[AETNA logo]
Ex-99-B.4.28
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Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
You may call the toll-free number shown
above if you have questions on this Contract.
Aetna Life Insurance and Annuity Company,
herein called Aetna, agrees to pay the
benefits stated in this Contract.
Specifications
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Plan
Higher Education
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Type of Plan
Retirement Plan for Higher Education
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Contract Holder
Specimen
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Contract No.
Specimen
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Effective Date
Specimen
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This Contract is Delivered in Anystate and is Subject to the Laws of that
Jurisdiction.
THE VARIABLE FEATURES OF THIS CONTRACT ARE DESCRIBED IN PARTS III AND V.
Right to Cancel
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The Contract Holder may cancel this Contract within 10 days of receiving it by
returning this Contract along with a written notice to Aetna at the above
address or to the agent from whom it was purchased. Within 7 days after it
receives the notice of cancellation and this Contract at its Home Office, Aetna
will return the entire consideration paid plus any increase or minus any
decrease in the current value of any funds allocated to the Separate Account.
Signed at the Home Office on the Effective Date.
/s/ Xxxxxx X. XxXxxxxxx /s/ Xxxx X. Xxxxxxx
President Secretary
Individual Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THIS ANNUITY CONTRACT, WHEN BASED ON
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED
AS TO FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA
DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
I-CDA-98(ORP)
Specifications
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Guaranteed There is a guaranteed interest rate for
Interest Rate Contribution(s) held in the Fixed Plus Account and
the GA Account. (See Contract Schedule I.)
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Deductions from There will be deductions for mortality and expense
the Separate risks. There also may be deductions for
Account administrative charges and asset based sales
charges. (See 3.05 and 5.06.)
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Deduction from Contribution(s) are subject to a deduction for
Contribution(s) premium taxes, if any. (See 3.01.)
This Contract is a legal contract. This Contract and any attached document and
subsequent endorsements constitutes the entire legal relationship between Aetna
and the Contract Holder.
This Contract sets forth, in detail, all of the rights and obligations of both
you and Aetna. IT IS, THEREFORE, IMPORTANT THAT YOU READ THIS CONTRACT
CAREFULLY.
2
Contract Schedule I
Accumulation Period
Separate Account
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Separate Account: Variable Annuity Account C
Charges to A daily charge is deducted from any portion of the
Separate Account: Current Value allocated to the Separate Account.
The daily charge is at an annual effective rate of [1.25%]
for Annuity mortality and expense risks, [0.15%] for asset
based sales charge and a daily administrative charge which
will not exceed [0.25%] on an annual basis.
The daily charge for the Aetna GET Fund Guarantee will be
at an annual rate of [0.25%].
Fixed Plus Account [Is Available]
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Minimum Guaranteed [3%] (effective annual rate of return).
Interest Rate:
Partial Withdrawal: The [20%] limit applicable to partial withdrawal
from the Fixed Plus Account will be waived when the
withdrawal is:
(a) due to the Participant's death, (and made within
[six (6)] months of the Participant's date of
death), before Annuity payments begin. This partial
withdrawal may only be exercised once; or
(b) used to purchase Annuity benefits.
Guaranteed Accumulation Account (GA Account) [Is Available]
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Minimum Guaranteed [3%] (effective annual rate of return).
Interest Rate:
i
Contract Schedule I
Accumulation Period (Cont'd)
Separate Account,
Fixed Plus Account
and GA Account
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Loans: [Are Available]
Loan Interest Rate: [6%] on an annual basis.
Systematic [Is Available]
Withdrawal Option
(SWO):
The Specified Payment may not be greater than [20%] of the
Individual Account's Current Value at the time of election.
The Specified Period may not be less than [five years].
The Specified Percentage may not be greater than [20%].
Estate Conservation [Is Available]
Option (ECO):
Life Expectancy [Is Available]
Option (XXX):
See Section 1. - DEFINITIONS for explanations.
ii
Contract Schedule II
Annuity Period
Separate Account
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Fund Transfers: Maximum number of allowable transfers in the Annuity
Period is [4].
Charges to A daily charge at an annual effective rate of
Separate Account: [1.25%] for Annuity mortality and expense risks.
The administrative charge is established upon election of
an Annuity option. This charge will not exceed [0.25%].
Variable Annuity If a Variable Annuity is chosen, an assumed annual net
Assumed Annual Net return rate of [5.0%] may be elected. If [5.0%] is not
Return elected, Aetna will use an assumed annual net Rate: return
rate of [3.5%].
The assumed annual net return rate factor for [3.5%] per
year is [0.9999058].
The assumed annual net return rate factor for [5.0%] per
year is [0.9998663].
If the portion of a Variable Annuity payment for any Fund
is not to decrease, the Annuity return factor under the
Separate Account for that Fund must be:
(a) [4.75%] on an annual basis plus an annual return of
up to [0.25%] to offset the administrative charge
set at the time Annuity payments commence if an
assumed annual net return rate of [3.5%] is chosen;
or
(b) [6.25%] on an annual basis plus an annual return of
up to [0.25%] to offset the administrative charge
set at the time Annuity payments commence, if an
assumed annual net return rate of [5%] is chosen.
Annuity Option: Under the option "Payments for a Stated Period of
Time":
For amounts invested in the GA Account or one or more of
the Fund(s), the number of years must be at least [five
(5)] and not more than [thirty (30)] and the Annuity may be
a Fixed or Variable Annuity.
For amounts invested in the Fixed Plus Account, the number
of years must be at least [five (5)] and not more than
[thirty (30)] and the Annuity must be a Fixed Annuity.
Xxxxx Xxxxxxx
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Minimum Guaranteed [3%] (effective annual rate of return).
Interest
Rate:
See Section 1. - DEFINITIONS for explanations.
iii
TABLE OF CONTENTS
I. DEFINITIONS
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Page
1.01 Accumulation Period ................................ 6
1.02 Adjusted Current Value ............................. 6
1.03 Aetna GET Fund Offering Period ..................... 6
1.04 Aetna GET Fund Guaranteed Period ................... 6
1.05 Aetna GET Fund Maturity Date ....................... 6
1.06 Annuitant .......................................... 6
1.07 Annuity ............................................ 6
1.08 Beneficiary ........................................ 7
1.09 Code ............................................... 7
1.10 Contract Holder .................................... 7
1.11 Contribution ....................................... 7
1.12 Current Value ...................................... 7
1.13 Deposit Period ..................................... 7
1.14 Fixed Plus Account ................................. 7
1.15 Fixed Plus Account Guaranteed Interest Rate ........ 7
1.16 Fixed Annuity ...................................... 7
1.17 Fund(s) ............................................ 7
1.18 Fund Transfer(s) ................................... 7
1.19 General Account .................................... 8
1.20 Guaranteed Accumulation Account (GA Account) ....... 8
1.21 GA Account Guaranteed Interest Rate ................ 8
1.22 Guaranteed Term .................................... 8
1.23 Individual Account ................................. 8
1.24 Loan Account ....................................... 9
1.25 Loan Effective Date ................................ 9
1.26 Loan Interest Rate ................................. 9
1.27 Market Value Adjustment (MVA) ...................... 9
1.28 Matured Term Value ................................. 9
1.29 Matured Term Value Transfer ........................ 9
1.30 Maturity Date ...................................... 9
1.31 Net Contribution ................................... 9
1.32 Nonunitized Separate Account ....................... 10
1.33 Participant ........................................ 10
1.34 Plan ............................................... 10
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Page
1.35 Reinvestment ....................................... 10
1.36 Separate Account ................................... 10
1.37 Valuation Date ..................................... 10
1.38 Valuation Period ................................... 10
1.39 Variable Annuity ................................... 11
II. GENERAL PROVISIONS
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2.01 Change of Contract ................................. 11
2.02 Change of Fund ..................................... 11
2.03 Nonparticipating Contract .......................... 11
2.04 Payments ........................................... 11
2.05 State Laws ......................................... 12
2.06 Control of Contract ................................ 12
2.07 Designation of Beneficiary ......................... 12
2.08 Misstatements and Adjustments ...................... 12
2.09 Incontestability ................................... 12
2.10 Grace Period ....................................... 13
III. CONTRIBUTIONS, CURRENT VALUE, and WITHDRAWAL PROVISIONS
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3.01 Net Contribution(s) ................................ 13
3.02 Experience Credits ................................. 13
3.03 Fund Record Units .................................. 13
3.04 Fund Record Unit Value ............................. 13
3.05 Fund Net Return Factors ............................ 13
3.06 Market Value Adjustment ............................ 14
3.07 Fund Transfer(s) ................................... 16
3.08 Aetna GET Fund Offering Period ..................... 17
3.09 Aetna GET Fund Guarantee ........................... 17
3.10 Aetna GET Fund Maturity Date ....................... 17
3.11 Loans .............................................. 17
3.12 Notice to the Participant .......................... 19
3.13 Xxxxxx and Timing of Distributions ................. 20
3.14 Withdrawal ......................................... 20
3.15 Partial Withdrawal from the Fixed Plus Account ..... 21
3.16 Payment of Fixed Plus Account Full Withdrawal ...... 21
3.17 Amount Payable at Death (Before Annuity
Payments Start) ................................... 22
3.18 Reinstatement ...................................... 23
4
IV. NON-ANNUITY DISTRIBUTION OPTIONS
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Page
4.01 Distribution Options .............................. 24
4.02 Estate Conservation Option ........................ 25
4.03 Life Expectancy Option ............................ 25
4.04 Systematic Withdrawal Option ...................... 26
V. ANNUITY PROVISIONS
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5.01 General Provisions ................................ 27
5.02 Annuity Options ................................... 28
5.03 Payments .......................................... 29
5.04 Investment Option ................................. 29
5.05 Fund Annuity Units ................................ 30
5.06 Fund Annuity Unit Value ........................... 30
5.07 Fund Annuity Net Return Factor .................... 31
5.08 Fund Transfers During the Annuity Period .......... 31
5.09 Death Benefit ..................................... 32
5
I. DEFINITIONS
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1.01 Accumulation The period during which Net Contribution(s) are
Period: applied to an Individual Account.
