forty Sub-Account 04/30/2007 to 12/31/2007.................... 138.687693 169.905578 26,816 01/01/2008 to 12/31/2008.................... 169.905578 96.980909 32,804 Jennison Growth Sub-Account (Class B) 05/01/2005 to 12/31/2005.................... 0.402856 0.483272 168,238 01/01/2006 to 12/31/2006.................... 0.483272 0.487625 556,762 01/01/2007 to 12/31/2007.................... 0.487625 0.534493 865,603 01/01/2008 to 12/31/2008.................... 0.534493 0.333751 1,086,531 Jennison Growth Subaccount (Class B)(8)(10) (previously Met/Putnam Voyager Sub-Account (Class B)) 05/01/2004 to 12/31/2004.................... 0.419194 0.437040 24,491 01/01/2005 to 04/30/2005.................... 0.437040 0.398036 0 Jennison Growth Sub-Account (Class E) 05/01/2005 to 12/31/2005.................... 0.403125 0.484295 1,724,232 01/01/2006 to 12/31/2006.................... 0.484295 0.489014 1,722,112 01/01/2007 to 12/31/2007.................... 0.489014 0.536762 1,494,296 01/01/2008 to 12/31/2008.................... 0.536762 0.335025 1,110,516 Jennison Growth Subaccount (Class E)(9)(10) (previously Met/Putnam Voyager Sub-Account (Class E)) 07/02/2001 to 12/31/2001.................... 0.573137 0.490691 475,290 01/01/2002 to 12/31/2002.................... 0.490691 0.342997 1,530,060 01/01/2003 to 12/31/2003.................... 0.342997 0.424301 2,398,264 01/01/2004 to 12/31/2004.................... 0.424301 0.437034 2,207,783 01/01/2005 to 04/30/2005.................... 0.437034 0.401990 0 Julius Baer International Stock Sub-Account (Class B) (formerly FI International Stock Sub-Account (Class B))(8)(15) 05/01/2004 to 12/31/2004.................... 1.151608 1.313784 400,031 01/01/2005 to 12/31/2005.................... 1.313784 1.520383 1,378,385 01/01/2006 to 12/31/2006.................... 1.520383 1.739128 2,615,140 01/01/2007 to 12/31/2007.................... 1.739128 1.883699 2,897,374 01/01/2008 to 12/31/2008.................... 1.883699 1.033597 2,629,622
II-75
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Julius Baer International Stock Sub-Account (Class E) (formerly FI International Stock Sub-Account (Class E))(9)(15) 07/02/2001 to 12/31/2001.................... 1.229365 1.122021 407,797 01/01/2002 to 12/31/2002.................... 1.122021 0.909605 2,317,297 01/01/2003 to 12/31/2003.................... 0.909605 1.144894 4,436,861 01/01/2004 to 12/31/2004.................... 1.144894 1.329646 4,016,807 01/01/2005 to 12/31/2005.................... 1.329646 1.541538 3,696,610 01/01/2006 to 12/31/2006.................... 1.541538 1.763823 3,279,248 01/01/2007 to 12/31/2007.................... 1.763823 1.912799 2,838,981 01/01/2008 to 12/31/2008.................... 1.912799 1.050323 2,825,418 Lazard Mid Cap Sub-Account 05/01/2002 to 12/31/2002.................... 1.138424 0.964221 123,638 01/01/2003 to 12/31/2003.................... 0.964221 1.197301 1,188,968 01/01/2004 to 12/31/2004.................... 1.197301 1.347941 1,661,340 01/01/2005 to 12/31/2005.................... 1.347941 1.433513 1,992,146 01/01/2006 to 12/31/2006.................... 1.433513 1.617859 1,797,472 01/01/2007 to 12/31/2007.................... 1.617859 1.548889 1,839,995 01/01/2008 to 12/31/2008.................... 1.548889 0.940433 1,620,582 Legg Mason Partners Aggressive Growth Sub- Account(5)(13) 07/02/2001 to 12/31/2001.................... 0.951406 0.773651 170,013 01/01/2002 to 12/31/2002.................... 0.773651 0.526708 1,057,349 01/01/2003 to 12/31/2003.................... 0.526708 0.673354 1,888,348 01/01/2004 to 12/31/2004.................... 0.673354 0.718569 2,666,632 01/01/2005 to 12/31/2005.................... 0.718569 0.803205 2,569,232 01/01/2006 to 12/31/2006.................... 0.803205 0.776748 2,452,280 01/01/2007 to 12/31/2007.................... 0.776748 0.781679 1,969,114 01/01/2008 to 12/31/2008.................... 0.781679 0.468829 1,728,104 Legg Mason Value Equity Sub-Account 05/01/2006 to 12/31/2006.................... 9.224239 9.876039 34,099 01/01/2007 to 12/31/2007.................... 9.876039 9.144376 41,035 01/01/2008 to 12/31/2008.................... 9.144376 4.083941 42,801 Lehman Brothers(R) Aggregate Bond Index Sub- Account 07/02/2001 to 12/31/2001.................... 1.091369 1.121676 576,433 01/01/2002 to 12/31/2002.................... 1.121676 1.213610 2,200,010 01/01/2003 to 12/31/2003.................... 1.213610 1.234725 5,129,426 01/01/2004 to 12/31/2004.................... 1.234725 1.261783 5,784,518 01/01/2005 to 12/31/2005.................... 1.261783 1.264818 6,912,122 01/01/2006 to 12/31/2006.................... 1.264818 1.292260 6,991,520 01/01/2007 to 12/31/2007.................... 1.292260 1.356344 6,502,466 01/01/2008 to 12/31/2008.................... 1.356344 1.409916 4,672,154 Loomis Sayles Small Cap Sub-Account (Class B)(8) 05/01/2004 to 12/31/2004.................... 2.295429 2.597547 183,662 01/01/2005 to 12/31/2005.................... 2.597547 2.727115 505,031 01/01/2006 to 12/31/2006.................... 2.727115 3.123967 957,556 01/01/2007 to 12/31/2007.................... 3.123967 3.431486 2,028,104 01/01/2008 to 12/31/2008.................... 3.431486 2.159249 1,740,851
