RiverSource Retirement Group Annuity Contract II

Transcription

1 May 1, 2014 RiverSource Retirement Group Annuity Contract II This wrapper contains a prospectus and a prospectus supplement dated May 1, S-6612 D (5/14) Issued by: RiverSource Life Insurance Company

2 Prospectus Supplement dated June 16, 2014 Prospectus Form # Product Name National New York RiverSource Retirement Advisor Variable Annuity S-6467 W (5/14) S-6471 R (4/13) RiverSource Retirement Advisor Advantage Variable Annuity/RiverSource Retirement Advisor Select Variable Annuity RiverSource Retirement Advisor Advantage Plus Variable Annuity/ RiverSource Retirement Advisor Select Plus Variable Annuity RiverSource Retirement Advisor 4 Advantage Variable Annuity/RiverSource Retirement Advisor 4 Select Variable Annuity/RiverSource Retirement Advisor 4 Access Variable Annuity RiverSource RAVA 5 Advantage Variable Annuity/RAVA 5 Select Variable Annuity/RAVA 5 Access Variable Annuity (offered for contract applications signed prior to April 30, 2012) RiverSource RAVA 5 Advantage Variable Annuity/RAVA 5 Select Variable Annuity/RAVA 5 Access Variable Annuity (offered for contract applications signed on or after April 30, 2012) RiverSource RAVA 5 Advantage Variable Annuity/RiverSource RAVA 5 Select Variable Annuity/RiverSource RAVA 5 Access Variable Annuity (offered for contract applications signed on or after April 29, 2013) S-6406 V (5/14) S-6410 N (4/13) S-6273 V (5/14) S-6362 P (5/14) S-6503 M (5/14) S-6504 M (5/14) F (5/14) F (5/14) S-6515 D (5/14) S-6517 D (5/14) S-6594 C (5/14) S-6595 C (5/14) RiverSource Retirement Group Annuity Contract I S-6611 D (5/14) RiverSource Retirement Group Annuity Contract II S-6612 D (5/14) RiverSource Succession Select Variable Life Insurance S-6202 V (5/14) S-6203 T (5/14) RiverSource Single Premium Variable Life Insurance S-6199 K (5/08) RiverSource Variable Second-To-Die Life Insurance S-6196 W (5/08) S-6185 R (5/08) RiverSource Variable Universal Life 5/RiverSource Variable Universal Life 5-Estate Series RiverSource Variable Universal Life IV/RiverSource Variable Universal Life IV-Estate Series S-6542 D (5/14) S-6543 D (5/14) S-6418 T (5/14) S-6419 V (5/14) RiverSource Variable Universal Life Insurance S-6194 AR (5/14) S-6171 AT (5/14) RiverSource Variable Universal Life Insurance III S-6189 AG (5/14) S-6211 L (5/09) This supplement describes proposed changes to certain investment options offered under certain variable life insurance policies and variable annuity contracts (the Contracts ). Please retain this supplement with your prospectus for future reference. Effective on August 11, 2014 the DWS Funds will become known as the Deutsche Funds and the below-listed fund will be renamed. In addition, the trust name will change from the DWS Variable Series II to Deutsche Variable Series II. The following information will replace the current Fund description in the table in The Funds section of the prospectus or in The Variable Account and the Funds section of the prospectus: Investing In Investment Objective and Policies Investment Adviser Deutsche Alternative Asset Allocation VIP, Class B (previously DWS Alternative Asset Allocation VIP, Class B) Seeks capital appreciation. Deutsche Investment Management Americas Inc., adviser; QS Investors, LLC and RREEF America L.L.C., sub-advisers. THIS SUPPLEMENT SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE. S A (6/14)

3 From the Executive Vice President Thank you for choosing a RiverSource variable annuity to help you achieve a more confident retirement. Your variable annuity can be a powerful vehicle to help you protect your dreams and achieve your retirement income goals through the market s ups and downs. Annuities can help you accumulate assets as well as provide you with a source of guaranteed lifetime income. Consult with your financial advisor periodically to help ensure your contract continues to provide the benefits you need as your life changes. Gumer C. Alvero Director and Executive Vice President Annuities RiverSource Life Insurance Company Thank you for your business. We at RiverSource Life Insurance Company are proud of our financial strength and soundness and of our 120-year heritage honoring our commitments to clients. We look forward to continuing to serve you. Sincerely, Gumer C. Alvero Director and Executive Vice President Annuities RiverSource Life Insurance Company The guarantees offered by RiverSource annuities are backed by the strength and soundness of RiverSource Life Insurance Company and are subject to its claims- paying ability. These guarantees do not apply to the investments in the annuity, which will vary with market conditions. Variable annuities are insurance products that are complex, long-term investment vehicles that are subject to market risk, including the potential loss of principal invested. RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company RiverSource Life Insurance Company. All rights reserved. This page is not part of the prospectus.

