RELIASTAR LIFE INSURANCE COMPANY

 

 

VOYA ENCORE/VOYA ENCORE FLEX

INDIVIDUAL FIXED AND VARIABLE DEFERRED ANNUITY CONTRACTS

 

issued to

A Contract Owner, on a Nonqualified Basis, or in Connection With Retirement Arrangements Qualifying for Special Treatment Plans Under Tax Code Sections 403(b) or 408

 

 

NOTICE DOCUMENT

May 20, 2022

____________________________________________________________________________

 

This notice document summarizes key features of the Voya Encore/Voya Encore Flex individual fixed and variable deferred annuity contracts (the “Contract” or the “Contracts”) issued by ReliaStar Life Insurance Company (“ReliaStar Life,” the “Company,” “we,” “us” and “our”). There are two series of Contracts:  the Transfer Premium Series, designed mainly for large transfers and/or Purchase Payments and the Flexible Premium Series, designed mainly for modal Purchase Payments. The Contracts are no longer available for new sales. The Contract described in this notice document is intended to be a retirement savings vehicle that offers a variety of investment options to meet long-term financial goals and provide for a death benefit and guaranteed income options. You should read this notice document carefully, particularly the section titled “IMPORTANT INFORMATION YOU SHOULD CONSIDER ABOUT THE CONTRACT.”

 

A Contract prospectus is currently available online, which contains more information about the Contract, including its features, benefits, and risks. You can find this document and other information about the contracts online at https://vpx.broadridge.com/getcontract1.asp?dtype=prnt&cid=voyavpx&fid=NRVA03739. You can also obtain this information at no cost by calling 1-877-884-5050 or by sending an email request to [email protected].

 

Additional general information about certain investment products, including variable annuities, has been prepared by the Securities and Exchange Commission’s staff and is available at Investor.gov.

 

The Securities and Exchange Commission (the “SEC”) has not approved or disapproved this Contract or passed upon the adequacy of this notice document. Any representation to the contrary is a criminal offense.

 

 

 

 

SPECIAL TERMS USED IN THIS NOTICE DOCUMENT.  3

UPDATED INFORMATION ABOUT YOUR CONTRACT.  4

IMPORTANT INFORMATION YOU SHOULD CONSIDER
ABOUT THE CONTRACT.  4

APPENDIX A:  FUNDS AVAILABLE UNDER THE CONTRACT..  8

APPENDIX B:  THE FIXED ACCOUNTS    18

APPENDIX C:  ELIGIBLE FUNDS.    21

APPENDIX D:  MGWB RIDER EXAMPLES.    22

HOW TO GET MORE INFORMATION.   25

 

 

The following are some of the important terms used throughout this notice document that have special meaning.

 

Account Value:  The value of:  (1) amounts allocated to the Fixed Interest Options, including interest earnings to date; plus (2) the current dollar value of amounts allocated to the Subaccounts of Separate Account N, which includes investment performance and fees deducted from the Subaccounts.

 

Accumulation Phase:  The period of time between the date the Contract became effective and the date you start receiving Income Phase payments under the Contract. During the Accumulation Phase, you accumulate retirement benefits.

 

Contract or Contracts:  The individual deferred fixed and variable annuity Contracts intended to be retirement savings vehicles that offer a variety of investment options to help meet long-term financial goals and provide for a death benefit and guaranteed income options.

 

Contract Holder:  The person to whom we issue the Contract. Generally, the Plan Sponsor or a trust. We may also refer to the Contract Holder as the Contract Owner.

 

Customer Service:  The location from which we service the Contract. The mailing address and telephone number of Customer Service is P.O. Box 1559, Hartford, Connecticut 06115-15559, 1-877-884-5050.

 

Fixed Interest Options:  Fixed Account D (available only for Flexible Premium Series Contracts) and DCA Fixed Account (collectively “Fixed Account”) are Fixed Interest Options available during the Accumulation Phase. The DCA Fixed Account is for dollar cost averaging only. Amounts allocated to the Fixed Interest Options are held in the Company’s General Account which supports insurance and annuity obligations.

 

Fund(s):  The underlying mutual Funds in which the Subaccounts invest.

 

General Account:  The account that contains all of our assets other than those held in Separate Account N or one of our other separate accounts.

