-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ke2PO45U5dUnj2I3C02YG4wpQctGNBxJvZQ0mEzZkcZSgqqWTsc2qhghcBkjodm9 NXo/58upwyjYZCSa4P9soQ== 0000950123-08-004926.txt : 20080430 0000950123-08-004926.hdr.sgml : 20080430 20080430172735 ACCESSION NUMBER: 0000950123-08-004926 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20080430 DATE AS OF CHANGE: 20080430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MetLife Insurance CO of Connecticut CENTRAL INDEX KEY: 0000733076 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 060566090 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: 1933 Act SEC FILE NUMBER: 333-147912 FILM NUMBER: 08791007 BUSINESS ADDRESS: STREET 1: ONE CITYPLACE STREET 2: ATTN FINANCIAL SERVICES LEGAL DIVISION CITY: HARTFORD STATE: CT ZIP: 06103 BUSINESS PHONE: 860-277-0111 MAIL ADDRESS: STREET 1: ONE CITYPLACE STREET 2: ATTN FINANCIAL SERVICES LEGAL DIVISION CITY: HARTFORD STATE: CT ZIP: 06103 FORMER COMPANY: FORMER CONFORMED NAME: TRAVELERS INSURANCE CO DATE OF NAME CHANGE: 19920703 424B3 1 y42113ce424b3.txt FILED PURSUANT TO RULE 424(B)(3) METLIFE RETIREMENT ACCOUNT ANNUITY PROSPECTUS: METLIFE OF CT SEPARATE ACCOUNT FIVE FOR VARIABLE ANNUITIES METLIFE OF CT SEPARATE ACCOUNT SIX FOR VARIABLE ANNUITIES This prospectus describes MetLife Retirement Account Annuity, a flexible premium deferred variable annuity contract (the "Contract") issued by MetLife Insurance Company of Connecticut. The Contract is available in connection with certain retirement plans that qualify for special Federal income tax treatment ("Qualified Contracts".) We may issue it as an individual Contract or as a group Contract. When we issue a group Contract, you will receive a certificate summarizing the Contract's provisions. For convenience, we refer to Contracts and certificates as "Contracts." The Contract is not available to new purchasers. Current Contract Owners may make additional purchase payments. You can choose to have your premium ("Purchase Payments") and any applicable Purchase Payment Credits accumulate on a variable and, subject to availability, fixed basis in one of our funding options. Your Contract Value before the Maturity Date and the amount of monthly income afterwards will vary daily to reflect the investment experience of the Variable Funding Options you select. You bear the investment risk of investing in the Variable Funding Options. The Variable Funding Options are: AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 Lord Abbett Bond Debenture American Funds Global Growth Fund Portfolio -- Class A American Funds Growth Fund Lord Abbett Growth and Income American Funds Growth-Income Fund Portfolio -- Class B DELAWARE VIP TRUST -- STANDARD CLASS Lord Abbett Mid Cap Value Delaware VIP Small Cap Value Series Portfolio -- Class B FIDELITY(R) VARIABLE INSURANCE Met/AIM Capital Appreciation PRODUCTS -- SERVICE CLASS 2 Portfolio -- Class A Contrafund(R) Portfolio Met/AIM Small Cap Growth Portfolio -- Class Mid Cap Portfolio A FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS PIMCO Inflation Protected Bond TRUST -- CLASS 2 Portfolio -- Class A Templeton Developing Markets Securities Pioneer Fund Portfolio -- Class A Fund Pioneer Strategic Income Portfolio -- Class Templeton Foreign Securities Fund A JANUS ASPEN SERIES -- SERVICE SHARES Third Avenue Small Cap Value Mid Cap Growth Portfolio Portfolio -- Class B LEGG MASON PARTNERS VARIABLE EQUITY TRUST METROPOLITAN SERIES FUND, INC. Legg Mason Partners Variable Appreciation BlackRock Aggressive Growth Portfolio -- Class I Portfolio -- Class D Legg Mason Partners Variable Equity Index BlackRock Bond Income Portfolio -- Class A Portfolio -- Class II BlackRock Money Market Portfolio -- Class A Legg Mason Partners Variable Fundamental Davis Venture Value Portfolio -- Class A Value Portfolio -- Class I FI Large Cap Portfolio -- Class A Legg Mason Partners Variable Investors FI Value Leaders Portfolio -- Class D Portfolio -- Class I Lehman Brothers(R) Aggregate Bond Index Legg Mason Partners Variable Large Cap Portfolio -- Class A Growth Portfolio -- Class I MetLife Aggressive Allocation Legg Mason Partners Variable Small Cap Portfolio -- Class B Growth Portfolio -- Class I MetLife Conservative Allocation Legg Mason Partners Variable Social Portfolio -- Class B Awareness Portfolio MetLife Conservative to Moderate Allocation LEGG MASON PARTNERS VARIABLE INCOME TRUST Portfolio -- Class B Legg Mason Partners Variable Adjustable MetLife Moderate Allocation Rate Income Portfolio Portfolio -- Class B Legg Mason Partners Variable High Income MetLife Moderate to Aggressive Allocation Portfolio Portfolio -- Class B MET INVESTORS SERIES TRUST MetLife Stock Index Portfolio -- Class A BlackRock High Yield Portfolio -- Class A MFS(R) Total Return Portfolio -- Class F BlackRock Large Cap Core Portfolio -- Class MFS(R) Value Portfolio -- Class A E Morgan Stanley EAFE(R) Index Clarion Global Real Estate Portfolio -- Class A Portfolio -- Class A Oppenheimer Global Equity Dreman Small Cap Value Portfolio -- Class A Portfolio -- Class B Harris Oakmark International Russell 2000(R) Index Portfolio -- Class A Portfolio -- Class A T. Rowe Price Small Cap Growth Janus Forty Portfolio -- Class A Portfolio -- Class B Lazard Mid Cap Portfolio -- Class A Western Asset Management U.S. Government Legg Mason Partners Managed Assets Portfolio -- Class A Portfolio -- Class A PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS Total Return Portfolio VAN KAMPEN LIFE INVESTMENT TRUST -- CLASS II Comstock Portfolio
Certain Variable Funding Options have been subject to a merger, substitution or other change. Please see "Appendix B -- Additional Information Regarding the Underlying Funds." We also offer variable annuity Contracts that do not have Purchase Payment Credits, and therefore may have lower fees. Over time, the value of the Purchase Payment Credits could be more than offset by higher charges. You should carefully consider whether or not this Contract is the most appropriate investment for you. The Fixed Account is described in a separate prospectus. The Contract, certain contract features and/or some of the funding options may not be available in all states. This prospectus sets forth the information that you should know before investing in the Contract. This prospectus should be kept for future reference. You can receive additional information about your Contract by requesting a Statement of Additional Information ("SAI") dated April 28, 2008. We filed the SAI with the Securities and Exchange Commission ("SEC") and it is incorporated by reference into this prospectus. To request a copy, write to MetLife Insurance Company of Connecticut, Annuity Operations and Services, One Cityplace, 185 Asylum Street, 3CP, Hartford, CT 06103-3415, call 1-800-842-9406, or access the SEC's website (http://www.sec.gov). See Appendix D for the SAI's table of contents. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. VARIABLE ANNUITY CONTRACTS ARE NOT DEPOSITS OF ANY BANK, AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. PROSPECTUS DATED: APRIL 28, 2008 TABLE OF CONTENTS
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2 3 GLOSSARY ACCUMULATION UNIT -- an accounting unit of measure used to calculate the value of this Contract before Annuity Payments begin. ANNUITANT -- the person on whose life the Maturity Date and Annuity Payments depend. ANNUITY PAYMENTS -- a series of periodic payments (a) for life; (b) for life with a minimum number of payments; (c) for the joint lifetime of the Annuitant and another person, and thereafter during the lifetime of the survivor; or (d) for a fixed period. ANNUITY UNIT -- an accounting unit of measure used to calculate the amount of Annuity Payments. CASH SURRENDER VALUE -- the Contract Value less any withdrawal charge and premium tax not previously deducted. CODE -- the Internal Revenue Code of 1986, as amended, and all related laws and regulations that are in effect during the term of this Contract. COMPANY (WE, US, OUR) -- MetLife Insurance Company of Connecticut. COMPETING FUND -- any investment option under the plan, which, in Our opinion, consists primarily of fixed-income securities and/or money market instruments. Competing Funds are indicated on the Contract/Certificate Specifications page. CONTINGENT ANNUITANT -- the individual who becomes the Annuitant when the Annuitant who is not the owner dies prior to the Maturity Date. CONTRACT -- for convenience, means the Contract or Certificate CONTRACT DATE -- the date on which the Contract is issued. CONTRACT OWNER (YOU) -- the person named in the Contract (on the specifications page). CONTRACT VALUE -- Purchase Payments and any associated Purchase Payment Credits, plus or minus any investment experience on the amounts allocated to the variable funds or interest on amounts allocated to the Fixed Account, adjusted by any applicable charges and withdrawals. CONTRACT YEARS -- twelve month periods beginning with the Contract Date. DEATH REPORT DATE -- the day on which we have received 1) Due Proof of Death and 2) written payment instructions or election of spousal or beneficiary contract continuation. DUE PROOF OF DEATH -- (i) a copy of a certified death certificate; (ii) a copy of a certified decree of a court of competent jurisdiction as to the finding of death; (iii) a written statement by a medical doctor who attended the deceased; or (iv) any other proof satisfactory to us. FIXED ACCOUNT -- an account that consists of all of the assets under this Contract other than those in the Separate Account. HOME OFFICE -- the Home Office of MetLife Insurance Company of Connecticut, One Cityplace, Hartford, CT 06103, or any other office that we may designate for the purpose of administering this Contract. MATURITY DATE -- the date on which the Annuity Payments are to begin. PAYMENT OPTION -- an annuity or income option elected under your Contract. PURCHASE PAYMENT -- any premium paid by you to initiate or supplement this Contract. PURCHASE PAYMENT CREDIT -- an amount credited to your Contract Value that equals a percentage of each Purchase Payment made. QUALIFIED CONTRACT -- a contract used in a retirement plan or program that is intended to qualify under Sections 401, 403, 408, or 414(d) of the Code. 4 SEPARATE ACCOUNT -- MetLife of CT Separate Account Five for Variable Annuities and MetLife of CT Separate Account Six for Variable Annuities, each a segregated account registered with the Securities and Exchange Commission ("SEC"), the assets of which are invested solely in the Underlying Funds. The assets of the Separate Account are held exclusively for the benefit of Contract Owners. SUBACCOUNT -- that portion of the assets of a Separate Account that is allocated to a particular Underlying Fund. UNDERLYING FUND -- a portfolio of an open-end management investment company that is registered with the Securities and Exchange Commission in which the Subaccounts invest. VALUATION DATE -- a date on which a Subaccount is valued. VALUATION PERIOD -- the period between successive valuations. VARIABLE FUNDING OPTION -- an open-end diversified management investment company that serves as an investment option under the Separate Account. WRITTEN REQUEST -- written information sent to us in a form and content satisfactory to us and received at our Home Office. YOU, YOUR -- "You", depending on the context, may be the Participant or the Contract Owner and a natural person, a trust established for the benefit of a natural person, a charitable remainder trust, or a plan (or the employer purchaser who has purchased the Contract on behalf of the plan). 5 SUMMARY: METLIFE RETIREMENT ACCOUNT THIS SUMMARY DETAILS SOME OF THE MORE IMPORTANT POINTS THAT YOU SHOULD KNOW AND CONSIDER BEFORE PURCHASING THE CONTRACT. PLEASE READ THE ENTIRE PROSPECTUS CAREFULLY. WHAT COMPANY WILL ISSUE MY CONTRACT? MetLife Insurance Company of Connecticut (the "Company", "we" or "us") is the issuer of your Contract. The Company funds the Contract through segregated accounts, MetLife of CT Separate Account Five for Variable Annuities ("Separate Account Five") and MetLife of CT Separate Account Six for Variable Annuities ("Separate Account Six"). When we refer to the Separate Account, we are referring to either Separate Account Five or Separate Account Six. CAN YOU GIVE ME A GENERAL DESCRIPTION OF THE CONTRACT? We designed the Contract for retirement savings or other long-term investment purposes. The Contract provides a death benefit as well as guaranteed payout options. You direct your payment(s) to one or more of the Variable Funding Options and/or to the Fixed Account that is part of the general account (the "Fixed Account"). We guarantee money directed to the Fixed Account as to principal and interest. The Variable Funding Options fluctuate with the investment performance of the Underlying Funds and are not guaranteed. You can also lose money in the Variable Funding Options. The Contract, like all deferred variable annuity contracts, has two phases: the accumulation phase and the payout phase (annuity period). During the accumulation phase generally, pre-tax contributions accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal, presumably when in a lower tax bracket. The payout phase occurs when you begin receiving payments from your Contract. The amount of money you accumulate in your Contract determines the amount of income (Annuity Payments) you receive during the payout phase. During the payout phase, you may choose one of a number of annuity options. You may receive income payments in the form of a variable annuity, a fixed annuity or a combination of both. If you elect variable income payments, the dollar amount of your payments may increase or decrease. Once you choose one of the annuity options and begin to receive payments, it cannot be changed. WHO CAN PURCHASE THIS CONTRACT? The Contract is not available for purchase if the proposed owner or Annuitant is age 81 or older. The Contract is not available to new purchasers. CAN I EXCHANGE MY CURRENT ANNUITY CONTRACT FOR THIS CONTRACT? The Code generally permits you to exchange one annuity contract for another in a "tax-free exchange." Therefore, you can transfer the proceeds from another annuity contract to make Purchase Payments under this Contract. Before making an exchange to acquire this Contract, you should carefully compare this Contract to your current contract. You may have to pay a surrender charge under your current contract to exchange it for this Contract, and this Contract has its own surrender charges that would apply to you. The other fees and charges under this Contract may be higher or lower and the benefits may be different than those of your current contract. In addition, you may have to pay federal income or penalty taxes on the exchange if it does not qualify for tax-free treatment. You should not exchange another contract for this Contract unless you determine, after evaluating all the facts, that the exchange is in your best interests. Remember that the person selling you the Contract generally will earn a commission on the sale. WHO IS THE CONTRACT ISSUED TO? If you purchase an individual Contract, you are the Contract Owner. If a group Contract is purchased, we issue certificates to the individual participants. Where we refer to "you," we are referring to the individual Contract Owner or the group participant, as applicable. For convenience, we refer to both contracts and certificates as "Contracts". If a group unallocated Contract is purchased, we issue only a Contract. We issue group Contracts in connection with retirement plans. Depending on your retirement plan provisions, certain features and/or Variable Funding Options described in this prospectus may not be available to you. Your retirement plan provisions supersede the prospectus. If you have any questions about your specific retirement plan, contact your retirement plan administrator. IS THERE A RIGHT TO RETURN PERIOD? If you cancel the Contract within ten days after you receive it, you receive a full refund of your Contract Value plus any Contract charges and premium taxes you paid (but not fees and charges assessed by the Underlying Funds). The number of days for the right to return varies by state. Depending on state law, we may refund all of your purchase payments or your Contract Value. You bear the investment risk on the 6 Purchase Payments allocated to a Variable Funding Option during the right to return period; therefore, the Contract Value returned to you may be greater or less than your Purchase Payment. If you purchased your Contract as an Individual Retirement Annuity, and you return it within the first seven days after delivery, or longer if your state permits, we will refund your full Purchase Payment. During the remainder of the right to return period, we will refund your Contract Value (including charges we assessed). We will determine your Contract Value at the close of business on the day we receive a Written Request for a refund. During the right to return period, you will not bear any Contract fees associated with the Purchase Payment Credits. If you exercise your right to return, you will be in the same position as if you had exercised the right to return in a variable annuity Contract with no Purchase Payment Credit. You would, however, receive any gains, and we would bear any losses attributable to the Purchase Payment Credits. CAN YOU GIVE A GENERAL DESCRIPTION OF THE VARIABLE FUNDING OPTIONS AND HOW THEY OPERATE? Through its Subaccounts, the Separate Account uses your Purchase Payments to purchase shares, at your direction, of one or more of the Variable Funding Options. In turn, each Variable Funding Option invests in an underlying mutual fund ("Underlying Fund") that holds securities consistent with its own investment policy. Depending on market conditions, you may make or lose money in any of these Variable Funding Options. You can transfer among the Variable Funding Options as frequently as you wish without any current tax implications. Currently there is no charge for transfers, nor a limit to the number of transfers allowed. We may, in the future, charge a fee for any transfer request, or limit the number of transfers allowed. At a minimum, we would always allow one transfer every six months. We reserve the right to restrict transfers that we determine will disadvantage other Contract Owners. WHAT EXPENSES WILL BE ASSESSED UNDER THE CONTRACT? The Contract has insurance features and investment features, and there are costs related to each. We deduct a mortality and expense ("M&E") risk charge daily from the amounts you allocate to the Separate Account. We deduct the M&E risk charge at an annual rate of 0.80% for the Standard Death Benefit, and 1.25% for the Optional Death Benefit. Each Underlying Fund also charges for management costs and other expenses. We will apply a withdrawal charge to withdrawals from the Contract, and will calculate it as a percentage of the Purchase Payments and any associated Purchase Payment Credits withdrawn. The maximum percentage is 5% decreasing to 0% in year six or later. Upon annuitization, if you select the Variable Annuitization Floor Benefit, there is a Floor Benefit charge assessed. This charge will vary based upon market conditions, and will be set at the time you choose this option. Once established, this charge will remain the same throughout the term of the annuitization. If you select the Liquidity Benefit, there is a charge of 5% of the amounts withdrawn. HOW WILL MY PURCHASE PAYMENTS AND WITHDRAWALS BE TAXED? Generally, the payments you make to a Qualified Contract during the accumulation phase are made with before-tax dollars. Generally, you will be taxed on your Purchase Payments, Purchase Payment Credits and on any earnings when you make a withdrawal or begin receiving Annuity Payments. Payments to the Contract are made with after-tax dollars, and any credits and earnings will generally accumulate tax-deferred. You will be taxed on these earnings when they are withdrawn from the Contract. If you are younger than 59 1/2 when you take money out, you may be charged a 10% federal penalty tax on the amount withdrawn. Under non-qualified Contracts, withdrawals are considered to be made first from taxable earnings. For owners of Qualified Contracts, if you reach a certain age, you may be required by federal tax laws to begin receiving payments from your annuity or risk paying a penalty tax. In those cases, we can calculate and pay you the minimum required distribution amounts. (See "Managed Distribution Program"). HOW MAY I ACCESS MY MONEY? You can take withdrawals any time during the accumulation phase. Withdrawal charges may apply, as well as income taxes, and/or a penalty tax on taxable amounts withdrawn. WHAT IS THE DEATH BENEFIT UNDER THE CONTRACT? You may choose to purchase the Standard or Optional Death Benefit. If you die before the Contract is in the payout phase, the person you have chosen as your beneficiary will receive a death benefit. We calculate the death benefit value at the close of the business day on which our Home Office receives (1) Due Proof of Death and (2) written payment instructions or the election of beneficiary contract 7 continuance. Any amounts paid will be reduced by any applicable premium tax, outstanding loans or surrenders not previously deducted. Please refer to the "Death Benefit" section of the prospectus for more details. WHERE MAY I FIND OUT MORE ABOUT ACCUMULATION UNIT VALUES? The Condensed Financial Information in Appendix A and Appendix A-1 to this prospectus provides more information about Accumulation Unit values. ARE THERE ANY ADDITIONAL FEATURES? This Contract has other features you may be interested in. These include: - DOLLAR COST AVERAGING. This is a program that allows you to invest a fixed amount of money in Variable Funding Options each month, theoretically giving you a lower average cost per unit over time than a single one-time purchase. Dollar Cost Averaging requires regular investments regardless of fluctuating price levels, and does not guarantee profits or prevent losses in a declining market. Potential investors should consider their financial ability to continue purchases through periods of low price levels. - SYSTEMATIC WITHDRAWAL OPTION. Before the Maturity Date, you can arrange to have money sent to you at set intervals throughout the year. Of course, any applicable income and penalty taxes will apply on amounts withdrawn. Withdrawals in excess of the annual free withdrawal allowance may be subject to a withdrawal charge. - MANAGED DISTRIBUTION PROGRAM. This program allows us to automatically calculate and distribute to you, in November of the applicable tax year, an amount that will satisfy the Internal Revenue Service's minimum distribution requirements imposed on certain contracts once the owner reaches age 70 1/2 or retires. These minimum distributions occur during the accumulation phase. - BENEFICIARY CONTRACT CONTINUANCE (NOT PERMITTED FOR NON-NATURAL BENEFICIARIES). If you die before the Maturity Date, and if the value of any beneficiary's portion of the death benefit is between $20,000 and $1,000,000 as of the date of your death, that beneficiary(ies) may elect to continue his/her portion of the Contract and take the required distributions over time, rather than have the death benefit paid in a lump sum to the beneficiary. 8 FEE TABLE - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Contract. The first table describes the fees and expenses that you will pay at the time that you buy the Contract, surrender the Contract or transfer Contract Value between Variable Funding Options. Expenses shown do not include premium taxes, which may be applicable. CONTRACT OWNER TRANSACTION EXPENSES WITHDRAWAL CHARGE........................................................ 5%(1) (as a percentage of the Purchase Payments and any applicable Purchase Payment Credits withdrawn)
TRANSFER CHARGE.......................................................... $10(2) (assessed on transfers that exceed 12 per year)
LIQUIDITY BENEFIT CHARGE................................................. 5% (During the annuity period, if you have elected the Liquidity Benefit, a surrender charge of 5% of the amount withdrawn will be assessed. See 'Liquidity Benefit')
- --------- (1) The withdrawal charge declines to zero after the Purchase Payment has been in the Contract for 5 years. The charge is as follows:
YEARS SINCE PURCHASE PAYMENT MADE - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 1 years 5% 1 years 2 years 4% 2 years 3 years 3% 3 years 4 years 2% 4 years 5 years 1% 5 years+ 0%
(2) We do not currently assess the transfer charge. The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Underlying Fund fees and expenses. ANNUAL SEPARATE ACCOUNT CHARGES (as a percentage of the average daily net assets of the Separate Account)(3) We will assess a minimum mortality and expense risk charge ("M&E") of 0.80% for the standard death benefit and 1.25% for the optional Death Benefit. Below is a summary of all maximum charges that may apply, depending on the death benefit you select and the optional features you select:
- ------------------------------------------------------------------------------------------ STANDARD DEATH BENEFIT: OPTIONAL DEATH BENEFIT: - ------------------------------------------------------------------------------------------ Mortality and Expense Risk Charge 0.80% Mortality and Expense Risk Charge 1.25% Administrative Expense Charge None Administrative Expense Charge None ---- ---- Total Annual Separate Account Total Annual Separate Account Charges 0.80% Charges 1.25% - ------------------------------------------------------------------------------------------
During the annuity period, if you have elected the Variable Annuitization Floor Benefit, a total annual separate account charge of up to 3.80% or 4.25% may apply. See "Variable Annuitization Floor Benefit". (3) We are waiving the following amounts of the M&E charge on these Subaccounts: 0.15% for the Subaccount investing in the Western Asset Management U.S. Government Portfolio of the Metropolitan Series Fund, Inc.; and 0.11% for the Subaccount investing in the BlackRock High Yield Portfolio of the Metropolitan Series Fund, Inc. We are also waiving an amount equal to the underlying fund expenses that are in excess of 0.91% for the Subaccount investing in the Harris Oakmark International Portfolio of the Met Investors Series Trust; an amount equal to the underlying fund expenses that are in excess of 0.87% for the Subaccount investing in the Lord Abbett Growth and Income Portfolio -- Class B of the Met Investors Series Trust; an amount equal to the underlying fund expenses that are in excess of 0.72% for the Subaccount investing in the Capital Guardian U.S. Equity Portfolio -- Class A of the Metropolitan Series Fund, Inc.; an amount equal to the 9 underlying fund expenses that are in excess of 0.65% for the Subaccount investing in the PIMCO Inflation Bond Portfolio -- Class A of the Met Investors Series Trust; an amount equal to the underlying fund expenses that are in excess of 1.12% for the Subaccount investing in the Lord Abbett Mid-Cap Value Portfolio -- Class B of the Met Investors Series Trust; an amount equal to the underlying fund expenses that are in excess of 1.10% for the Subaccount investing in the Third Avenue Small Cap Value Portfolio -- Class B of the Met Investors Series Trust; an amount equal to the underlying fund expenses that are in excess of 1.18% for the Subaccount investing in the MFS(R) Research International Portfolio -- Class B of the Met Investors Series Trust; the amount, if any, equal to the underlying fund expenses that are in excess of 0.84% for the Subaccount investing in T. Rowe Price Small Cap Growth Portfolio -- Class B of the Metropolitan Series Fund, Inc.; the amount, if any, equal to the underlying fund expenses that are in excess of 0.90% for the Subaccount investing in the Oppenheimer Global Equity Portfolio -- Class B of the Metropolitan Series Fund, Inc.; and the amount, if any, equal to the underlying fund expenses that are in excess of 1.50% for the Subaccount investing in the Van Kampen Mid Cap Growth Portfolio -- Class B of the Met Investors Series Trust. UNDERLYING FUND EXPENSES AS OF DECEMBER 31, 2007 (UNLESS OTHERWISE INDICATED): The first table below shows the range (minimum and maximum) of the total annual operating expenses charged by all of the Underlying Funds, before any voluntary or contractual fee waivers and/or expense reimbursements. The second table shows each Underlying Fund's management fee, distribution and/or service fees (12b-1) if applicable, and other expenses. The Underlying Funds provided this information and we have not independently verified it. More detail concerning each Underlying Fund's fees and expenses is contained in the prospectus for each Underlying Fund. Current prospectuses for the Underlying Funds can be obtained by calling 1-800-842-9406. MINIMUM AND MAXIMUM TOTAL ANNUAL UNDERLYING FUND OPERATING EXPENSES
MINIMUM MAXIMUM ------- ------- TOTAL ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Underlying Fund assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) 0.29% 1.73%
UNDERLYING FUND FEES AND EXPENSES (as a percentage of average daily net assets)
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 American Funds Global Growth Fund........................ 0.53% 0.25% 0.02% -- 0.80% -- 0.80% American Funds Growth Fund..... 0.32% 0.25% 0.01% -- 0.58% -- 0.58% American Funds Growth-Income Fund........................ 0.26% 0.25% 0.01% -- 0.52% -- 0.52% DELAWARE VIP TRUST -- STANDARD CLASS Delaware VIP Small Cap Value Series...................... 0.71% -- 0.10% -- 0.81% -- 0.81% FIDELITY(R) VARIABLE INSURANCE PRODUCTS -- SERVICE CLASS 2 Contrafund(R) Portfolio........ 0.56% 0.25% 0.09% -- 0.90% -- 0.90% Dynamic Capital Appreciation Portfolio+.................. 0.56% 0.25% 0.23% -- 1.04% -- 1.04% Mid Cap Portfolio.............. 0.56% 0.25% 0.10% -- 0.91% -- 0.91% FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Templeton Developing Markets Securities Fund............. 1.23% 0.25% 0.25% -- 1.73% -- 1.73% Templeton Foreign Securities Fund........................ 0.63% 0.25% 0.14% 0.02% 1.04% 0.02% 1.02%(1) JANUS ASPEN SERIES -- SERVICE SHARES Mid Cap Growth Portfolio....... 0.64% 0.25% 0.04% -- 0.93% -- 0.93% LEGG MASON PARTNERS VARIABLE EQUITY TRUST Legg Mason Partners Variable Aggressive Growth Portfolio -- Class I+++..... 0.75% -- 0.07% -- 0.82% -- 0.82%(2) Legg Mason Partners Variable Appreciation Portfolio -- Class I........ 0.69% -- 0.11% 0.01% 0.81% -- 0.81%(2)
10
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- Legg Mason Partners Variable Capital and Income Portfolio -- Class I+....... 0.75% -- 0.13% -- 0.88% -- 0.88% Legg Mason Partners Variable Dividend Strategy Portfolio+++................ 0.65% -- 0.33% -- 0.98% -- 0.98%(2) Legg Mason Partners Variable Equity Index Portfolio -- Class II....... 0.31% 0.25% 0.08% -- 0.64% -- 0.64%(2) Legg Mason Partners Variable Fundamental Value Portfolio -- Class I........ 0.75% -- 0.08% -- 0.83% -- 0.83%(2) Legg Mason Partners Variable International All Cap Opportunity Portfolio+++.... 0.85% -- 0.26% -- 1.11% -- 1.11%(2) Legg Mason Partners Variable Investors Portfolio -- Class I........................... 0.62% -- 0.14% -- 0.76% -- 0.76%(2) Legg Mason Partners Variable Large Cap Growth Portfolio -- Class I++...... 0.75% -- 0.15% -- 0.90% -- 0.90%(3) Legg Mason Partners Variable Small Cap Growth Portfolio -- Class I........ 0.75% -- 0.35% -- 1.10% -- 1.10%(2) Legg Mason Partners Variable Social Awareness Portfolio++................. 0.67% -- 0.38% -- 1.05% -- 1.05%(2) LEGG MASON PARTNERS VARIABLE INCOME TRUST Legg Mason Partners Variable Adjustable Rate Income Portfolio++................. 0.55% 0.25% 0.60% -- 1.40% -- 1.40%(2) Legg Mason Partners Variable High Income Portfolio++..... 0.60% -- 0.15% -- 0.75% -- 0.75%(2) MET INVESTORS SERIES TRUST BlackRock High Yield Portfolio -- Class A........ 0.60% -- 0.13% -- 0.73% -- 0.73% BlackRock Large Cap Core Portfolio -- Class E........ 0.58% 0.15% 0.06% -- 0.79% -- 0.79% Clarion Global Real Estate Portfolio -- Class A........ 0.61% -- 0.04% -- 0.65% -- 0.65% Dreman Small Cap Value Portfolio -- Class A........ 0.79% -- 0.13% -- 0.92% -- 0.92%(4) Harris Oakmark International Portfolio -- Class A........ 0.77% -- 0.09% -- 0.86% -- 0.86% Janus Forty Portfolio -- Class A........................... 0.65% -- 0.05% -- 0.70% -- 0.70% Lazard Mid Cap Portfolio -- Class A........ 0.69% -- 0.07% -- 0.76% -- 0.76% Legg Mason Partners Managed Assets Portfolio -- Class A........................... 0.50% -- 0.12% -- 0.62% -- 0.62% Lord Abbett Bond Debenture Portfolio -- Class A........ 0.49% -- 0.05% -- 0.54% -- 0.54% Lord Abbett Growth and Income Portfolio -- Class B........ 0.49% 0.25% 0.03% -- 0.77% -- 0.77% Lord Abbett Mid Cap Value Portfolio -- Class B........ 0.67% 0.25% 0.09% -- 1.01% -- 1.01% Met/AIM Capital Appreciation Portfolio -- Class A........ 0.76% -- 0.10% -- 0.86% -- 0.86% Met/AIM Small Cap Growth Portfolio -- Class A........ 0.86% -- 0.06% -- 0.92% -- 0.92% MFS(R) Emerging Markets Equity Portfolio -- Class A+....... 1.00% -- 0.25% -- 1.25% -- 1.25% MFS(R) Research International Portfolio -- Class B+....... 0.70% 0.25% 0.09% -- 1.04% -- 1.04% PIMCO Inflation Protected Bond Portfolio -- Class A........ 0.50% -- 0.05% -- 0.55% -- 0.55% Pioneer Fund Portfolio -- Class A........................... 0.75% -- 0.23% -- 0.98% -- 0.98%(5) Pioneer Strategic Income Portfolio -- Class A........ 0.60% -- 0.09% -- 0.69% -- 0.69%(4)
11
