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An Educational Guidefor ConsumersSecure your future – withguaranteed lifetime incomeMassMutual RetireEase ChoiceSMFlexible Premium Deferred Income Annuity
Table of contents1 What does retirement mean to you?5 Secure your future – with predictable,guaranteed income6 MassMutual RetireEase Choice – adifferent kind of annuity7 Customize your income stream with avariety of choices10 After annuity payments start – featuresthat offer flexibility12 Product highlights13 Is MassMutual RetireEase Choiceright for you?14 Important considerationsA MassMutual RetireEase Choice deferred incomeannuity can help you establish a guaranteed futureincome stream that begins at a time you choose, and lastsa lifetime. What’s more, you’ll have the peace of mind thatcomes from knowing exactly how much that guaranteedincome will be.
What does retirement mean to you?Is it a traditional dream of completely escaping the daily grind to kick back and enjoy life more?Or maybe you love your work and wouldn’t dream of giving it up entirely – but you would liketo transition some of the ‘heavy lifting’ to others. On the other hand, the idea of a traditionalretirement may not resonate with you at all. Maybe your dream is all about freedom – of havingthe option to work or not – without worrying about having the money you’ll need.No matter what your goals are for the next stage of yourTaking responsibility for your own financial well-beinglife, you’ve probably spent a lifetime working hard andduring retirement has never been more important, asaccumulating a variety of assets. The challenge nowtraditional sources of predictable income, like definedbecomes how to make the transition from accumulatingbenefit pension plans, become increasingly rare. Andassets to distributing income. And the closer you get towhatever the future of Social Security, it was never intendedretirement, the more questions you may have, starting with:to replace 100% of your pre-retirement income. In the midst What’s the most efficient way to convert assetsof so much that is uncertain, making decisions that will helpinto income?secure your future may seem daunting. How can I effectively manage risk? How can I make the most of the assets I have?1
Managing the transition – from assetaccumulation to income distributionOne way to manage this transition, and the uncertainty thatcan accompany it, is by taking charge of the things you can.Having a clear vision of what you’d like your retirement tobe is the first step in bringing your dreams closer to reality.2At the same time, it’s also important to be aware of thepotential challenges that can undermine even the beststrategies. If you are aware of these challenges ahead of time,you may find yourself better equipped to deal with them.
Five key retirement risks·· Longevity risk – the possibility of outliving retirement assets. People are living longer and may spend 20-30years or more in retirement, which means a longer period of time to stretch retirement assets.63%: The probability that one person from a couple, both aged 65, will live to age 90 .1·· Excessive withdrawals risk – withdrawing too much too quickly could result in running out of money.70%: The percentage of people that believe they can safely withdraw 10% or more a year from theirretirement savings.2·· Market risk – the potential you may lose money you’ve invested. Investment losses can result in less money tolive on in retirement.4: The number of years the S&P 500 Index had a negative return between 2000-2011.3·· Inflation risk – a reduction of purchasing power over time. At a minimum, your income needs to keep pace withinflation to maintain your living standard. 274.55: The amount needed in 2011 to match the buying power of 100 in 1980.4·· Health care costs – Dramatic increases in recent years have sometimes outpaced the rate of inflation, whichcould be a significant challenge during the later years of retirement.8.3%: The average annual price increase of retail prescription drugs from 2000-2009.51A nnuity 2000 Mortality Table, Society of Actuaries.2S urvey of people age 50 , Women’s Institute for a Secure Retirement, 2009. The S&P 500 is a list of securities frequently used as a measure of U.S. stock performance: 2000: -9.1%, 2001: -11.9%, 2002: -22.1%, 2008: -37.0%,Zephyr December, 2011. Past performance is no guarantee of future returns. An index is unmanaged and is not available for direct investment.4 Bureau of Labor statistics. Consumer Price Index Calculator, January 2012.35 Kaiser Family Foundation, kaiseredu.org. Issues – Modules, Prescription Drug Costs, Background Brief, February 2010.3
