An annuity is a contract issued by an insurance company. With an annuity you can accumulate a sum of money, which you have set aside for retirement, and then convert that money into either one or more larger payments or on-going smaller payments that can last the rest of your life. While an annuity does not offer additional tax deferral beyond what is offered by an employer’s plan, it does offer other features that may be of value to you.

What is a 403(b) tax-deferred variable annuity?

A 403(b) tax-deferred variable annuity (TDA) is a voluntary retirement program available to employees of public schools and 501(c)(3) tax-exempt organizations under Section 403(b) of the Internal Revenue Code.

It provides an opportunity to use pretax dollars for retirement planning. Through a 403(b) plan and its current federal income tax advantages, you can set aside part of your pay through salary reductions and invest those pretax dollars in one or more investment options.

As its name suggests, you don't pay federal income tax on the salary you defer or any investment earnings until you receive the funds. This lowers current income taxes and helps any investment earnings grow faster. When you do begin receiving funds, usually at retirement, you may be in a lower tax bracket, which could further lower your tax payments.

Note: Opportunity Plus also offers a Roth 403(b) option, which allows for after-tax contributions to the plan. Your employer must elect to make the Roth 403(b) available to you. Check with your employer regarding availability.

ING does not offer legal or tax advice. Seek the advice of a tax attorney or of a tax adviser prior to making a tax-related insurance/investment decision.

Where do I go if I want more information before making a decision?

You can find the local representative assigned to your district or campus from the list provided within the Contact Us feature available from the left hand menu bar on this screen.

Informative seminars and meetings may be conducted. Watch for posters and other announcements detailing the times and locations.

The prospectuses for this program give relevant information about the variable contract and the various investment options available to you. Be sure to read them carefully before investing.

How much can I set aside in a TDA?

Federal regulations establish limits on the amount you may contribute to a TDA. Please contact your local representative for more information.

What happens to my contributions?

Your contributions will be forwarded regularly to ING Life Insurance and Annuity Company by your employer for investment in your choice of investment options available under the variable annuity contract. Your account will be credited within 24 hours of receipt by ING Life Insurance and Annuity Company of the funds in good order.

How will I know how my investment is doing?

A statement summarizing the activity in your account will be sent to you each quarter. It includes:

your beginning balance

any transactions made during the quarter

changes in account value resulting from performance of your investment options

a detailed breakdown of summary information by investment options

your current cash value

You have access to your account values or unit prices for all fund options 24 hours a day, 7 days a week* through the Internet - just click on Account Access on the left side of your screen. You can also call our toll-free Inquiry Line at 1-800-238-7377. Both of these features are password protected and allow you to check balances and execute certain transactions.

Service lines are available for customers with special needs:

TTY 1-800-855-2881
Voice 1-800-855-2881
ASCII 1-800-855-2882
Telebraille 1-800-855-2883

*May be unavailable at times for system maintenance.

What are my options for customer service?

You will receive experienced, personalized service from the moment you meet with your local representative. Backing up your dedicated retirement planning specialist is a special service office for Opportunity Plus participants. A toll free number (1-800-677-4636) puts you in touch with customer service associates to answer your questions, and give you up-to-date information on the money set aside for your future.

Service lines are available for customers with special needs:

TTY 1-800-855-2881
Voice 1-800-855-2881
ASCII 1-800-855-2882
Telebraille 1-800-855-2883

What is the impact on Social Security or other retirement programs?

The Internal Revenue Service has ruled that a tax-deferred annuity plan has no effect on your retirement or Social Security programs. Your total pay, including salary reduction amounts paid into Opportunity Plus, is subject to Social Security taxes.

What happens if I change employers?

Your account is portable and can be continued on a tax-deferred basis if your new employer:

1. is an eligible institution within New York State; and

2. accepts rollovers of such funds.

The account may also be placed on paid-up status, continuing to accumulate interest or participate in investment performance on a tax-deferred basis.

Can I roll over my balance from one company to another?

The Internal Revenue Service allows a partial or full tax-free rollover from one eligible retirement plan (defined as another 403(b) program, a qualified 401 plan, a governmental 457 plan, and a traditional IRA) to another. This means that if you have an eligible retirement plan with another employer and would like to join Opportunity Plus, you can roll over your existing account value to Opportunity Plus. A separate record has been established for these funds. There are no front-end or deferred sales charges on these rolled-over amounts unless invested in the Fixed Account.

