INCOME BASE Clause Samples
The "Income Base" clause defines the specific amount or calculation method used to determine a party's income for the purposes of the agreement. Typically, this clause outlines what sources of income are included or excluded, such as salary, bonuses, or investment returns, and may specify a time period for measurement. By clearly establishing how income is calculated, the clause ensures transparency and consistency, which is essential for agreements involving payments, obligations, or thresholds based on income.
INCOME BASE. The Income Base will be the greater of Income Base A or Income Base B, described below. The Income Base is used solely for the purpose of calculating the amount of the Guaranteed Retirement Income Benefit and the Rider Fee. It is not available as a Contract Value, Settlement Value, or Death Benefit, nor is it used in the calculation of such values. Also, it does not guarantee performance of any investment option. Income Base A * On the Rider Date, Income Base A is equal to the Contract Value. * After the Rider Date, Income Base A will accumulate interest daily at a rate equivalent to 5% per year and is recalculated each time a purchase payment or withdrawal is made as follows: * for purchase payments, Income Base A is equal to the most recently calculated Income Base plus the purchase payment. * for withdrawals, Income Base A is equal to the most recently calculated Income Base A reduced by a withdrawal adjustment, as defined below. * The accumulation will continue until the first Contract anniversary following the 85th birthday of either the oldest Owner or the oldest Annuitant, whichever is earlier. After the first Contract anniversary following 85th birthday of either the oldest Owner or the oldest Annuitant, whichever is earlier, Income Base A will be recalculated only for purchase payments and withdrawals. Income Base A will not exceed the amount equal to: * 200% of the Contract Value as of the Rider Date; plus * 200% of any purchase payments made after the Rider Date (excluding purchase payments made in the twelve-month period immediately prior to the Payout Start Date); minus * withdrawal adjustments for any withdrawals made after the Rider Date. Withdrawal Adjustment for Income Base A
A. Prior to the first Contract anniversary following the 85th birthday of either the oldest Owner or the oldest Annuitant, whichever is earlier: * For the portion of withdrawals in a Contract Year that do not cumulatively exceed 5% of Income Base A, calculated as of the Contract anniversary immediately prior to the withdrawal, the withdrawal adjustment for each such withdrawal (or portion thereof) is equal to (i) multiplied by (ii), where
(i) is the withdrawal amount (or portion thereof) (ii) is a discount factor calculated using an annual interest rate of 5% and is defined as the quantity (1.05)-K. * K is the portion of the Contract Year remaining between the date of the withdrawal and the Contract anniversary immediately following the withdrawal. . The discount fact...
INCOME BASE. The Income Base is used solely for the purpose of calculating the amount of the Guaranteed Retirement Income Benefit and the Rider Fee. It does not provide a Contract Value or guarantee performance of any investment option. Income Base o On the Rider Date, the Income Base is equal to the Contract Value.
INCOME BASE. The Income Base will be the greater of Income Base A or Income Base B, described below. The Income Base is used solely for the purpose of calculating the amount of the Guaranteed Retirement Income Benefit and the Rider Fee. It does not provide a Contract Value or guarantee performance of any investment option. Income Base A o On the Rider Date, Income Base A is equal to the Contract Value.
INCOME BASE. Prior to the Guaranteed Withdrawal Lock-In Date, on each Valuation Date the Income Base of a Participant [or Eligible Spouse] equals the [Highest Birthday Value] [ Roll-Up Value] [greater of the Highest Birthday Value and the [Roll-Up Value]] as of the Valuation Date immediately prior. Prior to the Guaranteed Withdrawal Lock-In Date, the Income Base is determined only for reference. On the Guaranteed Withdrawal Lock-In Date, the Income Base of a Participant [or Eligible Spouse] equals the [greatest/greater] of his or her:
a. Guaranteed Withdrawal Market Value;
b. [Roll-Up Value;] or
c. [Highest Birthday Value] on the Valuation Date immediately prior to his or her Guaranteed Withdrawal Lock-In Date. Thereafter, the Income Base may be increased or decreased in the manner set forth in Section 3 of this Rider. The Income Base shall not be greater than [$5,000,000].