A different kind of planningMassMutual RetireEase Choice is specifically designed toIn fact, making the transition from asset accumulation tohelp address your future Predictable Income needs. Thisincome distribution requires a different kind of planning.is the income you’ll need to cover the necessary expensesYour financial professional can help you to clarify yourwe all have. Such expenses include, but are not limited to,retirement goals, assess the assets you have, estimate yourhousing, utilities, taxes, fuel, food and health care.retirement expenses and identify any income gaps. ThisThe final determination of expenses that qualify asinformation can be used to tailor a plan that reflects your‘necessary’ is up to you, but no matter what you includerisk tolerance, time horizon and unique situation.as a necessity, you’ll need a secure source of predictableThis analysis and planning starts with the understandingincome to pay for it.that to retire confidently, you’ll need a diversified retirementportfolio that provides: A future predictable income stream that isPredictableIncomesecure – no matter what happens in the market. Access – a source of liquid and safe assets for thosetimes when life changes and you need flexibility; and Growth opportunities – so you can accumulatethe assets you’ll need to sustain your lifestylethroughout retirement.4GrowthAccess
Secure your future – with predictable, guaranteed incomeMassMutual RetireEase Choice is a flexible premium deferred income annuity that can providea predictable, guaranteed income stream for as long as you live.Key benefits and features include: Flexible purchase payments – Establish your futureincome stream with a single purchase payment ormultiple purchase payments over time. A variety of annuity payout options – Optionsprovide guaranteed lifetime income for one life ortwo, many of which provide beneficiary protection. Annuity date adjustment – Because loss of a job,serious health issues and other factors can derail eventhe most carefully planned retirement strategy, thecontract permits a one-time change to the annuitydate for certain annuity options. Death benefit provisions – In most cases, if deathoccurs prior to the annuity date, any purchasepayment(s) you’ve made will be paid to the beneficiary.6 Annuity payment acceleration – Owner(s) ofnon-qualified contracts with a monthly annuitypayment frequency can opt to receive three or sixmonthly annuity payments in a lump sum through atemporary change in annuity payment frequency. MassMutual Inflation ProtectorSM – This optionalbenefit can help offset the effects of inflation on yourannuity payments’ purchasing power.6Except for Single Life – No Death Benefit annuity option.5
MassMutual RetireEase Choice – a different kind of annuityMassMutual RetireEase Choice offers a way to convertThe deferral period begins on the date your contract isyour purchase payment(s) into a guaranteed income streamissued, and ends on the date that your annuity paymentsthat begins in the future and lasts a lifetime. It differs frombegin (the annuity date).traditional deferred annuities in two significant ways:1 Unlike other deferred annuities, MassMutualRetireEase Choice does not provide liquidity; thereis no contract value or withdrawal provision. Theonly time that distributions are made from yourcontract is when annuity payments are made or adeath benefit is paid.2 In exchange for liquidity, MassMutual RetireEaseChoice can guarantee a higher future income amountHaving the ability to secure future income with certaintymay help you worry less about having the income you’llneed throughout your retirement. This peace of mind maymean that other assets can be used to: Provide a source of liquid assets for emergencies; Cover discretionary spending; Pursue growth opportunities; or Provide a legacy for your heirs.at the time purchase payment(s) are made than otherYour financial professional can help you evaluate thedeferred annuities can guarantee.implications of exchanging liquidity for certainty as youBecause MassMutual doesn’t have to consider the impactdecide whether MassMutual RetireEase Choice should beof withdrawals, the company is able to invest in longer-part of your retirement portfolio.duration, generally higher-yielding assets, rather than inthe shorter-duration, generally lower-yielding assets thatsupport products offering liquidity.6
Customize your income stream with a variety of choicesFund your annuity contractMassMutual RetireEase Choice allows you to establish yourfuture income stream with a single purchase payment, orby making multiple purchase payments over time.7 After aminimum initial payment of 10,000, the minimum for anysubsequent payment is 500. The initial minimum purchasepayment must result in an annuity payment of at least 100.Each purchase payment is credited with annuity rates thatare in effect at the time each purchase payment is made.Choose an annuity dateWhen you choose your annuity date at the time youpurchase your contract, you are choosing the date thatyour deferral period ends and annuity payments begin. Inaddition to determining when your future income streamwill begin, the length of the deferral period also affects theamount of your income. A longer deferral period will resultin higher annuity payments.The annuity date you choose must be at least 13 full monthsMaking multiple purchase