 

Income Phase:  The period during which you receive payments from your Contract.

 

Investor (also “you”):  The individual who participates in the Contract through a retirement plan.

 

Minimum Guaranteed Accumulation Benefit (“MGAB”) Rider: This rider provides you with a minimum guaranteed accumulation benefit intended to guarantee a minimum contract value at the end of a specified waiting period.

 

Minimum Guaranteed Withdrawal Benefit (“MGWB”) Rider:  This rider is intended to allow for minimum withdrawals up to the Annual Withdrawal Amount, regardless of market performance, until the Remaining Guaranteed Balance equals zero.

 

Purchase Payment:  Collectively, the initial purchase payment and any additional purchase payment.

 

ReliaStar Life, the Company, we, us and our:  ReliaStar Life Insurance Company, a stock company domiciled in Minnesota, that issues the Contract described in this notice document.

 

Separate Account: Separate Account N, a segregated asset account established by us to fund the variable benefits provided by the Contract. Separate Account N is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and it also meets the definition of “separate account” under the federal securities laws.

 

Subaccount:  Division(s) of Separate Account N that are investment options under the Contract. Each Subaccount invests in a corresponding underlying mutual Fund.

 

Tax Code:  The Internal Revenue Code of 1986, as amended.

 

Variable Investment Options:  The Subaccounts of Separate Account N. Each one invests in a specific mutual Fund.

 

 

 

The information in this notice document is a summary of certain Contract features that have changed since May 1, 2021. This may not reflect all of the changes that have occurred since you entered into your Contract.

 

·     Investment Options

>    Effective on or about June 20, 2021, the Subaccount that invests in the Franklin Small Cap Value VIP Fund will be closed to new investment by new investors. Existing retirement plans and individual investors who have investment in the Subaccount that corresponds to this Fund may leave their investment in that Subaccount and may continue to make additional purchases and exchanges.

>    The Voya Large Cap Growth Portfolio and the VY^® T. Rowe Price Growth Equity Portfolio each changed their classification from “diversified” to “non-diversified,” as such items are defined under the Investment Company Act of 1940, as amended.

 

 

 

An investment in the Contract is subject to fees, risks and other important considerations, some of which are briefly summarized in the following table. You should review the prospectus for additional information about these topics.

 

 

 

 

 

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The following is a list of Funds available under the Contract. The Funds available to you may vary based on employer and state approval and participants should refer to their plan documents for a list of available Funds.

 

More information about the Funds is available in the prospectuses for the Funds, which may be amended from time to time and can be found online at https://vpx.broadridge.com/getcontract1.asp?dtype=prnt&cid=voyavpx&fid=NRVA03739. You can also request this information at no cost by calling Customer Service at 1-877-884-5050 or by sending an email request to [email protected].

 

The current expenses and performance information below reflects fee and expenses of the Funds, but do not reflect the other fees and expenses that your Contract may charge. Expenses would be higher and performance would be lower if these other charges were included. Each Fund’s past performance is not necessarily an indication of future performance.

 

 

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·       Fixed Account D (for flexible premium series contracts only) and the DCA Fixed Account (collectively, the “Fixed Account”) as investment options that may be available during the Accumulation Phase.

·       The amounts allocated to the Fixed Accounts are held in the Company’s General Account, which supports insurance and annuity obligations. All guarantees and benefits provided under the Contracts that are not related to the Separate Account are subject to the claims paying ability and financial strength of the Company and our General Account.

·       All or a portion of your Purchase Payment may be allocated to the Fixed Accounts.

·       Interests in the Fixed Accounts have not been registered with the SEC in reliance on exemptions under the Securities Act of 1933, as amended.

·       The Fixed Accounts have not been registered as investment companies under the Investment Company Act of 1940.

·       Disclosure in this prospectus regarding the fixed accounts may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of the statements.

·       Additional information about the fixed accounts may be found in the contracts. Additional information about the DCA Fixed Account may also be found in the program application.

 

 

Interest Rates

 

Fixed Account D. Fixed Account D has an interest rate that is set periodically by the Company. Interest will be credited and compounded daily using the daily equivalent of effective yearly interest rates, which is the yield resulting after interest has compounded daily for a full year. For information about current interest rates, please contact Customer Service at 1-877-884-5050.

