Registration Statement No. 333-254313
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
PRE-EFFECTIVE AMENDMENT No.
POST-EFFECTIVE AMENDMENT No. 2
RIVERSOURCE LIFE INSURANCE COMPANY
(Exact name of registrant as specified in charter)
Minnesota | 41-0823832 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
70100 Ameriprise Financial Center
Minneapolis, MN 55474
(800) 862-7919
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Nicole D. Wood
RiverSource Life Insurance Company
50605 Ameriprise Financial Center
Minneapolis, Minnesota 55474
(612) 678-5337
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Approximate date of commencement of proposed sale to the public: as soon as practicable after the effective date of the Registration Statement.
If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. ☐
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. ☒
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. ☐
If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b2 of the Exchange Act.
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
CALCULATION OF REGISTRATION FEE
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Title of each class of securities to be registered | Amount to be | Proposed maximum offering price per unit | Proposed aggregate | Amount of registration fee | ||||
Individual Limited Flexible Purchase Payments Deferred Indexed Linked Annuity Contract | — | — | $0 | $0 | ||||
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Pursuant to Rule 415(a)(6) under the Securities Act of 1933, Registrant is carrying forward to this Registration Statement 4,634,049,472 shares ($4,634,049,472 in aggregate offering price) of unsold securities that Registrant previously registered on its Registration Statements on Form S-3 File Nos. 333-232973 filed on August 2, 2019 (for which a registration fee of $60,600 was paid), 333-238470 filed on May 18, 2020 (for which a registration fee of $259,600 was paid) and 333-254313 filed on March 16, 2021 (for which a registration fee of $545,500 was paid).
Pursuant to Rule 429 under the Securities Act of 1933, the prospectus dated Aug. 16, 2021 contained herein also relates to and constitutes a post-effective amendment to Registration Statements No. 333-238470 and No. 333-232973.
The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to Section 8(a), may determine.
PART I.
INFORMATION REQUIRED IN PROSPECTUS
Issued by: | RiverSource Life Insurance Company (RiverSource Life) |
70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: 1-800-862-7919 (Service Center) RiverSource Account MGA |
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The Contract | The RiverSource Structured Solutions annuity is an individual limited flexible purchase payment deferred indexed-linked annuity contract with fixed and index-linked investment options. |
Buying the Contract | Purchase Payments |
Purchase payment limits are based on Your age on the effective date of the payment. The minimum purchase payment is $10,000 and the maximum total purchase payments per owner is $1,000,000 ($100,000 for ages 86 to 90). The maximum total purchase payments per Owner includes payments to all deferred annuity contracts issued by Us. | |
You can make additional purchase payments for 90 days after the Contract Date. As such, You will be limited in Your ability to use additional purchase payments to increase the Contract Value and the death benefit. All additional purchase payments are held in the Interim Account which earns daily interest at a rate We declare, but not less than the guaranteed minimum interest rate. For contracts issued through Dec. 31, 2021, the guaranteed minimum interest rate is 1%. For contracts issued on or after Jan. 1, 2022, and later, the guaranteed minimum interest rate will not be less than the rate required by state law. This means You will not be able to allocate additional purchase payments to the Fixed Account or the Indexed Accounts until the next Contract Anniversary which limits Your ability to participate in potential returns associated with the Indexed Accounts or to receive the Fixed Account interest rate. See “Valuing Your Investment - Interim Account Value”. | |
Issue Ages | |
You can buy a Contract if You are age 90 or younger. | |
Right to Examine and Cancel | |
You have the right to examine and cancel the Contract (without incurring a Surrender Charge) within a certain number of days, which can vary by state, but is never less than ten days after You receive it. | |
If this is an IRA contract, upon such cancellation We will refund all purchase payments which You have paid less any partial surrenders You have made. Purchase payments returned will not be reduced for any surrender charges or fees. | |
If this is not an IRA contract, upon such cancellation We will refund an amount equal to the sum of: | |
• the Contract Value as of the Business Day We receive the returned Contract (except in states that require a return of purchase payments); and | |
• any premium tax charges paid. | |
See Appendix A for state variations. |
Note for states where we return Contract Value: Any amount allocated to an Indexed Account will have its value based on the Segment Value calculation (including the Investment Base, the proxy value, and applicable prorated Cap or prorated Contingent Yield) to determine that portion of the Contract Value. During the period of time You have to examine and cancel the Contract, Segment Values may be negatively impacted under this calculation. You bear the risk that the amount refunded may be significantly less than any purchase payments You have made. See “Valuing Your Investment - Indexed Account Value” for more information. | |
If you cancel this Contract under this provision, We reserve the right not to accept another application for this Contract for a period of six months. | |
In certain states, if this Contract is intended to replace an existing Contract, Your right to examine this Contract is extended to 30 Days. | |
For a state-by-state description of material variations of this Contract, including the right to examine and cancel period, see Appendix A: State Variations. | |
Investment Options | You may allocate Your initial purchase payment and Contract Value among the: |
• Fixed Account, which credits daily interest at a rate We declare periodically. | |
• Indexed Accounts, each of which includes an Index(es), Crediting Method, protection option and percentage, and duration. In general, Caps and Contingent Yields will be lower and Annual Fees will be higher if You choose an Indexed Account with a higher protection amount (i.e. Buffer or Trigger). | |
There are currently five categories of Indexed Accounts: |
Category | Durations | Protection Options | Number of Indexed Accounts |
Standard | 1 year | Buffers: -10%, -15%, and -20% Floor: -10% | 9 with Buffers 3 with Floors |
2 years | Buffer: -10% | 7 | |
3 years | Buffers: -10% and -15% | 6 | |
6 years | Buffers: -10%, -15% and -25% | 9 | |
Contingent Yield | 1 year | Buffers: -10%, -15%, and -20% Triggers: -25% and -35% | 6 with Buffers 4 with Triggers |
Annual Lock | 3 and 6 years | Buffer: -10% | 6 |
Annual Fee | 1 and 3 years | Buffer: -10% | 6 |
Enhanced Upside Participation (above 100%) | 1, 3, and 6 years | Buffer: -10% | 6 |
Indexed Accounts will use the following Indexes | |
• S&P 500® Index; | |
• S&P 500 ESG Index; | |
• Russell 2000® Index; | |
• MSCI EAFE Index; | |
• MSCI Emerging Markets Index; | |
• NASDAQ-100® Index; or | |
• iShares U.S. Real Estate ETF |
Most Indexed Accounts use one index to determine the Segment rate of return. However, there are five Contingent Yield Indexed Accounts that calculate the Index rate of return for two indexes (i.e. S& P 500 and Russell 2000) and use the lesser of those Index returns to determine the Segment rate of return. For available Contingent Yield Indexed Accounts, see table in the “investment Options – Indexed Accounts”. The Indices used are price indices and do not reflect dividends paid on the underlying stocks. Each Index is described in more details under the section titled “Indexed Accounts – Additional Information about the Indexes”. | |
Over the course of Your Contract, We may add, discontinue or substitute an Index. For details, see “Investment Options: Discontinuation and Substitution of Indexes and Indexed Accounts.” | |
Initial Rates and Rate Lock | You will receive the initial interest rates, Caps, Contingent Yields, Upside Participation Rates, and Annual Fees in effect on the application date if the Contract is issued within the Rate Lock Period. Your ability to lock in the rates in effect on the application date only applies to the initial rates. Otherwise, interest rates, Caps, Contingent Yields, Upside Participation Rates, and Annual Fees will be based on the rates in effect on the Contract Date. For recent interest rates, Caps, Contingent Yields and Annual Fees available for new contracts, go to www.riversource.com/annuities/performance/ |
Renewal Rates | Renewal interest rates, Caps, Contingent Yields, Upside Participation Rates, and Annual Fees are set at Our discretion, subject to contractual minimums and maximums. Written notification of these rates will be sent to You at least 14 days before each Contract Anniversary. See “Investment Options - Indexed Accounts” for the contractual minimums and maximums. |
Renewal interest rates apply to any Contract Value in the Fixed Account and Interim Account (if any additional purchase payments were received or the optional automated partial surrender transfer program was elected). As applicable, renewal Caps, Contingent Yields, Upside Participation Rates and Annual Fees apply to any Contract Value in the Segments that start on that Contract Anniversary. All renewal rates are determined based on Contract Date (even if rate lock applied for the initial rates). | |
Crediting Methods for the Indexed Accounts | Currently, the Contract offers Indexed Accounts with the following Crediting Methods. |
• Point-to-Point with a Floor; | |
• Point-to-Point with a Buffer; | |
• Point-to-Point with an Annual Fee and Buffer; | |
• Annual Lock with a Buffer; | |
• Point-to-Point with a Contingent Yield and Buffer; and | |
• Point-to-Point with a Contingent Yield and Trigger. | |
We reserve the right to stop offering certain Crediting Methods at the time of Segment renewal. We will notify You at least 14 days before each Contract Anniversary of the available Indexed Accounts and applicable Crediting Methods if You have Contract Value that can be transferred on that Contract Anniversary. | |
Each Crediting Method uses the following elements to calculate the Segment rate of return: | |
• The Index rate of return; | |
• The Upside Participation Rate (if applicable); | |
• The Cap (if applicable); | |
• The Contingent Yield (if applicable); | |
• The Annual Fee (if applicable); | |
• The Floor, Buffer or Trigger. | |
Except for the Annual Lock with a Buffer crediting method, the Segment rate of return is based on a single point in time. | |
See “Crediting Methods” for more information. |
Segment Value | The Segment value will fluctuate daily and may increase or decrease from the initial amount allocated to the Segment (i.e. your Investment Base). We determine the Segment Value using a formula that does not directly reflect the actual performance of the applicable Index, but rather determines the value of a hypothetical portfolio of instruments (including derivatives and fixed assets) that provides the Segment Value at maturity, limited by a prorated Cap or prorated Contingent Yield, if applicable. The value of the hypothetical portfolio, referred to as the proxy value, changes daily and therefore your Segment Value changes daily. Your Investment Base, the proxy value for the hypothetical portfolio, and a prorated Cap or prorated Contingent Yield (if applicable) are used to determine your Segment Value. |
You generally will not receive the full protection of the Buffer, Floor, or Trigger prior to Segment maturity. It is possible that you would see no protection until Segment maturity. It is also possible that you would see no protection from the Trigger at Segment Maturity if the Index rate of return is negative and the loss exceeds the Trigger (i.e the Segment will incur the full Index loss). As a Segment moves closer to maturity, the Segment Value would generally reflect a larger portion of the Buffer or Floor protection. To the extent there is any protection from the Buffer, Floor, or Trigger during a Segment, it is reflected in the proxy value. | |
