A Variable Deferred Income Annuitybettytodd.com/wp-content/uploads/2013/10/MetLife-PPBS-Particptant.pdf · 100% of your current income in retirement. Yet, Social Security only provides

MetLife Personal Pension Builder SelectSM

A Variable Deferred Income Annuity

Table of Contents

Understand the Challenges Ahead 2

Complete Your Retirement Strategy 7

Getting Started 10

Choosing Your Investments 12

Income Payments and Options 16

Frequently Asked Questions 19

Assuring yourself of a comfortablefuture is your reward for havingworked hard — you deserve to retire without worry. Saving in yourcompany’s 401(k) plan is a greatstart towards a worry-free retirement.However, simply participating inyour company’s 401(k) alone maynot provide enough to secure theretirement of your dreams.

MetLife delivers the extra coverageyour retirement savings might bemissing. A companion to otherretirement programs, MetLife

Retirement Savings/401(k)

MetLife PersonalPension Builder Select

Pension

Social Security

25% 30%

10%35%

enjoy today. tomorrow is covered.Personal Pension Builder Select provides a steady stream of incomethat begins when you want — usually in retirement. Your incomelasts for as long as you live. Here’show it works:

1. Buy future income through theconvenience of payroll deduction.

2. Invest your contributions to suityour goals. Your future incomegrows tax-deferred.

3. Retire with a dependable streamof lifetime income — and thepotential for further growth.

1

Guaranteed Income Plus Growth PotentialYou may need as much as

100% of your current incomein retirement. Yet, Social

Security only provides about30% of your retirement

income. MetLife PersonalPension Builder Select can

be used to complementother sources of income.

Sources: The 2003 Annual Report of the Board of Trustees of the Federal Old-Age andSurvivors Insurance and Disability Insurance (OASDI), March 17, 2003. The Social SecurityAdministration, February 2004.

2

clearly did not generate adequateretirement income.

For today’s workers, the need toactively plan for income in retire-ment is becoming even more critical.

� The future of Social Security isbecoming increasingly questionableas baby-boomers near retirement.

� Companies are moving away fromtraditional pension plans, and indi-viduals have to provide their ownincome in retirement.

understand the challenges ahead.

0%

10%

20%

30%

40%

50%

60%

Employer-Funded Plan

Social SecurityEmploymentIncome

Personal Savings

� Percentage You Will Actually Have

� Percentage You Will Actually Need

� Percentage You Expected

Gap between Expected and Actual

How Realistic Is Your Plan?

I’m already saving for myfuture. Won’t my savingsprovide enough incometo cover my needs?

Probably not. In 2000, the averageincome of a retired 65-year-oldAmerican was only $21,000 — 75% of which came from SocialSecurity and a defined benefit plan.1

401(k)s, IRAs and other personalsavings, which were expected toprovide more financial support,

1Source: Employee Benefits Research Institute(EBRI) 2001. Source: Employee Benefits Research Institute (EBRI) 2000 Retirement Confidence Survey.

While many retirees expectedpersonal savings to provide over

half their retirement income,in reality it wasn’t enough.

Fortunately, they could turn toother sources… but that may

not be an option in your future.

3

That’s why it is so important to contribute as much as you can toyour company 401(k) plan, convertthat amount into income, and tosupplement those savings with otherretirement programs such as MetLifePersonal Pension Builder Select.

I know people are livinglonger than ever before. I don’t want to outlive my income. Realistically, how many years should I plan for?

Underestimating how long your income should last is one of thebiggest threats you face in retirement.Historically, the average retiree spentless than 15 years in retirement.

MALE — AGE 65 85 92 100

88 94 100

92 97 100

25%chance of

living beyond

FEMALE — AGE 65

COUPLE — BOTH AGE 65

50%chance of

living beyond

25%chance of

living beyond

50%chance of

living beyond

25%chance of

living beyond

50%chance of

living beyond

How Long Is Retirement?

Source: Society of Actuaries 2000 Mortality Table.

Now, you can expect to live 20 yearsor longer in retirement. To put thatin dollars and cents, $250,000 willprovide $17,500 a year for 20 yearsbefore it is all gone. If you are frugaland limit your annual income to$14,000, you could stretch it to 30years.2 But why should you makesacrifices when MetLife PersonalPension Builder Select can deliverthe income you need when you are85, 90, even 100?