DISTRIBUTION TOTAL CONTRACTUAL FEE NET TOTAL AND/OR ANNUAL WAIVER ANNUAL MANAGEMENT SERVICE OTHER ACQUIRED FUND FEES OPERATING AND/OR EXPENSE OPERATING UNDERLYING FUND FEE (12b-1) FEES EXPENSES AND EXPENSES* EXPENSES REIMBURSEMENT EXPENSES** - --------------- ---------- ------------ -------- ------------------ --------- --------------- --------------- Third Avenue Small Cap Value Portfolio -- Class B........ 0.73% 0.25% 0.03% -- 1.01% -- 1.01% Van Kampen Mid Cap Growth Portfolio -- Class B+....... 0.70% 0.25% 0.18% -- 1.13% -- 1.13% METROPOLITAN SERIES FUND, INC. BlackRock Aggressive Growth Portfolio -- Class D........ 0.71% 0.10% 0.05% -- 0.86% -- 0.86% BlackRock Bond Income Portfolio -- Class A........ 0.38% -- 0.06% -- 0.44% 0.01% 0.43%(6) BlackRock Money Market Portfolio -- Class A........ 0.33% -- 0.07% -- 0.40% 0.01% 0.39%(7) Capital Guardian U.S. Equity Portfolio -- Class A+....... 0.66% -- 0.05% -- 0.71% -- 0.71% Davis Venture Value Portfolio -- Class A........ 0.69% -- 0.04% -- 0.73% -- 0.73% FI Large Cap Portfolio -- Class A........................... 0.77% -- 0.07% -- 0.84% -- 0.84% FI Value Leaders Portfolio -- Class D........ 0.64% 0.10% 0.07% -- 0.81% -- 0.81% Jennison Growth Portfolio -- Class B+....... 0.63% 0.25% 0.04% -- 0.92% -- 0.92% Lehman Brothers(R) Aggregate Bond Index Portfolio -- Class A........ 0.25% -- 0.05% -- 0.30% 0.01% 0.29%(8) MetLife Aggressive Allocation Portfolio -- Class B........ 0.10% 0.25% 0.04% 0.73% 1.12% 0.04% 1.08%(9) MetLife Conservative Allocation Portfolio -- Class B........ 0.10% 0.25% 0.05% 0.59% 0.99% 0.05% 0.94%(9) MetLife Conservative to Moderate Allocation Portfolio -- Class B........ 0.10% 0.25% 0.01% 0.64% 1.00% 0.01% 0.99%(9) MetLife Moderate Allocation Portfolio -- Class B........ 0.08% 0.25% 0.01% 0.67% 1.01% -- 1.01%(9) MetLife Moderate to Aggressive Allocation Portfolio -- Class B........ 0.08% 0.25% 0.01% 0.70% 1.04% -- 1.04%(9) MetLife Stock Index Portfolio -- Class A........ 0.25% -- 0.04% -- 0.29% 0.01% 0.28%(10) MFS(R) Total Return Portfolio -- Class F........ 0.53% 0.20% 0.05% -- 0.78% -- 0.78% MFS(R) Value Portfolio -- Class A........................... 0.72% -- 0.05% -- 0.77% 0.07% 0.70%(11) Morgan Stanley EAFE(R) Index Portfolio -- Class A........ 0.30% -- 0.12% 0.01% 0.43% 0.01% 0.42%(12) Oppenheimer Global Equity Portfolio -- Class B........ 0.51% 0.25% 0.10% -- 0.86% -- 0.86% Russell 2000(R) Index Portfolio -- Class A........ 0.25% -- 0.07% 0.01% 0.33% 0.01% 0.32%(10) T. Rowe Price Small Cap Growth Portfolio -- Class B........ 0.51% 0.25% 0.08% -- 0.84% -- 0.84% Western Asset Management U.S. Government Portfolio -- Class A........ 0.49% -- 0.05% -- 0.54% -- 0.54% PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS Total Return Portfolio......... 0.25% -- 0.58% -- 0.83% -- 0.83% VAN KAMPEN LIFE INVESTMENT TRUST -- CLASS II Comstock Portfolio............. 0.56% 0.25% 0.03% -- 0.84% -- 0.84% Enterprise Portfolio+.......... 0.50% 0.25% 0.17% -- 0.92% -- 0.92% WELLS FARGO VARIABLE TRUST VT Small/Mid Cap Value Fund+... 0.75% 0.25% 0.46% -- 1.46% 0.32% 1.14%(13)
- --------- * Acquired Fund Fees and Expenses are fees and expenses incurred indirectly by a portfolio as a result of investing in shares of one or more underlying portfolios. ** Net Total Annual Operating Expenses do not reflect: (1) voluntary waivers of fees or expenses; (2) contractual waivers that are in effect for less than one year from the date of this Prospectus; or (3) expense reductions resulting from custodial fee credits or directed brokerage arrangements. + Not available under all Contracts. Availability depends on Contract issue date. 12 ++ Fees and expenses of this Portfolio are based on the Portfolio's fiscal year ended October 31, 2007. (1) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the Sweep Money Fund which is the "acquired fund" in this case) to the extent of the Fund's fees and expenses of the acquired fund. This reduction is required by the Trust's board of trustees and an exemptive order by the Securities and Exchange Commission; this arrangement will continue as long as the exemptive order is relied upon. (2) Other Expenses have been revised to reflect the estimated effect of additional prospectus and shareholder report printing and mailing expenses expected to be incurred by the fund going forward. (3) Other Expenses have been revised to reflect the estimated effect of additional prospectus and shareholder report printing and mailing expenses expected to be incurred by the fund going forward. Due to contractual waivers and/or reimbursements in place through March 1, 2009, the Portfolio's actual total net operating expenses, excluding brokerage, taxes, interest and extraordinary expenses, are not expected to exceed 0.78% prior to that date. (4) The Management Fee has been restated to reflect an amended management fee agreement, as if the agreement had been in effect during the preceding fiscal year. (5) Other Expenses have been restated to reflect a change in Transfer Agent fee schedule as if fees had been in effect during the previous fiscal year. (6) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to the annual rate of 0.325% for the amounts over $1 billion but less than $2 billion. (7) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to the annual rate of 0.345% for the first $500 million of the Portfolio's average daily net assets and 0.335% for the next $500 million. (8) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to 0.244%. (9) The Portfolio is a "fund of funds" that invests substantially all of its assets in other portfolios of the Metropolitan Series Fund, Inc. and the Met Investors Series Trust. Because the Portfolio invests in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios in which it invests, including the management fee. MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to waive fees or pay all expenses (other than acquired fund fees and expenses, brokerage costs, taxes, interest and any extraordinary expenses) so as to limit the net operating expenses of the Portfolio (other than acquired fund fees and expenses, brokerage costs, taxes, interest and any extraordinary expenses) to 0.10% for the Class A shares, 0.35% for the Class B shares and 0.25% for the Class E shares. (10) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to 0.243%. (11) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to the annual rate of 0.65% for the first $1.25 billion of the Portfolio's average daily net assets, 0.60% for the next $250 million and 0.50% for amounts over $1.5 billion. (12) MetLife Advisers, LLC has contractually agreed, for the period April 28, 2008 through April 30, 2009, to reduce the Management Fee for each Class of the Portfolio to 0.293%. (13) The adviser has committed through April 30, 2009, to waive fees and/or reimburse expenses to the extent necessary to maintain the Fund's net operating expense ratio, excluding the expenses of any money market fund held by the Fund, as shown. EXAMPLE The example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include Contract Owner transaction expenses, Contract fees, separate account annual expenses, and Underlying Fund total annual operating expenses. The example does not represent past or future expenses. Your actual expenses may be more or less than those shown. The example assumes that you invest $10,000 in the Contract for the time periods indicated and that your investment has a 5% return each year. The example reflects the annual Contract administrative charge, factoring in that the charge is waived for Contracts over a certain value. Additionally, the example is based on the minimum and maximum Underlying Fund total annual operating expenses shown above, and does not reflect any Underlying Fund fee waivers and/or expense reimbursements. The example assumes that you have elected the Optional Death Benefit and that you have allocated all of your Contract Value to either the Underlying Fund with the maximum total annual operating expenses or the Underlying Fund with the minimum total annual operating expenses. Your actual expenses will be less than those shown if you do not elect the Optional Death Benefit. 13 EXAMPLE 1. MAXIMUM CHARGES (assuming you select the Optional Death Benefit)
IF CONTRACT IS SURRENDERED AT THE IF CONTRACT IS NOT SURRENDERED OR END OF PERIOD SHOWN: ANNUITIZED AT END OF PERIOD SHOWN: ---------------------------------------------- ---------------------------------------------- FUNDING OPTION 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS - -------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Underlying Fund with Maximum Total Annual Operating Expenses......... $811 $1,190 $1,693 $3,383 $386 $1,172 $1,976 $4,065 Underlying Fund with Minimum Total Annual Operating Expenses......... $664 $748 $955 $1,907 $240 $740 $1,266 $2,705
CONDENSED FINANCIAL INFORMATION - -------------------------------------------------------------------------------- See Appendices A and A-1. THE ANNUITY CONTRACT AND YOUR RETIREMENT PLAN - -------------------------------------------------------------------------------- If you participate through a retirement plan or other group arrangement, the Contract may provide that all or some of your rights or choices as described in this Prospectus are subject to the plan's terms. For example, limitations on your rights may apply to investment choices, Purchase Payments, withdrawals, transfers, loans, the death benefit and Annuity options. The Contract may provide that a plan administrative fee will be paid by making a withdrawal from your Contract Value. Also, the Contract may require that you or your beneficiary obtain a signed authorization from your employer or plan administrator to exercise certain rights. We may rely on your employer's or plan administrator's statements to us as to the terms of the plan or your entitlement to any amounts. We are not a party to the retirement plan. We will not be responsible for determining what the plan says. You should consult the Contract and plan document to see how you may be affected. If you are a Texas Optional Retirement Program participant, please see Appendix E for specific information which applies to you. THE ANNUITY CONTRACT - -------------------------------------------------------------------------------- MetLife Retirement Account Annuity is a Contract between the Contract Owner and the Company. This is the prospectus -- it is not the Contract. The prospectus highlights many Contract provisions to focus your attention on the Contract's essential features. Your rights and obligations under the Contract will be determined by the language of the Contract itself. When you receive your Contract, we suggest you read it promptly and carefully. There may be differences in your Contract from the descriptions in this prospectus because of the requirements of the state where we issued your Contract. We will include any such differences in your Contract. The Company offers several different annuities that your investment professional may be authorized to offer to you. Each annuity offers different features and benefits that may be appropriate for you. In particular, the annuities differ based on variations in the standard and optional death benefit protection provided for your beneficiaries, the availability of optional living benefits, the ability to access your Contract Value if necessary and the charges that you will be subject to if you make a withdrawal or surrender the annuity. The separate account charges and other charges may be different between each annuity we offer. Optional death benefits and living benefits are subject to a separate charge for the additional protections they offer to you and your beneficiaries. Furthermore, annuities that offer greater flexibility to access your Contract Value generally are subject to higher separate account charges than annuities that deduct charges if you make a withdrawal or surrender. We encourage you to evaluate the fees, expenses, benefits and features of this annuity Contract against those of other investment products, including other annuity products offered by us and other insurance companies. Before purchasing this or any other investment product you should consider whether the product you purchase is consistent 14 with your risk tolerance, investment objectives, investment time horizon, financial and tax situation, liquidity needs and how you intend to use the annuity. You make Purchase Payments to us and we credit them to your Contract. We promise to pay you an income, in the form of Annuity Payments, beginning on a future date that you choose, the Maturity Date. The Purchase Payments accumulate tax- deferred in the funding options of your choice. We offer multiple Variable Funding Options. We may also offer a Fixed Account option. Where permitted by law, we reserve the right to restrict Purchase Payments into the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified under the Contract. The Contract Owner assumes the risk of gain or loss according to the performance of the Variable Funding Options. The Contract Value is the amount of Purchase Payments and any associated Purchase Payment Credits, plus or minus any investment experience on the amounts you allocate to the Separate Account ("Separate Account Contract Value") or interest on the amounts you allocate to the Fixed Account ("Fixed Account Contract Value"). The Contract Value also reflects all withdrawals made and charges deducted. There is generally no guarantee that at the Maturity Date the Contract Value will equal or exceed the total Purchase Payments made under the Contract. The date the Contract and its benefits become effective is referred to as the Contract Date. Each 12-month period following the Contract Date is called a Contract Year. Certain changes and elections must be made in writing to the Company. Where the term "Written Request" is used, it means that you must send written information to our Home Office in a form and content satisfactory to us. The Contract is not available for purchase if the proposed owner or Annuitant is age 81 or older. The Contract is not available to new purchasers. Purchase of this Contract through a tax-qualified retirement plan or IRA does not provide any additional tax deferral benefits beyond those provided by the plan or the IRA. Accordingly, if you are purchasing this Contract through a plan or IRA, you should consider purchasing this Contract for its death benefit, annuity option benefits, and other non-tax-related benefits. You should consult with your financial adviser to determine if this Contract is appropriate for you. Because the Contract proceeds must be distributed within the time periods required by the federal Internal Revenue Code, the right of a spouse to continue the Contract, and all Contract provisions relating to spousal continuation, are available only to a person who is defined as a "spouse" under the federal Defense of Marriage Act, or any other applicable federal law. CONTRACT OWNER INQUIRIES Any questions you have about your Contract should be directed to our Home Office at 1-800-842-9406. PURCHASE PAYMENTS Your initial Purchase Payment is due and payable before the Contract becomes effective. The initial Purchase Payment must be at least $20,000. You may make additional payments of at least $5,000 at any time. No additional payments are allowed if this Contract is purchased with a beneficiary-directed transfer of death benefit proceeds. Under certain circumstances, we may waive the minimum Purchase Payment requirement. Purchase Payments over $1,000,000 may be made only with our prior consent. Purchase Payments may be made at any time while the Annuitant is alive and before Annuity Payments begin. We will apply the initial Purchase Payment less any applicable premium tax within two business days after we receive it at our Home Office with a properly completed application or order request. If your request or other information accompanying the initial Purchase Payment is incomplete when received, we will hold the Purchase Payment for up to five business days. If we cannot obtain the necessary information within five business days of our receipt, we will return the Purchase Payment in full, unless you specifically consent for us to keep it until you provide the necessary information. We accept Purchase Payments made by check or cashier's check. We do not accept cash, money orders or traveler's checks. We reserve the right to refuse Purchase Payments made via a personal check in excess of $100,000. Purchase Payments over $100,000 may be accepted in other forms, including but not limited to, EFT/wire transfers, certified checks, corporate checks, and checks written on financial institutions. The form in which we receive a 15 Purchase Payment may determine how soon subsequent disbursement requests may be fulfilled. (See "Access To Your Money"). Purchase Payments allocated to the Fixed Account are not eligible for Purchase Payment Credits. We will credit subsequent Purchase Payments to a Contract on the same business day we receive it, if received in good order by our Home Office by 4:00 p.m. Eastern time. A business day is any day that the New York Stock Exchange is open for regular trading (except when trading is restricted due to an emergency as defined by the Securities and Exchange Commission (the "SEC")). Where permitted by state law, we reserve the right to restrict Purchase Payments into the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified under the Contract. We will provide you with the address of the office to which Purchase Payments are to be sent. If you send Purchase Payments or transaction requests to an address other than the one we have designated for receipt of such Purchase Payments or requests, we may return the Purchase Payment to you, or there may be a delay in applying the Purchase Payment or transaction to your Contract. PURCHASE PAYMENTS -- SECTION 403(B) PLANS Recently, the Internal Revenue Service announced new regulations affecting Section 403(b) plans and arrangements. As part of these regulations, employers will need to meet certain requirements in order for their employees' annuity contracts that fund these programs to retain a tax deferred status under Section 403(b). These regulations are generally effective January 1, 2009. Prior to the new rules, transfers of one annuity contract to another would not result in a loss of tax deferred status under 403(b) under certain conditions (so-called "90-24 transfers"). The new regulations have the following effect regarding transfers: (1) a newly issued contract funded by a transfer which is completed AFTER September 24, 2007, is subject to the employer requirements referred to above; (2) additional purchase payments made AFTER September 24, 2007, to a contract that was funded by a 90-24 transfer ON OR BEFORE September 24, 2007, MAY subject the contract to this new employer requirement. If your Contract/Certificate was issued previously as a result of a 90-24 transfer completed on or before September 24, 2007, and you have never made salary reduction contributions into your Contract/Certificate, we urge you to consult with your tax advisor prior to making additional purchase payments. PURCHASE PAYMENT CREDITS If, for an additional charge, you select the Optional Death Benefit, we will add a credit to your Contract with each Purchase Payment. Each credit is added to the Contract Value when the corresponding Purchase Payment is applied, and will equal 2% of each Purchase Payment. These credits are applied pro rata to the same Variable Funding Options to which your Purchase Payment was applied. Purchase Payments allocated to the Fixed Account are not eligible for Purchase Payment Credits. You should know that over time and under certain circumstances (such as a period of poor market performance) the costs associated with the Purchase Payment Credits may more than offset the Purchase Payment Credits and related earnings. You should consider this possibility before purchasing the Optional Death Benefit. CONSERVATION CREDIT If you are purchasing this Contract with funds from another Contract issued by us or our affiliates, you may receive a conservation credit to your Purchase Payments. If applied, we will determine the amount of such credit. ACCUMULATION UNITS The period between the Contract Date and the Maturity Date is the Accumulation Period. During the Accumulation Period, an Accumulation Unit is used to calculate the value of a Contract. Each Variable Funding Option has a corresponding Accumulation Unit value. The Accumulation Units are valued each business day and their values may increase or decrease from day to day. The daily change in value of an Accumulation Unit each day is based on the investment performance of the corresponding Underlying Fund, and the deduction of separate account charges 16 shown in the Fee Table in this prospectus. The number of Accumulation Units we will credit to your Contract once we receive a Purchase Payment or transfer request (or liquidate for a withdrawal request) is determined by dividing the amount directed to each Variable Funding Option (or taken from each Variable Funding Option) by the value of its Accumulation Unit. Normally we calculate the value of an Accumulation Unit for each Variable Funding Option as of the close of regular trading (generally 4:00 p.m. Eastern time) each day the New York Stock Exchange is open. After the value is calculated, we credit your Contract. During the annuity period (i.e., after the Maturity Date), you are credited with Annuity Units. THE VARIABLE FUNDING OPTIONS You choose the Variable Funding Options to which you allocate your Purchase Payments. From time to time we may make new Variable Funding Options available. These Variable Funding Options are Subaccounts of the Separate Account. The Subaccounts invest in the Underlying Funds. You are not investing directly in the Underlying Fund. Each Underlying Fund is a portfolio of an open-end management investment company that is registered with the SEC under the Investment Company Act of 1940, as amended ( the "1940 Act"). These Underlying Funds are not publicly traded and are only offered through variable annuity contracts, variable life insurance products, and maybe in some instances, certain retirement plans. They are not the same retail mutual funds as those offered outside of a variable annuity or variable life insurance product, although the investment practices and fund names may be similar and the portfolio managers may be identical. Accordingly, the performance of the retail mutual fund is likely to be different from that of the Underlying Fund. We select the Underlying Funds offered through this Contract based on a number of criteria, including asset class coverage, the strength of the adviser's or subadviser's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we consider during the selection process is whether the Underlying Fund's adviser or subadviser is one of our affiliates or whether the Underlying Fund, its adviser, its subadviser(s), or an affiliate will make payments to us or our affiliates. In this regard, the profit distributions we receive from our affiliated investment advisers are a component of the total revenue that we consider in configuring the features and investment choices available in the variable insurance products that we and our affiliated insurance companies issue. Since we and our affiliated insurance companies may benefit more from the allocation of assets to portfolios advised by our affiliates than those that are not, we may be more inclined to offer portfolios advised by our affiliates in the variable insurance products we issue. For additional information on these arrangements, see "Payments We Receive." We review the Underlying Funds periodically and may remove an Underlying Fund or limit its availability to new Purchase Payments and/or transfers of Contract Value if we determine that the Underlying Fund no longer meets one or more of the selection criteria, and/or if the Underlying Fund has not attracted significant allocations from Contract Owners. In some cases, we have included Underlying Funds based on recommendations made by broker-dealer firms. These broker-dealer firms may receive payments from the Underlying Funds they recommend and may benefit accordingly from the allocation of Contract Value to such Underlying Funds. When the Company develops a variable annuity product in cooperation with a fund family or distributor (e.g., a "private label" product) the Company will generally include Underlying Funds based on recommendations made by the fund family or distributor, whose selection criteria may differ from the Company's selection criteria. WE DO NOT PROVIDE ANY INVESTMENT ADVICE AND DO NOT RECOMMEND OR ENDORSE ANY PARTICULAR UNDERLYING FUND. YOU BEAR THE RISK OF ANY DECLINE IN THE CONTRACT VALUE OF YOUR CONTRACT RESULTING FROM THE PERFORMANCE OF THE UNDERLYING FUNDS YOU HAVE CHOSEN. If investment in the Underlying Funds or a particular Underlying Fund is no longer possible, in our judgment becomes inappropriate for purposes of the Contract, or for any other reason in our sole discretion, we may substitute another Underlying Fund or Underlying Funds without your consent. The substituted Underlying Fund may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Purchase Payments, or both. However, we will not make such substitution without any necessary approval of the SEC and applicable state insurance departments. Furthermore, we may close Underlying Funds to allocations of Purchase Payments or Contract Value, or both, at any time in our sole discretion. In certain circumstances, the Company's ability to remove or replace an Underlying Fund may be limited by the terms of a five-year agreement between MetLife, Inc. ("MetLife") and Legg Mason, Inc. ("Legg Mason") relating to the use of certain Underlying Funds advised by Legg Mason affiliates. The agreement sets forth the conditions under which the Company can remove an Underlying Fund, which, in some cases, may differ from the Company's own 17 selection criteria. In addition, during the term of the agreement, subject to the Company's fiduciary and other legal duties, the Company is generally obligated in the first instance to consider Underlying Funds advised by Legg Mason affiliates in seeking to make a substitution for an Underlying Fund advised by a Legg Mason affiliate. The agreement was originally entered into on July 1, 2005 by MetLife and certain affiliates of Citigroup Inc. ("Citigroup") as part of MetLife's acquisition of the Travelers insurance companies -- The Travelers Insurance Company and The Travelers Life and Annuity Company -- (now MetLife Insurance Company of Connecticut) -- from Citigroup. Legg Mason replaced the Citigroup affiliates as party to the agreement when Citigroup sold its asset management business to Legg Mason. The agreement also obligates Legg Mason to continue making payments to the Company with respect to Underlying Funds advised by Legg Mason affiliates, on the same terms provided for in administrative services agreements between Citigroup's asset management affiliates and the Travelers insurance companies that predated the acquisition. PAYMENTS WE RECEIVE. As described above, an investment adviser (other than our affiliates MetLife Advisers, LLC, and Met Investors Advisory, LLC) or subadviser of an Underlying Fund, or its affiliates, may make payments to the Company and/or certain of our affiliates. These payments may be used for a variety of purposes, including payment of expenses for certain administrative, marketing and support services with respect to the Contracts and, in the Company's role as an intermediary with respect to the Underlying Funds. The Company and its affiliates may profit from these payments. These payments may be derived, in whole or in part, from the advisory fee deducted from Underlying Fund assets. Contract Owners, through their indirect investment in the Underlying Funds, bear the costs of these advisory fees (see the Underlying Funds' prospectuses for more information). The amount of the payments we receive is based on a percentage of the assets of the Underlying Funds attributable to the Contracts and certain other variable insurance products that the Company and its affiliates issue. These percentages differ and some advisers or subadvisers (or other affiliates) may pay the Company more than others. These percentages currently range up to 0.50%. Additionally, an investment adviser or subadviser of an Underlying Fund or its affiliates may provide the Company with wholesaling services that assist in the distribution of the Contracts and may pay the Company and/or certain of our affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the adviser or subadviser (or their affiliate) with increased access to persons involved in the distribution of the Contracts. The Company and/or certain of its affiliated insurance companies have joint ownership interests in its affiliated investment advisers MetLife Advisers, LLC and Met Investors Advisory, LLC, which are formed as "limited liability companies." The Company's ownership interests in MetLife Advisers, LLC and Met Investors Advisory, LLC entitle us to profit distributions if the adviser makes a profit with respect to the advisory fees it receives from the Underlying Fund. The Company will benefit accordingly from assets allocated to the Underlying Funds to the extent they result in profits to the advisers. (See "Fee Table -- Underlying Fund Fees and Expenses" for information on the management fees paid by the Underlying Funds and the Statement of Additional Information for the Underlying Funds for information on the management fees paid by the advisers to the subadvisers.) Certain Underlying Funds have adopted a Distribution Plan under Rule 12b-1 of the 1940 Act. An Underlying Fund's 12b-1 Plan, if any, is described in more detail in the Underlying Fund's prospectus. (See "Fee Table -- Underlying Fund Fees and Expenses" and "Other Information -- Distribution of the Contracts.") Any payments we receive pursuant to those 12b-1 Plans are paid to us or our distributor. Payments under an Underlying Fund's 12b-1 Plan decrease the Underlying Fund's investment return. We make certain payments to American Funds Distributors, Inc., principal underwriters for the American Funds Insurance Series(R). (See "Distribution of Contracts"). Each Underlying Fund has different investment objectives and risks. The Underlying Fund prospectuses contain more detailed information on each Underlying Fund's investment strategy, investment advisers and its fees. You may obtain an Underlying Fund prospectus by calling 1-800-842-9406 or through your registered representative. We do not guarantee the investment results of the Underlying Funds. The current Variable Funding Options are listed below, along with their investment advisers and any subadviser. 18
FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 2 American Funds Global Growth Fund Seeks capital appreciation Capital Research and Management through stocks. Company American Funds Growth Fund Seeks capital appreciation Capital Research and Management through stocks. Company American Funds Growth-Income Fund Seeks both capital appreciation Capital Research and Management and income. Company DELAWARE VIP TRUST -- STANDARD CLASS Delaware VIP Small Cap Value Seeks capital appreciation. Delaware Management Company Series FIDELITY(R) VARIABLE INSURANCE PRODUCTS -- SERVICE CLASS 2 Contrafund(R) Portfolio Seeks long-term capital Fidelity Management & Research appreciation. Company Dynamic Capital Appreciation Seeks capital appreciation. Fidelity Management & Research Portfolio+ Company Mid Cap Portfolio Seeks long-term growth of Fidelity Management & Research capital. Company FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2 Templeton Developing Markets Seeks long-term capital Templeton Asset Management Ltd. Securities Fund appreciation. Templeton Foreign Securities Fund Seeks long-term capital growth. Templeton Investment Counsel, LLC Subadviser: Franklin Templeton Investment Management Limited JANUS ASPEN SERIES -- SERVICE SHARES Mid Cap Growth Portfolio Seeks long-term growth of Janus Capital Management LLC capital. LEGG MASON PARTNERS VARIABLE EQUITY TRUST Legg Mason Partners Variable Seeks capital appreciation. Legg Mason Partners Fund Advisor, Aggressive Growth LLC Portfolio -- Class I+ Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks long-term appreciation of Legg Mason Partners Fund Advisor, Appreciation Portfolio -- Class capital. LLC I Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks total return (that is, a Legg Mason Partners Fund Advisor, Capital and Income combination of income and long- LLC Portfolio -- Class I+ term capital appreciation). Subadvisers: Western Asset Management Company; ClearBridge Advisors, LLC; Western Asset Management Company Limited Legg Mason Partners Variable Seeks capital appreciation, Legg Mason Partners Fund Advisor, Dividend Strategy Portfolio+ principally through investments LLC in dividend-paying stocks. Subadviser: ClearBridge Advisors, LLC
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- Legg Mason Partners Variable Seeks investment results that, Legg Mason Partners Fund Advisor, Equity Index Portfolio -- Class before expenses, correspond to LLC II the price and yield performance Subadviser: Batterymarch of the S&P 500(R) Index. Financial Management, Inc. Legg Mason Partners Variable Seeks long-term capital growth. Legg Mason Partners Fund Advisor, Fundamental Value Current income is a secondary LLC Portfolio -- Class I consideration. Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks total return on assets from Legg Mason Partners Fund Advisor, International All Cap growth of capital and income. LLC Opportunity Portfolio+ Subadviser: Global Currents Investment Management, LLC Legg Mason Partners Variable Seeks long-term growth of Legg Mason Partners Fund Advisor, Investors Portfolio -- Class I capital. Current income is a LLC secondary objective. Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks long-term growth of Legg Mason Partners Fund Advisor, Large Cap Growth capital. LLC Portfolio -- Class I Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks long-term growth of Legg Mason Partners Fund Advisor, Small Cap Growth capital. LLC Portfolio -- Class I Subadviser: ClearBridge Advisors, LLC Legg Mason Partners Variable Seeks capital appreciation and Legg Mason Partners Fund Advisor, Social Awareness Portfolio retention of net investment LLC income. Subadviser: Legg Mason Investment Counsel, LLC LEGG MASON PARTNERS VARIABLE INCOME TRUST Legg Mason Partners Variable Seeks to provide high current Legg Mason Partners Fund Advisor, Adjustable Rate Income income and to limit the degree of LLC Portfolio fluctuation of its net asset Subadviser: Western Asset value resulting from movements in Management Company interest rates. Legg Mason Partners Variable High Seeks high current income. Legg Mason Partners Fund Advisor, Income Portfolio Secondarily, seeks capital LLC appreciation. Subadvisers: Western Asset Management Company; Western Asset Management Company Limited MET INVESTORS SERIES TRUST BlackRock High Yield Seeks to maximize total return, Met Investors Advisory, LLC Portfolio -- Class A consistent with income generation Subadviser: BlackRock Financial and prudent investment Management, Inc. management. BlackRock Large Cap Core Seeks long-term capital growth. Met Investors Advisory, LLC Portfolio -- Class E Subadviser: BlackRock Advisors, LLC Clarion Global Real Estate Seeks to provide total return Met Investors Advisory, LLC Portfolio -- Class A through investment in real estate Subadviser: ING Clarion Real securities, emphasizing both Estate Securities, L.P. capital appreciation and current income. Dreman Small Cap Value Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class A Subadviser: Dreman Value Management, L.L.C.
