field news new hearsay social media platform rollout files... · smru528543 ©2014 issue 06 a1 - 1...

For internal use only. Not to be used with the general public. SMRU528543 ©2014

Issue 06 A1 - 1 Feb. 3 2014

Field News New Hearsay Social Media Platform Rollout To: Agents and Field Management From: Phyllis Tozzi, CVP, Agency Social Media and Event Marketing

Summary Social networking has never been more important to your marketing and prospecting game plan. As a result, New York Life has taken a bold step in delivering to the Field a new social media platform called "Hearsay Social" which is replacing Socialware as our social media platform of choice.

Introducing Hearsay Social Social networking has never been more important to your marketing and prospecting game plan. As a result, New York Life has taken a bold step in delivering to the Field a new social media platform called "Hearsay Social" that will help you:

• More easily and effectively engage online with new prospects to build relationships

• Further drive existing relationships with clients and centers of influence

• Ultimately create more opportunities off line for appointments and sales

Hearsay Social is replacing Socialware as our social media platform of choice. This new social platform is fully accessible on all Internet-ready devices, including Smartphones and Tablets, and is entirely Web-based. Hearsay Social also conveniently displays life changes and "key events" from your networks - which you can then use to follow up offline.

Hearsay Social offers an exciting suite of features • Immediate access to a comprehensive library of compliance approved content to post

• Ability to schedule and automatically publish pre-approved posts and tweets simultaneously across social media platforms (e.g., LinkedIn, Facebook, Twitter) from a single user interface

• A smart listening component, with automatic scanning and monitoring of prospect and client life events

• Detailed analytics and metrics

• Built in compliance management tool

• Satisfies all New York Life and regulatory compliance requirements

New policies and procedures As we launch into the Hearsay Social era, we have new policies and procedures to support Facebook, Twitter, and Linked In, which are the only social media sites approved for business purposes. For a full guide to New York Life's Policies and Procedures, please visit: Agency Portal > Portal A to Z > "S" for Social Networking

Hearsay Social Agent rollout and training schedule To manage traffic to the new tool, Hearsay Social is being rolled out to different Agent segments between now and April (see schedule on the following page), and multiple training webinars will be held for each Agent segment to help you take advantage of this powerful tool.


Issue 06 A1 - 2 Feb. 3 2014

Users Rollout dates Webinar dates

Existing Socialware Users Feb. 1 - Feb. 7 Feb. 3

Current New Org (TAS only) Feb. 17 - March 1 Feb. 18

New Chairman's & President's Council Agents March 2 - March 15 March 5

New Executive Council Agents March 16 - March 31 March 19

All other Agents (new to platform) April 1 and beyond April 4

Steps to connect to Hearsay Social platform In order to participate and connect to this new social media platform during your scheduled roll-out, you'll need to complete the steps below:

1. Complete the new (as of Jan. 2, 2014) social media computer-based training: Because individuals using Hearsay Social have access to new features and functionalities not previously available (including the ability to "like" and "retweet" specific types of content), every Agent needs to complete the new computer-based training (CBT) available by following the path below: NYLIC U Online > Courses > NYL Curriculum > New Agent Training > Business Practices > Social Networking Requirements & Guidelines - CBT Shortly after completing the CBT, you will receive an email with instructions on how to log in to Hearsay Social and get started.

2. Create your social media pages: Refer to the Page Set-up Guides on Agency Portal for instructions on creating your Facebook Business Page, LinkedIn profile, and Twitter profile using the compliance approved profile templates. Each guide contains required language that must be included on your page to describe your licensing and role as an Agent, Registered Representative, IAR, member of a DBA.

3. Submit your social media pages to SMRU: Once you complete your CBT, you will receive an email with a link to Hearsay Social. Once you connect to Hearsay Social, your social media profile(s) are automatically submitted to SMRU for review. Look for notifications from your SMRU Reviewer within Hearsay Social alerting you of the compliance status and possible revisions required to your social media pages.

What is the cost of using Hearsay Social? There is a monthly $5 charge for using Hearsay Social, which is the same amount that was charged for using Socialware. This $5 charge is deducted from your ledger automatically when you sign up.

Why should I be on Hearsay Social? Just ask some Agents who participated in the Hearsay Social pilot:

• "Yesterday, within an hour of publishing a life insurance post, one of my Facebook 'fans' commented that he needs insurance. I plan to be writing the application during our appointment next week!" Agent, Vermont GO

• "It feels like I just hired someone to manage my social media." Agent, Boston GO

https://www.nylicuniversity.com/�

https://www.ap.newyorklife.com/socialnetworkingpagesetupguides�


Issue 06 A1 - 3 Feb. 3 2014

• "I love how easy Hearsay Social is ... it saves me about 20 minutes to a half hour a day!" Agent, Vermont GO

• "Social Signals is neat as it acts as our own personal hunter on the side for that 'low hanging fruit.'" Agent, Boston GO

• "Sooo much easier and better than the old way! LOVE IT!!!" Agent, Charlotte GO

Next steps 1. Mark your calendar for the appropriate training webinar per the schedule above.

2. Be sure to complete your new CBT training and be ready so you can begin enjoying all the benefits that Hearsay Social has to offer!

If you have questions, please contact us at [email protected] or contact the Marketing Support Desk at 1-800-NYLIFE8, Options 1 and 2.

mailto:[email protected]�

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Issue 06 A2 - 1 Feb. 3, 2014

Field News Tax forms and changes in Social Security rules

To: Agent and Field Management From: Human Resources Department

Summary

The Field News summarizes the information that New York Life must file with the Internal Revenue Service about the income and benefits credited to Agents in 2013. It also provides general guidance about the forms and amounts that Agents should use when filing their individual income tax returns. Neither New York Life nor its Agents may provide tax or other legal advice and you should consult your own tax/legal advisor regarding your particular circumstances.