4 Prospectus Supplement dated May 1, 2014 Prospectus Form # Product Name National New York RiverSource RAVA 5 Advantage Variable Annuity/RAVA 5 Select Variable Annuity/RAVA 5 Access Variable Annuity (offered for contract applications signed prior to April 30, 2012) RiverSource RAVA 5 Advantage Variable Annuity/RAVA 5 Select Variable Annuity/RAVA 5 Access Variable Annuity (offered for contract applications signed on or after April 30, 2012) RiverSource RAVA 5 Advantage Variable Annuity/RAVA 5 Select Variable Annuity/RAVA 5 Access Variable Annuity (offered for contract applications signed on or after April 29, 2013) RiverSource Retirement Advisor 4 Advantage Variable Annuity/RiverSource Retirement Advisor 4 Select Variable Annuity/RiverSource Retirement Advisor 4 Access Variable Annuity RiverSource Retirement Advisor Advantage Plus Variable Annuity/RiverSource Retirement Advisor Select Plus Variable Annuity RiverSource Retirement Advisor Advantage Variable Annuity/RiverSource Retirement Advisor Select Variable Annuity F (5/14) F (5/14) S-6515 D (5/14) S-6517 D (5/14) S-6594 C (5/14) S-6595 C (5/14) S-6503 M (5/14) S-6504 M (5/14) S-6273 V (5/14) S-6362 P (5/14) S-6406 V (5/14) RiverSource Retirement Advisor Advantage Variable Annuity S-6467 W (5/14) RiverSource Retirement Group Annuity Contract I S-6611 D (5/14) RiverSource Retirement Group Annuity Contract II S-6612 D (5/14) This supplement describes additional underlying funds that will be offered under variable annuity contracts (the Contracts ) described above. Please retain this supplement with your prospectus for future reference. Effective on the later of June 30, 2014 or the date the registration statement for the underlying funds described in this supplement becomes effective, two new underlying funds will be available under the Contracts: Variable Portfolio Multi- Manager Interest Rate Adaptive Fund (Class 2) and Variable Portfolio Multi-Manager Diversified Income Fund (Class 2). As of the date of this supplement, a registration statement for Variable Portfolio Multi-Manager Interest Rate Adaptive Fund (Class 2) and Variable Portfolio Multi-Manager Diversified Income Fund (Class 2) has been filed with the Securities and Exchange Commission (SEC), but is not yet effective. Shares of these funds may not be sold or purchased prior to the effective date of the funds registration statement. This supplement is not an offer to buy or sell securities. The information in this supplement regarding the underlying funds is not complete and is subject to change prior to the registration statement becoming effective. After the funds registration statement becomes effective, for a free copy of the funds prospectus, call Read the prospectus carefully before you invest. In conjunction with changes described above, the following revisions are made in your prospectuses. All changes described below are effective on or about June 30, I. The table entitled Annual Operating Expenses of the Funds in the Expense Summary section in your prospectus is hereby amended to include the new underlying funds. 1

5 ANNUAL OPERATING EXPENSES OF THE FUNDS The table below describes the operating expenses of the funds that you may pay periodically during the time that you own the contract. The table shows the total annual operating expenses charged by each fund. More detail concerning each fund s fees and expenses is contained in the prospectus for each fund. Total annual operating expenses of each fund* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets) Fund name Management fees(%) Distribution and/or Service 12b-1 fees(%) Other expenses (%) Acquired fund fees and expenses(%)** Total annual operating expenses(%) Variable Portfolio Multi-Manager Diversified Income Fund (Class 2)*** (1),(2) Variable Portfolio Multi-Manager Interest Rate Adaptive Fund (Class 2)*** (1),(2) * The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). *** For these underlying funds, a registration statement has been filed with the SEC but is not effective as of the date of this supplement. These funds are not available for purchase until their respective registration statements become effective. The expenses, investment objective, and investment advisor provided by these funds are the most recently available and may be subject to change prior to the funds registration statement becoming effective. (1) Management fees and other expenses are based on estimated amounts for the Fund s current fiscal year. In addition, acquired fund fees and expenses are based on estimated amounts for the current fiscal year. (2) and certain of its affiliates have contractually agreed to waive fees and/or to reimburse expenses (excluding transaction costs and certain other investment related expenses, interest, taxes and extraordinary expenses) until April 30, 2015, unless sooner terminated at the sole discretion of the Fund s Board of Trustees. Under this agreement, the Fund s net operating expenses, subject to applicable exclusions, will not exceed the annual rate of 1.04% for Variable Portfolio Multi-Manager Diversified Income Fund (Class 2) and 1.04% Variable Portfolio Multi- Manager Interest Rate Adaptive Fund (Class 2). II. The section in your prospectus titled The Funds is hereby amended to include description for the new underlying funds as follows: Investing In Investment Objective and Policies Investment Adviser Variable Portfolio Multi-Manager Diversified Income Fund (Class 2) Variable Portfolio Multi-Manager Interest Rate Adaptive Fund (Class 2) Seeks a high level of current income, with capital preservation as a secondary objective. Seeks total return while adapting to interest rate, credit and inflation environments. THIS SUPPLEMENT SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE. S A (5/14) 2