1.02 Adjusted The Current Value (See 1.12) of an Individual
Current Value: Account (See 1.23) plus or minus any applicable
aggregate GA Account Market Value Adjustment.
(See 3.06).
1.03 Aetna GET Fund The period, usually from one to three months,
Offering during which Participants may transfer or
Period: deposit amounts to an Aetna GET Fund series.
(Offering Each Aetna GET Fund series has a specified
Period) Offering Period. Amounts transferred or
deposited prior to the date on which the Guaranteed
Period begins are invested in money market
instruments.
Aetna reserves the right to state the minimum amount a
Participant may transfer or deposit to each Offering
Period. Aetna also reserves the right to extend an
Offering Period or accept Fund transfers or deposits
to an Aetna GET Fund series during the series'
Guaranteed Period.
1.04 Aetna GET Fund For each Aetna GET Fund series, the period for
Guaranteed which the Aetna GET Fund Guarantee applies.
Period: The Guaranteed Period ends on the Maturity Date.
(Guaranteed
Period)
1.05 Aetna GET Fund The date on which a series' Guaranteed Period
Maturity ends and GET Fund Record Units for the series
Date: are liquidated.
(Maturity Date)
1.06 Annuitant: If an Annuity provides lifetime benefits, the person
whose life expectancy determines the amount and/or
duration of Annuity benefit payments.
1.07 Annuity: Payment of an income under the Annuity
Provisions of Section V:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.08 Beneficiaries: The person(s) named to receive any benefits
which remain under the Contract after the
Participant's death. Participant designates a
Beneficiary for the Individual Account. (See
2.07)
1.09 Code: The Internal Revenue Code of 1986, as amended.
1.10 Contract The entity or person, named on the cover of
Holder: this Contract, to which the Contract is
issued. Contractholder may also be the
Participant.
6
1.11 Contribution: A payment received at Aetna's Home Office and
allocated to this Contract. The payment must be made
in accordance with the Code and the terms of the Plan.
1.12 Current Value: For an Individual Account (See 1.23), the
Current Value is the total of:
(a) The amount, if any, in the Fixed Plus Account,
with interest earned to date;
(b) The amount, if any, in the GA Account, with
interest earned to date; and
(c) The value of all Fund Record Units (See 3.03), if
any, as of the most recent Valuation Period.
1.13 Deposit Period: A calendar month, a calendar quarter, or any other
period of time specified by Aetna during which Net
Contribution(s), Fund Transfers and Reinvestments are
accepted into the GA Account for one or more
Guaranteed Terms.
1.14 Fixed Plus If offered as an investment option under the
Account: Contract (see Contract Schedule I) the Fixed
Plus Account is an accumulation option with a
guaranteed minimum interest rate. Aetna may
credit a higher rate which is not guaranteed.
The portion that may be withdrawn or
transferred in a 12 month period is restricted
(See 3.07, 3.15 and 3.16).
1.15 Fixed Plus If the Fixed Plus Account is an investment option
Account under the Plan (see Contract Schedule I) then Aetna
Guaranteed will add interest at an annual rate no less than that
Interest Rate: shown on Contract Schedule I on any Net
Contribution(s) to the Fixed Plus Account. Aetna may
add interest at a higher rate determined by its Board
of Directors.
1.16 Fixed Annuity: An Annuity with payments that do not vary in
amount.
1.17 Fund(s): The open-end registered management investment
companies whose shares are purchased by the Separate
Account to fund the benefits provided by the Contract.
Each Aetna GET Fund series is a separate Fund.
1.18 Fund Transfers: The movement of invested amounts among the available
Fund(s); the Fixed Plus Account (if available) and the
GA Account (if available).
1.19 General The account holding the assets of Aetna, other
Account: than those assets held in Aetna's Separate
Account(s) and Nonunitized Separate Account(s).
1.20 Guaranteed If offered as an investment option under the Contract
Accumulation (see Contract Schedule I), the Guaranteed Accumulation
Account Account (GA Account) is an accumulation option where
(GA Account): Aetna guarantees stipulated rate(s) of interest for a
specified period of time. All assets of Aetna,
including amounts in the Nonunitized Separate Account,
are available to meet the guarantees for the GA
Account.
7
1.21 GA Account If the GA Account is an investment option under
Guaranteed the Contract (see Contract Schedule I) then
Interest Rate: Aetna will declare the interest rate(s)
applicable to a specific Guaranteed Term at the start
of the Deposit Period for that Guaranteed Term. The
rate(s) are guaranteed by Aetna for that Deposit
Period and the ensuing Guaranteed Term. The Guaranteed
Interest Rates are annual effective yields. That is,
interest is credited at a rate that will produce the
Guaranteed Interest Rate over the period of a year. No
Guaranteed Interest Rate will ever be less than the
Minimum Guaranteed Interest Rate shown on Contract
Schedule I.
For Guaranteed Terms of one year or less, one
Guaranteed Interest Rate is credited for the full
Guaranteed Term. For longer Guaranteed Terms, an
initial Guaranteed Interest Rate is credited from the
date of deposit to the end of a specified period
within the Guaranteed Term. There may be different
Guaranteed Interest Rate(s) declared for subsequent
specified time intervals throughout the Guaranteed
Term.
1.22 Guaranteed The period of time for which GA Account
Term: Guaranteed Interest Rates are guaranteed on Net
Contributions, Fund Transfers and Reinvestments
made into a current Deposit Period for the GA
Account. Such period begins on the day
following the close of the Deposit Period and
ends on the designated Maturity Date.
Guaranteed Terms are offered at Aetna's
discretion for various lengths of time ranging
up to and including ten years and are
classified as follows:
Short-term. Three (3) or fewer years. Amounts
allocated to a short-term Term are held in the General
Account. Long-term. More than three (3) years, but not
more than ten (10). Amounts allocated to a long-term
Term are held in the Nonunitized Separate Account.
During a Deposit Period, Aetna may make available any
number of Guaranteed Terms. The Participant may
allocate Net Contributions and Fund Transfers into any
or all of the available Guaranteed Terms.
1.23 Individual This Contract is issued to the Contract
Account: Holder. However, Aetna will maintain an
Individual Account for the Participant to keep a
record of Current Value (See 1.12) and transactions.
These may include:
(a) An Employer Account: This Individual Account will
be credited with employer Net Contribution(s) and
transferred amounts of 401(a) or 403(a) funds,
attributable to employer contributions; and
(b) An Employee Account: This Individual Account will
be credited with employee Net Contribution(s),
specifically amounts subject to Code Section
414(h) and transferred amounts of 401(a) or 403(a)
funds, attributable to 414(h) contributions and
any after tax contributions.
1.24 Loan Account: For each loan taken by a Participant,
the loan amount transferred from the investment
options is credited to the Loan Account.
8
1.25 Loan Effective The date on which Aetna receives a loan
Date: agreement in good order at its home office.
1.26 Loan Interest The interest rate Aetna charges on a loan,
Rate: (see Contract Schedule I).
1.27 Market Value An adjustment to the amount withdrawn or
Adjustment transferred from a GA Account Guaranteed Term
(MVA): prior to the end of that Guaranteed Term. The
adjustment reflects the change in the value of the
investment due to changes in interest rates since the
date of deposit and is computed using the formula
given in 3.06. The adjustment is expressed as a
percentage of each dollar being withdrawn.
1.28 Matured Term The amount payable on a GA Account Guaranteed
Value: Term's Maturity Date.