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- Harris Oakmark International Seeks long-term capital Met Investors Advisory, LLC Portfolio -- Class A appreciation. Subadviser: Harris Associates L.P. Janus Forty Portfolio -- Class A Seeks capital appreciation. Met Investors Advisory, LLC Subadviser: Janus Capital Management LLC Lazard Mid Cap Portfolio -- Class Seeks long-term growth of Met Investors Advisory, LLC A capital. Subadviser: Lazard Asset Management LLC Legg Mason Partners Managed Seeks high total return. Met Investors Advisory, LLC Assets Portfolio -- Class A Subadvisers: Batterymarch Financial Management, Inc.; Western Asset Management Company; ClearBridge Advisors, LLC; Legg Mason Global Asset Allocation, LLC Lord Abbett Bond Debenture Seeks high current income and the Met Investors Advisory, LLC Portfolio -- Class A opportunity for capital Subadviser: Lord, Abbett & Co. appreciation to produce a high LLC total return. Lord Abbett Growth and Income Seeks long-term growth of capital Met Investors Advisory, LLC Portfolio -- Class B and income without excessive Subadviser: Lord, Abbett & Co. fluctuation in market value. LLC Lord Abbett Mid Cap Value Seeks capital appreciation Met Investors Advisory, LLC Portfolio -- Class B through investments primarily in Subadviser: Lord, Abbett & Co. equity securities which are LLC believed to be undervalued in the marketplace. Met/AIM Capital Appreciation Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class A Subadviser: Invesco Aim Capital Management, Inc. Met/AIM Small Cap Growth Seeks long-term growth of Met Investors Advisory, LLC Portfolio -- Class A capital. Subadviser: Invesco Aim Capital Management, Inc. MFS(R) Emerging Markets Equity Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class A+ Subadviser: Massachusetts Financial Services Company MFS(R) Research International Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class B+ Subadviser: Massachusetts Financial Services Company PIMCO Inflation Protected Bond Seeks to provide maximum real Met Investors Advisory, LLC Portfolio -- Class A return, consistent with Subadviser: Pacific Investment preservation of capital and Management Company LLC prudent investment management. Pioneer Fund Portfolio -- Class A Seeks reasonable income and Met Investors Advisory, LLC capital growth. Subadviser: Pioneer Investment Management, Inc. Pioneer Strategic Income Seeks a high level of current Met Investors Advisory, LLC Portfolio -- Class A income. Subadviser: Pioneer Investment Management, Inc. Third Avenue Small Cap Value Seeks long-term capital Met Investors Advisory, LLC Portfolio -- Class B appreciation. Subadviser: Third Avenue Management LLC
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- Van Kampen Mid Cap Growth Seeks capital appreciation. Met Investors Advisory, LLC Portfolio -- Class B+ Subadviser: Morgan Stanley Investment Management, Inc. (d/b/a Van Kampen) METROPOLITAN SERIES FUND, INC. BlackRock Aggressive Growth Seeks maximum capital MetLife Advisers, LLC Portfolio -- Class D appreciation. Subadviser: BlackRock Advisors, LLC BlackRock Bond Income Seeks a competitive total return MetLife Advisers, LLC Portfolio -- Class A primarily from investing in Subadviser: BlackRock Advisors, fixed-income securities. LLC BlackRock Money Market Seeks a high level of current MetLife Advisers, LLC Portfolio -- Class A income consistent with Subadviser: BlackRock Advisors, preservation of capital. LLC Capital Guardian U.S. Equity Seeks long-term growth of MetLife Advisers, LLC Portfolio -- Class A+ capital. Subadviser: Capital Guardian Trust Company Davis Venture Value Seeks growth of capital. MetLife Advisers, LLC Portfolio -- Class A Subadviser: Davis Selected Advisers, L.P. FI Large Cap Portfolio -- Class A Seeks long-term growth of MetLife Advisers, LLC capital. Subadviser: Pyramis Global Advisors, LLC FI Value Leaders Seeks long-term growth of MetLife Advisers, LLC Portfolio -- Class D capital. Subadviser: Pyramis Global Advisors, LLC Jennison Growth Seeks long-term growth of MetLife Advisers, LLC Portfolio -- Class B+ capital. Subadviser: Jennison Associates LLC Lehman Brothers(R) Aggregate Bond Seeks to equal the performance of MetLife Advisers, LLC Index Portfolio -- Class A the Lehman Brothers(R) Aggregate Subadviser: MetLife Investment Bond Index. Advisors Company, LLC MetLife Aggressive Allocation Seeks growth of capital. MetLife Advisers, LLC Portfolio -- Class B MetLife Conservative Allocation Seeks high level of current MetLife Advisers, LLC Portfolio -- Class B income, with growth of capital as a secondary objective. MetLife Conservative to Moderate Seeks high total return in the MetLife Advisers, LLC Allocation Portfolio -- Class B form of income and growth of capital, with a greater emphasis on income. MetLife Moderate Allocation Seeks a balance between a high MetLife Advisers, LLC Portfolio -- Class B level of current income and growth of capital, with a greater emphasis on growth of capital. MetLife Moderate to Aggressive Seeks growth of capital. MetLife Advisers, LLC Allocation Portfolio -- Class B MetLife Stock Index Seeks to equal the performance of MetLife Advisers, LLC Portfolio -- Class A the Standard & Poor's 500(R) Subadviser: MetLife Investment Composite Stock Price Index. Advisors Company, LLC MFS(R) Total Return Seeks a favorable total return MetLife Advisers, LLC Portfolio -- Class F through investment in a Subadviser: Massachusetts diversified portfolio. Financial Services Company
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FUNDING INVESTMENT INVESTMENT OPTION OBJECTIVE ADVISER/SUBADVISER - --------------------------------- --------------------------------- --------------------------------- MFS(R) Value Portfolio -- Class A Seeks capital appreciation and MetLife Advisers, LLC reasonable income. Subadviser: Massachusetts Financial Services Company Morgan Stanley EAFE(R) Index Seeks to equal the performance of MetLife Advisers, LLC Portfolio -- Class A the MSCI EAFE(R) Index. Subadviser: MetLife Investment Advisors Company, LLC Oppenheimer Global Equity Seeks capital appreciation. MetLife Advisers, LLC Portfolio -- Class B Subadviser: OppenheimerFunds, Inc. Russell 2000(R) Index Seeks to equal the return of the MetLife Advisers, LLC Portfolio -- Class A Russell 2000(R) Index. Subadviser: MetLife Investment Advisors Company, LLC T. Rowe Price Small Cap Growth Seeks long-term capital growth. MetLife Advisers, LLC Portfolio -- Class B Subadviser: T. Rowe Price Associates, Inc. Western Asset Management U.S. Seeks to maximize total return MetLife Advisers, LLC Government Portfolio -- Class A consistent with preservation of Subadviser: Western Asset capital and maintenance of Management Company liquidity. PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS Total Return Portfolio Seeks maximum total return, Pacific Investment Management consistent with preservation of Company LLC capital and prudent investment management. VAN KAMPEN LIFE INVESTMENT TRUST -- CLASS II Comstock Portfolio Seeks capital growth and income Van Kampen Asset Management through investments in equity securities, including common stocks, preferred stocks and securities convertible into common and preferred stocks. Enterprise Portfolio+ Seeks capital appreciation Van Kampen Asset Management through investments in securities believed by the Portfolio's investment adviser to have above average potential for capital appreciation. WELLS FARGO VARIABLE TRUST VT Small/Mid Cap Value Fund+ Seeks long-term capital Wells Fargo Funds Management, LLC appreciation. Subadviser: Wells Capital Management Incorporated
- --------- + Not available under all Contracts. Availability depends on Contract issue date. ++ Certain Variable Funding Options have been subject to a merger, substitution or other change. Please see "Appendix B -- Additional Information Regarding the Underlying Funds". METROPOLITAN SERIES FUND, INC. ASSET ALLOCATION PORTFOLIOS The MetLife Conservative Allocation Portfolio, the MetLife Conservative to Moderate Allocation Portfolio, the MetLife Moderate Allocation Portfolio, the MetLife Moderate to Aggressive Allocation Portfolio and the MetLife Aggressive Allocation Portfolio, also known as the "asset allocation portfolios", are "fund of funds" portfolios that invest substantially all of their assets in other portfolios of the Metropolitan Series Fund, Inc. or the Met Investors Series Trust. Therefore, each of these asset allocation portfolios will bear its pro- rata share of the fees and expenses incurred 23 by the underlying portfolio in which it invests in addition to its own management fees and expenses. This will reduce the investment return of each of the asset allocation portfolios. The expense levels will vary over time, depending on the mix of underlying portfolios in which the asset allocation portfolio invests. Contract Owners may be able to realize lower aggregate expenses by investing directly in the underlying portfolios instead of investing in the asset allocation portfolios. A Contract Owner who chooses to invest directly in the underlying portfolios would not, however, receive asset allocation services provided by MetLife Advisers. For more information regarding the asset allocation portfolios, please read the prospectus for these portfolios. FIXED ACCOUNT - -------------------------------------------------------------------------------- We may offer our Fixed Account as a funding option. Please see separate prospectus for more information. CHARGES AND DEDUCTIONS - -------------------------------------------------------------------------------- GENERAL We deduct the charges described below. The charges are for the services and benefits we provide, costs and expenses we incur, and risks we assume under the Contracts. Services and benefits we provide include: - the ability for you to make withdrawals and surrenders under the Contracts; - the death benefit paid on the death of the Contract Owner, Annuitant, or first of the joint owners; - the available funding options and related programs (including dollar cost averaging, portfolio rebalancing, and systematic withdrawal programs); - administration of the annuity options available under the Contracts; and - the distribution of various reports to Contract Owners. Costs and expenses we incur include: - losses associated with various overhead and other expenses associated with providing the services and benefits provided by the Contracts; - sales and marketing expenses including commission payments to your sales agent; and - other costs of doing business. Risks we assume include: - that Annuitants may live longer than estimated when the annuity factors under the Contracts were established; - that the amount of the death benefit will be greater than the Contract Value; and - that the costs of providing the services and benefits under the Contracts will exceed the charges deducted. We may also deduct a charge for taxes. Unless otherwise specified, charges are deducted proportionately from all funding options in which you are invested. We may reduce or eliminate the withdrawal charge, the administrative charges and/or the mortality and expense risk charge under the Contract based upon characteristics of the group. Such characteristics include, but are not limited to, the nature of the group, size, facility by which Purchase Payments will be paid, and aggregate amount of anticipated persistency. The availability of a reduction or elimination of the withdrawal charge or the administrative 24 charge will be made in a reasonable manner and will not be unfairly discriminatory to the interest of any Contract Owner. The amount of a charge may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designated charge. For example, the withdrawal charge we collect may not fully cover all of the sales and distribution expenses we actually incur. The amount of any fee or charge is not impacted by an outstanding loan. We may also profit on one or more of the charges. We may use any such profits for any corporate purpose, including the payment of sales expenses. Withdrawals pursuant to a request to divide Contract Value due to a divorce are subject to withdrawal charges. WITHDRAWAL CHARGE We do not deduct a sales charge from Purchase Payments when they are made to the Contract. However, a withdrawal charge will apply if Purchase Payments and any applicable Purchase Payment Credits are withdrawn before they have been in the Contract for five years. We will assess the charge as a percentage of the Purchase Payment and any applicable Purchase Payment Credits withdrawn as follows:
YEARS SINCE PURCHASE PAYMENT MADE - ------------------------------------------ GREATER THAN OR EQUAL TO BUT LESS THAN WITHDRAWAL CHARGE - ------------------------ ------------- ----------------- 0 years 1 year 5% 1 year 2 years 4% 2 years 3 years 3% 3 years 4 years 2% 4 years 5 years 1% 5+ years 0%
For purposes of the withdrawal charge calculation, withdrawals will be deemed to be taken first from: (a) any Purchase Payments to which no withdrawal charge applies then (b) any remaining free withdrawal allowance (as described below) after reduction by the amount of (a), then (c) any Purchase Payments to which withdrawal charges apply (on a first- in, first-out basis) and, finally (d) from any Contract earnings Unless you instruct us otherwise, we will deduct the withdrawal charge from the amount requested. IF YOU DID NOT PURCHASE YOUR CONTRACT UNDER A 457 OR 403(B) QUALIFIED PLAN, WE WILL NOT DEDUCT A WITHDRAWAL CHARGE: - from payments we make due to the death of the Annuitant - if an annuity payout has begun, other than the Liquidity Benefit Option (See "Liquidity Benefit") - from amounts withdrawn which are deposited to other contracts issued by us or our affiliate, subject to our approval - if withdrawals are taken under our Managed Distribution Program, if elected by you (see Access to Your Money) or - if you are confined to an eligible nursing home, as described in Appendix G IF YOU PURCHASED YOUR CONTRACT UNDER A 457 OR 403(B) QUALIFIED PLAN, WE WILL NOT DEDUCT A WITHDRAWAL CHARGE: - from payments we make due to the death of the Annuitant - if an annuity payout has begun - from amounts withdrawn which are deposited to other contracts issued by us or our affiliate, subject to our approval 25 - if withdrawals are taken as a minimum distribution, as defined under The Code - if withdrawals are taken due to a hardship, as defined under The Code - if withdrawals are taken due to a disability, as defined under The Code, of the Annuitant; - if you are confined to an eligible nursing home, as described in Appendix G (403 (b) plans only). FREE WITHDRAWAL ALLOWANCE Beginning in the second Contract Year, you may withdraw up to 20% of the Contract Value annually. We calculate the available withdrawal amount as of the end of the previous Contract Year. Any withdrawal is subject to federal income taxes on the taxable portion. In addition, a 10% federal penalty tax may be assessed on any withdrawal if the Contract Owner is under age 59 1/2. You should consult with your tax adviser regarding the tax consequences of a withdrawal. TRANSFER CHARGE We reserve the right to assess a transfer charge of up to $10 on transfers exceeding 12 per year. We will notify you in writing at your last known address at least 31 days before we impose any such transfer charge. MORTALITY AND EXPENSE RISK CHARGE Each business day, we deduct a mortality and expense risk ("M&E") charge from amounts we hold in the Variable Funding Options. We reflect the deduction in our calculation of Accumulation and Annuity Unit values. The charges stated are the maximum for this product. This charge is equal to 0.80% annually. If you choose the Optional Death Benefit, the M&E charge is 1.25% annually. This charge compensates the Company for risks assumed, benefits provided and expenses incurred, including the payment of commissions to your sales agent. VARIABLE FUNDING OPTION EXPENSES We summarized the charges and expenses of the Underlying Funds in the fee table. Please review the prospectus for each Underlying Fund for a more complete description of that fund and its expenses. Underlying Fund expenses are not fixed or guaranteed and are subject to change by the Underlying Fund. FLOOR BENEFIT/LIQUIDITY BENEFIT CHARGES If you select the Variable Annuitization Floor Benefit, we deduct a charge upon election of this benefit. This charge compensates us for guaranteeing a minimum variable Annuity Payment regardless of the performance of the Variable Funding Options you selected. This charge will vary based upon market conditions, but will never increase your annual Separate Account charge by more than 3%. The charge will be set at the time of election, and will remain level throughout the term of annuitization. If the Liquidity Benefit is selected, there is a surrender charge of 5% of the amounts withdrawn during the annuity period. Please refer to the "Payment Options" section for a description of these benefits. PREMIUM TAX Certain state and local governments charge premium taxes ranging from 0% to 3.5%, depending upon jurisdiction. We are responsible for paying these taxes and will determine the method used to recover premium tax expenses incurred. We will deduct any applicable premium taxes from your Contract Value either upon death, surrender, annuitization, or at the time you make Purchase Payments to the Contract, but no earlier than when we have a tax liability under state law. 26 CHANGES IN TAXES BASED UPON PREMIUM OR VALUE If there is any change in a law assessing taxes against the Company based upon premiums, Contract gains or value of the Contract, we reserve the right to charge you proportionately for this tax. TRANSFERS - -------------------------------------------------------------------------------- Subject to the limitations described below, you may transfer all or part of your Contract Value between Variable Funding Options at any time up to 30 days before the Maturity Date. After the Maturity Date, you may make transfers only if allowed by your Contract or with our consent. Transfer requests received at our Home Office that are in good order before the close of the New York Stock Exchange (NYSE) will be processed according to the value(s) next computed following the close of business. Transfer requests received on a non-business day or after the close of the NYSE will be processed based on the value(s) next computed on the next business day. Where permitted by state law, we reserve the right to restrict transfers from the Variable Funding Options to the Fixed Account whenever the credited interest rate on the Fixed Account is equal to the minimum guaranteed interest rate specified under the Contract. Currently, there are no charges for transfers; however, we reserve the right to charge a $10 fee for any transfer request which exceeds twelve per year. Since each Underlying Fund may have different overall expenses, a transfer of Contract Values from one Variable Funding Option to another could result in your investment becoming subject to higher or lower expenses. Also, when making transfers, you should consider the inherent risks associated with the Variable Funding Options to which your Contract Value is allocated. You may also transfer between the Variable Funding Options and the Fixed Account; however, no transfers are allowed between the Fixed Account and any Competing Fund. Amounts previously transferred from the Fixed Account to the Underlying Funds may not be transferred back to the Fixed Account or any Competing Fund for a period of at least 3 months for the date of the transfer. Amounts previously transferred from a Competing Fund to and Underlying Fund, which is not a Competing Fund, may not be transferred to the Fixed Account for a period of at least 3 months from the date of the Purchase Payment. (Please refer to "Appendix F -- Competing Funds".) MARKET TIMING/EXCESSIVE TRADING Frequent requests from Contract Owners to transfer Contract Value may dilute the value of an Underlying Fund's shares if the frequent trading involves an attempt to take advantage of pricing inefficiencies created by a lag between a change in the value of the securities held by the Underlying Fund and the reflection of that change in the Underlying Fund's share price ("arbitrage trading"). Regardless of the existence of pricing inefficiencies, frequent transfers may also increase brokerage and administrative costs of the Underlying Funds and may disrupt Underlying Fund management strategy, requiring an Underlying Fund to maintain a high cash position and possibly resulting in lost investment opportunities and forced liquidations ("disruptive trading"). Accordingly, arbitrage trading and disruptive trading activities (referred to collectively as "market timing") may adversely affect the long-term performance of the Underlying Funds, which may in turn adversely affect Contract Owners and other persons who may have an interest in the Contracts (e.g., annuitants and beneficiaries). We have policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading. Currently, we believe that such situations may be presented in the international, small-cap, and high-yield Underlying Funds (i.e., American Funds Global Growth Fund, Clarion Global Real Estate Portfolio, MFS(R) Emerging Markets Equity Portfolio, Delaware VIP Small Cap Value Series, Templeton Developing Markets Securities Fund, Templeton Foreign Securities Fund, Legg Mason Partners Variable High Income Portfolio, Legg Mason Partners Variable International All Cap Opportunities Portfolio, Legg Mason Partners Variable Small Cap Growth Portfolio, Dreman Small Cap Value Portfolio, Harris Oakmark International Portfolio, Lord Abbett Bond Debenture Portfolio, Met/AIM Small Cap Growth Portfolio, Morgan Stanley EAFE(R) Index Portfolio, Pioneer Strategic Income Portfolio, Oppenheimer Global Equity Portfolio, BlackRock High Yield Portfolio, MFS(R) Research International Portfolio, Russell 2000(R) Index Portfolio, T. Rowe Price Small Cap Growth Portfolio, Third Avenue Small Cap Value Portfolio and Wells Fargo VT Small Mid Cap Value Fund -- the "Monitored Portfolios"), and we monitor transfer activity in those Monitored Portfolios. In addition, as described below, we treat all American Funds Insurance Series((R) )portfolios ("American Funds portfolios") as Monitored Portfolios. We employ 27 various means to monitor transfer activity, such as examining the frequency and size of transfers into and out of the Monitored Portfolios within given periods of time. For example, we currently monitor transfer activity to determine if, for each of the Monitored Portfolios, in a three-month period there were two or more "round-trips" of a certain dollar amount or greater. A round-trip is defined as a transfer in followed by a transfer out within the next 10 calendar days, or a transfer out followed by a transfer in within the next 10 calendar days. In the case of a Contract that has been restricted previously, a single round-trip of a certain dollar amount or greater will trigger the transfer restrictions described below. We do not believe that other Underlying Funds present a significant opportunity to engage in arbitrage trading and therefore do not monitor transfer activity in those Underlying Funds. We may change the Monitored Portfolios at any time without notice in our sole discretion. In addition to monitoring transfer activity in certain Underlying Funds, we rely on the Underlying Funds to bring any potential disruptive trading activity they identify to our attention for investigation on a case-by-case basis. We will also investigate other harmful transfer activity that we identify from time to time. We may revise these policies and procedures in our sole discretion at any time without prior notice. AMERICAN FUNDS((R)) MONITORING POLICY. As a condition to making their portfolios available in our products, American Funds(R) requires us to treat all American Funds portfolios as Monitored Portfolios under our current market timing and excessive trading policies and procedures. Further, American Funds(R) requires us to impose additional specified monitoring criteria for all American Funds portfolios available under the Contract, regardless of the potential for arbitrage trading. We are required to monitor transfer activity in American Funds portfolios to determine if there were two or more transfers in followed by transfers out, in each case of a certain dollar amount or greater, in any 30-day period. A first violation of the American Funds(R) monitoring policy will result in a written notice of violation; any additional violation will result in the imposition of the transfer restrictions described below. Further, as Monitored Portfolios, American Funds portfolios also will be subject to our current market timing and excessive trading policies, procedures and restrictions, and transfer restrictions may be imposed upon a violation of either monitoring policy. Our policies and procedures may result in transfer restrictions being applied to deter market timing. Currently, when we detect transfer activity in the Monitored Portfolios that exceeds our current transfer limits, or other transfer activity that we believe may be harmful to other Contract Owners or other persons who have an interest in the Contracts, we will exercise our contractual right to restrict your number of transfers to one every six months. In addition, we also reserve the right, but do not have the obligation, to further restrict the right to request transfers by any market timing firm or any other third party who has been authorized to initiate transfers on behalf of multiple Contract Owners. We may, among other things: - reject the transfer instructions of any agent acting under a power of attorney on behalf of more than one Contract Owner; or - reject the transfer or exchange instructions of individual Contract Owners who have executed pre-authorized transfer forms which are submitted by market timing firms or other third parties on behalf of more than one Contract Owner. Transfers made under a Dollar Cost Averaging Program, a rebalancing program or, if applicable, any asset allocation program described in this prospectus are not treated as transfers when we evaluate trading patterns for market timing. The detection and deterrence of harmful transfer activity involves judgments that are inherently subjective, such as the decision to monitor only those Underlying Funds that we believe are susceptible to arbitrage trading or the determination of the transfer limits. Our ability to detect and/or restrict such transfer activity may be limited by operational and technological systems, as well as our ability to predict strategies employed by Contract Owners to avoid such detection. Our ability to restrict such transfer activity also may be limited by provisions of the Contract. Accordingly, there is no assurance that we will prevent all transfer activity that may adversely affect Contract Owners and other persons with interests in the Contracts. We do not accommodate market timing in any Underlying Fund and there are no arrangements in place to permit any Contract Owner to engage in market timing; we apply our policies and procedures without exception, waiver, or special arrangement. The Underlying Funds may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares and we reserve the right to enforce these policies and procedures. For example, Underlying Funds may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the Underlying Funds describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Although we may not have the 28 contractual authority or the operational capacity to apply the frequent trading policies and procedures of the Underlying Funds, we have entered into a written agreement, as required by SEC regulation, with each Underlying Fund or its principal underwriter that obligates us to provide to the Underlying Fund promptly upon request certain information about the trading activity of an individual Contract Owner, and to execute instructions from the Underlying Fund to restrict or prohibit further Purchase Payments or transfers by specific Contract Owners who violate the frequent trading policies established by the Underlying Fund. In addition, Contract Owners and other persons with interests in the Contracts should be aware that the purchase and redemption orders received by the Underlying Funds generally are "omnibus" orders from intermediaries, such as retirement plans or separate accounts funding variable insurance contracts. The omnibus orders reflect the aggregation and netting of multiple orders from individual Contract Owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Underlying Funds in their ability to apply their frequent trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the Underlying Funds (and thus Contract Owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the Underlying Funds. If an Underlying Fund believes that an omnibus order reflects one or more transfer requests from Contract Owners engaged in disruptive trading activity, the Underlying Fund may reject the entire omnibus order. In accordance with applicable law, we reserve the right to modify or terminate the transfer privilege at any time. We also reserve the right to defer or restrict the transfer privilege at any time that we are unable to purchase or redeem shares of any of the Underlying Funds, including any refusal or restriction on purchases or redemptions of their shares as a result of their own policies and procedures on market timing activities (even if an entire omnibus order is rejected due to the market timing activity of a single Contract Owner). You should read the Underlying Fund prospectuses for more details. ACCESS TO YOUR MONEY - -------------------------------------------------------------------------------- Any time before the Maturity Date, you may redeem all or any portion of the Cash Surrender Value, that is, the Contract Value less any withdrawal charge and any premium tax not previously deducted. Unless you submit a Written Request specifying the fixed or Variable Funding Option(s) from which we are to withdraw amounts, we will make the withdrawal on a pro rata basis. The Cash Surrender Value will be determined as of the close of business after we receive your surrender request at our Home Office. The Cash Surrender Value may be more or less than the Purchase Payments you made. You may not make withdrawals during the annuity period. For amounts allocated to the Variable Funding Options, we may defer payment of any Cash Surrender Value for a period of up to five business days after the Written Request is received. For amounts allocated to the Fixed Account, we may defer payment of any Cash Surrender Value for a period up to six months. In either case, it is our intent to pay as soon as possible. We cannot process requests for withdrawals that are not in good order. We will contact you if there is a deficiency causing a delay and will advise what is needed to act upon the withdrawal request. We may withhold payment of Cash Surrender Value or a Participant's loan proceeds if any portion of those proceeds would be derived from a Contract Owner's check that has not yet cleared (i.e., that could still be dishonored by your banking institution). We may use telephone, fax, Internet or other means of communication to verify that payment from the Contract Owner's check has been or will be collected. We will not delay payment longer than necessary for us to verify that payment has been or will be collected. Contract Owners may avoid the possibility of delay in the disbursement of proceeds coming from a check that has not yet cleared by providing us with a certified check. For those participating in the Texas Optional Retirement Program, withdrawals may only be made upon termination of employment, retirement or death as provided in the Texas Optional Retirement Program (See Appendix E for additional information). If your Contract is issued as part of a 403(b) plan, there are restrictions on your ability to make withdrawals from your Contract. You may not withdraw contributions or earnings made to your Contract after December 31, 1988 unless you are (a) age 59 1/2, (b) no longer employed, (c) deceased, (d) disabled, or (e) experiencing a financial 29 hardship. Even if you are experiencing a financial hardship, you may only withdraw contributions, not earnings. You should consult with your tax adviser before making a withdrawal from your Contract. SYSTEMATIC WITHDRAWALS Before the Maturity Date, you may choose to withdraw a specified dollar amount (at least $100) on a monthly, quarterly, semiannual or annual basis. We will deduct any applicable premium taxes and withdrawal charge. To elect systematic withdrawals you must have a Contract Value of at least $15,000 and you must make the election on the form we provide. We will surrender Accumulation Units pro rata from all funding options in which you have an interest, unless you instruct us otherwise. You may begin or discontinue systematic withdrawals at any time by notifying us in writing, but you must give at least 30 days notice to change any systematic withdrawal instructions that are currently in place. We reserve the right to discontinue offering systematic withdrawals or to assess a processing fee for this service upon 30 days written notice to Contract Owners (where allowed by state law). Each systematic withdrawal is subject to federal income taxes on the taxable portion, and may be subject to withdrawal charges. In addition, a 10% federal penalty tax may be assessed on systematic withdrawals if the Contract Owner is under age 59 1/2. There is no additional fee for electing systematic withdrawals. You should consult with your tax adviser regarding the tax consequences of systematic withdrawals. MANAGED DISTRIBUTION PROGRAM. Under the systematic withdrawal option, you may choose to participate in the Managed Distribution Program. At no cost to you, you may instruct us to calculate and make minimum distributions that may be required by the IRS upon reaching age 70 1/2. (See "Federal Tax Considerations") These payments will not be subject to the withdrawal charge and will be in lieu of the free withdrawal allowance. No Dollar Cost Averaging Program will be permitted if you are participating in the Managed Distribution Program. OWNERSHIP PROVISIONS - -------------------------------------------------------------------------------- TYPES OF OWNERSHIP CONTRACT OWNER The Contract belongs to the Contract Owner named in the Contract (on the Contract Specifications page). You have sole power to exercise any rights and to receive all benefits given in the Contract provided you have not named an irrevocable beneficiary If this Contract is purchased by a beneficiary of another contract who directly transferred the death proceeds due under that contract, he/she will be granted the same rights the owner has under the Contract except that he/she cannot take a loan or make additional Purchase Payments. BENEFICIARY You name the beneficiary in a Written Request. The beneficiary has the right to receive any death benefit proceeds remaining under the Contract upon the death of the Contract Owner. If more than one beneficiary survives the Annuitant or Contract Owner they will share equally in benefits unless you recorded different shares with the Company by Written Request before the death of the Contract Owner. In the case of a non-spousal beneficiary or a spousal beneficiary who has not chosen to assume the Contract, we will not transfer or otherwise remove the death benefit proceeds from either the Variable Funding Options or the Fixed Account, as most recently elected by the Contract Owner, until the Death Report Date. Unless you have named an irrevocable beneficiary, you have the right to change any beneficiary by Written Request during the lifetime of the Annuitant and while the Contract continues. 30 ANNUITANT The Annuitant is the individual on whose life the Maturity Date and the amount of the monthly Annuity Payments depend. DEATH BENEFIT - -------------------------------------------------------------------------------- Before the Maturity Date, generally, a death benefit is payable when you die. At purchase, you elect either the standard death benefit or the optional death benefit. We calculate the death benefit at the close of the business day on which our Home Office receives (1) Due Proof of Death and (2) written payment instructions or election of beneficiary contract continuance ("Death Report Date"). DEATH PROCEEDS BEFORE THE MATURITY DATE STANDARD DEATH BENEFIT
- ------------------------------------------------------------------------------------- ANNUITANT'S AGE ON THE CONTRACT DATE DEATH BENEFIT PAYABLE - --------------------------------- --------------------------------------------------- On or Before Age 80 Greater of: 1) Contract Value on the Death Report Date, or 2) Total Purchase Payments less the total amount of any partial surrenders (including associated charges, if any). - --------------------------------- --------------------------------------------------- After Age 80 Contract Value less any applicable premium tax. - --------------------------------- ---------------------------------------------------
OPTIONAL DEATH BENEFIT AND CREDIT The Optional Death Benefit and Credit varies depending on the Annuitant's age on the Contract Date.
- ------------------------------------------------------------------------------------- ANNUITANT'S AGE ON THE CONTRACT DATE DEATH BENEFIT PAYABLE - --------------------------------- --------------------------------------------------- Under Age 70 Greater of: 1) Contract Value on the Death Report Date, or 2) Total Purchase Payments less the total of any withdrawals (and related charges); or 3) Maximum Step-Up death benefit value (described below) in effect on Death Report Date which are associated with Contract Date anniversaries beginning with the 5th, and ending with the last before the Annuitant's 76th birthday. - --------------------------------- --------------------------------------------------- Age 70-75 Greater of: 1) Contract Value on Death Report Date, or 2) Total Purchase Payments less the total of any withdrawals (and related charges); or 3) Step-Up death benefit value (described below) in effect on Death Report Date associated with the 5th Contract Date anniversary. - --------------------------------- --------------------------------------------------- Age 76-80 Greater of (1) or (2) above. - --------------------------------- --------------------------------------------------- Age over 80 Contract Value on Death Report Date (less any applicable premium tax) - --------------------------------- ---------------------------------------------------
STEP-UP DEATH BENEFIT VALUE We will establish a separate Step-Up death benefit value on the fifth Contract Date anniversary and on each subsequent Contract Date anniversary on or before the Death Report Date. The Step-Up death benefit value will 31 initially equal the Contract Value on that anniversary. After a Step-Up death benefit value has been established, we will recalculate it each time a Purchase Payment is made or a withdrawal is taken until the Death Report Date. We will recalculate Step-Up death benefit values by increasing them by the amount of each applicable Purchase Payment and by reducing them by a partial surrender reduction (as described below) for each applicable withdrawal. Recalculations of Step-Up death benefit values related to any Purchase Payments or any withdrawals will be made in the order that such Purchase Payments or partial surrender reductions occur. PARTIAL SURRENDER REDUCTION. If you make a withdrawal, we will reduce the Step- Up value by a partial surrender reduction which equals: (1) the step-up value immediately prior to the withdrawal, multiplied by (2) the amount of the withdrawal, divided by (3) the Contract Value before the withdrawal. For example, assume your current Contract Value is $55,000. If your step-up value immediately prior to the withdrawal is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the step-up value as follows: 50,000 x (10,000/55,000) = 9,090 Your new step-up value would be 50,000-9,090, or $40,910. The following example shows what would happen in a declining market. Assume your current Contract Value is $30,000. If your step-up value immediately prior to the withdrawal is $50,000, and you decide to make a withdrawal of $10,000, we would reduce the step-up value as follows: 50,000 x (10,000/30,000) = 16,666 Your new step-up value would be 50,000-16,666, or $33,334. PAYMENT OF PROCEEDS We describe the process of paying death benefit proceeds before the Maturity Date in the chart below. The chart does not encompass every situation and is merely intended as a general guide. More detailed information is provided in your Contract. Generally, the person(s) receiving the benefit may request that the proceeds be paid in a lump sum, or be applied to one of the settlement options available under the Contract.
