Aetna Life Insurance and Annuity Company
Home Office: 000 XXXXXXXXXX XXX.
HARTFORD, CONNECTICUT 06156
0-000-000-0000
Herein called Aetna
Agrees to pay the benefits stated in this Contract.
THE VARIABLE FEATURES OF THIS CONTRACT ARE DESCRIBED IN PARTS III AND IV.
RIGHT TO CANCEL
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.
This page, the following pages, and the application make up the entire Contract.
Signed at the Home Office on the Effective Date.
/s/ Xxxxx X. Xxxxxxxxx /s/ Xxx Xxxxxxx
Secretary President
INDIVIDUAL VARIABLE, FIXED, OR COMBINATION ANNUITY CONTRACT NONPARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS
CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT ARE
VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT.
TABLE OF CONTENTS
I. GENERAL DEFINITIONS
Page
1.01 Annuitant..........................................................4
1.02 Annuity............................................................4
1.03 Code...............................................................4
1.04 Contract Holder....................................................4
1.05 Fixed Account......................................................4
1.06 Fixed Annuity......................................................4
1.07 Fund(s)............................................................4
1.08 General Account....................................................4
1.09 Participant........................................................4
1.10 Plan...............................................................4
1.11 Purchase Payment(s)................................................4
1.12 Separate Account...................................................4
1.13 Valuation Period (Period)..........................................4
1.14 Variable Annuity...................................................4
II. GENERAL PROVISIONS
2.01 Change of Contract.................................................5
2.02 Change of Fund(s)..................................................5
2.03 Nonparticipating Contract..........................................5
2.04 Payments...........................................................5
2.05 State Laws.........................................................5
2.06 Control of Contract................................................5
2.07 Designation of Beneficiary.........................................5
2.08 Misstatements and Adjustments......................................5
2.09 lncontestability...................................................6
2.10 Grace Period.......................................................6
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
3.01 Net Purchase Payment(s)............................................7
3.02 Guaranteed Interest Rate - Fixed Account...........................7
3.03 Maintenance Fee....................................................7
3.04 Fund(s) Record Units - Separate Account............................7
3.05 Net Return Factor(s) - Separate Account............................7
3.06 Fund(s) Record Unit Value - Separate Account.......................8
3.07 Current Value......................................................8
3.08 Transfer of Current Value from the Funds...........................8
3.09 Transfer of Current Value from the Fixed Account...................8
3.10 Notice to the Contract Holder......................................8
3.11 Sum Payable at Death (Before Annuity Payments Start)...............8
3.12 Surrender Value....................................................8
3.13 Payment of Surrender Value.........................................8
3.14 Distribution Options (Estate Conservation Option (ECO)
Systematic Withdrawal Option (SWO))................................9
3.15 Reinstatement......................................................9
2
IV. ANNUITY PROVISIONS
4.01 Choices to be Made................................................10
4.02 Annuity Payments to Annuitant.....................................10
4.03 Annuity Payments to Annuitant's Beneficiary.......................10
4.04 Terms of Annuity Options..........................................11
4.05 Death of Annuitant/Beneficiary....................................12
4.06 Fund(s) Annuity Units - Separate Account..........................12
4.07 Fund(s) Annuity Unit Value - Separate Account.....................12
4.08 Annuity Options...................................................13
V. SPECIAL PROVISIONS
5.01 Deferred Compensation Plan........................................22
5.02 Tax Deferred Annuity Plan.........................................24
5.03 Tax Deferred Annuity Plan (ERISA).................................31
5.04 Individual Annuity Plan...........................................39
VI. FEE SCHEDULE
6.01 Maintenance Fee...................................................41
6.02 Surrender Fee.....................................................41
6.03 Table of Minimum Values - Fixed Account...........................41
3
I. GENERAL DEFINITIONS
1.01. Annuitant: A person who receives a series of payments for life or a
definite period under this Contract. This term may also apply to the
Contract Holder's or Participant's beneficiary who elected an Annuity
Option after the Contract Holder/Participant's death before payments
begin. The Annuitant cannot be changed.
1.02. Annuity: Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.03. Code: The Internal Revenue Code of 1986, as it may be amended from time
to time.
1.04. Contract Holder: The entity to which, or person to whom this Contract
is issued.
1.05. Fixed Account: An accumulation option with a guaranteed minimum
interest rate. Aetna may credit a higher rate which is not guaranteed.
1.06. Fixed Annuity: An Annuity with payments which do not vary in amount.
1.07. Fund(s): The open-end registered management investment companies
(mutual funds) made available by Aetna under this Contract.
1.08. General Account: The Account holding the assets of Aetna, other than
those assets held in the Separate Accounts.
1.09. Participant: An eligible person taking part in a Plan.
1.10. Plan: The Plan named on the Specifications page of the Contract. The
Plan is not a part of the Contract. Aetna is not bound by the terms of
the Plan.
1.11. Purchase Payment(s): Payment(s) made to Aetna.
1.12. Separate Account: An account which buys and holds shares of the
Fund(s). Income, gains or losses, realized or unrealized are credited
or charged to the assets of this account without regard to other
income, gains or losses of Aetna. Aetna owns the assets held in a
separate account and is not a trustee as to such amounts. These
accounts generally are not guaranteed and are held at market value. The
assets of such accounts, to the extent of reserves and other contract
liabilities of the account, shall not be charged with other Aetna
liabilities.
1.13. Valuation Period (Period): The period as of 4:00 p.m. Eastern time on
each day the New York Stock Exchange is open for business to 4:00 p.m.
Eastern time of the next such business day.
1.14. Variable Annuity: An Annuity with payments which vary with the net
investment results of a Separate Account.
4
II. GENERAL PROVISIONS
2.01. Change of Contract: Except as provided below, only an authorized
officer of Aetna may change the terms of this Contract. Aetna will
notify the Contract Holder in writing at least 30 days before the
effective date of any change. Any change will not affect the amount or
terms of any Annuity which begins before the change. The following
provisions of this Contract will not be changed:
(a) Net Purchase Payment(s)
(b) Guaranteed Interest Rate - Fixed Account
(c) Net Retum Factor(s) - Separate Account
(d) Current Value
(e) Surrender Value
(f) Fund(s) Annuity Unit Value - Separate Account
(g) Annuity Options
(h) Fixed Annuity minimum interest rate
(i) Maximum transfer, maintenance, or surrender fees.
This Contract may also be changed as required by federal or state law.
2.02. Change of Fund(s): Aetna, or the Separate Account may:
(a) Change the Fund(s) which may be invested in by the Separate
Account; and
(b) Replace the shares of any Fund(s) held in the Separate Account
with shares of any other Fund(s).