INCOME BASE. Prior to the Guaranteed Withdrawal Lock-In Date, on each Valuation Date the Income Base of a Participant B[or Eligible Spouse] equals the B[Highest Birthday Value] A & B[Roll-Up Value] B[greater of the Highest Birthday Value and the A& B[Roll-Up Value]] as of the Valuation Date immediately prior. Prior to the Guaranteed Withdrawal Lock-In Date, the Income Base is determined only for reference. On the Guaranteed Withdrawal Lock-In Date, the Income Base of a Participant B[or Eligible Spouse] equals the B[greatest/greater] of his or her:
a. Guaranteed Withdrawal Market Value;
b. A & B[Roll-Up Value;] or
INCOME BASE. An Annuitant's Income Base is used to calculate the GAI and the GWB charge. On the GWB Effective Date an Annuitant's Income Base is equal to the AAV. MAXIMUM INCOME BASE The guaranteed amounts of the combined Income Bases for all Company annuity contracts, including individual contracts or group annuity certificates with an affiliated company, for which the Annuitant and Secondary Life, if applicable, is a Measuring Life, is subject to the Maximum Income Base noted on the Contract Specifications page. ADJUSTMENT TO THE INCOME BASE FOR ADDITIONAL DEPOSITS If an additional Deposit is accepted, an Annuitant's Income Base will be increased to equal the additional Deposit plus an Annuitant's Income Base immediately prior to receipt of the additional Deposit. ADJUSTMENT TO THE INCOME BASE FOR WITHDRAWALS Upon each Excess Withdrawal, an Annuitant's Income Base will be reduced in the same proportion that the Excess Withdrawal reduced the AAV. Upon each Conforming Withdrawal an Annuitant's Income Base will not be reduced. AUTOMATIC ANNUAL STEP-UP OF THE INCOME BASE Following an Annuitant's GWB Effective Date, an Automatic Annual Step-Up of an Annuitant's Income Base to equal the AAV may only occur on the Valuation Date immediately prior to the Benefit Year Anniversary, if the following condition(s) is/are satisfied:
1. the Age of the Measuring Life or Lives as of the Valuation Date, is less than the Maximum Age for any Measuring Life applicable to an Automatic Annual Step-Up calculation, as noted on the Contract Specifications page; and
2. the AAV as of that Valuation Date is greater than the Income Base. The Automatic Annual Step-Up will occur after the addition of any Deposits made on behalf of an Annuitant and the deduction of any Withdrawal on behalf of that Annuitant. If the Company creates a new GAI Rate Table for new Deposits, the calculations and provisions contained in the preceding paragraphs of Section 4.04 (with the exception of the Maximum Income Base paragraph) shall apply separately to each GAI Rate Table available to this Contract. As a result, a portion of the total Income Base will be aligned with each GAI Rate Table as described in the Weighted Average GAI Rate (WAGAI Rate) provision described below.
INCOME BASE. An Annuitant’s Income Base is used to calculate the GAI and the GWB charge. On the GWB Effective Date an Annuitant’s Income Base is equal to the AAV. The guaranteed amounts of the combined Income Bases for all Company annuity contracts, including individual contracts or group annuity certificates with an affiliated company, for which the Annuitant and Secondary Life, if applicable, is a Measuring Life, is subject to the Maximum Income Base noted on the Contract Specifications page. AN-701 9
INCOME BASE. The Income Base is used solely for the purpose of calculating the amount of the Guaranteed Retirement Income Benefit and the Rider Fee. It is not available as a Contract Value, Settlement Value, or Death Benefit, nor is it used in the calculation of such values. Also, it does not guarantee performance of any investment option. Income Base * On the Rider Date, the Income Base is equal to the Contract Value. * After the Rider Date, the Income Base will accumulate interest daily at a rate equivalent to 5% per year and is recalculated each time a purchase payment or withdrawal is made as follows: * for purchase payments, the Income Base is equal to the most recently calculated Income Base plus the purchase payment and its associated Credit Enhancement. * for withdrawals, the Income Base is equal to the most recently calculated Income Base reduced by a withdrawal adjustment, as defined below. * The accumulation will continue until the first Contract anniversary following the 85th birthday of either the oldest Owner or the oldest Annuitant, whichever is earlier. After the first Contract Anniversary following the 85th birthday of either the oldest Owner or the oldest Annuitant, whichever is earlier, the Income Base will be recalculated only for purchase payments and withdrawals. The Income Base will not exceed the amount equal to: * 200% of the Contract Value as of the Rider Date; plus * 200% of any purchase payments and associated Credit Enhancements made after the Rider Date (excluding purchase payments and associated Credit Enhancements made in the twelve-month period immediately prior to the Payout Start Date); minus * withdrawal adjustments for any withdrawals made after the Rider Date.
INCOME BASE. Prior to the Guaranteed Withdrawal Lock-In Date, on each Valuation Date the Income Base of a Participant B[or Eligible Spouse] equals the B[Highest Birthday Value] A & B[Roll-Up Value] B[greater of the Highest Birthday Value and the A& B[Roll-Up Value]] as of the Valuation Date immediately prior. Prior to the Guaranteed Withdrawal Lock-In Date, the Income Base is determined only for reference. On the Guaranteed Withdrawal Lock-In Date, the Income Base of a Participant B[or Eligible Spouse] equals the B[greatest/greater] of his or her:
a. Guaranteed Withdrawal Market Value;
b. A & B[Roll-Up Value;] or
c. B[Highest Birthday Value] on the Valuation Date immediately prior to his or her Guaranteed Withdrawal Lock-In Date. Thereafter, the Income Base may be increased or decreased in the manner set forth in Section 3 of this Rider. The Income Base shall not be greater than C[$5,000,000].