Longer lifespans mean thatyour retirement assets mustlast longer than ever before.

2Assumes a hypothetical 7% after-tax returnand 3% inflation rate.

� Annual Expenditure

Age

Percentage of Annual Income

0%

5%

10%

15%

20%

25%

Under 65 65+ 75+

Will Medical Costs Be Covered?

I understand that healthcarewill be one of my largestexpenses in retirement, buthow much will it cost?

The cost of healthcare can be higherthan anticipated, and this is especiallytrue during retirement. Healthcare isone of the largest expenditures duringretirement, and it can consume fivetimes more than most people estimate.3

4

According to a 2002 study, a 65-year-old couple without an employer-funded healthcare plan will need$160,000 in savings to supplementMedicare and cover out-of-pocketexpenses in retirement.4 And thisdoesn’t include possible long-termcare expenses.

You can use MetLife PersonalPension Builder Select’s steadystream of income to pay for healthinsurance premiums and cover out-of-pocket expenses.

Source: Consumer Expenditure Survey, U.S. Census Bureau, 2001.

3”Retiree Health Costs Are Far Higher ThanExpected,” The Wall Street Journal, May 13,2004 (Employee Benefits Research Institute).

4Fidelity Workplace Services, September2002 Health and Welfare Report.

Rapid increases in the costof healthcare mean you’ll

need to allocate more of yoursavings to fund medical costs.

2.3% between 1995 and 2003.Historically, however, it has beenhigher. During the 25-year periodbetween 1979 and 2003, inflation averaged 4.1%5.

You can use MetLife PersonalPension Builder Select to provideprotection against inflation — the variable income option providesincome with growth potential.

Item 1980 2003 Projected Costin 2026

Postage Stamp $0.15 $0.37 $0.91

Ice Cream $1.76 $3.75 $7.99

Eggs $0.88 $1.18 $1.58

New Home $98,000 $213,700 $465,522

Will Your Savings Keep Pace with Inflation?

5

Speaking of expenses, won’tthe things I buy today costmore in the future?

Inflation will have a significant impacton the future purchasing power ofyour retirement income. As theprices of goods and services increaseover time, the potential of yourincome to cover expenses erodes. In recent years, the cost of living has grown at a relatively low rate —

5Consumer Price Index.Source: Consumer Expenditure Survey, U.S. Census Bureau, 2001.

As the prices of goods andservices rise, will your savingsexperience the growthyou need to protect yourpurchasing power?

7

complete your retirement strategy.How does Personal PensionBuilder Select fit into my retirement strategy?

MetLife Personal Pension BuilderSelect is designed to work in conjunc-tion with existing retirement strategies— supplementing Social Security,pension plans, your 401(k) plan and savings.

How does Personal PensionBuilder Select work?

Personal Pension Builder Select operates in two phases that parallelthe phases of your life — theAccumulation phase occurs whileyou are working and saving; the

Payout phase occurs in retirementwhile you are receiving income.

� Accumulation — During yourearning years, you set aside moneyvia payroll deduction and chooseyour investment options. Howmuch you decide to invest, andhow you invest it, will dependupon your goals and financial circumstances. Each deductionpurchases a stream of incomepayable in the future.

� Payout — At retirement, you canstart receiving a stream of incomethat can be tailored to last as longas you live. You will simply need toselect the type of income and pay-ment schedule that is best for you.

Accumulation PhaseWhile Working

Payout PhaseWhile Retired

IncomePaymentsfor Life

Retirement

Accumulate Now for Income LaterWith MetLife Personal

Pension Builder Select, everyinvestment you make today

buys income for your future.

8

How does Personal PensionBuilder Select compare toother retirement programs?

In designing Personal Pension BuilderSelect, MetLife included powerfulfeatures and benefits to complementother programs and round out youroverall retirement strategy.

• Conveniently invest through payroll deduction.

• Create a future income strategy by investingas you see fit, with the flexibility to makechanges as your circumstances change.

• Benefit from the advantages of tax-deferredgrowth.

• Take your retirement income with you whenyou change jobs.

