Voya 2014 Annual Report Download - page 54

Nature of Liabilities
Substantially all of our CBVA segment products were issued by one of our operating subsidiaries, VIAC.
Each of our CBVA segment deferred variable annuity products include some combination of the following
features which the customer elected when purchasing the product:
Guaranteed Minimum Death Benefits (GMDB)
•Standard. Guarantees that, upon the death of the individual specified in the policy, the death benefit
will be no less than the premiums paid by the customer, adjusted for withdrawals.
•Ratchet. Guarantees that, upon the death of the individual specified in the policy, the death benefit will
be no less than the greater of (1) Standard or (2) the maximum policy anniversary (or quarterly) value
of the variable annuity, adjusted for withdrawals.
•Rollup. Guarantees that, upon the death of the individual specified in the policy, the death benefit will
be no less than the aggregate premiums paid by the contract owner, with interest at the contractual rate
per annum, adjusted for withdrawals. The Rollup may be subject to a maximum cap on the total
benefit.
•Combo. Guarantees that, upon the death of the individual specified in the policy, the death benefit will
be no less than the greater of (1) Ratchet or (2) Rollup.
Guaranteed Minimum Living Benefits
•Guaranteed Minimum Income Benefit (GMIB). Guarantees a minimum income payout, exercisable
only on a contract anniversary on or after a specified date, in most cases 10 years after purchase of the
GMIB rider. The income payout is determined based on contractually established annuity factors
multiplied by the benefit base. The benefit base equals the premium paid at the time of product issue
and may increase over time based on a number of factors, including a rollup percentage (mainly 7% or
6% depending on the version of the benefit) and ratchet frequency subject to maximum caps which
vary by product version (200%, 250% or 300% of initial premium).
•Guaranteed Minimum Withdrawal Benefit and Guaranteed Minimum Withdrawal Benefit for Life
(GMWB/GMWBL). Guarantees an annual withdrawal amount for a specified period of time (GMWB)
or life (GMWBL) that is calculated as a percentage of the benefit base that equals premium paid at the
time of product issue and may increase over time based on a number of factors, including a rollup
percentage (mainly 7%, 6% or 0%, depending on versions of the benefit) and ratchet frequency
(primarily annually or quarterly, depending on versions). The percentage used to determine the
guaranteed annual withdrawal amount may vary by age at first withdrawal and depends on versions of
the benefit. A joint life-time withdrawal benefit option was available to include coverage for spouses.
Most versions of the withdrawal benefit included reset and/or step-up features that may increase the
guaranteed withdrawal amount in certain conditions. Earlier versions of the withdrawal benefit
guarantee that annual withdrawals of up to 7% of eligible premiums may be made until eligible
premiums previously paid by the contract owner are returned, regardless of account value performance.
Asset allocation requirements apply at all times where withdrawals are guaranteed for life.
•Guaranteed Minimum Accumulation Benefit (GMAB). Guarantees that the account value will be at least
100% of the eligible premiums paid by the customer after 10 years, adjusted for withdrawals. We
offered an alternative design that guaranteed the account value to be at least 200% of the eligible
premiums paid by contract owners after 20 years.
Reserves for Future Policy Benefits
We establish and carry actuarially-determined reserves that are calculated to meet our future obligations.
The principal assumptions used to establish liabilities for future policy benefits are based on our experience and
periodically reviewed against industry standards. These assumptions include mortality, policy lapse, investment
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