Tax information reports

TAS Agents: Training Allowance Subsidy (TAS) Plan Agents will continue to have all of their income reported on IRS Form W-2. All of this income, including Agent Expense Allowance, is considered wages for federal income tax, FICA, and state and local income tax purposes. Established Agents: Established Agents who are not retired will receive a "Statutory Employee" Form W-2, which will include all of their commission income and, as appropriate, Agent Expense Allowance, Group Term Taxable Income (GTTI), Council travel expense allowance and any other amounts required to be reported as taxable compensation on Form W-2. Agents who received distributions from the 401(k) Savings Plan (Agents Progress-Sharing Investment (APSI) Plan) during 2013 will also receive IRS Form 1099-R. Retired Agents: Agents who have retired under the Nylic Retirement Plan may receive one or more of the following tax forms:

• Form 1099-R, which will reflect distributions from the Nylic Retirement Plan, 401(k) Savings Plan and, if applicable, long term disability payments.

• Form W-2 for commissions on business written prior to the Agent's retirement date and, if applicable, GTTI, Council travel expenses allowance, any Supplemental Senior Nylic Income payments, and Nonqualified Retirement Income.

• Form 1099-MISC for commissions on business written after the Agent's retirement date, along with any applicable Agent expense allowance.

The amounts reported on these forms are taxable for federal income tax purposes. However, some states and municipalities exempt all or part of retirement (Pension) income from state and local income taxation. Deferred Compensation Plans: Agents who have participated in a Deferred Compensation Plan (e.g., Senior Nylic Accumulation Plan (SNAP), Deferred First-Year Commission Plans), and who are currently receiving a payout from these plans will receive either a Form W-2 or Form 1099-MISC, which will include both the principal and interest portions of this payment. (Form W-2 is used to report payout of amounts deferred when the Agent was a statutory employee. Form 1099-MISC is used to report payout of amounts deferred after the Agent's retirement.) Year-End Debit Balance: The tax law requires that all amounts made available to an Agent (credited to the ledger) be reported as wages, even though some of the amounts may later be reversed. A year-end adjustment was made for Agents who had debit balances as of Dec. 31, 2013, so that any debit balance is reported on IRS Form W-2 as additional compensation. This procedure was then reversed at the beginning of Jan. 2014, and the debit balances were


Issue 06 A2 - 2 Feb. 3, 2014

restored to their ledgers. Amounts credited to Agents' ledgers during 2014 that are applied to reduce this debit balance will not be reported as income for 2014.

Agents' income tax returns

Established Agents who have not retired under the Nylic Retirement Plan are independent contractors and are treated as employees under the Internal Revenue Code for FICA tax and certain other benefit purposes. For these purposes, such Agents are classified as "statutory employees," and a check mark is made next to the words "Statutory Employee" on the IRS Form W-2 (Wage & Tax Statement). Their compensation is reported on Form W-2 so that FICA tax withholding can be reported. As noted above, established Agents who have not retired under the Nylic Retirement Plan are independent contractors and are treated as "statutory employees" for limited purposes. They should report their statutory employee income, as well as their business expenses, on Schedule C of their income tax returns (Form 1040). The amount shown as wages on an established Agent's Form W-2 should be reported on line 1 of Schedule C (not on Page 1 of Form 1040), and the Agent should put an "X" in the box on Schedule C for statutory employees. No Self-Employment Tax (SECA) needs to be calculated in connection with the income reported on this Schedule C; the employee share of FICA tax has already been withheld with respect to the income reported on the IRS Form W-2 and matched by New York Life. Agents who are credited with other insurance-related income (that is, income reported on IRS Form 1099-MISC) should complete a separate Schedule C for that income. They should allocate their insurance-related business expenses between the two Schedule Cs. They will have to calculate and pay SECA taxes on the net earnings from self-employment reported on the second Schedule C related to the Form 1099-MISC. Note: Training Allowance Subsidy Plan (TAS) Agents are common-law employees of New York Life, not independent contractors. As such, their unreimbursed business expenses can be reported only as miscellaneous itemized deductions on Schedule A, subject to the 2 percent floor on such deductions.

FICA tax and Social Security benefit aspects of Senior Nylic income and retirement income

Agents who have not retired under the Nylic Retirement Plan (except Agents operating under TAS agreements) are not employees of New York Life under regular common-law tests, as noted above. Such Agents are deemed to be "employees" only for Social Security tax and certain benefit purposes by law, which classifies full-time life insurance Agents as "employees" for such purposes. Section 3121(d)(3) of the Internal Revenue Code ("IRC") provides for this treatment. FICA Tax (Social Security and Medicare Tax): a. Pre-Retirement Income All amounts credited by New York Life to Agents who have not retired under the Nylic Retirement Plan are deemed to be "wages" for the purposes of computing FICA taxes. These "wages" include, among other items, first-year commissions, renewal commissions, Senior Nylic Income, Drawing Nylic Income, Premium Drawing Nylic Income, Agent Expense Allowance, and the value of Nonqualified Retirement Income accruals, if any. New York Life is required to both withhold and to pay FICA taxes on such amounts. For 2013, the rate of employee tax was 7.65 percent of the first $113,700 of earnings (6.2 percent for Old Age, Survivors, and Disability Insurance (OASDI) plus 1.45 percent for Medicare), and 1.45 percent on all earnings over $113,700. For 2014, the rate of employee tax is 7.65 percent of the first $117,000 of earnings, and 1.45 percent on all earnings over $117,000. Beginning in 2013, the applicable Medicare rate increased to 2.35 percent for income over a certain threshold (e.g. single earning over $200,000, married filing jointly over $250,000 or married filing separately over $125,000). The increase of 0.9 percent was imposed by the new health-care reform legislation (Patient Protection and Affordable Care Act). The inclusion of Senior Nylic Income, Drawing Nylic Income, Premium Drawing Nylic Income, Agent Expense Allowance and the value of Nonqualified Retirement Income accruals, if any, in the Social Security tax base