- ------------------------------------------------------------------------------------------------------ MANDATORY BEFORE THE MATURITY DATE, THE COMPANY WILL PAYOUT RULES UPON THE DEATH OF THE PAY THE PROCEEDS TO: APPLY* - ------------------------------------------------------------------------------------------------------ OWNER/ANNUITANT The beneficiary (ies), or if none, to Yes the Contract Owner's estate. - ------------------------------------------------------------------------------------------------------ BENEFICIARY No death proceeds are payable; N/A Contract continues. - ------------------------------------------------------------------------------------------------------ CONTINGENT BENEFICIARY No death proceeds are payable; N/A Contract continues. - ------------------------------------------------------------------------------------------------------
* Certain payout rules of the Internal Revenue Code (IRC) are triggered upon the death of the Owner. Non-spousal beneficiaries (as well as spousal beneficiaries who choose not to assume the Contract) must begin taking distributions based on the beneficiary's life expectancy within one year of death or take a complete distribution of Contract proceeds within 5 years of death. If mandatory distributions have begun, the 5 year payout option is not available. BENEFICIARY CONTRACT CONTINUANCE (NOT PERMITTED FOR NON-NATURAL BENEFICIARIES) If you die before the Maturity Date, and if the value of any beneficiary's portion of the death benefit is between $20,000 and $1,000,000 as of the Death Report Date, (more than $1,000,000 is subject to Home Office approval), your beneficiary(ies) may elect to continue his/her portion of the Contract subject to applicable Internal Revenue Code distribution requirements, rather than receive the death benefit in a lump-sum. If the beneficiary chooses to continue the Contract, the beneficiary can extend the payout phase of the Contract enabling the beneficiary to "stretch" the death benefit distributions out over his life expectancy as permitted by the Internal Revenue Code. 32 If your beneficiary elects to continue the Contract, the death benefit will be calculated as of the Death Report Date. The initial Contract Value of the continued Contract (the "adjusted Contract Value") will equal the greater of the Contract Value or the death benefit calculated on the Death Report Date and will be allocated to the funding options in the same proportion as prior to the Death Report Date. If the adjusted Contract Value is allocated to the Variable Funding Options, the beneficiary bears the investment risk. The beneficiary who continues the Contract will be granted the same rights as the owner under the original Contract, except the beneficiary cannot: - take a loan - make additional Purchase Payments - transfer ownership of the Contract The beneficiary may also name his/her own beneficiary ("succeeding beneficiary") and has the right to take withdrawals at any time after the Death Report Date without a withdrawal charge. All other fees and charges applicable to the original Contract will also apply to the continued Contract. All benefits and features of the continued Contract will be based on the beneficiary's age on the Death Report Date as if the beneficiary had purchased the Contract with the adjusted Contract Value on the Death Report Date. PLANNED DEATH BENEFIT (INDIVIDUAL CONTRACTS ONLY) You may request that rather than receive a lump-sum death benefit, the beneficiary(ies) receive all or a portion of the death benefit proceeds either: - through an annuity for life or a period that does not exceed the beneficiary's life expectancy or - under the terms of the Beneficiary Continuance provision described above. If the Beneficiary Continuance provision is selected as a planned death benefit, no surrenders will be allowed other than payments meant to satisfy minimum distribution amounts or systematic withdrawal amounts, if greater You must make the planned death benefit request as well as any revocation of this request in writing. Upon your death, your beneficiary(ies) cannot revoke or modify this request. If the death benefit at the time we receive Due Proof of Death is less than $2,000, we will only pay a lump sum to the beneficiary. If periodic payments due under the planned death benefit election are less than $100, we reserve the right to make Annuity Payments at less frequent intervals, resulting in a payment of at least $100 per year. If no beneficiary is alive when death benefits become payable, we will pay the death benefit as provided in your Contract. DEATH PROCEEDS AFTER THE MATURITY DATE If any Contract Owner or the Annuitant dies on or after the Maturity Date, the Company will pay the beneficiary a death benefit consisting of any benefit remaining under the annuity option then in effect. THE ANNUITY PERIOD - -------------------------------------------------------------------------------- MATURITY DATE Under the Contract, you can receive regular payments ("Annuity Payments"). You can choose the month and the year in which those payments begin ("Maturity Date"). You can also choose among income payouts (annuity options) or elect a lump-sum distribution. While the Annuitant is alive, you can change your selection any time up to the Maturity Date. Annuity Payments will begin on the Maturity Date stated in the Contract unless (1) you fully surrendered the Contract; (2) we paid the proceeds to the beneficiary before that date; or (3) you elected another date. Annuity Payments are a series of periodic payments (a) for life; (b) for life with either a minimum number of payments or a specific amount assured; or (c) for the joint lifetime of the Annuitant and another person, and thereafter during the lifetime of the survivor . We may require proof that the Annuitant is alive before Annuity Payments are made. Not all options may be available in all states. 33 You may choose to annuitize at any time after you purchase your Contract. Unless you elect otherwise, the Maturity Date will be the Annuitant's 90th birthday or ten years after the effective date of the Contract, if later. This requirement may be changed by us. At least 30 days before the original Maturity Date, you may elect to extend the Maturity Date to any time prior to the Annuitant's 90th birthday, or to a later date with our consent. You may use certain annuity options taken at the Maturity Date to meet the minimum required distribution requirements of federal tax law, or you may use a program of withdrawals instead. These mandatory distribution requirements take effect generally upon the death of the Contract Owner, or with certain Qualified Contracts upon either the later of the Contract Owner's attainment of age 70 1/2 or year of retirement. You should seek independent tax advice regarding the election of minimum required distributions. ALLOCATION OF ANNUITY You may elect to receive your Annuity Payments in the form of a variable annuity, a fixed annuity, or a combination of both. If, at the time Annuity Payments begin, you have not made an election, we will apply your Contract Value to provide an annuity funded by the same funding options as you have selected during the accumulation period. At least 30 days before the Maturity Date, you may transfer the Contract Value among the funding options in order to change the basis on which we will determine Annuity Payments. (See "Transfers".) ANNUITIZATION CREDIT. This credit is applied to the Contract Value used to purchase one of the annuity options described below. The credit equals 0.5% of your Contract Value if you annuitize during Contract Years 2-5, 1% during Contract Years 6-10, and 2% after Contract Year 10. There is no credit applied to Contracts held less than 1 year. VARIABLE ANNUITY You may choose an annuity payout that fluctuates depending on the investment experience of the Variable Funding Options. We determine the number of Annuity Units credited to the Contract by dividing the first monthly Annuity Payment attributable to each Variable Funding Option by the corresponding Accumulation Unit value as of 14 days before the date Annuity Payments begin. We use an Annuity Unit to measure the dollar value of an Annuity Payment. The number of Annuity Units (but not their value) remains fixed during the annuity period. DETERMINATION OF FIRST ANNUITY PAYMENT. Your Contract contains the tables we use to determine your first monthly Annuity Payment. If you elect a variable annuity, the amount we apply to it will be the Contract Value as of 14 days before the date Annuity Payments begin, less any applicable premium taxes not previously deducted. The amount of your first monthly payment depends on the annuity option you elected and the Annuitant's adjusted age. Your Contract contains the formula for determining the adjusted age. We determine the total first monthly Annuity Payment by multiplying the benefit per $1,000 of value shown in the contract tables by the number of thousands of dollars of Contract Value you apply to that annuity option. You may select an assumed daily net investment factor of 3.0% or 5.0% upon each full or partial annuitization. The contract tables factor in an assumed net investment factor of 3.0% or 5.0%. We call this your net investment rate. Your net investment rate of 3.0% or 5.0% corresponds to an annual interest rate of 3.0% or 5.0%. This means that if the annualized investment performance, after expenses, of your Variable Funding Options is less than 3.0% or 5.0%, then the dollar amount of your variable Annuity Payments will decrease. However, if the annualized investment performance, after expenses, of your Variable Funding Options is greater than 3.0% or 5.0%, then the dollar amount of your variable Annuity Payments will increase. DETERMINATION OF SECOND AND SUBSEQUENT ANNUITY PAYMENTS. The dollar amount of all subsequent Annuity Payments changes from month to month based on the investment experience, as described above, of the applicable funding options. The total amount of each Annuity Payment will equal the sum of the basic payments in each funding option. We determine the actual amounts of these payments by multiplying the number of Annuity Units we credited to each funding option by the corresponding Annuity Unit value as of the date 14 days before the date the payment is due. 34 FIXED ANNUITY You may choose a fixed annuity that provides payments that do not vary during the annuity period. We will calculate the dollar amount of the first fixed Annuity Payment (as described under "Variable Annuity,") except that the amount we apply to begin the annuity will be your Contract Value as of the date Annuity Payments begin. Payout rates will not be lower than those shown in the Contract. If it would produce a larger payment, the first fixed Annuity Payment will be determined using the Life Annuity Tables in effect for the same class of Contract Owners on the Maturity Date. If you have elected the Increasing Benefit Option, the payments will be calculated as above. However, the initial payment will be less than that reflected in the table and the subsequent payments will be increased by the percentage you elected. LIQUIDITY BENEFIT (BENEFIT NOT AVAILABLE UNDER 457 PLANS) If you select any annuity option that guarantees you payments for a minimum period of time ("period certain"), you may take a lump sum payment (equal to a portion or all of the value of the remaining payments) any time after the first Contract Year. There is a charge of 5% of the amount withdrawn under this option. For variable Annuity Payments, we use the Assumed Net Investment Factor, ("ANIF") as the interest rate to determine the lump sum amount. If you request only a percentage of the amount available, we will reduce the amount of each payment during the rest of the period certain by that percentage. After the period expires, your payments will increase to the level they would have been had no liquidation taken place. For fixed Annuity Payments, we calculate the present value of the remaining period certain payments using a current interest rate. The current interest rate used depends on the amount of time left in the annuity option you elected. The current rate will be the same rate we would give someone electing an annuity option for that same amount of time. If you request a percentage of the amount available during the period certain, we will reduce the amount of each payment during the rest of the period certain by that percentage. After the period certain expires, your payments will increase to the level they would have been had no liquidation taken place. The market value adjustment formula for calculating the present value described above for fixed Annuity Payments is as follows: n Present Value = E[Payments x (1/1 + iC)(t/365) s = 1 Where iC = the interest rate described above n = the number of payments remaining in the Contract Owner's period certain at the time of request for this benefit t = the number of days remaining until that payment is made, adjusting for leap years. See Appendix D for examples of this market value adjustment. PAYMENT OPTIONS - -------------------------------------------------------------------------------- ELECTION OF OPTIONS While the Annuitant is alive, you can change your annuity option selection any time up to the Maturity Date. Once Annuity Payments have begun, no further elections are allowed. During the Annuitant's lifetime, if you do not elect otherwise before the Maturity Date, we will pay you (or another designated payee) the first of a series of monthly Annuity Payments based on the life of the Annuitant, in accordance with Annuity Option 2 (Life Annuity with 120, 180 or 240 monthly payments assured). For certain Qualified 35 Contracts, Annuity Option 4 (Joint and Last Survivor Life Annuity -- Annuity Reduced on Death of Primary Payee) will be the automatic option as described in the Contract. The minimum amount that can be placed under an annuity option will be $2,000 unless we agree to a lesser amount. If any monthly periodic payment due is less than $100, we reserve the right to make payments at less frequent intervals, or to pay the Contract Value in a lump-sum. On the Maturity Date, we will pay the amount due under the Contract in accordance with the Payment Option that you select. You may choose to receive a single lump-sum payment. You must elect an option in writing, in a form satisfactory to the Company. Any election made during the lifetime of the Annuitant must be made by the Contract Owner. VARIABLE ANNUITIZATION FLOOR BENEFIT (BENEFIT NOT AVAILABLE UNDER 457 PLANS). This benefit may not be available, or may only be available under certain annuity options, if we determine market conditions so dictate. If available, we will guarantee that, regardless of the performance of the Variable Funding Options selected by you, your Annuity Payments will never be less than a certain percentage of your first Annuity Payment. This percentage will vary depending on market conditions, but will never be less than 50%. You may not elect this benefit if you are over age 80. Additionally, you must select from certain funds available under this guarantee. Currently, these funds are the FI Value Leaders Portfolio, BlackRock Bond Portfolio and the Western Asset Management U.S. Government Portfolio. We may, at our discretion, increase or decrease the number of funds available under this benefit. This benefit is not currently available under Annuity Option 5. The benefit is not available with the 5% ANIF under any Option. If you select this benefit, you may not elect to liquidate any portion of your Contract. There is a charge for this guarantee, which will begin upon election of this benefit. This charge will vary based upon market conditions, and will be established at the time the benefit is elected. Once established, the charge will remain level throughout the remainder of the annuitization, and will never increase your annual Separate Account charge by more than 3% per year. We reserve the right to restrict the amount of Contract Value to be annuitized under this benefit. ANNUITY OPTIONS Subject to the conditions described in "Election of Options" above, we may pay all or any part of the Cash Surrender Value under one or more of the following annuity options. Payments under the annuity options are generally made on a monthly basis. We may offer additional options. Option 1 -- Life Annuity -- No Refund. The Company will make Annuity Payments during the lifetime of the Annuitant, terminating with the last payment preceding death. While this option offers the maximum periodic payments, there is no assurance of a minimum number of payments nor a provision for a death benefit for beneficiaries. Option 2 -- Life Annuity with 120, 180 or 240 Monthly Payments Assured. The Company will make monthly Annuity Payments during the lifetime of the Annuitant, with the agreement that if, at the death of that person, payments have been made for less than 120, 180 or 240 months, as elected, payments will be continued during the remainder of the period to the beneficiary designated. Option 3 -- Joint and Last Survivor Life Annuity -- No Refund. The Company will make Annuity Payments during the lifetime of the Annuitant and a second person. When either person dies, we will continue making payments to the survivor. No further payments will be made following the death of the survivor. There is no assurance of a minimum number of payments, nor is there a provision for a death benefit upon the survivor's death. Option 4 -- Joint and Last Survivor Life Annuity -- Annuity Reduced on Death of Primary Payee. The Company will make Annuity Payments during the lifetimes of the Annuitant and a second person. One of the two persons will be designated as the primary payee. The other will be designated as secondary payee. On the death of the secondary payee, if survived by the primary payee, the Company will continue to make monthly Annuity Payments to the primary payee in the same amount that would have been payable during the joint lifetime of the two persons. On the death of the primary payee, if survived by the secondary payee, the Company will continue to make Annuity Payments to the secondary payee in an amount equal to 50% of the payments, which would have been made during the lifetime of the primary payee. No further payments will be made once both payees have died. 36 Option 5 -- Payments for a Fixed Period (Term Certain). We will make periodic payments for the period selected. Please note that Option 5 may not satisfy the minimum required distribution rules for Qualified Contracts. Consult a tax advisor before electing this option. Option 6 -- Other Annuity Options. We will make any other arrangements for Annuity Payments as may be mutually agreed upon. MISCELLANEOUS CONTRACT PROVISIONS - -------------------------------------------------------------------------------- RIGHT TO RETURN You may return the Contract for a full refund of the Contract Value plus any Contract charges and premium taxes you paid (but not any fees and charges the Underlying Fund assessed) within ten days after you receive it (the "right to return period"). The number of days for the right to return varies by state. Depending on state law, we may refund all of your Purchase Payments or your Contract Value. You bear the investment risk of investing in the Variable Funding Options during the right to return period; therefore, if your state only requires return of Contract Value, the Contract Value returned may be greater or less than your Purchase Payment. If you purchase the Contract as an Individual Retirement Annuity, and return it within the first seven days after delivery, or longer if your state permits, we will refund your Purchase Payment in full; during the remainder of the right to return period, we will refund the Contract Value (including charges). We will determine the Contract Value following the close of the business day on which we receive your Contract and a Written Request for a refund. Where state law requires a different period, or the return of Purchase Payments or other variations of this provision, we will comply. Refer to your Contract for any state-specific information. TERMINATION We reserve the right to terminate the Contract on any business day if the Contract Value as of that date is less than $2,000 and you have not made Purchase Payments for at least two years, unless otherwise specified by state law. Accordingly, no Contract will be terminated due solely to negative investment performance. Termination will not occur until 31 days after we have mailed notice of termination to your last known address and to any assignee of record. If the Contract is terminated, we will pay you the Cash Surrender Value less any applicable premium tax,. In certain states, we may be required to pay you the Contract Value. REQUIRED REPORTS As often as required by law, but at least once in each Contract Year before the due date of the first Annuity Payment, we will furnish a report showing the number of Accumulation Units credited to the Contract and the corresponding Accumulation Unit value(s) as of the report date for each funding option to which the Contract Owner has allocated amounts during the applicable period. The Company will keep all records required under federal and state laws. SUSPENSION OF PAYMENTS The Company reserves the right to suspend or postpone the date of any payment or determination of values on any business day (1) when the New York Stock Exchange (the "NYSE") is closed; (2) when trading on the NYSE is restricted; (3) when an emergency exists, as determined by the SEC, so that the sale of securities held in the Separate Account may not reasonably occur, or so that the Company may not reasonably determine the value of the Separate Account's net assets; or (4) during any other period when the SEC, by order, so permits for the protection of security holders. At any time, payments from the Fixed Account may be delayed up to 6 months. 37 MISSTATEMENT We may require proof of age of the Owner, beneficiary or Annuitant before making any payments under this Contract that are measured by the Owner's, beneficiary's or Annuitant's life. If the age of the measuring life has been misstated, the amount payable will be the amount that would have been provided at the correct age. Once Annuity Payments have begun, any overpayments or underpayments will be deducted from or added to the payment or payments made after the adjustment. In certain states, we are required to pay interest on any underpayments. THE SEPARATE ACCOUNTS - -------------------------------------------------------------------------------- MetLife Insurance Company of Connecticut sponsors the separate accounts: MetLife of CT Separate Account Five and MetLife of CT Separate Account Six (the "Separate Accounts"), respectively. Both Separate Accounts were established on March 27, 1997 and are registered with the SEC as unit investment trusts under the 1940 Act. We will invest Separate Account assets attributable to the Contracts exclusively in the shares of the Variable Funding Options. Before December 7, 2007 a contract with terms identical to this Contract was issued by MetLife Life and Annuity Company of Connecticut ("MLAC"), a stock life insurance company chartered in 1973 in Connecticut. The Contract was funded through MetLife of CT Separate Account Six for Variable Annuities, a separate account registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended. On December 7, 2007, MLAC, a wholly-owned subsidiary of the Company and an indirect, wholly-owned subsidiary of MetLife, Inc., merged with and into the Company. Upon consummation of the merger, MLAC's corporate existence ceased by operation of law and the Company assumed legal ownership of all of the assets of MLAC, including MetLife of CT Separate Account Six for Variable Annuities and its assets. Pursuant to the merger, therefore, MetLife of CT Separate Account Six for Variable Annuities became a separate account of the Company. As a result of the merger, the Company also has become responsible for all of MLAC's liabilities and obligations, including those created under the MLAC contract (as initially issued by MLAC (formerly known as The Travelers Life and Annuity Company and outstanding on the date of the merger) and in connection with the market value adjustment feature of the MLAC contract. The MLAC contract has thereby become a variable contract funded by a separate account of the Company and each MLAC contract owner has thereby become a Contract Owner of the Company. We hold the assets of the Separate Accounts for the exclusive benefit of the owners of each Separate Account, according to the laws of Connecticut. Income, gains and losses, whether or not realized, from assets allocated to the Separate Account are, in accordance with the Contracts, credited to or charged against the Separate Account without regard to other income, gains and losses of the Company. The assets held by the Separate Account are not chargeable with liabilities arising out of any other business that we may conduct. Obligations under the Contract are obligations of the Company. Any obligations that exceed the assets in the Separate Account are payable by the Company's general account. The amount of the guaranteed death benefit that exceeds the Contract Value is paid from the Company's general account. Benefit amounts paid from the general account are subject to the financial strength and claims paying ability of the Company. All investment income and other distributions of the funding options are payable to the Separate Account. We reinvest all such income and/or distributions in shares of the respective funding option at net asset value. Shares of the funding options are currently sold only to life insurance company separate accounts to fund variable annuity and variable life insurance contracts or to qualified pension or retirement plans as permitted under the Internal Revenue Code of 1986, as amended, and the regulations thereunder. We reserve the right to transfer the assets of the Separate Account to another separate account, and to modify the structure or operation of the Separate Account, subject to necessary regulatory approvals. If we do so, we guarantee that the modification will not affect your Contract Value. Certain variable annuity separate accounts and variable life insurance separate accounts may invest in the funding options simultaneously (called "mixed" and "shared" funding). It is conceivable that in the future it may be disadvantageous to do so. Although the Company and the Variable Funding Options do not currently foresee any such disadvantages either to variable annuity Contract Owners or variable life policy owners, each Variable Funding 38 Option's Board of Directors intends to monitor events in order to identify any material conflicts between them and to determine what action, if any, should be taken. If a Board of Directors was to conclude that separate funds should be established for variable life and variable annuity separate accounts, the variable annuity Contract Owners would not bear any of the related expenses, but variable annuity Contract Owners and variable life insurance policy owners would no longer have the economies of scale resulting from a larger combined fund. We anticipate merging the Separate Account(s) with and into another separate account of the Company (the MetLife of CT Separate Account Eleven for Variable Annuities) during the fourth quarter of 2008 at the earliest, subject to regulatory approval. This merger will have no effect on the provisions of, and the rights and obligations under, the Contract. Similarly, the merger will not have any adverse impact on your Contract Value or any tax consequences for you. PERFORMANCE INFORMATION In advertisements for the Contract, we may include performance figures to show you how a Variable Funding Option has performed in the past. These figures are rates of return or yield quotations shown as a percent. These figures show past performance of a Variable Funding Option and are not an indication of how a Variable Funding Option will perform in the future. Our advertisements may show performance figures assuming that you do not elect any optional features. However, if you elect any optional features, they involve additional charges that will cause the performance of your Variable Funding Options to decrease. You may wish to speak with your registered representative to obtain performance information specific to the optional features you may wish to select. Performance figures for each Variable Funding Option are based in part on the performance of a corresponding Underlying Fund. In some cases, the Underlying Fund may have existed before the technical inception of the corresponding Variable Funding Option. In those cases, we can create "hypothetical historical performance" of a Variable Funding Option. These figures show the performance that the Variable Funding Option would have achieved had it been available during the entire history of the Underlying Fund. In a low interest rate environment, yields for money market Subaccounts, after deduction of the Mortality and Expense Risk Charge, Administrative Expense Charge and the charge for any optional benefit riders (if applicable), may be negative even though the Underlying Fund's yield, before deducting for such charges, is positive. If you allocate a portion of your Contract Value to a money market Subaccount or participate in an asset allocation program where Contract Value is allocated to a money market Subaccount under the applicable asset allocation model, that portion of your Contract Value may decrease in value. FEDERAL TAX CONSIDERATIONS - -------------------------------------------------------------------------------- GENERAL THIS SECTION PROVIDES GENERAL INFORMATION REGARDING THE FEDERAL TAXATION OF ANNUITY CONTRACTS IN VARIOUS TAX "MARKETS", INCLUDING GENERAL INFORMATION REGARDING OPTIONAL ANNUITY CONTRACT BENEFITS SUCH AS LIVING BENEFITS RIDERS. THIS SECTION INCLUDES A DISCUSSION OF TAX MARKETS AND OPTIONAL BENEFITS THAT MAY NOT BE OFFERED BY THIS PROSPECTUS. CONSULT YOUR CONTRACT OR CERTIFICATE FOR MORE INFORMATION. Because of the complexity of the law and the fact that the tax results will vary according to the factual status of the individual involved, a person contemplating purchase of an annuity contract and/or Contract Owner, participant or Beneficiary who may make elections under a contract should consult with a qualified tax or legal adviser prior to such purchase or the making of an election. It should be understood that the foregoing description of the federal income tax consequences under these contracts is not exhaustive and that special rules are provided with respect to situations not discussed here. It should be understood that if a tax benefited plan loses its exempt status, employees could lose some of the tax benefits described. For further information, a qualified tax adviser should be consulted. You are responsible for determining whether your purchase of a Contract, withdrawals, Annuity Payments and any other transactions under your Contract satisfy applicable tax law. 39 Congress has recognized the value of saving for retirement by providing certain tax benefits for annuities. The Internal Revenue Code ("Code") governs how earnings on your investment in the Contract are ultimately taxed, depending upon the type of Contract, Qualified or Non-qualified, and the manner in which the money is distributed, as briefly described below. In analyzing the benefits of tax deferral it is important to note that the Jobs and Growth Tax Relief Reconciliation Act of 2003 reduced the marginal tax rates on long-term capital gains and dividends to 5% and 15%. The reduced rates apply during 2003 through 2008, and thereafter will increase to prior levels. Earnings under annuity Contracts, like interest payable on fixed investments (notes, bonds, etc.), continue to be taxed as ordinary income (current top rate of 35%). Under the current Code, the taxable portion of distributions under variable annuity contracts and qualified plans (including IRAs) is not eligible for the reduced tax rate applicable to long-term capital gains and dividends. We are not responsible for determining if your employer's plan or arrangement satisfies the requirements of the Code and/or ERISA (the Employee Retirement Income Security Act of 1974). If the Annuity is subject to the Retirement Equity Act because it is part of a plan subject to ERISA, the participant's spouse has certain rights which may be waived with the written consent of the spouse. Consult your tax advisor. The rules for state and local income taxes may differ from the Federal income tax rules. Contract Owners of the Contract should consult their own tax advisors and the law of the applicable taxing jurisdiction to determine what rules and tax benefits apply to the contract. Tax-Free Exchanges. Code Section 1035 provides that, if certain conditions are met, no gain or loss is recognized when an annuity contract is received in exchange for a life, endowment, or annuity contract. Since different annuity contracts have different expenses, fees and benefits, a tax-free exchange could result in your investment becoming subject to higher or lower fees and/or expenses. Federal Estate Taxes. While no attempt is being made to discuss the Federal estate tax implications of the Contract, you should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent's gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning advisor for more information. Generation-Skipping transfer tax. Under certain circumstances, the Code may impose a "generation skipping transfer tax" when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Contract owner. Regulations issued under the Code may require us to deduct the tax from your Contract, or from any applicable payment, and pay it directly to the IRS. Consult a tax advisor or attorney prior to naming a beneficiary or other payee under the Income Annuity to determine whether this tax may apply. The Company may be entitled to certain tax benefits related to the assets of the Separate Account. These tax benefits, which may include foreign tax credits and corporate dividend received deductions, are not passed back to the Separate Account or to Contract Owners since the Company is the owner of the assets from which the tax benefits are derived. PENALTY TAX FOR PREMATURE DISTRIBUTIONS Taxable distributions taken before the Contract Owner has reached the age of 59 1/2 will be subject to a 10% additional tax penalty unless the distribution is taken in a series of periodic distributions for life or life expectancy, or unless the distribution follows the death or disability of the Contract Owner. Other exceptions may be available in certain qualified plans. The 10% additional tax due is in addition to any penalties that may apply under your Contract and the normal income taxes due on the distribution. In general this does not apply to Section 457(b) annuities. However, it does apply to distributions from Contracts under Section 457(b) plans of employers which are state or local governments to the extent that the distribution is attributable to rollovers accepted from other types of eligible retirement plans. 