6 Prospectus May 1, 2014 RiverSource Retirement Group Annuity Contract II GROUP DEFERRED COMBINATION FIXED/VARIABLE ANNUITIES Issued by: RiverSource Life Insurance Company (RiverSource Life) Ameriprise Financial Center Minneapolis, MN Telephone: (Corporate Office) ameriprise.com/variableannuities RiverSource Variable Account 10/RiverSource Account MGA This prospectus describes a group variable annuity contract, RiverSource Retirement Group Annuity Contract II, and the certificates issued thereunder. It is designed to fund employer group retirement plans that meet the requirements of Section 403(b) of the Internal Revenue Code of 1986, as amended (the Code). It contains important information that you should know before investing in the RiverSource Retirement Group Annuity Contract II. Prospectuses are also available for: AllianceBernstein Variable Products Series Fund, Inc. ALPS Variable Investment Trust American Century Variable Portfolios, Inc. BlackRock Variable Series Funds, Inc. Columbia Funds Variable Insurance Trust Columbia Funds Variable Series Trust II DWS Variable Series II Fidelity Variable Insurance Products Service Class 2 Franklin Templeton Variable Insurance Products Trust (FTVIPT) Class 2 Goldman Sachs Variable Insurance Trust (VIT) Invesco Variable Insurance Funds Ivy Funds Variable Insurance Portfolios Janus Aspen Series: Service Shares Lazard Retirement Series, Inc. Legg Mason Partners Variable Income Trust MFS Variable Insurance Trust SM Morgan Stanley Universal Institutional Funds (UIF) Neuberger Berman Advisers Management Trust Oppenheimer Variable Account Funds Service Shares PIMCO Variable Insurance Trust (VIT) Van Eck VIP Trust Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense. An investment in this contract is not a deposit of a bank or financial institution and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. An investment in this contract involves investment risk including the possible loss of principal. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC s Internet site at ( Variable annuities are insurance products that are complex investment vehicles. Before you invest, be sure to ask your sales representative about the contract features, benefits, risks and fees, and whether the contract is appropriate for you, based upon your financial situation, objectives, and the source of funds used in purchasing your contract. The contract and certificate described in this prospectus may not be available in all jurisdictions. This prospectus constitutes an offering or solicitation only in those jurisdictions where such offering or solicitation may lawfully be made. State variations are covered in a special contract form used in that state. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contract or certificate other than contained in this prospectus or the fund prospectuses. RiverSource Life offers several different annuities which your sales representative may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS 1

7 needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to your annuity account values. The fees and charges you will pay when buying, owning and surrendering money from the certificate we describe in this prospectus may be more or less than the fees and charges of other variable annuities we and our affiliates issue. Table of Contents Key Terms... 3 The Contract and Certificate in Brief... 5 Expense Summary... 7 Condensed Financial Information...13 Financial Statements...13 The Variable Account and the Funds...13 Guarantee Period Accounts (GPAs) The Fixed Account...17 Enrolling Under The Contract...18 Charges...22 Valuing Your Investment...23 Making the Most of Your Certificate Surrenders...27 Loans...29 Changing Ownership...31 Benefits in Case of Death...31 The Annuity Payout Period...33 Taxes...34 Voting Rights...37 Substitution of Investments...37 About the Service Providers...37 Additional Information Appendix A: The Funds...41 Appendix B: Example Market Value Adjustment (MVA)..51 Appendix C: Condensed Financial Information (Unaudited)...53 Table of Contents of the Statement of Additional Information RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS

8 Key Terms These terms can help you understand details about the contract and certificate. Accumulation unit: A measure of the value of each subaccount prior to the application of amounts to an annuity payment plan. Annuitant, Joint Annuitant: The participant named in each certificate on whose life or life expectancy the annuity payouts are based. A joint annuitant can be named by the participant on the annuitization start date. Annuitization start date: The date when a participant s annuity payments begin according to the applicable annuity payment plan. Annuity payouts: An amount paid at regular intervals under one of several plans. Assumed investment return: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your certificate. The standard assumed investment return we use is 5% but you may request we substitute an assumed investment return of 3.5%. Beneficiary: The person a participant designates to receive benefits in case of a participant s death while the certificate is in force. Certificate: The document issued to each participant under a contract describing the terms of the contract and the rights and benefits available to the participant. Certificate account: An account established for each participant under the contract to maintain a record of payments, transactions and the value of each participant s investment. Certificate account value: The total value of a participant s certificate account at any point in time. Certificate date: The date from which certificate anniversaries, certificate years, and certificate months are determined. It is the effective date of a participant s certificate account. Certificate year: A period of 12 months, starting on the certificate date and on each anniversary of the certificate date. Close of business: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). Code: The Internal Revenue Code of 1986, as amended. Contract: The group flexible premium deferred variable annuity contract by and between RiverSource Life and the contract holder. The contract describes the terms of the annuity contract, the rights of the contract holder and the rights and benefits of the participants. Contract holder (Plan Sponsor, Employer): The employer that owns this contract and has established and sponsors the Plan. The contract holder, as the employer, accommodates elective deferral contributions and nonelective contributions made by or on behalf of participants. Contract year: A period of 12 months, starting on the date we issue the contract and each anniversary of that date. ERISA: Employee Retirement Income Security Act of 1974, as amended, and regulations thereunder. Fixed Account: Our general account which includes the loan account and the Special DCA fixed account. Amounts allocated to this account earn interest at rates that we declare periodically. Funds: Investment options under your certificate. Participant may allocate purchase payments into subaccounts investing in shares of any or all of these funds. Good order: We cannot process your transaction request relating to the contract and certificate until we have received the request in good order at our corporate office. Good order means the actual receipt of the requested transaction in writing, along with all information, forms and supporting legal documentation necessary to effect the transaction. To be in good order, your instructions must be sufficiently clear so that we do not need to exercise any discretion to follow such instructions. This information and documentation generally includes your completed request; the contract number; the transaction amount (in dollars); the names of and allocations to and/or from the subaccounts and the fixed account affected by the requested transaction; Social Security Number or Taxpayer Identification Number; and any other information, forms or supporting documentation that we may require. For certain transactions, at our option, we may require the signature of all contract owners for the request to be in good order. With respect to purchase requests, good order also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time. RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS 3

9 Guarantee Period: The number of successive 12-month periods that a guaranteed interest rate is credited. Guarantee Period Accounts (GPAs): A nonunitized separate account to which you may allocate purchase payments or transfer certificate value of at least $1,000. These accounts have guaranteed interest rates for guarantee periods we declare when you allocate purchase payments or transfer contract value to a GPA. These guaranteed rates and periods of time may vary by state. Unless an exception applies, transfers or surrenders from a GPA done more than 30 days before the end of the guarantee period will receive a market value adjustment, which may result in a gain or loss of principal. Market Value Adjustment (MVA): A positive or negative adjustment assessed if any portion of a Guarantee Period Account is surrendered or transferred more than 30 days before the end of its guarantee period. Participant (you, your): The person or persons for whom a certificate account is established under the plan as directed by the contract holder. Plan: The written plan document established by the contract holder which meets the requirements of Section 403(b) of the Code. RiverSource Life: In this prospectus, we, us, our and RiverSource Life refer to RiverSource Life Insurance Company. Surrender value: The amount you are entitled to receive if you make a full surrender from your certificate account. It is the certificate account value immediately prior to the surrender, minus any applicable charges and any loan amount, plus any positive or negative market value adjustment. Valuation date: Any normal business day, Monday through Friday, on which the NYSE is open, up to the time it closes. At the NYSE close, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) in good order at our corporate office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request in good order at our corporate office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. Variable account: Separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. 4 RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS

10 The Contract and Certificate in Brief The contract described in this prospectus is designed as a funding vehicle for retirement plans under Section 403(b) of the Code. 403(b) Plan annuity contracts, which are also referred to as Tax Sheltered Annuities (TSAs), provide for certain tax benefits to eligible employees of public school systems and organizations that are tax exempt under the Code. The contract is an agreement between the contract holder (generally the employer authorized to hold retirement plan assets for the benefit of employees) and RiverSource Life. The contract is subject to the terms of the Plan to the extent that the terms of the plan are consistent with the terms of the contract. The contract holder may purchase the contract and participants may purchase certificates thereunder. Each participant in the Plan is issued a certificate evidencing the participant s interest in the contract and describing its benefits. The participant is an employee for whose benefit the employer remits purchase payments to us. The participant s rights are subject to any conditions and /or limitations imposed by the Plan. Purpose: The purpose of the contract is to allow participants to accumulate money for retirement or a similar long-term goal by making purchase payments. You may allocate your purchase payments to the GPAs, Special DCA fixed account and/or subaccounts under the contract and listed in the certificate; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the certificate account. If the certificate account value goes to zero due to underlying fund s performance or deduction of fees, the certificate will no longer be in force and the certificate will terminate. Beginning at a specified time in the future called the annuitization start date, the certificate provides lifetime or other forms of payouts of your certificate account value after any market value adjustment (less any applicable premium tax, outstanding loan amount and/or other charges). Enrolling under the contract: There are many factors to consider carefully before you purchase a variable annuity. Variable annuities are not right for everyone. Make sure you have all the facts you need before you purchase a variable annuity. Some of the factors you may wish to consider include: Tax advantages: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. Because you are a participant in an annuity contract used to fund a tax-favored employer sponsored retirement arrangement, you should be aware that your certificate will not provide any necessary or additional tax deferral. Before enrolling under the contract, you should consider features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions ( RMDs ). RMDs may reduce the value of certain death benefits (see Taxes Required Minimum Distributions ). You should consult your tax advisor before you enroll under the contract for an explanation of the tax implications to you. Taxes: Generally, amounts contributed on a pretax basis are not taxed at the time of the contribution. Income earned on your certificate account also grows tax-deferred until you make surrenders or begin to receive payouts. Upon surrender, income taxes generally apply. (Under certain circumstances, Internal Revenue Service (IRS) penalty taxes may apply to surrenders.) Even if you direct payouts to someone else, generally you will be taxed on the income if you are the participant. (see Taxes ) How long you plan to keep your certificate account: variable annuities are not short-term liquid investments. Does the certificate meet your current and anticipated future needs for liquidity? The fees and expenses you will pay when buying, owning and surrendering money from the certificate account. We do not assess directly fees and expenses against the contract holder. The fees and expenses are assessed at the certificate level, which means that you, the participant, directly pay for the fees and expenses associated with investing in the contract. (see Charges ) Short-term trading: if you plan to manage your investment in the certificate account by frequent or short-term trading, this certificate is not suitable for you and you should not buy it. (see Making the Most of The Contract and Certificate Transferring Among Accounts ) Free look period: You, as the participant, have the right to examine your certificate and cancel enrollment in the contract by returning your certificate to our agent or our corporate office within the 10 days after receiving it (or any longer period that is required by the state law). You will receive a full refund of the certificate account value. The valuation date will be the date your request is received at our corporate office. (For California residents, the valuation date will be the earlier of the date your certificate is returned to our agent or to our corporate office). We will not deduct any certificate charges or fees. However, you bear the investment risk from the time of purchase until you return the certificate and any positive or negative market value adjustment will apply; the refund amount may be more or less than the payment you made. (Exception: If the law requires, we will refund all of your purchase payments.) RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS 5

