REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
þ
Pre-Effective
Amendment No.
o
Post-Effective
Amendment No. 19
þ
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
þ
Amendment
No. 159
þ
(Check appropriate box or boxes)
SEPARATE ACCOUNT A
(Exact Name of Registrant)
PACIFIC LIFE & ANNUITY COMPANY
(Name of Depositor)
700 Newport Center Drive Newport Beach, California92660
(Address of Depositor’s Principal Executive Offices) (Zip Code)
(949) 219-3943
(Depositor’s Telephone Number, including Area Code)
Brandon J. Cage
Assistant Vice President
Pacific Life & Annuity Company
700 Newport Center Drive Newport Beach, California92660
(Name and address of agent for service)
Approximate Date of Proposed
Public Offering:
It is proposed that this filing will become effective (check appropriate box)
o
immediately upon filing pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a) (1) of Rule 485
o
on ___________ pursuant to paragraph (a)(1) of Rule 485
If appropriate, check the following box:
o
this post-effective amendment designates a new effective date
for a previously filed post-effective amendment.
Title of Securities Being Registered: Interests in the Separate Account Under
Pacific Value individual flexible premium deferred variable annuity contract.
Supplement
dated December 26, 2010 to the Prospectus dated May 1,2010 for the
Pacific Value variable annuity contract issued by Pacific Life
& Annuity Company
Capitalized terms used in this supplement are defined in the
Prospectus referred to above unless otherwise defined herein.
“We,”“us,” or “our” refer to
Pacific Life & Annuity Company; “you” or
“your” refer to the Contract Owner.
This supplement must be preceded or accompanied by the
Prospectus dated May 1, 2010, as supplemented.
The purpose of this supplement is to inform you of two new
optional living benefit riders that will be available starting
February 14, 2011, subject to state availability.
The
AN
OVERVIEW OF PACIFIC VALUE section is amended as
follows:
The
Optional Riders – Optional Living Benefit Riders
subsection is amended to include the following:
CoreIncome
Advantage 5 Plus (Single)
This optional Rider lets you, before the Annuity Date, withdraw
up to 5% of your Protected Payment Base per year (once age
591/2
is reached), lock in market gains, and provides the potential to
withdraw up to the Protected Payment Amount for life, if certain
conditions are met. If your total withdrawals in a Contract Year
exceed the annual withdrawal amount allowed under the Rider,
then the Protected Payment Base may decrease and the amount you
may withdraw in the future under the Rider may be reduced.
Beginning with the
1st anniversary
of the Rider Effective Date or most recent Reset Date, whichever
is later, the Rider provides for Automatic Resets or
Owner-Elected Resets of the Protected Payment Base to an amount
equal to 100% of the Contract Value. Any reset may include a
change in the annual charge percentage (up to a maximum of
1.50%) associated with the Rider. Protected Payment Base,
Protected Payment Amount, Automatic Reset, Owner-Elected Reset
and Reset Date are described in the OTHER OPTIONAL
RIDERS – CoreIncome Advantage 5 Plus (Single)
section in this supplement.
This Rider is called the Guaranteed Withdrawal Benefit V
Rider – Single Life in the Rider attached to your
Contract.
CoreIncome
Advantage 5 Plus (Joint)
This optional Rider lets you, before the Annuity Date, withdraw
up to 5% of your Protected Payment Base per year (once age
591/2
is reached), lock in market gains, and provides the potential to
withdraw up to the Protected Payment Amount, until the Rider
terminates, if certain conditions are met. If your total
withdrawals in a Contract Year exceed the annual withdrawal
amount allowed under the Rider, then the Protected Payment Base
may decrease and the amount you may withdraw in the future under
the Rider may be reduced.
Beginning with the
1st
anniversary of the Rider Effective Date or most recent Reset
Date, whichever is later, the Rider provides for Automatic
Resets or Owner-Elected Resets of the Protected Payment Base to
an amount equal to 100% of the Contract Value. Any reset may
include an increase in the annual charge percentage (up to a
maximum of 1.75%) associated with the Rider. Protected Payment
Base, Protected Payment Amount, Automatic Reset, Owner-Elected
Reset and Reset Date are described in OTHER OPTIONAL
RIDERS – CoreIncome Advantage 5 Plus (Joint)
section in this supplement.
Changes to the Contract Owner, Annuitant
and/or
Beneficiary designations and changes in marital status may
adversely affect the benefits of this Rider (see CoreIncome
Advantage 5 Plus (Joint) – Ownership and
Beneficiary Changes).
This Rider is called the Guaranteed Withdrawal Benefit V
Rider – Joint Life in the Rider attached to your
Contract.
The Periodic Expenses section is amended to include the
following:
Current Charge
Maximum Charge
Percentage
Percentage
• CoreIncome Advantage 5 Plus
(Single) Charge*
0.60
%
1.50
%
• CoreIncome Advantage 5 Plus
(Joint) Charge**
0.80
%
1.75
%
* If you buy CoreIncome Advantage 5 Plus (Single), the annual
charge is deducted from your Contract Value on a quarterly
basis. The quarterly charge is the current charge percentage
(divided by 4) multiplied by the Protected Payment Base. The
initial Protected Payment Base is equal to the initial Purchase
Payment if purchased at Contract issue or is equal to the
Contract Value if the Rider is purchased on a Contract
Anniversary. For a complete explanation of the Protected Payment
Base, see the OTHER OPTIONAL RIDERS – CoreIncome
Advantage 5 Plus (Single) section in this supplement. The
quarterly amount deducted may increase or decrease due to
changes in your Protected Payment Base. Your Protected Payment
Base may increase due to additional Purchase Payments, decrease
due to withdrawals or also change due to Resets. We deduct the
charge proportionately from your Investment Options (excluding
the DCA Plus Fixed Option) every quarter following the Rider
Effective Date, during the term of
the Rider and while the Rider is in effect, and when the Rider
is terminated. We will waive the annual charge if the Rider
terminates as a result of the death of an Owner or sole
surviving Annuitant, upon full annuitization of your Contract,
or if your Contract Value is zero. The annual charge is only
waived for the quarter that we are notified of death or
annuitization. See the CHARGES, FEES, AND
DEDUCTIONS – Optional Rider Charges section in
this supplement for further information.
** If you buy CoreIncome Advantage 5 Plus (Joint), the annual
charge is deducted from your Contract Value on a quarterly
basis. The quarterly charge is the current charge percentage
(divided by 4) multiplied by the Protected Payment Base. The
initial Protected Payment Base is equal to the initial Purchase
Payment if purchased at Contract issue or is equal to the
Contract Value if the Rider is purchased on a Contract
Anniversary. For a complete explanation of the Protected Payment
Base, see the OTHER OPTIONAL RIDERS – CoreIncome
Advantage 5 Plus (Joint), section in this supplement. The
quarterly amount deducted may increase or decrease due to
changes in your Protected Payment Base. Your Protected Payment
Base may increase due to additional Purchase Payments, decrease
due to withdrawals or also change due to Resets. We deduct the
charge proportionately from your Investment Options (excluding
the DCA Plus Fixed Option) every quarter following the Rider
Effective Date, during the term of the Rider and while the Rider
is in effect, and when the Rider is terminated. We will waive
the annual charge if the Rider terminates as a result of the
death of the surviving Designated Life, upon full annuitization
of your Contract, or if your Contract Value is zero. The annual
charge is only waived for the quarter that we are notified of
death or annuitization. See the CHARGES, FEES, AND
DEDUCTIONS – Optional Rider Charges section in
this supplement for further information.
Footnote number 6 is replaced with the following:
Only one withdrawal benefit rider (CoreIncome Advantage 5 Plus
(Single), CoreIncome Advantage 5 Plus (Joint), CoreIncome
Advantage 5, CoreProtect Advantage, CoreIncome Advantage,
Flexible Lifetime Income Plus (Single), Flexible Lifetime Income
Plus (Joint), Foundation 10, Automatic Income Builder, Flexible
Lifetime Income (Single), Flexible Lifetime Income (Joint),
Lifetime Income Access Plus, or Income Access) may be owned or
in effect at the same time. Only one accumulation benefit rider
(GPA 3, GPA 5, or GPA) may be owned or in effect at the same
time.
The
CHARGES,
FEES AND DEDUCTIONS section is amended as
follows:
The Optional Rider Charges subsection is amended to
include the following:
CoreIncome
Advantage 5 Plus (Single) or (Joint) Charge
If you purchase a Rider, we will deduct an annual charge of
0.60% for the Single version or 0.80% for the Joint version from
your Investment Options on a quarterly basis. The quarterly
deduction is equal to 0.15% for the Single version or 0.20% for
the Joint version multiplied by the Protected Payment Base and
is deducted from your Contract Value every three months
following the Rider Effective Date (“Quarterly Rider
Anniversary”). The charge is deducted on a proportionate
basis from your Investment Options (excluding the DCA Plus Fixed
Option) every Quarterly Rider Anniversary that the Rider remains
in effect and when the Rider is terminated.
If the Rider terminates on a Quarterly Rider Anniversary, the
entire charge for the prior quarter will be deducted from the
Contract Value on that anniversary. If the Rider terminates
prior to a Quarterly Rider Anniversary, we will prorate the
charge based on the Protected Payment Base as of the day the
Rider terminates. Such prorated amount will be deducted from the
Contract Value on the earlier of the day the Contract terminates
or on the Quarterly Rider Anniversary immediately following the
day the Rider terminates.
Under the Single version, we will waive the charge if the Rider
terminates as a result of the death of an Owner or sole
surviving Annuitant, upon full annuitization of the Contract or
when the Contract Value is zero. The charge is only waived for
the quarter that we are notified of death or annuitization, even
if death occurs in a prior quarter. Under the Joint version, we
will waive the charge if the Rider terminates as a result of the
death of the surviving Designated Life, upon full annuitization
of the Contract or when the Contract Value is zero. The charge
is only waived for the quarter that we are notified of death or
annuitization, even if death occurs in a prior quarter
Change in Annual Charge – The annual
charge percentage may change as a result of a Reset. The annual
charge percentage will not exceed the maximum annual charge
percentage of 1.50% (0.375% quarterly) for the Single version or
1.75% (0.4375% quarterly) for the Joint version. You may elect
to opt-out of an Automatic Reset and your annual charge
percentage will remain the same as it was before the Automatic
Reset. If an Automatic Reset never occurs, the annual charge
percentage established on the Rider Effective Date is guaranteed
not to change.