Changes must be:
(a) Approved by a majority vote of persons having an interest in
the Separate Account and the Fund(s);
(b) Deemed necessary by Aetna under the Investment Company Act of
1940; or
(c) Deemed necessary by Aetna to accomplish the purpose of the
Separate Account.
Aetna will notify the Contract Holder of any change.
2.03. Nonparticipating Contract: The Contract Holder, Annuitant, or
beneficiaries will not have a right to share in the earnings of Aetna.
2.04. Payments: Aetna will make Annuity payments as and when due. Aetna will
make other payments within 7 days of receipt at its Home Office of a
written claim for payment which is in good order, except as provided in
3.13.
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 Contract: See Part V.
2.07. Designation of Beneficiary: See Part V.
2.08. Misstatements and Adjustments: If Aetna finds the age of any payee to
be misstated, the correct facts will be used to adjust payments.
5
2.09. lncontestability: Aetna cannot cancel this Contract because of any
error of fact on the application.
2.10. Grace Period: This Contract will remain in effect even if Purchase
Payments are not continued.
6
III. PURCHASE PAYMENT,
CURRENT VALUE, AND
SURRENDER PROVISIONS
3.01. Net Purchase Payment(s): The actual Purchase Payment(s) less any
premium tax. Generally, Aetna will deduct the premium tax when Annuity
benefits are purchased (see Part IV). If Aetna determines that it must
pay a premium tax when Purchase Payment(s) are received or at any other
time, it will deduct the tax at that time.
The Net Purchase Payment(s) may be credited to:
(a) The Fixed Account; and
(b) The Fund(s) in which the Separate Account invests.
Aetna must be told the percentage of the Net Purchase Payments to be
applied to each investment above.
During any calendar year, Aetna may be told to change the investment
mix twelve times. Should Aetna allow additional changes, each may be
subject to a fee of up to $10.
3.02. Guaranteed Interest Rate - Fixed Account: On any Purchase Payment(s)
made to the Fixed Account, Aetna will add interest daily at an annual
rate no less than 4%. Aetna may add interest daily at any higher rate
determined by its Board of Directors.
3.03. Maintenance Fee: See Part V.
3.04. Fund(s) Record Units - Separate Account: The portion of the Net
Purchase Payment(s) applied to the Separate Account will determine the
number of Fund(s) Record Units. This number is equal to the Net
Purchase Payment applied to the Fund divided by the Fund(s) Record Unit
Value (see 3.06) for the Valuation Period in which the Purchase Payment
is received in good order.
3.05. Net Return Factor(s) - Separate Account: The Net Return Factors are
used to compute all Separate Account Values and payments for any Fund.
The Net Retum 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 (see 3.06 and 4.07) at the start
of the Valuation Period; minus
(e) A daily actuarial charge at an annual rate of 1.25% for
Annuity mortality and expense risks and profit and a daily
administrative charge which will not exceed 0.25% on an annual
basis.
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.
7
The administrative charge may be changed annually except for amounts
which have been used to purchase an Annuity. This charge will not
exceed 0.25%
3.06 Fund(s) Record Unit Value - Separate Account: The Fund(s) Record Unit
Value is computed by multiplying the Net Return Factor for the current
Valuation Period by the Fund(s) Record Unit Value for the previous
Period. The dollar value of the Fund(s) Record Units, Separate Account
assets, and Variable Annuity payments may go up or down due to
investment gain or loss.
3.07. Current Value: The Current Value of this Contract is equal to:
(a) Any amounts in the Fixed Account, including Fixed Account
interest added by Aetna; plus
(b) The sum of any Separate Account Record Unit Value(s); less
(c) Any Maintenance Fee(s) due.
Current Value does not include amounts used to purchase an Annuity.
3.08. Transfer of Current Value from the Funds: Before an Annuity Option is
elected, all or any portion of the Current Value may be transferred
from any Fund to any other Fund or to the Fixed Account.
Twelve transfers of Current Value can be made during a calendar year
period. Should Aetna allow additional changes, each may be subject to a
fee of up to $10.
3.09. Transfer of Current Value from the Fixed Account: 10% of the Current
Value held in the Fixed Account may be transferred to any Fund(s). Such
transfer will be:
(a) Without charge;
(b) Allowed once per calendar year; and
(c) Not allowed under an Annuity Option.
Aetna may, on a temporary basis, allow any larger percent to be
transferred.
The Current Value of the Fixed Account, as used above, is the value
when the request is received at Aetna's Home Office in good order.
3.10. Notice to the Contract Holder: Before an Annuity Option is elected,
Aetna will notify the Contract Holder each year of:
(a) The value of any amounts held in:
(1) The Fixed Account;
(2) The Fund(s) for the Separate Account;
(b) The number of any Fund(s) Record Units; and
(c) The Fund(s) Record Unit Value(s).
Such number or values will be as of a date no more than 60 days before
the date of the notice.
3.11. Sum Payable at Death (Before Annuity Payments Start): See Part V.
3.12. Surrender Value: See Part V.
3.13. Payment of Surrender Value: Under certain emergency conditions, Aetna
may defer payment:
(a) For a period of up to 6 months (unless not allowed by state
law); and
(b) As provided by federal law.
Aetna may pay any Fixed Account surrender value with interest in equal
payments over a period not to exceed 60
8
months when the amount held in the Fixed Account under this Contract
exceeds $250,000 on the day prior to the current surrender request.
This will apply only if the sum of the amounts surrendered within the
past 12 months and the amount of the current surrender exceeds 20% of
such Fixed Account amount.
Interest, as used above, will not be more than two percentage points
below any rate determined prospectively by the Board of Directors for
this class of Contract. In no event will the interest rate be less than
4%.
3.14. Distribution Options (Estate Conservation Option (ECO)/Systematic
Withdrawal Option (SWO)): See Part V.
3.15. Reinstatement: All or a portion of the proceeds of a full surrender of
this Contract may be reinvested within 30 days after the surrender if
allowed by law. Any Maintenance Fee and Surrender Fee charged at the
time of surrender on the amount being reinvested will be included in
the reinstatement. Amounts will be reinstated among the Fixed Account
and the Separate Account Fund(s) in the same proportion as they were at
the time of surrender. 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.
Any Maintenance Fee which falls due after the surrender and before the
reinstatement will be deducted from the amount reinstated.
Reinstatement is permitted only once.
