why sell in the governmental 457(b) & 401(a) markets? at a glance Overview State and local governments • 8.3 million employees (not including education and hospitals)1 • More likely than private employers to provide retirement benefits • Employee retirement plans •4 57(b) plans: Similar to 401(k) plans with some key differences •4 01(a) plans: Employer-only contributions The Opportunity Governmental 457(b) plan assets are projected to grow from $195 billion in 2011 to $298 billion by 20162 457(b) Plan Projected Growth (billions) $300 $250 $200 $189.0 $194.8 2010 2011E $213.1 $232.9 $253.7 $275.5 $298.3 $150 $100 $50 $0 2012E 2013E 2014E 2015E 2016E The Market Some 87,500 local governmental entities3 • Cities and towns • State entities and counties • Municipalities and political subdivisions 1 Bureau of Labor Statistics, 2010. 2 Investment Company Institute; Cerulli Associates. 3 U.S. Census Bureau, www.census.gov. For Financial Professional Use Only. Not for Use with, or Distribution to, the General Public. •S pecial taxing districts and authorities – Bridges – Housing – Ports – Highway – Water and sewer – Police, fire and – Airports emergency services Unique Benefits of 457(b) Plans • Potential to contribute up to $34,000 in 2012 –B asic annual limit: $17,000 –A ge 50+ catch-up: $5,500 –P otential to contribute an additional $17,000 if within 3 years of the plan’s normal retirement age, in lieu of the age 50+ catch-up contribution • No early withdrawal penalty for distributions if participant retires before age 59½4 •D istributions are taxable –E arly distribution penalty applies to withdrawals of rollovers transferred into a 457(b) plan from other eligible retirement plans •P ension Protection Act allows public safety workers to retire at age 50 Unique Benefits of 401(a) Plans • Opportunity to enhance benefits for selected employees –E mployers can contribute up to $50,000 in 2012 to a 401(a) plan –M ay fully fund both a 457(b) plan ($17,000) in 2012 AND a 401(a) plan — no aggregation required • Employer can choose groups to cover –N o discrimination concerns for governmental entities Government Plans – Benefits to You • Grow and diversify your book of business • Gain access to decision makers and centers of influence • Potential for steadily increasing AUM growth with no additional sales efforts –O ngoing contributions –N ew enrollees –S tickier dollars—less asset churn •A dd-on sales potential – Individual accounts – Retirement rollovers – Life insurance – 529 plans – Potential defined benefit plan opportunities Interested in Learning How You Can Start Selling? Contact the Retirement Gateway® Sales Desk at (866) 401-3030, Option 1. 4 Withdrawals permitted only if separated from service or over age 70½. AXA Equitable Life Insurance Company (NY, NY). Distributors: AXA Advisors, LLC and AXA Distributors, LLC. AXA Equitable, AXA Advisors and AXA Distributors are affiliated companies and do not provide legal or tax advice. IU-67869 (6/12) (Exp. 6/14) For Financial Professional Use Only. Not for Use with, or Distribution to, the General Public. G29264 Cat. #149860 (5/12)