On the Segment Maturity Date, the Segment Value is based on the Investment Base, the Index return and the applicable Crediting Method including any applicable Cap, Contingent Yield, Upside Participation Rate, Annual Fee, Buffer, Trigger or Floor. Caps, Contingent Yields and Annual Fees, if applicable, may limit any positive return for a Segment. | |
See “Valuing Your Investment - Indexed Account Value” for more information. | |
Elective Lock | If You allocate Contract Value to an Indexed Account, You may exercise the elective lock at any time during the Segment by notifying Us. |
If You decide to exercise the elective lock, Your Segment Value (which otherwise fluctuates daily) is “locked in” on the elective lock date and will not change for the remainder of the Segment. However, Your locked-in value will be reduced by the dollar amount of any surrender You take from the Segment, including any applicable Surrender Charges and taxes. | |
Transfers | You may request a transfer once each Contract Year during a 30-day period ending on the Contract Anniversary (the “Transfer Window”). You may transfer any Contract Value in the Fixed Account, Interim Account, and any Segments that will mature on the next Contract Anniversary (excluding any amounts in the Interim Account for the automated partial surrender transfer program) to the Fixed Account and any available Indexed Accounts. You may not request a transfer to the Interim Account. You may not request a transfer from any Segments that will not mature on the next Contract Anniversary. Keep in mind that We will send You a notice of renewal rates, Caps, Contingent Yields and Annual Fees at least 14 days before Your Contract Anniversary. You may want to wait until You receive this information before requesting a transfer. |
Transfers will be effective as of the Contract Anniversary. If the last Day of the Transfer Window is not a Business Day, We must receive Your completed transfer instructions by the prior Business Day. You may request a transfer by Written Request or other method agreed to by Us. | |
See “Transfers” for more information. |
Surrenders | You may surrender all or part of Your Contract Value at any time before the Annuitization Start Date. You also may establish automated partial surrenders. All surrenders, including those taken on a Segment Maturity Date, may be subject to Surrender Charges (if in excess of the Total Free Amount) and income taxes (including an IRS penalty that may apply if You surrender prior to You reaching age 59 ½) and may have other tax consequences. |
Unless You tell Us otherwise, partial surrenders will be deducted from the Interim Account first. Any remaining amount will be deducted from the Fixed Account and then pro rata from all Indexed Accounts. You may specify the partial surrender is to be deducted from the Fixed and/or a specific Indexed Account(s). If an Indexed Account has multiple open Segments, the specified surrender will be deducted pro rata from all open Segments for that Indexed Account. | |
Each partial surrender must be at least $250. Your Contract Value after the partial surrender must be at least $500. | |
For a partial surrender, We will determine the amount of Contract Value that needs to be surrendered, which after any Surrender Charge will equal the amount You request. When You take a surrender from the Fixed Account, the Fixed Account Value is reduced by the dollar amount of the surrender, including any applicable Surrender Charges and any applicable taxes. | |
Except on the Segment Maturity Date, the value of any Segment will be based on the Segment Value calculation (including the Investment Base, the proxy value, and prorated Cap or prorated Contingent Yield, if applicable). | |
If You take a partial surrender from a Segment, the Segment Value is reduced by the dollar amount of the surrender, including any applicable Surrender Charges and any applicable taxes. The Investment Base for each Segment will be reduced proportionally based on the percentage of Segment Value that is withdrawn. This means that if the Segment Value is higher than the Investment Base at the time of a partial surrender, then the Investment Base is reduced by an amount that is less than the dollar amount withdrawn. Conversely, if the Segment Value is lower than the Investment Base at the time of a partial surrender, then the Investment Base is reduced by an amount that is more than the dollar amount withdrawn. Whether the Segment Value will be higher or lower than the Investment Base is generally dependent upon the performance of the Index in addition to other factors. See “Valuing Your Investment – Indexed Account(s) Value” for more information. | |
This mechanism allows the new Segment Value to reflect the current proxy value at all times during a Segment before the Segment Maturity Date. As an analogy, when a shareholder of a security sells shares of the security to obtain a given dollar amount of proceeds, the number of shares still owned by the shareholder following the sale will be more or less depending on how low or high the share price was at the time of sale. | |
See “Surrenders” and “Surrender Charges” for additional information about how surrenders affect Your Investment Base and Segment Values. See Appendix D for examples of the Investment Base adjustment. | |
The Return of Purchase Payment death benefit will be reduced proportionally based on the percentage of Contract Value that is withdrawn. | |
We offer an optional automated partial surrender transfer program (availability varies by state. See Appendix A: State Variations). If You have elected automated partial surrenders and the optional transfer program, the Interim Account will be used to hold amounts for the automated partial surrenders. You may cancel this program at any time. If you cancel this program, any Contract Value in the Interim Account will remain in that account until the next Contract Anniversary when funds will be allocated based on Your transfer or rebalancing instructions (or to the Fixed Account if no instructions are received). We reserve the right to no longer offer this automated partial surrender transfer program at any time. See “Surrenders - Optional Automated Partial Surrender Transfer Program” for additional information. |
Surrender Charges | Surrenders may be subject to charges and income taxes (including a 10% IRS penalty that may apply if You surrender prior to You reaching age 59½) and may have other tax consequences. The amount of the Surrender Charge, if any, will depend on the Contract Year during which the surrender is taken. At the time of a partial surrender, if the Contract has a loss (i.e. Contract Value is less than purchase payments not previously surrendered), the Surrender Charge will be greater, and therefore the amount of Contract Value that needs to be surrendered is greater, than if the Contract has a gain. |
The schedules below set forth the Surrender Charges under the Contract. | |
You select either a 6-year or 3-year Surrender Charge schedule at the time of application. |
Six-year schedule | Three-year schedule | ||
Contract Year* | Surrender Charge percentage applied to purchase payments surrendered | Contract Year* | Surrender Charge percentage applied to purchase payments surrendered |
1 | 8% | 1 | 8% |
2 | 7 | 2 | 7 |
3 | 6 | 3 | 6 |
4 | 5 | 4+ | 0 |
5 | 4 | ||
6 | 3 | ||
7+ | 0 |
* | According to Our current administrative practice, for the purpose of Surrender Charge calculation, We consider that the year is completed one day prior to the Contract Anniversary. |
Death Benefit | If You die before the Annuitization Start Date, We will pay the death benefit to Your beneficiary. |
If You are age 80 or younger on the date We issue the Contract or the date of the most recent covered life change, the beneficiary receives the greater of: | |
• The Contract Value; or | |
• The Return of Purchase Payment (ROPP) value. See “Death Benefit - The Return of Purchase Payment (ROPP)” | |
If You are age 81 or older on the date We issue the Contract or the date of the most recent covered life change, the beneficiary receives the Contract Value. | |
Annuitizing Your Contract | You can apply Your Contract Value to any Annuity Payment plan on the Annuitization Start Date. You may choose from a variety of plans that can help meet Your retirement or other income needs. The payment schedule must meet IRS requirements. All Annuity Payments are made on a fixed basis. See the section titled “Annuity Payment Period – Annuity Payment Plans” for additional information. |
Termination of the Contract | The Contract will be terminated under the following conditions: |
• After the death benefit is paid, the Contract will terminate. | |
• Reduction of the Contract Value to zero will terminate the Contract. | |
• Your Written Request for a full surrender will terminate the Contract. |
• | Floor: You are responsible for all losses up to the Floor. If the loss exceeds the Floor, Your losses are limited to the Floor. For example, if the Index rate of return = -30% and the Floor = -10%, your loss will be -10%. |
• | Buffer: You are responsible for all losses in excess of the Buffer. If the loss does not exceed the Buffer (i.e. the Index rate of return is between zero and the Buffer), You will not have a loss. For example, if the Index rate of return = -30% and the Buffer = -25%, your loss will be -5%. |
• | Trigger: You are responsible for the full loss if the Index rate of return is negative and the loss exceeds the Trigger. If the loss does not exceed the Trigger (i.e. the Index rate of return is between zero and the Trigger), You will not have a loss. For example, if the Index rate of return = -30% and the Trigger = -25%, your loss will be -30%. |
Protection Option | Maximum Loss * |
-10% Floor | 10% |
-10% Buffer | 90% |
-15% Buffer | 85% |
-20% Buffer | 80% |
-25% Buffer | 75% |
-25% Trigger | 100% |
-35% Trigger | 100% |
* | If the index loses 100% of its value during the term. |
• | S&P 500® Index. The S&P 500 index measures the performance of the large-cap segment of the market. |
• | S&P 500 ESG Index. The S&P 500 ESG Index measures the performance of securities meeting sustainability criteria based on environmental, social and governance data, while maintaining similar overall industry group weights as the S&P 500 Index. |
• | Russell 2000® Index. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. |
• | Nasdaq-100® Index. The Nasdaq-100 Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization. |
• | MSCI EAFE Index. The MSCI Europe, Australasia, Far East (EAFE) Index is a capitalization-weighted index that tracks the performance of common stocks in 21 developed market countries within Europe, Australasia and the Far East. |
• | MSCI Emerging Markets Index. The MSCI Emerging Markets Index captures large- and mid-cap representation across 26 Emerging Markets (EM) countries. |
• | iShares U.S. Real Estate ETF. The iShares U.S. Real Estate ETF seeks to track the investment results of an index composed of U.S. equities in the real estate sector. The Fund seeks to track the investment results of the Dow Jones U.S. Real Estate Capped Index (the “Underlying Index”), which measures the performance of the real estate sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC (the “Index Provider” or “SPDJI”). The Underlying Index may include large-, mid- or small capitalization companies. |
• | Securities of a certain sector of the market may not perform as well as those in others or the market as a whole. |
• | The securities comprising the Indexes are subject to investment risks driven by market volatility and other economic conditions; as such, the performance of the Indexes may fluctuate, sometimes rapidly, either positively or negatively. Past performance does not guarantee future results. |
• | In general, large-capitalization companies may be unable to respond quickly to new competitive challenges and may not be able to attain the high growth rate of successful smaller companies. (S&P 500, S&P 500 ESG, Nasdaq-100, MSCI EAFE and MSCI Emerging Markets indexes and iShares U.S. Real Estate ETF). |
• | Generally, the securities of small- and mid-capitalization companies may be more volatile and may involve more risk than the securities of larger companies. Investments in small - and mid-cap companies involve risks, including volatility, that are greater than investments in larger, more established companies. Small– and mid-capitalization companies are more likely to fail than larger companies (Russell 2000, MSCI EAFE, MSCI Emerging Markets indexes and iShares U.S. Real Estate ETF). |
