Preference Plus Account (PPA)® Product Site

Preference Plus Account (PPA) is a tax sheltered variable annuity developed by Metropolitan Life Insurance Company (“MetLife”) to provide a retirement savings vehicle for employees of public schools, colleges and universities, non-profit hospitals and nonprofit organizations under IRC §501(c)(3). PPA is designed to help individuals accumulate assets for retirement as well as provide a steady stream of income throughout their retirement years. 

PPA Facts-at-a-Glance

What is a variable annuity?


PPA Performance


Minimum contribution


Funding Options


Transfers among funding options


Benefit sensitivity


Income for life


Death Benefit


Minimum Distribution


Loan Provision


Fees Charges3


A variable annuity is a long-term retirement savings vehicle specifically designed to help individuals save for retirement, providing them with a stream of retirement income that they cannot outlive. However, a participant may outlive their income if they do not elect an annuitization option that includes payments for life. Please refer to the product prospectus for additional information.

Although a variable annuity may be an appropriate choice for some people as part of an overall retirement portfolio, it is not suitable for everyone. Please read the prospectus thoroughly and completely before investing.

A variable annuity offers the following advantages:

Individuals pay no income tax on contributions until the money is withdrawn from their account (unlike Roth contributions which are deducted after tax withholdings).3,4

Death benefit3
If the individual dies before income payments begin, the beneficiary will receive a death benefit. The beneficiary will get a benefit from this feature if, at the time of death, the account balance is less than the guaranteed amount.

Range of underlying funding options5
There are many asset classes available in a variable annuity such as Target Date Funds, ETFs and Asset Allocation Portfolios.4

Periodic payments6
Individuals can elect to receive periodic income payments that may continue for their lifetime (and the lifetime of their spouse).

Click below to review performance reports and prospectuses:

Performance Reports
Preference Plus Account - 457(b)
Performance Reports
Preference Plus Account - Corporate Keogh (Allocated) Performance Reports
Preference Plus Account - Corporate Keogh (Unallocated) Performance Reports
Preference Plus Account - IRA Rollover Performance Reports
Preference Plus Account - IRA/Simple/Roth IRA/SEP/NQL Performance Reports
Preference Plus Account - Supplemental Savings Performance Reports
Preference Plus Account - TSA Performance Reports

None. If no purchase payments are made for more than 36 months and the account balance is under $2,000, MetLife may cancel the certificate, if permitted by law, by paying the account balance less any outstanding loans (if loans are permitted by plan). Early withdrawal charges may apply. No certificate will be terminated due solely to negative investment performance.

  • Asset Allocation Portfolios
  • “Fund-of-Funds”
  • Index Portfolios
  • Fixed Interest Account
  • Portfolios that invest in Exchange Traded Funds (ETFs)

Note: Purchase payments allocated to the investment divisions are not guaranteed and bear the risk of loss

Free. Non-taxable. Unlimited.

Other restrictions may apply. Please see prospectus for more details.

No certificate withdrawal charge will apply:3

  • if individuals leave their job and continuously participated in the certificate for at least 10 years (not applicable to transfers)
  • to a full withdrawal while an individual is disabled (as defined by the Social Security Administration). Disability must occur after individuals purchase this certificate.
  • upon death
  • to any withdrawal made to provide income payments for life or for a non-commutable period of five years or more
  • in any given certificate year, to partial withdrawals up to 10% of the account balance
  • any withdrawal required to avoid federal income tax penalties or satisfy federal income tax rules [except Section 72(t) withdrawals]

Create a stream of income for life — guaranteed by MetLife

Assuming income has not started, the standard death benefit is the greatest of:

  • Account balance;
  • Total purchase payments less withdrawals (including any applicable withdrawal charges);
  • Highest account balance on 12/31 following the end of any fifth certificate anniversary less withdrawals, fees and charges since that 12/31 date. In each case, the amount is reduced by outstanding loans, where loans are permited by plan.

The minimum distribution generally required each year once individuals reach age 73, or when they retire, whichever is later, by federal income tax rules can be calculated and forwarded from the Financial Freedom Account by enrolling in MetLife’s automated required minimum distribution service. Failure to take required minimum distributions for a year will result in a penalty tax on the amount of the shortfall. MetLife will guarantee the calculation for this annuity against Internal Revenue Service (IRS) penalties for this annuity (based upon the information provided). May not be available in all markets.

The amount that may be borrowed, the interest rate charged, the loan repayment schedules and loan application fees are described in the loan application form and the certificate (TSA only).

Note: Loan availability may be subject to the provisions of the employer’s plan.

Annual certificate fee
Depending on the plan provisions, there may be a $20 annual certificate fee from the Fixed Interest Account. The fee will be waived if the account balance is $10,000 or greater, and purchase payments are made during the year.