II-76
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ Loomis Sayles Small Cap Sub-Account (Class E)(9) 07/02/2001 to 12/31/2001.................... 2.340698 2.212721 302,661 01/01/2002 to 12/31/2002.................... 2.212721 1.706287 815,619 01/01/2003 to 12/31/2003.................... 1.706287 2.288457 1,349,652 01/01/2004 to 12/31/2004.................... 2.288457 2.617001 1,804,117 01/01/2005 to 12/31/2005.................... 2.617001 2.749980 1,741,936 01/01/2006 to 12/31/2006.................... 2.749980 3.153181 1,606,420 01/01/2007 to 12/31/2007.................... 3.153181 3.466862 1,599,847 01/01/2008 to 12/31/2008.................... 3.466862 2.183704 1,440,440 Lord Abbett Bond Debenture Sub-Account 07/02/2001 to 12/31/2001.................... 1.349148 1.355376 163,651 01/01/2002 to 12/31/2002.................... 1.355376 1.326209 1,072,346 01/01/2003 to 12/31/2003.................... 1.326209 1.555220 3,140,944 01/01/2004 to 12/31/2004.................... 1.555220 1.655460 4,755,082 01/01/2005 to 12/31/2005.................... 1.655460 1.653585 5,998,505 01/01/2006 to 12/31/2006.................... 1.653585 1.776280 6,366,804 01/01/2007 to 12/31/2007.................... 1.776280 1.862426 6,614,707 01/01/2008 to 12/31/2008.................... 1.862426 1.491822 5,097,221 Met/AIM Small Cap Growth Sub-Account 05/01/2002 to 12/31/2002.................... 1.120932 0.845217 218,214 01/01/2003 to 12/31/2003.................... 0.845217 1.155091 812,272 01/01/2004 to 12/31/2004.................... 1.155091 1.209826 1,198,175 01/01/2005 to 12/31/2005.................... 1.209826 1.289097 1,244,197 01/01/2006 to 12/31/2006.................... 1.289097 1.448622 1,132,529 01/01/2007 to 12/31/2007.................... 1.448622 1.583328 995,467 01/01/2008 to 12/31/2008.................... 1.583328 0.954672 809,830 Met/Franklin Income Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998247 7.975389 50,460 Met/Franklin Mutual Shares Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998247 6.591039 3,983 Met/Franklin Templeton Founding Strategy Sub- Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998247 7.023946 32,441 Met/Templeton Growth Sub-Account (Class C) 04/28/2008 to 12/31/2008.................... 9.998247 6.560224 1,439 MetLife Aggressive Sub-Account 05/01/2005 to 12/31/2005.................... 9.998685 11.135628 77,705 01/01/2006 to 12/31/2006.................... 11.135628 12.675464 117,272 01/01/2007 to 12/31/2007.................... 12.675464 12.880927 244,730 01/01/2008 to 12/31/2008.................... 12.880927 7.548534 299,115 MetLife Conservative Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998685 10.285922 19,228 01/01/2006 to 12/31/2006.................... 10.285922 10.820674 157,160 01/01/2007 to 12/31/2007.................... 10.820674 11.241226 459,001 01/01/2008 to 12/31/2008.................... 11.241226 9.470694 852,577 MetLife Conservative to Moderate Allocation Sub-Account 05/01/2005 to 12/31/2005.................... 9.998685 10.503558 239,186 01/01/2006 to 12/31/2006.................... 10.503558 11.311294 1,100,116 01/01/2007 to 12/31/2007.................... 11.311294 11.666322 1,548,316 01/01/2008 to 12/31/2008.................... 11.666322 9.001247 1,344,836
II-77
1.60% VARIABLE ACCOUNT CHARGE ------------------------------------------------ ACCUMULATION ACCUMULATION NUMBER OF UNIT VALUE UNIT VALUE ACCUMULATION UNITS AT BEGINNING AT END OUTSTANDING AT END OF PERIOD OF PERIOD OF PERIOD ------------ ------------ ------------------ MetLife Mid Cap Stock Index Sub-Account 07/02/2001 to 12/31/2001.................... 1.048883 1.026763 368,177 01/01/2002 to 12/31/2002.................... 1.026763 0.857786 1,293,872 01/01/2003 to 12/31/2003.................... 0.857786 1.135837 2,419,733 01/01/2004 to 12/31/2004.................... 1.135837 1.293477 3,074,816 01/01/2005 to 12/31/2005.................... 1.293477 1.426031 3,625,618 01/01/2006 to 12/31/2006.................... 1.426031 1.541357 3,779,819 01/01/2007 to 12/31/2007.................... 1.541357 1.630771 3,351,786 01/01/2008