9
IV. ANNUITY PROVISIONS
4.01. Choices to be Made: The Contract Holder may tell Aetna to pay any
portion of the Current Value (minus any premium tax) as a premium for
an Annuity under Option 2, 3, or 4 (see 4.08). This election must be
made in a form acceptable to Aetna within the 90 day period ending on
the date payments are to begin. A Contract Holder may revoke an
election at any time prior to the date the payments start. However, the
spouse of a married Contract Xxxxxx, under a Contract subject to the
provisions of Section 5.03, must consent to the first election and any
new choice other than Option 4(e) (see 4.08).
When an Option is chosen, Aetna must also be told whether payments are
to be made other than monthly and to pay:
(a) A Fixed Annuity using the General Account;
(b) A Variable Annuity using any of the Fund(s) made available by
Aetna for Annuity purposes; or
(c) A combination of (a) and (b).
If a Fixed Annuity is chosen, Aetna will add interest daily at an
annual rate no less than 3.5%. Aetna may add interest daily at any
higher rate.
If a Variable Annuity is chosen, an Assumed Annual Net Return Rate of
5% may be chosen. If not chosen, Aetna will use an Assumed Annual Net
Return Rate of 3.5%.
4.02. Annuity Payments to Annuitant: In no event may any payments to the
Annuitant under any Annuity Option extend beyond:
(a) The life of the Annuitant;
(b) The lives of the Annuitant and the Annuitant's beneficiary
under the Plan;
(c) Any certain period greater than the Annuitant's life
expectancy according to regulations under Code Section 401
(a)(9), determined as of the date payments are to begin. (Code
Section 401 (a)(9) regulations are not applicable to Section
5.04, Individual Annuity Plans); or
(d) A period certain greater than the life expectancies of the
Annuitant and the Annuitant's beneficiary under the Plan,
according to regulations under Code Section 401 (a)(9),
determined as of the date payments are to begin. (Code Section
401 (a)(9) regulations are not applicable to Section 5.04,
Individual Annuity Plans.)
4.03. Annuity Payments to Annuitant's Beneficiary: In no event may payments
to the beneficiary under an Annuity Option extend beyond:
(a) The life of the beneficiary; or
(b) Any certain period greater than the beneficiary's life
expectancy as determined by regulations under Code Section 401
(a)(9). (Code Section 401 (a)(9) regulations are not
applicable to Section 5.04, Individual Annuity Plans.)
The present value of any remaining payments due after the death of both
Annuitants under a joint and survivor Annuity Option, (see 4.08), will
be made to the beneficiary designated by the Contract Holder or to the
Contract Xxxxxx's estate. The second Annuitant does not have the right
to change the beneficiary upon the Contract Xxxxxx's death.
10
4.04. Terms of Annuity Options:
(a) When payments start, the age of the Annuitant plus the number
of years for which payments are guaranteed must not exceed 95.
(b) The present value of the expected payments to the Annuitant
when payments start shall be determined according to the
Tables under IRS regulations to comply with the minimum
distribution incidental death benefit rule. This restriction
does not apply if Option 4 is chosen and the second Annuitant
is the spouse of the Annuitant.
(c) No choice of any Annuity Option may be made if the first
payment would be less than $20 or if the total payments in a
year would be less than $100.
(d) If a Fixed Annuity under Option 2, 3 or 4 is chosen and a
larger payment would result from applying the surrender value
to a current Aetna single premium immediate Annuity, Aetna
will make the larger payment.
(e) The Annuitant's age will be reduced by one year for Annuity
commencement dates occurring during the 1990's, reduced by two
years for Annuity commencement dates occurring during the
decade 2000- 2009, and so on. The Annuitant's adjusted age is
determined based on the age as of the birthday closest to the
date of the first Annuity payment. The Annuity rates for
Options 3 and 4 are based on mortality from 1983 Table a.
(f) 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
and, if
11
applicable, any administrative charge if future Variable
Annuity Payments are to remain level.
4.05. Death of Annuitant/Beneficiary: When an Annuitant dies under Options 2
and 3, or if both the Annuitant and survivor die under Option 4 (d),
the present value of any remaining guaranteed payment will be paid in
one sum to the beneficiary, or upon election by the beneficiary, any
remaining payments will continue to the beneficiary. If there is no
beneficiary under Option 2 and 3, the present value of any remaining
payments will be paid in one sum to the estate of the Annuitant. If
there is no beneficiary under Option 4(d), the present value of any
remaining payments will be paid in one lump sum to the last survivor's
estate.
If the Annuitant dies under Option 1, the amount held plus accrued
interest will be paid in one sum to the beneficiary. If there is no
beneficiary, the lump sum will be paid to the Annuitant's estate.
If the beneficiary dies while receiving annuity payments elected by the
Annuitant, the present value of any remaining payments will be paid in
one sum to the beneficiary's estate unless otherwise elected. The
interest rate used to determine the first payment will be used to
calculate the present value.
4.06. Fund(s) Annuity Units - Separate Account: The number of Fund(s) Annuity
Units is based on 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 4.07) on the tenth
Valuation Period before the due date of the first payment to determine
the number of each Fund(s) Annuity Units. The number of each Fund(s)
Annuity Units remains fixed. Each future payment is equal to the sum of
the products of each Fund(s) Annuity Unit Value multiplied by the
appropriate number of Units. The Fund(s) Annuity Unit value on the
tenth Valuation Period prior to the due date of the Payment is used.
4.07. Fund(s) Annuity Unit Value - Separate Account: For any Valuation
Period, a Fund(s) Annuity Unit Value is equal to:
(a) The Value for the previous Period; multiplied by
(b) The Net Return Factor(s) (see 3.05) for the Period; multiplied
by
(c) A factor to reflect the Assumed Annual Net Return Rate.
The factor for 3.5% per year is .9999058; for 5% per year it is
.99998663.
The dollar value of the Fund(s) Annuity Unit Values and payments may go
up or down due to investment gain or loss.
If Variable Annuity payments are not to decrease, Aetna must earn a
gross return on the assets of the Separate Account of:
[bullet] 4.75% on an annual basis plus an annual return of up to 0.25%
needed 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
12
[bullet] 6.25% on an annual basis plus an annual return of up to 0.25%
needed to offset the administrative charge set at the time
Annuity payments commence if an Assumed Annual Net Return Rate
of 5% is chosen.
Payments shall not be changed due to changes in the mortality or
expense results or administrative charges.
4.08. Annuity Options:
Option 1 - Payments of interest on Sum Left with Aetna - This Option
may be used only by the beneficiary when the Annuitant dies before
Aetna has started paying an Annuity. A portion or all of the sum paid
upon death may be held under this Option and will be held in the
General Account of Aetna at interest (see 4.01). The beneficiary may
later tell Aetna to:
(a) Pay a portion or all of the sum held by Aetna; or
(b) Apply a portion or all of the sum held by Aetna to any Annuity
Option below.