1.29 Matured Term During the calendar month following a GA
Value Transfer: Account Maturity Date, the Participant may
notify Aetna's Home Office in writing to
transfer or withdraw all or part of the Matured
Term Value, plus interest at the new Guaranteed
Rate accrued thereon, from the GA Account
without an MVA. This provision only applies to
the first such written request received from
the Participant during this period for any
Matured Term Value.
1.30 Maturity Date: The last day of a GA Account Guaranteed Term.
1.31 Net A Contribution less any applicable premium
Contribution: taxes.
1.32 Nonunitized An account established by Aetna under Section
Separate 38a-433 of the Connecticut General Statutes
Account: that holds assets for GA Account Terms (See
1.22) greater than three years. The Contract Holder or
Participant does not participate in the investment
gain or loss from the assets held in the Nonunitized
Separate Account. Such gain or loss is borne entirely
by Aetna. Assets in this account may be charged with
liabilities arising out of any other Aetna business.
1.33 Participant: A person who participates in the Plan named on
the cover of this Contract.
1.34 Plan: The Plan named on the cover of this Contract
and established under Section 401(a) or 403(a)
of the Code.
9
1.35 Reinvestment: Aetna will mail a notice to the Participant at
least 18 calendar days before a Guaranteed
Term's Maturity Date. This notice will contain
the Guaranteed Terms available during the
current Deposit Periods with their Guaranteed
Interest Rate(s) and projected Matured Term
Value. If no specific direction is given by
the Participant prior to the Maturity Date,
each Matured Term Value will be reinvested in
the current Deposit Period for a Guaranteed
Term of the same duration. If a Guaranteed
Term of the same duration is unavailable, each
Matured Term Value will automatically be
reinvested in the current Deposit Period for
the next shortest Guaranteed Term available in
the same classification. If no shorter
Guaranteed Term is available, the next longer
Guaranteed Term will be used. Aetna will mail
a confirmation statement to the Participant,
the next business day after the Maturity Date.
This notice will state the Guaranteed Term and
Guaranteed Interest Rate(s) which will apply to
the reinvested Matured Term Value.
1.36 Separate An account, established by Aetna under Section
Account: 38a-433 of the Connecticut General Statutes,
that buys and holds shares of the Fund(s) available
under this Contract. Income, gains or losses, realized
or unrealized are credited or charged to the Separate
Account without regard to other income, gains or
losses of Aetna. Aetna owns the assets held in the
Separate Account and is not a trustee of such amounts.
Amounts in the Separate Account are not generally
guaranteed and are held at market value. The assets of
the Separate Account, to the extent of reserves and
other contract liabilities of the Separate Account,
cannot be charged with other Aetna liabilities.
1.37 Valuation Date: The date and time on which a Fund annuity unit
value and a Fund record unit value are
calculated. Currently, this calculation will
be determined at the close of business of the
New York Stock Exchange on any normal business
day, Monday through Friday, that the New York
Stock Exchange is open.
1.38 Valuation The period of time commencing at the end of one
Period: Valuation Date and ending at the end of the
next Valuation Date.
1.39 Variable An Annuity with payments that vary with the net
Annuity: investment results of the Funds available
during the Annuity period.
II. GENERAL PROVISIONS
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2.01 Change of Only an authorized officer of Aetna may change
Contract: the terms of this Contract. Aetna reserves the
right to modify this Contract to meet the requirements
of applicable state and federal laws or regulations.
Aetna will notify the Contract Holder in writing of
any changes.
10
2.01 Change of Aetna may change the tables for determining the
Contract amount of Annuity benefit payments attributable
(Cont'd): only to Contributions accepted after the
effective date of change, without Contract Holder
consent. Such a change will not become effective
earlier than twelve months after (1) the effective
date of the Contract, or (2) the effective date of a
previous change. Aetna will notify the Contract Holder
in writing at least thirty days before the effective
date of the change. Aetna may not make Contract
changes which adversely affect the Annuity benefits
attributable to Contributions already made to the
Contract.
2.02 Change of Fund: The assets of the Separate Account are segregated by
Fund. If the shares of any Fund are no longer
available for investment by the Separate Account or if
in our judgment, further investment in such shares
should become inappropriate in view of the purpose of
the Contract, Aetna may cease to make such Fund shares
available for investment under the Contract
prospectively, or Aetna may substitute shares of
another Fund for shares already acquired. Aetna may
also, from time to time, add additional Funds. Any
elimination, substitution or addition of Funds will be
done in accordance with applicable state and federal
securities laws. Aetna reserves the right to
substitute shares of another Fund for shares already
acquired without a proxy vote.
2.03 Nonparticipating The Contract Holder, Participant, or Beneficiaries
Contract: will not have a right to share in the earnings of
Aetna.
2.04 Payments: (a) Aetna will make distributions as directed by the
Contract Holder, provided the distributions are
made in accordance with the terms of the Plan.
Aetna will determine the amount of payments based
on the Individual Account's Current Value as of
the date on which a request is received in good
order at Aetna's Home Office. Payments will be
made within seven (7) calendar days of receipt of
a written request in good order at Aetna's Home
Office.
(b) Aetna may defer payments: (1) for a period of up
to six (6) months (unless not allowed by state
law); and (2) as allowed by federal law.
2.05 State Laws: This Contract complies with the laws of the
state in which it is delivered. Any cash,
death or Annuity payments are equal to or
greater than the minimum required by such
laws. Annuity tables for legal reserve
valuation shall be as required by state law.
Such tables may be different from Annuity
tables used to determine Annuity payments.
2.06 Control of This Contract is designed to fund a Plan which
Contract: provides for retirement income.
The Contract Holder may, by written direction to
Aetna, allow the Participant to select the investment
options of the Employer and/or Employee Accounts.
Choices made under this Contract must be in writing or
in a form satisfactory to Aetna. Until receipt of such
choices in its Home Office, Aetna may rely on any
previous choices made.
11
2.06 Control of (a) Nontransferable and Nonassignable: This Contract
Contract and the Individual Account are nontransferable and
(Cont'd): nonassignable, except to Aetna in the event of a
loan, or pursuant to a "qualified domestic
relations order" as set forth under the Internal
Revenue Code of 1986, as it may be amended from
time to time.
(b) Distributions: A Participant may apply for a
distribution from his or her Employee Account or
Employer Account. The distribution is subject to
the terms of the Plan.
(c) Participant Rights/Employee Account: The
Participant has a nonforfeitable right to the
value of his or her Employee Account pursuant to
the terms of the Plan.
(d) Participant Rights/Employer Account: The
Participant has a nonforfeitable right to the
value of his or her Employer Account pursuant to
the terms of, and to the extent of his or her
vested percentage under the Plan.
2.07 Designation of The Participant shall designate a Beneficiary,
Beneficiary: in accordance with the terms of the Plan.
2.08 Misstatements If Aetna finds the age of any payee to be
and misstated, the correct facts will be used to
Adjustments: adjust payments.
2.09 Incontest- Aetna cannot cancel this Contract because of any error
ability: of fact.
2.10 Grace Period: This Contract will remain in effect even if
Contributions are not continued.
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS
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3.01 Net The Net Contribution equals the actual Contribution
Contribution(s): less any applicable premium tax. Generally, Aetna will
deduct the premium tax when Annuity benefits are
purchased (See Section V). If Aetna determines that
under applicable state law, it must pay a premium tax
when the Contribution is received, or at any other
time, it may deduct the tax at that time. The Net
Contribution(s) may be allocated among the following
investment options:
(a) The Fixed Plus Account (if available); and
(b) The current Deposit Period(s) for Guaranteed Terms
under the GA Account (if available); and
(c) The Fund(s) in which the Separate Account invests.
3.01 Net Aetna must be told the percentage of all Net
Contribution(s) Contributions to allocate to one or more of the
(Cont'd): investment options. Aetna reserves the right
to require a minimum Contribution amount.
12
Aetna reserves the right not to accept any
Contribution.
3.02 Experience Aetna may apply experience credits under this
Credits: Contract. Any such credits will be computed as
decided by Aetna.
3.03 Fund Record The portion of the Net Contribution(s) applied
Units: to each Fund under the Separate Account will
determine the number of Fund record units credited to
the Individual Account for that Fund. This number is
equal to the Net Contribution applied to the Fund
divided by the Fund record unit value (See 3.04) for
the Valuation Period in which the Contribution is
received in good order.
3.04 Fund Record A Fund record unit value is computed by
Unit Value: multiplying the net return factor (See 3.05)
for the current Valuation Date by the Fund record unit
value for the previous Valuation Date. The dollar
value of a Fund record unit, Separate Account assets,
and Variable Annuity payments may go up or down due to
investment gain or loss.