Issue 06 A2 - 3 Feb. 3, 2014

permit many Agents to receive higher Social Security benefits. In many cases where commission income in a year is less than the maximum amount subject to 6.2 percent OASDI rate, the inclusion of the above mentioned incomes/allowances raises the level of taxable earnings, which in turn raises the individual's "average indexed monthly earnings" upon which Social Security benefits for the individual and his/her family members are based. b. Post-Retirement Income Qualified Retirement Income credited under the Nylic Retirement Plan, whether as Early Retirement, Normal Retirement, or Deferred Retirement Income, is not subject to FICA tax. This income is reported on Form 1099-R for the year it is paid. Once an Agent retires, he or she no longer is considered an employee for FICA tax purposes. If the Agent continues to operate under a Retired Agent's Contract, he or she will be considered self-employed for tax purposes. Any commissions or other payments credited on business written after retirement would be subject to SECA (Self-Employment Tax), except that no SECA tax is due if all of the retired Agent's self-employment income (SEI) is less than $400. In 2013, the rate for SECA was 15.3 percent of the first $113,700 of SEI (12.4 percent for OASDI and 2.9 percent for Medicare), and 2.9 percent of all SEI over $113,700. For 2014, the SECA 15.3 percent rate applies to the first $117,000 of SEI, and the 2.9 percent rate applies to all SEI over $117,000. Beginning in 2013, the applicable Medicare rate of 2.9 percent is also being applied to income above a certain threshold (e.g. single filing over $200,000, married filing jointly over $250,000 or married filing separately over $125,000) and the rate is increasing to 3.8 percent for income over the respective threshold. The increase of 0.9 percent is imposed by the new health-care reform legislation (Patient Protection and Affordable Care Act). Typically, 50 percent of the SECA tax is allowed as a deduction for federal income tax purposes. Commissions credited to retired Agents are reported on Form 1099-MISC, and the Agent pays the SECA tax with his or her federal income tax. Commissions and other payments credited after retirement on business written prior to retirement will continue to be taxed at otherwise applicable FICA rates, as described above, subject to applicable limits, if any. c. Withholding of FICA Taxes on Non-qualified Benefit The benefit that may be paid from the Nylic Retirement Plan is subject to two limits that apply to tax-qualified pension plans:

1. IRC section 401(a)(17) limits the amount of earnings that can be used to calculate the benefit. The limit on earnings was $255,000 for 2013, and it increased to $260,000 for 2014.

2. IRC section 415(b) limits the amount of annual benefit that may be paid. The limit on the benefit payable at normal retirement age (generally age 65) was $205,000 for 2013, and it increased to $210,000 for 2014.

The portion of the benefit not payable from the Nylic Retirement Plan as a result of these two limits, if any, is payable as a non-qualified benefit under the Nylic Excess 415 and 401(a)(17) Plan. This non-qualified benefit is treated as wages for FICA tax purposes. In some cases, we withhold FICA tax on the non-qualified benefit as it accrues while an Agent is active; in some cases, we wait until the Agent commences the non-qualified benefit. For active Agents, the FICA taxation of the non-qualified benefit, if any, will vary by the Agent's contract and by whether the Agent is currently receiving a non-qualified benefit.

1. Agent has a P7, N8 or N9 contract; Agent is not currently receiving a non-qualified benefit and Agent's current year's earnings are estimated to exceed the 401(a)(17) limit: We estimate the present value of the increase in the non-qualified benefit for the year and add that amount to W-2 FICA taxable wages. Such amounts are subject to applicable FICA withholding taxes, which are deducted from the Agent's ledger in December.

2. Agent has an N6 or prior contract, and Agent is not currently receiving a non-qualified benefit: Each year, from 1994 to 2004, we estimated the value of the increase in the non-qualified benefit for the year and added that amount to W-2 FICA taxable wages. Due to changes to the Nylic Retirement Plan in 2004, the company discontinued the ongoing FICA taxation of non-qualified benefits for these Agents.


Issue 06 A2 - 4 Feb. 3, 2014

3. Agent is currently receiving a non-qualified benefit: The amount received is generally subject to FICA taxation. However, if the value of an Agent's non-qualified benefit has been previously taxed, Treasury regulations on FICA taxation of non-qualified benefits require that a credit be created for this already taxed value. The credit is then applied to the non-qualified benefits that the Agent is receiving and reduces the FICA tax owed on these benefits. In many cases, the credit will cover most or all of the FICA tax on the non-qualified benefit that the Agent is receiving. Once the credit is exhausted, the non-qualified benefit received is added to the W-2 FICA taxable wages.

