great-west smart track i – i 5 year · 2017-04-11 · the smart track ii – 5 year variable...

Advisor Brochure

GREAT-WEST SMART TRACK® II – 5 YEARVariable Annuity

Investment Growth Potential and Lifetime Retirement Income: The Best of Both Worlds

FOR BROKER-DEALER USE ONLY. NOT FOR USE WITH THE PUBLIC.

Value of the Smart Track® II – 5 Year Variable AnnuityThe Smart Track II – 5 Year Variable Annuity (Smart Track II) is a single solution that helps you turn

your clients’ future possibilities into reality. To add value to the financial planning conversations

you have with your clients, communicate the following Smart Track II opportunities.

Flexible Design

• A dual strategy offers the best of both worlds — an investment-focused variable annuity and guaranteed retirement income through a variety of Guaranteed Lifetime Withdrawal Benefits (GLWBs).1

• Assets can be easily moved between the investment and income strategies with no immediate tax consequences. The fee for the guarantee only applies to assets allocated to the Income Strategy.2

• Tax-deferred growth potential is possible through more than 90 investment options — including target date funds and risk-based portfolios.

• Funds offered by well-known and respected money managers.

• Competitive guaranteed income percentages offered with the opportunity to increase income through annual step-ups, age band income resets and additional contributions.

• Your clients receive the same charge for a single or joint living benefit. Plus, they can wait until they start taking income to select a single or joint distribution.3

Investment Strategy

Income Strategy

1 Guarantee is subject to the claims-paying ability of Great-West Life & Annuity Insurance Company or in New York, Great-West Life & Annuity Insurance Company of New York.

2 Unlimited transfers and no fees to move between portfolios. Additional contributions and transfers to the Income Strategy are not allowed once Guaranteed Annual Withdrawals begin but are allowed if the fixed rider option is selected. Transferring money from the Income Strategy to the Investment Strategy may be considered an Excess Withdrawal, which can negatively affect your guaranteed income benefits. Each investment option has its own operating expenses. Money moved from the Investment Strategy to Income Strategy will incur the additional charges associated with the GLWB. Portfolios may impose redemption fees, and/or transfer restrictions, on certain transfers, redemptions or exchanges. For more information, please refer to the portfolio’s prospectus and/or disclosure documents.

3 If joint withdrawals are elected, the joint distribution percentage will be based on the younger person’s age. The applicable withdrawal percentages are disclosed in the Rate Sheet Supplement in effect at the time the contract is purchased.

Tax-advantaged growth potential

Flexibility to choose from 90+top-tier investments

Guaranteed income for life

Potential for increasingretirement income

InvestmentStrategy

IncomeStrategy


1

Product Summary

Standard Contract Provisions

Contract type B-share variable annuity

Withdrawal charges 5 years: 7%, 7%, 6%, 5%, 4%

M&E charge 1.20%

Minimum initial premium $10,000

Minimum additional contributions $500, or $100 if automatic bank draft plan is established

Maximum total contributions $1 million (without prior home office approval)

Maximum age at purchase 80

Annual free withdrawal 10% of total contributions

Death benefit Return the greater of Annuity Account Value or sum of contributions less the impact of withdrawals

Investment Strategy

Investment options More than 90

Portfolio operating expenses Range from 0.46 to 2.15% of assets; average fund expense of 1.02%4,5

Diversification Seven asset categories and more than 20 fund managers

Income Strategy

GLWB options and fees6 Great-West Secure Income Foundation (0.90%)Great-West Secure Income Plus (1.30%)Great-West Secure Income Max (1.20%)

GLWB Covered Funds and portfolio operating expenses4,5,7

Great-West SecureFoundation Balanced Fund (0.88%) Great-West Moderate Profile I Fund Initial (1.10%) Great-West Moderate Conservative Profile I Fund Initial (1.03%) Great-West Conservative Profile I Fund Initial (0.97%) (fee is charged from amount invested in the Covered Fund)

4 Net expenses are shown. The net expense ratio is less applicable fee waivers or expense reimbursements the investment advisor and/or administrator may have agree upon, either voluntary or by contractual agreement; the gross expense ratio is not. Fee waivers and reimbursements may be modified or terminated at any time. Additional information can be found in the fund’s prospectus and/or other disclosure documents regarding effective dates and/or if waivers of reimbursements are voluntary or by contractual agreement. Absent of waivers or reimbursements, the fund’s the fund’s operating expenses would have been higher.