The
OTHER
OPTIONAL RIDERS section is amended as
follows:
The Multiple Rider Ownership subsection is replaced with
the following:
Only one withdrawal benefit rider (CoreIncome Advantage 5 Plus
(Single), CoreIncome Advantage 5 Plus (Joint), CoreIncome
Advantage 5, CoreProtect Advantage, CoreIncome Advantage,
Flexible Lifetime Income Plus (Single), Flexible Lifetime Income
Plus (Joint), Foundation 10, Automatic Income Builder, Flexible
Lifetime Income (Single), Flexible Lifetime Income (Joint),
Lifetime Income Access Plus, or Income Access) may be owned or
in effect at the same time. Only one accumulation benefit rider
(GPA 3, GPA 5, or GPA) may be owned or in effect at the same
time.
All references to Rider exchanges concerning the Riders
listed in the table below are replaced with the
following:
Withdrawal
Benefit Rider Exchanges
Subject to availability, you may elect to exchange among the
following withdrawal benefit Riders:
FROM
TO
WHEN
Income Access
CoreIncome Advantage
CoreProtect Advantage
CoreIncome Advantage 5 Plus (Single) or (Joint)
On any Contract Anniversary.
CoreIncome Advantage 5 Plus (Single) or (Joint)
Income Access
On any Contract Anniversary.
CoreIncome Advantage
CoreProtect Advantage
On any Contract Anniversary beginning with the
5th Contract
Anniversary measured from the Contract issue date.
CoreIncome Advantage 5
Income Access
On any Contract Anniversary.
CoreIncome Advantage
CoreProtect Advantage
CoreIncome Advantage 5 Plus (Single) or (Joint)
On any Contract Anniversary beginning with the
5th Contract
Anniversary measured from the Contract issue date.
CoreProtect Advantage
Income Access
On any Contract Anniversary.
CoreIncome Advantage
CoreIncome Advantage 5 Plus (Single) or (Joint)
On any Contract Anniversary beginning with the
5th Contract
Anniversary measured from the Contract issue date.
CoreIncome Advantage
Income Access
On any Contract Anniversary.
CoreProtect Advantage
CoreIncome Advantage 5 Plus (Single) or (Joint)
On any Contract Anniversary beginning with the
5th Contract
Anniversary measured from the Contract issue date.
Lifetime Income Access Plus
Income Access
CoreIncome Advantage
CoreProtect Advantage
CoreIncome Advantage 5 Plus (Single) or (Joint)
On any Contract Anniversary.
Flexible Lifetime Income (Single) or (Joint)
Income Access
On any Contract Anniversary.
CoreIncome Advantage
CoreProtect Advantage
CoreIncome Advantage 5 Plus (Single) or (Joint)
On any Contract Anniversary beginning with the
5th Contract
Anniversary measured from the Contract issue date.
Foundation 10
Income Access
On any Contract Anniversary.
CoreIncome Advantage
CoreProtect Advantage
CoreIncome Advantage 5 Plus (Single) or (Joint)
On any Contract Anniversary beginning with the
5th Contract
Anniversary measured from the Contract issue date.
Flexible Lifetime Income Plus (Single) or (Joint)
Income Access
On any Contract Anniversary.
CoreIncome Advantage
CoreProtect Advantage
CoreIncome Advantage 5 Plus (Single) or (Joint)
On any Contract Anniversary beginning with the
5th Contract
Anniversary measured from the Contract issue date.
Automatic Income Builder
Income Access
On any Contract Anniversary.
CoreIncome Advantage
CoreProtect Advantage
CoreIncome Advantage 5 Plus (Single) or (Joint)
On any Contract Anniversary beginning with the
5th Contract
Anniversary measured from the Contract issue date.
When you elect an exchange, you are terminating your existing
Rider and purchasing a new Rider. The Initial Protected Payment
Base and Remaining Protected Balance under the new Rider will be
equal to the Contract Value on that Contract Anniversary.
Generally, if your Contract Value is lower than the Protected
Payment Base under your existing Rider, your election to
exchange from one rider to another may result in a reduction in
the Protected Payment Base, Remaining Protected Balance,
Protected Payment Amount and any Annual Credit that may be
applied. In other words, your existing protected balances will
not carryover to the new Rider. If you elect an exchange, you
will be subject to the charge for the new Rider in effect at the
time of the exchange. Only one exchange may be elected each
Contract Year. In addition, there are withdrawal percentages,
annual credit percentages, and lifetime income age requirements
that differ between the Riders listed above. Work with your
financial professional prior to electing an exchange.
The following withdrawal benefit riders are added:
CoreIncome
Advantage 5 Plus (Single)
Purchasing
the Rider
You may purchase this optional Rider on the Contract Date or on
any Contract Anniversary if the age of each Annuitant is
85 years or younger on the date of purchase, the Contract
is not issued as an Inherited IRA, Inherited Roth IRA or
Inherited TSA, and you allocate your entire Contract Value
according to the Investment Allocation Requirements
outlined in the Prospectus.
Rider
Terms
Annual RMD Amount – The amount required to
be distributed each Calendar Year for purposes of satisfying the
minimum distribution requirements of Code Section 401(a)(9)
(“Section 401(a)(9)”) and related Code provisions
in effect as of the Rider Effective Date.
Early Withdrawal – Any withdrawal that
occurs before the oldest Owner (or youngest Annuitant, in the
case of a Non-Natural Owner) is
591/2 years
of age.
Excess Withdrawal – Any withdrawal (except
an RMD withdrawal) that occurs after the oldest Owner (or
youngest Annuitant, in the case of a Non-Natural Owner) is
age 591/2
or older and exceeds the Protected Payment Amount.
Protected Payment Amount – The maximum
amount that can be withdrawn under this Rider without reducing
the Protected Payment Base. If the oldest Owner (or youngest
Annuitant, in the case of a Non-Natural Owner) is
591/2 years
of age or older, the Protected Payment Amount is equal to 5% of
the Protected Payment Base, less cumulative withdrawals during
that Contract Year and will be reset to 5% of the Protected
Payment Base each Contract Anniversary. If the oldest Owner (or
youngest Annuitant, in the case of a Non-Natural Owner) is
younger than
591/2 years
of age, the Protected Payment Amount is equal to zero (0);
however, once the oldest Owner (or youngest Annuitant, in the
case of a Non-Natural Owner) reaches
age 591/2,
the Protected Payment Amount will equal 5% of the Protected
Payment Base and will be reset each Contract Anniversary. The
initial Protected Payment Amount will depend upon the age of the
oldest Owner (or youngest Annuitant, in the case of a
Non-Natural Owner).
Protected Payment Base – An amount used to
determine the Protected Payment Amount. The Protected Payment
Base will remain unchanged except as otherwise described under
the provisions of this Rider. The initial Protected Payment Base
is equal to the initial Purchase Payment, if the Rider Effective
Date is on the Contract Date, or the Contract Value, if the
Rider Effective Date is on a Contract Anniversary.
Reset Date – Any Contract Anniversary after the
Rider Effective Date on which an Automatic Reset or an
Owner-Elected Reset occurs.
Rider Effective Date – The date the guarantees
and charges for the Rider become effective. If the Rider is
purchased within 60 days of the Contract Date, the Rider
Effective Date is the Contract Date. If the Rider is purchased
within 60 days of a Contract Anniversary, the Rider
Effective Date is the date of that Contract Anniversary.
How the
Rider Works
On any day, this Rider guarantees you can withdraw up to the
Protected Payment Amount, regardless of market performance,
until the Rider terminates. Beginning with the
1st anniversary
of the Rider Effective Date or most recent Reset Date, whichever
is later, the Rider provides for Automatic Annual Resets or
Owner-Elected Resets of the Protected Payment Base to an amount
equal to 100% of the Contract Value. Once the Rider is
purchased, you cannot request a termination of the Rider (see
the Termination subsection of this Rider for more
information).
If the oldest Owner (or youngest Annuitant, in the case of a
Non-Natural Owner) is
591/2 years
of age or older, the Protected Payment Amount is 5% of the
Protected Payment Base. If the oldest Owner (or youngest
Annuitant, in the case of a Non-Natural Owner) is younger than
591/2 years
of age, the Protected Payment Amount is zero (0).
The Protected Payment Base may change over time. An Automatic
Reset or Owner-Elected Reset will increase or decrease the
Protected Payment Base depending on the Contract Value on the
Reset Date. A withdrawal that is less than or equal to the
Protected Payment Amount will not change the Protected Payment
Base. If a withdrawal is greater than the Protected Payment
Amount and the Contract Value is less than the Protected Payment
Base, the Protected Payment Base will be reduced by an amount
that is greater than the excess amount withdrawn. For
withdrawals that are greater than the Protected Payment Amount,
see the Withdrawal of Protected Payment Amount subsection.
For purposes of this Rider, the term “withdrawal”
includes any applicable withdrawal charges. Amounts withdrawn
under this Rider will reduce the Contract Value by the amount
withdrawn and will be subject to the same conditions,
limitations, restrictions and all other fees, charges and
deductions, if applicable, as withdrawals otherwise made under
the provisions of the Contract. Withdrawals under this Rider are
not annuity payouts. Annuity payouts generally receive a more
favorable tax treatment than other withdrawals.
If your Contract is a Qualified Contract, including an IRA or
TSA/403(b) Contract, you are subject to restrictions on
withdrawals you may take prior to a triggering event (e.g.
reaching
age 591/2,
separation from service, disability) and you should consult your
tax or legal advisor prior to purchasing this optional
guarantee, the primary benefit of which is guaranteeing
withdrawals. For additional information regarding withdrawals
and triggering events, see the FEDERAL TAX ISSUES –
IRAs and Qualified Plans section in the Prospectus.
Withdrawal
of Protected Payment Amount
When the oldest Owner (youngest Annuitant, in the case of a
Non-Natural Owner) is
591/2 years
of age or older, you may withdraw up to the Protected Payment
Amount each Contract Year, regardless of market performance,
until the Rider terminates. The Protected Payment Amount will be
reduced by the amount withdrawn during the Contract Year and
will be reset each Contract Anniversary to 5% of the Protected
Payment Base. Any portion of the Protected Payment Amount not
withdrawn during a Contract Year may not be carried over to the
next Contract Year. If a withdrawal does not exceed the
Protected Payment Amount immediately prior to that withdrawal,
the Protected Payment Base will remain unchanged.
Withdrawals Exceeding the Protected Payment Amount. If a
withdrawal (except an RMD withdrawal) exceeds the Protected
Payment Amount immediately prior to that withdrawal, we will
(immediately following the withdrawal) reduce the Protected
Payment Base on a proportionate basis for the amount in excess
of the Protected Payment Amount. (See Sample Calculations
- Example #4 for a numerical example of the
adjustments to the Protected Payment Base as a result of an
Excess Withdrawal.) If a withdrawal is greater than the
Protected Payment Amount and the Contract Value is less than the
Protected Payment Base, the Protected Payment Base will be
reduced by an amount that is greater than the excess amount
withdrawn.