11 Accounts: Generally, you may allocate your purchase payments among the: subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the annuitization start date will equal or exceed the total purchase payments you allocate to the subaccounts. (see The Variable Account and the Funds ) GPAs which earn interest at rates declared when you make an allocation to that account. The required minimum investment in each GPA is $1,000. These accounts may not be available in all states. (see Guarantee Period Accounts (GPAs) ) the Special DCA fixed account which earns interest at rates that we adjust periodically. There are restrictions on transfers from this account, including restrictions on the amount you can allocate to this account and how long certificate account value can remain in this account. (see The Fixed Account ) Transfers: You currently may redistribute your certificate account value among the subaccounts without charge at any time until the annuitization start date, and once per certificate year after the annuitization start date. Transfers out of the GPAs done more than 30 days before the end of the guarantee period will be subject to an MVA, unless an exception applies. You may establish automated transfers among the accounts. Transfers into the Special DCA fixed account are not permitted. GPAs and the Special DCA fixed account are subject to special restrictions. (see Making the Most of The Contract and Certificate Transferring Among Accounts ) Surrenders: Any distribution from a certificate account will be treated as a surrender or partial surrender. Unless restricted by the Code or terms of the Plan, you may surrender all or part of your certificate account value, less any loan amount, at any time before the annuitization start date. You also may establish automated partial surrenders. Surrenders may be subject to income taxes (including an IRS penalty that may apply for premature distribution from your certificate account) and may have other tax consequences. (see Surrenders ) Benefits in case of death: If you die before the annuitization start date, we will pay the beneficiary an amount at least equal to the certificate account value. (see Benefits in Case of Death ) Annuity payouts: You can apply your certificate account value, after reflecting any adjustments, to an annuity payout plan that begins on the annuitization start date. You may choose from a variety of plans that can help meet your retirement or other income needs. The payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. During the annuity payout period, your choices for subaccounts may be limited. The GPAs and the Special DCA fixed account are not available after the annuitization start date. (see The Annuity Payout Period ) 6 RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS

12 Expense Summary The following tables describe the fees and expenses that you will pay when buying, owning and surrendering from the certificate. The first two tables describe the fees and expenses that you will pay periodically during the time that you own the certificate, not including fund fees and expenses. CERTIFICATE ADMINISTRATIVE CHARGE Annual certificate administrative charge Maximum: $50 Current: $0 Annual certificate administrative charge if your certificate account value equals or exceeds $50,000 Maximum: $20 Current: $0 Certificate administrative charge at full surrender Maximum: $50 Current: $0 ANNUAL VARIABLE ACCOUNT EXPENSES (As a percentage of average daily subaccount value) Mortality and expense risk fee 0.95% ANNUAL OPERATING EXPENSES OF THE FUNDS The next two tables describe the operating expenses of the funds that you may pay periodically during the time that you own the certificate. These operating expenses are for the fiscal year ended Dec. 31, 2013, unless otherwise noted. The first table shows the minimum and maximum total operating expenses charged by the funds. The second table shows the fees and expenses charged by each fund. More detail concerning each fund s fees and expenses is contained in the each fund s prospectus. Minimum and maximum total annual operating expenses for the funds (a) (Including management fee, distribution and/or service (12b-1) fees and other expenses) Minimum Maximum Total expenses before fee waivers and/or expense reimbursements 0.44% 4.82% (a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund s affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund s distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See The Variable Accounts and the Funds for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund s fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund s prospectus and SAI. Total annual operating expenses for each fund* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets) Distribution and/or Service 12b-1 fees Acquired fund fees and expenses*** Total annual operating expenses Fund name** Management fees Other expenses AllianceBernstein VPS Dynamic Asset Allocation Portfolio (Class B) 0.70% 0.25% 0.19% % 1.14% (1) AllianceBernstein VPS Large Cap Growth Portfolio (Class B) ALPS/Alerian Energy Infrastructure Portfolio: Class III (2) American Century VP Value, Class II BlackRock Global Allocation V.I. Fund (Class III) (3) Columbia Variable Portfolio Balanced Fund (Class 3) Columbia Variable Portfolio Cash Management Fund (Class 2) Columbia Variable Portfolio Commodity Strategy Fund (Class 2) Columbia Variable Portfolio Contrarian Core Fund (Class 2) Columbia Variable Portfolio Core Bond Fund (Class 2) Columbia Variable Portfolio Diversified Bond Fund (Class 2) Columbia Variable Portfolio Dividend Opportunity Fund (Class 2) Columbia Variable Portfolio Emerging Markets Bond Fund (Class 2) Columbia Variable Portfolio Emerging Markets Fund (Class 2) RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS 7

13 Total annual operating expenses for each fund* (continued) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets) Fund name** Management fees Distribution and/or Service 12b-1 fees Other expenses Acquired fund fees and expenses*** Total annual operating expenses Columbia Variable Portfolio Global Bond Fund (Class 2) 0.56% 0.25% 0.17% % 0.98% Columbia Variable Portfolio High Yield Bond Fund (Class 2) Columbia Variable Portfolio Income Opportunities Fund (Class 2) Columbia Variable Portfolio International Opportunity Fund (Class 2) Columbia Variable Portfolio Large Cap Growth Fund (Class 2) Columbia Variable Portfolio Large Core Quantitative Fund (Class 2) Columbia Variable Portfolio Limited Duration Credit Fund (Class 2) Columbia Variable Portfolio Managed Volatility Conservative Fund (Class 2) (4) Columbia Variable Portfolio Managed Volatility Conservative Growth Fund (Class 2) (4) Columbia Variable Portfolio Managed Volatility Growth Fund (Class 2) (4) Columbia Variable Portfolio Managed Volatility Moderate Growth Fund (Class 2) Columbia Variable Portfolio Marsico International Opportunities Fund (Class 2) (5),(6) Columbia Variable Portfolio Mid Cap Growth Opportunity Fund (Class 2) Columbia Variable Portfolio Mid Cap Value Opportunity Fund (Class 2) Columbia Variable Portfolio Multi-Strategy Alternatives Fund (Class 2)** Columbia Variable Portfolio S&P 500 Index Fund (Class 3) Columbia Variable Portfolio Select Large-Cap Value Fund (Class 2) Columbia Variable Portfolio Select Smaller-Cap Value Fund (Class 2) Columbia Variable Portfolio Strategic Income Fund (Class 2) Columbia Variable Portfolio U.S. Government Mortgage Fund (Class 2) DWS Alternative Asset Allocation VIP, Class B (7) Fidelity VIP Contrafund Portfolio Service Class Fidelity VIP Mid Cap Portfolio Service Class Fidelity VIP Strategic Income Portfolio Service Class FTVIPT Franklin Income VIP Fund Class 2** FTVIPT Franklin Mutual Shares VIP Fund Class 2** FTVIPT Franklin Small Cap Value VIP Fund Class 2** FTVIPT Templeton Global Bond VIP Fund Class 2** Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares (8) Invesco V.I. Balanced-Risk Allocation Fund, Series II Shares (9) Ivy Funds VIP Asset Strategy (10) Janus Aspen Series Flexible Bond Portfolio: Service Shares Janus Aspen Series Global Allocation Portfolio Moderate: Service Shares (11) Janus Aspen Series Janus Portfolio: Service Shares Lazard Retirement Global Dynamic Multi Asset Portfolio Service (12) Shares** MFS Utilities Series Service Class Morgan Stanley UIF Mid Cap Growth Portfolio, Class II Shares (13) Neuberger Berman Advisers Management Trust Absolute Return Multi- Manager Portfolio (Class S) (14) 8 RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS

14 Total annual operating expenses for each fund* (continued) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets) Fund name** Neuberger Berman Advisers Management Trust Socially Responsive Portfolio (Class S) Management fees Distribution and/or Service 12b-1 fees Other expenses Acquired fund fees and expenses*** Total annual operating expenses 0.85% 0.25% 0.15% % 1.25% (15) Oppenheimer Global Fund/VA, Service Shares Oppenheimer Global Strategic Income Fund/VA, Service Shares (16) Oppenheimer Main Street Small Cap Fund /VA, Service Shares (17) PIMCO VIT All Asset Portfolio, Advisor Class (18) PIMCO VIT Global Multi-Asset Managed Allocation Portfolio, Advisor Class** (19) PIMCO VIT Total Return Portfolio, Advisor Class Van Eck VIP Global Gold Fund (Class S Shares) (20) Variable Portfolio Aggressive Portfolio (Class 2) Variable Portfolio American Century Diversified Bond Fund (Class 2) (5) Variable Portfolio AQR Managed Futures Strategy Fund (Class 2) Variable Portfolio BlackRock Global Inflation-Protected Securities Fund (Class 2) Variable Portfolio Columbia Wanger International Equities Fund (Class 2) Variable Portfolio Columbia Wanger U.S. Equities Fund (Class 2) Variable Portfolio Conservative Portfolio (Class 2) Variable Portfolio DFA International Value Fund (Class 2) Variable Portfolio Eaton Vance Floating-Rate Income Fund (Class 2) Variable Portfolio Goldman Sachs Commodity Strategy Fund (Class 2) Variable Portfolio Holland Large Cap Growth Fund (Class 2) Variable Portfolio Invesco International Growth Fund (Class 2) Variable Portfolio J.P. Morgan Core Bond Fund (Class 2) Variable Portfolio Jennison Mid Cap Growth Fund (Class 2) Variable Portfolio Loomis Sayles Growth Fund (Class 2)** Variable Portfolio MFS Value Fund (Class 2) Variable Portfolio Moderate Portfolio (Class 2) Variable Portfolio Moderately Aggressive Portfolio (Class 2) Variable Portfolio Moderately Conservative Portfolio (Class 2) Variable Portfolio Morgan Stanley Global Real Estate Fund (Class 2) Variable Portfolio NFJ Dividend Value Fund (Class 2) Variable Portfolio Nuveen Winslow Large Cap Growth Fund (Class 2) Variable Portfolio Partners Small Cap Growth Fund (Class 2) Variable Portfolio Partners Small Cap Value Fund (Class 2) Variable Portfolio Pyramis International Equity Fund (Class 2) Variable Portfolio Pyrford International Equity Fund (Class 2) Variable Portfolio Sit Dividend Growth Fund (Class 2) Variable Portfolio TCW Core Plus Bond Fund (Class 2)** (21) Variable Portfolio Victory Established Value Fund (Class 2) Variable Portfolio Wells Fargo Short Duration Government Fund (Class 2) Wells Fargo Advantage VT Opportunity Fund Class (22) Wells Fargo Advantage VT Small Cap Growth Fund Class Western Asset Variable Global High Yield Bond Portfolio Class II RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS 9