40 NON-QUALIFIED ANNUITIES If you purchase the Contract on an individual basis with after-tax dollars and not under a tax qualified retirement plan or Individual Retirement Account, your Contract is referred to as non-qualified. As the Contract Owner of a non-qualified annuity, you do not receive any tax benefit (deduction or deferral of income) on Purchase Payments, but you will not be taxed on increases in the value of your Contract until a distribution occurs -- either as a withdrawal (distribution made prior to the Maturity Date), or as periodic Annuity Payments. When a withdrawal is made, you are taxed on the amount of the withdrawal that is considered earnings under federal tax laws. Similarly, when you receive an Annuity Payment, part of each periodic payment is considered a return of your Purchase Payments and will not be taxed. The remaining portion of the Annuity Payment (i.e., any earnings) will be considered ordinary income for federal income tax purposes. If a non-qualified annuity is owned by other than an individual (e.g. by a corporation), however, increases in the value of the Contract attributable to Purchase Payments made after February 28, 1986 are includable in income annually and taxed at ordinary income tax rates. Furthermore, for contracts issued after April 22, 1987, if you transfer the Contract to another person or entity without adequate consideration, all deferred increases in value will be includable in your income for federal income tax purposes at the time of the transfer. The tax law treats all non-qualified deferred annuities issued after October 21, 1988 by the same company (or its affiliates) to the same owner during any one calendar year as one annuity. This may cause a greater portion of your withdrawals from the Deferred Annuity to be treated as income than would otherwise be the case. Although the law is not clear, the aggregation rule may also adversely affect the tax treatment of payments received under an income annuity where the owner has purchased more than one non-qualified annuity during the same calendar year from the same or an affiliated company after October 21, 1988, and is not receiving income payments from all annuities at the same time. Under Section 1035 of the Code, your non-qualified Contract may be exchanged for another Non-Qualified annuity without paying income taxes if certain Code requirements are met and income payments have not yet commenced. Code Section 1035 provides that no gain or loss is recognized when an annuity contract or a portion of an existing annuity account balance is received in exchange for a life, endowment, or annuity Contract. Since different annuity contracts have different expenses, fees and benefits, a tax-free exchange (or a portion thereof) could result in your investment becoming subject to higher or lower fees and/or expenses. For partial exchanges under Section 1035, it is conceivable that the IRS could require aggregation of the several contracts if distributions have been taken from any of the contracts after the exchange within a certain period of time (e.g. 24 months) resulting in greater taxable income and adverse tax consequences such as imposition of the 10% penalty if the taxpayer has not attained age 59 1/2 at the time of the distribution(s). Additionally, consolidation of contracts under a Section 1035 exchange will cause an aggregation of contract values and may adversely impact gain reported and possible imposition of the 10% penalty if the taxpayer is under age 59 1/2 at the time of distribution from a consolidated contract. Where otherwise permitted under the Contract, pledges, direct or indirect borrowing against the value of the Contract and other types of transfers of all or a portion of your Contract Value may result in the immediate taxation of the gain in your Contract. This rule may not apply to certain transfers between spouses or between ex-spouses which are considered incident to divorce as defined by the Code. Consult your tax advisor prior to changing the annuitant or prior to changing the date you have determined to commence income payments, if permitted under the terms of your contract. It is conceivable that the IRS could consider such actions to be a taxable exchange of annuity contracts. DIVERSIFICATION REQUIREMENTS FOR VARIABLE ANNUITIES The Code requires that any non-qualified variable annuity contracts based on a Separate Account must meet specific diversification standards. Non-qualified variable annuity contracts shall not be treated as an annuity for federal income tax purposes if investments made in the account are not adequately diversified. Final tax regulations define how Separate Accounts must be diversified. The Company monitors the diversification of investments constantly and believes that its accounts are adequately diversified. The consequence of any failure to diversify is essentially the loss 41 to the Contract Owner of tax-deferred treatment, requiring the current inclusion of a proportionate share of the income and gains from the Separate Account assets in the income of each Contract Owner. The Company intends to administer all contracts subject to this provision of law in a manner that will maintain adequate diversification. If Underlying Fund shares are sold directly to tax-qualified retirement plans that later lose their tax-qualified status or to non-qualified plans, the Separate Account(s) investing in the Underlying Fund may fail the diversification requirements of Section 817(h) of the Code, which could have adverse tax consequences for variable Contract Owners, including losing the benefit of tax deferral. OWNERSHIP OF THE INVESTMENTS In certain circumstances, owners of variable annuity contracts have been considered to be the owners of the assets of the underlying Separate Account for federal income tax purposes due to their ability to exercise investment control over those assets. When this is the case, the Contract Owners have been currently taxed on income and gains attributable to the variable account assets. There is little guidance in this area, and some features of the Contract, such as the number of funds available and the flexibility of the Contract Owner to allocate premium payments and transfer amounts among the funding options, have not been addressed in public rulings. While we believe that the Contract does not give the Contract Owner investment control over Separate Account assets, we reserve the right to modify the Contract as necessary to prevent a Contract Owner from being treated as the owner of the Separate Account assets supporting the Contract. PARTIAL AND FULL WITHDRAWALS Any withdrawal is generally treated as coming first from earnings (determined based on the difference between the account balance prior to any surrender charges and the remaining basis, immediately prior to the withdrawal) and only after all earnings are paid out from your contributions (and thus a nontaxable return of principal). However, this rule does not apply to payments made under income annuities. Such payments are subject to an "exclusion ratio" or "excludable amount" which determines how much of each payment is a non-taxable return of your contributions/purchase payments and how much is a taxable payment of earnings. Once the total amount treated as a return of your contributions/purchase payments equals the amount of such contributions/purchase payments, all remaining payments are fully taxable. Generally, when you (or your beneficiary in the case of a death benefit) make a partial withdrawal from your Non-Qualified Annuity, the Code treats such a withdrawal as: - First coming from earnings (and thus subject to income tax); and - Then from your purchase payments (which are not subject to income tax). This rule does not apply to payments made pursuant to an income pay-out option under your Contract. In the case of a full withdrawal, the withdrawn amounts are treated as first coming from your non-taxable return of purchase payments and then from a taxable payment of earnings. In the event the proceeds on full surrender of your Contract are less than remaining purchase payments you may be able to claim a loss: consult a tax advisor as to whether a loss is allowable, the character of such loss and where to claim it in your Federal Income Tax return. INCOME ANNUITY PAYMENTS Generally, different tax rules apply to payments made pursuant to a pay-out option under your Contract than to withdrawals and payments received before the annuity starting date. Income payments are subject to an "excludable amount" or "exclusion ratio" which determines how much of each payment is treated as: - A non-taxable return of your purchase payment; and - A taxable payment of earnings. We will determine such excludable amount for each income payment under the Contract as a whole by using the rules applicable to variable income payments in general (i.e. by dividing your after-tax purchase price, as adjusted 42 for any refund or guarantee feature, by the number of expected income payments from the appropriate IRS table). However, the IRS may determine that the excludable amount is different from our computation. We generally will tell you how much of each income payment is a non-taxable return of your Purchase Payment. However, it is possible that the IRS could conclude that the taxable portion of income payments under a non-qualified contract is an amount greater (or less) than the taxable amount determined by us and reported by us to you and the IRS. Generally, once the total amount treated as a non-taxable return of your purchase payment equals your purchase payment, then all remaining payments are fully taxable. We will withhold a portion of the taxable amount of your income payment for income taxes, unless you elect otherwise. The amount we withhold is determined by the Code. Partial Annuitizations: At the present time the IRS has not approved the use of an exclusion ratio or exclusion amount when only part of your account balance is used to convert to income payments. Currently, we will treat the application of less than your entire Contract Value under a non-qualified Contract to a payment option (i.e. taking Annuity Payments) as a taxable withdrawal for federal income tax purposes (which may also be subject to the 10% penalty tax if you are under age 59 1/2). We will then treat the amount of the withdrawal (after any deductions for taxes) as the purchase price of an income annuity and tax report the income payments received for that annuity under the rules for variable income annuities. Consult your tax attorney prior to partially annuitizing your Contract. Income payments and amounts received on the exercise of a full withdrawal or partial withdrawal option under your non-qualified Contract may not be transferred in a tax-free exchange into another annuity contract. In accordance with our procedures, such amounts will instead be taxable under the rules for income payment or withdrawals, whichever is applicable. Additionally, if you are under age 59 1/2 at the time income payments commence and intend the income payments to constitute an exception to the 10% penalty tax, any attempt to make a tax-free transfer or rollover (whether for non- qualified or qualified annuities) prior to the later of (a) age 59 1/2, or (b) five years after income payments commence will generally invalidate the exception and subject you to income tax, additional penalties and interest. Generally, once the total amount treated as a non-taxable return of your purchase payment equals your purchase payment, then all remaining payments are fully taxable. We will withhold a portion of the taxable amount of your income payment for income taxes, unless you elect otherwise. The amount we withhold is determined by the Code. Under the Code, withdrawals or income payments from non-qualified annuities need not be made by a particular age. However, it is possible that the IRS may determine that you must take a lump sum withdrawal or elect to receive income payments by a certain age (e.g., 85). AFTER DEATH & DEATH BENEFITS: NON-QUALIFIED ANNUITIES TAXATION OF DEATH BENEFIT PROCEEDS The death benefit under an annuity is generally taxable to the recipient beneficiary or other payee, such as your estate, in the same manner as distributions made to the contract owner (using the rules for withdrawals or income payments, whichever is applicable). If you die before the annuity starting date, as defined under Treasury Regulations, we must make payment of your entire interest in the Contract within five years of the date of your death or begin payments for a period and in a manner allowed by the Code (and any regulations thereunder) to your beneficiary within one year of the date of your death. If your spouse is your beneficiary, he or she may elect to continue as "contract owner" of the Contract. If the Contract is issued in your name after your death for the benefit of your designated beneficiary with a purchase payment which is directly transferred to the Contract from another non-qualified account or non-qualified annuity you owned, the entire interest in the Contract including the value of all benefits in addition to the account balance must be distributed to your designated beneficiary under the required minimum distribution rules under the Code that apply after your death. Additionally, the death benefit must continue to be distributed to your beneficiary's beneficiary in a manner at least as rapidly as the method of distribution in effect at the time of your beneficiary's death. 43 After your death, if your designated beneficiary does not timely elect in accordance with our procedures a method for the payment of the death benefit complying with the Code, the remaining interest in the Contract must be distributed within five years of the date of your death. Code Section 72(s) requires that non-qualified annuity contracts meet minimum mandatory distribution requirements upon the death of any Contract Owner, including the death of either of the joint owners. If these requirements are not met, the Contract will not be treated as an annuity contract for federal income tax purposes and earnings under the Contract will be taxable currently, not when distributed. The distribution required depends, among other things, upon whether an annuity option is elected or whether the succeeding Contract Owner is the surviving spouse. We will administer contracts in accordance with these rules and we will notify you when you should begin receiving payments. If you die on or after the "annuity starting date," as defined under Treasury Regulations, payments must continue to be made at least as rapidly as under the income type being used as of the date of your death. If you die before all Purchase Payments are returned, the unreturned amount may be deductible on your final income tax return or deductible by either your beneficiary, if income payments continue after your death, or by your estate or your beneficiary if paid in a lump sum. In the case of joint owners, the above rules will be applied on the death of any Contract Owner. Where the Contract Owner is not a natural person, these rules will be applied on the death of or change of any annuitant (if changes to the annuitant are permitted under the Contract). QUALIFIED ANNUITY CONTRACTS If you purchase your Contract with proceeds of an eligible rollover distribution from any qualified employee pension plan or individual retirement annuity (IRA), or deductible IRA contributions, your Contract is referred to as a Qualified Contract. Some examples of Qualified Contracts are: IRAs, tax-sheltered annuities established by public school systems or certain tax-exempt organizations under Code Section 403(b), corporate sponsored pension and profit- sharing plans (including 401(k) plans), Keogh Plans (for self-employed individuals), and certain other qualified deferred compensation plans. Another type of Qualified Contract is a Roth IRA, under which after-tax contributions accumulate until maturity, when amounts (including earnings) may be withdrawn tax-free. The rights and benefits under a Qualified Contract may be limited by the terms of the retirement plan, regardless of the terms and conditions of the Contract. Plan participants making contributions to Qualified Contracts will be subject to the required minimum distribution rules as provided by the Code and described below. All IRAs, TSAs (ERISA and non-ERISA) sec.457(b), sec.403(a), SEP and SIMPLE plans and 401(a) and 401(k) plans (hereinafter "Qualified Plans" unless otherwise specified) receive tax deferral under the Code. Although there are no additional tax benefits by funding your Qualified Plan with an annuity, doing so does offer you additional insurance benefits such as the availability of a guaranteed income for life. TAXATION OF QUALIFIED ANNUITY CONTRACTS Under a qualified annuity, since amounts paid into the Contract have generally not yet been taxed, the full amount of such distributions, including the amount attributable to Purchase Payments, whether paid in the form of lump-sum withdrawals or Annuity Payments, are generally taxed at the ordinary income tax rate unless the distribution is transferred to an eligible rollover account or contract. The Contract is available as a vehicle for IRA rollovers and for other Qualified Contracts. There are special rules which govern the taxation of Qualified Contracts, including withdrawal restrictions, requirements for mandatory distributions, and contribution limits. Amounts rolled over to the Contract from other qualified plan funding vehicles are generally not subject to current taxation. MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS Federal tax law requires that minimum annual distributions begin by April 1st of the calendar year following the calendar year in which an IRA owner attains age 70 1/2. Participants in qualified plans 457(b) plans, and 403(b) annuities may defer minimum distributions until the later of April 1st of the calendar year following the 44 calendar year in which they attain age 70 1/2 or the year of retirement (except for 5% or more owners). If you own more than one individual retirement annuity and/or account, you may satisfy the minimum distribution rules on an aggregate basis (i.e. determine the total amount of required distributions from all IRAs and take the required amount from any one or more IRAs). A similar aggregate approach is available to meet your 403(b) minimum distribution requirements if you have multiple 403(b) annuities. Recently promulgated Treasury regulations changed the distribution requirements; therefore, it is important that you consult your tax advisor as to the impact of these regulations on your personal situation. Final income tax regulations regarding minimum distribution requirements were released in June 2004. These regulations affect both deferred and income annuities. Under these new rules, effective with respect to minimum distributions required for the 2006 distribution year, in general, the value of all benefits under a deferred annuity (including death benefits in excess of cash value) must be added to the Contract Value in computing the amount required to be distributed over the applicable period. We will provide You with additional information as to the amount of your interest in the Contract that is subject to required minimum distributions under this new rule and either compute the required amount for You or offer to do so at Your request. The new rules are not entirely clear and you should consult your own tax advisors as to how these rules affect your own Contract. MINIMUM DISTRIBUTIONS FOR BENEFICIARIES UPON THE CONTRACT OWNER'S DEATH Upon the death of the Contract Owner and/or Annuitant of a Qualified Contract, the funds remaining in the Contract must be completely withdrawn within 5 years from the date of death (including in a single lump sum) or minimum distributions may be taken over the life expectancy of the individual beneficiaries (and in certain situations, trusts for individuals), provided such distributions are payable at least annually and begin within one year from the date of death. Special rules apply in the case of an IRA where the beneficiary is the surviving spouse, which allow the spouse to assume the Contract as owner. Alternative rules permit a spousal beneficiary under a qualified contract, including an IRA, to defer the minimum distribution requirements until the end of the year in which the deceased owner would have attained age 70 1/2, or to rollover the death proceeds to his or her own IRA or to another eligible retirement plan in which he or she participates. NOTE TO PARTICIPANTS IN QUALIFIED PLANS INCLUDING 401, 403(B), 457 AS WELL AS IRA OWNERS: While annual plan contribution limits may be increased from time to time by Congress and the IRS for federal income tax purposes, these limits must be adopted by each state for the higher limits to be effective at a state income tax level. In other words, permissible contribution limit for income tax purposes may be different at the federal level from your state's income tax laws. Please consult your employer or tax adviser regarding this issue. INDIVIDUAL RETIREMENT ANNUITIES The Contract has not been submitted to the IRS for approval as to form as a valid IRA. Such approval would not constitute an IRS approval or endorsement of any funding options under the contract. IRS approval as to form is not required to constitute a valid IRA. Disqualification of the Contract as an IRA could result in the immediate taxation of amounts held in the Contract and other adverse tax consequences. To the extent of earned income for the year and not exceeding the applicable limit for the taxable year, an individual may make deductible contributions to an individual retirement annuity (IRA). The applicable limit is $5,000 in 2008, and may be indexed for inflation in future years. Additional "catch-up contributions" may be made to an IRA by individuals age 50 or over. There are certain limits on the deductible amount based on the adjusted gross income of the individual and spouse and on their participation in a retirement plan. If an individual is married and the spouse is not employed, the individual may establish IRAs for the individual and spouse. The single purchase payment may include the deductible contribution for the year of purchase. Purchase Payments may then be made annually into IRAs for both spouses in the maximum amount of 100% of earned income up to a combined limit based on the individual limits outlined above. Deductible contributions to an IRA and Roth IRA must be aggregated for purposes of the individual Code Section 408A limits and the Code Section 219 limits (age 50+ catch-up). Partial or full distributions are treated as ordinary income, except that amounts contributed after 1986 on a non-deductible basis are not includable in income when distributed. An additional tax of 10% will apply to any taxable 45 distribution from the IRA that is received by the participant before the age of 59 1/2 except by reason of death, disability or as part of a series of payments for life or life expectancy. Distributions must commence by April 1st of the calendar year after the close of the calendar year in which the individual attains the age of 70 1/2. Certain other mandatory distribution rules apply on the death of the individual. The individual must maintain personal and tax return records of any non-deductible contributions and distributions. Section 408(k) of the Code provides for the purchase of a Simplified Employee Pension (SEP) plan. A SEP is funded through an IRA and can accept an annual employer contribution limited to the lesser of $46,000 or 100% of pay for each participant in 2008. ROTH IRAS Section 408A of the Code permits certain individuals to contribute to a Roth IRA. Eligibility to make contributions is based upon income, and the applicable limits vary based on marital status and/or whether the contribution is a rollover contribution from another IRA or an annual contribution. Contributions to a Roth IRA, which are subject to certain limitations, (similar to the annual limits for traditional IRAs), are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A conversion of "traditional" IRA to a Roth IRA may be subject to tax and other special rules apply. You should consult a tax adviser before combining any converted amounts with other Roth IRA contributions, including any other conversion amounts from other tax years. Qualified distributions from a Roth IRA are tax-free. A qualified distribution requires that the Roth IRA has been held for at least 5 years, and the distribution is made after age 59 1/2, on death or disability of the owner, or for a limited amount ($10,000) for a qualified first time home purchase for the owner or certain relatives. Income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during five taxable years starting with the year in which the first contribution is made to the Roth IRA. CONVERSION You may convert/rollover an existing IRA to a Roth IRA if your modified adjusted gross income does not exceed $100,000 in the year you convert. If you are married but file separately, you may not convert a Traditional IRA into a Roth IRA. Except to the extent you have non-deductible IRA contributions, the amount converted from an existing IRA into a Roth IRA is taxable. Generally, the 10% early withdrawal penalty does not apply to conversions/rollovers. (See discussion below). Unless you elect otherwise, amounts you convert from a Traditional IRA to a Roth IRA will be subject to income tax withholding. The amount withheld is determined by the Code. Note: new IRS guidance requires that in the case of a redesignation of a Traditional IRA into a Roth IRA under the same Contract, the amount that is treated as a taxable distribution is the entire value of the contract, in addition to the account balance. The method(s) under which this value must be determined has not been finalized by the IRS. However, interim guidance has been issued which provides the Issuer may use a method similar to that used in determining the required minimum distribution (but without certain exceptions and assumptions being permitted). Additionally, issuers are required to increase the value subject to tax in the year of the redesignation by any front loads or non-recurring charges (this could include contractual withdrawal charges) imposed in the 12 months prior to the conversion. If your Contract permits such redesignation, consult your tax advisor prior to redesignating your Traditional IRA to a Roth. If you mistakenly convert or otherwise wish to change your Roth IRA contribution to a Traditional IRA contribution, the tax law allows you to reverse your conversion provided you do so before you file your tax return for the year of the contribution and if certain conditions are met. In general, a taxpayer may be permitted to revoke or recharacterize a previous conversion from a Traditional IRA to a Roth IRA provided that certain conditions are met. Consult your tax advisor and the instructions to IRS Form 8606 which indicates how and when the recharacterization must be made to be valid and how amounts should be reported. The income tax regulations also impose a waiting period to make a reconversion after such a reversal or recharacterization. 46 KEOGH A Keogh plan is generally a qualified retirement plan (defined contribution or defined benefit) that covers a self-employed person. Other employees may also be covered. Special rules apply to contribution limits in the case of a self- employed person. The tax rules work similarly to the withdrawal, distribution and eligible distribution rules as under IRAs. However, there may be some differences: consult your tax advisor. SECTION 403(B) PLANS AND ARRANGEMENTS GENERAL TSAs fall under sec.403(b) of the Code, which provides certain tax benefits to eligible employees of public school systems and organizations that are tax exempt under sec.501(c)(3) of the Code. In general contributions to sec.403(b) arrangements are subject limitations under sec.415(c) of the Code (the lesser of 100% of includable compensation or the applicable limit for the year). Note: Income tax regulations issued in July 2007 will require certain fundamental changes to these arrangements including (a) a requirement that there be a written plan document in addition to the annuity contract or sec.403(b)(7) custodial account, (b) significant restrictions on the ability for participants to direct proceeds between 403(b) annuity contracts and (c) additional restrictions on withdrawals of amount attributable to contributions other than elective deferrals. The regulations are generally effective for taxable years beginning after December 31, 2008. However, certain aspects including a prohibition on the use of new life insurance contracts under 403(b) arrangements and rules affecting payroll taxes on certain types of contributions are currently effective. WITHDRAWALS AND INCOME PAYMENTS If you are under 59 1/2, you cannot withdraw money from your TSA Contract unless the withdrawal: - Relates to Purchase Payments made prior to 1989 (and pre-1989 earnings on those Purchase Payments). - Is directly transferred to another permissible investment under Section 403(b) arrangements; - Relates to amounts that are not salary reduction elective deferrals; - Occurs after you die, leave your job or become disabled (as defined by the Code); or - Is for financial hardship (but only to the extent of Purchase Payments) if your plan allows it. Purchase Payments for a tax-deferred annuity contract (including salary reduction contributions) may be made by an employer for employees under annuity plans adopted by public educational organizations and certain organizations which are tax exempt under Section 501 (c) (3) of the Code. Within statutory limits ($15,500 in 2008), such salary reduction contributions are not currently includable in the gross income of the participants. Additional "catch-up contributions" may be made by individuals age 50 or over. Increases in the value of the Contract attributable to these Purchase Payments are similarly not subject to current taxation. Instead, both the contributions to the tax- sheltered annuity and the income in the Contract are taxable as ordinary income when distributed. An additional tax of 10% will apply to any taxable distribution received by the participant before the age of 59 1/2, except when due to death, disability, or as part of a series of payments for life or life expectancy, or made after the age of 55 with separation from service. There are other statutory exceptions that may apply in certain situations. Amounts attributable to salary reductions made to a tax-sheltered annuity and income thereon may not be withdrawn prior to attaining the age of 59 1/2, severance from employment, death, total and permanent disability, or in the case of hardship as defined by federal tax law and regulations. Hardship withdrawals are available only to the extent of the salary reduction contributions and not from the income attributable to such contributions. These restrictions do not apply to assets held generally as of December 31, 1988. 47 Distributions must begin by April 1st of the calendar year following the later of the calendar year in which the participant attains the age of 70 1/2 or the calendar year in which the Participant retires. Certain other mandatory distribution rules apply at the death of the participant. Certain distributions, including most partial or full redemptions or "term-for- years" distributions of less than 10 years, are eligible for direct rollover to another 403 (b) contract, certain qualified plans or to an Individual Retirement Arrangement (IRA) without federal income tax or withholding. To the extent an eligible rollover distribution is not directly rolled over to another 403(b) contract, an IRA or eligible qualified contract, 20% of the taxable amount must be withheld. In addition, current tax may be avoided on eligible rollover distributions which were not directly transferred to a qualified retirement program if the participant makes a rollover to a qualified retirement plan or IRA within 60 days of the distribution. Distributions in the form of annuity payments are taxable to the participant or Beneficiary as ordinary income in the year of receipt, except that any distribution that is considered the participant's "investment in the Contract" is treated as a return of capital and is not taxable. SECTION 403(B) LOANS Some 403(b) Contract loans will be made only from a Fixed Account balance up to certain limits. In that case, we credit your Fixed Account. If your TSA Contract permits loans, such loans will be made only from any Fixed Account balance and only up to certain limits. In that case, we credit the Fixed Account balance up to the amount of the outstanding loan balance with a rate of interest that is less than the interest rate we charge for the loan. The Code and applicable income tax regulations limit the amount that may be borrowed from your 403(b) annuity and all employer plans in the aggregate and also require that loans be repaid, at a minimum, in scheduled level payments over a certain term. Your Contract will indicate whether contract loans are permitted. The terms of the loan are governed by the Contract and loan agreement. Failure to satisfy loan limits under the Code or to make any scheduled payments according to the terms of your loan agreement and Federal tax law could have adverse tax consequences. Consult a tax advisor and read your loan agreement and Contract prior to taking any loan. DESIGNATED ROTH ACCOUNTS FOR 403(B) & 401(K) PLANS Effective January 1, 2006, employers that have established and maintain TSA or 401(k) plans (collectively the "Plan") may also establish a Qualified Roth Contribution Program under Section 402A of the Code ("Designated Roth Accounts") to accept after tax contributions as part of the TSA or 401(k) plan. In accordance with our administrative procedures, we may permit these contributions to be made as purchase payments to a Section 403(b) Contract or to a Contract issued under a 401(k) program under the following conditions: 1. The employer maintaining the plan has demonstrated to our satisfaction that Designated Roth Accounts are permitted under the Plan. 2. In accordance with our administrative procedures, the amount of elective deferrals has been irrevocably designated as an after-tax contribution to the Designated Roth Account. 3. All state regulatory approvals have been obtained to permit the Contract to accept such after-tax elective deferral contributions (and, where permitted under the Qualified Roth Contribution Program and the Contract, rollovers and trustee-to-trustee transfers from other Designated Roth Accounts). 4. In accordance with our procedures and in a form satisfactory to us, we may accept rollovers from other funding vehicles under any Qualified Roth Contribution Program of the same type in which the employee participates as well as trustee-to-trustee transfers from other funding vehicles under the same Qualified Roth Contribution Program for which the participant is making elective deferral contributions to the Contract. 5. No other contribution types (including employer contributions, matching contributions, etc.) will be allowed as designated Roth contributions, unless they become permitted under the Code. 48 6. If permitted under the Code, we may permit both pre-tax contributions under a plan as well as after-tax contributions under that Plan's Qualified Roth Contribution Program to be made under the same Contract as well as rollover contributions and contributions by trustee-to- trustee transfers. In such cases, we will account separately for the designated Roth contributions and the earnings thereon from the contributions and earnings made under the pre-tax TSA plan or pre-tax 401(k) plan (whether made as elective deferrals, rollover contributions or trustee-to-trustee transfers). As between the pre-tax or traditional Plan and the Qualified Roth Contribution Program, we will allocate any living benefits or death benefits provided under the Contract on a reasonable basis, as permitted under the tax law. However, we reserve the right to require a separate TSA Contract to accept designated Roth TSA contributions and a separate Section 401(k) Contract to accept designated Roth 401(k) contributions. 7. We may refuse to accept contributions made as rollovers and trustee- to-trustee transfers, unless we are furnished with a breakdown as between participant contributions and earnings at the time of the contribution. Many of the federal income tax rules pertaining to Designated Roth Accounts have not yet been finalized. Both you and your employer should consult their own tax and legal advisors prior to making or permitting contributions to be made to a Qualified Roth Contribution Program. The following general tax rules are based on our understanding of the Code and any regulations issued through December 31, 2005, and are subject to change and to different interpretation as well as additional guidance in respect to areas not previously addressed: - The employer must permit contributions under a pre-tax 403(b) or pretax 401 (k) plan in order to permit contributions to be irrevocably designated and made part of the Qualified Roth Contribution Program. - Elective deferral contributions to the Designated Roth Account must be aggregated with all other elective deferral contributions made by a taxpayer for purposes of the individual Code Section 402(g) limits and the Code Section 414(v) limits (age 50+ catch-up) as well as contribution limits that apply under the Plan. - In general, the same tax law rules with respect to restricted monies, triggering events and permitted distributions will apply to the Designated Roth Accounts under the Plan, if such amounts have been held under any Designated Roth Account for at least 5 years, as apply to the traditional pre-tax accounts under the Plan ( e.g., death or disability of participant, severance from employment, attainment of age 59 1/2, or hardship (withdrawals only with respect to contributions), if permitted under the Plan). - If the amounts have been held under any Designated Roth Account of a participant for at least five years, and are made on account of death, disability, or after attainment of age 59 1/2, then any withdrawal, distribution or payment of these amounts is generally free of federal income tax ("Qualified Distribution"). - Unlike Roth IRAs, withdrawals, distributions and payments that do not meet the five year rule will generally be taxed on a pro-rated basis with respect to earnings and after-tax contributions. The 10% penalty tax will generally apply on the same basis as a traditional pre-tax account under the Plan. Additionally, rollover distributions may only be made tax-free into another Designated Roth Account or into a Roth IRA. - Some states may not permit contributions to be made to a Qualified Roth Contribution Program or may require additional conforming legislation for these rules to become effective. QUALIFIED PENSION AND PROFIT-SHARING PLANS Like most other contributions made under a qualified pension or profit-sharing trust described in Section 401(a) of the Code and exempt from tax under Section 501(a) of the Code, a Purchase Payment made by an employer (including salary reduction contributions under Section 401(k) of the Code) is not currently taxable to the participant and increases in the value of a contract are not subject to taxation until received by a participant or Beneficiary. For 2008, the applicable limits are $46,000 for total contributions and $15,500 salary reduction contributions made pursuant to Code Section 401(k). Additional "catch- up contributions" may be made by individuals age 50 or over ($5000 for 2008). 