• | Securities issued by non-U.S. companies are subject to risks, including political, economic, market, social and others within a particular country, as well as to currency exchange rate risks and currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers (MSCI EAFE and MSCI Emerging Markets indexes). |
• | Emerging markets can be riskier than investing in well-established foreign markets (MSCI Emerging Markets Index). |
• | The adherence to environmental, social and governance (“ESG”) standards and any subjective analyses and decisions to include or exclude large-capitalization companies in an ESG index may affect index performance. An index that incorporates ESG standards may underperform Indexes that do not take ESG factors into consideration (S&P 500 ESG Index). |
• | There are risks associated with the US real estate sector. It is possible that the iShares U.S. Real Estate ETF may not fully replicate or may, in certain circumstances, diverge significantly from the performance of the underlying index. Your Segment return is linked to the performance of the iShares U.S. Real Estate ETF and not the underlying index (iShares U.S. Real Estate ETF). |
• | The Segment Value that is locked in is determined by Us as outlined in the Segment Value section; |
• | While the elective lock will prevent You from experiencing any future negative performance, You will no longer benefit from any potential future positive performance for the remainder of the Segment; |
• | You will not avoid any negative performance that has occurred during the Segment prior to the exercise of the elective lock and the Buffer, Floor, or Trigger will not be applied on the Segment Maturity Date; and |
• | The elective lock will be applied as of the end of the Business Day on which We receive Your request. Your locked in Segment Value will not be known at the time You submit Your request. |
• | the corruption or destruction of data; |
• | theft, misuse or dissemination of data to the public, including Your information We hold; and |
• | denial of service attacks on our website or other forms of attacks on our systems and the software and hardware We use to run them. |
• | Individual Retirement Annuities (IRAs) including inherited IRAs under Section 408(b) of the Code |
• | Roth IRAs including inherited Roth IRAs under Section 408A of the Code |
• | SIMPLE IRAs under Section 408(p) of the Code |
• | Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code |
• | Custodial and investment only accounts maintained for qualified plans under Section 401(a) of the Code, including investment only pooled defined benefit plans |
• | Tax-Sheltered Annuities (TSAs) under section 403(b) of the Code |
– | you are at least age 59½; |
– | you are disabled as defined in the Code; |
– | you severed employment with the employer who purchased the contract; |
– | the distribution is because of your death; |
– | the distribution is due to plan termination; or |
– | you are a qualifying military reservist. |
• | Track individual participants and their portion of the plan. |
• | Perform or provide any plan recordkeeping services with respect to the qualified plan. |
• | The annuitant’s age will be used for any annuity provision or benefit. |
• | Changing the annuitant is not allowed even if the selected person is no longer associated with the plan. |
• | If the annuitant dies, the death benefit is payable, and any benefits will be paid to the plan. |
• | The Annuitization Start Date (ASD), is the date annuity payments are scheduled to begin based on the annuitant’s life. The ASD is the later of the annuitant’s 95th birthday or the contract’s 10-year anniversary. Currently, You can change the ASD up to a maximum age of 105. |
• | You will receive a standard RMD notification when the annuitant reaches age 72. It is the responsibility of the plan administrator to determine the amount, timing and source of RMDs for each participant in accordance with applicable laws and plan documents. |
• | Any RMD distributions will follow our standard processing rules for an individual. Surrender charges may apply if you withdraw more than the RMD calculated for this annuity contract based on the annuitant’s age. |
Six-year schedule | Three-year schedule | ||
Contract Year* | Surrender Charge percentage applied to purchase payments surrendered | Contract Year* | Surrender Charge percentage applied to purchase payments surrendered |
1 | 8% | 1 | 8% |
2 | 7 | 2 | 7 |
3 | 6 | 3 | 6 |
4 | 5 | 4+ | 0 |
5 | 4 | ||
6 | 3 | ||
7+ | 0 |
• | if there are joint Owners, We will pay the surviving Owner(s), otherwise; |
• | if the Owner is a non-natural person or revocable trust, We will pay the Owner, otherwise; |
• | to Your spouse, if living; |
• | if no spouse is living, to Your lawful children per stirpes; |
• | if You have no spouse or direct descendants, to Your parents equally or the survivor, if living, otherwise; |
• | to Your estate. |
• | to the recipient’s spouse, if living; |
• | if no spouse is living, to the recipient's lawful children per stirpes; |
• | if the recipient has no spouse or direct descendants, to the recipient's parents equally or the survivor, if living, otherwise; |
• | to the recipient's estate. |
through age 85 | $1,000,000 |
for ages 86 to 90 | $100,000 |
age 91 or older | $0 |
Through attained age 85 | $1,000,000 |
for attained ages 86 to 90 | $100,000 |
Attained age 91 or older | $100,000 |
* | These limits apply in total to all RiverSource Life annuities You own unless a higher amount applies to Your Contract. We reserve the right to waive or increase the maximum limit. For qualified annuities, the Code’s limits on annual contributions also apply. Additional purchase payments for inherited IRA contracts cannot be made unless the payment is IRA money inherited from the same decedent. |
70100 Ameriprise Financial Center
Minneapolis, MN 55474
• | Fixed Account, and |
• | Indexed Accounts |
Category | Durations | Protection Options | Number of Indexed Accounts |
Standard | 1 year | Buffers: -10%, -15%, and -20% Floor: -10% | 9 with Buffers 3 with Floors |
2 years | Buffer: -10% | 7 | |
3 years | Buffers: -10% and -15% | 6 | |
6 years | Buffers: -10%, -15% and -25% | 9 | |
Contingent Yield | 1 year | Buffers: -10%, -15%, and -20% Triggers: -25% and -35% | 6 with Buffers 4 with Triggers |
Annual Lock | 3 and 6 years | Buffer: -10% | 6 |
Annual Fee | 1 and 3 years | Buffer: -10% | 6 |
Enhanced Upside Participation (above 100%) | 1, 3, and 6 years | Buffer: -10% | 6 |
Min. Cap | Min. Upside Participation Rate | Min Contingent Yield | Max. Annual Fee | |
Standard Indexed Accounts | ||||
iShares U.S. Real Estate ETF 1-year with -10% Buffer | 2.00% | 100% | N/A | N/A |
iShares U.S. Real Estate ETF 2-year with -10% Buffer | 4.00% | 100% | N/A | N/A |
MSCI EAFE 1-year with -10% Buffer | 2.00% | 100% | N/A | N/A |
MSCI EAFE 2-year with -10% Buffer | 4.00% | 100% | N/A | N/A |
MSCI EAFE 3-year with -10% Buffer | 6.00% | 100% | N/A | N/A |
MSCI EAFE 3-year with -15% Buffer | 6.00% | 100% | N/A | N/A |
MSCI EAFE 6-year with -10% Buffer | 8.00% | 100% | N/A | N/A |
MSCI EAFE 6-year with -15% Buffer | 8.00% | 100% | N/A | N/A |
MSCI EAFE 6-year with -25% Buffer | 8.00% | 100% | N/A | N/A |
MSCI Emerging Markets 1-year with -10% Buffer | 2.00% | 100% | N/A | N/A |
MSCI Emerging Markets 2-year with -10% Buffer | 4.00% | 100% | N/A | N/A |
Nasdaq 100 1-year with -10% Buffer | 2.00% | 100% | N/A | N/A |
Nasdaq 100 2-year with -10% Buffer | 4.00% | 100% | N/A | N/A |
Russell 2000 1-year with -10% Buffer | 2.00% | 100% | N/A | N/A |
Russell 2000 2-year with -10% Buffer | 4.00% | 100% | N/A | N/A |
Russell 2000 3-year with -10% Buffer | 6.00% | 100% | N/A | N/A |
Russell 2000 3-year with -15% Buffer | 6.00% | 100% | N/A | N/A |
Min. Cap | Min. Upside Participation Rate | Min Contingent Yield | Max. Annual Fee | |
Russell 2000 6-year with -10% Buffer | 8.00% | 100% | N/A | N/A |
Russell 2000 6-year with -15% Buffer | 8.00% | 100% | N/A | N/A |
Russell 2000 6-year with -25% Buffer | 8.00% | 100% | N/A | N/A |
S&P 500 1-year with -10% Buffer | 2.00% | 100% | N/A | N/A |
S&P 500 1-year with -15% Buffer | 2.00% | 100% | N/A | N/A |
S&P 500 1-year with -20% Buffer | 2.00% | 100% | N/A | N/A |
S&P 500 2-year with -10% Buffer | 4.00% | 100% | N/A | N/A |
S&P 500 3-year with -10% Buffer | 6.00% | 100% | N/A | N/A |
S&P 500 3-year with -15% Buffer | 6.00% | 100% | N/A | N/A |
S&P 500 6-year with -10% Buffer | 8.00% | 100% | N/A | N/A |
S&P 500 6-year with -15% Buffer | 8.00% | 100% | N/A | N/A |
S&P 500 6-year with -25% Buffer | 8.00% | 100% | N/A | N/A |
S&P 500 ESG 1-year with -10% Buffer | 2.00% | 100% | N/A | N/A |
S&P 500 ESG 2-year with -10% Buffer | 4.00% | 100% | N/A | N/A |
MSCI EAFE 1-year with -10% Floor | 2.00% | 100% | N/A | N/A |
S&P 500 1-year with -10% Floor | 2.00% | 100% | N/A | N/A |
S&P 500 ESG 1-year with -10% Floor | 2.00% | 100% | N/A | N/A |
Contingent Yield Indexed Accounts*** | ||||
S&P 500 1-year with Contingent Yield and -10% Buffer | N/A | N/A | 1.00% | N/A |
S&P 500 1-year with Contingent Yield and -15% Buffer | N/A | N/A | 1.00% | N/A |
S&P 500 1-year with Contingent Yield and -20% Buffer | N/A | N/A | 1.00% | N/A |
S&P 500/Russell 2000 (Lesser of) 1-year with Contingent Yield and -10% Buffer | N/A | N/A | 1.00% | N/A |
S&P 500/Russell 2000 (Lesser of) 1-year with Contingent Yield and -15% Buffer | N/A | N/A | 1.00% | N/A |
S&P 500/Russell 2000 (Lesser of) 1-year with Contingent Yield and -20% Buffer | N/A | N/A | 1.00% | N/A |
S&P 500 1-year with Contingent Yield and -25% Trigger | N/A | N/A | 1.00% | N/A |
S&P 500 1-year with Contingent Yield and -35% Trigger | N/A | N/A | 1.00% | N/A |
S&P 500/Russell 2000 (Lesser of) 1-year with Contingent Yield and -25% Trigger | N/A | N/A | 1.00% | N/A |
S&P 500/Russell 2000 (Lesser of) 1-year with Contingent Yield and -35% Trigger | N/A | N/A | 1.00% | N/A |
Annual Lock Indexed Accounts | ||||
MSCI EAFE 3-year with Annual Lock and -10% Buffer | 2.00% | N/A* | N/A | N/A |
MSCI EAFE 6-year with Annual Lock and -10% Buffer | 2.00% | N/A* | N/A | N/A |
Russell 2000 3-year with Annual Lock and -10% Buffer | 2.00% | N/A* | N/A | N/A |
Russell 2000 6-year with Annual Lock and -10% Buffer | 2.00% | N/A* | N/A | N/A |
S&P 500 3-year with Annual Lock and -10% Buffer | 2.00% | N/A* | N/A | N/A |
Annual Fee Indexed Accounts | ||||
MSCI EAFE 1-year with Annual Fee and -10% Buffer | 2.00% | N/A* | N/A | 8.00%** |
MSCI EAFE 3-year with Annual Fee and -15% Buffer | 6.00% | N/A* | N/A | 8.00%** |
Russell 2000 1-year with Annual Fee and -10% Buffer | 2.00% | N/A* | N/A | 8.00%** |
Russell 2000 3-year with Annual Fee and -15% Buffer | 6.00% | N/A* | N/A | 8.00%** |
S&P 500 1-year with Annual Fee and -10% Buffer | 2.00% | N/A* | N/A | 8.00%** |
S&P 500 3-year with Annual Fee and -15% Buffer | 6.00% | N/A* | N/A | 8.00%** |
Enhanced Upside Participation Indexed Accounts | ||||
MSCI EAFE 1-year with Enhanced Upside Participation and -10% Buffer | 2.00% | 100% | N/A | N/A |
MSCI EAFE 3-year with Enhanced Upside Participation and -10% Buffer | 6.00% | 100% | N/A | N/A |
MSCI EAFE 6-year with Enhanced Upside Participation and -10% Buffer | 8.00% | 100% | N/A | N/A |
S&P 500 1-year with Enhanced Upside Participation and -10% Buffer | 2.00% | 100% | N/A | N/A |
S&P 500 3-year with Enhanced Upside Participation and -10% Buffer | 6.00% | 100% | N/A | N/A |
S&P 500 6-year with Enhanced Upside Participation and -10% Buffer | 8.00% | 100% | N/A | N/A |
* | Upside Participation Rate does not vary for these Indexed Accounts. It is 100% for all years so there is no minimum Upside Participation Rate. |
** | The Index rate of return (whether positive or negative) is reduced by the Annual Fee multiplied by the number of years in the Segment. |
*** | Indexed Accounts available as of Aug. 16, 2021. May not be available in all states. See Appendix A: State variations”. |
• | the value in the Fixed Account; and |
• | the value in the Interim Account; and |
• | the value in the Indexed Account(s). |
• | the amount of the initial purchase payment allocated to the Fixed Account; plus |
• | any amounts transferred to the Fixed Account; plus |
• | interest credited; less |
• | any amounts transferred from the Fixed Account; less |
• | any amounts deducted from the Fixed Account for surrenders, including any applicable Surrender Charges. |
• | any additional purchase payments; plus |
• | interest credited; plus |
• | any amounts added to the Interim Account after a "covered life change" for a spouse who continues the Contract; plus |
