VARIABLE INCOME OPTIONS Clause Samples

VARIABLE INCOME OPTIONS. Variable Annuity Units (a) is the variable annuity unit value for that subaccount on the immediately preceding business day; (b) is the net investment factor for that subaccount for the Valuation Period; and (c) is the Assumed Investment Return adjustment factor for the Valuation Period. The Assumed Investment Return adjustment factor for the valuation period is the product of discount factors of .99986634 per day to recognize the 5.0% effective annual Assumed Investment Return. The net investment factor used to calculate the value of a variable annuity unit in each subaccount for the valuation period is determined by dividing (a) by (b) and subtracting (c) from the result, where: (a) is the net result of: (1) the net asset value of a fund share held in that subaccount determined as of the end of the current valuation period; plus (2) the per share amount of any dividend or capital gain distributions made by the fund for shares held in that subaccount if the ex-dividend date occurs during the valuation period; plus or minus (3) a per share credit or charge for any taxes reserved for, which we determine to have resulted from the investment operations of the subaccount. (b) is the net asset value of a fund share held in that subaccount determined as of the end of the immediately preceding valuation period. (c) is a factor representing the Mortality and Expense Risk Fee and Administrative Charge applicable after the annuity commencement date. This factor is less than or equal to, on an annual basis, the percentage shown on the Policy Data Page of the daily net asset value of a fund share held in the separate account for that subaccount. The amount of the first variable payment is determined by multiplying each $1,000 of policy proceeds allocated to a variable income option by the amounts shown on pages 20 and 21 for the variable option you select. The tables are based on a 5% effective annual Assumed Investment Return and the “Annuity 2000” male and female mortality table projected for improvement using projection scale G (50% of the female scale G factors were used, while 100% of the male scale G factors were used). The rates were projected dynamically using an assumed annuity commencement date of 2005. The “Annuity 2000” mortality rates are adjusted based on improvements in mortality since 2000 to more appropriately reflect increased longevity. This is accomplished using a set of improvement factors referred to as projection scale G. Variable Income Option ...