• Provide income for a spouse.

• Receive a steady stream of income for aslong as you live.

• Contribute pre-tax money.

Like Social Securityor a defined benefitpension plan, withPersonal PensionBuilder Select you can:

Like IRAs, PersonalPension Builder Selectallows you to:

Like your 401(k) plan,Personal PensionBuilder Selectallows you to:

PersonalPensionBuilderSelect

401(k) IRA DefinedBenefit Plan

SocialSecurity

How Personal Pension Builder Select Compares

9

You can contribute pre-tax money � � �

You can contribute as much �after-tax money as you wish

Employer match perhaps � �

Grows tax-deferred � � �

You can invest as you see fit � � �

Account is portable � �6 � �

You know what you’ll � � �get when you retire

Receive regular income payments � � �for as long as you live

Provide income for a spouse � � �

Death benefit � � � perhaps

6Vested amounts only.

10

How do I know if PersonalPension Builder Select is right for me?

Anyone who wants to build a stream of income for their retirement yearsshould consider MetLife PersonalPension Builder Select. This program isa particularly good choice if you are:

� A high-income earner who hasmaximized the allowable contri-butions to your 401(k) but wantto save more

� A low risk investor who prefers afixed-income option that deliverspredictable income in retirement

� A person who wishes to supplement401(k) savings but needs the disci-pline of an established program

� An individual looking for retire-ment income with growth potential

� Nearing retirement age but haveconcerns about having enoughretirement income

� An employee who has switchedjobs and needs to roll over retire-ment assets from a previousemployer’s 401(k)

� An individual who does not wantthe trouble of structuring a with-drawal program on his own

How do I figure out whatstrategy is best for me?

Deciding how much income youneed to have in your retirement yearswill depend upon a number of factors:

� What will your expenses be inretirement?

� How much income will you needto live in retirement?

� When do you want to startreceiving income?

� How much retirement incomedo you want to receive?

� How do you prefer to invest?

Our interactive website makes it easyfor you to model various scenarios to determine how much to set asideduring your working years to reachyour goals. Simply visit us atwww.metlife.com/mybenefits

How much can I contribute?

With MetLife Personal PensionBuilder Select, the minimuminvestment is:

� $50 per month for automaticpayroll deductions, or

� $1,000 for additional lump sumcontributions, via check

getting started.

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12

How is my money allocated?

With Personal Pension Builder Select,how you invest your contributions isup to you. MetLife offers a compre-hensive range of investments to meetyour objectives. But first, you willneed to determine the strategy that is best for you. Each offers distinctadvantages and may be combined tocreate a personal investment strategythat suits your goals and risk tolerance.You can choose from a fixed-incomeoption, a variable income optionor you can combine strategies fora customized solution.

Why would someone choosethe fixed-income option?

This is a good choice for individualswho need a predictable stream ofincome to cover expenses or areuncomfortable with market risk.

choosing your investments.Investing solely in the fixed-incomeoption will provide a stable stream of income that is guaranteed to staythe same, payment after payment. In fact, it is particularly helpful ifyou wish to target a specific incomeamount. For example, if you wish toreceive $1,000 a month for life, youcan use our website or call a retire-ment specialist to calculate the dollaramount you would need to contributeat the current purchase rate to buyyour specified future income.

The fixed-income option should notbe confused with a savings accountor a certificate of deposit where yourmoney earns a fixed rate of return.Every time you make a contribution,you are buying a specific amount offuture income based on the incomepurchase rate in effect at the time ofyour contribution.

13

What is the benefit of investing in the variableincome option?

The variable option gives you incomethat has the ability to outpace infla-tion and grow with market returns. It provides a range of investmentsacross all market sectors. Conservativeinvestors can seek a moderate levelof growth, without undue risk.Aggressive investors can diversifyby investing in specific sectors orfocus on small company stocks.

As with stocks and bonds, yourreturn is not guaranteed. Thus,income payment amounts willfluctuate based on the performanceof your underlying investments.

