Common use of The Ratchet Base Clause in Contracts

The Ratchet Base. The Ratchet Base under this Contract on the Contract Date is equal to the Ratchet Base under your Prior Contract. However, if the Ratchet Base in your Prior Contract is less than your Annuity Account Value that is rolled over into this Contract, then we will increase your initial Ratchet Base to such Annuity Account Value. If you have more than one Prior Contract and make more than one direct rollover Contribution, we will combine the amounts of the Ratchet Base under each Prior Contract to determine the Ratchet Base for this Contract. The Ratchet Base is recalculated on each Contract Date Anniversary to equal the greater of the Annuity Account Value and the immediately previous Ratchet Base. The Ratchet Base is reduced on a pro rata basis due to any Early Withdrawals and any Excess Withdrawals.