3.05 Fund Net The net return factor(s) are used to compute all
Return Factors: Separate Account record units for any Fund. The net
return factor for each Fund is equal to 1.0000000 plus
the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period,
minus
(b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation
Period, plus or minus
(c) Taxes (or reserves for taxes) on the Separate
Account (if any); divided by
(d) The total value of the Fund record units and Fund
annuity units of the Separate Account at the start
of the Valuation Period; minus
(e) A Separate Account charge at an annual effective
rate as shown on Contract Schedule I for Annuity
mortality and expense risks, asset based sales
charge, if any and a daily administrative charge
which will not exceed the amount shown on Contract
Schedule I on an annual basis. The administrative
charge may be changed annually except for amounts
which have been used to purchase an Annuity; minus
3.05 Fund Net (f) A fee for the Aetna GET Fund Guarantee which is
Return Factors deducted daily during the Guaranteed Period. The
(Cont'd): fee, which is determined prior to the beginning of
each series' Offering Period, is as shown on
Contract Schedule I.
13
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the net
assets of the Fund divided by the number of shares
outstanding.
3.06 Market Value (a) An MVA will be applied to any withdrawal from a GA
Adjustment Account Term before the Maturity Date due to:
(MVA):
(1) A Fund Transfer;
(2) A full or partial withdrawal, except for an
amount paid under ECO (See 4.01); or
(3) A payment of a premium for Annuity Option 1.
The amount of the withdrawal will be adjusted to a
market value amount as described in (b).
(b) Market value adjusted amounts will be equal to the
amount withdrawn multiplied by the following
ratio:
x
---
365
(1 + i)
-----------
x
---
365
(1 + j)
Where:
i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining,
(computed from Wednesday of the week
of withdrawal) in the Term.
(c) The Deposit Period Yield will be determined as
follows:
(1) At the close of the last business day of each
week of the Deposit Period, a yield will be
computed as the average of the yields on that
day of U.S. Treasury Notes which mature in the
last three months of the Term.
3.06 Market Value (2) The Deposit Period Yield is the average of
Adjustment those yields for the Deposit Period. If
(MVA) (Cont'd): withdrawal is made prior to the close of the
Deposit Period, it is the average of those
yields on each week preceding withdrawal.
14
(3) The Current Yield is the average of the yields
on the last business day of the week preceding
withdrawal on the same U.S. Treasury Notes
included in the Deposit Period Yield.
(4) In the event that no U.S. Treasury Notes which
mature in the last three months of the Term
exist, Aetna reserves the right to use the
U.S. Treasury Notes that mature in a following
quarter.
(d) If a lump-sum distribution or Annuity Option is
elected six months or more after Participant's
death, the Beneficiary will receive the Account
Value, plus or minus any MVA that would apply to
any portion of the Account allocated to GAA. If a
full or partial withdrawal is made within six
months after Participant's death, the Beneficiary
will receive the Account Value, plus any positive
MVA that would apply to any portion of the Account
allocated to GAA. The value of the Account is
determined as of the Valuation Date on which proof
of death acceptable to us and a request for
payment are received at our Home Office.
(e) After the six month period, the withdrawal or Fund
Transfer will be the aggregate MVA amount (i.e.,
including all MVAs).
(f) The greater of the aggregate MVA amount or the
applicable portion of the Current Value in the GA
Account is applied to amounts withdrawn from the
GA Account for payment of a premium under Annuity
options 2 or3.
3.07 Fund All or any portion of the Adjusted Current
Transfer(s): Value of the Individual Account (subject to the
limitations described below) may be transferred from
any Fund, the Fixed Plus Account (if available) or the
GA Account (if available):
(a) To any Fund; or
(b) To the Fixed Plus Account (if available); or
(c) To any Guaranteed Term of the GA Account (if
available) with a different classification
available in the Current Deposit Period.
Fund Transfer requests can be submitted as a
percentage or as a dollar amount. Aetna may establish
a minimum Fund Transfer amount. Within a Guaranteed
Term classification, the amount transferred will be
withdrawn from the oldest Deposit Period, then from
the next oldest, and so on until the amount requested
is satisfied.
3.07 Fund Amounts applied to Guaranteed Terms of the GA
Transfer(s) Account may not be transferred to the Funds,
(Cont'd): the Fixed Plus Account or to another Guaranteed
Term during the Deposit Period or 90 days after the
close of the Deposit Period except for Matured Term
Value(s) during the calendar month following the
Term's Maturity Date.
15
Fund Transfers from Guaranteed Terms of the GA Account
are subject to the MVA provisions of 3.06.
During each rolling twelve (12) month period, up to
20% of the Fixed Plus Account value may be transferred
to one or more of the Fund(s), and/or the GA Account's
then-current Deposit Period. The 20% limit is reduced
by any partial withdrawals, Fund Transfers or amounts
taken as a loan or used to purchase an Annuity during
the twelve (12) month period. Aetna reserves the right
to include amounts paid under ECO, XXX and SWO
provisions for purposes of applying this 20% limit.
This limit is waived when the balance in the Fixed
Plus Account is $1,000 or less on the date the Fund
Transfer request is received in good order at Aetna's
Home Office.
The Participant may make an unlimited number of Fund
Transfers during the Accumulation Period.
A Fund Transfer or withdrawal from an Aetna GET Fund
series before the Maturity Date will be based on the
GET Fund Record Unit Value for the next Valuation
Period following the date on which Aetna receives a
transfer request in good order at its home office.
3.08 Aetna GET Fund Aetna will specify a minimum total asset amount
Offering required at the end of an Offering Period to
Period: offer an Aetna GET Fund series. If the minimum
is not achieved, Aetna reserves the right to
not start the Guaranteed Period.
If an Aetna GET Fund series is terminated, Aetna will
send written notification of the termination to the
Participant if he or she has made Fund Transfers or
deposits to that Aetna GET Fund Series. Notice will be
mailed no later than 15 calendar days after the end of
the Offering Period. The Participant then has 45 days
from the end of the Offering Period to redirect
amounts in the terminated Aetna GET Fund series to one
or more investment options available under the
Contract. During this time, Funds are invested in
money market instruments. If no election is made by
the end of the 45-day Period, at the next Valuation
Period, Aetna will transfer the amount in the
terminated Aetna GET Fund series to the money market
fund.
Aetna reserves the right to specify a maximum total
asset amount for an Aetna GET Fund series. If the
maximum is achieved, Aetna also reserves the right to
set a date on which it will stop accepting Fund
Transfers or deposits for that Aetna GET Fund series.
Aetna will announce the date on which it will stop
accepting Fund Transfers and deposits ten calendar
days prior to that date.
16
3.09 Aetna GET Fund On the Maturity Date of each Aetna GET Fund
Guarantee: series, the GET Fund Record Unit Value for that
series will not be less than the GET Fund Record Unit
Value determined at the beginning of the Guaranteed
Period. If necessary, Aetna will transfer funds from
its General Account to the Aetna GET Fund series to
offset any shortfall in the GET Fund Record Unit
Value. The Aetna GET Fund Guarantee does not apply to
withdrawals or Transfers made before the Maturity
Date.
If Aetna GET Fund Record Units are adjusted at any
time during an Aetna GET Fund Guaranteed Period, the
Aetna GET Fund Guarantee will be restated. The
restated Aetna GET Fund Guarantee will be calculated
so that it is not less than the original Aetna GET
Fund Guarantee for that series.
3.10 Aetna GET Fund Prior to the Maturity Date for each Aetna GET
Maturity Date: Fund series, Aetna sends a written notice of
the date to the Participant if he or she has Current
Value in that series. The Participant must then inform
Aetna of the investment option(s) to which to transfer
that Current Value. If a Participant does not make an
election, on the Maturity Date Aetna will transfer the
Current Value to the then available Aetna GET Fund
series' Offering Period. If no Offering Period is
available, Aetna will transfer the Current Value to
the fund or funds designated by Aetna.
3.11 Loans: If loans are included as an option under the
Contract (See Contract Schedule I), then the following
will apply.
During the accumulation period, loans are granted (1)
as permitted under applicable law; (2) subject to the
terms of the Plan; (3) subject to the terms and
conditions of the loan agreement; and, (4) in
accordance with the following provisions.
(a) Amount available for loan: The amount available
for loan is limited to the vested Individual
Account Current Value attributable to Participant
Contributions, plus any amounts allowed by the
Plan. Amounts available from some investment
options may be subject to limitations specified in
the loan agreement. To obtain the loan amount
requested, these limitations may require the
Participant to transfer funds. A Market Value
Adjustment may apply to amounts transferred.
The minimum loan amount is defined in the loan
agreement. The maximum loan amount is the lesser
of:
(1) Fifty percent (50%) of the vested Individual
Account Current Value, including any Loan
Account, reduced by the amount of any
outstanding loan balance on the Loan Effective
Date; or
(2) Fifty thousand dollars ($50,000) reduced by
the highest outstanding loan balance for the
preceding 12 months.