Separate Account charge
1.25% per year of the average value of the average account balance in the Seperate Account. Additional investment-related fees and expenses will apply to the selected funding options. Please refer to the prospectus for more information.

Withdrawal charges
A declining 7-year withdrawal charge applies to each contribution. 7-year withdrawal charge schedule:
7%, 6%, 5%, 4%, 3%, 2%, 1%, 0%.


Automated investment strategies7

  • * The AllocatorSM
    Each month, a dollar amount individuals choose is transferred from the Fixed Interest Account to any of the funding options they choose. The Allocator uses dollar cost averaging to take advantage of ups and downs in the market by investing the same amount at regular intervals of time.

  • * The EqualizerSM
    Take the emotion out of investing by automating the process with the Equalizer, a feature that helps individuals try to buy low and sell high. The Equalizer is a balanced, automated strategy that allocates money equally between the Fixed Interest Account and one of two stock investment divisions, either the MetLife Stock Index Division or the Frontier Mid Cap Growth Division. The transaction occurs automatically each quarter. If one investment division or the Fixed Interest Account outperforms the other, units or amounts are redeemed and transferred to the other so that they have equal balances. 

  • * The Equity Generator®
    Purchase payments go into the Fixed Interest Account, where they earn an interest rate guaranteed by MetLife and are protected from investment risk. Then each month, an amount equal to the accrued interest is transferred into one investment division of individuals’ choice. The guarantee associated with the Fixed Interest Account is subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company.

  • * The Rebalancer®
    Once individuals select a specific asset allocation, the Rebalancer seeks to keep the account in balance. Each quarter, the Rebalancer automatically returns the account balance to the allocation initially selected. 100% of the account balance must be allocated to this strategy. 

  • * The Index Selector®
    Individuals select one of five asset allocation models which are designed to correlate to various risk tolerance levels. Each asset allocation model is comprised of one or more index portfolio and, depending on the model, the Fixed Interest Account. 100% of the account balance must be allocated to the model of individuals’ choice. Each quarter, the model percentages of the model of individuals’ choice are maintained by automatic transfers among the index portfolios and the Fixed Interest Account.

  • * Asset Allocation Funding Options
    A diversified funding option that offers fully managed funding choices across a wide selection of asset classes. PPA offers Asset Allocation Portfolios. Each portfolio is diversified among asset classes and is designed to meet a specific investment objective and risk tolerance. Each Asset Allocation Portfolio is a “fund of funds” that invests in other underlying portfolios. Because of this two-tier structure, each Asset Allocation Portfolio bears its own investment management fees and expenses, as well as its pro rata share of the investment management fees and expenses of the underlying portfolios.8 Combining the investment strategies of several managers in a single portfolio may help to manage investment risk and provides individuals with a wide range of investment management expertise. Diversification does not ensure a profit or protect against loss.

These fees and charges mentioned above do not include investment management fees and other expenses of the funding options under the certificate. For more information please refer to the:
- Initial Summary Prospectus (“ISP”) - which is provided to clients at point of sale.
- The Updating Summary Prospectus (“USP”)which is provided to in-force clients as part of their annual prospectus mailing.
- Statutory Prospectus (full prospectus) is available for more detailed inquiries.

The information contained in this document is intended to be informational in nature and should not be considered a recommendation or individualized advice.

This product is a long-term investment designed for retirement purposes.

1. No investment strategy can guarantee a profit or protection against a loss. Only one investment strategy may be in effect at a time.

2. Income payments which guarantee payments for a specific time period are usually smaller than those which have no such guarantee. Also, guarantee periods that are shorter usually produce larger payments than those that have longer guarantee periods.

3. Ordinary income taxes generally apply at withdrawal. Withdrawal charges may also apply. Withdrawals prior to age 591/2 before separation of service are generally prohibited. Where allowed, distributions of taxable amounts are generally subject to ordinary income taxes and, if made before 591/2, may be subject to a 10% federal income tax penalty. In the case of 457(b) governmental plans, the 10% federal income tax penalty may apply to distributions of amounts rolled over from another type of qualified retirement plan or IRA. Individuals should consult with their tax advisor to determine whether an exception to these tax rules may apply. Withdrawals reduce the death benefits.

4. There is no additional tax deferral advantage to funding a qualified retirement plan with an annuity such as PPA. All accounts under qualified plans, including section 403(b) plans and IRAs, are eligible for tax deferral. There should be reasons other than tax deferral, such as the opportunity for lifetime payouts and the other benefits offered under the PPA certificate, for purchasing an annuity certificate under the qualified retirement plan. 