payments effectively spreadsafter the date your contract is issued. The maximum amountinterest rate risk over time – similar to the principles ofof time that your annuity date can be deferred is determineddollar cost averaging.as follows:All income purchased will be combined into a singleguaranteed income stream that starts on the annuity dateyou select. The annuity date may be deferred until the earlier of30 years from the issue date or when any annuitantreaches age 90. In addition, for traditional and custodial IRAs, theannuity date may be deferred only until the April 1st ofthe calendar year following the calendar year in whichthe contract owner/annuitant attains age 70½, to meetRequired Minimum Distribution (RMD) rules.Decide on an annuity payment frequencyWhen you purchase your contract, you may elect to receiveincome monthly, quarterly, semi-annually or annually. Theelection you make cannot be changed.7 MassMutual sends a confirmation statement acknowledging each subsequent purchase payment and the amount of income generated. Should youdecide to cancel a subsequent purchase payment, you can request a refund within 10 calendar days of receiving MassMutual’s confirmation. You canmake as many subsequent purchase payments as you wish, up until 13 months prior to the annuity date you elect.7
Select an annuity optionMassMutual RetireEase Choice offers a variety of lifetime income options that provide income for one life or two – many ofwhich offer beneficiary protection.The chart below summarizes the options available for single and joint lives and shows when a death benefit is applicable.Annuity optionsSingle Life optionsReturn of Premium Prior to Annuity Date8Death Benefit On or After Annuity Date9Life – Period Certain10YesYesLife – Cash RefundYesYesLife – Installment RefundYesYesLife – No RefundYesNoLife – No Death Benefit11NoNoDeath Benefit Prior to Annuity Date8Death Benefit On or After Annuity Date9Joint & Survivor Life – Period Certain10, YesYesJoint & Survivor Life – Cash RefundYesYesJoint & Survivor Life – Installment RefundYesYesJoint & Survivor Life – No Refund YesNoJoint & Survivor Life options8 Refers to death benefit payable prior to the annuity date upon death of any owner (or annuitant if a non-natural owner).9 Refers to any death benefit payable after the annuity date upon death of the last surviving annuitant.10 Period Certain can be between 10 years and 30 years.11 Single Life – No Death Benefit annuity option:T he Single Life – No Death Benefit does not provide a death benefit – either before or after the annuity date. This means that if you die at any timeafter MassMutual issues the annuity contract, your purchase payment(s) will not be refunded. Please refer to page 15 of the Important Considerationssection of this guide for additional information about this option. Single Life – No Death Benefit is not available in Connecticut or Florida. Reduction at death of either annuitant available (1/2, 2/3, or 3/4).8
Annuity option guaranteesJoint and Survivor Life – Period Certain annuity option – IfCash Refund Guarantee – Upon the death of the lastboth annuitants die before the end of the Period Certain,surviving annuitant, if the total of all annuity paymentsannuity payments will continue to be paid to the beneficiarymade is less than the purchase payment(s) made, thein the same amount and at the same frequency then in effectbeneficiary will receive the difference in a lump sum. If theuntil the end of the Period Certain. The beneficiary(ies) maytotal of all annuity payments made is equal to or greaterinstead elect to receive the present value of any remainingthan the purchase payment(s), the contract will terminate.annuity payments in a lump sum. If the last survivingannuitant dies after the end of the Period Certain, theInstallment Refund Guarantee – Upon the death of the lastcontract will terminate.surviving annuitant, if the total of all annuity payments isless than the purchase payment(s) made, MassMutual willcontinue to make annuity payments in the same amountand at the same frequency then in effect, until the annuitypayments made equal the purchase payment(s). Thebeneficiary(ies) may elect instead to receive the presentConsider a death benefitMassMutual RetireEase Choice death benefit provisions aredetermined by whether death occurs before the annuity dateor on or after the annuity date.value of any remaining annuity payments in a lump sum. IfAll annuity options, with the exception of the Single Lifethe total of all annuity payments made is equal to or greaterAnnuity – No Death Benefit, provide a return of anythan the purchase payment(s), the contract will terminate.purchase payments applied to the contract if death occursprior to the annuity date. If death occurs on or after thePeriod Certain Guaranteeannuity date, any death benefit is determined by the annuitySingle Life – Period Certain annuity option – If theoption you choose.annuitant dies before the end of the Period Certain, annuitypayments will continue to be paid to the beneficiary in thesame amount and at the same frequency then in effect untilthe end of the Period Certain. The beneficiary(ies) mayinstead elect to receive the present value of any remainingannuity payments in a lump sum. If the annuitant dies afterFor important details on death benefit provisions,please refer to pages 15 and 16 of the ImportantConsiderations section.the end of the Period Certain, the contract will terminate.9