5 As of May 1, 2016

6 Great-West Secure Income Foundation refers to the Fixed GLWB Rider; Great-West Secure Income Plus refers to the Roll-up Fixed GLWB Rider; Great-West Secure Income Max refers to the Enhanced Withdrawal GLWB Fixed Rider in the Smart Track II – 5 Year prospectus. Additional GLWB riders may be available. Please see prospectus for full details.

7 GLWB fee determined by the value of the Benefit Base annually. The fee is deducted quarterly, and it may increase at any time up to a maximum of 1.50% or 2.25% for Great-West Secure Income Plus and Great-West Secure Income Max within 30 days of notice. The Guaranteed Benefit Fee will be assessed as soon as money is transferred into the Great-West SecureFoundation Balanced Fund. The Guarantee Benefit Fee is paid through the sale of units in the Covered Fund, which reduces the annuity account value.


FOR BROKER-DEALER USE ONLY. NOT FOR USE WITH THE PUBLIC.2

10 Benefit Base may be decreased if excess withdrawals are taken or when it is beneficial to lock in a higher GAW if a reset is elected.

11 Subsequent contributions have their own 5-year waiting period.

12 Distribution percentage refers to Guaranteed Annual Withdrawal percentage in the Smart Track II – 5 Year prospectus. Distribution percentage is based on investor’s age at first withdrawal.

13 Income increase opportunities are calculated by Great-West Financial on the contract’s ratchet date and can occur automatically if Max GAW is elected. Otherwise, eligible increases may be elected at any time.

Great-West Secure Income Living Benefits

Advantages of Great-West Secure Income living benefits • The same cost for single or joint distributions

• The ability to choose single or joint distributions when they start taking income

• The potential to increase income during the distribution phase:13

— Annual step-ups: Lock in investment gains on the ratchet date if the Covered Fund Value is greater than the Benefit Base before or during the withdrawal phase.

— Age band income resets: Provides clients the opportunity to increase income when they cross into a new age band when the Covered Fund Value and the distribution percentage based on their current age will provide a higher level of income.

— Additional contributions and transfers to the Income Strategy will increase the Benefit Base dollar for dollar.

Great-West Secure Income Foundation offers guaranteed lifetime retirement income and growth potential at a reasonable cost.

Great-West Secure Income Plus offers guaranteed Benefit Base growth before your clients start distributions through a 5% accumulation credit and lifetime retirement income.10

Great-West Secure Income Max is designed to provide maximum guaranteed lifetime retirement income by offering a 1% credit to your clients’ distribution percentage if they wait five years to start income.11, 12

The Great-West Secure Income suite of

living benefits offers your clients three

innovative retirement income strategies:

• Great-West Secure Income Foundation

• Great-West Secure Income Plus

• Great-West Secure Income Max

FOR BROKER-DEALER USE ONLY. NOT FOR USE WITH THE PUBLIC. 3

Choose a living benefit that meets the needs of your clientsEach of the Great-West Secure Income living benefits focuses on a specific objective, so you

can find the right fit for your clients.

GREAT-WEST SECURE INCOME FOUNDATION

GREAT-WEST SECURE INCOME PLUS

GREAT-WEST SECURE INCOME MAX

Objective Low cost, high Income

Guaranteed growth, guaranteed income

Maximum income

Guaranteed lifetime income 3 3 3

Single or joint withdrawal 3 3 3

Wait to choose single or joint 3 3 3

Annual step-up 3 3 3

Age band income reset 3 3 3

Add $ after distribution phase begins 3 3 3

Guaranteed Accumulation Credit 3

Enhanced Distribution Credit 3

Guaranteed Annual WithdrawalsGreat-West Secure Income FoundationGreat-West Secure Income PlusGreat-West Secure Income Max

Great-West Secure Income Max (With 1% Distribution Credit — defer income for 5 years to receive a higher distribution rate)

AGESINGLE

DISTRIBUTION RATES

JOINT DISTRIBUTION

RATES

59½ 4.0% 3.5%

65 5.0% 4.5%

70 6.0% 5.5%

80 7.0% 6.5%

AGESINGLE

DISTRIBUTION RATES

JOINT DISTRIBUTION

RATES

59½ 5.0% 4.5%

65 6.0% 5.5%

70 7.0% 6.5%

80 8.0% 7.5%

FOR BROKER-DEALER USE ONLY. NOT FOR USE WITH THE PUBLIC.4

Investment portfolios by asset categoryThe Great-West Smart Track® II – 5 Year variable annuity offers over 90 portfolios from among some

of the leading portfolio managers. The portfolios are spread across seven asset categories, so your

planning can include a wide variety of investment combinations that allow you to shift focus as

needed to match your stage of life.