The amount available for withdrawal under the Contract must be
sufficient to support any withdrawal that would otherwise exceed
the Protected Payment Amount.
For information regarding taxation of withdrawals, see the
FEDERAL TAX ISSUES section in the Prospectus.
Early
Withdrawal
If an Early Withdrawal occurs, we will (immediately following
the Early Withdrawal) reduce the Protected Payment Base either
on a proportionate basis or by the total withdrawal amount,
whichever results in a lower Protected Payment Base. See
Sample Calculations – Example #8 for
numerical examples of the adjustments to the Protected Payment
Base as a result of an Early Withdrawal.
Required
Minimum Distributions
No adjustment will be made to the Protected Payment Base as a
result of a withdrawal that exceeds the Protected Payment Amount
immediately prior to the withdrawal, provided:
•
such withdrawal (an “RMD Withdrawal”) is for purposes
of satisfying the minimum distribution requirements of
Section 401(a)(9) and related Code provisions in effect at
that time,
•
you have authorized us to calculate and make periodic
distribution of the Annual RMD Amount for the Calendar Year
required based on the payment frequency you have chosen,
•
the Annual RMD Amount is based on this Contract only, and
•
only RMD withdrawals are made from the Contract during the
Contract Year.
See Sample Calculations – Example #5 for
numerical examples that describe what occurs when only
withdrawals of the Annual RMD Amount are made during a Contract
Year and when withdrawals of the Annual RMD Amount plus other
non-RMD Withdrawals are made during a Contract Year.
See the FEDERAL TAX ISSUES – Qualified
Contracts – Required Minimum Distributions
section in the Prospectus.
Depletion
of Contract Value
If the oldest Owner (or youngest Annuitant, in the case of a
Non-Natural Owner) is younger than
age 591/2
when the Contract Value is zero, the Rider will terminate.
If the oldest Owner (or youngest Annuitant, in the case of a
Non-Natural Owner) is
age 591/2
or older and the Contract Value was reduced to zero by a
withdrawal that exceeds the Protected Payment Amount, the Rider
will terminate.
If the oldest Owner (or youngest Annuitant, in the case of a
Non-Natural Owner) is
age 591/2
or older and the Contract Value was reduced to zero by a
withdrawal (including an RMD withdrawal) that did not exceed the
Protected Payment Amount, the following will apply:
•
the Protected Payment Amount will be paid each year until the
date of death of an Owner or the date of death of the sole
surviving Annuitant (first Annuitant in the case of a
Non-Natural Owner),
•
the Protected Payment Amount will be paid under a series of
pre-authorized withdrawals under a payment frequency as elected
by the Owner, but no less frequently than annually,
•
no additional Purchase Payments will be accepted under the
Contract, and
•
the Contract will cease to provide any death benefit.
Reset of
Protected Payment Base
On and after each Reset Date, the provisions of this Rider shall
apply in the same manner as they applied when the Rider was
originally issued. The limitations and restrictions on Purchase
Payments and withdrawals, the deduction of Rider charges and any
future reset options available on and after the Reset Date, will
again apply and will be measured from that Reset Date. A reset
occurs when the Protected Payment Base is changed to an amount
equal to the Contract Value as of the Reset Date.
Automatic Reset. On each Contract Anniversary while this
Rider is in effect and before the Annuity Date, we will
automatically reset the Protected Payment Base to an amount
equal to 100% of the Contract Value, if the Protected Payment
Base is less than the Contract Value on that Contract
Anniversary. The annual charge percentage may change as a result
of any Automatic Reset (see the CHARGES, FEES AND
DEDUCTIONS – Optional Rider Charges section in
this supplement).
Automatic Reset – Opt-Out Election. Within
60 days after a Contract Anniversary on which an Automatic
Reset is effective, you have the option to reinstate the
Protected Payment Base, Protected Payment Amount and annual
charge percentage to their respective amounts immediately before
the Automatic Reset. Any future Automatic Resets will continue
in accordance with the Automatic Reset paragraph above.
If you elect this option, your opt-out election must be
received, in a form satisfactory to us, at our Service Center
within the same 60 day period after the Contract
Anniversary on which the reset is effective.
Automatic Reset – Future Participation. You may
elect not to participate in future Automatic Resets at any time.
Your election must be received, in a form satisfactory to us, at
our Service Center, while this Rider is in effect and before the
Annuity Date. Such election will be effective for future
Contract Anniversaries.
If you previously elected not to participate in Automatic
Resets, you may re-elect to participate in future Automatic
Resets at any time. Your election to resume participation must
be received, in a form satisfactory to us, at our Service Center
while this Rider is in effect and before the Annuity Date. Such
election will be effective for future Contract Anniversaries as
described in the Automatic Reset paragraph above.
Owner-Elected Resets (Non-Automatic). You may, on any
Contract Anniversary, elect to reset the Protected Payment Base
to an amount equal to 100% of the Contract Value. An
Owner-Elected Reset may be elected while Automatic Resets are in
effect. The annual charge percentage may change as a result of
this Reset.
If you elect this option, your election must be received, in a
form satisfactory to us, at our Service Center within
60 days after the Contract Anniversary on which the reset
is effective. The reset will be based on the Contract Value as
of that Contract Anniversary. Your election of this option
may result in a reduction in the Protected Payment Base and
Protected Payment Amount. Generally, the reduction will
occur when your Contract Value is less than the Protected
Payment Base as of the Contract Anniversary you elected the
reset. You are strongly advised to work with your financial
professional prior to electing an Owner-Elected Reset. We
will provide you with written confirmation of your election.
Subsequent
Purchase Payments
If we receive additional Purchase Payments after the Rider
Effective Date, we will increase the Protected Payment Base by
the amount of the Purchase Payments. However, for purposes of
this Rider, we reserve the right to restrict additional Purchase
Payments that result in a total of all Purchase Payments
received on or after the later of the
1st Contract
Anniversary or most recent Reset Date to exceed $100,000 without
our prior approval.
Annuitization
If you annuitize the Contract at the maximum Annuity Date
specified in your Contract and this Rider is still in effect at
the time of your election and a Life Only fixed annuity option
is chosen, the annuity payments will be equal to the greater of:
•
the Life Only fixed annual payment amount based on the terms of
your Contract, or
•
the Protected Payment Amount in effect at the maximum Annuity
Date.
If you annuitize the Contract at any time prior to the maximum
Annuity Date specified in your Contract, your annuity payments
will be determined in accordance with the terms of your
Contract. The Protected Payment Base and Protected Payment
Amount under this Rider will not be used in determining any
annuity payments. Work with your financial professional to
determine if you should annuitize your Contract before the
maximum Annuity Date or stay in the accumulation phase and
continue to take withdrawals under the Rider.
Continuation
of Rider if Surviving Spouse Continues Contract
This Rider terminates upon the death of an Owner or sole
surviving Annuitant. If the surviving spouse continues the
Contract, the surviving spouse may re-purchase this Rider (if
available) on any Contract Anniversary. The existing protected
balances will not carry over to the new Rider.
The surviving spouse may elect to receive any death benefit
proceeds instead of continuing the Contract (see DEATH
BENEFITS AND OPTIONAL DEATH BENEFIT RIDERS – Death
Benefits).
Termination
You cannot request a termination of the Rider. Except as
otherwise provided below, the Rider will automatically terminate
on the earliest of:
•
the day any portion of the Contract Value is no longer allocated
according to the Investment Allocation Requirements,
•
the date of the death of an Owner or the date of death of the
sole surviving Annuitant,
•
for Contracts with a Non-Natural Owner, the date of death of any
Annuitant, including Primary, Joint and Contingent Annuitants,
•
the day the Contract is terminated in accordance with the
provisions of the Contract,
•
the day we are notified of a change in ownership of the Contract
to a non-spouse Owner if the Contract is Non-Qualified
(excluding changes in ownership to or from certain trusts),
•
the day you exchange this Rider for another withdrawal benefit
Rider,
•
the Annuity Date (see the Annuitization subsection for
additional information),
•
the day the Contract Value is reduced to zero as a result of a
withdrawal (except an RMD withdrawal) that exceeds the Protected
Payment Amount, or
•
the day the Contract Value is reduced to zero if the oldest
Owner (or youngest Annuitant, in the case of a Non-Natural
Owner) is younger than
age 591/2.
The Rider and the Contract will not terminate the day the
Contract Value is zero and you begin taking pre-authorized
withdrawals of the Protected Payment Amount (see the
Depletion of Contract Value subsection). In this case,
the Rider and the Contract will terminate the date of death of
an Owner or the date of death of the sole surviving Annuitant.
CoreIncome
Advantage 5 Plus (Joint)
Purchasing
the Rider
You may purchase this optional Rider on the Contract Date or on
any Contract Anniversary if you meet the following eligibility
requirements:
•
the Contract is issued as:
•
Non-Qualified Contract (this Rider is not available if the Owner
is a trust or other entity), or
•
Qualified Contract under Code Section 408(a), 408(k), 408A,
408(p) or 403(b), except for Inherited IRAs, Inherited Roth IRAs
and Inherited TSAs,
•
both Designated Lives are 85 years or younger on the date
of purchase,
•
you allocate your entire Contract Value according to the
Investment Allocation Requirements outlined in the
Prospectus,
•
the Contract must be structured so that upon the death of one
Designated Life, the surviving Designated Life may retain or
assume ownership of the Contract, and
•
any Annuitant must be a Designated Life.
For purposes of meeting the eligibility requirements, Designated
Lives must be any one of the following:
•
a sole Owner with the Owner’s Spouse designated as the sole
primary Beneficiary,
•
Joint Owners, where the Owners are each other’s Spouses, or
•
if the Contract is issued as a custodial owned IRA or TSA, the
beneficial owner must be the Annuitant and the Annuitant’s
Spouse must be designated as the sole primary Beneficiary under
the Contract. The custodian, under a custodial owned IRA or TSA,
for the benefit of the beneficial owner, may be designated as
sole primary Beneficiary provided that the Spouse of the
beneficial owner is the sole primary Beneficiary of the
custodial account.
If this Rider is added on a Contract Anniversary, naming your
Spouse as the Beneficiary to meet eligibility requirements will
not be considered a change of Annuitant on the Contract.
Rider
Terms
Annual RMD Amount – The amount required to
be distributed each Calendar Year for purposes of satisfying the
minimum distribution requirements of Code Section 401(a)(9)
(“Section 401(a)(9)”) and related Code provisions
in effect as of the Rider Effective Date.
Designated Lives (each a “Designated
Life”) – Designated Lives must be natural
persons who are each other’s spouses on the Rider Effective
Date. Designated Lives will remain unchanged while this Rider is
in effect.