After annuity payments start – features that offer flexibilityMassMutual RetireEase Choice includes features that can offer additional flexibility once yourannuity payments have started. There is no additional cost for these features, but there arelimitations specific to each one. Let’s take a closer look at these features.Annuity date adjustment feature12Keep in mind that if you change your annuity date, theMost MassMutual RetireEase Choice annuity options permitnew annuity date is irrevocable. In addition, your annuitya one-time change to the annuity date you choose when youpayment amount will be recalculated. If you: Defer the annuity date – the annuitypayment increases.purchase your contract. This feature allows you to accelerateor defer your annuity date within a 10-year window, up to five Accelerate the annuity date – the annuitypayment decreases.years before or up to five years after the original annuity date.Let’s say that you select an annuity date that will triggerYour new annuity payment will be based on your originallyannuity payments when you reach age 65. You would bescheduled annuity payment, the new annuity date, theable to change the annuity date so that it occurs at any timeMoody’s Seasoned Baa Corporate Bond Yield rate atbetween the ages of 60 and 70.the time we receive the annuity date change request, thePlease refer to page 17 for additional information on theAnnuity 2012 Mortality Table, and an interest rate changeannuity date adjustment feature.adjustment set forth in your contract. This option is notavailable with the following annuity options: Life – No Death Benefit Life – No Refund, and Joint and Survivor Life – No RefundOriginalAnnuityStart Date5 years prior6061626364655 years later6667686970Ages12 Florida requires that all deferred annuity contracts permit the owner to annuitize the contract any time after 13 months have passed from the contract issuedate, therefore, for contracts issued in the state of Florida, the annuity date can be accelerated for all annuity options, including the Life – No Refund andJoint and Survivor – No Refund. The annuity date can be accelerated to a date that is as early as 13 months following the contract issue date, and is notlimited to within five years prior to the annuity date. All other provisions of the Annuity Date Adjustment Rider apply.10
Annuity payment accelerationOnce annuity payments have begun, owners of non-qualified contracts with a monthly payout frequency can elect toaccelerate either three or six of their regularly scheduled annuity payments in a lump sum, through a temporary change inannuity payment frequency.MassMutual must receive a written request for acceleration before the next scheduled annuity payment for which theacceleration should occur. You will receive a lump sum payment on the next regularly scheduled annuity payment date inan amount equal to that annuity payment, plus the next two (or five) regularly scheduled annuity payments. No additionalannuity payments will be made until regularly scheduled monthly payments resume.Regular annuity payments resume after the three- or six-month period ends. You may exercise this option a maximum offive times over the life of the contract. You must receive at least one regularly scheduled annuity payment before requestinganother acceleration. Let’s look at an example of how this works.On the 15th of each month, Bill receives an annuity payment of 1,000. Shortly after receiving his September 15th annuitypayment, Bill decides that he wants to receive three months of annuity payments in a lump sum. He sends a written requestto MassMutual, asking for this acceleration. Here’s how his annuity payment stream would look before, during and after theacceleration of Bill’s annuity payments.Annuity payment stream example using the three-month acceleration optionNovember 15thSeptember 15thOctober 15th 0January 15th 1,000 3,000(Includes Bill’s 10/15, 11/15 and12/15 annuity payments)December 15th 1,000 0Tax treatment of accelerated annuity paymentsMassMutual reports any accelerated payments as annuity payments. Because deferred income annuities are relatively new tothe market, the Internal Revenue Service (IRS) has not yet ruled on this tax treatment. If you have questions or concerns, besure to talk with your tax advisor.MassMutual Inflation ProtectorMassMutual Inflation Protector is an optional feature that can help offset the effects of inflation on your annuity payments’purchasing power. This feature automatically increases the amount of each payment by 1%, 2%, 3% or 4% on the annuitydate anniversary each year.If you choose to add this feature to your contract, you must elect it and the inflation percentage amount when your contractis issued. Once elected, this feature cannot be cancelled or changed. Please refer to page 17 of the Important Considerationssection of this guide for additional information on MassMutual Inflation Protector.11
