lincolnfwp.htm
Filed
Pursuant to Rule 433
Registration
No. 333-146213
December
2, 2008
The
following is a Summary Material Modification/Notice that describes changes to
the Lincoln National Corporation Executive Deferred Compensation Plan for
Agents.
DATE
NAME
ADDRESS
CITY,
STATE, ZIP
RE: LNC
Executive Deferred Compensation Plan for Agents
Dear
Participant:
Please
read this letter carefully if you are contracted with Lincoln Life & Annuity
Company of New York (LNY) and a participant in the Lincoln National Corporation
Executive Deferred Compensation Plan for Agents (the “Plan”). This is
a change in benefits and to the Plan, and is a summary material modification to
the Prospectus dated September 20, 2007 and the Prospectus Supplement dated
November 18, 2008.
New York
Insurance Law 4228 imposes limitations on the amount of compensation that agents
and brokers may receive with respect to individual life insurance policies and
annuity contracts. Certain “security benefits” are excluded in the
computation of those limits. Specifically, for non-qualified plans,
“security benefits” is defined as “a benefit that does not permit an agent to
obtain a cash payment other than at the time of death, permanent and total
disability, or retirement. New York recently issued “Circular Letter
No. 8 (2008)” defining “retirement” within the context of this regulation as
follows:
“The
earliest date on which the agent’s age is at least 55 and the sum of the agent’s
age and years of service with the insurer is at least 70.”
Lincoln Life & Annuity
Company Segregated Account
Lincoln
considers company contributions to the Plan that are made with respect to
deferrals of commissions received in connection with the sale of LNY products to
be security benefits and not subject to the compensation limits
imposed. Specifically, any Company Basic Match, Company Discretionary
Match, or Special Credit contributions, as described in Section C of the
Prospectus Supplement dated November 18, 2008, that are made with respect to
such deferrals are considered security benefits under this NY Insurance
Law. To that end, LNC must insure that distribution of those security
benefits does not occur until the agent has met the above age and years of
service requirements. Beginning January 1, 2008 all Company Basic
Match, Company Discretionary Match, and Special Credits that are security
benefits will be credited to a segregated “LNY Account” with special rules and
restrictions.
Amounts
credited to the LNY Account will be held until the earliest date on which the
above age and years of service requirement are met. On the first day
of the month following that occurrence, all accumulated contributions within the
LNY Account will be valued and distributed to you as soon as practicable –
usually within six (6) weeks but in no event later than 90 days following the
valuation date. Any further LNY contributions for that year or
subsequent years will be distributed as directed by you---no LNY Account
segregation will be required in subsequent years.
Distributable Events for the
Segregated LNY Account
Except as
described above or in accordance with the following exceptions, no distributions
will be made directly from the segregated LNY Account. Distributions
for the following events will be made in the form of a lump sum.
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Under
the “Qualifying Financial Hardship” provision of the Plan, but only if
such hardship is caused by your “Permanent and Total Disability” as
defined under Section 4228(b)(24) of the New York Insurance
Law. Please note that you must meet the Plan’s stringent
requirements for a Qualifying Financial Hardship as defined under section
409A of the Internal Revenue Code of 1986, as
amended.
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If you
have any questions
about the administration of the Plan, please contact the Nolan Financial Group
at 888-907-8633. If you have questions about New York Insurance Law
in the context of these changes, please contact Debbie Jett
860-466-1454.
Sincerely,
John
Arko
AVP
Retirement Plans
The
issuer has filed a registration statement (including a prospectus) with the SEC
for the offering to which this communication relates. Before you
invest, you should read the prospectus in that registration statement and other
documents the issuer has filed with the SEC for more complete information about
the issuer and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively
the issuer will arrange to send you the prospectus if you request it by calling
Nolan’s Deferred Compensation Customer Service Line at
888-907-8633.