Lifetime GuaranteedIncome Account

AFN45811

Mutual of Omaha Retirement Services

Agenda

• What is the Lifetime Guaranteed Income Account (LGIA)

• What is it a solution for?• How does it work?• How can it be sold?• What are some key takeaways about the LGIA?• How does this product differ from similar

products in the industry?

What is the Lifetime Guaranteed Income Account?Mutual of Omaha’s investment option that: • Is similar to the Guaranteed Account

– Principal is guaranteed– Interest is credited– Has an account value

• Has a Guaranteed Retirement Income Benefit– Expressed as an annual income payable at age 65– 20 Yr Certain and Life

• Includes built-in flexibility– Account value can be transferred to other funds at any time (will impact amount of

income benefit)– At retirement, the participant can elect to take the retirement income benefit or the

account value– Can select other actuarially equivalent payment options– Rollover option

LGIA is not available in Nevada or New York. Specific features may vary by state.Rollover IRA product not available in all states.Transfers between the Guaranteed Account and LGIA solution are prohibited. Transfer from LGIA will reduce the retirement income benefit.

The LGIA is a Solution for:

• Longevity Risk: Participants cannot outlive the retirement income that accumulates with this option

• Sequence of Returns Risk: Market cycles do not impact the guaranteed benefits

• Market Risk: Participants have no equity exposure

• Uncertainty: Retirement income is known, stated, and guaranteed

How It Works: A Hypothetical Calculation*

-$ -$

45 Transfer $$ to LGIA 100,000$ 13,155.00$ 13,155.00$ 100,000$

45 Payroll Contributions 5,000$ 657.75$ 13,812.75$ 106,000$

46 Payroll Contributions 5,000$ 633.10$ 14,445.85$ 112,060$

47 Payroll Contributions 5,000$ 586.50$ 15,032.35$ 119,130$

48 Transfer $$ from LGIA 59,090$ (7,456.24)$ 7,576.11$ 60,271$

49 Payroll Contributions 10,000$ 1,129.00$ 8,705.11$ 70,873$

Age TransactionDollar

Amount

Increase/ (Decrease) in Guaranteed

Retirement Income

Cumulative Guaranteed Retirement

Income (Annual)

Account Balance

• Each deposit buys additional guaranteed retirement income• Each withdrawal proportionally reduces the guaranteed retirement income

*This is a hypothetical example using a purchase rate for age 45- .13155%, age 46- .12662%, age 47-.12187%, age 48-.11730, age 49-.11290 which was in effect as of Oct. 2013 and does not represent the results of an actual account experience. Actual purchase rates are filed in the official contract. This specific example assumes a 1% interest rate.

The LGIA Can Be Sold as:

• A pension benefit feature within a Defined Contribution plan

• A unique participant investment option

A DB Feature Within a DC Plan• Employer makes the same contributions they would make

to a Defined Contribution plan• Employer contributions are used to purchase a guaranteed

income stream for participants • Participant’s account value is expressed as an annual

payment commencing at age 65 and is guaranteed by United of Omaha (a Mutual of Omaha subsidiary)*

• United assumes the mortality and interest rate risk rather than the plan sponsor

• No minimum funding requirements or actuarial expenses typically found with a Defined Benefit plan

• 404(c) not available*Please see important disclosures on the last slide.

A Unique Participant Investment Option:

• Allows participants to buy amounts of guaranteed retirement income

• Has the potential for retirement income to increase annually depending on interest earnings (the “ratchet”)

• Allows participants to accumulate an account balance • Provides flexibility so the account balance can be

transferred to other investment options at any time– Caveat: If money is transferred from the LGIA, the

guaranteed retirement income is reduced proportionately• Guarantees principal

Key Takeaways

• Higher level of certainty regarding ultimate benefit– Benefit illustrated on Web site and Participant

Statement– It is not subject to equity market risk– Benefits increase with each contribution– Benefits continue to increase even if the market drops– Principal is guaranteed

• Future benefits are more predictable– With estimated contributions and known purchase

factors, future retirement income can be accurately estimated

Key Takeaways (cont’d)

• Quarterly statements will display both the account value and the guaranteed income at 65

• Section only displays for participants that have a balance in the LGIA

Questions?

[Name]Regional 401k Wholesaler

[Email]

[Phone]

<<Wholesaler name>> is a registered representative offering securities through Mutual of Omaha Investor Services, Inc., a registered broker/dealer, Menber FINRA/SIPC.

Thank You!

Investment options are offered through a group variable annuity contract (Forms 902-GAQC-09 or 902-GAQC-09(CT) or 902-GAQC-09(OR)) underwritten by United of Omaha Life Insurance Company for contracts issued in all states except New York. United of Omaha Life Insurance Company, Omaha, NE 68175 is licensed nationwide except in New York. Companion Life Insurance Company, Hauppauge, NY 11788 is licensed in New York and underwrites the group variable annuity (Form 900-GAQC-07(NY)). Each company accepts full responsibility for each of their respective contractual obligations under the contract but does not guarantee any contributions or investment returns except as to the Guaranteed Account and the Lifetime Guaranteed Income Account as provided under the contract. Neither United of Omaha Life Insurance Company, Companion Life Insurance Company, nor their representatives or affiliates offers investment advice in connection with the contract.

 

Specific features of the Lifetime Guaranteed Income Account (Rider Forms 651-GAQR-10 or 651-GAQR-10(CT) or 651-GAQR-10(OR)) vary by state. Restrictions apply. The Lifetime Guaranteed Income Account is not available in Nevada or New York.

All guarantees are based on the claims paying ability of United of Omaha Life Insurance Company

For producer use only. Not to be used with any plan sponsor or participant.