If this Contract is subject to Code Section 401 (a)(9), and the
beneficiary elects that the full sum paid upon death is to be held
under this Option, the beneficiary, if a spouse, must elect (a) or (b)
above within 5 years after the death of the Annuitant. If the
beneficiary is not a spouse, the beneficiary must tell Aetna to pay the
full sum within 5 years after the death of the Annuitant.
Option 2 - Payments for a Stated Period of Time - An Annuity will be
paid for the number of years chosen. The number of years must be at
least 3 and not more than 30.
If payments for this Option are made under a Variable Annuity, the
present value of any remaining payments may be withdrawn at any time.
If a withdrawal is requested within 3 years after the start of
payments, it will be treated as a surrender (see Part V).
Option 3 - Life Income - An Annuity will be paid for the life of the
Annuitant. If also chosen, Aetna will guarantee payments for 60, 120, 1
80, or 240 months.
Option 4 - Life Income for Two Payees An Annuity will be paid during
the lives of the Annuitant and a second Annuitant. At the death of
either, payments will continue to the survivor. When this Option is
chosen, a choice must be made of:
(a) 100% of the payment to continue to the survivor;
(b) 662/3% of the payment to continue to the survivor;
(c) 50% of the payment to continue to the survivor; or
(d) Payments guaranteed for 120 months, with 100% of the payment
to continue to the survivor.
(e) 100% of the payment to continue to the survivor if the
survivor is the Annuitant and 50% of the payment to continue
to the survivor if the survivor is the second Annuitant.
Other Options - Aetna may make other options available as allowed by
the laws of the state in which this Contract is delivered.
13
OPTION 2
PAYMENTS FOR A STATED PERIOD OF TIME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Years of Amount of Years of Amount of Years of Amount of
Payments Payments Payments Payments Payments Payments
-------- -------- -------- -------- -------- --------
3 $29.19 13 $7.94 22 $5.39
4 22.27 14 7.49 23 5.24
5 18.12 15 7.10 24 5.09
6 15.35 16 6.76 25 4.96
7 13.38 17 6.47 26 4.84
8 11.90 18 6.20 27 4.73
9 10.75 19 5.97 28 4.63
10 9.83 20 5.75 29 4.53
11 9.09 21 5.56 30 4.45
12 8.46
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Years of Amount of Years of Amount of Years of Amount of
Payments Payments Payments Payments Payments Payments
-------- -------- -------- -------- -------- --------
3 $29.80 13 $8.64 22 $6.17
4 22.89 14 8.20 23 6.02
5 18.74 15 7.82 24 5.88
6 15.99 16 7.49 25 5.76
7 14.02 17 7.20 26 5.65
8 12.56 18 6.94 27 5.54
9 11.42 19 6.71 28 5.45
10 10.51 20 6.51 29 5.36
11 9.77 21 6.33 30 5.28
12 9.16
14
OPTION 3
LIFE INCOME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
-------------------------------------------------
None 60 120 180 240
Age of ---- -- --- --- ---
Annuitant Male Female Male Female Male Female Male Female Male Female
--------- ---- ------ ---- ------ ---- ------ ---- ------ ---- ------
50 $4.56 $4.20 $4.55 $4.19 $4.51 $4.18 $4.45 $4.15 $4.36 $4.11
51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16
52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21
53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27
54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32
55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38
56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44
57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50
58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57
59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63
60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70
61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77
62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84
63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91
64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98
65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05
66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12
67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18
68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25
69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31
70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.85 5.51 5.37
71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42
72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47
73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51
74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55
75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
Rates are based on mortality from 1983 Table a.
Rate for ages not shown will be provided on request and will be computed on a
basis consistent with the rates in the above tables.
15
OPTION 3
LIFE INCOME
AMOUNT OF FIRST 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 Months
-------------------------------------------------
None 60 120 180 240
Age of ---- -- --- --- ---
Annuitant Male Female Male Female Male Female Male Female Male Female
--------- ---- ------ ---- ------ ---- ------ ---- ------ ---- ------
50 $5.48 $5.12 $5.46 $5.11 $5.41 $5.09 $5.34 $5.06 $5.24 $5.01
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10
53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20
55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25
56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37
58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48
60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55
61 6.60 6.00 6.55 5.97 6.39 5.90 6.15 5.77 5.85 5.61
62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67
63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73
64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80
65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86
66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92
67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99
68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04
69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10
70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15
71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20
72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25
73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29
74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33
75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
Rates are based on mortality from 1983 Table a.
Rate for ages not shown will be provided on request and will be computed on a
basis consistent with the rates in the above tables.
16
OPTION 4
LIFE INCOME FOR TWO PAYEES
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
NO MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Female Annuitant
-----------------------
Age of
Male Annuitant 45 50 55 60 65 70 75 80 85
-------------- -- -- -- -- -- -- -- -- --
45 $3.69 $3.80 $3.90 $3.98 $4.05 $4.11 $4.15 $4.18 $4.20
50 3.75 3.89 4.03 4.16 4.27 4.36 4.43 4.48 4.52
55 3.81 3.97 4.16 4.34 4.51 4.66 4.78 4.86 4.92
60 3.84 4.04 4.27 4.51 4.76 4.99 5.18 5.33 5.43
65 3.87 4.09 4.35 4.66 4.99 5.34 5.66 5.92 6.11
70 3.90 4.13 4.42 4.78 5.19 5.67 6.16 6.61 6.95
75 3.91 4.15 4.47 4.86 5.35 5.95 6.64 7.33 7.95
80 3.92 4.17 4.50 4.92 5.46 6.17 7.04 8.04 9.03
85 3.92 4.18 4.51 4.95 5.53 6.31 7.34 8.63 10.05
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant
-----------------------
Age of Male
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $4.63 $4.72 $4.81 $4.89 $4.96 $5.02 $5.07 $5.10 $5.12
50 4.68 4.80 4.93 5.05 5.16 5.25 5.33 5.38 5.42
55 4.73 4.88 5.04 5.21 5.38 5.52 5.65 5.74 5.80
60 4.77 4.95 5.15 5.37 5.61 5.83 6.04 6.19 6.30
65 4.80 5.00 5.24 5.52 5.83 6.17 6.49 6.76 6.96
70 4.82 5.04 5.30 5.63 6.04 6.49 6.97 7.42 7.79
75 4.84 5.06 5.35 5.72 6.20 6.77 7.45 8.14 8.76
80 4.85 5.08 5.39 5.79 6.31 6.99 7.86 8.84 9.83
85 4.86 5.10 5.41 5.83 6.39 7.15 8.16 9.43 10.86
Rates are based on mortality from 1983 Table a.