To avoid current taxation, there are special procedures to be followed. ING will provide the appropriate forms.

Is there a sales charge?

There is no up-front sales charge in Opportunity Plus, so your entire contribution is invested in your account.

Is there a maintenance fee?

There is no annual maintenance fee.

What is a deferred sales charge?

Generally, a deferred sales charge (DSC) is a charge levied against the account value in the event of a full or partial withdrawal.

Are there deferred sales charges on Opportunity Plus?

Any amounts contributed on or after April 1, 1995 that are deposited into the variable funds and/or Guaranteed Accumulation Account (GAA) may be withdrawn without a deferred sales charge provided that the money has remained invested in these options.

There will be no deferred sales charge after your tenth anniversary or at normal retirement.

The deferred sales charge is not deducted under the following circumstances:

If you elect one of the various settlement options

If you are at least 59½ years old and have contributed to the account for nine purchase payment periods

If you are making a hardship withdrawal

If you separate from service while meeting the age and service requirements to be eligible to begin receiving benefits under the Retirement System

If you make withdrawals from the Single Premium contract

If you are disabled or die

This special deferred sales charge waiver does not apply to amounts:

withdrawn from the Fixed Account

transferred from the variable funds and/or GAA to the Fixed Account and subsequently withdrawn

transferred out of the Fixed Account into the variable funds and/or GAA and subsequently withdrawn

deposited prior to April 1, 1995

For all other situations, if you receive a full or partial withdrawal, it may be subject to a deferred sales charge as follows:

Purchase Payment Periods Completed *

Deferred Sales Charge Deduction

Less than 5

5%

5 or more, but less than 7

4%

7 or more, but less than 9

3%

9 or 10

2%

More than 10

0%

*One Purchase Payment Period is completed when payments have been made for one contract year.

For any withdrawal, amounts deposited on or after April 1, 1995 will be withdrawn first, then the remaining account value (which may be subject to a deferred sales charge) will be used to satisfy the withdrawal request.

Can I borrow from my account?

You may be able to borrow funds from your individual account and continue to defer taxation. Keep in mind that loans and withdrawals may generate an income tax liability, reduce available cash value, and reduce the death benefit. See your contract prospectus and the Opportunity Plus Loan Agreement for further details on the following provisions:

Effective interest rate charged to a participant is net 0.00% (6% interest rate charged for life of the loan; participant earns 6%).

One loan allowed every 12 months

Minimum loan amount of $1,000 with a minimum account balance of $2,000

Federal regulations require that repayment of loan principal and interest must be made in level quarterly payments over a one to five year period, except:

Loans taken for the acquisition of your principal residence may qualify for a repayment period of up to 20 years. Repayment must still be in level quarterly payments. The minimum loan amount in this circumstance is $2,500 with a minimum account balance of $5,000.

The above loan provisions are subject to change due to changes in the federal laws that govern such provisions.

Can I make a withdrawal?

Opportunity Plus, like all tax-deferred annuity programs, is intended to be a long-term investment vehicle. Any contributions made to the plan after December 31, 1988, and any earnings on your total account value accrued after that date, may only be withdrawn under the following circumstances:

Attainment of age 59½;

Severance from employment;

Your death or disability; or

Financial hardship (hardship withdrawals may be made from salary reduction contributions only, not from earnings on those contributions).

Please Note: Participants who had assets in a TDA before January 1, 1989 can take withdrawals from their plan's cash value (as of December 31, 1988) without meeting the above restrictions. However, the restrictions will apply to salary reduction contributions or any cash value increases made after December 31, 1988.

What is the Estate Conservation Option?

The Estate Conservation Option (ECO) addresses the needs of members who wish to preserve their supplemental retirement funds for their heirs to the extent permitted by federal law. It also lets participants maintain control of their investment without losing favorable tax benefits.

Federal tax law requires that you receive a minimum annual distribution from the plan generally beginning in the year after you reach age 70½, or when you retire, if later. The penalty for not complying is a 50% tax on the amount of the required distribution you don't receive. ECO is designed to comply with the law.