49 Distributions in the form of annuity payments are taxable to the participant or Beneficiary as ordinary income in the year of receipt, except that any distribution that is considered the participant's "investment in the contract" is treated as a return of capital and is not taxable. Certain eligible rollover distributions including most partial and full surrenders or term-for-years distributions of less than 10 years are eligible for direct rollover to an eligible retirement plan or to an IRA without federal income tax withholding. If a distribution that is eligible for rollover is not directly rolled over to another qualified retirement plan or IRA, 20% of the taxable amount must be withheld. In addition, current tax may be avoided on eligible rollover distributions that were not directly transferred to a qualified retirement program if the participant makes a rollover contribution to a qualified retirement plan or IRA within 60 days of the distribution. Distributions must begin by April 1st of the calendar year following the later of the calendar year in which you attain age 70 1/2 or the calendar year in which you retire, except that if you are a 5% owner as defined in Code Section 416(i)(1)(B), distributions must begin by April 1st of the calendar year following the calendar year in which you attain age 70 1/2. Certain other mandatory distribution rules apply on the death of the participant. An additional tax of 10% will apply to any taxable distribution received by the participant before the age of 59 1/2, except by reason of death, disability or as part of a series of payments for life or life expectancy, or at early retirement at or after the age of 55. There are other statutory exceptions which may apply in certain situations. Amounts attributable to salary reduction contributions under Code Section 401(k) and income thereon may not be withdrawn prior to severance from employment, death, total and permanent disability, attainment of age 59 1/2, or in the case of hardship. SECTION 457 PLANS Section 457 of the Code allows employees and independent contractors of state and local governments and tax-exempt organizations to defer a portion of their salaries or compensation to retirement years without paying current income tax on either the deferrals or the earnings on the deferrals. Such deferrals are subject to limits similar to those applicable to 403(b) and 401(k) plans. Such plans are not available for churches and qualified church controlled organizations. The Contract Owner of contracts issued under Section 457 plans by non- governmental employers is the employer of the Participant and amounts may not be made available to Participants (or beneficiaries) until separation from service, retirement or death or an unforeseeable emergency as determined by Treasury Regulations. The proceeds of annuity contracts purchased by Section 457 plans are subject to the claims of general creditors of the employer or contractor. A different rule applies with respect to Section 457 plans that are established by governmental employers. The contract must be for the exclusive benefit of the Plan Participants (and their beneficiaries), and the governmental employer (and their creditors) must have no claim on the contract. Distributions must begin by April 1st of the calendar year following the later of the calendar year in which the Participant attains the age of 70 1/2 or the calendar year in which the participant retires. Certain other mandatory distribution rules apply upon the death of the participant. All distributions from plans that meet the requirements of Section 457 of the Code are taxable as ordinary income in the year paid or made available to the participant or Beneficiary. Generally, monies in your Contract can not be "made available" to you until you, reach age 70 1/2, leave your job or your employer changes or have an unforeseen emergency (as defined by the Code). The tax rules for taxation of distributions and withdrawals work similarly as to those for IRAs. However the 10% penalty tax only applies to distributions and withdrawals that are attributable to rollovers from IRAs and other eligible retirement plans, and do not apply at all to 457(b) plans of tax exempt employers other than state or local governmental units. Distributions and withdrawals under a 457(b) plan of a tax exempt employer that is not a governmental unit are generally taxed under the rules applicable to wages. Consult your tax advisor. LOANS: In the case of a 457(b) plan maintained by a state or local government, the plan may permit loans. The Code and applicable income tax regulations limit the amount that may be borrowed from your 457(b) plan and all employer plans in the aggregate and also require that loans be repaid, at a minimum, in scheduled level payments over a certain term. 50 Your 457(b) plan will indicate whether plan loans are permitted. The terms of the loan are governed by your loan agreement with the plan. Failure to satisfy loan limits under the Code or to make any scheduled payments according to the terms of your loan agreement and Federal tax law could have adverse tax consequences. Consult a tax advisor and read your loan agreement and Contract prior to taking any loan. 403(A) GENERAL The employer adopts a 403(a) plan as a qualified retirement plan to provide benefits to participating employees. The plan generally works in a similar manner to a corporate qualified retirement plan except that the 403(a) plan does not have a trust or a trustee. See the "General" headings under Income Taxes for a brief description of the tax rules that apply to 403(a) annuities. THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 Under ERISA, certain special provisions may apply to the Contract if the Contract Owner of a Section 403(b) plan Contract or the owner of a contract issued to certain qualified plans requests that the Contract be issued to conform to ERISA or if the Company has notice that the Contract was issued pursuant to a plan subject to ERISA. ERISA requires that certain Annuity Options, withdrawals or other payments and any application for a loan secured by the Contract may not be made until the Participant has filed a Qualified Election with the plan administrator. Under certain plans, ERISA also requires that a designation of a Beneficiary other than the participant's spouse be deemed invalid unless the participant has filed a Qualified Election. A Qualified Election must include either the written consent of the Participant's spouse, notarized or witnessed by an authorized plan representative, or the participant's certification that there is no spouse or that the spouse cannot be located. The Company intends to administer all contracts to which ERISA applies in a manner consistent with the direction of the plan administrator regarding the provisions of the plan, in accordance with applicable law. Because these requirements differ according to the plan, a person contemplating the purchase of an annuity contract should consider the provisions of the plan. FEDERAL INCOME TAX WITHHOLDING & ELIGIBLE ROLLOVER DISTRIBUTIONS The portion of a distribution that is taxable income to the recipient will be subject to federal income tax withholding, generally pursuant to Section 3405 of the Code. The application of this provision is summarized below. We are required to withhold 20% of the portion of your withdrawal that constitutes an "eligible rollover distribution" for Federal income taxes. We are not required to withhold this money if you direct us or the trustee or the custodian of the plan to directly rollover your eligible rollover distribution to a traditional IRA or another eligible retirement plan. Generally, an "eligible rollover distribution" is any taxable amount you (or a spousal designated beneficiary or "alternate payee" under the Code) receives from your Contract. In certain cases, after-tax amounts may also be considered eligible rollover distributions. However, it does not include taxable distributions that are: (1) Part of a series of substantially equal payments being made at least annually for: - your life or life expectancy - both you and your beneficiary's lives or life expectancies or - a specified period of 10 years or more (2) Generally, income payments made under a permissible income annuity on or after the required beginning date are not eligible rollover distributions 51 (3) Withdrawals to satisfy minimum distribution requirements (4) Certain withdrawals on account of financial hardship Other exceptions to the definition of eligible rollover distribution may exist. Effective March 28, 2005, certain mandatory distributions made to participants in an amount in excess of $1,000 must be automatically rolled over to an IRA designated by the plan administrator, unless the participant elects to receive it in cash or roll it over to a different IRA or eligible retirement plan of his or her own choosing. Generally, transitional rules apply as to when plans have to be amended. Special effective date rules apply for governmental plans and church plans. A distribution including a rollover that is not a direct rollover will require the 20% withholding, and the 10% additional tax penalty on premature withdrawals may apply to any amount not added back in the rollover. The 20% withholding may be recovered when the participant or Beneficiary files a personal income tax return for the year if a rollover was completed within 60 days of receipt of the funds, except to the extent that the participant or spousal Beneficiary is otherwise underwithheld or short on estimated taxes for that year. OTHER NON-PERIODIC DISTRIBUTIONS (FULL OR PARTIAL REDEMPTIONS) To the extent not subject to the mandatory 20% withholding as described in above, the portion of a non-periodic distribution which constitutes taxable income will be subject to federal income tax withholding, to the extent such aggregate distributions exceed $200 for the year, unless the recipient elects not to have taxes withheld. If an election to opt out of withholding is not provided, 10% of the taxable portion of the distribution will be withheld as federal income tax; provided that the recipient may elect any other percentage. Election forms will be provided at the time distributions are requested. This form of withholding applies to all annuity programs. PERIODIC DISTRIBUTIONS (DISTRIBUTIONS PAYABLE OVER A PERIOD GREATER THAN ONE YEAR) The portion of a periodic distribution that constitutes taxable income will be subject to federal income tax withholding under the wage withholding tables as if the recipient were married claiming three exemptions. A recipient may elect not to have income taxes withheld or have income taxes withheld at a different rate by providing a completed election form. Election forms will be provided at the time distributions are requested. This form of withholding applies to all annuity programs. Recipients who elect not to have withholding made are liable for payment of federal income tax on the taxable portion of the distribution. All recipients may also be subject to penalties under the estimated tax payment rules if withholding and estimated tax payments are not sufficient. Recipients who do not provide a social security number or other taxpayer identification number will not be permitted to elect out of withholding. Additionally, United States citizens residing outside of the country, or United States legal residents temporarily residing outside the country, are subject to different withholding rules and cannot elect out of withholding. TAXATION OF DEATH BENEFIT PROCEEDS Amounts may be distributed from a Contract because of the death of an owner or Annuitant. Generally, such amounts are includable in the income of the recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a full surrender of the Contract; or (ii) if distributed under a payment option, they are taxed in the same way as Annuity Payments. Under the Code, withdrawals need not be made by a particular age. However, it is possible that the Internal Revenue Service may determine that the Contract must be surrendered or annuity payments must commence by a certain age (e.g., 85 or older) or your Contract may require that you commence payments by a certain age. 52 OTHER TAX CONSIDERATIONS TREATMENT OF CHARGES FOR OPTIONAL BENEFITS (IF AVAILABLE UNDER YOUR CONTRACT) The Contract may provide one or more optional enhanced death benefits or other minimum guaranteed benefit that in some cases may exceed the greater of purchase price or the Contract Value. It is possible that the Internal Revenue Service may take the position that the charges for the optional enhanced benefit(s) are deemed to be taxable distributions to you. Although we do not believe that a charge under such optional enhanced benefit should be treated as a taxable withdrawal, you should consult with your tax adviser before selecting any rider or endorsement to the Contract. Certain living benefits may not be made available under contracts issued to a designated beneficiary after the Owner's death (e.g. a "Stretch IRA" or a Stretch non-qualified contract) or, where otherwise made available, may have limited value due to minimum distributions required to be made under the tax law after the owner's death. Consult your tax advisor. Where made available under the Contract, certain optional benefits may be inappropriate under IRA and other tax-qualified contracts due to required minimum distribution requirements. Consult your tax advisor. Final income tax regulations regarding minimum distribution requirements were released in June 2004. These regulations affect both deferred and income annuities. Under these new rules, effective with respect to minimum distributions required for the 2006 distribution year, in general, the value of all benefits under a deferred annuity (including death benefits in excess of cash value, as well as all living benefits) must be added to the account value in computing the amount required to be distributed over the applicable period. We will provide you with additional information as to the amount of your interest in the Contract that is subject to required minimum distributions under this new rule and either compute the required amount for you or offer to do so at your request. The new rules are not entirely clear and you should consult your own tax advisors as to how these rules affect your own Contract. GUARANTEED MINIMUM WITHDRAWAL BENEFIT (IF AVAILABLE UNDER YOUR CONTRACT) If you have purchased a GMWB, where otherwise made available, note the following: The tax treatment of withdrawals under such a benefit is uncertain. It is conceivable that the amount of potential gain could be determined based on the remaining amounts guaranteed to be available for withdrawal at the time of the withdrawal if greater than the Contract Value (prior to surrender charges). This could result in a greater amount of taxable income in certain cases. In general, at the present time, we intend to tax report such withdrawals using the Contract Value rather than the remaining benefit to determine gain. However, in cases where the maximum permitted withdrawal in any year under any version of the GMWB exceeds the Contract Value, the portion of the withdrawal treated as taxable gain (not to exceed the amount of the withdrawal) should be measured as the difference between the maximum permitted withdrawal amount under the benefit and the remaining after-tax basis immediately preceding the withdrawal. We reserve the right to change our tax reporting practices where we determine they are not in accordance with IRS guidance (whether formal or informal). HURRICANE RELIEF DISTRIBUTIONS: Your plan may provide for "qualified hurricane distributions" pursuant to the Katrina Emergency Tax Relief Act of 2005 and the Gulf Opportunity Zone Act of 2005. Subject to an aggregate limit of $100,000 among all eligible retirement plans, a participant's qualified hurricane distributions are not subject to the 10% early withdrawal penalty that might otherwise apply to a qualified annuity under Section 72(t). To the extent a participant "repays" a qualified hurricane distribution by contributing within three years of the distribution date to an eligible retirement plan that accepts rollover contributions, it will generally be treated as a timely direct trustee-to-trustee transfer and will not be subject to income tax. To the extent a participant does not repay a qualified hurricane distribution within three years, he or she will include the distribution in gross income ratably over the three-tax year period, beginning with the tax year in which the distribution is received, unless the participant elects to opt out of three-year averaging by including the qualified hurricane distribution in gross income 53 for the year it is received. Consult your independent tax advisor to determine if hurricane relief is available to Your particular situation. LOANS: Your plan may provide for increased limits and delayed repayment of participant loans, where otherwise permitted by your plan, pursuant to the Katrina Emergency Tax Relief Act of 2005 and the Gulf Opportunity Zone Act of 2005. An eligible retirement plan other than an IRA may allow a plan loan to delay loan repayment by certain individuals impacted by Hurricanes Katrina, Rita and Wilma , whose principal places of abode on certain dates were located in statutorily defined disaster areas and who sustained an economic loss due to the hurricane. Generally, if the due date for any repayment with respect to such loan occurs during a period beginning on September 23, 2005 (for purposes of Hurricane Katrina) or October 23, 2005 (for purposes of Hurricanes Rita and Wilma) and ending on December 31, 2006, then such due date may be delayed for one year. Note: For purposes of these loan rules, an individual cannot be a qualified individual with respect to more than one hurricane. Consult your independent tax advisor to determine if hurricane relief is available to Your particular situation. PUERTO RICO TAX CONSIDERATIONS The Puerto Rico Internal Revenue Code of 1994 (the "1994 Code") taxes distributions from non-qualified annuity contracts differently than in the United States. Distributions that are not in the form of an annuity (including partial surrenders and period certain payments) are treated under the 1994 Code first as a return of investment. Therefore, a substantial portion of the amounts distributed will generally be excluded from gross income for Puerto Rico tax purposes until the cumulative amount paid exceeds your tax basis. The amount of income on annuity distributions (payable over your lifetime) is also calculated differently under the 1994 Code. Since Puerto Rico residents are also subject to United States income tax on all income other than income sourced to Puerto Rico, and the Internal Revenue Service issued guidance in 2004 which indicated that the income from an annuity contract issued by a United States life insurer would be considered United States source income, the timing of recognition of income from an annuity contract could vary between the two jurisdictions. Although the 1994 Code provides a credit against the Puerto Rico income tax for United States income taxes paid, an individual may not get full credit because of the timing differences. You should consult with a personal tax adviser regarding the tax consequences of purchasing an annuity contract and/or any proposed distribution, particularly a partial distribution or election to annuitize. NON-RESIDENT ALIENS Distributions to non-resident aliens ("NRAs") are subject to special and complex tax and withholding rules under the Code with respect to United States source income, some of which are based upon the particular facts and circumstances of the Contract Owner, the beneficiary and the transaction itself. As stated above, the IRS has taken the position that income from the Contract received by NRAs is considered United States source income. In addition, Annuity Payments to NRAs in many countries are exempt from United States tax (or subject to lower rates) based upon a tax treaty, provided that the Contract Owner complies with the applicable requirements. NRAs should seek guidance from a tax adviser regarding their personal situation. CHANGES TO TAX RULES AND INTERPRETATIONS Changes in applicable tax rules and interpretations can adversely affect the tax treatment of your Contract. These changes may take effect retroactively. Examples of changes that could create adverse tax consequences include: - Possible taxation of transfers/reallocations between investment divisions or transfers/reallocations from a Subaccount to the Fixed Account. - Possible taxation as if you were the Contract Owner of your portion of the Separate Account's assets. - Possible limits on the number of funding options available or the frequency of transfers among them. We reserve the right to amend your Contract where necessary to maintain its status as a variable annuity contract under federal tax law and to protect you and other Contract Owners in the Subaccounts from adverse tax consequences. 54 INFORMATION INCORPORATED BY REFERENCE - -------------------------------------------------------------------------------- Under the Securities Act of 1933, the Company has filed with the Securities and Exchange Commission ("SEC") a registration statement (the "Registration Statement") relating to the Contracts offered by this prospectus. This prospectus has been filed as a part of the Registration Statement and does not contain all of the information set forth in the Registration Statement and the exhibits, and reference is hereby made to such Registration Statement and exhibits for further information relating to the Company and the Contracts. The Company's latest annual report on Form 10-K was filed with the SEC on March 27, 2008 via EDGAR File No. 033-0394. The Form 10-K for the period ended December 31, 2007 contains additional information about the Company, including consolidated audited financial statements for the Company's latest fiscal year. The Company also filed its Form 8-K on April 3, 2008 via EDGAR File No. 033- 0394. The Form 10-K, as updated by the Form 8-K, is incorporated by reference into this prospectus. All other reports filed by the Company pursuant to Section 13(a) or 15(d) of the Exchange Act (such as quarterly and periodic reports) or proxy or information statements filed pursuant to Section 14 of the Exchange Act since the end of the fiscal year ending December 31, 2007 are also incorporated by reference into this prospectus. We are not incorporating by reference, in any case, any documents or information deemed to have been furnished and not filed in accordance with SEC rules. There have been no material changes in the Company's affairs which have occurred since the end of the latest fiscal year for which audited consolidated financial statements were included in the latest Form 10-K or which have not been described in a Form 10-Q or Form 8-K filed by the Company under the Exchange Act. If requested, the Company will furnish, without charge, a copy of any and all of the reports or documents that have been incorporated by reference into this prospectus. You may direct your requests to the Company at, One Cityplace, Hartford, CT 06103-3415. The telephone number is 1-800-842-9406. You may also access the incorporated reports and other documents at www.metlife.com You may also read and copy any materials that the Company files with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-202-551-8090. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at (http://www.sec.gov). OTHER INFORMATION - -------------------------------------------------------------------------------- THE INSURANCE COMPANY MetLife Insurance Company of Connecticut (the "Company") is a stock insurance company chartered in 1863 in Connecticut and continuously engaged in the insurance business since that time. It is licensed to conduct life insurance business in all states of the United States, the District of Columbia, Puerto Rico, Guam, the U.S. and British Virgin Islands and the Bahamas. The Company is a wholly owned subsidiary of MetLife, Inc., a publicly traded company. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. The Company's Home Office is located at One Cityplace, Hartford, Connecticut 06103-3415. Before December 7, 2007 a contract with terms identical to this Contract was issued by MetLife Life and Annuity Company of Connecticut ("MLAC"), a stock life insurance company chartered in 1973 in Connecticut. The Contract was funded through MetLife of CT Separate Account Six for Variable Annuities, a separate account registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended. On December 7, 2007, MLAC, a wholly -owned subsidiary of the Company and an indirect, wholly-owned subsidiary of MetLife, Inc., merged with and into the Company. Upon consummation of the merger, MLAC's corporate existence ceased by operation of law and the Company assumed legal ownership of all of the assets of MLAC, including MetLife of CT Separate Account Six for Variable Annuities and its assets. Pursuant to the merger, therefore, MetLife of CT Separate Account Six for Variable Annuities became a separate account of the Company. As a result of the merger, the Company also has become responsible for all of MLAC's liabilities and obligations, 55 including those created under the MLAC contract (as initially issued by MLAC (formerly known as The Travelers Life and Annuity Company) and outstanding on the date of the merger) and in connection with the market value adjustment feature of the MLAC contract. The MLAC contract has thereby become a variable contract funded by a separate account of the Company and each MLAC contract owner has thereby become a Contract Owner of the Company. FINANCIAL STATEMENTS The financial statements for the insurance company and for the Separate Accounts are located in the Statement of Additional Information. DISTRIBUTION OF THE CONTRACTS DISTRIBUTION AND PRINCIPAL UNDERWRITING AGREEMENT. MetLife Insurance Company of Connecticut (the "Company") has appointed MetLife Investors Distribution Company ("MLIDC") to serve as the principal underwriter and distributor of the securities offered through this prospectus, pursuant to the terms of a Distribution and Principal Underwriting Agreement. MLIDC, which is an affiliate of the Company, also acts as the principal underwriter and distributor of other variable annuity contracts and variable life insurance policies issued by the Company and its affiliated companies. The Company reimburses MLIDC for expenses MLIDC incurs in distributing the Contracts (e.g., commissions payable to retail broker-dealers who sell the Contracts). MLIDC does not retain any fees under the Contracts; however, MLIDC may receive 12b-1 fees from the Underlying Funds. MLIDC's principal executive offices are located at 5 Park Plaza, Suite 1900, Irvine, California, 92614. MLIDC is registered as a broker-dealer with the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934, as well as the securities commissions in the states in which it operates, and is a member of the Financial Industry Regulatory Authority ("FINRA"). An investor brochure that includes information describing FINRA's Public Disclosure Program is available by calling FINRA's Public Disclosure Program hotline at 1- 800-289-9999,or by visiting FINRA's website www.finra.org. MLIDC and the Company enter into selling agreements with affiliated and unaffiliated broker-dealers who are registered with the SEC and are members of the FINRA, and with entities that may offer the Contracts but are exempt from registration. Applications for the Contract are solicited by registered representatives who are associated persons of such affiliated or unaffiliated broker-dealer firms. Such representatives act as appointed agents of the Company under applicable state insurance law and must be licensed to sell variable insurance products. The Company intends to offer the Contract in all jurisdictions where it is licensed to do business and where the Contract is approved. The Company no longer offers the Contracts to new purchasers, but it continues to accept purchase payments from existing Contract Owners. COMPENSATION. Broker-dealers who have selling agreements with MLIDC and the Company are paid compensation for the promotion and sale of the Contracts. Registered representatives who solicit sales of the Contract typically receive a portion of the compensation payable to the broker-dealer firm. The amount the registered representative receives depends on the agreement between the firm and the registered representative. This agreement may also provide for the payment of other types of cash and non-cash compensation and other benefits. A broker- dealer firm or registered representative of a firm may receive different compensation for selling one product over another and/or may be inclined to favor one product provider over another product provider due to differing compensation rates. We generally pay compensation as a percentage of purchase payments invested in the Contract. Alternatively, we may pay lower compensation on purchase payments but pay periodic asset-based compensation based on all or a portion of the Contract Value. The amount and timing of compensation may vary depending on the selling agreement but is not expected to exceed 7.5% of Purchase Payments (if up-front compensation is paid to registered representatives) and up to 1.50% annually of average Contract Value (if asset-based compensation is paid to registered representatives). The Company and MLIDC have also entered into preferred distribution arrangements with certain broker-dealer firms. These arrangements are sometimes called "shelf space" arrangements. Under these arrangements, the Company and MLIDC pay separate, additional compensation to the broker-dealer firm for services the broker-dealer provides in connection with the distribution of the Company's products. These services may include providing the Company with access to the distribution network of the broker-dealer, the hiring and training of the broker-dealer's sales personnel, 56 the sponsoring of conferences and seminars by the broker-dealer, or general marketing services performed by the broker-dealer. The broker-dealer may also provide other services or incur other costs in connection with distributing the Company's products. These preferred distribution arrangements will not be offered to all broker- dealer firms and the terms of such arrangements may differ between broker-dealer firms. Compensation payable under such arrangements may be based on aggregate, net or anticipated sales of the Contracts, total assets attributable to sales of the Contract by registered representatives of the broker-dealer firm or based on the length of time that a Contract Owner has owned the Contract. Any such compensation payable to a broker-dealer firm will be made by MLIDC or the Company out of their own assets and will not result in any additional direct charge to you. Such compensation may cause the broker-dealer firm and its registered representatives to favor the Company's products. The Company and MLIDC have entered into preferred distribution arrangements with their affiliate Tower Square Securities, Inc. and with the unaffiliated broker-dealer firms identified in the Statement of Additional Information. The Company and MLIDC may enter into similar arrangements with their other affiliates, MetLife Securities, Inc., Walnut Street Securities, Inc. and New England Securities Corporation. (See the Statement of Additional Information -- "Distribution and Principal Underwriting Agreement" for a list of the broker-dealer firms that received compensation during 2007, as well as the range of additional compensation paid.) The Company and MLIDC have entered into selling agreements with certain broker- dealer firms that have an affiliate that acts as investment adviser or subadviser to one or more Underlying Funds which are offered under the Contracts. These investment advisory firms include Fidelity Management & Research Company, Morgan Stanley Investment Advisers, Inc., Merrill Lynch Investment Managers, L.P., MetLife Advisers, LLC, MetLife Investment Advisors Company, LLC and Met Investors Advisory LLC. MetLife Advisers, LLC, MetLife Investment Advisors Company, LLC and Met Investors Advisory LLC are affiliates of the Company. Registered representatives of broker-dealer firms with an affiliated company acting as an adviser or a subadviser may favor these Funds when offering the Contracts. SALE OF THE CONTRACTS BY AFFILIATES OF THE COMPANY. The Company and MLIDC may offer the Contracts through retail broker-dealer firms that are affiliates of the Company, including Tower Square Securities, Inc., MetLife Securities, Inc., Walnut Street Securities, Inc. and New England Securities Corporation. The compensation paid to affiliated broker-dealer firms for sales of the Contract is generally not expected to exceed, on a present value basis, the percentages described above. These broker-dealer firms pay their registered representatives all or a portion of the commissions received for their sales of Contracts; some firms may retain a portion of commissions. The amount the broker-dealer firms pass on to their registered representatives is determined in accordance with their internal compensation programs. These programs may also include other types of cash compensation, such as bonuses, equity awards (such as stock options), training allowances, supplementary salary, financial arrangements, marketing support, medical and other insurance benefits, retirement benefits, non-qualified deferred compensation plans, and other benefits. For registered representatives of certain affiliates, the amount of this additional cash compensation is based primarily on the amount of proprietary products sold and serviced by the representative. Proprietary products are those issued by the Company or its affiliates. The managers who supervise these registered representatives may also be entitled to additional cash compensation based on the sale of proprietary products by their representatives. Because the additional cash compensation paid to these registered representatives and their managers is primarily based on sales of proprietary products, these registered representatives and their managers have an incentive to favor the sale of proprietary products over other products issued by non-affiliates. Metropolitan Life Insurance Company ("MetLife"), an affiliate of the Company, registered representatives, who are associated with MetLife Securities, Inc., receive cash payments for the products they sell and service based upon a 'gross dealer concession' model. The cash payment is equal to a percentage of the gross dealer concession. For MetLife registered representatives other than those in our MetLife Resources (MLR) Division, the percentage is determined by a formula that takes into consideration the amount of premiums and purchase payments applied to proprietary products that the registered representative sells and services. The percentage could be as high as 100%. (MLR registered representatives receive compensation based upon premiums and purchase payments applied to all products sold and serviced by the representative.) In addition, all MetLife registered representatives are entitled to the additional compensation described above based on sales of proprietary products. Because sales of proprietary products are a factor determining the percentage of gross dealer concessions and/or the amount of additional compensation to which MetLife registered representatives are entitled, they have an incentive to favor the sale of proprietary products. In addition, because their sales managers' compensation is based on the sales made by the representatives they supervise, these sales managers also have an incentive to favor the sale of proprietary products. 57 The Company's affiliates also offer their registered representatives and their managers non-cash compensation incentives, such as conferences, trips, prizes and awards. Other non-cash compensation payments may be made for other services that are not directly related to the sales of products. These payments may include support services in the form of recruitment and training of personnel, production of promotional materials and similar services. We pay American Funds Distributors, Inc., principal underwriter for the American Funds Insurance Series(R), a percentage of all Purchase Payments allocated to the American Funds Global Growth Fund, the American Funds Growth Fund, and the American Funds Growth-Income Fund for services it provides in marketing the Underlying Funds' shares in connection with the Contract. From time to time, MetLife Associates LLC or Metropolitan Life Insurance Company pays organizations, associations and nonprofit organizations compensation to endorse or sponsor the Company's variable annuity contracts or for access to the organization's members. This compensation may include: the payment of fees, funding their programs, scholarships, events or awards, such as a principal of the year award; leasing their office space or paying fees for display space at their events; purchasing advertisements in their publications; or reimbursing or defraying their expenses. We also retain finders and consultants to introduce MetLife Associates LLC or Metropolitan Life Insurance Company to potential clients and for establishing and maintaining relationships between MetLife Associates LLC or Metropolitan Life Insurance Company and various organizations. We or our affiliates may pay duly licensed individuals associated with these organizations cash compensation for sales of the Contracts. CONFORMITY WITH STATE AND FEDERAL LAWS The laws of the state in which we deliver a Contract govern that Contract. Where a state has not approved a Contract feature or funding option, it will not be available in that state. Any paid-up annuity, Cash Surrender Value or death benefits that are available under the Contract are not less than the minimum benefits required by the statutes of the state in which we delivered the Contract. We reserve the right to make any changes, including retroactive changes, in the Contract to the extent that the change is required to meet the requirements of any law or regulation issued by any governmental agency to which the Company, the Contract or the Contract Owner is subject. VOTING RIGHTS The Company is the legal owner of the shares of the Underlying Funds. However, we believe that when an Underlying Fund solicits proxies in conjunction with a vote of shareholders we are required to obtain from you and from other owners' instructions on how to vote those shares. We will vote all shares, including those we may own on our own behalf, and those where we have not received instructions from Contract Owners, in the same proportion as shares for which we received voting instructions. The effect of this proportional voting is that a small number of Contract Owners may control the outcome of a vote. Should we determine that we are no longer required to comply with the above, we will vote on the shares in our own right. In certain limited circumstances, and when permitted by law, we may disregard voting instructions. If we do disregard voting instructions, a summary of that action and the reasons for such action would be included in the next annual report to Contract Owners. In accordance with our view of present applicable law, we will vote shares of the Underlying Funds at regular and special meetings of the shareholders of the funds in accordance with instructions received from persons having a voting interest in the corresponding subaccounts. We will vote shares for which we have not received instructions in the same proportion as we vote shares for which we have received instructions. However, if the 1940 Act or any regulation thereunder should be amended, or if the present interpretation thereof should change, and as a result we determine that we are permitted to vote shares of the Underlying Funds in our own right, we may elect to do so. The number of shares which a person has a right to vote will be determined as of the date concurrent with the date established by the respective mutual fund for determining shareholders eligible to vote at the meeting of the fund, and voting instructions will be solicited by written communication before the meeting in accordance with the procedures established by the mutual fund. Each person having a voting interest will receive periodic reports relating to the fund(s) in which he or she has an interest, proxy material and a form with which to give such instructions with respect to the proportion of the fund shares held in the subaccounts corresponding to his or her interest. 58 CONTRACT MODIFICATION We reserve the right to modify the Contract to keep it qualified under all related law and regulations that are in effect during the term of this Contract. We will obtain the approval of any regulatory authority needed for the modifications. POSTPONEMENT OF PAYMENT (THE "EMERGENCY PROCEDURE") Payment of any benefit or determination of values may be postponed whenever: (1) the New York Stock Exchange is closed; (2) when trading on the New York Stock Exchange is restricted; (3) when an emergency exists as determined by the Commission so that disposal of the securities held in the Funding Options is not reasonably practicable or it is not reasonably practicable to determine the value of the Funding Option's net assets; or (4) during any other period when the SEC, by order, so permits for the protection of Contract Owners. This Emergency Procedure will supercede any provision of the Contract that specifies a Valuation Date. At any time, payments from the Fixed Account may also be delayed. RESTRICTIONS ON FINANCIAL TRANSACTIONS Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to block a Contract Owner's ability to make certain transactions and thereby refuse to accept any request for transfers, withdrawals, surrenders, or death benefits, until the instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your Contract to government regulators. LEGAL PROCEEDINGS In the ordinary course of business, the Company, similar to other life insurance companies, is involved in lawsuits (including class action lawsuits), arbitrations and other legal proceedings. Also, from time to time, state and federal regulators or other officials conduct formal and informal examinations or undertake other actions dealing with various aspects of the financial services and insurance industries. In some legal proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. It is not possible to predict with certainty the ultimate outcome of any pending legal proceeding or regulatory action. However, the Company does not believe any such action or proceeding will have a material adverse effect upon the Separate Account or upon the ability of MLIDC to perform its contract with the Separate Account or of the Company to meet its obligations under the Contracts. 59 THIS PAGE INTENTIONALLY LEFT BLANK. nk_ref'[QC]>APPENDIX A - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT FIVE FOR VARIABLE ANNUITIES ACCUMULATION UNIT VALUES (IN DOLLARS) The following Accumulation Unit Value ("AUV") information should be read in conjunction with the Separate Account's audited financial statement and notes, which are included in the Statement of Additional Information ("SAI"). The first table provides the AUV information for the MINIMUM Separate Account Charge available under the contract. The second table provides the AUV information for the MAXIMUM Separate Account Charge available under the contract. The Separate Account Charges that fall in between this range are included in the SAI, which is free of charge. You may request a copy of the SAI by calling the toll-free number found on the first page of this prospectus or by mailing in the coupon attached in Appendix D. Please refer to the Fee Table section of this prospectus for more information on Separate Account Charges. MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Core Equity Subaccount (Series I) (1/70).. 2007 1.086 1.166 -- 2006 1.000 1.086 -- AIM V.I. Premier Equity Subaccount (Series I) (5/01)............................................. 2006 0.839 0.883 -- 2005 0.800 0.839 -- 2004 0.763 0.800 -- 2003 0.615 0.763 -- 2002 0.888 0.615 -- 2001 1.000 0.888 -- American Funds Insurance Series((R)) American Funds Global Growth Subaccount (Class 2) (5/04)............................................. 2007 1.499 1.708 13,097 2006 1.255 1.499 3,790 2005 1.109 1.255 4,216 2004 1.000 1.109 -- American Funds Growth Subaccount (Class 2) (5/04).. 2007 1.375 1.532 144,821 2006 1.258 1.375 102,812 2005 1.091 1.258 115,038 2004 1.000 1.091 14,605 American Funds Growth-Income Subaccount (Class 2) (5/04)............................................. 2007 1.299 1.353 110,372 2006 1.136 1.299 111,459 2005 1.082 1.136 77,329 2004 1.000 1.082 18,354