15 * The Funds provided the information on their expenses and we have not independently verified the information. ** The previous fund names can be found in the Appendix under The Funds. *** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) After a voluntary expense waiver and reimbursement, net expenses would be 1.10%. (2) ALPS Advisors, Inc. (the Adviser ) has contractually agreed to waive its management fee and/or reimburse expenses so that total annual fund operating expenses after fee waiver/expense reimbursements (not including Distribution and/or Service (12b-1) Fees, Shareholder Service Fees, acquired fund fees and expenses, taxes, brokerage commissions and extraordinary expenses) do not exceed a maximum of 0.80% of Class III shares average daily net assets through April 29, This agreement may only be terminated during the period by the Board of Trustees of ALPS Variable Investment Trust. After fee waivers and/or reimbursements, net expenses would be 1.30%. (3) BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit total annual fund operating expenses after fee waivers and/or expense reimbursements (excluding dividend expense, interest expense, acquired fund fees and expenses and certain other Fund expenses) to 1.50% of average daily net assets until May 1, BlackRock has also contractually agreed to reimburse fees in order to limit certain operational and recordkeeping fees to 0.07% of average daily net assets until May 1, Each of these contractual agreements may be terminated upon 90 days notice by a majority of the non-interested directors of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. In addition, the Manager may waive a portion of the Fund s management fee in connection with the Fund s investment in an affiliated money market fund. After fee waivers and/or reimbursements, net expenses would be 0.97%. (4) and certain of its affiliates have contractually agreed to waive and/or to reimburse expenses (excluding transaction costs and certain other investment related expenses, interest, taxes and extraordinary expenses) until April 30, 2015, unless sooner terminated at the sole discretion of the Fund s Board of Trustees. Under this agreement, the Fund s net operating expenses, subject to applicable exclusions, will not exceed the annual rate of 1.10% for Columbia Variable Portfolio Managed Volatility Conservative Fund (Class 2),1.10% for Columbia Variable Portfolio Managed Volatility Conservative Growth Fund (Class 2) and 1.10% for Columbia Variable Portfolio Managed Volatility Growth Fund (Class 2). (5) Management fees have been restated to reflect contractual changes to the investment management fee rates. (6) Other expenses have been restated to reflect contractual changes to certain fees paid by the Fund. (7) Through April 30, 2015, the Advisor has contractually agreed to waive all or a portion of its management fee and reimburse or pay certain operating expenses of the portfolio to the extent necessary to maintain the portfolio s total annual operating expenses at ratios no higher than 0.57% for Class B shares, excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest expense and acquired funds (underlying funds) fees and expenses (estimated at 1.23%). These agreements may only be terminated with the consent of the fund s Board. After fee waivers and/or reimbursements, net expenses would be 1.80%. (8) The Portfolio s Other Expenses have been estimated to reflect expenses expected to be incurred during the first fiscal year. In addition, the Investment Adviser has agreed to (i) waive all of its Management Fees, and (ii) reduce or limit Other Expenses (excluding acquired fund fees and expenses, transfer agency fees and expenses, taxes, interest, brokerage fees, shareholder meeting, litigation, indemnification and extraordinary expenses) to 0.204% of the Portfolio s average daily net assets. Each arrangement will remain in effect through at least April 30, 2015, and prior to such date the Investment Adviser may not terminate the arrangement without the approval of the Board of Trustees. After fee waivers and reimbursements, net expenses would be 1.52%. (9) Invesco Advisers, Inc. ( Invesco or the Adviser ) has contractually agreed to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series II shares to 1.01% of the Fund s average daily nets assets. In determining the Adviser s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) extraordinary or non-routine items, including litigation expenses; (v) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Acquired fund fees and expenses are also excluded in determining such obligation. Invesco has also contractually agreed to waive a portion of the Fund s management fee in an amount equal to the net management fee that Invesco earns on the Fund s investments in certain affiliated funds. This waiver will have the effect of reducing acquired fund fees and expenses that are indirectly borne by the Fund. Unless Invesco continues the fee waiver agreements, they will terminate on April 30, The fee waiver agreements cannot be terminated during their terms. After fee waivers and/or expense reimbursements, net expenses would be 1.05%. (10) After a voluntary expense waiver and/or reimbursement, net expenses would be 0.97%. (11) Janus Capital has contractually agreed to waive its investment advisory fee and/or reimburse Portfolio expenses to the extent that the Portfolio s total annual fund operating expenses (excluding any expenses of an underlying fund (acquired fund fees and expenses), distribution and shareholder servicing fees, administrative services fees payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, and extraordinary expenses) exceed 0.14% until at least May 1, The contractual waiver may be terminated or modified at any time prior to this date only at the discretion of the Board of Trustees. After fee waivers and/or reimbursements, net expenses would be 1.22%. (12) The Investment Manager has contractually agreed to waive its fee and, if necessary, reimburse the Portfolio through April 30, 2015, to the extent total annual portfolio operating expenses exceed 1.05% (13) The Portfolios Adviser, Morgan Stanley Investment Management Inc., has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.15%. In addition, the Portfolio s Distributor, Morgan Stanley Distribution Inc., has agreed to waive 0.25% of the 0.35% 12b-1 fee that it may receive. These fee waivers and/or expense reimbursements will continue for at least one year or until such time as the Board of Directors of The Universal Institutional Funds, Inc. acts to discontinue all or a portion of such waivers and/or reimbursements when it deems that such action is appropriate. (14) Other expenses, which includes dividend and interest expenses relating to short sales, are based on estimated expenses for the current fiscal year; actual expenses may vary. In addition, Neuberger Berman Management LLC ( NBM ) has contractually undertaken to waive and/or reimburse certain fees and expenses of Class S so that the total annual operating expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, dividend and interest expenses related to short sales, and extraordinary expenses, if any) are limited to 2.40% of average net assets. This undertaking lasts until 12/31/2017 and may not be terminated during its term without the consent of the Board of Trustees. The Fund has agreed that Class S will repay NBM for fees and expenses waived or reimbursed for the class provided that repayment does not cause annual operating expenses to exceed 2.40% of the average net assets. Any such repayment must be made within three years after the year in which NBM incurred the expense. After fee waivers and/or reimbursements, net expenses would be 2.73%. (15) Neuberger Berman Management LLC ( NBM ) has undertaken through Dec. 31, 2017, to waive fees and/or reimburse certain operating expenses, including the compensation of NBM and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 1.17% of the average daily net asset value. The expense limitation arrangements for the Portfolio are contractual and any excess expenses can be repaid to NBM within three years of the year incurred, provided such recoupment would not cause a Portfolio to exceed its respective limitation. (16) The Manager has contractually agreed to waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund s investment in funds managed by the Manager or its affiliates. This fee waiver and/or expense reimbursement may not be amended or withdrawn until one year from the date of the Fund s prospectus, unless approved by the Board. After fee waivers and/or reimbursements, net expenses would be 0.97%. 10 RIVERSOURCE RETIREMENT GROUP ANNUITY CONTRACT II PROSPECTUS