• | any amounts transferred automatically to the Interim Account for the automated partial surrender transfer program; less |
• | any amounts transferred from the Interim Account; less |
• | any amounts deducted from the Interim Account for surrenders, including any applicable Surrender Charges. |
• | Upside Participation Rate; |
• | Cap; |
• | Contingent Yield; |
• | Either Buffer, Floor or Trigger; and |
• | Annual fee. |
• | the Cap (if applicable) for the Segment; or |
• | the Index rate of return multiplied by the Upside Participation Rate for the Segment. |
• | the Floor for the Segment; or |
• | the Index rate of return. |
• | Floor = - 10% |
• | Cap = 8% |
• | Upside Participation rate = 100% |
• | Index Value on the Segment start date = 1000 |
• | Investment Base = $100,000 |
Scenario | Index Value on Segment Maturity Date | Index Rate of Return | Segment Rate of Return | Segment Value on Segment Maturity Date |
1 | 1200 | (1200/1000) - 1 = 20.00% | 8.00% | $108,000 |
2 | 1035 | (1035/1000) - 1 = 3.50% | 3.50% | $103,500 |
3 | 950 | (950/1000) - 1 = -5.00% | -5.00% | $ 95,000 |
4 | 850 | (850/1000) - 1 = -15.00% | -10.00% | $ 90,000 |
• | the Cap (if applicable) for the Segment; or |
• | the Index rate of return multiplied by the Upside Participation Rate for the Segment. |
• | Buffer = - 10% |
• | Cap = 8% |
• | Upside Participation rate = 200% |
• | Index Value on the Segment Start Date = 1000 |
• | Investment Base = $100,000 |
Scenario | Index Value on Segment Maturity Date | Index Rate of Return | Segment Rate of Return | Segment Value on Segment Maturity Date |
1 | 1200 | (1200/1000) - 1 = 20.00% | 8.00% | $108,000 |
2 | 1030 | (1030/1000) - 1 = 3.00% | 6.00% | $106,000 |
3 | 950 | (950/1000) - 1 = -5.00% | 0.00% | $100,000 |
4 | 850 | (850/1000) - 1 = -15.00% | -5.00% | $ 95,000 |
• | the Cap for the Segment minus the "total fee"; or |
• | the Index Rate of Return multiplied by the Upside Participation Rate for the Segment minus the "total fee". |
• | Duration = 3 years |
• | Buffer = -15% |
• | Cap = No Cap |
• | Annual fee = 0.80% |
• | Index Value on the Segment start date = 1000 |
• | Investment Base = $100,000 |
Scenario | Index Value on Segment Maturity Date | Index Rate of Return | Segment Rate of Return | Segment Value on Segment Maturity Date |
1 | 1200 | (1200/1000) - 1 = 20.00% | 17.60% | $117,600 |
2 | 1020 | (1020/1000) - 1 = 2.00% | -0.40% | $ 99,600 |
3 | 950 | (950/1000) - 1 = -5.00% | -2.40% | $ 97,600 |
4 | 800 | (800/1000) - 1 = -20.00% | -7.40% | $ 92,600 |
• | the Cap (if applicable) for the Segment; or |
• | the Index rate of return. |
• | Duration = 6 years |
• | Buffer = -10% |
• | Cap = 11% |
• | Index Value on the Segment start date = 1000 |
• | Investment Base = $100,000 |
Year | Index Value on Prior Anniversary | Index Value on Current Anniversary | Index Rate of Return | Annual Lock Return | Annual Lock Value |
1 | 1000.00 | 1200.00 | (1200.00/1000.00) - 1 = 20.00% | 11.00% | $111,000.00 |
2 | 1200.00 | 1260.00 | (1260.00/1200.00) -1 = 5.00% | 5.00% | $116,550.00 |
3 | 1260.00 | 1197.00 | (1197.00/1260.00) - 1 = -5.00% | 0.00% | $116,550.00 |
4 | 1197.00 | 957.60 | (957.60/1197.00) - 1 = -20.00% | -10.00% | $104,895.00 |
5 | 957.60 | 1072.51 | (1072.51/957.60) - 1 = 12.00% | 11.00% | $116,433.45 |
6 | 1072.51 | 1147.59 | (1147.59/1072.51) - 1 = 7.00% | 7.00% | $124,583.79 |
• | Buffer = -10% |
• | Contingent Yield = 5% |
• | Index Value on the Segment start date = 1000 |
• | Investment Base = $100,000 |
Scenario | Index Value on Segment Maturity Date | Index Rate of Return | Segment Rate of Return | Segment Value on Segment Maturity Date |
1 | 1200 | (1200/1000) - 1 = 20.00% | 5.00% | $105,000 |
2 | 1030 | (1030/1000) - 1 = 3.00% | 5.00% | $105,000 |
3 | 950 | (950/1000) - 1 = -5.00% | 5.00% | $105,000 |
4 | 850 | (850/1000) - 1 = -15.00% | -5.00% | $ 95,000 |
Scenario | Index #1 Value on Segment Maturity Date | Index #1 Rate of Return | Index #2 Value on Segment Maturity Date | Index #2 Rate of Return | Segment Rate of Return | Segment Value on Segment Maturity Date |
1 | 1200 | (1200/1000) - 1 = 20.00% | 2200 | (2200/2000) - 1 = 10.00% | 6.00% | $106,000 |
2 | 1030 | (1030/1000) - 1 = 3.00% | 2030 | (2030/1000) - 1 = 1.50% | 6.00% | $106,000 |
3 | 950 | (950/1000) - 1 = -5.00% | 1950 | (1950/2000) - 1 = -2.50% | 6.00% | $106,000 |
4 | 850 | (850/1000) - 1 = -15.00% | 2050 | (2050/2000) - 1 = 2.50% | -5.00% | $ 95,000 |
• | Trigger = -25% |
• | Contingent Yield = 6% |
• | Index Value on the Segment start date = 1000 |
• | Investment Base = $100,000 |
Scenario | Index Value on Segment Maturity Date | Index Rate of Return | Segment Rate of Return | Segment Value on Segment Maturity Date |
1 | 1200 | (1200/1000) - 1 = 20.00% | 6.00% | $106,000 |
2 | 1030 | (1030/1000) - 1 = 3.00% | 6.00% | $106,000 |
3 | 950 | (950/1000) - 1 = -5.00% | 6.00% | $106,000 |
4 | 700 | (700/1000) - 1 = -30.00% | -30.00% | $ 70,000 |
• | interest rates for the Fixed and Interim Accounts; and |
• | Caps, Contingent Yields, Upside Participation Rates and Annual Fees for each Indexed Account if applicable. |
1. | If You are enrolled in the Optional Automated Partial Surrender Transfer Program, We will transfer up to the annual total of the automated partial surrenders to the Interim Account (see "Surrenders - Optional Automated Partial Surrender Transfer Program"). Any transfer instructions or automatic rebalancing will apply to any remaining Contract Value in the Interim Account, Fixed Account, and any Segments that mature on the next Contract Anniversary; |
2. | The Contract Value (excluding any amounts in the Interim Account for the automated partial surrender transfer program) will be transferred according to instructions received during the Transfer Window as described above. |
3. | If no transfer instructions are received and You have elected automatic rebalancing, We will make automatic transfers using Your current election instructions and according to any procedures that are currently in effect. You may change Your election instructions at any time. |
4. | If 2 and 3 do not apply the following will automatically occur: |
• | any Contract Value in the Interim Account that exceeds the annual total of any automated partial surrenders will be transferred to the Fixed Account; and |
• | any Contract Value in a Segment that is maturing (excluding any amounts transferred for the automated partial surrender transfer program) will renew into a new Segment for the same Indexed Account. If the Indexed Account is no longer available, the Contract Value in that Segment will need to be transferred to a different Indexed Account or the Fixed Account. If no instructions are received, the Segment Value will be transferred to |
the Fixed Account on the Contract Anniversary. We will send You written notification showing the available Indexed Accounts at least 14 days before the Contract Anniversary if You have Contract Value that can be transferred on that Contract Anniversary. |
a × b | where: |
c |
a | = | the amount of the partial surrender deducted from the Segment |
b | = | the Investment Base for the Segment on the date of (but prior to) the surrender |
c | = | the value in the Segment on the date of (but prior to) the surrender |
• | payable to You; |
• | mailed to address of record. |
• | request that payment be wired to your bank; |
• | pre-authorization required. |
• | Contract earnings, or |
• | 10% of all purchase payments applied prior to Your surrender request, less any amounts surrendered prior to Your surrender request that represent the Total Free Amount. |
• | Contract earnings, or |
• | 10% of Your prior Contract Anniversary Contract Value, less any prior surrenders taken in the current Contract Year. |
Number of Completed Years Since Annuitization | Surrender Charge percentage |
0 | Not applicable* |
1 | 5% |
2 | 4 |
3 | 3 |
4 | 2 |
5 | 1 |
6 and thereafter | 0 |
• | surrenders that represent the Total Free Amount for that year; or |
• | death benefit payments made in the event of Your death; or |
• | after Your spouse has elected to continue the Contract; or |
• | amounts applied to an Annuity Payment plan; or |
• | for Tax Qualified Contracts other than Inherited IRAs, amounts surrendered to meet applicable required minimum distributions under the Code to the extent they exceed surrenders that represent Total Free Amounts (amounts surrendered under this waiver provision are limited to applicable required minimum distributions for this Contract only and to one time per Contract Year unless We agree otherwise). For Inherited IRAs, this waiver provision only applies to lifetime required minimum distributions (and not a 5-year distribution); or |
• | surrenders made as a result of one of the “Contingent events” described below to the extent permitted by state law-exercise of the Waiver of Surrender Charges upon Hospital or Nursing Home Confinement provision described below. |
• | Surrenders You make if You are confined to a hospital or nursing home and have been for the prior 60 days or confinement began within 30 days following a prior 60-day confinement period. Such confinement must begin after the Contract Date. Your Contract will include this provision when You are under age 76 at Contract issue. You must provide us with a letter containing proof satisfactory to Us of the confinement as of the date You request the surrender. We must receive Your surrender request no later than 91 days after Your release from the hospital or nursing home. The amount surrendered must be paid directly to You. |
• | Surrenders You make if You are diagnosed in the second or later Contract Years with a medical condition that with reasonable medical certainty will result in death within 12 months or less from the date of the diagnosis. You must provide Us with a licensed physician's statement containing the terminal illness diagnosis, the expected date of death and the date the terminal illness was initially diagnosed. The amount surrendered must be paid directly to You. |
Minimum amount | |
Surrenders: | $250* |
Maximum amount | |
Surrenders: | Contract Value |
* | The contract value after a partial surrender must be at least $500. |
• | Automated partial surrenders may result in income taxes and penalties on all or part of the amount surrendered. |
• | Any automated partial surrender that exceeds the amount in the Interim Account and the Fixed Account will be deducted pro-rata from all open Segments using the current Segment Value. You do not have an option to request from which account to surrender. |
Minimum amount: $50 | (we may waive the minimum amount for certain automated partial surrender options) |
Maximum amount: None |
Minimum amount | |
Surrenders: | $250 |
Maximum amount | |
Surrenders: | $100,000 |
• | the Contract Value; |
• | the Return of Purchase Payments (ROPP) Value. |
• | Additional purchase payments will be added to the ROPP value. |
• | Partial surrenders will result in adjustments for partial surrenders (see below) subtracted from the ROPP value. Partial surrenders may reduce the ROPP value by more than the amount of the partial surrender. |
• | After a covered life change for a spouse who continues the Contract, the ROPP value is reset to the Contract Value on the date of continuation after any increases to the Contract Value due to the death benefit that would otherwise have been paid. |
• | After a covered life change other than for a spouse who continues the Contract: if the prior Owner was eligible for the ROPP, the ROPP value is reset on the Business Day We receive Your Written Request for the covered life change to the lesser of A or B where: |
Adjusted partial surrenders | = | a × b |
c |
a | = | the amount Your Contract Value is reduced by the partial surrender. |
b | = | the ROPP value on the date of (but prior to) the partial surrender. |
c | = | the Contract Value on the date of (but prior to) the partial surrender. |
• | You purchase the contract with a payment of $100,000: and |
• | During the second Contract Year You take a $5,000 (including Surrender Charge) partial surrender. Contract Value will be reduced by the dollar amount of the partial surrender. |
#1 Down Market Example: | |||||
Contract Value (before the partial surrender): | $ 85,000.00 | ||||
Purchase payments minus adjusted partial surrenders: |
Total purchase payments: | $100,000.00 | ||||
minus adjusted partial surrenders, calculated as: | |||||
$5,000 × $100,000 | = | –5,882.35 | |||
$85,000 | |||||
for a ROPP death benefit of: | $94,117.65 | ||||