A-1 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Capital Appreciation Fund Capital Appreciation Fund (5/00)................... 2006 0.700 0.694 -- 2005 0.597 0.700 571,867 2004 0.503 0.597 286,860 2003 0.406 0.503 148,185 2002 0.547 0.406 213,843 2001 0.745 0.547 6,402 2000 1.000 0.745 -- Credit Suisse Trust Credit Suisse Trust Emerging Markets Subaccount (10/99)............................................ 2007 2.357 2.475 -- 2006 1.793 2.357 16,897 2005 1.412 1.793 16,897 2004 1.140 1.412 11,251 2003 0.804 1.140 11,251 2002 0.916 0.804 11,251 2001 1.022 0.916 -- 2000 1.506 1.022 -- 1999 1.000 1.506 -- Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (9/00)............................................. 2006 2.517 3.312 -- 2005 2.368 2.517 74,750 2004 1.816 2.368 85,371 2003 1.366 1.816 31,398 2002 1.318 1.366 19,794 2001 1.221 1.318 -- 2000 1.000 1.221 -- Delaware VIP Small Cap Value Subaccount (Standard Class) (10/99)..................................... 2007 2.565 2.376 116,515 2006 2.225 2.565 92,019 2005 2.050 2.225 83,441 2004 1.701 2.050 22,455 2003 1.208 1.701 22,455 2002 1.289 1.208 10,600 2001 1.162 1.289 -- 2000 0.991 1.162 -- 1999 1.000 0.991 --
A-2 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (7/99)..................................... 2007 1.187 1.261 139,246 2006 1.027 1.187 139,246 2005 0.992 1.027 181,885 2004 0.952 0.992 123,030 2003 0.792 0.952 42,639 2002 0.958 0.792 54,702 2001 1.065 0.958 27,197 2000 1.081 1.065 24,552 1999 1.000 1.081 24,552 Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (10/99).................................... 2007 1.624 1.433 63,601 2006 1.577 1.624 180,088 2005 1.503 1.577 167,125 2004 1.360 1.503 102,644 2003 1.041 1.360 57,302 2002 1.298 1.041 58,130 2001 1.394 1.298 13,264 2000 1.240 1.394 3,246 1999 1.000 1.240 -- Fidelity(R) Variable Insurance Products VIP Asset Manager Subaccount (Service Class 2) (5/00)............................................. 2006 1.019 1.057 -- 2005 0.990 1.019 -- 2004 0.949 0.990 23,009 2003 0.813 0.949 23,009 2002 0.900 0.813 51,769 2001 0.949 0.900 -- 2000 1.000 0.949 -- VIP Contrafund(R) Subaccount (Service Class 2) (5/01)............................................. 2007 1.583 1.842 229,876 2006 1.432 1.583 161,039 2005 1.238 1.432 138,871 2004 1.083 1.238 124,888 2003 0.852 1.083 75,992 2002 0.950 0.852 14,509 2001 1.000 0.950 --
A-3 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (5/01)........................... 2007 1.306 1.383 -- 2006 1.157 1.306 -- 2005 0.966 1.157 9,176 2004 0.962 0.966 12,814 2003 0.776 0.962 12,814 2002 0.846 0.776 12,814 2001 1.000 0.846 2,853 VIP Mid Cap Subaccount (Service Class 2) (5/01).... 2007 2.040 2.334 264,147 2006 1.830 2.040 256,022 2005 1.563 1.830 246,839 2004 1.264 1.563 92,254 2003 0.921 1.264 47,487 2002 1.032 0.921 9,533 2001 1.000 1.032 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (5/03).......................................... 2006 1.475 1.732 -- 2005 1.345 1.475 -- 2004 1.204 1.345 6,200 2003 1.000 1.204 6,200 FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (5/04)........................ 2007 1.982 2.532 111,837 2006 1.560 1.982 79,346 2005 1.234 1.560 66,766 2004 1.000 1.234 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.523 1.744 127,058 2006 1.264 1.523 114,148 2005 1.156 1.264 100,149 2004 1.000 1.156 19,656 FTVIPT Templeton Growth Securities Subaccount (Class 2) (5/04)................................... 2006 1.216 1.470 -- 2005 1.126 1.216 247,616 2004 1.000 1.126 38,090
A-4 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- High Yield Bond Trust High Yield Bond Trust (9/99)....................... 2006 1.538 1.576 -- 2005 1.530 1.538 117,330 2004 1.418 1.530 100,536 2003 1.107 1.418 27,244 2002 1.067 1.107 -- 2001 0.982 1.067 -- 2000 0.980 0.982 -- 1999 1.000 0.980 -- Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (5/01)............................................. 2006 1.154 1.195 -- 2005 1.080 1.154 25,695 2004 1.005 1.080 25,695 2003 0.891 1.005 25,695 2002 0.962 0.891 -- 2001 1.000 0.962 -- Janus Aspen Mid Cap Growth Subaccount (Service Shares) (5/01)..................................... 2007 1.099 1.327 85,976 2006 0.978 1.099 85,976 2005 0.880 0.978 85,976 2004 0.736 0.880 64,111 2003 0.551 0.736 5,302 2002 0.772 0.551 33,784 2001 1.000 0.772 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (5/00)..................................... 2007 0.707 0.767 4,277 2006 0.604 0.707 -- 2005 0.577 0.604 5,661 2004 0.556 0.577 5,661 2003 0.453 0.556 5,661 2002 0.615 0.453 5,661 2001 0.801 0.615 5,661 2000 1.000 0.801 -- Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/04)...... 2006 1.162 1.314 -- 2005 1.127 1.162 7,320 2004 1.000 1.127 --
A-5 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Investment Series LMPIS Premier Selections All Cap Growth Subaccount (5/01)............................................. 2007 0.996 1.063 -- 2006 0.935 0.996 -- 2005 0.887 0.935 -- 2004 0.869 0.887 -- 2003 0.652 0.869 -- 2002 0.898 0.652 -- 2001 1.000 0.898 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.103 1.111 140,815 2006 1.022 1.103 308,734 2005 0.923 1.022 319,390 2004 0.846 0.923 328,219 2003 0.634 0.846 251,625 2002 0.949 0.634 15,408 2001 1.000 0.949 2,646 LMPVET Appreciation Subaccount (Class I) (5/01).... 2007 1.213 1.305 8,196 2006 1.065 1.213 33,806 2005 1.029 1.065 53,220 2004 0.954 1.029 53,728 2003 0.772 0.954 45,111 2002 0.943 0.772 20,346 2001 1.000 0.943 3,353 LMPVET Capital and Income Subaccount (Class I) (4/07)............................................. 2007 1.422 1.436 -- LMPVET Dividend Strategy Subaccount (5/01)......... 2007 0.959 1.012 6,455 2006 0.819 0.959 6,455 2005 0.828 0.819 6,455 2004 0.807 0.828 6,455 2003 0.659 0.807 6,455 2002 0.897 0.659 -- 2001 1.000 0.897 -- LMPVET Equity Index Subaccount (Class II) (7/99)... 2007 1.117 1.162 326,459 2006 0.978 1.117 447,334 2005 0.945 0.978 432,014 2004 0.864 0.945 140,723 2003 0.682 0.864 126,629 2002 0.886 0.682 47,426 2001 1.019 0.886 23,609 2000 1.133 1.019 14,389 1999 1.000 1.133 13,350
A-6 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.283 1.289 25,489 2006 1.107 1.283 37,151 2005 1.065 1.107 85,744 2004 0.992 1.065 157,189 2003 0.722 0.992 157,189 2002 0.924 0.722 30,684 2001 1.000 0.924 -- LMPVET International All Cap Opportunity Subaccount (12/99)............................................ 2007 1.221 1.288 -- 2006 0.978 1.221 -- 2005 0.883 0.978 17,480 2004 0.755 0.883 39,904 2003 0.597 0.755 3,291 2002 0.810 0.597 3,291 2001 1.186 0.810 3,291 2000 1.569 1.186 3,291 1999 1.000 1.569 -- LMPVET Investors Subaccount (Class I) (10/99)...... 2007 1.609 1.659 -- 2006 1.372 1.609 6,680 2005 1.298 1.372 6,680 2004 1.185 1.298 6,680 2003 0.903 1.185 -- 2002 1.183 0.903 6,424 2001 1.244 1.183 -- 2000 1.088 1.244 -- 1999 1.000 1.088 13,535 LMPVET Large Cap Growth Subaccount (Class I) (10/99)............................................ 2007 1.068 1.116 33,827 2006 1.030 1.068 33,827 2005 0.987 1.030 53,253 2004 0.991 0.987 40,912 2003 0.677 0.991 5,766 2002 0.907 0.677 -- 2001 1.045 0.907 -- 2000 1.132 1.045 -- 1999 1.000 1.132 -- LMPVET Small Cap Growth Subaccount (Class I) (5/01)............................................. 2007 1.239 1.352 29,215 2006 1.107 1.239 15,664 2005 1.064 1.107 5,985 2004 0.932 1.064 -- 2003 0.631 0.932 -- 2002 0.974 0.631 -- 2001 1.000 0.974 --
A-7 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Social Awareness Subaccount (7/99).......... 2007 1.023 1.125 4,305 2006 0.957 1.023 4,305 2005 0.925 0.957 18,473 2004 0.877 0.925 18,473 2003 0.686 0.877 18,473 2002 0.921 0.686 14,167 2001 1.100 0.921 14,167 2000 1.115 1.100 14,167 1999 1.000 1.115 14,167 Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (9/03).... 2007 1.054 1.059 -- 2006 1.020 1.054 -- 2005 1.005 1.020 -- 2004 1.001 1.005 1,000 2003 1.000 1.001 1,000 LMPVIT High Income Subaccount (8/99)............... 2007 1.307 1.301 41,449 2006 1.187 1.307 41,449 2005 1.166 1.187 61,681 2004 1.065 1.166 63,799 2003 0.842 1.065 22,349 2002 0.877 0.842 20,231 2001 0.918 0.877 20,231 2000 1.007 0.918 20,231 1999 1.000 1.007 20,231 Legg Mason Partners Variable Portfolios V LMPVPV Small Cap Growth Opportunities Subaccount (Class I) (5/01)................................... 2007 1.318 1.410 -- 2006 1.176 1.318 14,993 2005 1.130 1.176 13,085 2004 0.986 1.130 29,945 2003 0.700 0.986 -- 2002 0.949 0.700 -- 2001 1.000 0.949 --
A-8 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (4/00)......... 2007 1.931 2.031 -- 2006 1.648 1.931 5,450 2005 1.596 1.648 5,450 2004 1.486 1.596 5,450 2003 1.077 1.486 3,532 2002 1.449 1.077 -- 2001 1.433 1.449 -- 2000 1.000 1.433 -- LMPVPI Total Return Subaccount (Class I) (9/00).... 2007 1.384 1.428 -- 2006 1.239 1.384 -- 2005 1.209 1.239 -- 2004 1.121 1.209 -- 2003 0.975 1.121 -- 2002 1.055 0.975 -- 2001 1.072 1.055 -- 2000 1.000 1.072 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (5/04)............................................. 2007 1.323 1.379 -- 2006 1.138 1.323 46,483 2005 1.111 1.138 28,886 2004 1.000 1.111 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (5/04)............................................. 2007 1.392 1.539 -- 2006 1.251 1.392 10,015 2005 1.165 1.251 -- 2004 1.000 1.165 -- Managed Assets Trust Managed Assets Trust (6/99)........................ 2006 1.243 1.286 -- 2005 1.206 1.243 107,946 2004 1.111 1.206 41,606 2003 0.918 1.111 25,510 2002 1.013 0.918 25,510 2001 1.076 1.013 25,510 2000 1.102 1.076 20,767 1999 1.000 1.102 13,609 Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.899 1.999 11,907 2006 1.000 1.899 20,578 MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.752 1.715 128,461
A-9 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.130 1.188 -- 2006 1.000 1.130 -- MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.178 1.193 -- MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.072 1.053 -- 2006 1.000 1.072 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.346 1.324 48,416 2006 1.000 1.346 1,727 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 0.716 0.926 246,585 2006 1.000 0.716 565,464 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.224 1.090 -- MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.366 1.441 61,586 2006 1.000 1.366 77,621 MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.166 1.235 24,464 2006 1.000 1.166 -- MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.083 1.118 51,258 2006 1.000 1.083 5,088 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (4/07) *........................................... 2007 1.523 1.390 9,385 MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.015 1.126 6,755 2006 1.000 1.015 6,755 MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.030 1.138 48,872 2006 1.000 1.030 -- MIST MFS(R) Emerging Markets Equity Subaccount (Class A) (4/07)................................... 2007 2.460 3.116 16,897 MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.574 1.662 -- MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.432 1.529 249,161 2006 1.000 1.432 229,224 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.227 1.037 204,556 2006 1.000 1.227 227,280 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.038 1.105 --
A-10 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.024 1.066 33,342 2006 1.000 1.024 34,912 MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.118 1.238 -- 2006 1.000 1.118 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.534 1.623 179,378 2006 1.000 1.534 187,233 MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.343 1.292 96,445 2006 1.000 1.343 31,734 MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (9/99)................................... 2007 1.425 1.477 -- 2006 1.377 1.425 1,575,036 2005 1.360 1.377 1,482,566 2004 1.310 1.360 764,591 2003 1.251 1.310 481,357 2002 1.157 1.251 470,261 2001 1.092 1.157 -- 2000 0.979 1.092 12,041 1999 1.000 0.979 37,502 MetLife Investment International Stock Subaccount (Class I) (7/99)................................... 2007 1.462 1.576 -- 2006 1.165 1.462 496,825 2005 1.024 1.165 484,883 2004 0.899 1.024 349,627 2003 0.697 0.899 291,178 2002 0.904 0.697 223,222 2001 1.160 0.904 -- 2000 1.272 1.160 1,916 1999 1.000 1.272 6,933 MetLife Investment Large Company Stock Subaccount (Class I) (9/99)................................... 2007 0.881 0.924 -- 2006 0.789 0.881 1,054,352 2005 0.746 0.789 977,381 2004 0.683 0.746 656,590 2003 0.537 0.683 525,471 2002 0.702 0.537 430,013 2001 0.840 0.702 -- 2000 0.995 0.840 10,384 1999 1.000 0.995 21,459
A-11 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MetLife Investment Small Company Stock Subaccount (Class I) (9/99)................................... 2007 2.369 2.376 -- 2006 2.101 2.369 175,234 2005 1.974 2.101 154,209 2004 1.732 1.974 107,116 2003 1.220 1.732 83,489 2002 1.612 1.220 66,192 2001 1.600 1.612 -- 2000 1.465 1.600 1,472 1999 1.000 1.465 6,201 Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.095 1.308 44,628 2006 1.000 1.095 44,628 MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.349 1.423 44,795 2006 1.000 1.349 19,379 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.196 1.247 296,906 2006 1.000 1.196 323,370 MSF Capital Guardian U.S. Equity Subaccount (Class A) (4/07) *........................................ 2007 1.154 1.098 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 0.968 0.998 124,183 2006 1.000 0.968 124,183 MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.396 1.442 379,334 2006 1.000 1.396 474,781 MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.476 1.497 950,902 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.081 1.108 46,699 2006 1.000 1.081 -- 2005 1.000 1.000 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.047 1.097 87,866 2006 1.000 1.047 -- 2005 1.000 1.000 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.053 1.095 851,151 2006 1.000 1.053 10,264 2005 1.000 1.000 --
A-12 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.058 1.095 354,469 2006 1.000 1.058 -- 2005 1.000 1.000 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.112 1.145 90,045 2006 1.000 1.112 -- 2005 1.000 1.000 -- MSF MetLife Stock Index Subaccount (Class A) (11/07) *.......................................... 2007 0.942 0.935 599,917 MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.558 1.610 769,017 2006 1.000 1.558 923,199 MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.591 1.554 309,217 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70) *........................................... 2007 1.056 1.113 328,787 2006 1.000 1.056 333,798 MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 2.428 2.360 126,061 MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.684 1.752 -- 2006 1.000 1.684 122,596 MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.453 1.506 237,753 2006 1.000 1.453 255,141 Money Market Portfolio Money Market Subaccount (9/99)..................... 2006 1.151 1.164 -- 2005 1.127 1.151 775,320 2004 1.125 1.127 236,987 2003 1.125 1.125 289,912 2002 1.119 1.125 264,365 2001 1.087 1.119 77,342 2000 1.032 1.087 76,073 1999 1.000 1.032 36,453 Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (5/04)..................................... 2006 1.131 1.198 -- 2005 1.078 1.131 -- 2004 1.000 1.078 --
A-13 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (10/05)..................................... 2007 1.011 1.034 -- 2006 1.012 1.011 -- 2005 1.008 1.012 -- PIMCO VIT Total Return Subaccount (Administrative Class) (5/01)...................................... 2007 1.298 1.401 99,605 2006 1.260 1.298 116,821 2005 1.240 1.260 123,296 2004 1.192 1.240 152,147 2003 1.144 1.192 6,319 2002 1.057 1.144 7,538 2001 1.000 1.057 -- Putnam Variable Trust Putnam VT Discovery Growth Subaccount (Class IB) (5/01)............................................. 2007 0.925 1.012 -- 2006 0.839 0.925 -- 2005 0.789 0.839 -- 2004 0.739 0.789 -- 2003 0.564 0.739 -- 2002 0.808 0.564 -- 2001 1.000 0.808 -- Putnam VT International Equity Subaccount (Class IB) (5/01)......................................... 2007 1.457 1.582 -- 2006 1.150 1.457 -- 2005 1.033 1.150 -- 2004 0.897 1.033 6,667 2003 0.703 0.897 6,667 2002 0.861 0.703 -- 2001 1.000 0.861 -- Putnam VT Small Cap Value Subaccount (Class IB) (5/01)............................................. 2007 2.035 2.179 -- 2006 1.749 2.035 44,194 2005 1.647 1.749 77,457 2004 1.315 1.647 63,465 2003 0.886 1.315 43,406 2002 1.093 0.886 40,852 2001 1.000 1.093 --
A-14 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (5/01)............................................. 2006 0.957 1.022 -- 2005 0.887 0.957 6,755 2004 0.840 0.887 6,755 2003 0.654 0.840 -- 2002 0.867 0.654 -- 2001 1.000 0.867 -- Travelers Convertible Securities Subaccount (5/04)............................................. 2006 1.035 1.106 -- 2005 1.040 1.035 -- 2004 1.000 1.040 -- Travelers Disciplined Mid Cap Stock Subaccount (8/99)............................................. 2006 1.812 1.984 -- 2005 1.625 1.812 44,834 2004 1.406 1.625 46,180 2003 1.060 1.406 38,942 2002 1.247 1.060 22,864 2001 1.310 1.247 4,950 2000 1.132 1.310 4,950 1999 1.000 1.132 4,950 Travelers Equity Income Subaccount (7/99).......... 2006 1.285 1.354 -- 2005 1.240 1.285 484,509 2004 1.137 1.240 294,106 2003 0.874 1.137 192,847 2002 1.024 0.874 151,978 2001 1.105 1.024 109,815 2000 1.021 1.105 12,381 1999 1.000 1.021 12,381 Travelers Federated Stock Subaccount (11/01)....... 2006 1.163 1.208 -- 2005 1.113 1.163 4,216 2004 1.015 1.113 4,216 2003 0.802 1.015 4,216 2002 1.002 0.802 4,216 2001 1.000 1.002 -- Travelers Large Cap Subaccount (7/99).............. 2006 0.919 0.949 -- 2005 0.852 0.919 99,935 2004 0.807 0.852 111,168 2003 0.652 0.807 96,847 2002 0.851 0.652 96,847 2001 1.038 0.851 96,847 2000 1.224 1.038 52,127 1999 1.000 1.224 12,719
A-15 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Mercury Large Cap Core Subaccount (6/00)............................................. 2006 0.997 1.061 -- 2005 0.897 0.997 -- 2004 0.780 0.897 -- 2003 0.649 0.780 -- 2002 0.874 0.649 -- 2001 1.136 0.874 -- 2000 1.000 1.136 -- Travelers MFS(R) Mid Cap Growth Subaccount (10/99)............................................ 2006 1.052 1.116 -- 2005 1.029 1.052 57,026 2004 0.909 1.029 59,981 2003 0.668 0.909 47,678 2002 1.317 0.668 45,675 2001 1.739 1.317 33,694 2000 1.603 1.739 30,494 1999 1.000 1.603 -- Travelers MFS(R) Total Return Subaccount (7/99).... 2006 1.400 1.449 -- 2005 1.371 1.400 659,159 2004 1.240 1.371 337,809 2003 1.073 1.240 153,776 2002 1.141 1.073 135,391 2001 1.150 1.141 53,295 2000 0.994 1.150 -- 1999 1.000 0.994 -- Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.190 1.289 -- 2005 1.127 1.190 142,445 2004 1.000 1.127 21,046 Travelers Mondrian International Stock Subaccount (8/99)............................................. 2006 1.055 1.215 -- 2005 0.971 1.055 6,318 2004 0.846 0.971 6,318 2003 0.663 0.846 6,318 2002 0.768 0.663 6,318 2001 1.049 0.768 4,591 2000 1.194 1.049 4,591 1999 1.000 1.194 4,591
A-16 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Fund Subaccount (8/99)........... 2006 0.890 0.947 -- 2005 0.847 0.890 36,743 2004 0.768 0.847 18,862 2003 0.625 0.768 31,058 2002 0.903 0.625 24,128 2001 1.183 0.903 -- 2000 0.959 1.183 -- 1999 1.000 0.959 -- Travelers Pioneer Mid Cap Value Subaccount (1/70).. 2006 1.001 1.057 -- 2005 1.000 1.001 -- Travelers Pioneer Strategic Income Subaccount (1/01)............................................. 2006 1.455 1.473 -- 2005 1.415 1.455 143,490 2004 1.285 1.415 32,760 2003 1.084 1.285 32,760 2002 1.032 1.084 27,083 2001 1.000 1.032 -- Travelers Quality Bond Subaccount (8/99)........... 2006 1.300 1.292 -- 2005 1.290 1.300 39,391 2004 1.259 1.290 40,044 2003 1.186 1.259 36,759 2002 1.130 1.186 19,941 2001 1.063 1.130 19,941 2000 1.002 1.063 19,941 1999 1.000 1.002 19,941 Travelers Strategic Equity Subaccount (7/99)....... 2006 0.871 0.911 -- 2005 0.861 0.871 70,166 2004 0.787 0.861 81,278 2003 0.598 0.787 67,954 2002 0.908 0.598 67,954 2001 1.057 0.908 67,954 2000 1.303 1.057 56,806 1999 1.000 1.303 17,222 Travelers Style Focus Series: Small Cap Growth Subaccount (1/70).................................. 2006 1.000 1.032 -- 2005 1.000 1.000 -- Travelers Style Focus Series: Small Cap Value Subaccount (1/70).................................. 2006 1.000 1.000 -- 2005 1.000 1.000 --
A-17 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers U.S. Government Securities Subaccount (8/99)............................................. 2006 1.445 1.396 -- 2005 1.396 1.445 480,652 2004 1.326 1.396 357,708 2003 1.301 1.326 328,667 2002 1.154 1.301 366,169 2001 1.099 1.154 20,423 2000 0.968 1.099 20,423 1999 1.000 0.968 20,423 Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (5/03)............................................. 2007 1.741 1.687 22,171 2006 1.512 1.741 14,254 2005 1.464 1.512 14,254 2004 1.257 1.464 -- 2003 1.000 1.257 -- Van Kampen LIT Enterprise Subaccount (Class II) (5/01)............................................. 2007 0.926 1.034 -- 2006 0.875 0.926 -- 2005 0.817 0.875 -- 2004 0.794 0.817 -- 2003 0.637 0.794 -- 2002 0.911 0.637 -- 2001 1.000 0.911 -- Van Kampen LIT Strategic Growth Subaccount (Class II) (5/01)......................................... 2007 0.792 0.917 7,996 2006 0.778 0.792 -- 2005 0.729 0.778 -- 2004 0.688 0.729 -- 2003 0.546 0.688 -- 2002 0.817 0.546 -- 2001 1.000 0.817 -- Wells Fargo Variable Trust Wells Fargo VT Advantage Small/Mid Cap Value Subaccount (3/00).................................. 2007 1.559 1.535 -- 2006 1.358 1.559 -- 2005 1.175 1.358 8,864 2004 1.014 1.175 8,864 2003 0.739 1.014 8,864 2002 0.969 0.739 8,864 2001 0.938 0.969 -- 2000 1.000 0.938 --
A-18 MRA -- SEPARATE ACCOUNT CHARGES 1.25% 140 FL
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Equity Index Subaccount (Class II) (7/99)... 2007 0.967 0.988 -- 2006 0.862 0.967 -- 2005 0.850 0.862 -- 2004 0.791 0.850 -- 2003 0.636 0.791 -- 2002 0.841 0.636 -- 2001 0.986 0.841 -- 2000 1.117 0.986 -- 1999 1.000 1.117 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix B for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 02/25/05, The Travelers Series Trust-MFS(R) Emerging Growth Portfolio merged into Travelers Series Trust-MFS(R) Mid Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, AIM Variable Insurance Funds-AIM V.I. Premier Equity Fund merged into AIM Variable Insurance Funds-AIM V.I. Core Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Capital Appreciation Fund merged into Met Investors Series Trust-Janus Capital Appreciation Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, Managed Assets Trust merged into Metropolitan Series Fund, Inc.-Legg Mason Partners Managed Assets Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-Black Rock Money Market Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, High Yield Bond Trust merged into Metropolitan Series Fund, Inc.-Western Asset Management High Yield Bond Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Disciplined Mid-Cap Stock Portfolio merged into Met Investors Series Trust-Batterymarch Mid-Cap Stock Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Style Focus Series: Small Cap Value Portfolio merged into Met Investors Series Trust-Dreman Small- Cap Value Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Mondrian International Stock Portfolio merged into Met Investors Series Trust-Harris Oakmark International Stock Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Convertible Securities Portfolio merged into Met Investors Series Trust-Lord Abbett Bond Debenture Portfolio-Class A and is no longer available as a funding option. A-19 Effective on or about 05/01/06, The Travelers Series Trust-Federated Stock Portfolio merged into Met Investors Series Trust-Lord Abbett Growth and Income Portfolio-Class B and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Mercury Large Cap Core Portfolio merged into Met Investors Series Trust-Mercury Large-Cap Core Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Met AIM Capital Appreciation Portfolio merged into Met Investors Series Trust -- Met/AIM Capital Appreciation Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Value Portfolio merged into Met Investors Series Trust -- MFS(R) Value Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Fund Portfolio merged into Met Investors Series Trust-Pioneer Fund Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Strategic Income Portfolio-Class A merged into Met Investors Series Trust-Pioneer Strategic Income Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Mid Cap Growth Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Aggressive Growth Portfolio-Class D and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Travelers Quality Bond Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Bond Income Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Large Cap Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Strategic Equity Portfolio Trust merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Equity Income Portfolio merged into Metropolitan Series Fund, Inc.-FI Value Leaders Portfolio- Class D and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Total Return merged into Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio-Class F and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-U.S. Government Securities Portfolio merged into Metropolitan Series Fund, Inc.-Western Asset Management U.S. Government Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, Oppenheimer Variable Account Funds-Oppenheimer Main Street Fund/VA-Service Shares was replaced Met Investors Series Trust-Lord Abbett Growth and Income Portfolio-Class B and is no longer available as a funding option. Effective on or about 05/01/06, Franklin Templeton Variable Insurance Products Trust-Mutual Shares Securities Fund-Class 2 Shares was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Delaware VIP Trust-Mutual VIP REIT Series- Standard Class was replaced by Met Investors Series Trust-Neuberger Berman Real Estate Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Fidelity Variable Insurance Products-Fidelity Asset Manager Portfolio-Service Class 2 was replaced by Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio-Class F and is no longer available as a funding option. Effective on or about 05/01/06, Janus Aspen Series-Janus Aspen Balanced Portfolio-Service Shares was replaced by Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio-Class F and is no longer available as a funding option. A-20 Effective on or about 05/01/06, Franklin Templeton Variable Insurance Products Trust-Franklin Templeton Growth Securities Fund-Class 2 Shares was replaced by Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio-Class B and is no longer available as a funding option. Effective on or about 05/01/06, Fidelity Variable Insurance Products Fund-VIP Asset Manager Portfolio was replaced by Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio-Class F and is no longer available as a funding option. Effective on or about 11/13/06, Lazard Retirement Series, Inc.-Lazard Small Cap Portfolio was replaced by Met Investors Series Trust-Third Avenue Small Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, AIM Variable Insurance Funds-AIM V.I. Core Equity Fund was replaced by Metropolitan Series Fund, Inc.-Capital Guardian U.S. Equity Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Credit Suisse Trust-Credit Suisse Trust Emerging Markets Portfolio was replaced by Met Investors Series Trust-MFS(R) Emerging Markets Equity Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Investment Series-Legg Mason Partners Variable Premier Selections All Cap Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios V-Legg Mason Partners Variable Small Cap Growth Opportunities Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Small Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Total Return Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Capital and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Growth and Income Portfolio was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Mid- Cap Value Portfolio was replaced by Met Investors Series Trust-Lord Abbett Mid- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class A was exchanged for Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Lazard Mid-Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Metropolitan Series Funds, Inc.-Western Asset Management High Yield Bond Portfolio merged into Met Investors Series Trust- BlackRock High Yield Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, PIMCO Variable Insurance Trust-Real Return Portfolio was replaced by Met Investors Series Trust-PIMCO Inflation Protected Bond Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT International Equity Fund was replaced by Met Investors Series Trust-MFS(R) Research International Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT Small Cap Value Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Diversified Bond Portfolio was replaced by Metropolitan Series Fund, Inc.-Lehman Brothers(R) Aggregate Bond Index Portfolio -- Class A and is no longer available as a funding option. A-21 Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment International Stock Portfolio was replaced by Metropolitan Series Fund, Inc.-Morgan Stanley EAFE(R) Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Large Company Stock Fund was replaced by Metropolitan Series Fund, Inc.-MetLife Stock Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Small Company Stock Fund was replaced by Metropolitan Series Fund, Inc.-Russell 2000(R) Index Portfolio -- Class A and is no longer available as a funding option. A-22 APPENDIX A-1 - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION FOR METLIFE OF CT SEPARATE ACCOUNT SIX FOR VARIABLE ANNUITIES ACCUMULATION UNIT VALUES (IN DOLLARS) The following Accumulation Unit Value ("AUV") information should be read in conjunction with the Separate Account's audited financial statement and notes, which are included in the Statement of Additional Information ("SAI"). The first table provides the AUV information for the minimum Separate Account Charge available under the contract. The second table provides the AUV information for the maximum Separate Account Charge available under the contract. The Separate Account Charges that fall in between this range are included in the SAI, which is free of charge. You may request a copy of the SAI by calling the toll-free number found on the first page of this prospectus or by mailing in the coupon attached in Appendix D. Please refer to the Fee Table section of this prospectus for more information on Separate Account Charges. MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- AIM Variable Insurance Funds AIM V.I. Core Equity Subaccount (Series I) (1/70).. 2007 1.086 1.166 -- 2006 1.000 1.086 -- AIM V.I. Premier Equity Subaccount (Series I) (7/01)............................................. 2006 0.839 0.883 -- 2005 0.800 0.839 -- 2004 0.763 0.800 103,702 2003 0.615 0.763 103,682 2002 0.888 0.615 55,895 2001 1.000 0.888 -- American Funds Insurance Series(R) American Funds Global Growth Subaccount (Class 2) (5/04)............................................. 2007 1.499 1.708 185,034 2006 1.255 1.499 197,638 2005 1.109 1.255 119,722 2004 1.010 1.109 31,153 American Funds Growth Subaccount (Class 2) (5/04).. 2007 1.375 1.532 256,902 2006 1.258 1.375 198,092 2005 1.091 1.258 157,801 2004 0.970 1.091 16,521 American Funds Growth-Income Subaccount (Class 2) (5/04)............................................. 2007 1.299 1.353 570,340 2006 1.136 1.299 560,986 2005 1.082 1.136 385,501 2004 0.979 1.082 104,915
A-23 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Capital Appreciation Fund Capital Appreciation Fund (5/00)................... 2006 0.700 0.694 -- 2005 0.597 0.700 1,713,108 2004 0.503 0.597 1,555,826 2003 0.406 0.503 1,630,081 2002 0.547 0.406 1,837,286 2001 0.745 0.547 1,046,590 2000 1.000 0.745 1,006,482 Credit Suisse Trust Credit Suisse Trust Emerging Markets Subaccount (5/99)............................................. 2007 2.357 2.475 -- 2006 1.793 2.357 26,390 2005 1.412 1.793 35,759 2004 1.140 1.412 44,528 2003 0.804 1.140 46,418 2002 0.916 0.804 45,812 2001 1.022 0.916 54,766 2000 1.506 1.022 71,391 1999 1.000 1.506 54,662 Delaware VIP Trust Delaware VIP REIT Subaccount (Standard Class) (7/99)............................................. 2006 2.517 3.312 -- 2005 2.368 2.517 312,481 2004 1.816 2.368 330,738 2003 1.366 1.816 282,138 2002 1.318 1.366 242,450 2001 1.221 1.318 128,487 2000 0.937 1.221 102,023 1999 1.000 0.937 -- Delaware VIP Small Cap Value Subaccount (Standard Class) (4/99)...................................... 2007 2.565 2.376 145,585 2006 2.225 2.565 234,566 2005 2.050 2.225 232,445 2004 1.701 2.050 203,692 2003 1.208 1.701 177,208 2002 1.289 1.208 139,177 2001 1.162 1.289 13,468 2000 0.991 1.162 5,110 1999 1.000 0.991 --
A-24 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Dreyfus Variable Investment Fund Dreyfus VIF Appreciation Subaccount (Initial Shares) (3/99)..................................... 2007 1.187 1.261 260,953 2006 1.027 1.187 274,576 2005 0.992 1.027 318,098 2004 0.952 0.992 330,399 2003 0.792 0.952 331,736 2002 0.958 0.792 356,023 2001 1.065 0.958 396,091 2000 1.081 1.065 311,873 1999 1.000 1.081 244,529 Dreyfus VIF Developing Leaders Subaccount (Initial Shares) (4/99)..................................... 2007 1.624 1.433 330,624 2006 1.577 1.624 410,979 2005 1.503 1.577 463,289 2004 1.360 1.503 619,182 2003 1.041 1.360 589,418 2002 1.298 1.041 540,784 2001 1.394 1.298 388,047 2000 1.240 1.394 305,761 1999 1.000 1.240 45,091 Fidelity(R) Variable Insurance Products VIP Asset Manager Subaccount (Service Class 2) (6/00)............................................. 2006 1.019 1.057 -- 2005 0.990 1.019 229,844 2004 0.949 0.990 291,168 2003 0.813 0.949 262,244 2002 0.900 0.813 227,798 2001 0.949 0.900 178,530 2000 1.000 0.949 133,640 VIP Contrafund(R) Subaccount (Service Class 2) (9/01)............................................. 2007 1.583 1.842 409,081 2006 1.432 1.583 382,235 2005 1.238 1.432 307,737 2004 1.083 1.238 274,073 2003 0.852 1.083 244,184 2002 0.950 0.852 208,513 2001 1.000 0.950 --
A-25 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- VIP Dynamic Capital Appreciation Subaccount (Service Class 2) (5/01)........................... 2007 1.306 1.383 14,225 2006 1.157 1.306 14,225 2005 0.966 1.157 16,820 2004 0.962 0.966 16,820 2003 0.776 0.962 5,993 2002 0.846 0.776 5,993 2001 1.000 0.846 -- VIP Mid Cap Subaccount (Service Class 2) (7/01).... 2007 2.040 2.334 322,258 2006 1.830 2.040 383,405 2005 1.563 1.830 373,612 2004 1.264 1.563 181,421 2003 0.921 1.264 103,818 2002 1.032 0.921 100,887 2001 1.000 1.032 -- Franklin Templeton Variable Insurance Products Trust FTVIPT Mutual Shares Securities Subaccount (Class 2) (8/03).......................................... 2006 1.475 1.732 -- 2005 1.345 1.475 61,250 2004 1.204 1.345 23,498 2003 1.000 1.204 17,090 FTVIPT Templeton Developing Markets Securities Subaccount (Class 2) (6/04)........................ 2007 1.982 2.532 117,893 2006 1.560 1.982 108,900 2005 1.234 1.560 102,975 2004 0.972 1.234 -- FTVIPT Templeton Foreign Securities Subaccount (Class 2) (5/04)................................... 2007 1.523 1.744 180,735 2006 1.264 1.523 240,063 2005 1.156 1.264 193,399 2004 0.962 1.156 40,991 FTVIPT Templeton Growth Securities Subaccount (Class 2) (6/04)................................... 2006 1.216 1.470 -- 2005 1.126 1.216 196,213 2004 1.021 1.126 57,703
A-26 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- High Yield Bond Trust High Yield Bond Trust (5/99)....................... 2006 1.538 1.576 -- 2005 1.530 1.538 359,521 2004 1.418 1.530 368,425 2003 1.107 1.418 381,556 2002 1.067 1.107 411,756 2001 0.982 1.067 314,101 2000 0.980 0.982 101,750 1999 1.000 0.980 92,789 Janus Aspen Series Janus Aspen Balanced Subaccount (Service Shares) (5/01)............................................. 2006 1.154 1.195 -- 2005 1.080 1.154 157,215 2004 1.005 1.080 157,215 2003 0.891 1.005 123,022 2002 0.962 0.891 83,565 2001 1.000 0.962 -- Janus Aspen Mid Cap Growth Subaccount (Service Shares) (8/01)..................................... 2007 1.099 1.327 46,855 2006 0.978 1.099 23,960 2005 0.880 0.978 23,960 2004 0.736 0.880 -- 2003 0.551 0.736 -- 2002 0.772 0.551 -- 2001 1.000 0.772 -- Janus Aspen Worldwide Growth Subaccount (Service Shares) (5/00)..................................... 2007 0.707 0.767 133,097 2006 0.604 0.707 159,300 2005 0.577 0.604 254,343 2004 0.556 0.577 303,997 2003 0.453 0.556 319,311 2002 0.615 0.453 382,579 2001 0.801 0.615 441,531 2000 1.000 0.801 424,750 Lazard Retirement Series, Inc. Lazard Retirement Small Cap Subaccount (5/04)...... 2006 1.162 1.314 -- 2005 1.127 1.162 3,023 2004 1.009 1.127 --
A-27 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Investment Series LMPIS Premier Selections All Cap Growth Subaccount (6/01)............................................. 2007 0.996 1.063 -- 2006 0.935 0.996 1,526 2005 0.887 0.935 2,816 2004 0.869 0.887 2,816 2003 0.652 0.869 -- 2002 0.898 0.652 -- 2001 1.000 0.898 -- Legg Mason Partners Variable Equity Trust LMPVET Aggressive Growth Subaccount (Class I) (5/01)............................................. 2007 1.103 1.111 553,084 2006 1.022 1.103 731,816 2005 0.923 1.022 833,193 2004 0.846 0.923 947,296 2003 0.634 0.846 829,147 2002 0.949 0.634 372,023 2001 1.000 0.949 148,073 LMPVET Appreciation Subaccount (Class I) (8/01).... 2007 1.213 1.305 133,159 2006 1.065 1.213 217,023 2005 1.029 1.065 264,932 2004 0.954 1.029 162,864 2003 0.772 0.954 100,091 2002 0.943 0.772 82,395 2001 1.000 0.943 14,712 LMPVET Capital and Income Subaccount (Class I) (4/07)............................................. 2007 1.422 1.436 9,259 LMPVET Dividend Strategy Subaccount (5/01)......... 2007 0.959 1.012 111 2006 0.819 0.959 21,723 2005 0.828 0.819 23,093 2004 0.807 0.828 23,093 2003 0.659 0.807 20,096 2002 0.897 0.659 20,096 2001 1.000 0.897 20,096 LMPVET Equity Index Subaccount (Class II) (3/99)... 2007 1.117 1.162 1,267,211 2006 0.978 1.117 1,635,266 2005 0.945 0.978 1,770,764 2004 0.864 0.945 1,899,361 2003 0.682 0.864 1,719,505 2002 0.886 0.682 1,579,821 2001 1.019 0.886 1,055,882 2000 1.133 1.019 842,129 1999 1.000 1.133 207,054
A-28 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Fundamental Value Subaccount (Class I) (5/01)............................................. 2007 1.283 1.289 484,877 2006 1.107 1.283 526,606 2005 1.065 1.107 584,303 2004 0.992 1.065 630,507 2003 0.722 0.992 637,061 2002 0.924 0.722 486,577 2001 1.000 0.924 106,535 LMPVET International All Cap Opportunity Subaccount (3/99)............................................. 2007 1.221 1.288 103,913 2006 0.978 1.221 113,853 2005 0.883 0.978 131,177 2004 0.755 0.883 176,162 2003 0.597 0.755 182,229 2002 0.810 0.597 184,371 2001 1.186 0.810 202,204 2000 1.569 1.186 76,324 1999 1.000 1.569 33,821 LMPVET Investors Subaccount (Class I) (3/99)....... 2007 1.609 1.659 69,933 2006 1.372 1.609 116,024 2005 1.298 1.372 128,604 2004 1.185 1.298 149,763 2003 0.903 1.185 151,723 2002 1.183 0.903 140,603 2001 1.244 1.183 102,276 2000 1.088 1.244 20,655 1999 1.000 1.088 5,119 LMPVET Large Cap Growth Subaccount (Class I) (3/99)............................................. 2007 1.068 1.116 219,605 2006 1.030 1.068 256,366 2005 0.987 1.030 269,310 2004 0.991 0.987 338,275 2003 0.677 0.991 414,434 2002 0.907 0.677 335,753 2001 1.045 0.907 323,325 2000 1.132 1.045 265,016 1999 1.000 1.132 100,647 LMPVET Small Cap Growth Subaccount (Class I) (6/01)............................................. 2007 1.239 1.352 5,317 2006 1.107 1.239 5,596 2005 1.064 1.107 5,596 2004 0.932 1.064 -- 2003 0.631 0.932 -- 2002 0.974 0.631 -- 2001 1.000 0.974 997
A-29 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- LMPVET Social Awareness Subaccount (3/99).......... 2007 1.023 1.125 115,598 2006 0.957 1.023 159,985 2005 0.925 0.957 142,054 2004 0.877 0.925 210,284 2003 0.686 0.877 190,338 2002 0.921 0.686 205,434 2001 1.100 0.921 252,885 2000 1.115 1.100 338,770 1999 1.000 1.115 204,232 Legg Mason Partners Variable Income Trust LMPVIT Adjustable Rate Income Subaccount (10/03)... 2007 1.054 1.059 58,097 2006 1.020 1.054 76,332 2005 1.005 1.020 65,137 2004 1.001 1.005 56,767 2003 1.000 1.001 12,265 LMPVIT High Income Subaccount (5/99)............... 2007 1.307 1.301 38,360 2006 1.187 1.307 45,580 2005 1.166 1.187 46,658 2004 1.065 1.166 12,147 2003 0.842 1.065 20,424 2002 0.877 0.842 17,421 2001 0.918 0.877 26,499 2000 1.007 0.918 12,407 1999 1.000 1.007 -- Legg Mason Partners Variable Portfolios V LMPVPV Small Cap Growth Opportunities Subaccount (Class I) (5/01)................................... 2007 1.318 1.410 -- 2006 1.176 1.318 23,728 2005 1.130 1.176 27,437 2004 0.986 1.130 2,533 2003 0.700 0.986 -- 2002 0.949 0.700 -- 2001 1.000 0.949 --