To assist in calculating how muchincome you’ll receive from these

investments, you will select a bench-mark return, known as the AssumedInvestment Return (AIR). Thisbenchmark serves as the target returnthat your investments must meet toprovide the projected income. Select-ing a high AIR means that your initialpayment will be higher than if youselected a lower AIR. However,because the actual performance ofyour underlying investments willsometimes be greater and sometimesless than your selected AIR, subse-quent payments will vary. Wheninvestment returns exceed your AIR,payments will go up; when yourinvestments return less your paymentgoes down. For further details onthe AIR, please see page 21.

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Would it be prudent toinvest in both the fixed andvariable income options?

Mixing and matching strategiesallows you to completely customizeyour income to your goals, risktolerance and investment preferences.Plus, Personal Pension Builder Selectoffers unlimited transfers.7 By com-bining strategies, you can providedownside protection (fixed-incomeoption) while seeking to outpaceinflation and pursue opportunitiesfor growth (variable income option).

For example,

� You can purchase income throughthe fixed-income option to provide an element of security by targetingan income floor — a minimumamount of income that would beguaranteed for life. The amountcould be just enough to cover basicexpenses, or even less if you canrely on other resources like SocialSecurity. If you are more riskadverse, you could consider allocat-ing a larger portion of your incometo the fixed-income option.

45+ Age 65 85+

Fixed-Income OptionGuaranteed Income Floor

Variable Income OptionIncome Growth Potential

Accumulation PhaseWhile Working

Payout PhaseWhile Retired

Retirement

A Personalized Approach to Generating Income

7Restrictions may apply. See prospectusfor details.

With Personal Pension BuilderSelect, you can invest however

you prefer to meet yourincome needs in retirement.

15

� Then, to pursue opportunities for growth, you can allocate theremainder of your contributionsto purchase income from the vari-able investment options, accordingto your tolerance for risk, yourtime horizon and your goals.

What types of investmentsare available to me?

All contributions in the fixed-incomeoption are guaranteed. The variableincome option features a wide range

of investments, so you can create theoptimal portfolio for your needs andpreferences.

� More than 40 brand-name funds— managed by some of the best-known investment professionals in the field.

� Five index portfolios — managedby the investment team at MetLifeto mirror the returns of establishedinvestment benchmarks.

Where can I get moreinformation on myinvestment choices?

Important investment information isenclosed. You may also visit our web-site www.metlife.com/mybenefitsfor comprehensive information,including specific objectives, invest-ment strategy, portfolio manager’squalifications, portfolio holdings,and historical performance.

16

income payments and options.How do I know how much income I’ll receivewhen I retire?

You will receive periodic statementsthat track your investments and proj-ect future income payments. Thisprojection assumes you’ll receive life-time income that begins at the incomestart age you selected when you en-rolled. It will show you how muchguaranteed income you will receivefrom the fixed-income option andhow much you are projected to receivefrom your variable income option.Your projected income is subject tochange, depending upon the returnon your variable investments, whenyou begin receiving payments, and theincome payment option you select.

When do I start receivingincome payments?

When you begin the program, youwill select an income start age. Youcan change this age at any time up toage 85, or until you begin receivingincome. Shortly before you are sched-uled to start receiving payments, youwill be asked to select an income pay-ment option type. Keep in mind thatthe amount of income you receivemay be different if you adjust yourincome start age. If, for example, youhad anticipated taking income at age70, but decide you need to start at age65, your income payments will be lower.Conversely, should you decide to takeincome payments later than originallyplanned, your payments will be higher.

17

Income Payment Option Hypothetical Monthly Payment

Lifetime Income for You $615

Lifetime Income for You with 10-Year guarantee Period $590

Lifetime Income for Two $500

Lifetime Income for Two with 10-Year guarantee Period $495

What income paymentoptions do you offer?

MetLife offers a choice of incometypes to fit your needs and goals.

� Lifetime Income for You providesincome payments for as long asyou live. Payments cease upon your death. The amount of eachpayment may vary based oninvestment performance.

� Lifetime Income for Two providespayments to you and another per-son for as long as either of you isalive. You can elect to continuepayments at the same level, or

have them reduced by specifiedpercentages after one of you passesaway. Payments cease upon thedeath of the last survivor. Theamount of each payment may varybased on investment performance.