For a terminating or retiring Agent with a non-qualified benefit, a final FICA tax calculation is done on the non-qualified benefit. We calculate the present value of the non-qualified benefit and reduce it for the remaining credit for the values previously taxed. This net amount is subject to applicable FICA withholding taxes, which will be, in most cases, deducted from the Agent's ledger. d. Withholding of FICA on Senior Nylic Accumulation Plan (SNAP) Benefits Accumulations under SNAP are not taxable for FICA tax purposes until vesting occurs (the Agent is entitled to payments). On Jan. 1 of the year following vesting, the full account balance is subject to FICA tax. An automatic distribution will be made by FUELS to calculate the FICA tax withholding on the Agent's account balance and record it as a distribution. The distribution from the SNAP account to handle the FICA liability is subject to ordinary income taxes and will also be automatically deducted from the Agents' SNAP account. Additional SNAP credits after vesting are FICA taxed in the year credited to the SNAP account.

Income tax withholding on retirement benefit payments from the Nylic Retirement Plan

Monthly pension payments from the Nylic Retirement Plan are subject to federal, and, in certain cases, state income tax withholding unless the recipient has elected not to have withholding apply, where such elections are permissible. Retired Agents who have not previously done so may elect not to have federal withholding apply to their monthly pension payments by calling the Benefits Center at 1-888-513-4636 or by logging onto the "Your Benefits Resources" ("YBR") web site at http://www.resources.hewitt.com/newyorklife. If federal income tax is to be withheld, the number of withholding allowances (exemptions) and marital status should be indicated. Federal income tax will then be withheld as if a payment of wages was being credited, and the amount withheld will be based on the marital status and the number of allowances claimed. If withholding of an additional whole dollar amount is desired, the Agent should contact the Benefits Center or update his/her withholding election on YBR. Retired Agents who are currently having federal income taxes withheld from their monthly pension payments have three options: (1) they may elect not to have withholding apply; (2) they may vary the number of withholding allowances (exemptions) or additional withholding amount so that more or less federal income tax will be withheld as discussed above; or (3) they may continue to have the same amount of tax withheld. Any previous election made, including the number of allowances and marital status previously claimed, will remain in effect until the election is revoked or a different number of allowances or a different marital status is claimed by changing the election on-line via YBR or by calling the Benefits Center. An Agent can revoke his or her election at any time. Any change or revocation will be effective no later than the first of the month following the 30-day period after the election, change or revocation is received. An Agent can make or revoke his or her election not to have withholding apply as often as he or she wishes. To make or revoke your withholding election, access YBR or call the Benefits Center. If an election form has previously been completed electing not to have withholding, it is not necessary to complete a new election form unless withholding is now desired. If no election has been filed with New York Life, federal income taxeswill be withheld automatically from the monthly retirement benefits as if the recipient were a married individual claiming three withholding allowances (exemptions). Generally, under such circumstances, no federal income taxeswill be withheld if the monthly retirement benefit is less than a certain amount. This amount is $1,680 per month.

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Issue 06 A2 - 5 Feb. 3, 2014

The number of exemptions claimed when making an election, need not be the same as those claimed on the recipient's own income tax return or on any other withholding form. However, if enough income taxes are not withheld from the pension payments, recipients may be responsible for payment of estimated taxes. Penalties and interest may be incurred under the estimated tax rules if withholding and estimated payments are not sufficient.

Social Security Benefits

After an individual begins to receive Social Security benefits, his or her continuing earnings can affect these benefits. An individual who had not yet attained Social Security's normal retirement age in 2013 was entitled to full Social Security benefits during the year if his or her total "countable annual earnings" did not exceed $15,120. An individual who reached Social Security's normal retirement age in 2013 was entitled to full Social Security benefits for those months prior to reaching normal retirement age, provided that his or her total "countable annual earnings" did not exceed $40,080. In 2014, the amounts increase to $15,480 and $41,400, respectively. Agents who have reached normal retirement age may earn any amount without losing benefits, starting with the month in which they reach that age. In the event earnings in the preceding months of the year do exceed the exempt amount, the individual reaching normal retirement age during the year loses Social Security benefits at the rate of $1 of Social Security Benefits for every $3 of countable earnings over the threshold. For years before the year in which the Agent reaches normal retirement age, the loss of benefits will be at the rate of $1 of benefits lost for every $2 of excess annual earnings. In the first calendar year in which an individual receives benefits, there is also a monthly earnings test. Individuals will receive full benefits in any month in which earnings do not exceed the monthly exempt amounts. In 2013, that amount for individuals under normal retirement age was $1,260 per month. In 2014, the amount increases to $1,290. The Social Security Administration takes the position that an Agent, until he or she retires under the Nylic Retirement Plan, is classified as an employee and must include in "annual earnings" (for benefit purposes) for the year of the sale, the full amount of potential commissions on any policy sold. This would include first-year commissions, as well as the full amount of all potential renewal commissions. Any commissions credited by reason of sales in prior years and any monthly Drawing or Senior Nylic Income is excluded. Thus, while new sales may result in the reduction of benefits, the receipt of Drawing or Senior Nylic Income will not have this effect. If the Agent loses any Social Security benefits because of the inclusion of potential commissions in "annual earnings" and it later develops that the Agent will not be credited with the commissions, the Social Security Administration will, upon request, make a re-computation excluding the commissions and pay the adjusted benefit at that later date. Agents receiving retirement income under the Nylic Retirement Plan are classified as self-employed for tax purposes and must include in their "annual earnings" (for benefit purposes) all commissions actually credited on sales made after their retirement date. This amount is reported on Form 1099-MISC. They would not include retirement income or commission payments credited on business written prior to their retirement date. Calculation of earnings for retired Agents for tax and "earnings test" purposes are done on a net basis so that proper business expenses can be deducted. Agents who have not retired under the Nylic Retirement Plan must report earnings for Social Security Tax benefits and "earnings test" purposes on a gross basis without any deduction for business expenses.