To be eligible for lifetime benefits, the Designated Life must:
•
be the Owner (or Annuitant, in the case of a custodial owned IRA
or TSA),
•
remain the Spouse of the other Designated Life and be the first
in line of succession, as determined under the Contract, for
payment of any death benefit.
Early Withdrawal – Any withdrawal that
occurs before the youngest Designated Life is
591/2 years
of age.
Excess Withdrawal – Any withdrawal (except
an RMD withdrawal) that occurs after the youngest Designated
Life is
age 591/2
or older and exceeds the Protected Payment Amount.
Protected Payment Amount – The maximum
amount that can be withdrawn under this Rider without reducing
the Protected Payment Base. If the youngest Designated Life is
591/2 years
of age or older, the Protected Payment Amount is equal to 5% of
the Protected Payment Base, less cumulative withdrawals during
that Contract Year and will be reset to 5% of the Protected
Payment Base each Contract Anniversary. If the youngest
Designated Life is younger than
591/2 years
of age, the Protected Payment Amount is equal to zero (0).
However, once the youngest Designated Life reaches
age 591/2,
the Protected Payment Amount will equal 5% of the Protected
Payment Base and will be reset each Contract Anniversary. The
initial Protected Payment Amount will depend upon the age of the
youngest Designated Life.
Protected Payment Base – An amount used to
determine the Protected Payment Amount. The Protected Payment
Base will remain unchanged except as otherwise described under
the provisions of this Rider. The initial Protected Payment Base
is equal to the initial Purchase Payment, if the Rider Effective
Date is on the Contract Date, or the Contract Value, if the
Rider Effective Date is on a Contract Anniversary.
Reset Date – Any Contract Anniversary after the
Rider Effective Date on which an Automatic Reset or
Owner-Elected Reset occurs.
Rider Effective Date – The date the guarantees
and charges for the Rider become effective. If the Rider is
purchased within 60 days of the Contract Date, the Rider
Effective Date is the Contract Date. If the Rider is purchased
within 60 days of a Contract Anniversary, the Rider
Effective Date is the date of that Contract Anniversary.
Spouse – The Owner’s spouse who is
treated as the Owner’s spouse pursuant to federal law. If
the Contract is a custodial owned IRA or TSA, the
Annuitant’s spouse who is treated as the Annuitant’s
spouse pursuant to federal law.
Surviving Spouse – The surviving spouse of
a deceased Owner (or Annuitant in the case of a custodial owned
IRA or TSA).
How the
Rider Works
On any day, this Rider guarantees you can withdraw up to the
Protected Payment Amount, regardless of market performance,
until the Rider terminates. Beginning with the
1st anniversary
of the Rider Effective Date or most recent Reset Date, whichever
is later, the Rider provides for Automatic Annual Resets or
Owner-Elected Resets of the Protected Payment Base to an amount
equal to 100% of the Contract Value. Once the Rider is
purchased, you cannot request a termination of the Rider (see
the Termination subsection of this Rider for more
information).
If the youngest Designated Life is
591/2 years
of age or older, the Protected Payment Amount is 5% of the
Protected Payment Base. If the youngest Designated Life is
younger than
591/2 years
of age, the Protected Payment Amount is zero (0).
The Protected Payment Base may change over time. An Automatic
Reset or Owner-Elected Reset will increase or decrease the
Protected Payment Base depending on the Contract Value on the
Reset Date. A withdrawal that is less than or equal to the
Protected Payment Amount will not change the Protected Payment
Base. If a withdrawal is greater than the Protected Payment
Amount and the Contract Value is less than the Protected Payment
Base, the Protected Payment Base will be reduced by an amount
that is greater than the excess amount withdrawn. For
withdrawals that are greater than the Protected Payment Amount,
see the Withdrawal of Protected Payment Amount subsection.
For purposes of this Rider, the term “withdrawal”
includes any applicable withdrawal charges. Amounts withdrawn
under this Rider will reduce the Contract Value by the amount
withdrawn and will be subject to the same conditions,
limitations, restrictions and all other fees, charges and
deductions, if applicable, as withdrawals otherwise made under
the provisions of the Contract. Withdrawals under this Rider are
not annuity payouts. Annuity payouts generally receive a more
favorable tax treatment than other withdrawals.
If your Contract is a Qualified Contract, including an IRA or
TSA/403(b) Contract, you are subject to restrictions on
withdrawals you may take prior to a triggering event (e.g.
reaching
age 591/2,
separation from service, disability) and you should consult your
tax or legal advisor prior to purchasing this optional
guarantee, the primary benefit of which is guaranteeing
withdrawals. For additional information regarding withdrawals
and triggering events, see the FEDERAL TAX ISSUES –
IRAs and Qualified Plans section in the Prospectus.
Withdrawal
of Protected Payment Amount
When the youngest Designated Life is
591/2 years
of age or older, you may withdraw up to the Protected Payment
Amount each Contract Year, regardless of market performance,
until the Rider terminates. The Protected Payment Amount will be
reduced by the amount withdrawn during the Contract Year and
will be reset each Contract Anniversary to 5% of the Protected
Payment Base. Any portion of the Protected Payment Amount not
withdrawn during a Contract Year may not be carried over to the
next Contract Year. If a withdrawal does not exceed the
Protected Payment Amount immediately prior to that withdrawal,
the Protected Payment Base will remain unchanged.
Withdrawals Exceeding the Protected Payment Amount. If a
withdrawal (except an RMD withdrawal) exceeds the Protected
Payment Amount immediately prior to that withdrawal, we will
(immediately following the withdrawal) reduce the Protected
Payment Base on a proportionate basis for the amount in excess
of the Protected Payment Amount. (See Sample Calculations
- Example #4 for a numerical example of the
adjustments to the Protected Payment Base as a result of an
Excess Withdrawal.) If a withdrawal is greater than the
Protected Payment Amount and the Contract Value is less than the
Protected Payment Base, the Protected Payment Base will be
reduced by an amount that is greater than the excess amount
withdrawn.
The amount available for withdrawal under the Contract must be
sufficient to support any withdrawal that would otherwise exceed
the Protected Payment Amount.
For information regarding taxation of withdrawals, see the
FEDERAL TAX ISSUES section in the Prospectus.
Early
Withdrawal
If an Early Withdrawal occurs, we will (immediately following
the Early Withdrawal) reduce the Protected Payment Base either
on a proportionate basis or by the total withdrawal amount,
whichever results in a lower Protected Payment Base. See
Sample Calculations – Example # 8 for numerical
examples of the adjustments to the Protected Payment Base as a
result of an Early Withdrawal.
Required
Minimum Distributions
No adjustment will be made to the Protected Payment Base as a
result of a withdrawal that exceeds the Protected Payment Amount
immediately prior to the withdrawal, provided:
•
such withdrawal (an “RMD Withdrawal”) is for purposes
of satisfying the minimum distribution requirements of
Section 401(a)(9) and related Code provisions in effect at
that time,
•
you have authorized us to calculate and make periodic
distribution of the Annual RMD Amount for the Calendar Year
required based on the payment frequency you have chosen,
•
the Annual RMD Amount is based on this Contract only,
•
the youngest Designated Life is age
591/2
or older, and
•
only RMD withdrawals are made from the Contract during the
Contract Year.
See Sample Calculations – Example #5 for
numerical examples that describe what occurs when only
withdrawals of the Annual RMD Amount are made during a Contract
Year and when withdrawals of the Annual RMD Amount plus other
non-RMD Withdrawals are made during a Contract Year.
See the FEDERAL TAX ISSUES – Qualified
Contracts – Required Minimum Distributions
section in the Prospectus.
Depletion
of Contract Value
If the youngest Designated Life is younger than
age 591/2
when the Contract Value is zero, the Rider will terminate.
If the youngest Designated Life is
age 591/2
or older and the Contract Value was reduced to zero by a
withdrawal that exceeds the Protected Payment Amount, the Rider
will terminate.
If the youngest Designated Life is
age 591/2
or older and the Contract Value was reduced to zero by a
withdrawal (including an RMD withdrawal) that did not exceed the
Protected Payment Amount, the following will apply:
•
the Protected Payment Amount will be paid each year until the
death of all Designated Lives eligible for lifetime benefits,
•
the Protected Payment Amount will be paid under a series of
pre-authorized withdrawals under a payment frequency as elected
by the Owner, but no less frequently than annually,
•
no additional Purchase Payments will be accepted under the
Contract, and
•
the Contract will cease to provide any death benefit.
Reset of
Protected Payment Base
On and after each Reset Date, the provisions of this Rider shall
apply in the same manner as they applied when the Rider was
originally issued. The limitations and restrictions on Purchase
Payments and withdrawals, the deduction of Rider charges and any
future reset options available on and after the Reset Date, will
again apply and will be measured from that Reset Date. A reset
occurs when the Protected Payment Base is changed to an amount
equal to the Contract Value as of the Reset Date.
Automatic Reset. On each Contract Anniversary while this
Rider is in effect and before the Annuity Date, we will
automatically reset the Protected Payment Base to an amount
equal to 100% of the Contract Value, if the Protected Payment
Base is less than the Contract Value on that Contract
Anniversary. The annual charge percentage may change as a result
of any Automatic Reset (see the CHARGES, FEES AND
DEDUCTIONS – Optional Rider Charges section in
this supplement).
Automatic Reset – Opt-Out Election. Within
60 days after a Contract Anniversary on which an Automatic
Reset is effective, you have the option to reinstate the
Protected Payment Base, Protected Payment Amount and annual
charge percentage to their respective amounts immediately before
the Automatic Reset. Any future Automatic Resets will continue
in accordance with the Automatic Reset paragraph above.
If you elect this option, your opt-out election must be
received, in a form satisfactory to us, at our Service Center
within the same 60 day period after the Contract
Anniversary on which the reset is effective.
Automatic Reset – Future Participation. You may
elect not to participate in future Automatic Resets at any time.
Your election must be received, in a form satisfactory to us, at
our Service Center, while this Rider is in effect and before the
Annuity Date. Such election will be effective for future
Contract Anniversaries.
If you previously elected not to participate in Automatic
Resets, you may re-elect to participate in future Automatic
Resets at any time. Your election to resume participation must
be received, in a form satisfactory to us, at our Service Center
while this Rider is in effect and before the Annuity Date. Such
election will be effective for future Contract Anniversaries as
described in the Automatic Reset paragraph above.
Owner-Elected Resets (Non-Automatic). You may, on any
Contract Anniversary, elect to reset the Protected Payment Base
to an amount equal to 100% of the Contract Value. An
Owner-Elected Reset may be elected while Automatic Resets are in
effect. The annual charge percentage may change as a result of
this Reset.