The Death Benefit is greater of Contract Value (after the partial surrender) and ROPP: | $94,117.65 | ||||
#2 Up Market Example: | |||||
Contract Value (before the partial surrender): | $110,000.00 | ||||
Purchase payments minus adjusted partial surrenders: | |||||
Total purchase payments: | $100,000.00 | ||||
minus adjusted partial surrenders, calculated as: | |||||
$5,000 × $100,000 | = | –4,545.45 | |||
$110,000 | |||||
for a ROPP death benefit of: | $ 95,454.54 | ||||
The Death Benefit is greater of Contract Value (after the partial surrender) and ROPP: | $105,000.00 |
• | the beneficiary elects in writing, and payments begin, no later than one year after Your death, or other date as permitted by the IRS; and |
• | the payment period does not extend beyond the beneficiary’s life or life expectancy. |
• | Spouse beneficiary: If You have not elected an annuity payment plan, and if Your spouse is the sole beneficiary, Your spouse may either elect to treat the Contract as his/her own, so long as he or she is eligible to do so, or elect an annuity payment plan or another plan agreed to by Us. If Your spouse elects a payment option, the payments must begin no later than the year in which You would have reached age 72. If You attained age 72 at the time of death, payments must begin no later than Dec. 31 of the year following the year of Your death. |
Your spouse may elect to assume ownership of the Contract with the Contract Value equal to the death benefit that would otherwise have been paid. To do this Your spouse must, on the date our death claim requirements are fulfilled, give Us written instructions to continue the Contract as Owner. | |
If You purchased this Contract as an inherited IRA and Your spouse is the sole beneficiary, he or she can elect to continue this Contract as an inherited IRA. Your spouse must follow the schedule of minimum surrenders established based on Your life expectancy. | |
If You purchased this Contract as an inherited IRA and Your spouse is not the sole beneficiary, he or she can elect an alternative payment plan for his or her share of the death benefit. No additional purchase payments will be accepted. The death benefit payable on the death of the spouse beneficiary is the Contract Value. |
• | Non-spouse beneficiary: If you have not elected an annuity payout plan, the beneficiary is required to withdraw his or her entire inherited interest within 10 years of the date of death of the owner unless they qualify as an “eligible designated beneficiary.” Eligible designated beneficiaries may continue to take proceeds out over their life expectancy. Eligible designated beneficiaries include: |
• | the surviving spouse; |
• | a lawful child of the owner under the age of majority (remaining amount must be withdrawn within 10 years, once the child reaches the age of majority); |
• | disabled within the meaning of Code section 72(m)(7); |
• | chronically ill within the meaning of Code section 7702B(c)(2); |
• | any other person who is not more than 10 years younger than the owner. |
• | the beneficiary elects in writing, and payouts begin, no later than one year following the year of your death; and |
• | the payout period does not extend beyond the beneficiary’s life or life expectancy for an eligible designated beneficiary. (Payout plans are limited if the beneficiary is not an eligible designated beneficiary.) |
• | Annuity payment plan: If You elect an annuity payment plan which guarantees payments to a beneficiary after death, the payments to Your beneficiary will continue pursuant to the annuity payment plan You elect, subject to adjustment to comply with the IRS rules and regulations. |
1. | information sufficient to determine Our liability and the appropriate payee legally entitled to the proceeds; and |
2. | if proceeds depend on the action of parties other than Us, the date that legal impediments to payment are resolved and sufficient evidence is provided to Us. |
• | the Contract Anniversary on or after Your 95th birthday, or |
• | the 10th Contract Anniversary. |
• | Plan A: Life Income Non-Refund: We make monthly payments until the Annuitant's death. Payments end with the last payment before the Annuitant's death. We will not make any further payments. This means that if the Annuitant dies after We made only one monthly payment, We will not make any more payments. |
• | Plan B: Life Income with Guaranteed Period: We make monthly payments for a guaranteed payment period of five, ten, or 15 years that You elect. This election will determine the length of the payment period in the event if the Annuitant dies before the elected period expires. We calculate the guaranteed payment period from the Annuitization Start Date. If the Annuitant outlives the elected guaranteed payment period, We will continue to make payments until the Annuitant's death. |
• | Plan C: Life Income with Installment Refund: We make monthly payments until the Annuitant's death, with Our guarantee that payments will continue for some period of time. We will make payments for at least the number of months determined by dividing the amount applied under this option by the first monthly payment, whether or not the Annuitant is living. |
• | Plan D: Joint and Survivor Life Income Non-Refund: We make monthly payments while both the Annuitant and a joint Annuitant are living. If either Annuitant dies, we will continue to make monthly payments at the full amount until the death of the surviving Annuitant. Payments end with the death of the second Annuitant. |
• | in equal or substantially equal payments over a period not longer than Your life expectancy or over the joint life expectancy of You and Your designated beneficiary; or |
• | over a period certain not longer than Your life expectancy or over the life expectancy of You and Your designated beneficiary. |
• | because of Your death or in the event of nonnatural ownership, the death of the Annuitant; |
• | because You become disabled (as defined in the Code); |
• | if the distribution is part of a series of substantially equal periodic payments, made at least annually, over Your life or life expectancy (or joint lives or life expectancies of You and Your beneficiary); |
• | if it is allocable to an investment before Aug. 14, 1982; or |
• | if annuity payments are made under immediate annuities as defined by the Code. |
• | the payment is one in a series of substantially equal periodic payments, made at least annually, over Your life or life expectancy (or the joint lives or life expectancies of You and Your designated beneficiary) or over a specified period of 10 years or more; |
• | the payment is a RMD as defined under the Code; |
• | the payment is made on account of an eligible hardship; or |
• | the payment is a corrective distribution. |
• | because of Your death; |
• | because You become disabled (as defined in the Code); |
• | if the distribution is part of a series of substantially equal periodic payments made at least annually, over Your life or life expectancy (or joint lives or life expectancies of You and Your beneficiary); |
• | to pay certain medical or education expenses (IRAs only); or |
• | if the distribution is made from an inherited IRA. |
• | Only securities broker-dealers (“selling firms”) registered with the SEC and members of the FINRA may sell the Contract. |
• | The Contracts are continuously offered to the public through authorized selling firms. We and RiverSource Distributors have a sales agreement with the selling firm. The sales agreement authorizes the selling firm to offer the Contracts to the public. RiverSource Distributors pays the selling firm (or an affiliated insurance agency) for contracts its financial advisors sell. The selling firm may be required to return sales commissions under certain circumstances including but not limited to when Contracts are returned under the free look period. |
• | We may use compensation plans which vary by selling firm. These plans pay selling firms a commission that will not exceed 6.00% each time You make a purchase payment. We may also pay ongoing trail commissions of up to 1.00% of the Contract Value. We do not pay or withhold payment of commissions based on which investment options You select. |
• | In addition to commissions, We may, in order to promote sales of the Contracts, and as permitted by applicable laws and regulations, pay or provide selling firms with other promotional incentives in cash, credit or other compensation. We generally (but may not) offer these promotional incentives to all selling firms. The terms of such arrangements differ between selling firms. These promotional incentives may include but are not limited to: |
• | sponsorship of marketing, educational, due diligence and compliance meetings and conferences We or the selling firm may conduct for financial advisors, including subsidy of travel, meal, lodging, entertainment and other expenses related to these meetings; |
• | marketing support related to sales of the Contract including for example, the creation of marketing materials, advertising and newsletters; |
• | providing service to Contract Owners; and |
• | funding other events sponsored by a selling firm that may encourage the selling firm’s financial advisors to sell the Contract. |
• | revenues We receive from fees and expenses that You will pay when buying, owning and surrendering the Contract; |
• | revenues We receive from other contracts and policies We sell that are not securities and other businesses We conduct. |
• | give selling firms a heightened financial incentive to sell the Contract offered in this prospectus over another investment with lower compensation to the selling firm. |
• | cause selling firms to encourage their financial advisors to sell You the Contract offered in this prospectus instead of selling You other alternative investments that may result in lower compensation to the selling firm. |
• | cause selling firms to grant Us access to its financial advisors to promote sales of the Contract offered in this prospectus, while denying that access to other firms offering similar contracts or other alternative investments which may pay lower compensation to the selling firm. |
• | The selling firm pays its financial advisors. The selling firm decides the compensation and benefits it will pay its financial advisors. |
• | To inform Yourself of any potential conflicts of interest, ask Your financial advisor before You buy how the selling firm and its financial advisors are being compensated and the amount of the compensation that each will receive if You buy the Contract. |
State | Feature or Benefit | Variations or Availability |
Arizona | Purchase – Right to Examine and Cancel | If You are 65 years of age or older on the Contract date or Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 30 days from the date You received it. |
California | Purchase – Right to Examine and Cancel | If You are 60 years of age or older on the Contract date or Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 30 days from the date You received it. |
Nursing Home Waiver | The reference the “Nursing Home Waiver” provision is replaced with a reference to "Waiver of Surrender Charges for Qualified Long-Term Care Services". | |
Connecticut | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 10 days from the date You received it. |
Delaware | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. |
District of Columbia | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 10 days from the date You received it. If You cancel a non-IRA contract, upon such cancellation We will refund all purchase payments which You have paid less any payments We have made to You. |
State | Feature or Benefit | Variations or Availability |
Florida | Purchase – Right to Examine and Cancel | You may return the Contract within 21 days from the date You received it. If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 21 days from the date You received it. |
Surrender Charge | If the Owner on the Contract Date is age 65 or older on that date, the Surrender Charge applied to a full surrender or to any partial surrender is subject to a maximum of 10% of the amount surrendered. | |
Purchase – Maximum Total Purchase Payment | Maximum purchase payments cannot be determined as the total purchase payments made to all contracts issued to the owner. The following contract language is not applicable to contracts issued in Florida: In determining whether You have reached the maximum amount allowed under the Maximum Total Purchase Payments per Owner, We include payments made to all deferred annuity contracts We have issued where You are an Owner. We reserve the right to increase the maximums. | |