 

We guarantee an effective yearly interest rate that complies with the nonforfeiture law that is in effect on the issue date for the state in which the Contract was delivered. In no circumstance will the effective yearly interest rate be less than the guaranteed minimum interest rate.

 

We may credit interest in excess of the guaranteed rate. Any interest in excess of the guaranteed rate will be declared at the beginning of the period for which it is payable. In setting interest rates, we may consider many factors, including but not limited to, investment yields rates, taxes, competitive factors, desired margins, contract persistency, and other experience factors. Among other factors, the safety of the interest rate guarantees depends upon the Company’s financial strength and claims-paying ability.

 

DCA Fixed Account. The DCA Fixed Account has an interest rate that is set periodically by the Company. Interest will be credited and compounded daily using the daily equivalent of effective yearly interest rates, which is the yield resulting after interest has compounded daily for a full year. The annual minimum guaranteed interest rate will apply to all amounts held in the DCA Fixed Account during the calendar year.

 

The interest rate earned on the DCA Fixed Account will be the minimum guaranteed interest rate plus any additional interest, which we may declare from time to time. In no circumstance will the effective yearly interest rate be less than the guaranteed minimum interest rate.

 

A purchase payment allocated to a DCA term will be credited with interest at the rate in effect at the start of the DCA term. That rate will remain in effect for the remaining balance of that purchase payment until the DCA term ends. Subsequent purchase payments into the same DCA term earn interest at the then current interest rate applied to new allocations to a DCA term of the same duration. There may be different interest rates for different DCA terms. DCA terms of the same duration may have different interest rates depending on when the DCA term began.

 

 

 

Interest rates are set at our complete discretion. The DCA Fixed Account may credit a different interest rate(s) than other fixed accounts we may offer under the contract.  In setting interest rates, we may consider many factors, including but not limited to, investment yields rates, taxes, competitive factors, desired margins, contract persistency, and other experience factors. Among other factors, the safety of the interest rate guarantees depends upon the Company’s claims-paying ability.

 

 

Transfers

 

Fixed Account D. During the accumulation phase period, amounts in Fixed Account D may be reallocated at any time to the subaccounts, subject to the following requirements:

 

Each rolling 12-month period, twenty percent (20%) may be transferred from Fixed Account D to the subaccounts. The amount available for transfer during any contract year is based on the contract value in Fixed Account D as of the date we receive the transfer request in good order at our Administrative Service Center, reduced by any amount withdrawn, transferred, taken as a loan, or used to purchase income phase payments during the 12 months prior to the transfer request. In addition, we reserve the right to reduce the amount available for transfer by amounts withdrawn under a systematic withdrawal option. We may, on a non-discriminatory basis, allow transfers of a larger percentage.

 

Twenty percent of the amount in Fixed Account D may be transferred in each of four consecutive 12 month periods and the balance reallocated in the fifth 12-month period subject to the following conditions:

·       During the five-year period, no additional amounts are allocated to or reallocated from Fixed Account D;

·       We will include any amounts reallocated, taken as a loan, or used to purchase income phase payments during the prior 12-month period when calculating the 20% amount; and

·       We reserve the right to include amounts paid under a systematic withdrawal option when calculating the 20% amount.

 

We reserve the right to waive the transfer limit when the amount in Fixed Account D is less than $2,000. We may, on a non-discriminatory basis, allow transfers of a larger percentage.

 

No transfers to or from Fixed Account D are allowed after the beginning of the income phase. See also “Transfers” in the contract prospectus.

 

DCA Fixed Account. Transfers from the DCA Fixed Account are only allowed pursuant to the dollar cost averaging program. See “Transfers–Dollar Cost Averaging Program” in the contract prospectus.

 

 

Withdrawals

 

Fixed Account D. The contract owner may request a full or partial withdrawal from Fixed Account D. Partial withdrawals from the contract will be made on a pro-rata basis from each subaccount and fixed account. If another method of allocation is desired, you must request it in writing to us. Under certain emergency conditions we may defer payment of any withdrawal for a period of up to six months or as otherwise provided by law.

