05/01/2024 | Press release | Distributed by Public on 05/01/2024 04:03
Page
|
|
Definitions We Use in this Summary Prospectus
|
2
|
Updated Information About Your Contract
|
3
|
Important Information You Should Consider About the
VEC Contract
|
4
|
Appendix A: Underlying Funds Available as Investment Options Under The VEC Contracts
|
A-1
|
FEES AND EXPENSES
|
LOCATION IN
PROSPECTUS
|
|
Charges for Early
Withdrawals
|
None
|
Charges
|
Transaction
Charges
|
There are no charges for other transactions under the Contract,
other than certain fees associated with Contract loans.
|
Charges
|
The table below describes the fees and expenses that you may
pay each year, depending on the options you choose. Please
refer to your Contract specifications page for information about
the specific fees you will pay each year based on the options you
have elected.
|
Charges
|
|
ANNUAL FEE
|
MIN.
|
MAX.
|
1.Base Contract
|
0.26%1
|
1.98%1
|
2.Investment options
(Underlying Fund fees and
expenses)
|
0.23%2
|
0.54%2
|
3.Optional benefits available
for an additional charge
|
NA
|
NA
|
1 As a percentage of the Separate Account value. There are
several classes of the Contract, each of which has a different
Separate Account charge, based upon the total contract assets
in the Separate Account and the General Account. Effective on
or about June 1, 2024, due the increase in the monthly contract
charge, the min will be 0.28% and the max will be 2.01%. See
the "Charges" section of the Prospectus for a description of the
Contract and related charges.
2 As a percentage of the net asset value of the Underlying Fund
assets.
|
FEES AND EXPENSES
|
LOCATION IN
PROSPECTUS
|
|
Because you may choose from among the Investment
alternatives offered, the choices you make affect how much you
will pay. To help you understand the cost of owning your
Contract, the following table shows the lowest and highest cost
you could pay each year, based on current charges.
|
||
LOWEST ANNUAL COST
ESTIMATE:
$505*
|
HIGHEST ANNUAL COST
ESTIMATE:
$2,581
|
|
Assumes:
•Investment of $100,000
•5% annual appreciation
•Least expensive combination
of Contract classes (i.e., Tier
1 Reduced Pricing) and
Underlying Fund fees and
expenses
•No optional benefits
•No outstanding loans
•No sales charges
•No additional Contributions ,
transfers, or withdrawals
|
Assumes:
•Investment of $100,000
•5% annual appreciation
•Most expensive
combination of Contract
classes (i.e., Standard
Pricing), and Underlying
Fund fees and expenses
•No optional benefits
•No outstanding loans
•No sales charges
•No additional Contributions ,
transfers, or withdrawals
|
|
* Effective on or about June 1, 2024, due the increase in the
monthly contract charge, the lowest annual cost estimate will be
$519 and the highest annual cost estimate will be $2,610.
|
||
RISKS
|
LOCATION IN
PROSPECTUS
|
|
Risk of Loss
|
You can lose money by investing in this Contract, including loss
of principal.
|
Principal Risks of
Investing in the
Contract
|
Not a Short-Term
Investment
|
This Contract is not a short-term investment and is not
appropriate for an investor who needs ready access to cash.
In particular:
•Tax deferral is more beneficial to Participants with a long-term
investment time horizon.
•Withdrawals are subject to ordinary income tax and may be
subject to tax penalties.
•The Contract is not intended for those who may need to make
early or frequent withdrawals or intend to engage in frequent
trading in the Underlying Funds.
|
General
Description of
Contracts
|
RISKS
|
LOCATION IN
PROSPECTUS
|
|
Risks Associated
with Investment
Options
|
An investment in the Contract is subject to the risk of poor
investment performance, and can vary, depending on the
performance of the Underlying Funds. Each investment option
available under the Contract, including the General Account, will
have its own unique risks. You should review these Investment
Alternatives before making an investment decision.