Investment Options – Fixed Account | Allocation to the Fixed Account may be limited to 20% of the Contract Value. | |
Georgia | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 10 days from the date You received it. |
Hawaii | Investment Options – Indexed Accounts | Contingent Yield Indexed Accounts not available. |
Surrenders – Optional Automated Partial Surrender Transfer Program | Automated Partial Surrender Transfer Program not available. | |
Idaho | Purchase – Right to Examine and Cancel | You may return the Contract within 20 days from the date You received it. If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. |
Illinois | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. |
Indiana | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. |
Iowa | Investment Options – Indexed Accounts | Contingent Yield Indexed Accounts not available. |
Surrenders – Optional Automated Partial Surrender Transfer Program | Automated Partial Surrender Transfer Program not available. | |
Kansas | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. |
State | Feature or Benefit | Variations or Availability |
Massachusetts | All contracts are issued on a unisex basis. | All contracts are issued on a unisex basis. |
Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. | |
Nursing Home Waiver | The nursing home waiver is not available in the state of Massachusetts. | |
Terminal Illness Waiver | The reference the “Terminal Illness Waiver” provision is replaced with the reference to “Waiver of surrender charges in the event of total and permanent disability". | |
Michigan | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 10 days from the date You received it. |
Missouri | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. If You cancel a non-IRA contract, upon such cancellation We will refund all purchase payments which You have paid less any payments We have made to You. |
Montana | All contracts are issued on a unisex basis. | All contracts are issued on a unisex basis. |
Death Benefit – Death Benefit if You Die Before the Annuitization Start date | The following interest on death claims provision has been added to the Contract: | |
Interest on death claims provision | Payment of the death benefit will be made within 60 Days from the date We receive due proof of death. If the payment is delayed more than 30 Days from the date We receive due proof of death, interest will be paid from 30th Day to the date of the payment at a rate of interest not less than required by Montana law. | |
North Dakota | Purchase – Right to Examine and Cancel | You may return the Contract within 20 days from the date You received it. If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. |
Death Benefit – Death Benefit if You Die Before the Annuitization Start date | The following interest on claims provision has been added to the Contract: | |
Interest on death claims provision | Interest will be paid on the death benefit from the date of death until the date of the lump sum payment or election of an Annuity Payment plan at a rate of interest not less than that required by law. |
State | Feature or Benefit | Variations or Availability |
New Jersey | Terminal Illness Diagnosis | The second bullet in the “Contingent Event” section is replaced with the following: Surrenders You make if You are diagnosed in with a medical condition that with reasonable medical certainty will result in death within 12 months or less from the date of the diagnosis. You must provide Us with a licensed physician’s statement containing the terminal illness diagnosis, the expected date of death and the date the terminal illness was initially diagnosed. The amount surrendered must be paid directly to You. |
Oklahoma | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. |
Pennsylvania | Purchase – Right to Examine and Cancel | If You cancel this contract, upon cancellation We will refund the greater of all purchase payments which You have paid less any payments We have made or the contract value as of the business day We receive the contract.If this contract is intended to replace an existing contract, Your right to examine this contract is 20 Days. If the existing contract was issued by Us, Your right to examine this contract is extended to 45 Days. |
Transfer of Contract Value | We reserve the right to limit transfers to the Fixed Account on a non-discriminatory basis with notification when the Fixed Account interest rate is equal to the Guaranteed Minimum Interest Rate. Currently, We are not limiting transfers to the Fixed Account. We will waive surrender charges if We decrease the percentage that can be transferred to the fixed account during the surrender charge period. | |
Indexed Accounts – Table listing currently available Indexed Accounts/ Min. Cap/ Min.Upside Participation Rate/Max Annual Fee | Annual Fee Indexed Accounts: The Max Annual Fee for the 1 year Indexed Accounts is 5% and 3 year Indexed Accounts is 2.5%. | |
Rhode Island | Purchase – Right to Examine and Cancel | You may return the Contract within 20 days from the date You received it. If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 30 days from the date You received it. |
Death Benefit – Death Benefit if You Die Before the Annuitization Start date | The following interest on death claims provision has been added to the Contract: | |
Interest on death claims provision. | Interest will be paid on the death benefit from the date of death until the date of the lump sum payment or election of an Annuity Payment plan at a rate of interest not less than that required by law. | |
Tennessee | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. |
State | Feature or Benefit | Variations or Availability |
Texas | Purchase – Right to Examine and Cancel | You may return the Contract within 20 days from the date You received it. If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 30 days from the date You received it. |
Terminal Illness Diagnosis provision. | The first sentence in the second bullet in the “Contingent Event” section is replaced with the following: Surrenders You make if You are diagnosed on or after the Contract Date with a medical condition that with reasonable medical certainty will result in death within 12 months or less from the date of the diagnosis. | |
Washington | Purchase – Right to Examine and Cancel | If Your Contract is a replacement of another insurance or annuity contract, You may return the Contract within 20 days from the date You received it. If You cancel a non-IRA contract, upon such cancellation We will refund all purchase payments which You have paid less any payments We have made to You. |
Terminal Illness Diagnosis | The first sentence in the second bullet in the “Contingent Event” section is replaced with the following: Surrenders You make if You are diagnosed in the second or later Contract Years with a medical condition that with reasonable medical certainty will result in death within 24 months or less from the date of the diagnosis. | |
Wyoming | Death Benefit – Death Benefit if You Die Before the Annuitization Start date | The following interest on death claims provision has been added to the Contract: |
Interest on death claims provision | Payment of the death benefit will be made within 45 Days from the date We receive due proof of death. Interest will be paid on the death benefit from the date of death until the date of the lump sum payment or election of an Annuity Payment plan at a rate of interest not less than that required by law. |
(A) | At-the-Money Call: This represents the market value of the potential to receive an amount equal to the percentage growth in the Index during the Segment. |
(B) | Out-of-the-Money Call: This represents the market value of the potential for gain in excess of the Cap (if applicable). |
(C) | At-the-Money Put: If the Segment has a floor, this represents the market value of the potential for losses that may occur in the Segment. This option is not used if the Segment has a Buffer. |
(D) | Out-of-the-Money Put: This represents the market value of the potential to receive an amount equal to the excess loss beyond the applicable Buffer, Floor or Trigger. |
(E) | Out-of-the-Money Binary Put: This represents the market value of the potential to receive a fixed amount whenever losses are beyond the applicable Buffer or Trigger. |
1 | where: |
(1 + R)M |
R | = | A reference rate representing current yields. It uses the Bloomberg Barclays U.S. Credit Index – Yield to Worst rate plus a Rate Adjustment Factor. |
M | = | The number of full and partial years remaining in Your Segment |
(Annual Fee) x (number of years in the Segment) | Where: |
(1 + r)M |
r | = | A risk-free interest rate based on the Segment Maturity Date |
M | = | The number of full and partial years remaining in Your Segment |
Example Number | #1 | #2 | #3 | #4 | #5 | #6 | #7 | #8 |
Segment Type | 1 Year Cap and Buffer | 3 Year Cap and Buffer | 6 Year Cap and Buffer | 6 Year Cap and Buffer | 1 Year Annual Fee | 3 Year Annual Lock | 1 Year Contingent Yield and Buffer | 1 Year Contingent Yield and Trigger |
Investment Base | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
Segment Duration (months) | 12 | 36 | 72 | 72 | 12 | 36 | 12 | 12 |
Months Since Segment Start Date | 3 | 18 | 12 | 69 | 6 | 3 | 3 | 6 |
Buffer or Trigger Percentage | -10% | -15% | -25% | -25% | -10% | -10% | -10% | -25% |
Cap or Contingent Yield | 11% | 30% | 100% | 100% | No Cap | 11% | 6% | 6% |
Upside Participation Rate | 100% | 100% | 100% | 100% | 100% | 100% | N/A | N/A |
Annual Fee (if applicable) | N/A | N/A | N/A | N/A | 1.50% | N/A | N/A | N/A |
Months Remaining in Segment | 9 | 18 | 60 | 3 | 6 | 33 | 9 | 6 |
Example Number | #1 | #2 | #3 | #4 | #5 | #6 | #7 | #8 | |
Segment Type | 1 Year Cap and Buffer | 3 Year Cap and Buffer | 6 Year Cap and Buffer | 6 Year Cap and Buffer | 1 Year Annual Fee | 3 Year Annual Lock | 1 Year Contingent Yield and Buffer | 1 Year Contingent Yield and Trigger | |
Hypothetical Value of Derivatives Excluding Transaction Costs | 5.17% | 9.98% | 16.57% | 11.00% | 11.80% | 6.08% | 4.05% | 5.77% | |
Less Estimated Transaction Costs | 0.15% | 0.30% | 1.00% | 0.05% | 0.10% | 0.55% | 0.75% | 0.50% | |
1. Hypothetical Value of Derivatives | 5.02% | 9.68% | 15.57% | 10.95% | 11.70% | 5.53% | 3.30% | 5.27% | |
2. Hypothetical Value of Fixed Assets | 99.57% | 98.63% | 85.00% | 99.55% | 98.39% | 98.48% | 99.61% | 98.72% | |
3. Present Value of Annual Fees | 0.00% | 0.00% | 0.00% | 0.00% | 1.48% | 0.00% | 0.00% | 0.00% | |
4. Proxy Value = #1 + #2 - #3 | 104.58% | 108.31% | 100.57% | 110.51% | 108.61% | 104.01% | 102.92% | 104.00% | |
5. Prorated Cap or Contingent Yield | 102.75% | 115.00% | 116.67% | 195.83% | No Cap | 102.75%¹ | 101.50% | 103.00% | |
6. Segment Value = Investment Base * Lesser of #4 and #5 | $1,027.50 | $1,083.12 | $1,005.73 | $1,105.05 | $1,086.06 | $ 1,027.50 | $1,015.00 | $1,030.00 | |
Hypothetical $1000 Investment With 10% Return2 | $1,100.00 | $1,100.00 | $1,100.00 | $1,100.00 | $1,100.00 | $ 1,100.00 | $1,100.00 | $1,100.00 | |
Segment Value Less Hypothetical Investment | -$ 72.50 | -$ 16.88 | -$ 94.27 | $ 5.05 | -$ 13.94 | -$ 72.50 | -$ 85.00 | -$ 70.00 | |
Impact to Values Due to Partial Surrender | |||||||||
7. Partial Surrender Amount | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | |
8. Proportionate Adjustment to Investment Base = Investment Base * (#7 / #6) | $ 97.32 | $ 92.33 | $ 99.43 | $ 90.49 | $ 92.08 | $ 97.32 | $ 98.52 | $ 97.09 | |
9. Investment Base After Partial Surrender = Investment Base - #8 | $ 902.68 | $ 907.67 | $ 900.57 | $ 909.51 | $ 907.92 | $ 902.68 | $ 901.48 | $ 902.91 | |
10. Segment Value After Partial Surrender = #9 * Lesser of #4 and #5 | $ 927.50 | $ 983.12 | $ 905.73 | $1,005.05 | $ 986.06 | $ 927.50 | $ 915.00 | $ 930.00 | |
Hypothetical $1000 Investment With 10% Return2 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 | $ 1,000.00 | $1,000.00 | $1,000.00 | |
Segment Value Less Hypothetical Investment | -$ 72.50 | -$ 16.88 | -$ 94.27 | $ 5.05 | -$ 13.94 | -$ 72.50 | -$ 85.00 | -$ 70.00 |
Example Number | #1 | #2 | #3 | #4 | #5 | #6 | #7 | #8 |
Segment Type | 1 Year Cap and Buffer | 3 Year Cap and Buffer | 6 Year Cap and Buffer | 6 Year Cap and Buffer | 1 Year Annual Fee | 3 Year Annual Lock | 1 Year Contingent Yield and Buffer | 1 Year Contingent Yield and Trigger |
Hypothetical Value of Derivatives Excluding Transaction Costs | -4.14% | -1.43% | 4.16% | 0.62% | -3.10% | -2.87% | -3.23% | 1.82% |