To take advantage of ECO, you must have an account value of at least $5,000. Each year, ING will distribute the portion of your account value as required by federal tax law. The remaining funds will continue to receive favorable tax-deferred benefits.

Your retirement planning specialist will be happy to provide you with more information on ECO.

What is the Systematic Withdrawal Option?

The Systematic Withdrawal Option (SWO) is designed for people who want to maintain control of their investment while receiving periodic income.

ING Life Insurance and Annuity Company will schedule your payments to give you either an income for a predetermined number of years, a specific dollar amount, or a specified percentage that will continue until your account value is paid out in full. You can choose the payment method that best suits your financial needs.

To take advantage of SWO, you must have an account value of at least $25,000 and have reached the age of 59½ (age 55 if you have separated from service), or, if you are age 70½ you must have an account value of at least $5,000. For the specified percentage payment method, payments must cease at age 70½.

When does the IRS 10% penalty tax apply?

Withdrawals before age 59½ may be subject to an IRS 10% premature distribution penalty tax, as well as being taxable as ordinary income. The 10% penalty does not apply when distributions are made at separation from service after age 55; are rolled-over to an IRA or other eligible retirement plan (another 403(b) program, a qualified 401 plan, a governmental 457 plan, and a traditional IRA); are due to death or disability; or are taken in substantially equal payments as determined under IRS regulations.

When must I begin making withdrawals?

By law, you must begin withdrawals by April 1 of the year following the later of the year in which you turn age 70½ or retire. This is referred to as a Required Minimum Distribution.

What are the payout options?

When you are ready to retire, you may select a lump-sum cash distribution or one of the following settlement options:

Life income - payments will be made for as long as you live. If you choose, you can specify a minimum number of months (60, 120, 180, or 240) and if you die before the end of that period, payments will be made to your beneficiary for the remainder of the time.

Life income for two payees - payments will be made for as long as you and another person you select live. At the death of either, payments will continue to the survivor.

Payments for a stated period of time - payments will be made for the number of years chosen, but no less than 3 and no more than 30.

Periodic Withdrawal - allows you to elect to receive a specified amount of the account's cash value, as a periodic distribution needed to supplement your cash flow.

What happens if I die before retirement?

If you should die before you retire, your beneficiary may receive the total current cash value of your account or select one of the settlement options. If your beneficiary is also your spouse and wants to defer receipt of the income, he/she can do this up to the date you would have reached age 70½. If you die, your spousal beneficiary can also roll over your TDA account value to his/her own retirement plan that accepts rollovers or to an Individual Retirement Annuity/Account (IRA).

Opportunity Plus is a tax-deferred variable annuity issued by ING Life Insurance and Annuity Company (ILIAC). Securities and financial planning offered through ING Financial Advisers, LLC (member SIPC). Securities also offered through other broker-dealers with which ING Financial Advisers, LLC has selling agreements.

You should consider the investment objectives, risks, charges and expenses of the variable product and its underlying fund options carefully before investing. The prospectuses contain this and other information. To obtain a copy of the Separate Account and/or fund prospectuses, please call your local ING representative. Or if you would prefer, call the Opportunity Plus Service Center. Please read the information carefully before investing.

Variable annuities are intended to be long-term investments for retirement purposes. Withdrawals taken prior to age 59 ½ may be subject to an IRS 10% premature distribution penalty tax. Amounts distributed from the annuity will be taxed as ordinary income when received. Account values will fluctuate with market conditions, and when surrendered, the principal may be more or less than its original amount invested. Tax deferral is provided by the plan and the annuity does not provide any additional tax deferral benefit. Annuities may be subject to additional fees and expenses to which other tax-qualified plan funding vehicles may not be subject. However, annuities provide features and benefits such as lifetime income payments and death benefits which may be valuable to you.

For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability, age 59½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are “grandfathered” and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988 plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings).

ING does not offer tax advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.

Insurance products are offered through ING Life Insurance and Annuity Company (ILIAC), One Orange Way, Windsor, CT 06095-4774. Securities are offered through ING Financial Advisers, LLC (member SIPC) and other broker/dealers with which it has agreements. Custodial services are offered through ING National Trust. These companies are wholly owned subsidiaries of ING Groep N.V. Products and services may not be available in all states.