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.
17
OPTION 4
LIFE INCOME FOR TWO PAYEES
JOINT AND LAST SURVIVOR ANNUITY
662/3% TO THE SURVIVOR
NO MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Female Annuitant
-----------------------
Age of Male
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $3.94 $4.06 $4.20 $4.36 $4.54 $4.74 $4.96 $5.19 $5.42
50 4.05 4.20 4.36 4.55 4.76 4.99 5.24 5.51 5.78
55 4.18 4.35 4.54 4.76 5.00 5.28 5.58 5.90 6.22
60 4.32 4.51 4.73 4.99 5.29 5.63 6.00 6.40 6.79
65 4.48 4.69 4.95 5.25 5.61 6.03 6.51 7.02 7.52
70 4.66 4.89 5.18 5.53 5.97 6.49 7.10 7.77 8.45
75 4.84 5.09 5.42 5.82 6.33 6.96 7.73 8.62 9.56
80 5.02 5.30 5.65 6.11 6.69 7.43 8.39 9.54 10.82
85 5.19 5.49 5.87 6.37 7.02 7.88 9.02 10.46 12.15
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant
-----------------------
Age of Male
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $4.87 $4.99 $5.12 $5.28 $5.46 $5.68 $5.93 $6.21 $6.49
50 4.99 5.12 5.27 5.45 5.66 5.90 6.18 6.50 6.82
55 5.12 5.26 5.44 5.65 5.89 6.17 6.50 6.86 7.23
60 5.27 5.43 5.63 5.87 6.16 6.50 6.89 7.32 7.76
65 5.44 5.63 5.85 6.14 6.49 6.90 7.38 7.92 8.47
70 5.64 5.85 6.11 6.44 6.84 7.35 7.96 8.64 9.36
75 5.86 6.09 6.38 6.75 7.23 7.84 8.60 9.49 10.46
80 6.09 6.33 6.65 7.07 7.62 8.34 9.28 10.42 11.71
85 6.30 6.57 6.92 7.38 8.00 8.83 9.93 11.35 13.04
Rates are based on mortality from 1983 Table a.
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.
18
OPTION 4
LIFE INCOME FOR TWO PAYEES
JOINT AND LAST SURVIVOR ANNUITY
50% TO THE SURVIVOR
NO MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Second Annuitant
-----------------------
Age of
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $4.07 $4.21 $4.38 $4.58 $4.83 $5.13 $5.49 $5.91 $6.35
50 4.22 4.37 4.55 4.77 5.04 5.37 5.77 6.23 6.72
55 4.40 4.56 4.76 5.00 5.29 5.66 6.10 6.62 7.18
60 4.61 4.79 5.00 5.27 5.60 6.01 6.51 7.11 7.76
65 4.87 5.06 5.31 5.61 5.99 6.46 7.04 7.74 8.52
70 5.17 5.39 5.66 6.01 6.44 6.99 7.68 8.52 9.47
75 5.49 5.75 6.06 6.46 6.96 7.61 8.43 9.45 10.64
80 5.84 6.13 6.49 6.95 7.54 8.29 9.29 10.54 12.03
85 6.18 6.51 6.91 7.43 8.11 9.00 10.17 11.71 13.57
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant
-----------------------
Age of Male
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $5.01 $5.14 $5.30 $5.50 $5.75 $6.08 $6.48 $6.96 $7.49
50 5.15 5.29 5.46 5.68 5.95 6.29 6.73 7.25 7.82
55 5.33 5.48 5.66 5.89 6.18 6.56 7.03 7.60 8.24
60 5.56 5.71 5.91 6.16 6.49 6.90 7.42 8.06 8.78
65 5.83 6.01 6.23 6.51 6.87 7.33 7.93 8.67 9.50
70 6.17 6.36 6.61 6.93 7.34 7.87 8.56 9.43 10.43
75 6.55 6.78 7.05 7.42 7.89 8.51 9.33 10.35 11.57
80 6.98 7.23 7.54 7.96 8.51 9.23 10.20 11.44 12.95
85 7.40 7.68 8.05 8.53 9.16 10.00 11.14 12.64 14.51
Rates are based on mortality from 1983 Table a.
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.
19
OPTION 4
LIFE INCOME FOR TWO PAYEES
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
120 MONTHS MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Female Annuitant
-----------------------
Age of Male
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $3.69 $3.79 $3.89 $3.98 $4.05 $4.11 $4.15 $4.17 $4.19
50 3.75 3.89 4.03 4.16 4.27 4.36 4.42 4.47 4.49
55 3.80 3.97 4.15 4.34 4.51 4.65 4.76 4.83 4.88
60 3.84 4.04 4.26 4.50 4.75 4.97 5.16 5.29 5.36
65 3.87 4.09 4.35 4.65 4.98 5.31 5.61 5.83 5.97
70 3.89 4.13 4.41 4.76 5.17 5.62 6.07 6.43 6.67
75 3.91 4.15 4.46 4.84 5.31 5.87 6.48 7.02 7.40
80 3.91 4.16 4.48 4.89 5.41 6.05 6.79 7.50 8.04
85 3.92 4.17 4.49 4.91 5.46 6.15 6.98 7.83 8.50
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant
-----------------------
Age of Male
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $4.63 $4.72 $4.81 $4.89 $4.96 $5.02 $5.06 $5.09 $5.11
50 4.68 4.80 4.93 5.05 5.15 5.25 5.32 5.36 5.39
55 4.73 4.88 5.04 5.21 5.37 5.51 5.63 5.71 5.75
60 4.77 4.94 5.14 5.37 5.60 5.82 6.00 6.14 6.22
65 4.80 4.99 5.23 5.51 5.82 6.13 6.43 6.66 6.80
70 4.82 5.03 5.29 5.62 6.00 6.44 6.87 7.23 7.47
75 4.84 5.06 5.34 5.70 6.15 6.68 7.27 7.80 8.17
80 4.85 5.07 5.37 5.75 6.24 6.86 7.57 8.26 8.79
85 4.85 5.08 5.38 5.78 6.30 6.96 7.76 8.58 9.23
Rates are based on mortality from 1983 Table a.
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.