� Guarantee Periods are available forboth of these options. This allowsyou to choose a guarantee period,between five and 30 years, thatcontinues payments to a beneficiaryshould you (or both of you) dieduring the period selected. Shouldyou live beyond that period, pay-ments will continue for the restof your life.8

Does the type of incomeI choose affect how muchmoney I’ll receive?

Yes. If you choose Income for Two,(providing payments to another person), the income level will belower. Likewise, if you choose a guarantee period, your payments will be reduced.8

This illustration is for hypothetical use only. Not intended to represent the actual income from MetLife Personal Pension Builder Select.

8Under certain circumstances the maximum guarantee period available to you may be limited by IRS regulations.

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frequently asked questions.How do I enroll?

We offer a variety of ways to getstarted. Before you do anything,however, we encourage you to readthe prospectus and visit our websiteto evaluate your options. Then,

� If you need personal assistance, you may call a retirement specialistat 1-800-438-6477 who will guideyou through the decisions you willneed to make.

� If you prefer to do it yourself, youmay complete an enrollment form.You can access an application onlineat www.metlife.com/mybenefits.

What decisions will I have to make when I sign up for Personal Pension Builder Select?

There are a few choices you will needto make immediately, however, youwill have an opportunity to makechanges at a later date.

1. Determine how much you wantto contribute. You may adjust thisamount at any time.

2. Decide how much you want toallocate to the fixed-incomeoption and the variable incomeoption. You may adjust yourelections at any time.

3. If you are investing in the variableincome option, select the specificfunds you’d like to invest in.

4. Elect your Assumed InvestmentReturn (AIR), which may beadjusted once, at your incomepayment start age. (Please seepage 21 for more information.)

20

5. Select your income start age. Thisis just for income projection pur-poses; you can change the incomestart age up until when you actu-ally begin receiving payments.

6. Submit your application.

I need to roll over my 401(k)assets from my previous job.Can I contribute these savings?

Yes. You may roll over 401(k) assetsfrom a prior employer’s plan andmaintain their tax-advantaged status.As with your 401(k) plan or an IRA,your savings will continue to growtax-deferred. Taxes are only paidwhen income is received in retire-ment. Since it is not a good idea to co-mingle pre-tax and after-taxmoney in the same account, youshould open a separate contract for any rollover money.

If I change jobs can I stillsave through PersonalPension Builder Select?

Yes. You may continue contributingto your Personal Pension BuilderSelect accounts via Electronic FundsTransfer or by sending a check.

Once I’ve started, can I makechanges if I find I’m not ontrack to meet my goals?

Your statements will keep you up-to-date on your progress. If youdetermine that you are not on trackto meet your future income goals,you may do a couple of things:

� You can increase your contribu-tions either by investing a lumpsum or by raising your monthlycontributions.

� You can adjust your portfolio tobe more aggressive.

� You can postpone your targetedincome start age to a later date,allowing you to accumulate more income.

You can use the interactive calculatorat www.metlife.com/mybenefitsto assist you in determining whichadjustments would be most effective.

In the event I need it, can I access my money?

During the accumulation phase,withdrawals are not permitted.However, once payments begin,MetLife Personal Pension BuilderSelect allows full or partial with-drawals on a one-time basis if madeduring the first 60 days after pay-ments begin, free of charge. Anywithdrawals will reduce futureincome payments proportionally.Withdrawals from the variableaccount will be based on the marketvalue of your assets. Any withdrawalsof tax-qualified funds prior to age 591⁄2 may be subject to an additional10% tax penalty.

21

What if I decide this is nolonger for me? May I stopcontributing?

You may stop your contributions atany time. If you choose to leave yourmoney invested, you may continueto monitor your investment allocationand make adjustments as necessary.Your statement will show you howmuch you can expect to receive atyour income start age.

What is the earnings rate onthe fixed-income option?

There is no set earnings rate on thefixed-income option. Each contribu-tion you make to the fixed-incomeoption purchases a fixed amount ofguaranteed income for life.

I understand that the returnon variable investmentsvaries. How does this affectfuture income?

Because the return on investmentsin the variable account will fluctuate,your income payments will also vary.

