MEP-AE-SOCP June 2009 Proposal ID #: 81720V6 - 113743 Page 1
Transamerica Financial Life Insurance Company (“TFLIC”) offers a group annuity contract (Contract) to Multiple Employer Plans (“MEP”) that sponsor a multiple employer retirement plan for their adopting participating employers. This is only a summary of some of the important terms and conditions of the Contract issued to the plan trustee of the MEP. The terms of the Contract are controlling.
This product is available under form number TA-AP-2001-CONT, a group variable annuity contract underwritten by Transamerica Financial Life Insurance Company
Service Fee Schedule:Generally, Service Feesrelate to the services provided and are paid directly by the plan sponsor on a quarterly basis. If allowed by applicable law and the plan document, some fees may be charged directly against plan assets at the discretion of the plan sponsor or plan fiduciary.
Installation Fees(Per adopting employer)
Initial installation:
Fee for each participating employer of the MEP at the time of initial installation. / $ 0 / After initial Installation:
Fee for each participating employer adopting the MEP after the initial installation of the MEP: / $ 0
Annual Recordkeeping Fees: Fees are for routine/customary recordkeeping services. For a detailed description of these services contact the plan administrator. The Annual Recordkeeping fees below are subject to a minimum Annual Recordkeeping Fee of $ 0 for each adopting employer.
# of Adopting Participating Employers / Annual PerParticipant Charge
(Expressed in Dollars)
0 + / 38
Additional Services
Distributions: / $ 50 per distribution
Distributions paid in installments: / $ 10 per installment
Loan set up: / $ 50per loan
Annual loan maintenance: / $ 50 per loan
Enrollment Services
Enrollment via Teleconference / No Charge
Employer Enrollment Guide / No Charge
Enrollment Kits / No Charge
Enrollment Workshops (participating employer level).
Total # participants in attendance
during an Enrollment Day / # of Free Enrollment Days / Charge
10 - 49 / 1 / $0
50 - 74 / 2 / $0
75 - 99 / 3 / $0
100 - 124 / 4 / $0
125 - 149 / 5 / $0
More than 149 / Negotiable
Charge for less than 10 attendees during an Enrollment day: / $ 300
Charge for days of enrollment in excess of free days given: / $ 300
An Enrollment Day is defined as 1 enroller conducting a maximum of 5meetings in that day.
Investment Choice Expenses
Investment choice expenses can be found on the applicable investment fact sheets, as well as the investment performance overview, provided separately. The expense ratios shown are the total expense ratios of the applicable investment choice and may include investment management fees, administrative charges, and expenses of the underlying vehicle of the investment choice.
READ THE INVESTMENT FACT SHEETS CAREFULLY. Investment choices that invest in mutual funds or collective trusts are subject to the expenses/charges imposed by the underlying investment. Additionally, these types of underlying investments may include 12b-1 fees. In some cases these 12b-1 and other service fees may be paid to Transamerica by the underlying investment vehicles. These fees are paid for activities related to the promotion, administration, marketing, sale, and distribution of the underlying investment vehicles of the investment choices. The fees received by Transamerica are not additional compensation to Transamerica; rather they result in lower overall contract charges for Transamerica’s products. In the event Transamerica receives more 12b-1 and/or other service fees than anticipated, Transamerica will credit such additional amounts to the appropriate separate account as income.
Contract Fees:
The Contract Asset Charge described below, as well as any investment management fees or administrative fees applicable to the investment choices, are charged under the group variable annuity contract (Contract) issued by Transamerica as an investment vehicle for your plan.
Contract Asset Charge
Balance under the Contract (excluding suspense account) / Annual Contract Asset
Charge Percentage
$0 - 99,999 / 2.08%
$100,000 - 249,999 / 1.43%
$250,000 - 499,999 / 1.33%
$500,000 - 749,999 / 1.13%
$750,000 - 999,999 / 1.08%
$1,000,000 - 1,999,999 / 1.03%
$2,000,000 - 2,999,999 / .93%
$3,000,000 - 3,999,999 / .88%
$4,000,000 - 5,999,999 / .73%
$6,000,000 - 7,999,999 / .68%
$8,000,000 - 9,999,999 / .53%
$10,000,000 - 14,999,999 / .48%
$15,000,000 – 19,999,999 / .43%
$20,000,000 – 29,999,999 / .38%
$30,000,000+ / .33%
Discontinuance Charges:
There are no asset-based charges associated with an adopting employer leaving the MEP.
If the stable value investment choice, is active under the contract when an adopting participating employer leaves the MEP, there is a waiting period of up to 270 days for receiving assets. Consult with your plan administrator for additional information on this waiting period. / Under Transamerica’s Contract, the contract asset charge is calculated and deducted each month that the Contract remains in effect.
For the first MEP Deposit year, the contract asset charge is based on the total estimatedamount of first-year contributions and takeover assets of the entire MEP, using the percentagesin the table on the left.
The contract asset charge is based on first-year contributions and takeover assets of each participating employer, using the percentages in the table on the left.
Thereafter, thecontract asset charge is based on actual assetsin the entire contractusing thescalesshown in the table to the left.For any given month,thetotalactualbalanceis used to determine therate of the contract asset charge for thatmonth.
The first MEP deposit year is the 12-month period starting on the date Transamerica receives thefirst deposit for the MEP.Each succeeding deposit year is the 12-month period following in sequence.
MEP-AE-SOCP June 2009 Page 1