Product highlightsMinimum issue age13 (Owner/Annuitant)Maximum issue age13Minimum initialpurchase paymentMinimum subsequentpurchase paymentsMaximum cumulativepurchase payment15Deferral period(Begins on the contract issue dateand ends on the annuity date.)Withdrawal provisionsIncome payment frequencyAnnuity date adjustment(Exceptions apply to contracts issued in thestate of Florida.)Annuity payment acceleration(Available after annuity paymentshave begun.)Annuity payment optionsDeath prior to the annuity date(Death of owner, or annuitant if the owneris a non-natural entity, such as a trust.)Death on or after the annuity date(Death of last surviving annuitant.)Optional inflation protectionAge 22 (if joint annuitants, age 22 for both)Non-qualified and Roth IRA: Age 88 for annuitant and joint annuitantQualified (Traditional and Custodial IRAs): Age 6814 for annuitant and age 88 for joint annuitant 10,000 (qualified and non-qualified) Must result in a minimum annuity payment of 100 500 each. You will receive a confirmation of any subsequent purchase payments and the additionalincome amount purchased. You may request a refund of additional purchase payments within 10calendar days of receiving a confirmation. 1.5 million (without Home Office approval)Minimum: 13 full months from date of contract issueMaximum: The annuity date may be deferred until the earlier of 30 years from the issue date or until anyannuitant reaches age 90. For traditional IRA and custodial IRA contracts, the annuity date may not be deferred past April1st of the calendar year following the calendar year in which the contract owner/annuitant attainsage 70½, to meet RMD rules.NONEMonthly, quarterly, semi-annually or annually Accelerate or defer annuity date within a 10-year window (5 years before or after) of the annuitydate chosen at contract issue. MassMutual will not approve any change that would result in an income stream that does not meetRMD requirements. In that case, the ability to adjust the annuity date may be limited or unavailable. Not available with the Life – No Death Benefit, Life – No Refund, and Joint and Survivor Life – NoRefund annuity options. Non-qualified contracts only with a monthly payout option Option to request a lump sum payment of 3 or 6 annuity payments Limited to 5 requests over life of contractSingle Life optionsJoint & Survivor Life optionsLife – Period Certain (10-30 years)Joint & Survivor Life – Period Certain (10-30 years)17Life – Cash RefundJoint & Survivor Life – Cash RefundLife – Installment RefundJoint & Survivor Life – Installment RefundLife – No RefundJoint & Survivor Life – No Refund17Life – No Death Benefit16N/A(Only available with a minimum 10-year deferral)Return of purchase payment(s), except for Single Life – No Death Benefit annuity optionDeath benefit, if applicable, is determined by the annuity income option. MassMutual Inflation Protector – Automatically increases annuity payments by a specifiedpercentage on each anniversary of the annuity date. Must be elected at issue and may not be cancelled or changed. Electing this option will reduce the amount of your beginning annuity payments. May be limited or not available at all for qualified contracts, due to RMD rules. MassMutual defines age as “age nearest”, which is calculated on the individual’s nearest birthday. For example, if John is 74 years and six months andone day old, his contract age is 75.14Due to Required Minimum Distribution (RMD) rules applicable to qualified contracts.15 Cumulative purchase payments include all deferred income annuity contracts issued by MassMutual and its subsidiaries that are owned by thesame contract owner (whether as a sole or joint contract owner), or that have the same annuitant (whether as a single or joint annuitant).16Not available in Connecticut or Florida.17Reduction at death of either annuitant available.Note: MassMutual reserves the right to reject any application or purchase payment.1213