17
3.11 Loans (Cont'd): The amount of all outstanding loans cannot exceed
$50,000.
(b) The Loan Interest Rate is specified on Contract
Schedule I.
(c) Earned interest: The Loan Account is credited with
interest at a rate which is not less than the Loan
Interest Rate, less 3%, on an annual basis.
(d) Loan repayment: Repayment is as set forth in the
loan agreement, or a Participant may repay a loan
in full at any time.
(e) Amount available for partial surrender while a
loan is outstanding: While a loan is outstanding,
the amount available for partial surrender is
equal to the vested Individual Account Current
Value, including the Loan Account, minus 125% of
the outstanding loan balance.
(f) Full surrenders while a loan is outstanding: If
the Participant requests a full surrender from the
vested Individual Account Current Value while a
loan is outstanding, one of the following occurs:
(1) If the amount of the vested Individual Account
Current Value available for distribution is
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, then that amount,
minus the Loan Account balance, is deducted
from the vested Individual Account Current
Value and the loan is canceled.
(2) If the amount of the vested Individual Account
Current Value available for distribution is
not sufficient to repay (a) the outstanding
loan balance, plus (b) any applicable Fixed
Plus Account default charge, then the
surrender amount cannot exceed the vested
Individual Account Current Value, including
the Loan Account, reduced by 125% of the
outstanding loan balance.
(g) Electing an Annuity option while a loan is
outstanding: Before all or any portion of the
vested Individual Account Current Value is applied
to an Annuity option, the Participant may repay
any outstanding loan balance, or the vested
Individual Account Current Value is adjusted as
described in (f).
(h) Death of the Participant while a loan is
outstanding: If a death benefit claim is submitted
for an Individual Account with an outstanding
loan, the Individual Account Current Value,
including the amount of the Loan Account, is
reduced by the amount of the outstanding loan
balance before the death benefit amount is
determined.
(i) Loan payment default: If Aetna does not receive a
loan payment when due, the defaulted payment is
treated as follows:
18
3.11 Loans (Cont'd): (1) If the amount of the vested Individual Account
Current Value available for distribution is
sufficient to repay (a) the amount of the
defaulted payment, plus (b) any applicable
Fixed Plus Account default charge, then that
amount is deducted from the vested Individual
Account Current Value.
(2) If the amount of the vested Individual Account
Current Value available for distribution is
not sufficient to repay (a) the amount of the
defaulted payment, plus (b) any applicable
Fixed Plus Account default charge, until such
time that the amount due can be distributed,
the Loan Account continues to earn interest,
and interest is charged on the defaulted
payment. At that time, the amount due is
surrendered from the vested Individual Account
Current Value.
3.12 Notice to the Each year, Aetna will notify the Participant of:
Participant:
(a) The value of any amounts held in:
(i) The Fixed Plus Account (if available),
(ii) The GA Account (if available),
(iii) The Fund(s) for the Separate Account;
(b) The number of any fund(s) record units;
(c) The fund(s) record unit value(s);
(d) The amount available for withdrawal; and
(e) The Loan Account value.
This information will be as of a date no more than
sixty (60) days before the date of the notice.
3.13 Xxxxxx and (a) A distribution to a Participant or Beneficiary may
Timing of be made in a lump sum, as one of the Distribution
Distributions: Options described in Section IV, or as one of the
Annuity options in Section V. The Participant or
Beneficiary may elect the form of distribution
subject to the terms of the Plan. All
distributions must satisfy the minimum
distribution rules set forth in Code Section
401(a)(9).
(b) The distribution of benefits from the Employee and
Employer Accounts must generally begin no later
than April 1 of the calendar year following the
calendar year in which the Participant attains age
70-1/2 or retires, if later.
19
3.13 Xxxxxx and The entire value of the Individual Account must be
Timing of distributed, or distribution must be made over the
Distributions life of the Participant, the joint lives of the
(Cont'd): Participant and Beneficiary or over a period that
does not extend beyond the life expectancy of the
Participant or the joint life expectancies of the
Participant and Beneficiary.
(c) If the Participant does not request commencement
of benefits from the Employee and Employer
Accounts as described above, Aetna will not be
responsible for compliance with the Code Section
401(a)(9) minimum distribution requirements or for
any adverse tax or other consequences that may
result.
3.14 Withdrawal: (a) The Participant may withdraw any portion or all of
an Individual Account Adjusted Current Value and
transfer such amount to another investment
provider under the Plan. The withdrawal and
transfer request must be permitted under the terms
of the Plan and submitted in writing to Aetna.
(b) Unless the Participant specifies otherwise,
partial withdrawals are satisfied by withdrawing
amounts on a pro rata basis from each of the
investment options in which the Individual Account
is invested.
(c) When amounts are withdrawn from the GA Account,
amounts in Short-Term and Long-Term
Classifications are treated as separate investment
options and amounts are taken on a pro rata basis.
Within a Classification, amounts will be withdrawn
starting with the Term still in effect with the
oldest Deposit Period.
(d) Any amount withdrawn from the Fixed Plus Account
will be subject to the limitations in 3.15 and
3.16.
3.15 Partial The amount eligible for partial withdrawal is
Withdrawal 20% of the Current Value of the amount held in
from the the Fixed Plus Account on the day Aetna's Home
Fixed Plus Office receives a written request, reduced by
Account: any previous Fund Transfer, partial withdrawal
or amounts taken as a loan or used to purchase Annuity
benefits during the prior 12 months. Aetna reserves
the right to include amounts paid under ECO, XXX and
SWO for purposes of applying this 20% limit. However,
SWO and XXX are unavailable if a Fixed Plus Account
Transfer or withdrawal is requested within the current
12 month Period.
The 20% limit applicable to partial withdrawals from
the Fixed Plus Account will be waived under certain
conditions and will apply when the partial withdrawal
is made on a pro rata basis from all options used
under the Participant's Individual Account. (See
Contract Schedule I).
20
3.16 Payment of When Aetna receives a full withdrawal request,
Fixed Plus no additional partial withdrawals or Fund
Account Full Transfers from the Fixed Plus Account are
Withdrawal: permitted during the payout period. If a full
withdrawal is requested, Aetna will pay any Current
Value from the Fixed Plus Account in five payments as
follows:
(a) One-fifth of the Current Value on the day the
request is received in good order at Aetna's Home
Office, reduced by any amount from the Fixed Plus
Account that was transferred, withdrawn or used
for a loan or to purchase Annuity benefits during
the prior 12 months;
(b) One-fourth of the remaining Current Value 12
months later;
(c) One-third of the remaining Current Value 12 months
later;
(d) One-half of the remaining Current Value 12 months
later; and
(e) The balance of the Current Value 12 months later.
The Fixed Plus Account full withdrawal payment
provision will be waived when a withdrawal is:
(a) Due to the Participant's death before Annuity
benefit payments begin;
(b) Used to purchase Annuity benefits;
(c) When the amount in the Fixed Plus Account is
$3,500 or less and no amount has been withdrawn,
transferred, taken as a loan or used to purchase
Annuity benefits during the previous 12 months;
(d) Due to hardship when the following conditions are
met:
(1) the withdrawal is due to an employer certified
hardship;
(2) the amount withdrawn is paid directly to the
Participant.
(e) Due to separation from service provided that:
(1) the withdrawal is due to the Participant's
separation from service with the employer;
(2) the employer certifies that the Participant
has separated from service;and
(3) the amount withdrawn is paid directly to the
Participant.
Any full withdrawal from the Fixed Plus Account may be
cancelled at any time before the end of the payment
period.
3.17 Amount Payable Aetna will pay any portion of the Individual
at Death Account Current Value, to the Beneficiary when:
(Before
Annuity (a) The Participant dies before Annuity payments
Payments start; and
Start):
(b) The certified copy of the death certificate is
received by Aetna; and
(c) A completed and signed election form is submitted
to the Home Office. The Beneficiary must be
eligible for a distribution under the terms of the
Plan.
21
3.17 Amount Payable The amount payable will be the Current Value of the
at Death Individual Account plus aggregate positive MVA, as
(Before applicable, on the date the notice of death and the
Annuity request for payment are received in good order at
Payments Aetna's Home Office.
Start)(Cont'd):
If the Participant dies before distributions begin in
accordance with the provisions of Code Section
401(a)(9), the entire value of the Account must be
distributed by December 31 of the calendar year
containing the fifth anniversary of the date of the
Participant's death. Alternatively, if the Participant
has a designated Beneficiary, payments may be made
over the life of the Beneficiary or over a period not
extending beyond the life expectancy of the
Beneficiary provided distribution to a non-spouse
Beneficiary begins by December 31 of the calendar year
following the calendar year of the Participant's
death. For a spousal Beneficiary, such payments must
begin by the later of December 31 of the calendar year
of the Participant's death or December 31 of the
calendar year in which the Participant would have
attained age 70-1/2.