Less Estimated Transaction Costs | 0.15% | 0.30% | 1.00% | 0.05% | 0.10% | 0.55% | 0.75% | 0.50% |
1. Hypothetical Value of Derivatives | -4.29% | -1.73% | 3.16% | 0.57% | -3.20% | -3.42% | -3.98% | 1.32% |
2. Hypothetical Value of Fixed Assets | 99.57% | 98.63% | 85.00% | 99.55% | 98.39% | 98.48% | 99.61% | 98.72% |
3. Present Value of Annual Fees | 0.00% | 0.00% | 0.00% | 0.00% | 1.48% | 0.00% | 0.00% | 0.00% |
4. Proxy Value = #1 + #2 - #3 | 95.28% | 96.90% | 88.17% | 100.12% | 93.71% | 95.06% | 95.64% | 100.04% |
5. Prorated Cap or Contingent Yield | 102.75% | 115.00% | 116.67% | 195.83% | No Cap | 102.75%¹ | 101.50% | 103.00% |
6. Segment Value = Investment Base * Lesser of #4 and #5 | $ 952.79 | $ 969.01 | $ 881.66 | $1,001.24 | $ 937.06 | $ 950.56 | $ 956.38 | $1,000.43 |
Hypothetical $1000 Investment With -10% Return2 | $ 900.00 | $ 900.00 | $ 900.00 | $ 900.00 | $ 900.00 | $ 900.00 | $ 900.00 | $ 900.00 |
Segment Value Less Hypothetical Investment | $ 52.79 | $ 69.01 | -$ 18.34 | $ 101.24 | $ 37.06 | $ 50.56 | $ 56.38 | $ 100.43 |
Impact to Values Due to Partial Surrender | ||||||||
7. Partial Surrender Amount | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 |
8. Proportionate Adjustment to Investment Base = Investment Base * (#7 / #6) | $ 104.95 | $ 103.20 | $ 113.42 | $ 99.88 | $ 106.72 | $ 105.20 | $ 104.56 | $ 99.96 |
9. Investment Base After Partial Surrender = Investment Base - #8 | $ 895.05 | $ 896.80 | $ 886.58 | $ 900.12 | $ 893.28 | $ 894.80 | $895.44 | $ 900.04 |
10. Segment Value After Partial Surrender = #9 * Lesser of #4 and #5 | $ 852.79 | $ 869.01 | $ 781.66 | $ 901.24 | $ 837.06 | $ 850.56 | $ 856.38 | $900.43 |
Hypothetical $1000 Investment With -10% Return2 | $ 800.00 | $ 800.00 | $ 800.00 | $ 800.00 | $ 800.00 | $ 800.00 | $800.00 | $800.00 |
Segment Value Less Hypothetical Investment | $ 52.79 | $ 69.01 | -$ 18.34 | $ 101.24 | $ 37.06 | $ 50.56 | $ 56.38 | $ 100.43 |
Example Number | #1 | #2 | #3 | #4 | #5 | #6 | #7 | #8 | |
Segment Type | 1 Year Cap and Buffer | 3 Year Cap and Buffer | 6 Year Cap and Buffer | 6 Year Cap and Buffer | 1 Year Annual Fee | 3 Year Annual Lock | 1 Year Contingent Yield and Buffer | 1 Year Contingent Yield and Trigger | |
Hypothetical Value of Derivatives Excluding Transaction Costs | 9.29% | 18.56% | 28.34% | 29.99% | 30.12% | 10.05% | 5.66% | 5.92% | |
Less Estimated Transaction Costs | 0.15% | 0.30% | 1.00% | 0.05% | 0.10% | 0.55% | 0.75% | 0.50% |
Example Number | #1 | #2 | #3 | #4 | #5 | #6 | #7 | #8 | |
Segment Type | 1 Year Cap and Buffer | 3 Year Cap and Buffer | 6 Year Cap and Buffer | 6 Year Cap and Buffer | 1 Year Annual Fee | 3 Year Annual Lock | 1 Year Contingent Yield and Buffer | 1 Year Contingent Yield and Trigger | |
1. Hypothetical Value of Derivatives | 9.14% | 18.26% | 27.34% | 29.94% | 30.02% | 9.50% | 4.91% | 5.42% | |
2. Hypothetical Value of Fixed Assets | 99.57% | 98.63% | 85.00% | 99.55% | 98.39% | 98.48% | 99.61% | 98.72% | |
3. Present Value of Annual Fees | 0.00% | 0.00% | 0.00% | 0.00% | 1.48% | 0.00% | 0.00% | 0.00% | |
4. Proxy Value = #1 + #2 - #3 | 108.70% | 116.90% | 112.35% | 129.49% | 126.92% | 107.98% | 104.52% | 104.14% | |
5. Prorated Cap or Contingent Yield | 102.75% | 115.00% | 116.67% | 195.83% | No Cap | 102.75%¹ | 101.50% | 103.00% | |
6. Segment Value = Investment Base * Lesser of #4 and #5 | $1,027.50 | $1,150.00 | $1,123.46 | $1,294.94 | $1,269.22 | $ 1,027.50 | $1,015.00 | $1,030.00 | |
Hypothetical $1000 Investment With 30% Return2 | $1,300.00 | $1,300.00 | $1,300.00 | $1,300.00 | $1,300.00 | $ 1,300.00 | $1,300.00 | $1,300.00 | |
Segment Value Less Hypothetical Investment | -$ 272.50 | -$ 150.00 | -$ 176.54 | -$ 5.06 | -$ 30.78 | -$ 272.50 | -$ 285.00 | -$ 270.00 | |
Impact to Values Due to Partial Surrender | |||||||||
7. Partial Surrender Amount | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | |
8. Proportionate Adjustment to Investment Base = Investment Base * (#7 / #6) | $ 97.32 | $ 86.96 | $ 89.01 | $ 77.22 | $ 78.79 | $ 97.32 | $ 98.52 | $ 97.09 | |
9. Investment Base After Partial Surrender = Investment Base - #8 | $ 902.68 | $ 913.04 | $ 910.99 | $ 922.78 | $ 921.21 | $ 902.68 | $ 901.48 | $ 902.91 | |
10. Segment Value After Partial Surrender = #9 * Lesser of #4 and #5 | $ 927.50 | $1,050.00 | $1,023.46 | $1,194.94 | $1,169.22 | $ 927.50 | $ 915.00 | $ 930.00 | |
Hypothetical $1000 Investment With 30% Return2 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $ 1,200.00 | $1,200.00 | $1,200.00 | |
Segment Value Less Hypothetical Investment | -$ 272.50 | -$ 150.00 | -$ 176.54 | -$ 5.06 | -$ 30.78 | -$ 272.50 | -$ 285.00 | -$ 270.00 |
Example Number | #1 | #2 | #3 | #4 | #5 | #6 | #7 | #8 | |
Segment Type | 1 Year Cap and Buffer | 3 Year Cap and Buffer | 6 Year Cap and Buffer | 6 Year Cap and Buffer | 1 Year Annual Fee | 3 Year Annual Lock | 1 Year Contingent Yield and Buffer | 1 Year Contingent Yield and Trigger | |
Hypothetical Value of Derivatives Excluding Transaction Costs | -19.74% | -15.64% | -8.73% | -5.95% | -19.73% | -17.90% | -19.48% | -23.03% | |
Less Estimated Transaction Costs | 0.15% | 0.30% | 1.00% | 0.05% | 0.10% | 0.55% | 0.75% | 0.50% | |
1. Hypothetical Value of Derivatives | -19.89% | -15.94% | -9.73% | -6.00% | -19.83% | -18.45% | -20.23% | -23.53% |
Example Number | #1 | #2 | #3 | #4 | #5 | #6 | #7 | #8 | |
Segment Type | 1 Year Cap and Buffer | 3 Year Cap and Buffer | 6 Year Cap and Buffer | 6 Year Cap and Buffer | 1 Year Annual Fee | 3 Year Annual Lock | 1 Year Contingent Yield and Buffer | 1 Year Contingent Yield and Trigger | |
2. Hypothetical Value of Fixed Assets | 99.57% | 98.63% | 85.00% | 99.55% | 98.39% | 98.48% | 99.61% | 98.72% | |
3. Present Value of Annual Fees | 0.00% | 0.00% | 0.00% | 0.00% | 1.48% | 0.00% | 0.00% | 0.00% | |
4. Proxy Value = #1 + #2 - #3 | 79.67% | 82.69% | 75.28% | 93.55% | 77.08% | 80.03% | 79.39% | 75.19% | |
5. Prorated Cap or Contingent Yield | 102.75% | 115.00% | 116.67% | 195.83% | No Cap | 102.75%¹ | 101.50% | 103.00% | |
6. Segment Value = Investment Base * Lesser of #4 and #5 | $ 796.73 | $ 826.95 | $ 752.78 | $ 935.54 | $ 770.75 | $ 800.34 | $ 793.89 | $ 751.94 | |
Hypothetical $1000 Investment With -30% Return2 | $ 700.00 | $ 700.00 | $ 700.00 | $ 700.00 | $ 700.00 | $ 700.00 | $ 700.00 | $ 700.00 | |
Segment Value Less Hypothetical Investment | $ 96.73 | $ 126.95 | $ 52.78 | $ 235.54 | $ 70.75 | $ 100.34 | $ 93.89 | $ 51.94 | |
Impact to Values Due to Partial Surrender | |||||||||
7. Partial Surrender Amount | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | |
8. Proportionate Adjustment to Investment Base = Investment Base * (#7 / #6) | $ 125.51 | $ 120.93 | $ 132.84 | $ 106.89 | $ 129.74 | $ 124.95 | $ 125.96 | $ 132.99 | |
9. Investment Base After Partial Surrender = Investment Base - #8 | $ 874.49 | $ 879.07 | $ 867.16 | $ 893.11 | $ 870.26 | $ 875.05 | $ 874.04 | $ 867.01 | |
10. Segment Value After Partial Surrender = #9 * Lesser of #4 and #5 | $ 696.73 | $ 726.95 | $ 652.78 | $ 835.54 | $ 670.75 | $ 700.34 | $ 693.89 | $ 651.94 | |
Hypothetical $1000 Investment With -30% Return2 | $ 600.00 | $ 600.00 | $ 600.00 | $ 600.00 | $ 600.00 | $ 600.00 | $ 600.00 | $ 600.00 | |
Segment Value Less Hypothetical Investment | $ 96.73 | $ 126.95 | $ 52.78 | $ 235.54 | $ 70.75 | $ 100.34 | $ 93.89 | $ 51.94 |
(1) | The Prorated Cap for the Annual Lock segment is equal to one plus the Cap prorated for the number of Days since the last Contract Anniversary, multiplied by one plus the Cumulative Annual Lock Return |
(2) | Assumes a hypothetical investment with a rate of return that mirrors hypothetical Index returns of 10%, -10%, 30%, and -30%. You cannot invest directly in an Index. This hypothetical investment does not represent any Structured Solutions annuity features such as a Cap, Contingent Yield Upside Participation Rate, Annual Fee, Buffer, Floor or Trigger. Such a hypothetical investment may not be available in the market. |
1. Investment Base prior to the Surrender | $100,000.00 |
2. Lesser of the Proxy Value & Prorated Cap | 80.00% |
3. Segment Value prior to the Surrender ($100,000 × 80%) | $ 80,000.00 |
4. Amount of Partial Surrender | $ 20,000.00 |
5. The Investment Base is reduced by 25%, the same proportion as the Segment Value that is withdrawn ($20,000/$80,000 × $100,000) | $ 25,000.00 |
6. Investment Base after the Surrender ($100,000 – $25,000) | $ 75,000.00 |
7. The Segment Value after the Surrender equals the new Investment Base multiplied by the lesser of the Proxy Value and Prorated Cap ($75,000 × 80%). Note that this resulting value equals the Segment Value prior to the Surrender less the Amount of the Partial Surrender ($80,000 – $20,000). | $ 60,000.00 |
8. Investment Base prior to the Surrender | $75,000.00 |
9. Lesser of the Proxy Value & Prorated Cap | 70.00% |
10. Segment Value prior to the Surrender ($75,000 × 70%) | $52,500.00 |
11. Amount of Partial Surrender | $ 5,250.00 |
12. The Investment Base is reduced by 10%, the same proportion as the Segment Value that is withdrawn ($5,250/$52,500 × $75,000) | $ 7,500.00 |
13. Investment Base after the Surrender ($75,000 – $7,500) | $67,500.00 |
14. The Segment Value after the Surrender equals the new Investment Base multiplied by the lesser of the Proxy Value and Prorated Cap ($67,500 × 70%). Note that this resulting value equals the Segment Value prior to the Surrender less the Amount of the Partial Surrender ($52,500 – $5,250). | $47,250.00 |
• | On all future dates prior to the Segment Maturity Date, the Segment Value will equal the new Investment Base multiplied by the lesser of the proxy value and prorated Cap that is calculated on that date. |
• | On the Segment Maturity Date, the Segment Value will equal the new Investment Base multiplied by (1 + Segment rate of return). |
15. Segment Rate of Return at Maturity | 0.00% |
16. The Segment Value at Maturity equals the new Investment Base multiplied by (1 + Segment Rate of Return) ($67,500 × (1 + 0%)) | $67,500.00 |
1. Investment Base prior to the Surrender | $100,000.00 |
2. Lesser of the Proxy Value & Prorated Cap | 105.00% |
3. Segment Value prior to the Surrender ($100,000 × 105%) | $105,000.00 |
4. Amount of Partial Surrender | $ 10,500.00 |
5. The Investment Base is reduced by 10%, the same proportion as the Segment Value that is withdrawn ($10,500/$105,000 × $100,000) | $ 10,000.00 |
6. Investment Base after the Surrender ($100,000 – $10,000) | $ 90,000.00 |
7. The Segment Value after the Surrender equals the new Investment Base multiplied by the lesser of the Proxy Value and Prorated Cap ($90,000 × 105%). Note that this resulting value equals the Segment Value prior to the Surrender less the Amount of the Partial Surrender ($105,000 – $10,500). | $ 94,500.00 |
8. Investment Base prior to the Surrender | $90,000.00 |
9. Lesser of the Proxy Value & Prorated Cap | 110.00% |
10. Segment Value prior to the Surrender ($90,000 × 110%) | $99,000.00 |
11. Amount of Partial Surrender | $19,800.00 |
12. The Investment Base is reduced by 20%, the same proportion as the Segment Value that is withdrawn ($19,800/$99,000 × $90,000) | $18,000.00 |
13. Investment Base after the Surrender ($90,000 – $18,000) | $72,000.00 |
14. The Segment Value after the Surrender equals the new Investment Base multiplied by the lesser of the Proxy Value and Prorated Cap ($72,000 × 110%). Note that this resulting value equals the Segment Value prior to the Surrender less the Amount of the Partial Surrender ($99,000 – $19,800). | $79,200.00 |
• | On all future dates prior to the Segment Maturity Date, the Segment Value will equal the new Investment Base multiplied by the lesser of the proxy value and prorated Cap that is calculated on that date. |
• | On the Segment Maturity Date, the Segment Value will equal the new Investment Base multiplied by (1 + Segment rate of return). |
15. Segment Rate of Return at Maturity | 0.00% |
16. The Segment Value at Maturity equals the new Investment Base multiplied by (1 + Segment Rate of Return) ($72,000 × (1 + 0%)) | $72,000.00 |
PPS | = | PPSC + PPF |
PPSC | = | (PS – FA) / (CV – FA) × (PP – PPF) |
PPF | = | FA - "Contract earnings", but not less than zero |
PP | = | Purchase payments not previously surrendered (total purchase payments – PPS) |
PS | = | Amount the Contract Value is reduced by the surrender |
FA | = | the “Total Free Amount” |
CV | = | Contract Value prior to the surrender |
• | We receive a single $100,000 purchase payment; |
• | During the third Contract Year You surrender the Contract for its total value. The Surrender Charge percentage in the third Contract year is 6.00%; and |