If you elect this option, your election must be received, in a
form satisfactory to us, at our Service Center within
60 days after the Contract Anniversary on which the reset
is effective. The reset will be based on the Contract Value as
of that Contract Anniversary. Your election of this option
may result in a reduction in the Protected Payment Base and
Protected Payment Amount. Generally, the reduction will
occur when your Contract Value is less than the Protected
Payment Base as of the Contract Anniversary you elected the
reset. You are strongly advised to work with your financial
professional prior to electing an Owner-Elected Reset. We
will provide you with written confirmation of your election.
Subsequent
Purchase Payments
If we receive additional Purchase Payments after the Rider
Effective Date, we will increase the Protected Payment Base by
the amount of the Purchase Payments. However, for purposes of
this Rider, we reserve the right to restrict additional Purchase
Payments that result in a total of all Purchase Payments
received on or after the later of the
1st Contract
Anniversary or most recent Reset Date to exceed $100,000 without
our prior approval.
Annuitization
If you annuitize the Contract at the maximum Annuity Date
specified in your Contract and this Rider is still in effect at
the time of your election and a Life Only fixed annuity option
is chosen, the annuity payments will be equal to the greater of:
•
the Life Only fixed annual payment amount based on the terms of
your Contract, or
•
the Protected Payment Amount in effect at the maximum Annuity
Date.
If you annuitize the Contract at any time prior to the maximum
Annuity Date specified in your Contract, your annuity payments
will be determined in accordance with the terms of your
Contract. The Protected Payment Base and Protected Payment
Amount under this Rider will not be used in determining any
annuity payments. Work with your financial professional to
determine if you should annuitize your Contract before the
maximum Annuity Date or stay in the accumulation phase and
continue to take withdrawals under the Rider.
Continuation
of Rider if Surviving Spouse Continues Contract
If the Owner dies and the Surviving Spouse (who is also a
Designated Life eligible for lifetime benefits) elects to
continue the Contract in accordance with its terms, the
Surviving Spouse may continue to take withdrawals of the
Protected Payment Amount under this Rider, until the Rider
terminates.
The surviving spouse may elect to receive any death benefit
proceeds instead of continuing the Contract (see DEATH
BENEFITS AND OPTIONAL DEATH BENEFIT RIDERS – Death
Benefits).
Ownership
and Beneficiary Changes
Changes to the Contract Owner, Annuitant
and/or
Beneficiary designations and changes in marital status,
including a dissolution of marriage, may adversely affect the
benefits of this Rider. A particular change may make a
Designated Life ineligible to receive lifetime income benefits
under this Rider. As a result, the Rider may remain in effect
and you may pay for benefits that you will not receive. You
are strongly advised to work with your investment professional
and consider your options prior to making any Owner, Annuitant
and/or
Beneficiary changes to your Contract.
Termination
You cannot request a termination of the Rider. Except as
otherwise provided below, the Rider will automatically terminate
on the earliest of:
•
the day any portion of the Contract Value is no longer allocated
according to the Investment Allocation Requirements,
•
the date of the death of all Designated Lives eligible for
lifetime benefits,
•
upon the death of the first Designated Life, if a death benefit
is payable and a Surviving Spouse who chooses to continue the
Contract is not a Designated Life eligible for lifetime benefits,
•
upon the death of the first Designated Life, if a death benefit
is payable and the Contract is not continued by a Surviving
Spouse who is a Designated Life eligible for lifetime benefits,
•
if both Designated Lives are Joint Owners and there is a change
in marital status, the Rider will terminate upon the death of
the first Designated Life who is a Contract Owner,
•
the day the Contract is terminated in accordance with the
provisions of the Contract,
•
the day that neither Designated Life is an Owner (or Annuitant,
in the case of a custodial owned IRA or TSA),
•
the day you exchange this Rider for another withdrawal benefit
Rider,
•
the Annuity Date (see the Annuitization subsection for
additional information),
•
the day the Contract Value is reduced to zero as a result of a
withdrawal (except an RMD withdrawal) that exceeds the Protected
Payment Amount, or
•
the day the Contract Value is reduced to zero if the youngest
Designated Life is younger than
age 591/2.
The Rider and the Contract will not terminate the day the
Contract Value is zero and you begin taking pre-authorized
withdrawals of the Protected Payment Amount (see the
Depletion of Contract Value subsection). In this case,
the Rider and the Contract will terminate the date of death of
all Designated Lives eligible for lifetime benefits.
Sample
Calculations
The examples provided are based on certain hypothetical
assumptions and are for example purposes only. Where Contract
Value is reflected, the examples do not assume any specific
return percentage. The examples have been provided to assist in
understanding the benefits provided by this Rider and to
demonstrate how Purchase Payments received and withdrawals made
from the Contract prior to the Annuity Date affect the values
and benefits under this Rider over an extended period of time.
Any Credit Enhancement added to your Contract is not counted as
a Purchase Payment and is not included when determining the
guarantees under any of the optional living benefit riders. Any
calculations for determining a Reset/Step-Up are based on
Contract Value, which includes any Credit Enhancement. There may
be minor differences in the calculations due to rounding.
These examples are not intended to serve as projections of
future investment returns nor are they a reflection of how your
Contract will actually perform.
Examples 1
through 5 and 8 apply to CoreIncome Advantage 5 (Single)
and (Joint).
Example #1 – Setting
of Initial Values.
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
•
Rider Effective Date = Contract Date
•
Every Owner and Annuitant (every Designated Life for Joint) is
64 years old.
Protected
Protected
Purchase
Contract
Payment
Payment
Payment
Withdrawal
Value
Base
Amount
Rider Effective Date
$100,000
$104,000
$100,000
$5,000
On the Rider Effective Date, the initial values are set as
follows:
•
Protected Payment Base = Initial Purchase
Payment = $100,000
•
Protected Payment Amount = 5% of Protected Payment
Base = $5,000
Example #2 – Subsequent
Purchase Payments.
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
•
Rider Effective Date = Contract Date
•
Every Owner and Annuitant (every Designated Life for Joint) is
64 years old.
•
A subsequent Purchase Payment of $100,000 is received during
Contract Year 1.
•
No withdrawals taken.
•
Automatic Reset at Beginning of Contract Year 2.
•
Each Contract Anniversary referenced in the table represents the
first day of the applicable Contract Year.
Protected
Protected
Purchase
Contract
Payment
Payment
Payment
Withdrawal
Value
Base
Amount
Rider Effective Date
$100,000
$104,000
$100,000
$5,000
Activity
$100,000
$208,000
$200,000
$10,000
Year 2 Contract Anniversary
(Prior to Automatic Reset)
$207,000
$200,000
$10,000
Year 2 Contract Anniversary
(After Automatic Reset)
$207,000
$207,000
$10,350
Immediately after the $100,000 subsequent Purchase Payment
during Contract Year 1, the Protected Payment Base is
increased by the Purchase Payment amount to $200,000
($100,000 + $100,000). The Protected Payment Amount
after the Purchase Payment is equal to $10,000 (5% of the
Protected Payment Base after the Purchase Payment).
An automatic reset takes place at Year 2 Contract
Anniversary, since the Contract Value ($207,000) is higher than
the Protected Payment Base ($200,000). This resets the Protected
Payment Base to $207,000 and the Protected Payment Amount to
$10,350 (5% × $207,000).
In addition to Purchase Payments, the Contract Value is further
subject to increases and/or decreases during each Contract Year
as a result of charges, fees and other deductions, and increases
and/or decreases in the investment performance of the Variable
Account.
Example #3 – Withdrawals
Not Exceeding Protected Payment Amount.
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
•
Rider Effective Date = Contract Date
•
Every Owner and Annuitant (every Designated Life for Joint) is
64 years old.
•
A subsequent Purchase Payment of $100,000 is received during
Contract Year 1.
•
A withdrawal equal to or less than the Protected Payment Amount
is taken during Contract Year 2.
•
Automatic Resets at Beginning of Contract Years 2
and 3.
•
Each Contract Anniversary referenced in the table represents the
first day of the applicable Contract Year.
Protected
Protected
Purchase
Contract
Payment
Payment
Payment
Withdrawal
Value
Base
Amount
Rider Effective Date
$100,000
$104,000
$100,000
$5,000
Activity
$100,000
$208,000
$200,000
$10,000
Year 2 Contract Anniversary
(Prior to Automatic Reset)
$207,000
$200,000
$10,000
Year 2 Contract Anniversary
(After Automatic Reset)
$207,000
$207,000
$10,350
Activity
$5,000
$216,490
$207,000
$5,350
Year 3 Contract Anniversary
(Prior to Automatic Reset)
$216,490
$207,000
$10,350
Year 3 Contract Anniversary
(After Automatic Reset)
$216,490
$216,490
$10,825
For an explanation of the values and activities at the start of
and during Contract Year 1, refer to Examples #1
and #2.
An automatic reset takes place at Year 2 Contract
Anniversary, since the Contract Value ($207,000) is higher than
the Protected Payment Base ($200,000). This resets the Protected
Payment Base to $207,000 and the Protected Payment Amount to
$10,350 (5% × $207,000).
As the withdrawal during Contract Year 2 did not
exceed the Protected Payment Amount immediately prior to the
withdrawal ($10,350), the Protected Payment Base remains
unchanged.
At Year 3 Contract Anniversary, since the Protected Payment
Base was less than the Contract Value on that Contract
Anniversary (see balances at Year 3 Contract
Anniversary – Prior to Automatic Reset), an
automatic reset occurred which resets the Protected Payment Base
to an amount equal to 100% of the Contract Value (see
balances at Year 3 Contract
Anniversary – After Automatic Reset). As a
result, the Protected Payment Amount is equal to $10,825 (5% of
the reset Protected Payment Base).
Example #4 –
Withdrawals Exceeding Protected Payment Amount.
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
•
Rider Effective Date = Contract Date
•
Every Owner and Annuitant (every Designated Life for Joint) is
64 years old.
•
A subsequent Purchase Payment of $100,000 is received during
Contract Year 1.
•
A withdrawal greater than the Protected Payment Amount is taken
during Contract Year 2.
•
Automatic Resets at Beginning of Contract Years 2
and 3.
•
Each Contract Anniversary referenced in the table represents the
first day of the applicable Contract Year.
Protected
Protected
Purchase
Contract
Payment
Payment
Payment
Withdrawal
Value
Base
Amount
Rider Effective Date
$100,000
$104,000
$100,000
$5,000
Activity
$100,000
$208,000
$200,000
$10,000
Year 2 Contract Anniversary
(Prior to Automatic Reset)
$207,000
$200,000
$10,000
Year 2 Contract Anniversary
(After Automatic Reset)
$207,000
$207,000
$10,350
Activity
$25,000
$196,490
$192,634
$0
Year 3 Contract Anniversary
(Prior to Automatic Reset)
$196,490
$192,634
$9,632
Year 3 Contract Anniversary
(After Automatic Reset)
$196,490
$196,490
$9,825
For an explanation of the values and activities at the start of
and during Contract Year 1, refer to Examples #1
and #2.