For more information

This Field News is intended to provide general information regarding your tax forms. However, you may have been credited with payments in 2013 from benefit plans other than those discussed above. If you have specific questions relating to your tax withholding on your retirement benefit(s), they should be directed to the New York Life InfoLine at 1-888-513-4636-when prompted, state "Retirement" to reach a representative. If you are an active Agent and have questions relating to your tax withholding, you should email your questions to "Agent Tax_Questions."


Issue 06 A2 - 6 Feb. 3, 2014

You can sign up to receive an electronic W-2, request a copy via FAX or USPS mail or you can view on-line and print your W-2 by logging on to https://www.PaperlessEmployee.com/NYLAGENTS. Use your NYLUID (Field Tech ID) or follow the prompts to set up your own unique user ID and password. To request a copy of your 1099 -MISC or 1099-R tax form, send an e-mail to: Agent_Ledger_Questions. Questions relating to Social Security or benefits should be directed to the New York Life InfoLine 1-888- 513-4636when prompted, state "Retirement" to reach a representative.

Required IRS Circular 230 Disclosure

This Field News contains a discussion of one or more tax-related subjects that provides general information only. It is not intended (and cannot be used) by any taxpayer for the purpose of avoiding any IRS penalties that may be imposed upon the taxpayer in his or her own individual circumstances. Taxpayers should always seek and rely on the advice of their own independent tax professionals. Please understand that New York Life, its subsidiaries, Agents and employees may not provide legal or tax advice.

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For internal use only. Not to be used with the general public. SMRU527490©2014

Issue 06 A3 - 1 Feb. 3, 2014

Field News Contribution limits for Simplified Employee Pensions (SEPs)

To: Agents and Field Management From: Walter Gonzalez, Director, Tax Qualified Plans - Retail Annuities

Summary This Field News discusses how small business clients with SEP plans may be able to increase their contributions and potentially increase their tax deductions.

It's that time again - SEP season is here! Are your small business owner clients and prospects looking for a tax deduction for 2013? A SEP may be the answer. SEP stands for Simplified Employee Pension, and a SEP plan can help your business clients (and prospects) obtain potentially significant savings on their 2013 income taxes, while at the same time causing them to incur little or no administrative expense. A SEP can also help increase the retirement savings of these clients and prospects. Our New York Life Annuities can be excellent funding vehicles for SEP plans.

There's still time for a 2013 tax deduction Self-employed business owners, including sole proprietors, whose tax years end on Dec. 31, can still set up a SEP Plan and contribute by April 15, 2014 (or later if they get an extension to file their tax return) and still get a deduction for 2013. April 15 is the due date this year for filing income tax returns. Corporations with tax years ending on Dec. 31 have until March 17, 2014 (plus extensions). This means that even though the tax year has ended, many businesses in need of tax relief can still qualify for a deduction.

Contribution limits -- $51,000 for 2013 and $52,000 for 2014 For the 2013 tax year, employers can contribute up to the lesser of 25% (20% for self-employed individuals after certain deductions) of includable compensation (which is limited to the first $255,000) or $51,000. For the 2014 tax year, the contribution limit is increased to $52,000 and the includable compensation limit increases to the first $260,000.

Increased sales opportunity If you have SEP clients, you should contact them regarding their 2013 plan contributions and remind them of the contribution deadline dates. IF your small business clients and prospects have not established a retirement plan and are looking for a tax deduction, NOW is the time to contact them and discuss the merits of a SEP plan.

SEP marketing material To help you present SEPs to your clients and prospects, the SEP brochure (#13313) and the SEP mailer (#14059), marketing pieces that discuss the features and benefits of a SEP, are available by going to Agency Portal > Resources >Products >Annuities Resource Center > Tax-Qual Plans > SEP. Click here for access to the Resource Page.1

It's easy to set up a SEP Plan...just use IRS form 5305-SEP

Form 5305-SEP is the IRS' approved plan document for establishing Model SEP Plans. It's just one page long, takes just minutes to complete, and contains all the information your clients will need to establish a 1 See the Agency Portal edition of this Field News for access to the referenced link.

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For internal use only. Not to be used with the general public. SMRU527490©2014

Issue 06 A3 - 2 Feb. 3, 2014

SEP. You should read it carefully and become thoroughly familiar with it. You can access this form from Agency Portal per the instructions above. You may also order through the General Office regular ordering process (Form #5305-SEP). Please note: Form 5305-SEP cannot be used by certain employers, such as employers that maintain another qualified plan. (See Form 5305-SEP for more details.) Please advise your clients to consult their own tax advisor for tax advice.

Need more information? For SEP questions, contact Walter Gonzalez at 212-576-8322 at the Home Office. For more detailed annuity product information, contact the product specialist at 1-800-535-5162. For annuity sales ideas and assistance, please contact your Investment or Retirement Specialist.


Issue 06 A4 - 1 Feb. 3, 2014

Field News Revised Individual Life Insurance application

To: Agent - Registered Representative - Field Management From: Thomas S. Heller, Vice President, Life & Annuity New Business

Eric Lynn, Vice President & Actuary, Life and Long-Term Care Product Management

Summary As part of a yearly update we are introducing a new Individual Life Insurance application (214-500) which has been updated with suggestions taken from Agents, the Agents Advisory Committee (AAC), Life Products and Insurance Group Service.

Availability On Feb. 10, the revised life application will be available in approved states. Supplies of the revised form can be obtained from your General Office. Forms will also be available in Requirements Generator and Forms Library on Agency Portal. After the rollout on Feb. 10, General Offices will accept the previous 213-500 application up until March 12, 2014.

Benefits The revised application offers several benefits to you and the Company as part of the new business process, including:

• The addition of several new products and riders to keep current with our life product portfolio.