When you first allocate money tovariable investments, you will beasked to select an Assumed InvestmentReturn (AIR). It can range from 3%to 6% and should be based, as bestyou can, on anticipated investmentperformance. During your accumula-tion years, we use this assumed rateof return to project future incomepayments. This way you’ll have apretty good idea how well your retire-ment strategy is working for you.

When you are ready to start receivingincome payments, you will have anopportunity make a final AIR election.Chances are good that you will needto adjust your AIR to accommodatea change in investment strategy. Forexample, if you invested aggressivelyduring your working years but nowwant to protect your savings duringretirement, you may decide to reallo-cate to more conservative investments.In that case, you may want to adjustyour AIR downward to reflect thelower earnings potential of yourinvestments.

The AIR is a crucial component incalculating income payments, so itis very important to carefully selecta realistic benchmark. That’s becauseyour actual payments will vary basedon your investment return and howit compares to your AIR. When yourinvestments perform better thanyour selected AIR, your paymentswill increase. When investmentsunderperform, payments willgo down.

If you select a high AIR, you canexpect your initial income paymentto also be higher. However, goingforward, it may be more difficultfor investments to outperform ahigh benchmark.

If you select a lower AIR, yourinitial income payment will also belower. However, it might be easierfor your investments to performbetter than this benchmark.

22

Do I need to stay in touchwith my employer to receivemy income?

No. MetLife Personal Pension BuilderSelect is entirely portable. Whileyour employer has had the foresightto offer this valuable benefit, you willcommunicate directly with MetLife.

What if I want to delay myincome payments? How longcan I put if off?

If you have rolled over tax-qualifiedmoney — say from a prior 401(k)plan — you must begin receivingpayments by age 701⁄2. Otherwise,income payments must commenceby age 85.

When and how often areincome payments made?

You may choose to receive yourincome payments monthly, quarterly,semi-annually or annually. In addi-tion, you may select the day of themonth on which your payments will be made.

Can I change my income payment option after I startreceiving income?

No. Once you make your final deci-sion and start receiving payments,you may not make changes to thetype of income you receive.

How are my payments taxed?

Income payments will be taxed atordinary income tax rates when actu-ally paid to you. For payments madefrom after-tax contributions, only aportion of each income payment isconsidered taxable. In addition, ifpayments are made from qualified(pre-tax) money and you are underage 591⁄2 when you receive theincome, a 10% tax penalty mayapply. Taxes can be complicated andwill vary by individual. As a result,you should consult a tax expert todiscuss your particular situation.

What happens if I die beforeI begin receiving payments?

In the event that you die before youbegin receiving income payments,your beneficiary will receive:

� All contributions, accumulated at the guaranteed rate of 3% from your fixed-income option

� The market value of any amountsheld in the variable income option

What if I die after I’vealready begun receiving payments?

In the event that you die after youbegin receiving payments, your beneficiary may continue receivingpayments depending on the incomepayment option you selected.

What are the fees?

There is an annual Separate AccountCharge that will apply only to theinvestments in the variable incomeoption and will remain constantthroughout both the accumulationand payout phases.

In addition, since Personal PensionBuilder Select is being offered byyour employer, you enjoy reduced pricing that might not be available if you were investing on your own.

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A lifetime is longer than you realizeand supplementing existing retire-ment income strategies is moreimportant than ever. With MetLifePersonal Pension Builder Select,ensuring a comfortable retirementis easier than you think.

� You can contribute as much as you want

� Automatic payroll deductionmakes it easy to keep to a disciplined savings plan

� You can target a specific amountof future income

� You can earn market returns whileensuring an income floor

� You can fully diversify among anyof the 42 investment options tomeet your objectives

� Our menu of investment choicesincludes leading money managers

ensuring a comfortable retirement is easy.� Periodic statements ensure that

you always know where you stand

� You can choose from a variety of payment options to suit yourincome needs

� You can provide for a spouse, or a designated beneficiary, who may need income in the event of your death

� Payments will last as long as you live

We encourage you to evaluate yourretirement strategy and consider how MetLife Personal PensionBuilder Select can help you realizeyour dreams. If you have additional questions or wish to enroll, please call one of our retirement specialistsat 1-800-438-6477 8:00 AM to 6:00 PM ET (Monday throughFriday) or visit us online atwww.metlife.com/mybenefits.