Investment Strategy Large-Cap Gross/Net Exp. Ratio*

American Century VP Value II 1.12/0.94

Dreyfus VIF Appreciation Svc 1.05/1.05

Deutsche Capital Growth VIP B 0.76/0.76

Goldman Sachs VIT US Eq Insights Svc 0.96/0.86

Great-West Multi-Manager Lg Cp Gr Init 1.00/1.00

Great-West Putnam Equity Income Initial 1.10/1.10

Great-West S&P 500® Index Fund Initial 0.60/0.60

Great-West Stock Index Fund Initial 0.60/0.60

Invesco VI Growth and Income Series II 1.10/1.04

MFS VIT II Blended Rsrch Core Eq Svc 0.85/0.70

Neuberger Berman AMT Socially Resp Ptf S 1.23/1.17

Putnam VT Growth & Income IB 0.83/0.83

Putnam VT Growth Opportunities IB 1.16/1.07

Putnam VT Investors IB 0.94/0.94

Putnam VT Research IB 1.06/1.06

Putnam VT Voyager IB 0.93/0.93

T. Rowe Price Blue Chip Growth Port II 1.10/1.10

Mid-Cap Gross/Net Exp. Ratio*

American Century Invest VP Mid Cp Val II 1.16/1.04

Great-West Ariel Mid Cap Value Fund Initial 1.07/1.06

Great-West S&P Mid Cap 400® Index Fund Init 0.60/0.60

Great-West Goldman Sachs Mid Cap Val Init 1.25/1.25

Great-West T Rowe Price MidCap Gr Fund Init 1.03/1.03

Janus Aspen Enterprise Svc 0.99/0.99

J.P. Morgan Insurance Tr Intrepid MidCap 2 1.30/1.17

Small-Cap Gross/Net Exp. Ratio*

ClearBridge Variable Small Cap Growth II 1.07/1.07

Delaware VIP Sm Cap Val Series Svc Class 1.10/1.05

Deutsche Global Small Cap VIP B 1.41/1.36

Great-West Loomis Sayles SmCap Val Fund Init 1.11/1.11

Great-West Multi-Manager Sm Cp Gr Init 1.25/1.25

Great-West S&P SmallCap 600® Index Fund Init 0.60/0.60

Great-West Invesco Small Cap Value Initial 1.40/1.40

Invesco VI Small Cap Equity II 1.29/1.29

Lord Abbett Series Developing Growth VC 1.56/0.90

Oppenheimer Main Street Small Cap VA Svc 0.80/0.80

Putnam VT Capital Opportunities IB 1.14/1.14

Putnam VT Small Cap Value IB 1.27/1.27

International Gross/Net Exp. Ratio*

American Funds IS® New World 4 1.04/1.04

American Funds IS International 4 1.04/1.04

Delaware VIP Emerging Markets Svc Class 1.67/1.62

Delaware VIP Intl Value Equity Ser Svc 1.37/1.32

Great-West International Index Fund Initial 0.70/0.70

Great-West MFS Intl Growth Fund Initial 1.20/1.20

Great-West MFS Intl Value Initial 1.10/1.10

Invesco VI Global Real Estate II 1.35/1.35

Invesco VI International Growth II 1.27/1.26

Putnam VT Global Equity IB 1.11/1.11

Putnam VT International Equity IB 1.09/1.09

Putnam VT International Growth IB 1.54/1.45

Putnam VT International Value IB 1.13/1.13

Bond/Cash Alternatives Gross/Net Exp. Ratio*

American Century Invest VP Infl Prot II 0.72/0.72

BlackRock High Yield V.I. III 1.07/0.95

Eaton Vance VT Floating-Rate Income Init 1.16/1.16

Goldman Sachs VIT Strategic Income Adv 2.02/1.27

Great-West Bond Index Fund Initial 0.50/0.50

Great-West Federated Bond Fund Initial 0.70/0.70

Great-West Money Market Fund Initial 0.46/0.46

Great-West Loomis Sayles Bond Fund Initial 0.90/0.90

Great-West Putnam High Yield Bond Fund Init 1.10/1.10

Great-West Short Duration Bond Fund Initial 0.60/0.60

Great-West Templeton Global Bond Fund Init 1.30/1.30