Because the $25,000 withdrawal during Contract Year 2
exceeds the Protected Payment Amount immediately prior to
the withdrawal ($25,000 > $10,350), the Protected
Payment Base immediately after the withdrawal is reduced.
The Values shown below are based on the following assumptions
immediately before the excess withdrawal:
No withdrawals were taken prior to the excess withdrawal
A withdrawal of $25,000 was taken, which exceeds the Protected
Payment Amount of $10,350 for the Contract Year. The Protected
Payment Base will be reduced based on the following calculation:
First, determine the excess withdrawal amount. The excess
withdrawal amount is the total withdrawal amount less the
Protected Payment Amount. Numerically, the excess withdrawal
amount is $14,650 (total withdrawal
amount − Protected Payment Amount;
$25,000 − $10,350 = $14,650).
Second, determine the ratio for the proportionate reduction. The
ratio is the excess withdrawal amount determined above divided
by (Contract Value − Protected Payment Amount);
the calculation is based on the Contract Value and the Protected
Payment Amount values immediately before the excess withdrawal.
The Contract Value prior to the withdrawal was $221,490, which
equals the $196,490 after the withdrawal plus the $25,000
withdrawal amount. Numerically, the ratio is 6.94%
($14,650 ¸
($221,490 − $10,350);
$14,650 ¸ $211,140 = 0.0694
or 6.94%).
Third, determine the new Protected Payment Base. The Protected
Payment Base will be reduced on a proportionate basis. The
Protected Payment Base is multiplied by 1 less the ratio
determined above. Numerically, the new Protected Payment Base is
$192,634 (Protected Payment
Base × (1 − ratio);
$207,000 × (1 − 6.94%);
$207,000 × 93.06% = $192,634).
The Protected Payment Amount immediately after the withdrawal is
equal to $0 (5% of the Protected Payment Base after the
withdrawal (5% of $192,634 = $9,632), less cumulative
withdrawals during that Contract Year ($25,000), but not less
than zero).
At Year 3 Contract Anniversary, since the Protected Payment
Base was less than the Contract Value on that Contract
Anniversary (see balances at Year 3 Contract
Anniversary – Prior to Automatic Reset), an
Automatic Reset occurred which resets the Protected Payment Base
to an amount equal to 100% of the Contract Value (see
balances at Year 3 Contract
Anniversary – After Automatic Reset).
Example #5 – RMD
Withdrawals.
This is an example of the effect of cumulative RMD Withdrawals
during the Contract Year that exceed the Protected Payment
Amount established for that Contract Year and its effect on the
Protected Payment Base. The Annual RMD Amount is based on the
entire interest of your Contract as of the previous year-end.
This table assumes quarterly withdrawals of only the Annual RMD
Amount during the Contract Year. The calculated Annual RMD
amount for the Calendar Year is $7,500 and the Contract
Anniversary is May 1 of each year.
Annual
Protected
Protected
Activity
RMD
Non-RMD
RMD
Payment
Payment
Date
Withdrawal
Withdrawal
Amount
Base
Amount
05/01/2006
$100,000
$5,000
Contract
Anniversary
01/01/2007
$7,500
03/15/2007
$1,875
$100,000
$3,125
05/01/2007
$100,000
$5,000
Contract
Anniversary
06/15/2007
$1,875
$100,000
$3,125
09/15/2007
$1,875
$100,000
$1,250
12/15/2007
$1,875
$100,000
$0
01/01/2008
$8,000
03/15/2008
$2,000
$100,000
$0
05/01/2008
$100,000
$5,000
Contract
Anniversary
Since the RMD Amount for 2008 increases to $8,000, the quarterly
withdrawals of the RMD Amount increase to $2,000, as shown by
the RMD withdrawal on March 15, 2008. Because all
withdrawals during the Contract Year were RMD Withdrawals, there
is no adjustment to the Protected Payment Base for exceeding the
Protected Payment Amount. In addition, each contract year the
Protected Payment Amount is reduced by the amount of each
withdrawal until the Protected Payment Amount is zero.
This chart assumes quarterly withdrawals of the Annual RMD
Amount and other non-RMD Withdrawals during the Contract Year.
The calculated Annual RMD amount and Contract Anniversary are
the same as above.
Annual
Protected
Protected
Activity
RMD
Non-RMD
RMD
Payment
Payment
Date
Withdrawal
Withdrawal
Amount
Base
Amount
05/01/2006
$0
$100,000
$5,000
Contract
Anniversary
01/01/2007
$7,500
03/15/2007
$1,875
$100,000
$3,125
04/01/2007
$2,000
$100,000
$1,125
05/01/2007
$100,000
$5,000
Contract
Anniversary
06/15/2007
$1,875
$100,000
$3,125
09/15/2007
$1,875
$100,000
$1,250
11/15/2007
$4,000
$96,900
$0
On 3/15/07
there was an RMD Withdrawal of $1,875 and on
4/1/07 a
non-RMD Withdrawal of $2,000. Because the total withdrawals
during the Contract Year
(5/1/06
through
4/30/07) did
not exceed the Protected Payment Amount of $5,000 there was no
adjustment to the Protected Payment Base. On
5/1/07, the
Protected Payment Amount was re-calculated (5% of the Protected
Payment Base) as of that Contract Anniversary.
On 11/15/07,
there was a non-RMD Withdrawal ($4,000) that caused the
cumulative withdrawals during the Contract Year ($7,750) to
exceed the Protected Payment Amount ($5,000). As the withdrawal
exceeded the Protected Payment Amount immediately prior to the
withdrawal ($1,250), and assuming the Contract Value was $90,000
immediately prior to the withdrawal, the Protected Payment Base
is reduced to $96,900.
The Values shown below are based on the following assumptions
immediately before the excess withdrawal:
•
Contract Value = $90,000
•
Protected Payment Base = $100,000
•
Protected Payment Amount = $1,250
A withdrawal of $4,000 was taken, which exceeds the Protected
Payment Amount of $1,250. The Protected Payment Base will be
reduced based on the following calculation:
First, determine the excess withdrawal amount. The excess
withdrawal amount is the total withdrawal amount less the
Protected Payment Amount. Numerically, the excess withdrawal
amount is $2,750 (total withdrawal
amount − Protected Payment Amount;
$4,000 − $1,250 = $2,750).
Second, determine the ratio for the proportionate reduction. The
ratio is the excess withdrawal amount determined above divided
by (Contract Value − Protected Payment Amount);
the calculation is based on the Contract Value and the Protected
Payment Amount values immediately before the excess withdrawal.
Numerically, the ratio is 3.10%
($2,750 ¸ ($90,000 − $1,250);
$2,750 ¸ $88,750 = 0.0310
or 3.10%).
Third, determine the new Protected Payment Base. The Protected
Payment Base will be reduced on a proportionate basis. The
Protected Payment Base is multiplied by 1 less the ratio
determined above. Numerically, the new Protected Payment Base is
$96,900 (Protected Payment
Base × (1 − ratio);
$100,000 × (1 − 3.10%);
$100,000 × 96.90% = $96,900).
Example #6 – Lifetime
Income.
This
example applies to CoreIncome Advantage 5 (Single)
only.
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
•
Rider Effective Date = Contract Date
•
Every Owner and Annuitant is 64 years old.
•
No subsequent Purchase Payments are received.
•
Withdrawals, each equal to 5% of the Protected Payment Base are
taken each Contract Year.
•
No Automatic Reset or Owner-Elected Reset is assumed during the
life of the Rider.
Protected
Protected
Contract
End of Year
Payment
Payment
Year
Withdrawal
Contract Value
Base
Amount
1
$5,000
$96,489
$100,000
$5,000
2
$5,000
$94,384
$100,000
$5,000
3
$5,000
$92,215
$100,000
$5,000
4
$5,000
$89,982
$100,000
$5,000
5
$5,000
$87,681
$100,000
$5,000
6
$5,000
$85,311
$100,000
$5,000
7
$5,000
$82,871
$100,000
$5,000
8
$5,000
$80,357
$100,000
$5,000
9
$5,000
$77,768
$100,000
$5,000
10
$5,000
$75,101
$100,000
$5,000
11
$5,000
$72,354
$100,000
$5,000
12
$5,000
$69,524
$100,000
$5,000
13
$5,000
$66,610
$100,000
$5,000
14
$5,000
$63,608
$100,000
$5,000
15
$5,000
$60,517
$100,000
$5,000
16
$5,000
$57,332
$100,000
$5,000
17
$5,000
$54,052
$100,000
$5,000
18
$5,000
$50,674
$100,000
$5,000
19
$5,000
$47,194
$100,000
$5,000
20
$5,000
$43,610
$100,000
$5,000
21
$5,000
$39,918
$100,000
$5,000
22
$5,000
$36,115
$100,000
$5,000
23
$5,000
$32,199
$100,000
$5,000
Protected
Protected
Contract
End of Year
Payment
Payment
Year
Withdrawal
Contract Value
Base
Amount
24
$5,000
$28,165
$100,000
$5,000
25
$5,000
$24,010
$100,000
$5,000
26
$5,000
$19,730
$100,000
$5,000
27
$5,000
$15,322
$100,000
$5,000
28
$5,000
$10,782
$100,000
$5,000
29
$5,000
$6,105
$100,000
$5,000
30
$5,000
$1,288
$100,000
$5,000
31
$5,000
$0
$100,000
$5,000
32
$5,000
$0
$100,000
$5,000
33
$5,000
$0
$100,000
$5,000
34
$5,000
$0
$100,000
$5,000
On the Rider Effective Date, the initial values are set as
follows:
•
Protected Payment Base = Initial Purchase
Payment = $100,000
•
Protected Payment Amount = 5% of Protected Payment
Base = $5,000
Because the amount of each withdrawal does not exceed the
Protected Payment Amount immediately prior to the withdrawal
($5,000), the Protected Payment Base remains unchanged.
Withdrawals of 5% of the Protected Payment Base will continue to
be paid each year (even after the Contract Value has been
reduced to zero) until the date of death of an Owner or the date
of death of the sole surviving Annuitant (death of any Annuitant
for Non-Natural Owners), whichever occurs first.
Example #7 –
Lifetime Income.
This example applies to CoreIncome Advantage 5 (Joint)
only.
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
•
Rider Effective Date = Contract Date
•
All Designated Lives are 64 years old.
•
No subsequent Purchase Payments are received.
•
Withdrawals, each equal to 5% of the Protected Payment Base are
taken each Contract Year.