• | You have made no prior surrenders. |
Contract with Gain | Contract with Loss | ||||
Contract Value just prior to surrender: | $120,000.00 | $ 80,000.00 | |||
Contract Value on prior anniversary: | $114,000.00 | $ 84,000.00 | |||
We calculate the Surrender Charge as follows: | |||||
Step 1. | First, We determine the amount of earnings available in the Contract at the time of surrender as: | ||||
Contract Value just prior to surrender (CV): | $120,000.00 | $ 80,000.00 | |||
Less purchase payments received and not previously surrendered (PP): | $100,000.00 | $100,000.00 | |||
Earnings in the Contract (but not less than zero): | $ 20,000.00 | $ 0.00 | |||
Step 2. | Next, We determine the Total Free Amount (FA) available in the Contract as the greatest of the following values: | ||||
Earnings in the Contract: | $ 20,000.00 | $ 0.00 | |||
10% of the prior anniversary’s Contract Value: | $ 11,400.00 | $ 8,400.00 | |||
FA (but not less than zero): | $ 20,000.00 | $ 8,400.00 | |||
Step 3. | Next We determine PPF, the amount by which the Total Free Amount (FA) exceeds earnings. | ||||
Total free amount (FA): | $ 20,000.00 | $ 8,400.00 | |||
Less earnings in the Contract: | $ 20,000.00 | $ 0.00 | |||
PPF (but not less than zero): | $ 0.00 | $ 8,400.00 | |||
Step 4. | Next We determine PS, the amount by which the Contract Value is reduced by the surrender. | ||||
PS: | $120,000.00 | $ 80,000.00 | |||
Step 5. | Now We can determine how much of the PP is being surrendered (PPS) as follows: |
Contract with Gain | Contract with Loss | ||||
PPS | = PPF + PPSC | ||||
= PPF + (PS − FA) / (CV − FA) * (PP − PPF) | |||||
PPF from Step 3 = | $ 0.00 | $ 8,400.00 | |||
PS from Step 4 = | $120,000.00 | $ 80,000.00 | |||
CV from Step 1 = | $120,000.00 | $ 80,000.00 | |||
FA from Step 2 = | $ 20,000.00 | $ 8,400.00 | |||
PP from Step 1 = | $100,000.00 | $100,000.00 | |||
PPS = | $100,000.00 | $100,000.00 | |||
Step 6. | We then calculate the Surrender Charge as a percentage of PPS. Note that for a Contract with a loss, PPS may be greater than the amount You request to surrender: | ||||
PPS: | $100,000.00 | $100,000.00 | |||
less PPF: | $ 0.00 | $ 8,400.00 | |||
PPSC = amount of PPS subject to a Surrender Charge: | $100,000.00 | $ 91,600.00 | |||
multiplied by the Surrender Charge rate: | x6.0% | x6.0% | |||
Surrender Charge: | $ 6,000.00 | $ 5,496.00 | |||
Step 7. | The dollar amount You will receive as a result of Your full surrender is determined as: | ||||
Contract Value surrendered: | $120,000.00 | $ 80,000.00 | |||
Surrender Charge: | ($ 6,000.00) | ($ 5,496.00) | |||
Net full surrender proceeds: | $114,000.00 | $ 74,504.00 | |||
• | We receive a single $100,000 purchase payment; |
• | During the third Contract Year You request a net partial surrender of $30,000.00. The Surrender Charge percentage in the second Contract Year is 6.0%; and |
• | You have made no prior surrenders. |
Contract with Gain | Contract with Loss | ||||
Contract Value just prior to partial surrender: | $120,000.00 | $ 80,000.00 | |||
Contract Value on prior anniversary: | $114,000.00 | $ 84,000.00 | |||
Iterative Process: We determine the amount of Contract Value that must be surrendered in order for the net partial surrender proceeds to match the amount requested. We start with an estimate of the amount of Contract Value to surrender (i.e. amount You request) and calculate the resulting Surrender Charge and net partial surrender proceeds as illustrated below. We then adjust our estimate (i.e. next estimate is equal to the previous estimate plus the difference between the requested amount and the net partial surrender that was calculated). We then repeat this process until We determine the amount of Contract Value to surrender that generates the desired net partial surrender proceeds. | |||||
We calculate the Surrender Charge for each estimate as follows: | |||||
Step 1. | First, We determine the amount of earnings available in the Contract at the time of surrender as: | ||||
Contract Value just prior to partial surrender (CV): | $120,000.00 | $ 80,000.00 | |||
Less purchase payments received and not previously surrendered (PP): | $100,000.00 | $100,000.00 | |||
Earnings in the Contract (but not less than zero): | $ 20,000.00 | $ 0.00 | |||
Step 2. | Next, We determine the Total Free Amount (FA) available in the Contract as the greatest of the following values: | ||||
Earnings in the Contract: | $ 20,000.00 | $ 0.00 | |||
10% of the prior anniversary’s Contract Value: | $ 11,400.00 | $ 8,400.00 |
Contract with Gain | Contract with Loss | ||||
FA (but not less than zero): | $ 20,000.00 | $ 8,400.00 | |||
Step 3. | Next We determine PPF, the amount by which the total free amount (FA) exceeds earnings | ||||
Total Free amount (FA): | $ 20,000.00 | $ 8,400.00 | |||
Less earnings in the Contract: | $ 20,000.00 | $ 0.00 | |||
PPF (but not less than zero): | $ 0.00 | $ 8,400.00 | |||
Step 4. | Next We determine PS, the amount by which the Contract Value is reduced by the surrender | ||||
PS (determined by iterative process described above): | $ 30,638.30 | $ 31,795.86 | |||
Step 5. | Now We can determine how much of the PP is being surrendered (PPS) as follows: | ||||
PPS | = PPF + PPSC | ||||
= PPF + (PS − FA) / (CV − FA) * (PP − PPF) | |||||
PPF from Step 3 = | $ 0.00 | $ 8,400.00 | |||
PS from Step 4 = | $ 30,638.30 | $ 31,795.86 | |||
CV from Step 1 = | $120,000.00 | $ 80,000.00 | |||
FA from Step 2 = | $ 20,000.00 | $ 8,400.00 | |||
PP from Step 1 = | $100,000.00 | $100,000.00 | |||
PPS = | $ 10,638.30 | $ 38,331.02 | |||
Step 6. | We then calculate the Surrender Charge as a percentage of PPS. Note that for a Contract with a loss, PPS may be greater than the amount You request to surrender: | ||||
PPS: | $ 10,638.30 | $ 38,331.02 | |||
less PPF: | $ 0.00 | $ 8,400.00 | |||
PPSC = amount of PPS subject to a Surrender Charge: | $ 10,638.30 | $ 29,931.02 | |||
multiplied by the Surrender Charge rate: | x6.0% | x6.0% | |||
Surrender Charge: | $ 638.30 | $ 1,795.86 | |||
Step 7. | The dollar amount You will receive as a result of Your partial surrender is determined as: | ||||
Contract Value surrendered: | $ 30,638.30 | $ 31,795.86 | |||
Surrender Charge: | ($ 638.30) | ($ 1,795.86) | |||
Net partial surrender proceeds: | $ 30,000.00 | $ 30,000.00 |
Minneapolis, MN 55474
1-800-862-7919
Issued by RiverSource Life Insurance Company, Minneapolis, Minnesota. Affiliated with Ameriprise Financial Services, LLC.
PART II.
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution
The following is an itemized list of the estimated expenses to be incurred in connection with the issuance and distribution of the securities being offered:
Registration Fee: | $ | 0 | ||
Printing and Filing Expenses: | $ | 0 | ||
Legal Fees and Expenses: | N/A | |||
Accounting Fees and Expenses: | $ | 7,500 |
Item 15. Indemnification of Directors and Officers
The amended and restated By-Laws of the depositor provide that the depositor will indemnify, to the fullest extent now or hereafter provided for or permitted by law, each person involved in, or made or threatened to be made a party to, any action, suit, claim or proceeding, whether civil or criminal, including any investigative, administrative, legislative, or other proceeding, and including any action by or in the right of the depositor or any other corporation, or any partnership, joint venture, trust, employee benefit plan, or other enterprise (any such entity, other than the depositor, being hereinafter referred to as an “Enterprise”), and including appeals therein (any such action or process being hereinafter referred to as a “Proceeding”), by reason of the fact that such person, such person’s testator or intestate (i) is or was a director or officer of the depositor, or (ii) is or was serving, at the request of the depositor, as a director, officer, or in any other capacity, or any other Enterprise, against any and all judgments, amounts paid in settlement, and expenses, including attorney’s fees, actually and reasonably incurred as a result of or in connection with any Proceeding, except as provided below.
No indemnification will be made to or on behalf of any such person if a judgment or other final adjudication adverse to such person establishes that such person’s acts were committed in bad faith or were the result of active and deliberate dishonesty and were material to the cause of action so adjudicated, or that such person personally gained in fact a financial profit or other advantage to which such person was not legally entitled. In addition, no indemnification will be made with respect to any Proceeding initiated by any such person against the depositor, or a director or officer of the depositor, other than to enforce the terms of this indemnification provision, unless such Proceeding was authorized by the Board of Directors of the depositor. Further, no indemnification will be made with respect to any settlement or compromise of any Proceeding unless and until the depositor has consented to such settlement or compromise.
The depositor may, from time to time, with the approval of the Board of Directors, and to the extent authorized, grant rights to indemnification, and to the advancement of expenses, to any employee or agent of the depositor or to any person serving at the request of the depositor as a director or officer, or in any other capacity, of any other Enterprise, to the fullest extent of the provisions with respect to the indemnification and advancement of expenses of directors and officers of the depositor.
Insofar as indemnification for liability arising under the Securities Act of 1933 (the “Act”) may be permitted to directors, officers and controlling persons of the depositor or the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that
a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Item 16. Exhibits
See the Exhibit Index immediately preceding the signature page to this registration statement for a list of exhibits filed as part of this registration statement, which Exhibit Index is incorporated herein by reference.
Item 17. Undertakings
(a) The undersigned registrant hereby undertakes:
(1) to file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:
(i) to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;
(iii) to include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement, provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or 15(d) of the Securities Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of this Registration Statement;
(2) that, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time may be deemed to be the initial bona fide offering thereof;
(3) to remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering; and
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
(5) That, for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: (i) Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424; (ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant; (iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and (iv) Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.
(b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
EXHIBIT INDEX
* | Filed herewith |
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant, RiverSource Life Insurance Company, certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Minneapolis, and State of Minnesota on the 9th day of August, 2021.
RiverSource Life Insurance Company | ||
(Registrant) | ||
By | /s/ Gumer C. Alvero** | |
Gumer C. Alvero | ||
Interim Chairman of the Board and Executive Vice President - Annuities |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on the ninth day of August, 2021.
Signature | Title | |||
/s/ Gumer C. Alvero** Gumer C. Alvero | Interim Chairman of the Board and Executive Vice President – Annuities (Chief Executive Officer) | |||
/s/ Michael J. Pelzel * Michael J. Pelzel | Senior Vice President – Corporate Tax | |||
/s/ Stephen P. Blaske* Stephen P. Blaske | Director, Senior Vice President and Chief Actuary | |||
/s/ Shweta Jhanji.* Shweta Jhanji | Senior Vice President and Treasurer | |||
/s/ Brian J. McGrane* Brian J. McGrane | Director, Executive Vice President and Chief Financial Officer (Chief Financial Officer) | |||
/s/ Jeninne C. McGee* Jeninne C. McGee | Director | |||
/s/ Gene R. Tannuzzo * Gene R. Tannuzzo | Director | |||
/s/ Gregg L. Ewing * Gregg L. Ewing | Senior Vice President and Controller (Principal Accounting Officer) |
/s/ Nicole D. Wood |
Nicole D. Wood |
Assistant General Counsel and Assistant Secretary |