 

While the value of purchase payments allocated to Fixed Account D is included in the calculation of the withdrawal charge upon a partial or full withdrawal of contract value, we will not apply a withdrawal charge to the portion of the contract value allocated to Fixed Account D. We will calculate the amount of the withdrawal charge waived by multiplying the withdrawal charge by the percentage that the amount withdrawn from Fixed Account D bears to the total amount withdrawn.

 

 

 

Partial Withdrawals. Each 12-month period, twenty percent (20%) may be withdrawn from Fixed Account D. The amount available for withdrawal is based on the contract value in Fixed Account D as of the date we receive the withdrawal request in good order at our Administrative Service Center, reduced by the amount withdrawn, reallocated, taken as a loan, or used to purchase income phase payments during the contract year. In addition, we reserve the right to reduce the amount available by deducting any amount withdrawn under a systematic distribution option.

 

Full Withdrawals. The contract owner may withdraw the full amount from Fixed Account D. When we receive a request for a full withdrawal, no additional transfers, partial withdrawals or loans are allowed. The withdrawal is paid as follows:

·       One-fifth of the contract value in Fixed Account D as of the date we receive the withdrawal request at our administrative service center, reduced by the amount, if any, transferred, withdrawn, taken as a loan, or used to purchase income phase payments during that contract year; then

·       One-fourth of the remaining amount 12 months later; then

·       One-third of the remaining amount 12 months later; then

·       One-half of the remaining amount 12 months later; then

·       The balance of the contract value in Fixed Account D 12 months later.

 

When we receive a request for a full withdrawal, no additional transfers, partial withdrawals or loans are allowed. The contract owner may cancel a full withdrawal request from Fixed Account D at any time.

 

Waiver of Full and Partial Withdrawal Restrictions. Full and partial withdrawal restrictions are waived when the withdrawal is:

·       Due to the contract owner’s death during the accumulation phase, and the withdrawal is made within six months of the date of death;

·       Used to purchase income phase payments on a life contingent basis or for a stated period on a fixed only basis;

·       Due to disability, extended confinement, or terminal illness within the meaning of the Tax Code, subject to the provisions regarding waiver of the withdrawal charge;

·       Due to separation from service with your employer after age 55 (available beginning five years from the issue date) (for 403(b) contracts only).

·       To satisfy minimum distribution requirements; or

·       Due to other conditions as we may allow without discrimination.

 

Not all waivers may be available in all states. Refer to your contract for a description of available waivers.

 

Withdrawals will be made on a last-in first-out basis (i.e., the most recent purchase payment and associated earnings on that purchase payment will be the first to be withdrawn from the contract value, followed by the next most recent purchase payment and associated earnings, and so on).

 

DCA Fixed Account. Amounts withdrawn from the DCA Fixed Account are subjected to the applicable withdrawal charge. See “FEES” and “WITHDRAWALS” in the contract prospectus.

 

Charges. We do not make deductions from amounts in the fixed accounts to cover mortality and expense risks. We consider these risks when determining the credited rate. We expect to derive a profit from the determination of the credited rate. If you make a full withdrawal, the amount available from the DCA Fixed Account will be reduced by any early withdrawal charge (as applicable) and annual contract charge. See “FEE TABLE” and “FEES” in the contract prospectus.

 

Interest on Death Benefit. Any death benefit paid from amounts invested in Fixed Account D will include interest from the Death Benefit Valuation Date until the death benefit is paid at a rate not less than required by law.

 

Guarantee. We guarantee that the fixed contract value will not be less than the amount of purchase payments and transfers allocated to the fixed account, plus interest at the minimum guaranteed rate disclosed in the annuity contract, compounded annually, plus any additional interest which we may, in our discretion, credit to the fixed accounts (as described above), less any charges for the optional death benefit riders or early withdrawal charges, any applicable premium taxes and any amounts withdrawn or reallocated from the fixed accounts.

 

 

 

If you have selected the MGAB rider or the MGWB rider, you must remain invested at all times in one or more of the following Eligible Funds in order to receive the benefits of these riders (other than during the free look period, when we may require you to invest in the money market option). Failure to remain so invested will result in the termination of the applicable rider, and no charges deducted under the rider will be refunded. Accordingly, you should not purchase one of these riders if you do not believe that you will be comfortable remaining invested in one or more of the following funds during the entire time the rider is in effect.