20
OPTION 4
LIFE INCOME FOR TWO PAYEES
JOINT AND 1/2 CONTINGENT LIFE INCOME ANNUITY
NO MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Female Annuitant
-----------------------
Age of Male
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $3.94 $4.00 $4.05 $4.10 $4.13 $4.16 $4.18 $4.20 $4.21
50 4.12 4.20 4.41 4.35 4.41 4.46 4.49 4.52 4.54
55 4.32 4.42 4.54 4.64 4.74 4.82 4.88 4.92 4.95
60 4.55 4.68 4.83 4.98 5.13 5.26 5.37 5.45 5.50
65 4.82 4.98 5.17 5.39 5.60 5.81 6.00 6.14 6.24
70 5.14 5.33 5.57 5.84 6.14 6.47 6.77 7.04 7.22
75 5.47 5.70 6.00 6.34 6.74 7.20 7.68 8.13 8.49
80 5.83 6.10 6.45 6.87 7.38 8.00 8.70 9.42 10.07
85 6.17 6.49 6.88 7.38 8.00 8.79 9.74 10.81 11.85
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant
-----------------------
Age of
Male
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $4.88 $4.93 $4.98 $5.02 $5.06 $5.09 $5.11 $5.13 $5.14
50 5.05 5.12 5.19 5.26 5.32 5.36 5.40 5.43 5.45
55 5.25 5.34 5.43 5.53 5.62 5.70 5.77 5.81 5.84
60 5.49 5.61 5.73 5.86 6.01 6.13 6.24 6.32 6.38
65 5.78 5.93 6.09 6.28 6.47 6.67 6.86 7.01 7.11
70 6.13 6.30 6.50 6.74 7.03 7.33 7.62 7.88 8.09
75 6.53 6.72 6.98 7.28 7.66 8.08 8.55 8.98 9.35
80 6.96 7.19 7.49 7.87 8.34 8.91 9.59 10.28 10.92
85 7.39 7.66 8.01 8.46 9.04 9.77 10.67 11.70 12.74
Rates are based on mortality from 1983 Table a.
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.
21
V. SPECIAL PROVISIONS
The Special Provisions section which applies to this Contract is shown
on the Specifications page under Type of Plan. The other sections under
Special Provisions do not apply.
5.01. Deferred Compensation Plan
(a) Control of Contract: All rights in this Contract rest with the
Contract Holder, who is entitled to all amounts held under this
Contract. The Contract Holder, or authorized designee of the
Contract Holder (as allowed by law), may make any choices allowed
by this Contract. Any choices made under this Contract must be in
writing. Until receipt of such choices in its Home Office, Aetna
may rely on any prior choices made. This Contract is not subject
to the claims of any creditors of the Participant except to the
extent permitted by law.
(b) Designation of Beneficiary: The beneficiary shall be the Contract
Holder.
(c) Maintenance Fee: The Maintenance Fee, if any, (see 6.01) will be
deducted from the Current Value on each anniversary of the
Contract effective date and upon surrender of the entire
Contract.
(d) Systematic Withdrawal Option (SWO): A distribution option under
which a portion of the Contract's Current Value will
automatically be surrendered and distributed each year.
(1) Amount of Distribution: The Contract Holder may elect the
payment method described below on behalf of the Participant.
[bullet] Specified Amount: Payments of a designated
dollar amount which must be no greater than 100%
of the initial Current Value. This amount will
remain constant unless a higher amount is
required under the Code minimum distribution
rules. Each year that the Specified Amount is in
effect, Aetna will calculate the minimum
required distribution under the Code and
distribute this amount if it is larger than the
amount elected by the Contract Holder. The life
expectancy factor for this purpose will be the
Participant's life expectancy at the time of the
election of this option, and with each
subsequent calendar year the factor will be
reduced by one. The minimum required
distribution will be determined by dividing the
Current Value as of December 31 of the year
prior to the payment year, by a life expectancy
factor.
The life expectancy factor is either the single life or
joint life expectancy, as elected by the Contract Holder on
behalf of the Participant, based on tables in Section
401(a)(9) of the Code or related regulations. If the joint
life expectancy is elected, upon either the Participant's or
the spouse's death, the minimum required distribution for
the Specified Amount payment method will continue to be
calculated in the same manner as described under Specified
Amount. Payments upon the
22
Participant's death will continue in the manner described
above, unless the spouse elects an alternate payment mode.
Any mode elected must provide payments to be made at least
as rapidly as those made prior to the Participant's death.
These calculations may be changed as necessary to comply
with the Code minimum distribution rules.
The joint life expectancy factor can only be elected based
on the joint life expectancy of the Participant and his or
her spouse.
(2) Minimum Initial Current Value: At its discretion, Aetna may
require a Minimum Initial Current Value for election of this
option. If after election of this option the Current Value
is insufficient to make a scheduled SWO payment, Aetna will
distribute the entire Contract balance.
(3) Date of Distribution: The Contract Holder shall specify the
initial distribution date on behalf of the Participant. The
Specified Amount payment method must be elected when the
Participant is eligible to begin receiving payments under
the Plan.
SWO payments will be made quarterly, semi-annually or
annually.
(4) Election and Revocation: SWO may be elected by the Contract
Holder on behalf of the Participant by submitting a
completed and signed election form to Aetna's Home Office.
Once elected, this option may be revoked by the Contract
Holder on behalf of the Participant by submitting a written
request to Aetna at its Home Office. Any revocation will
apply only to amounts not yet paid.
SWO may be elected only once.
(5) Reservation of Rights: Aetna reserves the right to change
the terms of SWO for future elections and discontinue the
availability of this option after proper notification. Aetna
also reserves the right to allow payments to be made more
frequently than quarterly.
(e) Sum Payable at Death (Before Annuity Payments Start): Aetna will
pay the Current Value as directed by the Contract Holder if:
(1) The Participant dies before Annuity payments start; and
(2) The notice of death is received in good order by Aetna.
The sum paid will be the Current Value on the date the notice is
received at Aetna's Home Office. The amount paid from the Fixed
Account will not be less than the Net Purchase Payment(s)
allocated to the Fixed Account plus interest (less any prior
transfers (see 3.09), surrenders, Maintenance Fees, or amounts
used to purchase Annuity Options). The Contract Holder may choose
to apply all or any part of the proceeds to an Annuity Option
(see Part IV).
23
(f) Surrender Value: After deduction of the Maintenance Fee (if any),
Aetna will reduce the amount payable upon surrender of any
portion of the Current Value by a Surrender Fee. The Surrender
Fee will be in accordance with the Surrender Fee table in 6.02.
The Fee on a total surrender of the Contract will not exceed 8.5%
of the Purchase Payment(s) made to the Contract .