A-30 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Portfolios I, Inc. LMPVPI All Cap Subaccount (Class I) (3/99)......... 2007 1.931 2.031 -- 2006 1.648 1.931 199,969 2005 1.596 1.648 338,497 2004 1.486 1.596 344,257 2003 1.077 1.486 357,262 2002 1.449 1.077 340,827 2001 1.433 1.449 172,311 2000 1.222 1.433 70,934 1999 1.000 1.222 13,279 LMPVPI Total Return Subaccount (Class I) (3/99).... 2007 1.384 1.428 -- 2006 1.239 1.384 19,523 2005 1.209 1.239 23,410 2004 1.121 1.209 29,201 2003 0.975 1.121 13,990 2002 1.055 0.975 10,605 2001 1.072 1.055 7,423 2000 1.002 1.072 5,470 1999 1.000 1.002 -- Lord Abbett Series Fund, Inc. Lord Abbett Growth and Income Subaccount (Class VC) (5/04)............................................. 2007 1.323 1.379 -- 2006 1.138 1.323 92,757 2005 1.111 1.138 87,476 2004 0.968 1.111 -- Lord Abbett Mid-Cap Value Subaccount (Class VC) (7/04)............................................. 2007 1.392 1.539 -- 2006 1.251 1.392 77,035 2005 1.165 1.251 97,239 2004 1.007 1.165 34,410 Managed Assets Trust Managed Assets Trust (3/99)........................ 2006 1.243 1.286 -- 2005 1.206 1.243 979,865 2004 1.111 1.206 946,294 2003 0.918 1.111 968,180 2002 1.013 0.918 1,042,680 2001 1.076 1.013 1,174,637 2000 1.102 1.076 913,007 1999 1.000 1.102 232,345 Met Investors Series Trust MIST Batterymarch Mid-Cap Stock Subaccount (Class A) (1/70).......................................... 2007 1.899 1.999 196,657 2006 1.000 1.899 242,970
A-31 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST BlackRock High Yield Subaccount (Class A) (4/07) *........................................... 2007 1.752 1.715 236,241 MIST BlackRock Large-Cap Core Subaccount (Class A) (1/70)............................................. 2007 1.130 1.188 -- 2006 1.000 1.130 47,332 MIST BlackRock Large-Cap Core Subaccount (Class E) (4/07)............................................. 2007 1.178 1.193 52,037 MIST Dreman Small-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.072 1.053 3,496 2006 1.000 1.072 -- MIST Harris Oakmark International Subaccount (Class A) (1/70) *........................................ 2007 1.346 1.324 62,559 2006 1.000 1.346 67,105 MIST Janus Forty Subaccount (Class A) (1/70)....... 2007 0.716 0.926 1,417,693 2006 1.000 0.716 1,648,856 MIST Lazard Mid-Cap Subaccount (Class B) (4/07).... 2007 1.224 1.090 33,322 MIST Legg Mason Partners Managed Assets Subaccount (Class A) (1/70)................................... 2007 1.366 1.441 652,267 2006 1.000 1.366 892,153 MIST Lord Abbett Bond Debenture Subaccount (Class A) (1/70).......................................... 2007 1.166 1.235 18,489 2006 1.000 1.166 5,612 MIST Lord Abbett Growth and Income Subaccount (Class B) (1/70) *................................. 2007 1.083 1.118 253,105 2006 1.000 1.083 220,648 MIST Lord Abbett Mid-Cap Value Subaccount (Class B) (4/07) *........................................... 2007 1.523 1.390 54,963 MIST Met/AIM Capital Appreciation Subaccount (Class A) (1/70).......................................... 2007 1.015 1.126 43,129 2006 1.000 1.015 47,120 MIST Met/AIM Small Cap Growth Subaccount (Class A) (1/70)............................................. 2007 1.030 1.138 -- 2006 1.000 1.030 -- MIST MFS(R) Emerging Markets Equity Subaccount (Class A) (4/07)................................... 2007 2.460 3.116 24,639 MIST MFS(R) Research International Subaccount (Class B) (4/07) *................................. 2007 1.574 1.662 57,376 MIST MFS(R) Value Subaccount (Class A) (1/70)...... 2007 1.432 1.529 25,260 2006 1.000 1.432 27,241 MIST Neuberger Berman Real Estate Subaccount (Class A) (4/07).......................................... 2007 1.227 1.037 490,578 2006 1.000 1.227 824,805 MIST PIMCO Inflation Protected Bond Subaccount (Class A) (4/07) *................................. 2007 1.038 1.105 66,495
A-32 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MIST Pioneer Fund Subaccount (Class A) (1/70)...... 2007 1.024 1.066 40,580 2006 1.000 1.024 62,738 MIST Pioneer Mid-Cap Value Subaccount (Class A) (1/70)............................................. 2007 1.118 1.238 -- 2006 1.000 1.118 -- MIST Pioneer Strategic Income Subaccount (Class A) (1/70)............................................. 2007 1.534 1.623 156,928 2006 1.000 1.534 177,407 MIST Third Avenue Small Cap Value Subaccount (Class B) (1/70) *........................................ 2007 1.343 1.292 304,650 2006 1.000 1.343 11,926 MetLife Investment Funds, Inc. MetLife Investment Diversified Bond Subaccount (Class I) (3/99)................................... 2007 1.425 1.477 -- 2006 1.377 1.425 4,163,264 2005 1.360 1.377 4,657,584 2004 1.310 1.360 4,115,266 2003 1.251 1.310 3,142,575 2002 1.157 1.251 3,360,816 2001 1.092 1.157 2,080,975 2000 0.979 1.092 601,543 1999 1.000 0.979 139,623 MetLife Investment International Stock Subaccount (Class I) (3/99)................................... 2007 1.462 1.576 -- 2006 1.165 1.462 1,877,384 2005 1.024 1.165 2,279,498 2004 0.899 1.024 2,148,904 2003 0.697 0.899 2,010,293 2002 0.904 0.697 2,025,194 2001 1.160 0.904 1,238,125 2000 1.272 1.160 474,746 1999 1.000 1.272 90,221 MetLife Investment Large Company Stock Subaccount (Class I) (3/99)................................... 2007 0.881 0.924 -- 2006 0.789 0.881 4,176,636 2005 0.746 0.789 4,775,451 2004 0.683 0.746 4,498,084 2003 0.537 0.683 4,110,325 2002 0.702 0.537 3,575,681 2001 0.840 0.702 2,080,499 2000 0.995 0.840 959,029 1999 1.000 0.995 228,230
A-33 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MetLife Investment Small Company Stock Subaccount (Class I) (3/99)................................... 2007 2.369 2.376 -- 2006 2.101 2.369 824,371 2005 1.974 2.101 940,105 2004 1.732 1.974 879,208 2003 1.220 1.732 844,568 2002 1.612 1.220 739,822 2001 1.600 1.612 542,731 2000 1.465 1.600 462,418 1999 1.000 1.465 113,574 Metropolitan Series Fund, Inc. MSF BlackRock Aggressive Growth Subaccount (Class D) (1/70).......................................... 2007 1.095 1.308 146,010 2006 1.000 1.095 166,266 MSF BlackRock Bond Income Subaccount (Class A) (1/70)............................................. 2007 1.349 1.423 377,755 2006 1.000 1.349 424,506 MSF BlackRock Money Market Subaccount (Class A) (1/70)............................................. 2007 1.196 1.247 522,939 2006 1.000 1.196 541,103 MSF Capital Guardian U.S. Equity Subaccount (Class A) (4/07) *........................................ 2007 1.154 1.098 -- MSF FI Large Cap Subaccount (Class A) (1/70)....... 2007 0.968 0.998 620,214 2006 1.000 0.968 872,082 MSF FI Value Leaders Subaccount (Class D) (1/70)... 2007 1.396 1.442 751,945 2006 1.000 1.396 1,157,148 MSF Lehman Brothers Aggregate Bond Index Subaccount (Class A) (11/07) *................................ 2007 1.476 1.497 1,131,195 MSF MetLife Aggressive Allocation Subaccount (Class B) (1/70).......................................... 2007 1.081 1.108 23,011 2006 1.000 1.081 -- 2005 1.000 1.000 -- MSF MetLife Conservative Allocation Subaccount (Class B) (1/70)................................... 2007 1.047 1.097 387,217 2006 1.000 1.047 -- 2005 1.000 1.000 -- MSF MetLife Conservative to Moderate Allocation Subaccount (Class B) (1/70)........................ 2007 1.053 1.095 2,035,491 2006 1.000 1.053 -- 2005 1.000 1.000 --
A-34 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- MSF MetLife Moderate Allocation Subaccount (Class B) (1/70).......................................... 2007 1.058 1.095 2,492,257 2006 1.000 1.058 -- 2005 1.000 1.000 -- MSF MetLife Moderate to Aggressive Allocation Subaccount (Class B) (1/70)........................ 2007 1.112 1.145 1,900,889 2006 1.000 1.112 -- 2005 1.000 1.000 -- MSF MetLife Stock Index Subaccount (Class A) (11/07) *.......................................... 2007 0.942 0.935 1,246,801 MSF MFS(R) Total Return Subaccount (Class F) (1/70)............................................. 2007 1.558 1.610 1,068,361 2006 1.000 1.558 1,461,415 MSF Morgan Stanley EAFE(R) Index Subaccount (Class A) (11/07) *....................................... 2007 1.591 1.554 711,073 MSF Oppenheimer Global Equity Subaccount (Class B) (1/70) *........................................... 2007 1.056 1.113 246,896 2006 1.000 1.056 269,938 MSF Russell 2000(R) Index Subaccount (Class A) (11/07) *.......................................... 2007 2.428 2.360 356,978 MSF Western Asset Management High Yield Bond Subaccount (Class A) (1/70)........................ 2007 1.684 1.752 -- 2006 1.000 1.684 270,148 MSF Western Asset Management U.S. Government Subaccount (Class A) (1/70) *...................... 2007 1.453 1.506 413,047 2006 1.000 1.453 574,277 Money Market Portfolio Money Market Subaccount (4/99)..................... 2006 1.151 1.164 -- 2005 1.127 1.151 847,943 2004 1.125 1.127 1,106,052 2003 1.125 1.125 1,753,058 2002 1.119 1.125 1,258,377 2001 1.087 1.119 990,283 2000 1.032 1.087 700,403 1999 1.000 1.032 239,890 Oppenheimer Variable Account Funds Oppenheimer Main Street/VA Subaccount ( Service Shares) (5/04)..................................... 2006 1.131 1.198 -- 2005 1.078 1.131 14,297 2004 0.975 1.078 10,342
A-35 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- PIMCO Variable Insurance Trust PIMCO VIT Real Return Subaccount (Administrative Class) (7/05)...................................... 2007 1.011 1.034 -- 2006 1.012 1.011 72,677 2005 1.000 1.012 42,479 PIMCO VIT Total Return Subaccount (Administrative Class) (6/01)...................................... 2007 1.298 1.401 357,703 2006 1.260 1.298 539,536 2005 1.240 1.260 569,639 2004 1.192 1.240 378,880 2003 1.144 1.192 385,107 2002 1.057 1.144 388,046 2001 1.000 1.057 42,621 Putnam Variable Trust Putnam VT Discovery Growth Subaccount (Class IB) (12/01)............................................ 2007 0.925 1.012 11,671 2006 0.839 0.925 11,671 2005 0.789 0.839 11,671 2004 0.739 0.789 11,671 2003 0.564 0.739 11,671 2002 0.808 0.564 11,671 2001 1.000 0.808 -- Putnam VT International Equity Subaccount (Class IB) (5/01)......................................... 2007 1.457 1.582 -- 2006 1.150 1.457 65,112 2005 1.033 1.150 81,614 2004 0.897 1.033 85,063 2003 0.703 0.897 88,330 2002 0.861 0.703 89,130 2001 1.000 0.861 36,530 Putnam VT Small Cap Value Subaccount (Class IB) (6/01)............................................. 2007 2.035 2.179 -- 2006 1.749 2.035 278,813 2005 1.647 1.749 319,412 2004 1.315 1.647 205,632 2003 0.886 1.315 173,137 2002 1.093 0.886 235,414 2001 1.000 1.093 1,734 The Travelers Series Trust Travelers AIM Capital Appreciation Subaccount (11/01)............................................ 2006 0.957 1.022 -- 2005 0.887 0.957 51,831 2004 0.840 0.887 72,426 2003 0.654 0.840 35,106 2002 0.867 0.654 38,688 2001 1.000 0.867 --
A-36 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Convertible Securities Subaccount (5/04)............................................. 2006 1.035 1.106 -- 2005 1.040 1.035 5,612 2004 0.990 1.040 -- Travelers Disciplined Mid Cap Stock Subaccount (6/99)............................................. 2006 1.812 1.984 -- 2005 1.625 1.812 288,657 2004 1.406 1.625 300,148 2003 1.060 1.406 298,395 2002 1.247 1.060 244,570 2001 1.310 1.247 156,409 2000 1.132 1.310 87,378 1999 1.000 1.132 -- Travelers Equity Income Subaccount (3/99).......... 2006 1.285 1.354 -- 2005 1.240 1.285 1,344,215 2004 1.137 1.240 1,226,765 2003 0.874 1.137 1,133,992 2002 1.024 0.874 1,011,873 2001 1.105 1.024 343,935 2000 1.021 1.105 212,588 1999 1.000 1.021 216,322 Travelers Federated Stock Subaccount (4/99)........ 2006 1.163 1.208 -- 2005 1.113 1.163 59,781 2004 1.015 1.113 60,043 2003 0.802 1.015 60,043 2002 1.002 0.802 52,941 2001 0.993 1.002 24,072 2000 0.965 0.993 4,126 1999 1.000 0.965 -- Travelers Large Cap Subaccount (3/99).............. 2006 0.919 0.949 -- 2005 0.852 0.919 512,059 2004 0.807 0.852 512,693 2003 0.652 0.807 524,562 2002 0.851 0.652 448,487 2001 1.038 0.851 409,069 2000 1.224 1.038 334,348 1999 1.000 1.224 247,021
A-37 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Mercury Large Cap Core Subaccount (3/99)............................................. 2006 0.997 1.061 -- 2005 0.897 0.997 49,017 2004 0.780 0.897 15,265 2003 0.649 0.780 15,265 2002 0.874 0.649 16,447 2001 1.136 0.874 17,029 2000 1.213 1.136 80,150 1999 1.000 1.213 -- Travelers MFS(R) Mid Cap Growth Subaccount (5/99).. 2006 1.052 1.116 -- 2005 1.029 1.052 189,859 2004 0.909 1.029 247,955 2003 0.668 0.909 256,356 2002 1.317 0.668 249,539 2001 1.739 1.317 238,188 2000 1.603 1.739 201,277 1999 1.000 1.603 22,378 Travelers MFS(R) Total Return Subaccount (4/99).... 2006 1.400 1.449 -- 2005 1.371 1.400 1,402,006 2004 1.240 1.371 1,303,774 2003 1.073 1.240 1,112,494 2002 1.141 1.073 994,730 2001 1.150 1.141 458,197 2000 0.994 1.150 177,102 1999 1.000 0.994 56,338 Travelers MFS(R) Value Subaccount (5/04)........... 2006 1.190 1.289 -- 2005 1.127 1.190 25,099 2004 0.969 1.127 -- Travelers Mondrian International Stock Subaccount (4/99)............................................. 2006 1.055 1.215 -- 2005 0.971 1.055 80,241 2004 0.846 0.971 81,385 2003 0.663 0.846 57,438 2002 0.768 0.663 39,307 2001 1.049 0.768 43,074 2000 1.194 1.049 43,159 1999 1.000 1.194 13,922
A-38 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers Pioneer Fund Subaccount (5/99)........... 2006 0.890 0.947 -- 2005 0.847 0.890 62,738 2004 0.768 0.847 128,011 2003 0.625 0.768 139,015 2002 0.903 0.625 177,705 2001 1.183 0.903 175,971 2000 0.959 1.183 136,065 1999 1.000 0.959 52,624 Travelers Pioneer Mid Cap Value Subaccount (7/05).. 2006 1.001 1.057 -- 2005 1.000 1.001 -- Travelers Pioneer Strategic Income Subaccount (6/99)............................................. 2006 1.455 1.473 -- 2005 1.415 1.455 99,903 2004 1.285 1.415 48,519 2003 1.084 1.285 37,669 2002 1.032 1.084 29,999 2001 0.998 1.032 17,469 2000 1.010 0.998 -- 1999 1.000 1.010 -- Travelers Quality Bond Subaccount (3/99)........... 2006 1.300 1.292 -- 2005 1.290 1.300 453,665 2004 1.259 1.290 428,682 2003 1.186 1.259 336,903 2002 1.130 1.186 324,873 2001 1.063 1.130 229,303 2000 1.002 1.063 89,190 1999 1.000 1.002 30,445 Travelers Strategic Equity Subaccount (3/99)....... 2006 0.871 0.911 -- 2005 0.861 0.871 578,902 2004 0.787 0.861 781,329 2003 0.598 0.787 861,404 2002 0.908 0.598 907,697 2001 1.057 0.908 1,013,052 2000 1.303 1.057 787,876 1999 1.000 1.303 274,568 Travelers Style Focus Series: Small Cap Growth Subaccount (1/70).................................. 2006 1.000 1.032 -- 2005 1.000 1.000 -- Travelers Style Focus Series: Small Cap Value Subaccount (1/70).................................. 2006 1.000 1.000 -- 2005 1.000 1.000 --
A-39 MRA -- SEPARATE ACCOUNT CHARGES 0.80% 3% AIR (CONTINUED)
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Travelers U.S. Government Securities Subaccount (3/99)............................................. 2006 1.445 1.396 -- 2005 1.396 1.445 664,291 2004 1.326 1.396 612,998 2003 1.301 1.326 641,656 2002 1.154 1.301 674,168 2001 1.099 1.154 329,688 2000 0.968 1.099 147,364 1999 1.000 0.968 81,239 Van Kampen Life Investment Trust Van Kampen LIT Comstock Subaccount (Class II) (8/03)............................................. 2007 1.741 1.687 23,456 2006 1.512 1.741 18,593 2005 1.464 1.512 32,763 2004 1.257 1.464 35,463 2003 1.000 1.257 15,449 Van Kampen LIT Enterprise Subaccount (Class II) (10/01)............................................ 2007 0.926 1.034 -- 2006 0.875 0.926 -- 2005 0.817 0.875 -- 2004 0.794 0.817 -- 2003 0.637 0.794 -- 2002 0.911 0.637 -- 2001 1.000 0.911 -- Van Kampen LIT Strategic Growth Subaccount (Class II) (1/02)......................................... 2007 0.792 0.917 -- 2006 0.778 0.792 -- 2005 0.729 0.778 -- 2004 0.688 0.729 -- 2003 0.546 0.688 -- 2002 0.817 0.546 -- 2001 1.000 0.817 -- Wells Fargo Variable Trust Wells Fargo VT Advantage Small/Mid Cap Value Subaccount (7/99).................................. 2007 1.559 1.535 6,351 2006 1.358 1.559 6,351 2005 1.175 1.358 6,351 2004 1.014 1.175 6,351 2003 0.739 1.014 9,511 2002 0.969 0.739 9,511 2001 0.938 0.969 6,351 2000 0.877 0.938 6,351 1999 1.000 0.877 6,351
A-40 MRA -- SEPARATE ACCOUNT CHARGES 1.25% 140 FL
UNIT VALUE AT NUMBER OF UNITS BEGINNING OF UNIT VALUE AT OUTSTANDING AT PORTFOLIO NAME YEAR YEAR END OF YEAR END OF YEAR - -------------- ---- ------------- ------------- --------------- Legg Mason Partners Variable Equity Trust LMPVET Equity Index Subaccount (Class II) (3/99)... 2007 0.967 0.988 -- 2006 0.862 0.967 -- 2005 0.850 0.862 -- 2004 0.791 0.850 -- 2003 0.636 0.791 -- 2002 0.841 0.636 -- 2001 0.986 0.841 -- 2000 1.117 0.986 -- 1999 1.000 1.117 --
* We are currently waiving a portion of the Mortality and Expense Risk charge for this Subaccount. Please see "Fee Table -- Annual Separate Account Charges" for more information. The date next to each funding option name reflects the date money first came into the funding option through the Separate Account. Funding options not listed above had no amounts allocated to them or were not available as of December 31, 2007. Number of Units Outstanding at the end of the year may include units for Contracts in payout phase. Variable Funding Option mergers and substitutions that occurred between January 1, 2005 and December 31, 2007 are displayed below. Please see Appendix B for more information on Variable Funding Option mergers, substitutions and other changes. Effective on or about 02/25/05, The Travelers Series Trust-MFS(R) Emerging Growth Portfolio merged into Travelers Series Trust-MFS(R) Mid Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, AIM Variable Insurance Funds-AIM V.I. Premier Equity Fund merged into AIM Variable Insurance Funds-AIM V.I. Core Equity Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Capital Appreciation Fund merged into Met Investors Series Trust-Janus Capital Appreciation Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, Managed Assets Trust merged into Metropolitan Series Fund, Inc.-Legg Mason Partners Managed Assets Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, Money Market Portfolio merged into Metropolitan Series Fund, Inc.-Black Rock Money Market Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, High Yield Bond Trust merged into Metropolitan Series Fund, Inc.-Western Asset Management High Yield Bond Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Disciplined Mid-Cap Stock Portfolio merged into Met Investors Series Trust-Batterymarch Mid-Cap Stock Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Style Focus Series: Small Cap Value Portfolio merged into Met Investors Series Trust-Dreman Small- Cap Value Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Mondrian International Stock Portfolio merged into Met Investors Series Trust-Harris Oakmark International Stock Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Convertible Securities Portfolio merged into Met Investors Series Trust-Lord Abbett Bond Debenture Portfolio-Class A and is no longer available as a funding option. A-41 Effective on or about 05/01/06, The Travelers Series Trust-Federated Stock Portfolio merged into Met Investors Series Trust-Lord Abbett Growth and Income Portfolio-Class B and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Mercury Large Cap Core Portfolio merged into Met Investors Series Trust-Mercury Large-Cap Core Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Met AIM Capital Appreciation Portfolio merged into Met Investors Series Trust -- Met/AIM Capital Appreciation Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Value Portfolio merged into Met Investors Series Trust -- MFS(R) Value Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Fund Portfolio merged into Met Investors Series Trust-Pioneer Fund Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Pioneer Strategic Income Portfolio-Class A merged into Met Investors Series Trust-Pioneer Strategic Income Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Mid Cap Growth Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Aggressive Growth Portfolio-Class D and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Travelers Quality Bond Portfolio merged into Metropolitan Series Fund, Inc.-BlackRock Bond Income Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Large Cap Portfolio merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Strategic Equity Portfolio Trust merged into Metropolitan Series Fund, Inc.-FI Large Cap Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-Equity Income Portfolio merged into Metropolitan Series Fund, Inc.-FI Value Leaders Portfolio- Class D and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-MFS(R) Total Return merged into Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio-Class F and is no longer available as a funding option. Effective on or about 05/01/06, The Travelers Series Trust-U.S. Government Securities Portfolio merged into Metropolitan Series Fund, Inc.-Western Asset Management U.S. Government Portfolio-Class A and is no longer available as a funding option. Effective on or about 05/01/06, Oppenheimer Variable Account Funds-Oppenheimer Main Street Fund/VA-Service Shares was replaced Met Investors Series Trust-Lord Abbett Growth and Income Portfolio-Class B and is no longer available as a funding option. Effective on or about 05/01/06, Franklin Templeton Variable Insurance Products Trust-Mutual Shares Securities Fund-Class 2 Shares was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Delaware VIP Trust-Mutual VIP REIT Series- Standard Class was replaced by Met Investors Series Trust-Neuberger Berman Real Estate Portfolio and is no longer available as a funding option. Effective on or about 05/01/06, Fidelity Variable Insurance Products-Fidelity Asset Manager Portfolio-Service Class 2 was replaced by Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio-Class F and is no longer available as a funding option. Effective on or about 05/01/06, Janus Aspen Series-Janus Aspen Balanced Portfolio-Service Shares was replaced by Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio-Class F and is no longer available as a funding option. A-42 Effective on or about 05/01/06, Franklin Templeton Variable Insurance Products Trust-Franklin Templeton Growth Securities Fund-Class 2 Shares was replaced by Metropolitan Series Fund, Inc.-Oppenheimer Global Equity Portfolio-Class B and is no longer available as a funding option. Effective on or about 05/01/06, Fidelity Variable Insurance Products Fund-VIP Asset Manager Portfolio was replaced by Metropolitan Series Fund, Inc.-MFS(R) Total Return Portfolio-Class F and is no longer available as a funding option. Effective on or about 11/13/06, Lazard Retirement Series, Inc.-Lazard Small Cap Portfolio was replaced by Met Investors Series Trust-Third Avenue Small Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, AIM Variable Insurance Funds-AIM V.I. Core Equity Fund was replaced by Metropolitan Series Fund, Inc.-Capital Guardian U.S. Equity Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Credit Suisse Trust-Credit Suisse Trust Emerging Markets Portfolio was replaced by Met Investors Series Trust-MFS(R) Emerging Markets Equity Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Investment Series-Legg Mason Partners Variable Premier Selections All Cap Growth Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Aggressive Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable All Cap Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Fundamental Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios V-Legg Mason Partners Variable Small Cap Growth Opportunities Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Small Cap Growth Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Legg Mason Partners Variable Portfolios I, Inc.-Legg Mason Partners Variable Total Return Portfolio merged into Legg Mason Partners Variable Equity Trust-Legg Mason Partners Variable Capital and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Growth and Income Portfolio was replaced by Met Investors Series Trust-Lord Abbett Growth and Income Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Lord Abbett Series Fund, Inc.-Lord Abbett Mid- Cap Value Portfolio was replaced by Met Investors Series Trust-Lord Abbett Mid- Cap Value Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class A was exchanged for Met Investors Series Trust-BlackRock Large-Cap Core Portfolio -- Class E and is no longer available as a funding option. Effective on or about 04/30/2007, Met Investors Series Trust-Pioneer Mid-Cap Value Portfolio merged into Met Investors Series Trust-Lazard Mid-Cap Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Metropolitan Series Funds, Inc.-Western Asset Management High Yield Bond Portfolio merged into Met Investors Series Trust- BlackRock High Yield Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, PIMCO Variable Insurance Trust-Real Return Portfolio was replaced by Met Investors Series Trust-PIMCO Inflation Protected Bond Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT International Equity Fund was replaced by Met Investors Series Trust-MFS(R) Research International Portfolio and is no longer available as a funding option. Effective on or about 04/30/2007, Putnam Variable Trust-Putnam VT Small Cap Value Fund was replaced by Met Investors Series Trust-Third Avenue Small Cap Value Portfolio and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Diversified Bond Portfolio was replaced by Metropolitan Series Fund, Inc.-Lehman Brothers(R) Aggregate Bond Index Portfolio -- Class A and is no longer available as a funding option. A-43 Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment International Stock Portfolio was replaced by Metropolitan Series Fund, Inc.-Morgan Stanley EAFE(R) Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Large Company Stock Fund was replaced by Metropolitan Series Fund, Inc.-MetLife Stock Index Portfolio -- Class A and is no longer available as a funding option. Effective on or about 11/12/2007, MetLife Investment Funds, Inc.-MetLife Investment Small Company Stock Fund was replaced by Metropolitan Series Fund, Inc.-Russell 2000(R) Index Portfolio -- Class A and is no longer available as a funding option. A-44 APPENDIX B - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION REGARDING THE UNDERLYING FUNDS Some of the Underlying Funds listed below were subject to a merger, substitution or other change. The charts below identify the former name and new name of each of these Underlying Funds, and, where applicable, the former name and new name of the trust of which the Underlying Fund is part. UNDERLYING FUND NAME CHANGES
FORMER NAME NEW NAME - --------------------------------------------- --------------------------------------------- MET INVESTORS SERIES TRUST MET INVESTORS SERIES TRUST Neuberger Berman Real Estate Clarion Global Real Estate Portfolio -- Class A Portfolio -- Class A
UNDERLYING FUND MERGERS/REORGANIZATIONS The former Underlying Funds were merged with and into the new Underlying Funds.
FORMER UNDERLYING FUND NEW UNDERLYING FUND - --------------------------------------------- --------------------------------------------- MET INVESTORS SERIES TRUST METROPOLITAN SERIES FUND, INC. MFS(R) Value Portfolio -- Class A MFS(R) Value Portfolio -- Class A MET INVESTORS SERIES TRUST MET INVESTORS SERIES TRUST Batterymarch Mid-Cap Stock Lazard Mid Cap Portfolio -- Class A Portfolio -- Class A
UNDERLYING FUND SUBSTITUTIONS The following new Underlying Funds were replaced by the former Underlying Funds.
FORMER UNDERLYING FUND NEW UNDERLYING FUND - --------------------------------------------- --------------------------------------------- JANUS ASPEN SERIES METROPOLITAN SERIES FUND, INC. Worldwide Growth Portfolio -- Service Oppenheimer Global Equity Portfolio -- Class Shares B DREYFUS VARIABLE INVESTMENT FUND METROPOLITAN SERIES FUND, INC. Appreciation Portfolio -- Initial Shares Davis Venture Value Portfolio -- Class A Developing Leaders Portfolio -- Initial T. Rowe Price Small Cap Growth Shares Portfolio -- Class B VAN KAMPEN LIFE INVESTMENT TRUST METROPOLITAN SERIES FUND, INC. Van Kampen LIT Strategic Growth Jennison Growth Portfolio -- Class B Portfolio -- Class II PUTNAM VARIABLE TRUST MET INVESTORS SERIES TRUST Putnam VT Discovery Growth Fund -- Class IB Van Kampen Mid Cap Growth Portfolio -- Class B
UNDERLYING FUND SHARE CLASS EXCHANGE The following former Underlying Fund share class was exchanged into the new Underlying Fund share class.
FORMER UNDERLYING FUND SHARE CLASS NEW UNDERLYING FUND SHARE CLASS - --------------------------------------------- --------------------------------------------- MET INVESTORS SERIES TRUST MET INVESTORS SERIES TRUST Lazard Mid Cap Portfolio -- Class B Lazard Mid Cap Portfolio -- Class A
B-1 THIS PAGE INTENTIONALLY LEFT BLANK. nk_ref'[QC]>APPENDIX C - -------------------------------------------------------------------------------- PORTFOLIO LEGAL AND MARKETING NAMES
SERIES FUND/TRUST PORTFOLIO/SERIES MARKETING NAME - --------------------------------- --------------------------------- --------------------------------- American Funds Insurance Global Growth Fund American Funds Global Growth Fund Series(R) American Funds Insurance Growth-Income Fund American Funds Growth-Income Fund Series(R) American Funds Insurance Growth Fund American Funds Growth Fund Series(R) Janus Aspen Series Mid Cap Growth Portfolio Janus Aspen Series Mid Cap Growth Portfolio Metropolitan Series Fund, Inc. FI Large Cap Portfolio FI Large Cap Portfolio (Fidelity) Metropolitan Series Fund, Inc. FI Value Leaders Portfolio FI Value Leaders Portfolio (Fidelity) PIMCO Variable Insurance Trust Total Return Portfolio PIMCO VIT Total Return Portfolio Van Kampen Life Investment Trust Van Kampen Life Investment Trust Van Kampen LIT Comstock Portfolio Comstock Portfolio Van Kampen Life Investment Trust Van Kampen Life Investment Trust Van Kampen LIT Enterprise Enterprise Portfolio Portfolio Fidelity(R) Variable Insurance Contrafund(R) Portfolio Fidelity VIP Contrafund(R) Products Portfolio Fidelity(R) Variable Insurance Dynamic Capital Appreciation Fidelity VIP Dynamic Capital Products Portfolio Appreciation Portfolio Fidelity(R) Variable Insurance Mid Cap Portfolio Fidelity VIP Mid Cap Portfolio Products
ANNUITY CONTRACT LEGAL AND MARKETING NAME
ANNUITY CONTACT MARKETING NAME - --------------------------------- --------------------------------- Registered Fixed Account Fixed Account
C-1 THIS PAGE INTENTIONALLY LEFT BLANK. nk_ref'[QC]>APPENDIX D - -------------------------------------------------------------------------------- CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION The Statement of Additional Information contains more specific information and financial statements relating to the Separate Account and the Company. A list of the contents of the Statement of Additional Information is set forth below: The Insurance Company Principal Underwriter Distribution and Principal Underwriting Agreement Valuation of Assets Calculation of Money Market Yield Independent Registered Public Accounting Firms Condensed Financial Information Financial Statements - -------------------------------------------------------------------------------- COPIES OF THE STATEMENT OF ADDITIONAL INFORMATION DATED APRIL 28, 2008 ARE AVAILABLE WITHOUT CHARGE. TO REQUEST A COPY, PLEASE COMPLETE THE COUPON FOUND BELOW AND MAIL IT TO: METLIFE INSURANCE COMPANY OF CONNECTICUT, ANNUITY OPERATIONS AND SERVICES, ONE CITYPLACE, 185 ASYLUM STREET, 3 CP, HARTFORD, CONNECTICUT, 06103-3415. Name: Address: Form SAI Book 21 MetLife of CT Sep Acct Six Form SAI Book 21 MetLife of CT Sep Acct Five D-1 THIS PAGE INTENTIONALLY LEFT BLANK. nk_ref'[QC]>APPENDIX E - -------------------------------------------------------------------------------- WHAT YOU NEED TO KNOW IF YOU ARE A TEXAS OPTIONAL RETIREMENT PROGRAM PARTICIPANT If you are a participant in the Texas Optional Retirement Program, Texas law permits us to make withdrawals on your behalf only if you die, retire or terminate employment in all Texas institutions of higher education, as defined under Texas law. Any withdrawal you ask for requires a written statement from the appropriate Texas institution of higher education verifying your vesting status and (if applicable) termination of employment. Also, we require a written statement from you that you are not transferring employment to another Texas institution of higher education. If you retire or terminate employment in all Texas institutions of higher education or die before being vested, amounts provided by the state's matching contribution will be refunded to the appropriate Texas institution. We may change these restrictions or add others without your consent to the extent necessary to maintain compliance with the law. E-1 THIS PAGE INTENTIONALLY LEFT BLANK. nk_ref'[QC]>APPENDIX F - -------------------------------------------------------------------------------- COMPETING FUNDS The Underlying Funds listed below are Competing Funds: defined as any investment option under the Plan which, in our opinion consists primarily of fixed income securities and/or money market instruments. - BlackRock Money Market Portfolio - Black Rock High Yield Portfolio - BlackRock Bond Income Portfolio - Lehman Brothers((R) )Aggregate Bond Index Portfolio - Legg Mason Partners Variable Adjustable Rate Income Portfolio - Legg Mason Partners Variable High Income Portfolio - Lord Abbett Bond Debenture Portfolio - PIMCO Inflation Protection Bond Portfolio - PIMCO Total Return Portfolio - Pioneer Strategic Income Portfolio - Western Asset Management U.S. Government Portfolio F-1 THIS PAGE INTENTIONALLY LEFT BLANK. nk_ref'[QC]>APPENDIX G - -------------------------------------------------------------------------------- WAIVER OF WITHDRAWAL CHARGE FOR NURSING HOME CONFINEMENT NOT AVAILABLE UNDER SECTION 457 PLANS NOT AVAILABLE IF OWNER IS AGE 71 OR OLDER ON THE CONTRACT DATE. PLEASE REFER TO YOUR CONTRACT FOR STATE VARIATIONS OF THIS WAIVER. If, after the first Contract Year and before the Maturity Date, the Annuitant begins confinement in an eligible nursing home, you may surrender or make withdrawal, subject to the maximum withdrawal amount described below, without incurring a withdrawal charge. In order for the Company to waive the withdrawal charge, the withdrawal must be made during continued confinement in an eligible nursing home after the qualifying period has been satisfied, or within sixty (60) days after such confinement ends. The qualifying period is confinement in an eligible nursing home for ninety (90) consecutive days. We will require proof of confinement in a form satisfactory to us, which may include certification by a licensed physician that such confinement is medically necessary. An eligible nursing home is defined as an institution or special nursing unit of a hospital which: (a) is Medicare approved as a provider of skilled nursing care services; and (b) is not, other than in name only, an acute care hospital, a home for the aged, a retirement home, a rest home, a community living center, or a place mainly for the treatment of alcoholism, mental illness or drug abuse. OR Meets all of the following standards: (a) is licensed as a nursing care facility by the state in which it is licensed; (b) is either a freestanding facility or a distinct part of another facility such as a ward, wing, unit or swing-bed of a hospital or other facility; (c) provides nursing care to individuals who are not able to care for themselves and who require nursing care; (d) provides, as a primary function, nursing care and room and board; and charges for these services; (e) provides care under the supervision of a licensed physician, registered nurse (RN) or licensed practical nurse (LPN); (f) may provide care by a licensed physical, respiratory, occupational or speech therapist; and (g) is not, other than in name only, an acute care hospital, a home for the aged, a retirement home, a rest home, a community living center, or a place mainly for the treatment of alcoholism, mental illness or drug abuse. FILING A CLAIM: You must provide the Company with written notice of a claim during continued confinement after the 90-day qualifying period, or within sixty days after such confinement ends. The maximum withdrawal amount for which we will waive the withdrawal charge is the Contract Value on the next Valuation Date following written proof of claim, less any Purchase Payments and associated credits made within a one-year period before confinement in an eligible nursing home begins, less any Purchase Payments and associated credits made on or after the Annuitant's 71st birthday. We will pay any withdrawal requested under the scope of this waiver as soon as we receive proper written proof of your claim, and we will pay the withdrawal in a lump sum. You should consult with your personal tax adviser regarding the tax impact of any withdrawals taken from your Contract. G-1 THIS PAGE INTENTIONALLY LEFT BLANK. nk_ref'[QC]>APPENDIX H - -------------------------------------------------------------------------------- MARKET VALUE ADJUSTMENT (THIS SECTION IS APPLICABLE ONLY TO THE VARIABLE OR FIXED LIQUIDITY BENEFIT) If you have selected any period certain option, you may elect to surrender a payment equal to a portion of the present value of the remaining period certain payments any time after the first Contract Year. There is a surrender charge of 5% of the amount withdrawn under this option. For fixed Annuity Payments, we calculate the present value of the remaining period certain payments using a current interest rate. The current interest rate is the then current annual rate of return offered by Us on a new Fixed Annuity Period Certain Only annuitizations for the amount of time remaining in the certain period. If the period of time remaining is less that the minimum length of time for which we offer a new Fixed Annuity Period Certain Only annuitization, then the interest rate will be the rate of return for that minimum length of time. The formula for calculating the Present Value is as follows: N Present Value = [Payments X (1/1 + iC)(t/365) s = 1 Where iC = the interest rate described above n = the number of payments remaining in the Contract Owner's certain period at the time of request for this benefit t = number of days remaining until that payment is made, adjusting for leap years. If you request a percentage of the total amount available, then the remaining period certain payments will be reduced by that percentage for the remainder of the certain period. After the certain period expires, any remaining payments, if applicable, will increase to the level they would have been had no liquidation taken place. ILLUSTRATION: Amount Annuitized.................................... $12,589.80 Annuity Option....................................... Life with 10 year certain period Annuity Payments..................................... $1,000 Annually -- first payment immediately
For the purposes of illustration, assume after two years (immediately preceding the third payment), you choose to receive full liquidity, and the current rate of return that we are then crediting for 8 year fixed Period Certain Only Annuitizations is 4.00%. The total amount available for liquidity is calculated as follows: 1000 + (1000/1.04) + (1000/1.04)2 + (1000/1.04)3 + (1000/1.04)4 + (1000/1.04)5 + (1000/1.04)6 + (1000/1.04)7 = $7002.06 The surrender penalty is calculated as 5% of $7,002.06, or $350.10. The net result to you after subtraction of the surrender penalty of $350.10 would be $6,651.96. You would receive no more payments for 8 years. After 8 years, if you are still living, you will receive $1,000 annually until your death. H-1 -----END PRIVACY-ENHANCED MESSAGE-----