Great-West US Govt Mortgage Secur Fund Init 0.60/0.60

Janus Aspen Series Flexible Bond Svc 0.88/0.87

Loomis Sayles Bond Fund Initial 0.90/0.90

PIMCO VIT Long-Term US Govt Adv 0.75/0.73

PIMCO VIT Low Duration Adv 0.76/0.76

PIMCO VIT Real Return Adv 0.88/0.88

PIMCO VIT Short-Term Adv 0.71/0.70

PIMCO VIT Total Return Adv 0.76/0.76

Putnam VT American Government Inc IB 0.87/0.87

Putnam VT Income IB 0.81/0.81

Specialty Gross/Net Exp. Ratio*

ALPS/Alerian Energy Infrastructure III 1.42/1.30

ALPS Red Rocks Listed Private Equity III 6.47/1.97

Delaware VIP REIT Series Svc Class 1.15/1.10

Dreyfus IP Technology Growth Svc 1.08/1.08

Goldman Sachs VIT Multi-Strat Alts Adv 3.51/0.62

Great-West Real Estate Index Initial 0.70/0.70

Ivy Funds VIP Energy 1.18/1.18

MFS VIT II Technology Svc 1.19/1.19

PIMCO VIT Commodity Real Ret Strat Adv 1.27/1.16

T. Rowe Price Health Sciences Port II 1.20/1.20

Van Eck VIP Trust Global Hard Assets S 1.31/1.31

Asset Allocation Gross/Net Exp. Ratio*

BlackRock Global Allocation V.I. III 1.12/0.99

Franklin Income VIP 4 0.81/0.81

Great-West Aggressive Profile I Fund Initial 1.32/1.32

Great-West Mod Aggr Profile I Fund Initial 1.22/1.19

Great-West Moderate Profile I Fund Initial 1.16/1.10

Great-West Mod Conserv Profile I Fund Initial 1.10/1.02

Great-West Conserv Profile I Fund Initial 1.06/0.98

Great-West Lifetime 2015 Fund T 0.90/0.88



A trusted providerAt Great-West Financial®, we partner with investment professionals nationwide — and their clients — to help create the best path forward, with innovative strategies, solutions and services for investment, insurance and retirement.

We have a history of unwavering performance, even in challenging economic climates. In fact, the opinions of respected rating agencies validate the financial strength of our companies and our abilities to meet ongoing obligations to policyholders.

AA AA Standard & Poor’s Ratings Services Financial strength: Very strong (second highest of nine categories)

Aa3 Aa3 Moody’s Investors ServiceFinancial strength: Excellent (second highest of nine categories)

AA AA Fitch RatingsFinancial strength: Very strong (second highest of nine categories)

A+ A+ A.M. Best Company, Inc.Financial strength: Superior (highest of 10 categories)

* These are current ratings for our primary insurance companies: Great-West Life & Annuity Insurance Company and Great-West Life & Annuity Insurance Company of New York. These ratings are subject to change. These ratings do not pertain to the investment performance of the underlying fund, other insurance affiliates or subsidiaries, or noninsurance affiliates or subsidiaries of the company.

5FOR BROKER-DEALER USE ONLY. NOT FOR USE WITH THE PUBLIC.

Investment portfolios by asset categoryThe Great-West Smart Track® II – 5 Year variable annuity offers over 90 portfolios from among some

of the leading portfolio managers. The portfolios are spread across seven asset categories, so your

planning can include a wide variety of investment combinations that allow you to shift focus as

needed to match your stage of life.