•
No Automatic Reset or Owner-Elected Reset is assumed during the
life of the Rider.
•
All Designated Lives remain eligible for lifetime income
benefits while the Rider is in effect.
Protected
Protected
Contract
End of Year
Annual
Payment
Payment
Year
Withdrawal
Contract Value
Credit
Base
Amount
1
$5,000
$96,489
$0
$100,000
$5,000
2
$5,000
$94,384
$0
$100,000
$5,000
3
$5,000
$92,215
$0
$100,000
$5,000
4
$5,000
$89,982
$0
$100,000
$5,000
5
$5,000
$87,681
$0
$100,000
$5,000
6
$5,000
$85,311
$0
$100,000
$5,000
7
$5,000
$82,871
$0
$100,000
$5,000
8
$5,000
$80,357
$0
$100,000
$5,000
9
$5,000
$77,768
$0
$100,000
$5,000
10
$5,000
$75,101
$0
$100,000
$5,000
11
$5,000
$72,354
$0
$100,000
$5,000
12
$5,000
$69,524
$0
$100,000
$5,000
13
$5,000
$66,610
$0
$100,000
$5,000
Protected
Protected
Contract
End of Year
Annual
Payment
Payment
Year
Withdrawal
Contract Value
Credit
Base
Amount
Activity (Death of first
Designated Life)
14
$5,000
$63,608
$0
$100,000
$5,000
15
$5,000
$60,517
$0
$100,000
$5,000
16
$5,000
$57,332
$0
$100,000
$5,000
17
$5,000
$54,052
$0
$100,000
$5,000
18
$5,000
$50,674
$0
$100,000
$5,000
19
$5,000
$47,194
$0
$100,000
$5,000
20
$5,000
$43,610
$0
$100,000
$5,000
21
$5,000
$39,918
$0
$100,000
$5,000
22
$5,000
$36,115
$0
$100,000
$5,000
23
$5,000
$32,199
$0
$100,000
$5,000
24
$5,000
$28,165
$0
$100,000
$5,000
25
$5,000
$24,010
$0
$100,000
$5,000
26
$5,000
$19,730
$0
$100,000
$5,000
27
$5,000
$15,322
$0
$100,000
$5,000
28
$5,000
$10,782
$0
$100,000
$5,000
29
$5,000
$6,105
$0
$100,000
$5,000
30
$5,000
$1,288
$0
$100,000
$5,000
31
$5,000
$0
$0
$100,000
$5,000
32
$5,000
$0
$0
$100,000
$5,000
33
$5,000
$0
$0
$100,000
$5,000
34
$5,000
$0
$0
$100,000
$5,000
On the Rider Effective Date, the initial values are set as
follows:
•
Protected Payment Base = Initial Purchase Payment = $100,000
•
Protected Payment Amount = 5% of Protected Payment Base = $5,000
Because the amount of each withdrawal does not exceed the
Protected Payment Amount immediately prior to the withdrawal
($5,000), the Protected Payment Base remains unchanged.
During Contract Year 13, the death of the first Designated Life
occurred. Withdrawals of the Protected Payment Amount (5% of the
Protected Payment Base) will continue to be paid each year (even
after the Contract Value was reduced to zero) until the Rider
terminates.
If there was a change in Owner, Beneficiary or marital status
prior to the death of the first Designated Life that resulted in
the surviving Designated Life (spouse) to become ineligible for
lifetime income benefits, then the lifetime income benefits
under the Rider would not continue for the surviving Designated
Life and the Rider would terminate upon the death of the first
Designated Life.
Example #8 –
Early Withdrawals.
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
•
Rider Effective Date = Contract Date
•
The oldest Owner (youngest Annuitant in the case of a
Non-Natural Owner; youngest Designated Life for Joint) is
561/2 years
old.
•
A subsequent Purchase Payment of $100,000 is received during
Contract Year 1.
•
A withdrawal greater than the Protected Payment Amount is taken
during Contract Year 2.
•
Automatic Resets at Beginning of Contract Years 2, 3
and 4.
•
Each Contract Anniversary referenced in the table represents the
first day of the applicable Contract Year.
Protected
Protected
Purchase
Contract
Payment
Payment
Payment
Withdrawal
Value
Base
Amount
Rider Effective Date
$100,000
$104,000
$100,000
$0
Activity
$100,000
$208,000
$200,000
$0
Year 2 Contract Anniversary
(Prior to Automatic Reset)
$207,000
$200,000
$0
Year 2 Contract Anniversary
(After Automatic Reset)
$207,000
$207,000
$0
Activity
$25,000
$196,490
$182,000
$0
Year 3 Contract Anniversary
(Prior to Automatic Reset)
$196,490
$182,000
$0
Year 3 Contract Anniversary
(After Automatic Reset)
$196,490
$196,490
$0
Year 4 Contract Anniversary
(Prior to Automatic Reset)
$205,000
$196,490
$0
Year 4 Contract Anniversary
(After Automatic Reset)
$205,000
$205,000
$10,250
Because the $25,000 withdrawal during Contract Year 2
exceeds the Protected Payment Amount immediately prior to
the withdrawal ($25,000 > $0), the Protected
Payment Base immediately after the withdrawal is reduced.
The Values shown below are based on the following assumptions
immediately before the excess withdrawal:
•
Contract Value = $221,490
•
Protected Payment Base = $207,000
•
No withdrawals were taken prior to the excess withdrawal
A withdrawal of $25,000 was taken, which exceeds the Protected
Payment Amount of $0 for the Contract Year. The Protected
Payment Base will be reduced based on the following calculation:
First, determine the early withdrawal amount. The early
withdrawal amount is the total withdrawal amount ($25,000).
Second, determine the ratio for the proportionate reduction. The
ratio is the early withdrawal amount divided by the Contract
Value prior to the withdrawal. The Contract Value prior to the
withdrawal was $221,490, which equals the $196,490 after the
withdrawal plus the $25,000 withdrawal amount. Numerically, the
ratio is 11.29%
($25,000 ¸
$221,490 = 0.1129 or 11.29%).
Third, determine the new Protected Payment Base. The Protected
Payment Base is reduced either on a proportionate basis or by
the total withdrawal amount, whichever results in the lower
Protected Payment Base.
To determine the proportionate reduction, the Protected Payment
Base is multiplied by 1 less the ratio determined above.
Numerically, the new Protected Payment Base is $183,630
(Protected Payment Base × (1 − ratio); $207,000
× (1 − 11.29%); $207,000 × 88.71% = $183,630).
To determine the total withdrawal amount reduction, the
Protected Payment Base is reduced by the total withdrawal
amount. Numerically, after the Protected Payment Base is reduced
by the total withdrawal amount, the new Protected Payment Base
is $182,000 (Protected Payment Base − total withdrawal
amount; $207,000 − $25,000 = $182,000).
Therefore, since $182,000 (total withdrawal amount method) is
less than $183,630 (proportionate method) the new Protected
Payment Base is $182,000.
At Year 3 Contract Anniversary, since the Protected Payment
Base was less than the Contract Value on that Contract
Anniversary (see balances at Year 3 Contract
Anniversary – Prior to Automatic Reset), an
Automatic Reset occurred which resets the Protected Payment Base
to an amount equal to 100% of the Contract Value (see
balances at Year 3 Contract
Anniversary – After Automatic Reset). The
Protected Payment Amount remains at $0 since the oldest Owner
(youngest Annuitant for Non-Natural Owners; youngest Designated
Life for Joint) has not reached age
591/2.
At Year 4 Contract Anniversary, since the Protected Payment Base
was less than the Contract Value on that Contract Anniversary
(see balances at Year 4 Contract
Anniversary – Prior to Automatic Reset), an
Automatic Reset occurred which resets the Protected Payment Base
to an amount equal to 100% of the Contract Value (see
balances at Year 4 Contract
Anniversary – After Automatic Reset). The
Protected Payment Amount is set to $10,250
(5% × $205,000) since the oldest Owner (youngest
Annuitant for Non-Natural Owners; youngest Designated Life for
Joint) reached age
591/2.
PART II
Part C: OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a)
Financial Statements
Part A: None
Part B:
(1)
Registrant’s Financial Statements
Audited Financial Statements dated as of December 31,2009 and for each of the periods presented which are incorporated by
reference from the 2009
Annual Report include the following for Separate Account
A:
Statements of Assets and Liabilities
Statements of Operations
Statements of Changes in Net Assets
Notes to Financial Statements
Report of Independent Registered Public Accounting Firm
(2)
Depositor’s Financial Statements
Audited Financial Statements dated as of December 31,2009 and 2008, and for each of the three years in the period ended
December 31, 2009, included in Part B include the following for Pacific Life & Annuity
Company:
Independent Auditors’ Report
Statements of Financial Condition
Statements of Operations
Statements of Stockholder’s Equity
Statements of Cash Flows
Notes to Financial Statements
(b)
Exhibits
1.
(a)
Minutes of Action of Board of Directors of PM Group
Life Insurance Company (PM Group) (PL&A) dated July1, 1998.1
II-1
2.
Not applicable
3.
(a)
Distribution Agreement between Pacific Life & Annuity Company
(PL&A) and Pacific Select Distributors, Inc. (PSD)1
(b)
Form of Selling Agreement between Pacific Life & Annuity
Company (PL&A), PSD and Various Broker-Dealers6
Portfolio Optimization
Enrollment/Rider Request Form (Form
No. N2150-5B)4
(d)
Pacific Value Variable Annuity
Application (Form
No. 25-2100-2)6
(e)
Portfolio Optimization
Enrollment/Rider Request Form (Form
No. N2150-6B)6
6.
(a)
Articles of Incorporation of PM Group Life1
(b)
Amended and Restated Articles of Incorporation of PL&A1
(c)
By-laws of Pacific Life & Annuity Company1
7.
Not applicable
8.