|
Appendix A:
Underlying Funds
Available Under
the Contracts
General
Description of
Separate Account
No. 2, Mutual of
America, and
Underlying Funds
Our General
Account
|
Insurance
Company Risks
|
An investment in the Contract is subject to the risks related to
Mutual of America Life Insurance Company , including that any
obligations (including under the General Account), guarantees,
and benefits of the Contract are subject to the claims paying
ability of Mutual of America. More information about Mutual of
America, including its financial strength ratings, is available upon
request from Mutual of America by calling our toll-free number,
800.468.3785 or by visiting our website at mutualofamerica.com.
|
General
Description of
Separate Account
No. 2, Mutual of
America, and
Underlying Funds
Our General
Account
|
RESTRICTIONS
|
LOCATION IN
PROSPECTUS
|
|
Investments
|
Your ability to allocate Contributions among the Investment
Alternatives is subject to any restrictions contained in your
Employer'sPlan. If your Employer'sPlan permits transfers to
other contracts, you may transfer your Account Value but only to
a provider specifically identified in the Plan. Transfers while you
are actively employed to any provider not specified in the Plan
are prohibited.
We may remove an Underlying Fund or limit its availability to new
Contributions and/or transfers of Account Value if we determine
that an Underlying Fund no longer satisfies one or more of our
selection criteria.
|
General
Description of
Separate Account
No. 2, Mutual of
America, and
Underlying Funds
|
Optional Benefits
|
NA
|
|
TAXES
|
LOCATION IN
PROSPECTUS
|
|
Tax Implications
|
You should consult with a tax professional to determine the tax
implications of an investment in and Contributions made under
the Contract.
Because the Contract is purchased through a tax-qualified plan,
there are no additional tax benefits to the Contract.
Withdrawals will be subject to ordinary income tax, and may be
subject to tax penalties.
|
Taxes
|
CONFLICTS OF INTEREST
|
LOCATION IN
PROSPECTUS
|
|
Investment
Professional
Compensation
|
Mutual of America offers the Contracts for sale through certain
of our employees. The only compensation we pay for sales of
the Contracts is in the form of salary and incentive compensation
if the Company's annual goals and objectives are met. There are
no commissions or fees payable for sales of the Contracts.
Registered representatives who sell the Contracts are eligible to
receive a yearly cash incentive payment based largely on
aggregate sales by all representatives in the representative's
office compared to sales targets we established for the office in
that year, which may be increased based on individual
performance in relation to individual sales objectives.
With regard to non-cash compensation, representatives and
certain staff from the top performing regional offices, as well as
other high performing representatives, will receive a trip to a
sales conference.
The existence of such forms of compensation could influence a
registered representative to recommend this Contract over
another investment.
|
Purchases and
Contract Value
|
Exchanges
|
Registered representatives may have a financial incentive to offer
a participant a new contract in place of the one in which he or
she already participates. An investor should only exchange his or
her Contract if he or she determines, after comparing the
features, fees, and risks of both contracts, that it is preferable for
him or her to purchase the new contract rather than continue to
own the existing Contract.
|
Purchases and
Contract Value
|
Type/Investment
Objective
|
Underlying Fund and
Adviser/Subadviser
|
Current
Expenses
|
Average Annual Total
Returns as of 12/31/23
|
||
1 year
|
5 year
|
10 year
|
|||
Equity Fund
Seeks to outperform
Russell 3000® Index**
by investing in a
diversified portfolio of
primarily common
stocks
|
MoA All America Fund
Adviser: Mutual of America Capital
Management LLC
|
0.52%
|
20.33%
|
13.53%
|
9.86%
|
Fixed Income Fund
Seeks current income
to extent consistent
with maintenance of
liquidity, investment
quality and stability of
capital
|
MoA Money Market Fund
Adviser: Mutual of America Capital
Management LLC
|
0.22%
|
4.99%
|
1.67%
|
1.06%
|
Fixed Income Fund
Seeks current income,
with preservation of
shareholders' capital a
secondary objective
|
MoA Core Bond Fund
Adviser: Mutual of America Capital
Management LLC
|
0.44%
|
5.03%
|
0.46%
|
1.72%
|
Balanced Fund
Seeks capital
appreciation and
current income by
investing in a
diversified portfolio of
common stocks, debt
securities and money
market instruments.
|
MoA Balanced Fund
Adviser: Mutual of America Capital
Management LLC
|
0.53%
|
15.07%
|
9.49%
|
7.44%
|