If the Participant dies after distributions begin in
accordance with the provisions of Code Section
401(a)(9), payments to the Beneficiary must be made at
least as rapidly as the method of distribution in
effect at the time of the Participant's death. If the
minimum distribution requirements have been met by
partial withdrawals based on the Participant's life
expectancy or the joint life expectancies of the
Participant and Beneficiary, death benefit payments to
the Beneficiary must also satisfy any additional
requirements of Code Section 401(a)(9).
Amounts in the GA Account will be payable as described
in Section 3.06(d).
3.18 Reinstatement: All or a portion of the proceeds of a full withdrawal
of an Individual Account may be reinvested within 30
days after the surrender if allowed by law. Any Market
Value Adjustment deducted from GA Account withdrawals
will not be included in the reinstatement. Amounts
will be reinstated among the Fixed Plus Account, GA
Account, and the Fund(s) in the same proportion as
they were at the time of withdrawal. Any amount
reinstated to the GA Account will be credited to the
current Deposit Period. The number of record units
reinstated will be based on the record unit value(s)
next computed after receipt at Aetna's Home Office of
the reinstatement request and the amount to be
reinvested.
Amounts attributable to an Aetna GET Fund series will
be reinstated to the current Offering Period of the
Aetna GET Fund series. If no Aetna GET Fund series
Offering Period is available, amounts withdrawn from
the Aetna GET Fund series will be allocated, pro rata,
among all other investment options in which the
Individual Account is invested.
A Reinstatement is permitted only once.
22
IV. NON-ANNUITY DISTRIBUTION OPTIONS
--------------------------------------------------------------------------------
4.01 Distribution Distribution Options: ECO, XXX and SWO are
Options: distribution options under which a portion of
the Individual Account Current Value will
automatically be surrendered and distributed each
calendar year. The distributed amount is withdrawn pro
rata from each investment option under the Individual
Account. The distributions will be made in accordance
with terms of the Plan.
Market Value Adjustment: A Market Value Adjustment
will not be applied to any portion of the Current
Value which is paid under ECO.
Minimum Current Value: At its discretion, Aetna may
require a minimum initial Current Value for election
of a distribution option. If after election of the
option the Current Value is insufficient to make a
scheduled payment, Aetna will distribute the entire
Individual Account balance.
Reservations of Rights: Aetna reserves the right to
change the terms of ECO, XXX or SWO for future
elections, to discontinue the availability of these
options after proper notification, or to make other
distribution options available as allowed by the state
in which this Contract is delivered. Aetna also
reserves the right to allow ECO and XXX payments to be
made more frequently than annually.
Election and Revocation: The Participant or
Beneficiary may elect a distribution option by
submitting a completed and signed election form to
Aetna's Home Office. However, the elected distribution
option must be in accordance with the terms of the
Plan.
Once elected, the Participant or Beneficiary may
revoke the option by submitting a written request to
Aetna's Home Office. Any revocation will apply only to
amounts not yet paid.
Availability of ECO, XXX and SWO: The Participant may
elect any one of the following three distribution
options, if they are available as an option under the
Contract (See Contract Schedule I) and the election is
in accordance with the terms of the Plan. The
Beneficiary may elect either ECO or SWO, if they are
available as an option under the Contract (See
Contract Schedule I) and the election is in accordance
with the terms of the Plan.
An individual who has revoked ECO, XXX or SWO may not
subsequently elect that option again, nor may the
individual elect another withdrawal option unless
permitted under the Code minimum distribution rules.
XXX and SWO are not available if there is an
outstanding loan under the Individual Account, or if a
Fixed Plus Account transfer or surrender has occurred
within the prior 12 month period. Payments will cease
if a loan is granted while XXX or SWO is in effect.
23
4.01 Distribution If XXX is in effect and the Participant dies,
Options or if ECO or SWO is in effect and the
(Cont'd): Participant dies before the required beginning
date for minimum distributions, payments will cease. A
Beneficiary may elect ECO or SWO provided the election
satisfies the Code minimum distribution rules.
If ECO or SWO is in effect and the Participant dies
after the required beginning date for minimum
distributions, payments will continue as permitted
under the Code minimum distribution rules, unless
revoked.
4.02 Estate Amount of Distribution: Each year that ECO is
Conservation in effect, Aetna will calculate and distribute
Option (ECO): an amount equal to the minimum required
distribution under the Code. The annual distribution
will be determined by dividing the Individual Account
Current Value as of December 31 of the year prior to
the year for which payment is to be made by a life
expectancy factor based on expected return multiples
in Table V and VI of Section 1.72-9 of the Income Tax
Regulations.
The Participant may elect either the single or joint
life expectancy factor. If the joint life expectancy
factor is elected, the second life must be the
Beneficiary under the Plan. If the Beneficiary selects
ECO after the Participant's death, only a single life
expectancy factor may be used. The life expectancy or
joint life expectancy factor will be recalculated each
year in accordance with the rules under Code Section
401(a)(9).
Date of Distribution: The Participant shall specify
the initial distribution date. The earliest date is
the first day of the calendar year in which the
Participant attains age 70-1/2 or retires, if later.
If a Beneficiary elects ECO, the earliest date is the
date of the Participant's death. Subsequent
distribution will be made annually on such date as
Aetna may designate or allow.
4.03 Life Amount of Distribution: Each year that XXX is
Expectancy in effect, Aetna will calculate and distribute
Option (XXX): an amount determined by dividing the Individual
Account Current Value as of December 31 of the year
prior to the year for which payment is to be made by a
life expectancy factor based on expected return
multiples in Table V and VI of Section 1.72-9 of the
Income Tax Regulations. Payments will be made each
year until the year the Participant attains age
70-1/2, or until the Participant dies, if earlier.
The Participant may elect either the single or joint
life expectancy factor. If the joint life expectancy
factor is elected, the second life must be the
Beneficiary under the Plan. The life expectancy or
joint life expectancy factor will be recalculated each
year in accordance with the rules under Code Section
401(a)(9), or reduced by one for each calendar year
which has elapsed since the life expectancy was first
calculated, as elected by the Participant.
24
4.03 Life Date of Distribution: The Participant shall specify
Expectancy the initial distribution date. The earliest date is
Option (XXX) the date on which the Participant separates from
(Cont'd): service with the employer. Subsequent distribution
will be made annually on such date as Aetna may
designate or allow.
4.04 Systematic Amount of Distribution: The Participant may elect one
Withdrawal of the three payment methods described below.
Option (SWO):
(1) Specified Payment: Payments of a designated dollar
amount. The annual amount may not be greater than
the percentage of the Current Value at time of
election as shown in Contract Schedule I. This
annual dollar amount will remain constant, unless
a higher amount is required under Code minimum
distribution rules. At its discretion, Aetna may
require a minimum initial payment amount; or
(2) Specified Period: Payments which are made over a
period of time which must be at least the minimum
number of years shown in Contract Schedule I. The
annual amount paid each year is calculated by
dividing the Current Value as of December 31 of
the prior year by the number of payment years
remaining; or
(3) Specified Percentage: Payment of a designated
percentage which cannot be greater than the
percentage of the Current Value at the time of
election as shown in Contract Schedule I. The
percentage may be changed by written request.
Aetna reserves the right to limit the number of
times the percentage may be changed. The annual
amount is calculated by multiplying the Current
Value as of December 31 of the year prior to the
payment by the designated percentage. Payments
will be made each year until the year the
Participant attains age 70-1/2.
Minimum Distribution Requirements: If distributions
are made under SWO after payments are required to
begin under the minimum distribution requirements of
Code Section 401(a)(9), the amount distributed in any
year will be increased if required under the Code
minimum distribution rules.
25
4.04 Systematic For this purpose, the minimum required distribution
Withdrawal will be determined each year by dividing the
Option (SWO) Individual Account Current Value as of December 31 of
(Cont'd): the year prior to the year for which payment is to be
made by a life expectancy factor, which for the
initial distribution year shall be based on either the
single life expectancy factor or joint life expectancy
factor in Table V or VI of Section 1.72-9 of the
Income Tax Regulations, as elected by the Participant.
If the joint life expectancy factor is elected, the
second life must be the Beneficiary under the Plan. If
a Beneficiary elects SWO after the Participant's
death, only a single life expectancy factor may be
used. Minimum distributions for any subsequent year
will be calculated based on such life expectancy
factor reduced by one for each calendar year which has
elapsed since the life expectancy was first
calculated. If the specified period method is elected,
the maximum specified period will be limited by the
single life expectancy factor or joint life expectancy
factor in Table V or VI of Section 1.72-9 of the
Income Tax Regulations, as elected by the Participant.