5. While the investment divisions and their comparably named portfolios may have names, investment objectives and management which are identical or similar to publicly available mutual funds, these portfolios are not those mutual funds. The portfolios most likely will not have the same performance experience as any publicly available mutual fund.

6. Distributions to individuals who are not the surviving spouse of the employee (or IRA owner), disabled or chronically ill individuals, individuals who are not more than 10 years younger than the employee (or IRA owner), or child of the employee (or IRA owner) who has not reached the age of majority, are generally required to be distributed by the end of the tenth calendar year following the year of the employee or IRA owner’s death.

7. No investment strategy can guarantee a profit or protect against a loss. Only one investment strategy may be in effect at a time. The Equity Generator and the Allocator are dollar cost averaging strategies that involve continuous investment in securities regardless of fluctuating price levels. Participants should consider their ability to continue purchases through periods of low price levels. The Equity Generator will automatically be discontinued if the Fixed Interest Account balance at the time of a scheduled transfer is zero. Direct investment into an index is not possible. Certain models in this strategy may be more volatile than other MetLife Automated Investment Strategies. We will continue to implement the Index Selector strategy using the percentage allocations of the model that have been in effect. These percentage allocations will not change. Individuals should consider whether it is appropriate for them to continue this strategy over time if their risk tolerance, time horizon, or financial situation changes. This strategy may experience more volatility than other strategies. The asset allocation models used in the Index Selector may change from time to time. Individuals should speak with their plan administrator for an updated model.

8. Individuals may be able to realize lower aggregate expenses by investing directly in the underlying portfolios rather than investing in the Asset Allocation Portfolios.

Preference Plus® Account variable annuity products are offered by prospectus only. Individuals should carefully read the product prospectus and consider the product’s features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well as other information about the underlying funding options. This and other information is available in the prospectus, which individuals should read carefully before investing. Product availability and features may vary by state. All product guarantees, including optional benefits, are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company

Like most annuity certificates, MetLife’s certificates contain charges, limitations, exclusions, holding periods, termination provisions and terms for keeping them in force.

MetLife and/or its affiliates (“MetLife”) receive fees for providing administrative and recordkeeping services. The fees may be deducted directly from the Participant’s account, be paid for by the Employer, be paid from the Plan assets and/or paid from the fees deducted from Participant account values allocated to the mutual funds available under the Plan. The fees can vary based upon the mutual funds that are available in the Plan and Plan Participants’ asset allocations. Because different mutual funds pay different rates of compensation and rates of mutual fund compensation are subject to change from time to time, compensation received by MetLife varies based on the rates of compensation in effect from time to time. MetLife may receive a finder’s fee from certain fund companies, which is additional compensation to MetLife. MetLife may also impose separate transactional fees for certain Participant elected transactions that will be charged directly to Plan Participants unless paid by the Employer or the Plan. MetLife may increase the annual administrative service fee charged to Participants’ accounts. MetLife may also pay a portion of the fees it collects to an entity that is designated as a directed trustee or directed custodian of the Plan; or to a third party administrator, or third party investment advisor. MetLife may receive payments for administrative services provided under the third party investment advisory services. MetLife also receives compensation for administrative services on annuities that are issued by unaffiliated insurance companies. MetLife also receives fees with respect to annuities it issues, according to the terms of the annuity contracts and prospectuses, if applicable. If you would like more information on the compensation that MetLife receives, contact your Employer. MetLife may realize a profit from any of the fees described above.

The purchase of an annuity through an employer retirement plan does not provide additional tax deferral benefits beyond those already provided through the retirement plan. Individuals should consider the annuity for its death benefit, annuity options and other non-tax related benefits

If you are buying a variable annuity to fund a qualified retirement plan or IRA, you should do so for the variable annuity’s features and benefits other than tax deferral. In such cases, tax deferral is not an additional benefit of the variable annuity. References throughout this material to tax advantages, such as tax deferral and tax-free transfers, are subject to this consideration.

Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their qualified legal, tax and accounting advisors as appropriate.

Preference Plus Account variable annuity is issued by Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166, and distributed by MetLife Investors Distribution Company (member FINRA). Both are MetLife companies. Policy Form number G4333-7.

Distributions of 401(k), 403(b) or 457(b) salary reduction contributions allocated to an account, and any earnings on such contributions, are generally not permitted prior to attaining normal retirement age under the retirement plan except under certain circumstances, such as an individual’s severance from employment with the employer sponsoring the plan or the individual’s death, disability or hardship (or 457(b) unforeseeable emergency) as permitted by the plan. Distributions of contributions and any earnings may also be restricted as defined in the plan documents. Contact the plan administrator to determine when and under what circumstances the individual may request a distribution from the plan.