(g) The following Sections 5.02, 5.03 and 5.04 of the Special
Provisions do not apply to this Contract.
5.02. Tax Deferred Annuity Plan
(a) The preceding Section 5.01 of the Special Provisions does not
apply to this Contract.
(b) Control of Contract: Each Contract Holder shall own all amounts
held in his or her Contract. Each Contract Holder may make any
choices allowed by this Contract. Choices made under this
Contract must be in writing. Until receipt of such choices in its
Home Office, Aetna may rely on any previous choices made. This
Contract and any accounts shall not be subject to the claims of
any creditors. This Contract is nonassignable, and
nontransferable except to Aetna in the event of any outstanding
loan plus interest, or pursuant to a "qualified domestic
relations order" as set forth under the Retirement Equity Act of
1984.
(c) Designation of Beneficiary: Each Contract Holder shall name a
beneficiary. The beneficiary may be changed at any time. Until
receipt of a written request to change the beneficiary, Aetna may
rely upon the last named beneficiary.
(d) Maintenance Fee: The Maintenance Fee, if any, (see 6.01) will be
deducted from the Current Value on each anniversary of the
Contract effective date and upon surrender of the entire
Contract.
(e) Loan Value: During the Accumulation Period, the Contract Holder
may request a loan from his or her Current Value by submitting a
loan request form to Aetna's Home Office. A loan may not be
requested within 12 months from the date of any prior loan. The
following conditions must also be met:
(1) The minimum Current Value must be $5,000. The loan amount
must be at least $3,500. The loan amount may not exceed the
lesser of:
[bullet] 50% of the vested Current Value reduced by the
outstanding loan balance on the date on which
the loan is made; or
[bullet] $50,000 reduced by the highest outstanding
balance of loans within the preceding 12 months
ending on the day before the loan is made.
However, if the Current Value is between $5,000 and $20,000,
the loan amount is the lesser of:
[bullet] 75% of the vested Current Value reduced by the
outstanding loan balance on the date on which
the loan is made; or
[bullet] $10,000 reduced by the outstanding loan balance
on
24
the date on which the loan is made.
Loans can be made from those Contract values held in the
Fund(s) and the Fixed Account.
Aetna reserves the right to restrict or limit the amount
that may be borrowed from any investment option at any time.
However, the full value of all investment options is
included in the determination of the Current Value.
When a loan is made, the number of accumulation units equal
to the loan amount will be withdrawn from the Current Value.
Accumulation Units taken from the Current Value to provide a
loan do not participate in the investment experience of the
related investment options. Unless instructed otherwise, the
amount withdrawn will be allocated on a pro rata basis among
the Fixed Account and the Fund(s).
(2) Loan interest will accrue on a daily basis at the rate of 3%
annually.
(3) Principal and interest on loans will be amortized over a 5
year term.
However, principal and interest on loans taken for the
acquisition of a Contract Xxxxxx's principal residence may
be amortized over a period of 1 to 20 whole years, as
elected by the Contract Holder. The projected final
repayment must be no later than the end of the calendar year
in which the Contract Holder attains age 70.
(4) Repayment of principal and interest is required at 3 month
intervals. A bill in the amount of the quarterly repayment
due will be mailed to the Contract Holder in advance of the
payment due date. The repayment due date will be the first
business day of the third calendar month following the 7th
calendar day after the loan effective date. The loan
effective date will be the date Aetna receives the loan
request form in good order. Payment will be due before the
end of the month in which the due date falls.
(5) The repayments of principal will be allocated among the same
Contract investment options and in the same proportion as
when the loan was initially made.
(6) if a billed quarterly installment of principal and interest
is not paid by the last day of the month in which it is due,
a partial surrender equal to the quarterly amount of
principal and interest due, and a Surrender Fee, as
applicable, will be made from the Contract.
(7) If a partial surrender is taken from a Contract Xxxxxx's
Current Value due to nonpayment of a billed quarterly
installment, the date of the surrender will be the first
business day following the last day of the month in which
the repayment was due.
(8) If a repayment is received in excess of a billed amount, the
excess will be applied towards
25
the principal portion of the outstanding loan. Payments
received which are less than the billed amount will be
returned to the Contract Holder.
(9) Prepayment of the entire loan will be allowed. At the time
of prepayment, Aetna will bill the Contract Holder for any
accrued interest. Aetna will consider the loan paid when
this accrued interest is paid.
(10) If a Contract is surrendered or annuitized with an
outstanding loan balance, the loan is cancelled and taxable.
Accrued interest and any applicable Surrender Fee will be
deducted from the surrender amount. If the Contract is
surrendered due to the Contract Xxxxxx's death, no surrender
fee will be deducted.
(f) Estate Conservation Option (ECO) Distribution Option: ECO is a
distribution option under which a portion of the Contract's
Current Value will automatically be surrendered and distributed
each year.
(1) An ECO payment will be determined in the following manner:
a. Payments will commence no earlier than the year in
which the Contract Holder attains age 70 1/2, and will
be calculated on the full Contract Current Value of the
account, except as provided in b.
b. If Aetna maintains separate records of the Contract
Current Value as of December 31, (see below), payments
made in or after the year in which the Contract Holder
attains age 70 1/2, but before attaining age 75, will
only be calculated on amounts contributed after
December 31,1986, plus all investment earnings after
that date. The method under this rule is only used upon
election by the Contract Holder. It will no longer be
effective if the Contract Holder submits a withdrawal
request in addition to a scheduled ECO payment from the
account, at which time ECO payments will then be
determined under a.
Aetna will maintain separate records if the Contract
Xxxxxx has not requested any withdrawals from his or
her account since December 31,1986.
If the Contract Holder has attained age 70 1/2 prior to
January 1, 1988 or is a participant in a governmental or
church plan, the Contract Holder must be retired in order to
qualify for the exception under (b).
(2) Amount of Distribution: Each year that ECO is in effect,
Aetna will calculate and distribute an amount equal to the
minimum required distribution under the Code. The annual
distribution will be determined by dividing the Current
Value, including any current loan(s) outstanding, as of
December 31 of the year prior to the payment year, by a life
expectancy factor.
26
As elected by the Contract Holder, the factor is either the
single life or joint life expectancy based on tables in
Section 401(a)(9) of the Code or related regulations. If
joint life expectancy is elected, the payments upon death
will be calculated based on the survivor's life expectancy.
If there is no survivor, the Current Value will be paid in a
lump sum to the survivor's estate.