If elected by a Beneficiary, only a single life
expectancy may be used.
Date of Distribution: The Participant shall specify
the initial distribution date. The earliest date is
the date on which the Participant attains age 59-1/2
or age 55, if separated from service with the employer
at or after age 55. If a Beneficiary elects SWO, the
earliest date is the date of the Participant's death.
SWO payments will be made on a monthly, quarterly,
semi-annual or annual basis, as elected by the
Participant or Beneficiary. If SWO payments are made
more frequently than annually, the designated annual
amount is divided by the number of payments due each
calendar year. Subsequent distribution will be made
periodically on such date as Aetna may designate or
allow.
V. ANNUITY PROVISIONS
---------------------------------------------------------------------------
5.01 General (a) Upon the Participant's total disability,
Provisions: acceptance of retirement or separation from
service, the Participant has the right to elect an
Annuity option. The Participant must transfer any
portion of the Current Value held in an Aetna GET
Fund series to another investment option before an
Annuity option is elected.
(b) The Participant may elect an Annuity option by
telling Aetna to pay all or any portion of the
Individual Account(s) Current Value (minus any
applicable premium tax if not previously deducted)
as a premium for an Annuity under Option 1, 2, or
3 (See 5.02).
(c) A completed and signed election form must be
submitted to the Home Office. Participant must be
eligible for a distribution under the terms of the
Plan and the Annuity option chosen must be
permitted under the terms of the Plan.
26
5.01 General (d) Any election of an Annuity option must comply with
Provisions the minimum distribution requirements of Code
(Cont'd): Section 401(a)(9), including the incidental death
benefit rule, and the regulations thereunder. This
restriction does not apply if Option 3 is chosen
and the second Annuitant is the spouse of the
Participant.
(e) Once elected, an Annuity option may not be
revoked, except for Option 1 when elected on a
variable basis.
5.02 Annuity Option 1 - Payments for a Stated Period of Time
Options: - An Annuity will be paid for the number of
years chosen (See Contract Schedule II). If payments
for this option are made under a variable Annuity, the
present value of any remaining payments may be
withdrawn at any time.
Option 2 - Life Income based on the life of the
Annuitant. Payments will be made until the death of
the Annuitant. When this option is chosen, a choice of
the following must be made:
(a) Payments cease at the death of the Annuitant;
(b) Payments may be guaranteed for 5-30 years; or
(c) Payments may be guaranteed for the amount applied
to the Annuity option. If the Annuitant dies prior
to the payment of the amount applied to the
Annuity option (less any premium tax), any
remaining balance will be paid in one sum to the
Beneficiary. This option is only available on a
fixed basis.
Option 3 - Life Income based upon the lives of two
Annuitants. An Annuity will be paid during the lives
of the Annuitant and a second Annuitant. Payments will
continue until both Annuitants have died. When this
option is chosen, a choice of the following must be
made:
(a) 100% of the payment to continue after the first
death;
(b) 66-2/3% of the payment to continue after the first
death;
(c) 50% of the payment to continue after the first
death;
(d) 100% of the payment to continue after the first
death with a guarantee of 5-30 years;
(e) 100% of the payment to continue at the death of
the second Annuitant and 50% of the payment to
continue at the death of the Annuitant; or
(f) 100% of the payment to continue after the first
death. Payments are guaranteed for the amount
applied to the Annuity option. If both Annuitants
die prior to the total payment of the amount
applied to the Annuity option (less any premium
tax), any remaining balance will be paid in one
sum to the Beneficiary. This option is only
available on a fixed basis.
27
5.02 Annuity If a fixed Annuity option is chosen under
Options Option 1, Option 2 (a) or (b) or Option 3 (a)
(Cont'd): or (d), then the Participant may elect a
payment increase of 1, 2 or 3%, compounded annually.
An election of such a payment increase will result in
an adjustment of the policy guarantees by an
actuarially equivalent payment factor.
Other Options - Aetna may make other options available
as allowed by the laws of the state in which this
Contract is delivered.
5.03 Payments: (a) Upon written direction from the
Contract Holder, Aetna will pay Annuity benefits
directly to the Participant and as payor, Aetna
will be responsible for withholding any applicable
federal or state taxes and reporting such sums and
filing any related forms with the Internal Revenue
Service and/or to any applicable state taxing
authorities.
(b) Generally, the first Annuity payment must be made
by April 1 of the calendar year following the year
in which the Participant turns age 70-1/2 or
retires, if later.
(c) Payments will be made on a monthly basis unless
the Participant requests otherwise. If payments
are made on a quarterly, semi-annual or annual
basis, Aetna will calculate an actuarially
equivalent payment factor.
(d) No choice of any Annuity option may be made if the
first payment would be less than $50 per month or
if the total payments in a year would be less than
$250.
(e) For purposes of calculating the guaranteed first
payment of a variable Annuity or the payments for
a fixed Annuity, the Annuitant's and second
Annuitant's adjusted age will be used.
The Annuitant's and second Xxxxxxxxx's adjusted
age is his or her age as of the birthday closest
to the Annuity commencement date reduced by one
year for Annuity commencement dates occurring
during the period of time from July 1, 1992
through December 31, 1999. The Annuitant's and
second Xxxxxxxxx's age will be reduced by two
years for Annuity commencement dates occurring
during the period of time from January 1, 2000
through December 31, 2009. The Annuitant's and
second Annuitant's age will be reduced by one
additional year for Annuity commencement dates
occurring in each succeeding decade.
(f) If a Fixed Annuity under Option 1, 2 or 3 is
elected, Aetna will use the applicable current
settlement option rates if these will provide
higher fixed Annuity payments.
28
5.04 Investment (a) When an Annuity option is chosen the Participant
Option: must designate whether the Annuity will be fixed
or variable and whether the underlying investment
will be:
(1) The General Account;
(2) One or more of the available Fund(s) ; or
(3) A combination of (1) and (2).
If a fixed Annuity is chosen, the Annuity purchase
rate for the option chosen reflects at least the
Minimum Guaranteed Interest Rate (See Contract
Schedule II), but may reflect a higher
interest rate.
If a variable Annuity is chosen, the initial Annuity
payment for the option chosen reflects the Assumed
Annual Net Return Rate elected (See Contract Schedule
II). The Assumed Annual Net Return Rate is the
interest rate used to determine the amount of the
first Annuity payment under a variable Annuity. The
Separate Account must earn this rate plus enough to
cover the mortality and expense risk charges (which
may include profit) (at the annual rate shown on
Contract Schedule II) and a daily administrative
charge if future variable Annuity payments are to
remain level.
5.05 Fund Annuity The number of Fund(s) annuity units is based on
Units: the amount of the first variable Annuity
payment which is equal to:
(a) The portion of the Current Value (minus any
premium tax) applied to pay a variable Annuity;
divided by (b) 1,000; multiplied by (c) the
payment rate for the option chosen.
Such amount, or portion, of the variable payment will
be divided by the appropriate Fund(s) Annuity unit
value (See 5.06) on the tenth Valuation Date before
the due date of the first payment to determine the
number of each Fund Annuity units. The number of each
Fund Annuity units remains fixed. Each future payment
is equal to the sum of the products of each Fund
Annuity unit value multiplied by the appropriate
number of Units. The Fund Annuity unit value on the
tenth Valuation Date prior to the due date of the
payment is used.
5.06 Fund Annuity For any Valuation Date, a Fund(s) Annuity unit
Unit Value: value is equal to:
(a) The value for the previous Valuation Date;
multiplied by
(b) The Annuity net return factor(s) (See 5.07) for
the Period; multiplied by
(c) A factor to reflect the assumed annual net return
rate. (See Contract Schedule II).
The dollar value of a Fund Annuity unit and Annuity
payments may go up or down due to investment gain or
loss. Payments shall not be changed due to changes in
the mortality or expense results or administrative
charges.
29
5.07 Fund Annuity The Annuity net return factor(s) are used to
Net Return compute all Separate Account Annuity payments
Factor: for any Fund.
The Annuity net return factor(s) for each Fund is
equal to 1.0000000 plus the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period,
minus
(b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation
Period, plus or minus
(c) Taxes (or reserves for taxes) on the Separate
Account (if any); divided by
(d) The total value of the Fund(s) record units and
Fund(s) Annuity units of the Separate Account at
the start of the Valuation Period; minus
(e) A daily charge for Annuity mortality and expense
risks, which may include a profit, (at the annual
rate as shown on Contract Schedule II), and a
daily administrative charge.
A net return rate may be more or less than 0%. The
value of a share of the Fund is equal to the net
assets of the Fund divided by the number of shares
outstanding.