Is MassMutual RetireEase Choice right for you?A careful analysis of your personal situation can help you determine whether using a portion ofyour retirement assets to purchase MassMutual RetireEase Choice is right for you.Although there is no substitute for talking with a trusted financialprofessional, the following thoughts may serve as a starting point forquestions and a more detailed discussion.Getting started MassMutual RetireEase Choicemay be appropriate if you:MassMutual RetireEase Choicemay not be appropriate, if you : Are willing and able to give upliquidity for a portion of yourretirement assets. Are not comfortable with acontract that offers no cashvalue and no withdrawal feature. Have a separate, reliablesource of liquid assets availablefor emergencies. Prefer to receive income frominterest or earnings whilepreserving principal. Expect to receive minimal or nopension benefits. Need an income stream that beginsimmediately or in the near future. Are interested in establishingyour own pension-like strategy bymaking a single purchase paymentor multiple purchase paymentsover time. Are looking for an annuity to usein Medicaid planning.** MassMutual RetireEase Choice is not a Medicaid-friendly deferred annuity.The use of MassMutual RetireEase Choice in conjunction with Medicaidplanning is prohibited.To learn more about how MassMutual RetireEase Choice can helpyou to secure your future today, contact your financial professional.13
Important ConsiderationsThis section of your consumer guide provides important details on key product features. Fromsetting up your contract to understanding how certain death benefit provisions work, it providesinformation that you may find helpful as you make your decisions.Parties to the contract – basic definitions Owner – The person or entity entitled to ownershiprights as stated in the contract. Annuitant – The “measuring life” or primary personupon whose life annuity payments are based. Theannuitant has no rights to the contract. Each contractmay have only two annuitants. The annuitant(s)cannot be changed once the contract is issued. Beneficiary – The person(s) or entity(ies) designatedto receive the death benefit provided by the contract.Upon death of the owner(s) or annuitant(s) thebeneficiary(ies) may become the new owner(s),based on the death provisions in the contract. TheSetting up your contract – things to keepin mind The owner and the annuitant must be the same atthe time the contract is issued, unless a non-naturalentity (such as a trust) owns the contract.* There can be no joint ownership with a non-naturalperson. There can be only two joint owners percontract. If there are joint owners, there must be jointannuitants and the joint owner and the joint annuitantmust be the same person. The annuitant and joint annuitant (if any) cannot bechanged once the contract is issued. For qualified contracts, the joint annuitant (if any)owner(s) may designate both primary and contingentmust be the sole primary beneficiary and cannot bebeneficiaries. The owner may add or removechanged once the contract is issued. With a joint andbeneficiaries at any time prior to the time a deathsurvivor annuity option, if the owner/annuitant dies,benefit is paid unless the contract is an individuallythe joint annuitant (as sole beneficiary) has all rightsowned qualified contract with joint annuitants.under the contract, including the right to: Payee – The individual or entity designated by the–– Receive annuity payments, orowner who receives the income payments during the–– Designate a new payee.life of the contract. The payee does not have to be theThis provision applies whether or not there has beenowner, annuitant or beneficiary and additional payeesa change in that annuitant’s relationship with thecan be added, deleted or changed at the discretion ofowner/annuitant (i.e., divorce).the owner(s).* If the owner and annuitant on a non-qualified contract are not the same, annuity payments may be subject to a 10% tax penalty.14
Annuity payment options – essentialconsiderationsSingle Life optionsThe Single Life – No Death Benefit annuity option maybe appropriate if you want to maximize your guaranteedlifetime income and you have no beneficiary or estateconcerns. However, it’s essential to understand that thisoption requires that you: Choose a deferral period of 10 years or more; Keep the annuity date you originally selected; noannuity date changes are allowed with this option; and–– If a Joint and Survivor Life annuity option witha reduction was elected, the reduced annuitypayment becomes effective on the annuity date.–– If the Joint and Survivor annuity option includes aguarantee, such as a Period Certain, the benefit willnot reduce until the end of the guarantee period.–– If the contract is owned by a non-natural person(such as a trust), the death of any annuitant will betreated as the death of an owner and will trigger adeath benefit. If a contract owner dies during the deferral period,and the spouse is the joint annuitant and sole primary Relinquish any death benefit – either before or afterbeneficiary, he or she can choose to continue thethe annuity date. This means that if you die at anycontract with the Joint and Survivor Life annuitytime after MassMutual issues the annuity contract,option, or receive the death benefit.your purchase payment(s) will not be refunded.Before making this decision, you should con
benefit can help offset the effects of inflation on your annuity payments' purchasing power. 6 Except for Single Life - No Death Benefit annuity option. Secure your future - with predictable, guaranteed income MassMutual RetireEase Choice is a flexible premium deferred income annuity that can provide