(a)
Pacific Select Fund Participation Agreement1
(b)
Addendum to the Pacific Select Fund Participation Agreement (to add the
Strategic Value and Focused 30 Portfolios)1
(c)
Addendum to the Pacific Select Fund Participation Agreement (to add nine new
Portfolios)1
(d)
Addendum to the Pacific Select Fund Participation Agreement (to add the
Equity Income and Research Portfolios)1
(e)
Administrative Agreement Between Pacific Life & Annuity
Company (PL&A) and Pacific Life Insurance Company (“Pacific
Life”)1
(f)
Fund Participation Agreement Between Pacific Life & Annuity
Company, Pacific Select Distributors, Inc., American
Funds Insurance Series, American Funds Distributors, and Capital
Research and Management Company.3
(g)
Form of Exhibit B to
the Pacific Select Fund Participation Agreement (to add International
Small-Cap and Diversified Bond)6
(h)
Form of AllianceBernstein Variable Products Series Fund, Inc. Participation Agreement10
(i)
Form of BlackRock Variable Series Fund, Inc. Participation Agreement10
(1) Amendment to Participation Agreement15
(j)
Form of Franklin Templeton Variable Insurance Products Trust Participation Agreement10
(1) First Amendment to Participation Agreement15
(k)
Form of AllianceBernstein Investments, Inc. Administrative Services Agreement10
(l)
Form of BlackRock Distributors, Inc. Administrative Services Agreement10
(1) Amendment to Administrative Services Agreement15
(m)
Form of Franklin Templeton Series, LLC Administrative Services Agreement10
(1) First Amendment to Administrative Services Agreement15
(n)
Form of AIM Variable Insurance Funds Participation Agreement11
(o)
Form of Invesco Aim Distributors, Inc. Distribution Services Agreement11
(p)
Form of Invesco Aim Advisors, Inc. Administrative Services Agreement11
(q)
Form of GE Investments Funds, Inc. Participation Agreement11
(1) Amendment to Participation Agreement15
(r)
Form of GE Investment Distributors, Inc. Distribution and Services Agreement (Amended and Restated)15
(s)
Form of Van Kampen Life Investment Trust Participation Agreement11
(t)
Form of Van Kampen Funds, Inc. Shareholder Service Agreement11
(u)
Form of Van Kampen Asset Management Administrative Services
Letter Agreement11
(v)
Form of GE Investments Funds, Inc. Investor Services Agreement15
(1) First Amendment to Investor Services Agreement15
(w)
Form of PIMCO Variable Insurance Trust Participation Agreement15
(x)
Form of Allianz Global Investors Distributors LLC Selling Agreement15
(y)
Form of PIMCO LLC Services Agreement15
9.
Opinion and Consent of legal officer of Pacific Life & Annuity Company as to
the legality of Contracts being registered.1
II-2
10.
Consent of Independent
Registered Public Accounting Firm and Consent of Independent
Auditors15
Pacific Life & Annuity Company is an Arizona Stock Life Insurance Company
wholly-owned by Pacific Life Insurance Company (a Nebraska Stock Life
Insurance Company) which is wholly-owned by Pacific LifeCorp (a Delaware
Stock Holding Company) which is, in turn, 100% owned by Pacific Mutual Holding
Company (a Nebraska Mutual Insurance Holding Company).
II-4
Item 27. Number of Contractholders
Pacific Value — Approximately
711 Qualified
471 Non Qualified
Item 28. Indemnification
(a)
The Distribution Agreement between Pacific Life & Annuity Company and
Pacific Select Distributors, Inc. (PSD), formerly called Pacific
Mutual Distributors, Inc. (PMD) provides substantially as follows:
Pacific Life & Annuity Company hereby agrees to indemnify and hold
harmless PMD and its officers and directors, and employees for any
expenses (including legal expenses), losses, claims, damages, or
liabilities incurred by reason of any untrue or alleged untrue
statement or representation of a material fact or any omission or
alleged omission to state a material fact required to be stated to
make other statements not misleading, if made in reliance on any
prospectus, registration statement, post-effective amendment thereof,
or sales materials supplied or approved by Pacific Life & Annuity
Company or the Separate Account. Pacific Life & Annuity Company shall
reimburse each such person for any legal or other expenses reasonably
incurred in connection with investigating or defending any such loss,
liability, damage, or claim. However, in no case shall Pacific Life &
Annuity Company be required to indemnify for any expenses, losses,
claims, damages, or liabilities which have resulted from the willful
misfeasance, bad faith, negligence, misconduct, or wrongful act of
PMD.
PMD hereby agrees to indemnify and hold harmless Pacific Life &
Annuity Company, its officers, directors, and employees, and the
Separate Account for any expenses, losses, claims, damages, or
liabilities arising out of or based upon any of the following in
connection with the offer or sale of the contracts: (1) except for
such statements made in reliance on any prospectus, registration
statement or sales material supplied or approved by Pacific Life &
Annuity Company or the Separate Account, any untrue or alleged untrue
statement or representation is made; (2) any failure to deliver a
currently effective prospectus; (3) the use of any unauthorized sales
literature by any officer, employee or agent of PMD or Broker; (4) any
willful misfeasance, bad faith, negligence, misconduct or wrongful
act. PMD shall reimburse each such person for any legal or other
expenses reasonably incurred in connection with investigating or
defending any such loss, liability, damage, or claim.
(b)
The Form of Selling Agreement between Pacific Life & Annuity Company,
Pacific Select Distributors, Inc. (PSD), formerly called Pacific
Mutual Distributors, Inc. (PMD) and Various Broker-Dealers and Agency (Selling Entities) provides
substantially as follows:
Pacific Life & Annuity Company and PSD agree to indemnify and hold harmless Selling Entities,
their officers, directors, agents and employees, against any and all losses, claims, damages, or
liabilities to which they may become subject under the Securities Act, the Exchange Act, the
Investment Company Act of 1940, or other federal or state statutory law or regulation, at common
law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a
material fact or any omission or alleged omission to state a material fact required to be stated or
necessary to make the statements made not misleading in the registration statement for the
Contracts or for the shares of Pacific Select Fund (the “Fund”) filed pursuant to the Securities
Act, or any prospectus included as a part thereof, as from time to time amended and supplemented,
or in any advertisement or sales literature provided by Pacific Life & Annuity Company and PSD.
II-5
Selling Entities agree to, jointly and severally, hold harmless and indemnify Pacific Life &
Annuity Company and PSD and any of their respective affiliates, employees, officers, agents and
directors (collectively, “Indemnified Persons”) against any and all claims, liabilities and
expenses (including, without limitation, losses occasioned by any rescission of any Contract
pursuant to a “free look” provision or by any return of initial purchase payment in connection with
an incomplete application), including, without limitation, reasonable attorneys’ fees and expenses
and any loss attributable to the investment experience under a Contract, that any Indemnified
Person may incur from liabilities resulting or arising out of or based upon (a) any untrue or
alleged untrue statement other than statements contained in the registration statement or
prospectus relating to any Contract, (b)(i) any inaccurate or misleading, or allegedly inaccurate
or misleading sales material used in connection with any marketing or solicitation relating to any
Contract, other than sales material provided preprinted by Pacific Life & Annuity Company or PSD,
and (ii) any use of any sales material that either has not been specifically approved in writing by
Pacific Life & Annuity Company or PSD or that, although previously approved in writing by Pacific
Life & Annuity Company or PSD, has been disapproved, in writing by either of them, for further use,
or (c) any act or omission of a Subagent, director, officer or employee of Selling Entities,
including, without limitation, any failure of Selling Entities or any Subagent to be registered as
required as a broker/dealer under the 1934 Act, or licensed in accordance with the rules of any
applicable SRO or insurance regulator.
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Item 29. Principal Underwriters
(a)
PSD also acts as principal underwriter for Pacific Select Variable Annuity Separate Account,
Separate Account B, Pacific Corinthian Variable Separate Account, Pacific Select Separate Account, Pacific Select Exec Separate Account,
COLI Separate Account, COLI II Separate Account, COLI III Separate Account, COLI IV Separate Account, COLI V Separate Account,
Separate Account A of Pacific Life & Annuity Company, Pacific Select Exec Separate Account of Pacific Life & Annuity
Company, Separate Account I of Pacific Life Insurance Company, Separate Account I of Pacific Life & Annuity Company.
(b)
For information regarding PSD, reference is made to Form B-D, SEC File No.
8-15264, which is herein incorporated by reference.
(c)
PSD retains no compensation or net discounts or commissions from the Registrant.
Item 30. Location of Accounts and Records
The accounts, books and other documents required to be maintained by
Registrant pursuant to Section 31(a) of the Investment Company Act of
1940 and the rules under that section will be maintained by Pacific
Life Insurance Company at 700 Newport Center Drive, Newport Beach,
California92660.
Item 31. Management Services
Not applicable
Item 32. Undertakings
The registrant hereby undertakes:
(a)
to file a post-effective amendment to this registration statement as
frequently as is necessary to ensure that the audited financial
statements in this registration statement are never more than 16
months old for so long as payments under the variable annuity
contracts may be accepted, unless otherwise permitted.
(b)
to include either (1) as a part of any application to purchase a
contract offered by the prospectus, a space that an applicant can
check to request a Statement of Additional Information, or (2) a post
card or similar written communication affixed to or included in the
prospectus that the applicant can remove to send for a Statement of
Additional Information, or (3) to deliver a Statement of Additional
Information with the Prospectus.
(c)
to deliver any Statement of Additional Information and any financial
statements required to be made available under this Form promptly upon
written or oral request.
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Additional Representations
(a) The Registrant and its Depositor are relying upon American Council of
Life Insurance, SEC No-Action Letter, SEC Ref. No. 1P-6-88 (November 28, 1988)
with respect to annuity contracts offered as funding vehicles for retirement
plans meeting the requirements of Section 403(b) of the Internal Revenue Code,
and the provisions of paragraphs (1)-(4) of this letter have been complied
with.
(b) REPRESENTATION PURSUANT TO SECTION 26(f) OF THE INVESTMENT COMPANY
ACT OF 1940: Pacific Life & Annuity Company and the sponsoring insurance
company of the Registrant represent that the fees and charges to be deducted
under the Variable Annuity Contract (“Contract”) described in the prospectus
contained in this registration statement are, in the aggregate, reasonable in
relation to the services rendered, the expenses expected to be incurred, and
the risks assumed in connection with the Contract.
II-8
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets the
requirements of Securities Act Rule 485(b) for effectiveness of this
Registration Statement and has caused this Post-Effective Amendment
No. 19 to
the Registration Statement on Form N-4 to be signed on its behalf by the
undersigned thereunto duly authorized in the City of Newport Beach, and the
State of California on this 23rd day of
December, 2010.
SEPARATE ACCOUNT A
(Registrant)
By:
PACIFIC LIFE & ANNUITY
COMPANY
By:
James T. Morris*
Director, Chairman, President and
Chief Executive Officer
By:
PACIFIC LIFE & ANNUITY
COMPANY
(Depositor)
By:
James T. Morris*
Director, Chairman, President and
Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 19 to the Registration Statement has been signed
below by the following persons in the capacities and on the dates
indicated:
Signature
Title
Date
James T. Morris*
Director, Chairman, President and Chief Executive Officer
(Powers of Attorney are contained in Post-Effective Amendment No. 18
of the Registration Statement filed on Form N-4 for Separate
Account A, File No. 333-107571,
Accession No. 0000950123-10-086807, filed on September 17, 2010 as
Exhibit 14).
II-9
Dates Referenced Herein and Documents Incorporated by Reference