• Application instructions at the end of the application form.

• The addition of Address, Date of Birth and Social Security number fields for the Successor Owner in the Owner section of the application.

• Added checkbox for U.S. in Country of Birth question under Primary Insured and Additional Insured sections of the form.

State availability Please use the chart below to determine 214-500 application availability by jurisdiction as of Feb. 10, 2014.*

Review of all changes by section

Attending physician's Statement Expedite Form

• The language has been updated to include reference to medications, both prescribed and over the counter, not listed in the sections above, taken on a regular basis within the last two years.

Agent Statement

• A new section has been added to Section 3 of the Agent Statement form for AARP Authorized to Offer (A2O) Agents. This change enables A2O Agents to identify sales that result from the use of the AARP co-brand. More details will be given during A2O Agent training in February. The program is effective March 1. Not an A2O Agent? Visit the AARP section of the Agency Portal for more information on the program.

* See the Agency Portal edition of this Field News for a link to the referenced chart.


Issue 06 A4 - 2 Feb. 3, 2014

Part I

• Section A: Added checkbox for U.S. in Country of Birth question under Primary Insured as well as Additional Insured. Additionally a line has been added next to Other.

• Section C: Under the Successor Owner section, fields were added for Address, Date of Birth and Social Security Number. Previously this information wasn't collected at the time of the application process. In the event the owner passes we will already have this information on file for the Successor Owner.

• Section F:

o Reduce Paid Up has been removed. This option is automatically elected based off the product the Agent selects.

o Checkbox on Premium Notice has been added for Second Addressee.

o "Send past due premium/potential lapse of coverage notices to secondary addressee designated by owner" wording has been added (already on the California Application).

• Section I:

o Coverage Information - Product Custom Survivorship Whole Life has been added.

o A checkbox for WP on 2nd Insured has been added.

o Chronic Care Rider - Whole Life Series has been added.

o Variable Universal Life Accumulator has been changed to Variable Universal Life Accumulator Plus as well as the addition of Intermediate No Lapse Guarantee Rider.

o Lifetime Wealth Variable Universal Life has been removed since it is no longer available for sale.

o Asset Preserver - LTC Benefit Options have been updated to align with the enhanced Asset Preserver AD114 product and the EOB Non-forfeiture rider has been added.

• Section H: Added language, If "Yes" to any question below, do not collect cash with app.

• Section J: Personal Information - under question 4, Annual Mileage for Motorcycle and hour per year for snowmobile/ATV has been added.

• Section M: Question 1, the "except buy/sell" language has been removed and Question 1 is now required for all business and creditor insurance.

• Section P: Section P (NON-MED) is also required when adding CCR to Term Conversion.

• Additional Insured Dialect question has been separated from Contact Information for Additional Insured.

• Tax certification The following verbiage was added next to Other Required Signature, - "Witness, second signature when Corporation is Owner". The Witness is now required to sign on the Other Required Signature line.

• Check-O-Matic (C-O-M) The language on the Check-O-Matic (C-O-M) form was updated and excludes the one- time EFT payment limitation on variable products. EFT payments are available for variable products.

• Temporary Coverage Agreement

o Question H4 has been added to the "No Coverage Provided" section of the TCA form. If question H4 is answered yes then there is no temporary coverage and CWA cannot be collected.


Issue 06 A4 - 3 Feb. 3, 2014

o Language has been added to the TCA form under Section 1 Coverage Provided and under Section 2 No Coverage Provided to reflect the addition of our new Accelerated Death Benefit for Chronic Care Rider (CCR).

• Paramed/Medical Exam Section 11: Third blood pressure reading added.

Training tools In preparation for the introduction of the new application, we have created an Annotated Application that will highlight new, required, may be required and potentially missed fields/questions. Additionally, below we have highlighted the "top 10 most commonly missed questions". Please use these tools to help you become familiar with the new application. Click here to view the 214-500 ICC Annotated App.†

#

Section Commonly Missed Question

1. L. Financial Information Current Annual Unearned Income

2. L. Financial Information Current Net Worth

3. L. Financial Information Current Annual Earned Income

4. D. Applicant Are all other children in the family insured or to be insured for an amount at least equal to that on the Proposed Insured? Yes/No

5. D. Applicant Employer Address (Street, City, State, Country, Zip)

6. I. Coverage (Alt/Add'l Policy Requested) Dividend Option

7. F. Mode (Policy Transfers/Premium Financing) 2. Is any part of the premium for this policy being financed by a third party, or has the Proposed Insured, Applicant, or Owner been offered any inducement fee ... Yes/No

8. F. Mode (Policy Transfers/Premium Financing) 3. Has Proposed Insured, Applicant, or Owner, within the past 12 months, authorized any third party to have a life settlement ... Yes/No

9. F. Mode (Policy Transfers/Premium Financing) 1. Does the Proposed Insured, Applicant, or Owner plan to transfer any right, title, or ownership interest in the policy being applied for ... Yes/No

10. A. Primary Insured Insured Tobacco use

For more information If you have any questions regarding the revised life application, please contact your Administrative Manager or Sales Development Manager.

† See the Agency Portal edition of this Field News for a link to the 214-500 ICC Annotated App


Issue 06 A5 - 1 Feb. 3, 2014

Field News 2014 update on NAIC Life Insurance Illustrations Model Regulation

To: Agent and Field Management From: Stephen McNamara, Vice President & Actuary, Insurance Group Finance

Summary Information pertaining to the NAIC Life Insurance Illustrations Model Regulation.