5.08 Fund Transfers At the request of the Contract Holder or the
During the Participant if the Contract Holder has directed
Annuity Period: Aetna to accept such a request from the
Participant, all or any portion of the Current Value
may be transferred from any variable Fund to any other
allowable Fund. Aetna reserves the right to allow no
more than four Funds to be selected at any one time.
Fund Transfers will be processed as of the Valuation
Date next following when a transfer request is
received in good order at Aetna's Home Office. The
maximum number of allowable transfers (during the
Annuity period) in a calendar year is shown on
Contract Schedule II.
Fund Transfer requests must be expressed as a
percentage of each Fund's allocation to the Annuity
payment. Aetna may establish a minimum transfer
amount.
5.09 Death Benefit: Upon the death of the Annuitant(s), any
remaining guaranteed payments will continue to
the Beneficiary unless the Beneficiary elects
to receive the present value of any remaining
guaranteed payments in a lump sum. Such
payments will be paid at least as rapidly as
under the method of distribution then in
effect. If the Beneficiary dies while
receiving payments, the present value of any
remaining guaranteed payments will be paid in
one sum to the Beneficiary's estate.
30
5.09 Death Benefit The interest rate used to determine the first
(Cont'd): Annuity payment will be used to calculate the
present value. The present value will be determined as
of the Valuation Period in which proof of death
acceptable to Aetna and a request for payment is
received at Aetna's Home Office.
31
OPTION 1
Payments for a Stated Period of Time
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
-------------------------- ------------------------ ----------------------- ------------------------
Monthly Monthly
Years Payment Years Payment
-------------------------- ------------------------ ----------------------- ------------------------
5 17.91 18 5.96
6 15.14 19 5.73
7 13.16 20 5.51
8 11.68 21 5.32
9 10.53 22 5.15
10 9.61 23 4.99
11 8.86 24 4.84
12 8.24 25 4.71
13 7.71 26 4.59
14 7.26 27 4.47
15 6.87 28 4.37
16 6.53 29 4.27
17 6.23 30 4.18
-------------------------- ------------------------ ----------------------- ------------------------
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5%
-------------------------- ------------------------ ----------------------- ------------------------
Monthly Monthly
Years Payment Years Payment
-------------------------- ------------------------ ----------------------- ------------------------
5 18.12 18 6.20
6 15.35 19 5.97
7 13.38 20 5.75
8 11.90 21 5.56
9 10.75 22 5.39
10 9.83 23 5.24
11 9.09 24 5.09
12 8.46 25 4.96
13 7.94 26 4.84
14 7.49 27 4.73
15 7.10 28 4.63
16 6.76 29 4.53
17 6.47 30 4.45
-------------------------- ------------------------ ----------------------- ------------------------
32
OPTION 1
Payments for a Stated Period of Time
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
-------------------------- ------------------------ ----------------------- ------------------------
Monthly Monthly
Years Payment Years Payment
-------------------------- ------------------------ ----------------------- ------------------------
5 18.74 18 6.94
6 15.99 19 6.71
7 14.02 20 6.51
8 12.56 21 6.33
9 11.42 22 6.17
10 10.51 23 6.02
11 9.77 24 5.88
12 9.16 25 5.76
13 8.64 26 5.65
14 8.20 27 5.54
15 7.82 28 5.45
16 7.49 29 5.36
17 7.20 30 5.28
-------------------------- ------------------------ ----------------------- ------------------------
33
OPTION 2
Life Income
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Years
------------------- --------------- --------------- -------------- --------------- --------------- ---------------
Adjusted
Age of None 5 10 15 20 Cash
Annuitant Refund
------------------- --------------- --------------- -------------- --------------- --------------- ---------------
50 $ 4.05 $ 4.05 $ 4.03 $ 3.99 $ 3.93 $ 3.89
51 4.12 4.11 4.09 4.05 3.99 3.94
52 4.19 4.19 4.16 4.11 4.04 4.00
53 4.27 4.26 4.23 4.18 4.10 4.06
54 4.35 4.34 4.31 4.25 4.16 4.12
55 4.44 4.42 4.39 4.32 4.22 4.19
56 4.53 4.51 4.47 4.40 4.29 4.26
57 4.62 4.61 4.56 4.48 4.35 4.33
58 4.72 4.71 4.65 4.56 4.42 4.41
59 4.83 4.81 4.75 4.64 4.49 4.49
60 4.95 4.93 4.86 4.73 4.55 4.57
61 5.07 5.05 4.97 4.83 4.62 4.66
62 5.20 5.17 5.08 4.92 4.69 4.76
63 5.34 5.31 5.20 5.02 4.76 4.85
64 5.49 5.45 5.33 5.12 4.83 4.96
65 5.65 5.61 5.47 5.22 4.89 5.06
66 5.82 5.77 5.61 5.33 4.96 5.18
67 6.01 5.94 5.75 5.44 5.02 5.30
68 6.20 6.13 5.91 5.54 5.08 5.42
69 6.41 6.33 6.07 5.65 5.14 5.56
70 6.64 6.54 6.23 5.76 5.19 5.70
71 6.88 6.76 6.41 5.86 5.24 5.84
72 7.14 7.00 6.59 5.97 5.28 6.00
73 7.43 7.26 6.77 6.06 5.32 6.16
74 7.73 7.53 6.96 6.16 5.35 6.33
75 8.06 7.82 7.14 6.25 5.38 6.51
------------------- --------------- --------------- -------------- --------------- --------------- ---------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
34
OPTION 2
Life Income
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Years
------------------- --------------- --------------- -------------- --------------- ---------------
Adjusted
Age of Annuitant None 5 10 15 20
------------------- --------------- --------------- -------------- --------------- ---------------
50 $ 4.34 $ 4.34 $ 4.31 $ 4.27 $ 4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.80 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
------------------- --------------- --------------- -------------- --------------- ---------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
35
OPTION 2
Life Income
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Years
------------------- --------------- --------------- -------------- --------------- ---------------
Adjusted
Age of Annuitant None 5 10 15 20
------------------- --------------- --------------- -------------- --------------- ---------------
50 $ 5.26 $ 5.25 $ 5.22 $ 5.17 $ 5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 5.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
------------------- --------------- --------------- -------------- --------------- ---------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
36
OPTION 3
Life Income for Two Annuitants
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
-------------------------------- -------------- ------------ -------------- -------------- --------------- ----------------
Adjusted Ages
-------------------------------- Option 3d
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e Option 3f
--------------- ---------------- -------------- ------------ -------------- -------------- --------------- ----------------
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.03 $ 3.69
55 55 3.88 4.25 4.47 3.87 4.14 3.87
55 60 3.99 4.44 4.71 3.98 4.20 3.98
60 55 3.99 4.44 4.71 3.98 4.42 3.98
60 60 4.24 4.71 4.99 4.23 4.57 4.23
60 65 4.38 4.97 5.32 4.38 4.65 4.38
65 60 4.38 4.97 5.32 4.38 4.93 4.38
65 65 4.72 5.33 5.70 4.71 5.14 4.72
65 70 4.93 5.68 6.15 4.91 5.27 4.91
70 65 4.93 5.68 6.15 4.91 5.66 4.91
70 70 5.40 6.21 6.70 5.36 5.96 5.38
70 75 5.69 6.68 7.32 5.62 6.13 5.66
75 70 5.69 6.68 7.32 5.62 6.67 5.66
75 75 6.37 7.45 8.15 6.23 7.12 6.33
75 80 6.78 8.11 8.99 6.54 7.36 6.71
--------------- ---------------- -------------- ------------ -------------- -------------- --------------- ----------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
37
OPTION 3
Life Income for Two Annuitants
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
----------------------------------- ---------------- --------------- ---------------- ---------------- ---------------
Adjusted Ages
----------------------------------- Option 3d
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e
------------------ ---------------- ---------------- --------------- ---------------- ---------------- ---------------
55 50 $ 3.97 $ 4.35 $ 4.56 $ 3.97 $ 4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
------------------ ---------------- ---------------- --------------- ---------------- ---------------- ---------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
38
OPTION 3
Life Income for Two Annuitants
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
----------------------------------- ---------------- --------------- ---------------- ---------------- ---------------
Adjusted Ages
----------------------------------- Option 3d
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e
------------------ ---------------- ---------------- --------------- ---------------- ---------------- ---------------
55 50 $ 4.88 $ 5.26 $ 5.48 $ 4.88 $ 5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
------------------ ---------------- ---------------- --------------- ---------------- ---------------- ---------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
39
--------------------------------------------------------------------------------
[Aetna logo]
Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
Individual Combination Annuity Contract
Nonparticipating
--------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THIS ANNUITY CONTRACT, WHEN BASED ON
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED
AS TO FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA
DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
I-CDA-98(ORP)