 

 

Voya Solution 2025 Portfolio

Voya Solution 2035 Portfolio

Voya Solution 2045 Portfolio

Voya Solution Income Portfolio

 

 

 

The following examples have been provided to help illustrate how the Minimum Guaranteed Withdrawal Benefit rider works in certain circumstances. For the purpose of these illustrations, the “Cash Value after Purchase Payment or Withdrawal” has been selected in order to illustrate specific situations. We have noted where we have assumed market performance, both negative and positive. This assumed performance is illustrative only.

 

Example A:  The following example illustrates the values of the Guaranteed Withdrawal Base, Annual Withdrawal Amount and Remaining Guaranteed Balance on an initial purchase payment of $100,000:

 

 

Example B:  The following example illustrates the effect of subsequent purchase payments made during the first contract year, and assumes an investment return of $2,000 between 01/01/22 and 03/01/22:

 

 

Example C:  The following example illustrates the effect of subsequent purchase payments made after the first contract year, and assumes an investment loss of $2,000 between 03/01/22 and 03/01/23:

 

 

Example D:  The following examples illustrate the effect of withdrawals that do not exceed the Annual Withdrawal Amount, and assumes an investment loss of $3,000 between 03/01/23 and 02/01/24 and an additional investment loss of $1,500 between 02/01/24 and 04/01/24:

 

 

 

Example E:  The following examples illustrate the effect of cumulative withdrawals that exceed the Annual Withdrawal Amount, and assumes an investment loss of $10,500 between 04/01/24 and 07/01/25 and an additional investment loss of $4,000 between 07/01/25 and 08/01/25:

 

 

The Guaranteed Withdrawal Base and Remaining Guaranteed Balance immediately following the excess withdrawal are reset to the lesser of the contract value immediately after the withdrawal ($94,000) or the Remaining Guaranteed Balance immediately prior to the withdrawal less the withdrawal amount ($108,000 - $5,000 = $103,000).

 

Example F:  The following examples illustrate the effect of taking a required minimum distribution that exceeds the Annual Withdrawal Amount and assumes an investment return of $10,700 between 08/01/25 and 03/01/26 and an additional investment return of $1,000 between 03/01/26 and 09/01/26:

 

 

In this case the Guaranteed Withdrawal Base and Remaining Guaranteed Balance are not adjusted as they were in Example E.

 

Example G:  The following example illustrates the effect of the election of the Reset option on the 10^th contract anniversary (or the beginning of contract year 11) and assumes an investment return of $10,700 between 09/01/26 and 05/01/27, an additional investment return of $9,700 between 05/01/27 and 05/01/28, a subsequent investment loss of $2,300 between 05/01/28 and 05/01/29, an additional investment return of $2,700 between 05/01/29 and 05/01/30, an additional investment return of $6,700 between 05/01/30 and 05/01/31, and an additional investment return of $2,000 between 05/01/31 and 01/01/32:

 

 

If the contract has experienced market gains, they can be “locked in” by “Resetting” the Guaranteed Withdrawal Base and Remaining Guaranteed Balance equal to contract value. This also increases the Annual Withdrawal Amount.

 

 

Example H:  The following example illustrates when a contract enters into Automatic Withdrawal Status and assumes the maximum annual withdrawal amount is withdrawn in years 11 through 24 and there is no investment gain or loss during that period.

 

 

If contract value is not sufficient to satisfy the Annual Withdrawal Amount, as is the case in contract year 26, the rider is placed into Automatic Withdrawal Status. Automatic Periodic Payments equal to the Annual Withdrawal Amount will continue to be paid until the Remaining Guaranteed Balance is reduced to zero. If death were to occur while in Automatic Withdrawal Status (contract years 26-30), Automatic Periodic Payments would cease and the MGWB Death Benefit equal to the Remaining Guaranteed Balance will be paid as a single lump-sum to the person entitled to death proceeds.

 

 

 

 

This notice document incorporates by reference the full Voya Encore/Voya Encore Flex Contracts prospectus and Statement of Information (the “SAI”), each dated April 30, 2012, as amended or supplemented. You can find these documents online at https://vpx.broadridge.com/getcontract1.asp?dtype=prnt&cid=voyavpx&fid=NRVA03739. You can also obtain these documents at no cost by calling 1-877-884-5050 or by sending an email request to [email protected].