Disciplined Current Scale When illustrating a product and its non-guaranteed values, insurers are required by the NAIC Life Insurance Illustrations Model Regulation ("the Regulation") to use either a Disciplined Current Scale or their currently payable scale, whichever is lower. For each product that is covered by the Regulation and where we illustrate non-guaranteed elements, we test those non-guaranteed elements to make sure they comply with the Disciplined Current Scale provisions of the Regulation.

Expense allocation method For NYLIC, NYLIAC and NYLAZ product illustrations The Regulation also requires that we inform you annually of the expense allocation method we use in performing these tests. We used a fully allocated expense methodology, which means the assumed expenses in our disciplined current scale calculations for all illustrated NYLIC, NYLIAC and NYLAZ products are expenses recently incurred by the Company and actually allocated to new and in-force business.

Agent requirements: Matching signed illustration and illustration delivery receipt form Agents must submit a signed policy delivery receipt form and the matching signed illustration to the General Office before the delivery receipt can be processed. The signed illustration must be dated the same day or prior to the delivery receipt date. If the required signed illustration is not received at the GO, policy status will remain paid pending requirements and commissions are subject to reversal. (GO staff should refer to the BPDD for instructions on the applicable criteria to use to verify that the signed illustration matches the policy.)

Contacts • If you have questions pertaining to illustration requirements, please contact our Life Product Specialists at 1-

800- NYLIFE8 (1-800-695-4338), option 2.

• If you have questions pertaining to administrative procedures, please contact your administrative manager.

For internal registered representative use only. Not to be used with the general public. SMRU528189 ©2014

Issue 06 R1 - 1 Feb. 3, 2014

Field News NYLIFE Securities Account Fee Exemption Website opening - 2014

To: Registered Representatives and Field Management From: Steve H. Govaert, CVP Insurance Group/ NYLIFE Securities Service Center

Summary The Fee Exemption Website will be available from Feb. 15 to June 15 for you to select account fee exemptions for 2014. Your exemptions are based on the total number of client accounts on the brokerage platform as of Dec. 31, 2013. The exemption rule allows you to waive 10% of your client accounts that would normally be subject to the fee. Please refer to the information below for reminders about account fees and instructions for the Fee Exemption Website.

Account fees reminder Retirement Accounts: IRA Accounts are charged a $20 Maintenance fee and a $30 Administrative fee annually. The $30 Administrative fee will be waived if either the market value of the account is at least $25,000 or the balance in MainStay Cash Reserves is at least $10,000 upon valuation in October. As a reminder, all retirement accounts must pay the annual $20 Maintenance fee. Please note that although accounts are valued in October, you must make the account fee exemptions before the Fee Exemption Website closes on June 15. You may only exempt the $30 administrative fee. Retail Accounts: A $50 semi-annual fee for retail accounts is charged in July and January. The $50 semi-annual fee will be waived if either the market value of the account is at least $25,000 or the balance in the Money Market Sweep Shares is at least $10,000 upon valuation on June 30 and Dec. 31. Accounts that have been on the brokerage platform less than six months will not be charged the fee. Please note that although the next retail account valuation takes place on June 30, you must make the account fee exemptions before the Fee Exemption Website closes on June 15. The Website does reopen in November to allow you to change your retail account exemptions for the January fee.

Important reminders • If a customer has an insufficient money market balance to cover a fee, we will liquidate assets

in the account. If a sellout is required, we will attempt to sell securities that generate the least amount of commission paid by the client. However, this will not be an available option in all cases. Clients will also incur an additional fee of $15 to process this sellout. This sellout fee is in addition to any commission incurred as a result of the liquidation. Customers are notified about the sellout fee in their monthly account statement and we will not be able to provide additional notification to the customer when a sellout is processed. Clients can avoid this additional $15 sellout fee by either initiating a sale of securities to pay for the debit or remitting timely fee payment.

• A Cash Delinquency Report is available on Streetscape on the Report Manager page. This report lists all your client's accounts with a debit balance. You should contact those clients to inform them of the sellout fee. Clients can avoid the sellout fee by initiating a sale of securities themselves or remitting timely fee payment.

In a Feb. 3, 2003 Field News titled Anti-Rebating Laws and Gift Giving Rules, we provided you an important reminder on anti-rebating laws and gift giving rules. In general, rebating occurs when an insurance company or Agent offers or gives part or all of the commission or some other thing of value to an applicant as an inducement to purchase or renew insurance, listen to a solicitation or complete an application. Although the prohibition on rebating is broad, New York Life prohibits its Agents from directly or indirectly offering anything of value as an

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Issue 06 R1 - 2 Feb. 3, 2014

inducement to a prospective customer no matter how nominal the value. Please keep this in mind when notifying your clients about their waived fee(s). Please also note a June 19, 2006 Field News titled Gift Giving Rules - Updated Information, which provided updated gift giving rules per state.

Fee Exemption Website reminders • You must have at least 10 accounts (and listed as primary Agent on shared business) on the brokerage

platform as of Dec. 31, 2013 to receive an account waiver.

• All Market Value & Money Market balances listed for your clients' accounts in the Fee Exemption Website are as of the Dec. 31, 2013 valuation date. For real-time balances, please log on to Agency Portal > Registered Representative Resources > NYLIFE Securit ies Registered Representative Web site > Accounts > Balances > Enter Account Number or Shortname.

• You must make new selections in order to exempt any accounts in 2014. Accounts exempted from the fee last year are not automatically exempted in 2014; there are no carryovers of account exemptions from one fee year to the next. Please note that accounts opened in 2014 will not be eligible for exemptions.