Janus Aspen Series Balanced Svc 0.89/0.89

Putnam VT Absolute Return 500 IB 1.61/1.17

Putnam VT Global Asset Allocation IB 1.12/1.12

Income Strategy Gross/Net Exp. Ratio*

Great-West SecureFoundation® Balanced L 0.91/0.88

Great-West Moderate Profile I Fund Initial 1.16/1.10

Great-West Mod Conserv Profile I Fund Initial 1.10/1.02

Great-West Conserv Profile I Fund Initial 1.06/0.98

* The net expense ratio is less applicable fee waivers or expense reimbursements the investment advisor and/or administrator may have agreed upon, either voluntary or by contractual agreement; the gross expense ratio is not. Fee waivers and reimbursements may be modified or terminated at any time. Additional information can be found in the Fund's prospectus and/or other disclosure documents regarding effective dates and/or if waivers of reimbursements are voluntary or by contractual agreement.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

While some of the funds offered through variable annuities have similar names and investment objectives and/or may be modeled after publicly traded mutual funds, they are different from the publicly traded funds.

S&P 500®, S&P MidCap 400® and S&P Small Cap 600® are registered trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by Great-West Life & Annuity Insurance Company. The fund(s) are not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of investing in the Fund.

Financial ratings*GWLA of NY

GWLA


Unless otherwise noted: NOT FDIC, NCUA/NCUSIF INSURED | NOT A DEPOSIT | NOT GUARANTEED BY ANY BANK OR CREDIT UNION | NOTINSURED BY ANY FEDERAL GOVERNMENT AGENCY | FUNDS MAY LOSE VALUE | NOT A CONDITION OF ANY BANKING OR CREDIT UNION ACTIVITY

GWFS Equities, Inc., or one or more of its affiliates, may receive a fee from the investment option provider for providing certain recordkeeping, distribution and administrative services.

The principal underwriter is GWFS Equities, Inc., Member FINRA/SIPC and wholly owned subsidiary of Great-West Life & Annuity Insurance Company.

The principal underwriter of Great-West Funds, Inc. is its affiliate GWFS Equities, Inc., Member FINRA/SIPC. Great-West Capital Management, LLC (GWCM) is the investment adviser. The Great-West Profile Funds are managed by Great-West Capital Management, LLC (GWCM) and may invest in other funds advised by GWCM, funds that are sub-advised by affiliated and unaffiliated sub-advisers retained by GWCM, funds that are advised by affiliated and unaffiliated investment advisers of GWCM, and in a fixed interest contract issued and guaranteed by Great-West Life & Annuity Insurance Company (GWL&A). Great-West Funds, Inc. and GWCM are subsidiaries of GWL&A.

Variable annuities are long-term investments and may not be suitable for all investors. Any withdrawals of earnings prior to age 59½ may be subject to income tax and a 10% penalty. A withdrawal charge may also apply. An investment in variable life insurance or variable annuity is subject to fluctuating values of the underlying investment options, and it entails risk, including the possible loss of principal.

Great-West Financial® refers to products and services provided by Great-West Life & Annuity Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York (GWL&A of NY), Home Office: NY, NY; and their subsidiaries and affiliates. The trademarks, logos, service marks and design elements used are owned by GWL&A.

Interstate Compact contract form numbers ICC15-J888 Series (Individual Flexible Premium Variable Annuity), ICC15-J888-FX, ICC15-J888-FLT, ICC15-J888-ER, ICC15-GLWB-RU (Guaranteed Lifetime Withdrawal Benefit Riders) are issued by GWL&A. GWL&A is not licensed to do business in New York. In New York, contract form numbers J888-NY (Individual Flexible Premium Variable Annuities), GLWBny, J888NY-FLT, J888NY-FX, GLWBNY-RU, J888NY-ER (Guaranteed Lifetime Withdrawal Benefit Riders) are issued by GWL&A of NY. Contracts may not be available in all states. Any guarantees are based on the claims-paying ability of the issuing insurance company.

©2016 Great-West Life & Annuity Insurance Company. All rights reserved.

[Advisor Brochure] B1010AB (7/2016) PT270155

The Great-West Smart Track® II – 5 Year Variable Annuity is sold by prospectus only. The investment return and principal value of the underlying investment portfolios of a variable annuity will fluctuate so that an investor’s units, when redeemed, may be worth more or less than their original cost. Before purchasing an annuity, investors should carefully consider the investment options’ objectives and all the risks, charges and expenses associated with the annuity and its investment portfolios. For this and other important information, please call 877-723-8723 to request an annuity prospectus or view the prospectus for the annuity or its underlying funds online. Please read prospectuses carefully before investing or sending money.

great-west smart track i – i 5 year · 2017-04-11 · the smart track ii – 5 year variable...

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