• Selections and changes made on the website are automatically saved as you make them. You will be alerted by the website if you exceed the number of accounts you are allotted. Once you are satisfied with your exemptions, you must submit your final choices. Please note that once the exemptions are submitted, they are final and cannot be changed.

• The Fee Exemption Website will re-open in November. You will have the opportunity to modify your original list of exempted retail accounts for four weeks during the fourth quarter - before the Dec. 31 valuation date. For IRA accounts, the only opportunity to waive the $30 administrative fee is while the website is open between Feb. 15 and June 15.

Fee Exemption Website instructions The information below includes details on accessing the website and instructions on how to electronically make your waiver selections.

Steps to log-in to the Fee Exemption Website and make exemptions The Fee Exemption Website can only be accessed through Streetscape, which is easily available on Agency Portal > Registered Representative Resources > NYLIFE Securities Registered Representative Web site.

1. Access Log into Streetscape.

2. Click on Tools> > Account Fee Maintenance.

3. In the new window that opens (be sure to allow pop-ups from this site), enter your User ID and your six-digit New York Life Agent code.

4. Select the accounts you want to exempt on the Retail, IRA or Search tabs (details below).

5. Submit your final choices (details below).

Fee Exemption Website Features The following tabs are available on the Fee Exemption Website for easy navigation. Below is a brief description of each tab:

• Welcome: The Welcome tab provides a summary of the account fees as well as various scenarios when the account fees would not apply. The Welcome tab also offers you:

o Instructions to find real-time balances on clients' accounts

o Your maximum allowable exemptions

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Issue 06 R1 - 3 Feb. 3, 2014

o The number of accounts currently exempted

o June 15 closing day reminder - you must choose your exemptions prior to the closing day

• IRA and Retail: The IRA and Retail tabs list all your IRA and Retail accounts. For each of your client's accounts, the following information is available: Total Market Value (as of Dec. 31, 2013), Money Market balance (as of Dec. 31, 2013), Account Number, Client Name, and Exempt.

o To exempt an account -- click on the field in the Exempt column. You will be able to exempt either a retirement account from only the $30 Administrative fee or a retail account from the $50 semi-annual fee.

• Summary: The Summary tab provides:

o Your maximum number of accounts that can be marked as exempt

o The number of accounts currently exempted

o The Submit button -- once you are satisfied with your exemptions, you must submit your choices. Enter your Streetscape ID to verify your choices and hit the Submit button to finalize your exemptions. Please note that once the exemptions are submitted, they are final and cannot be changed.

• Search: The Search tab allows you to find clients' accounts by Account Type, Account Number, Client Name, and Market Value. Please note that you can exempt accounts from this page.

• Preferences: The Preferences tab allows you to select the columns you wish to have in your search request. You can sort selected columns in ascending or descending order by Account Number, Account Type, Client Name, Market Value, and Money Market balance.

• Frequently Asked Questions: The FAQs tab may answer questions you have about the NYLIFE Securities account fee structure.

Questions If you have any questions, please contact NYLIFE Securities at (800) 884-3874 and select the Investor Relations option.


Issue 06 R2 - 1 Feb. 3, 2014

Field News NYLIFE Securities client mailing: 2013 tax forms

To: Registered Representatives & Field Management From: Steven Govaert, Corporate Vice President, Insurance Group/NYLIFE Securities Service Center

Summary The Field News is about the mailing of tax documents to the clients for tax year 2013 by NFS. The client should have their 1099s by mid-February. The 5498 Forms will be mailed out to account holders by Jan. 31, 2014.

1099 statement mailings The Internal Revenue Service (IRS) has changed the yearly 1099 Tax Reporting Statement mailing deadline from Jan. 31 to Feb. 18, as mandated by the Emergency Economic Stabilization Act, which was signed on Oct. 3, 2008. In addition, NYLIFE Securities' clearing firm, National Financial Services (NFS), received an extension from the IRS to allow them to mail selected tax statements by March 1, 2013. This is part of an effort to reduce the amount of corrected tax forms a customer may receive. While most 2013 tax forms will be mailed between late Jan. 2014 and mid-Feb. 2014, a limited amount of customers holding certain mutual funds or certain complex securities, including unit investment trusts, mortgage pool securities, and real estate investment trusts will have tax statements mailed by March 1, 2014. NFS included a message on the tax forms directing clients to an interactive, informational tax statement guide on their website.

Form 5498 mailing NFS will mail Form 5498 to all Premiere Select® retirement account holders by Jan. 31, 2014. This form reflects all IRA contributions made between Jan. 1, 2013 and Dec. 31, 2013 for the 2013 tax year. Please note: if prior-year IRA contributions are made between Jan. 1, 2014 and April 15, 2014, Form 5498 will be revised to reflect these additional 2013 contributions and will be mailed to the appropriate account holders by May 31, 2014. The Form 5498 mailing will include:

• 2013 Form 5498: reflects Individual Retirement Account (IRA) contributions

• Notice of Withholding: provides federal and state income tax withholding information on distributions from retirement accounts

• Beneficiary Designation Reminder: reminds the account holder to periodically review their beneficiaries and make any necessary change.

1099-R mailing NFS will also mail the 2013 Form 1099-R by Jan. 31, 2014. This form contains information on distributions made from all Premiere Select® retirement accounts during 2013.

How to access tax documents All 2013 tax documents are scheduled to be available on the Registered Representative website, Streetscape, and the client website by late Feb. 2013. To view these tax documents, log on to Streetscape via the Agency Portal > Resources >Services > NYLIFE Securities Registered Representative website link.


Issue 06 R2 - 2 Feb. 3, 2014

Questions? If you have any questions, please contact NYLIFE Securities at (800) 884-3874 and select the Investor Relations option.

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