These calculations may be changed as necessary to comply
with the Code minimum distribution rules. The joint life
expectancy factor can only be elected based on the joint
life expectancy of the Contract Xxxxxx and his or her
spouse. The spouse must be named as the beneficiary of any
death benefits under the Plan while ECO is in effect.
(3) Minimum Initial Current Value: At its discretion, Aetna may
require a Minimum Initial Current Value for election of this
option. If after election of this option, the Current Value
is insufficient to make a scheduled ECO payment, Aetna will
distribute the entire Contract balance.
(4) Date of Distribution: Distribution will be made annually on
the 15th of any month or such other date Aetna may designate
or allow. The Contract Holder shall specify an initial
distribution month, not earlier than the calendar year in
which the Contract Holder attains age 70 1/2.
(5) Election and Revocation: ECO may be elected by the Contract
Holder by submitting a completed and signed election form to
Aetna's Home Office.
Once elected, this option may be revoked by the Contract
Holder by submitting a written request to Aetna at its Home
Office. Any revocation will apply only to amounts not yet
paid. ECO may be elected only once.
(6) Reservation of Rights: Aetna reserves the right to change
the terms of ECO for future elections and discontinue the
availability of this option after proper notification. Aetna
also reserves the right to allow payments to be made more
frequently than annually.
(g) Systematic Withdrawal Option (SWO): A distribution option under
which a portion of the Contract's Current Value will
automatically be surrendered and distributed each year.
(1) Amount of Distribution: The Contract Holder may elect one of
the two payment methods described below.
[bullet] Specified Amount: Payments of a designated
dollar amount which must be no greater than 10%
of the initial Current Value. This amount will
remain constant unless a higher amount is
required under the Code minimum distribution
rules. Each year that the Specified Amount is in
effect, Aetna will calculate the minimum
required distribution under the Code
27
and distribute this amount if it is larger than
the amount elected by the Contract Holder. The
life expectancy factor for this purpose will be
the Contract Xxxxxx's life expectancy for the
initial distribution year and with each
subsequent calendar year, the factor will be
reduced by one. The minimum required
distribution will be determined by dividing the
Current Value, including any current loan(s)
outstanding, as of December 31 of the year prior
to the payment year, by a life expectancy
factor.
[bullet] Specified Period: Payments which are made over a
period of time. The Period must be at least 10
years unless otherwise required by the Code
minimum distribution rules. The maximum
specified period will be limited by the Code
minimum distribution rules. 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.
The life expectancy factor is either the single life or
joint life expectancy, as elected by the Contract Holder,
based on tables in the Code or related regulations. If the
joint life expectancy is elected, upon either the Contract
Xxxxxx's or the spouse's death, the minimum required
distribution for the Specified Amount payment method will
continue to be calculated in the same manner as described
under Specified Amount.
These calculations may be changed as necessary to comply
with the Code minimum distribution rules. The joint life
expectancy factor can only be elected based on the joint
life expectancy of the Contract Xxxxxx and his or her
spouse. The spouse must be named as the beneficiary of any
death benefits under the Contract while SWO is in effect.
Upon death, payments will continue in the manner described
above under Specified Amount and Specified Period, unless
otherwise elected by the beneficiary. Any mode elected by
the beneficiary, must provide payments to be made at least
as rapidly as those made prior to the Contract Xxxxxx's
death.
(2) Minimum Initial Current Value: At its discretion, Aetna may
require a Minimum Initial Current Value for election of this
option. If after election of this option the Current Value
is insufficient to make a scheduled SWO payment, Aetna will
distribute the entire Contract balance.
(3) Date of Distribution: The Contract Holder shall specify the
initial distribution date. The earliest date is the first
day of the calendar year in which the Contract Holder
attains age 70 1/2.
SWO payments will be made annually.
28
Subsequent distributions will be made annually on the 15th
of the month or such other date Aetna may designate or
allow.
(4) Election and Revocation: SWO may be elected by the Contract
Holder by submitting a completed and signed election form to
Aetna's Home Office.
Once elected, this option may be revoked by the Contract
Holder by submitting a written request to Aetna at its Home
Office. Any revocation will apply only to amounts not yet
paid. SWO may be elected only once.
(5) Reservation of Rights: Aetna reserves the right to change
the terms of SWO for future elections and discontinue the
availability of this option after proper notification. Aetna
also reserves the right to allow payments to be made more
frequently than annually.
(h) Sum Payable at Death (Before Annuity Payments Start): The Current
Value payable under the terms of this section will be reduced by
the amount of the accrued interest on any outstanding loan. Aetna
will pay the Current Value to the beneficiary when:
(1) The Contract Holder dies before Annuity payments start; and
(2) The notice of death is received in good order by Aetna.
The sum payable will be the Current Value on the date when the
notice is received in good order at Aetna's Home Office. The
amount paid from the Fixed Account will not be less than the Net
Purchase Payment(s) allocated to the Fixed Account plus interest
(less any prior transfers (see 3.09), surrenders, Maintenance
Fees, or amounts used to purchase Annuity Options). The
beneficiary may choose to apply any sum under an Annuity Option
(see Part IV), subject to any other terms and conditions of this
Contract, or to receive a lump sum.
If the beneficiary is the surviving spouse, the first Annuity
payment or the lump sum payment may be deferred to a date not
later than December 31 of the year in which the Contract Holder
would have attained age 70 1/2 or such later date as may be
allowed under Federal law or regulations.
If the beneficiary is not the surviving spouse, all of the
Current Value must either be applied to an Annuity Option within
one calendar year of the Contract Xxxxxx's death or be paid to
the beneficiary within 5 calendar years of the Contract Xxxxxx's
death (see Part IV).
In no event may payments to any beneficiary under an Annuity
Option extend beyond the life of the beneficiary or any period
certain greater than the beneficiary's life expectancy. If no
beneficiary exists, the payment will be made to the estate of the
Contract Holder.
(i) Surrender Value: After deduction of the Maintenance Fee, if any,
the amount payable by Aetna upon the total surrender of a
Contract with a loan(s) outstanding shall be reduced by accrued
interest and if applicable, a Surrender Fee on the loan amount.
29
The Surrender Fee will be in accordance with the Surrender Fee
table in 6.02.
The fee on a total surrender of the Contract will not exceed 8.5%
of the actual Purchase Payment(s) made to the Contract.
If the Contract Holder does not request commencement of benefits
as described in subsection (I), Aetna will not be responsible for
compliance with the Code 401(a)(9) minimum distribution
requirements and for any adverse tax consequences that may
result.
(j) Surrender Restrictions: Limitations apply to full and partial
surrenders of the Restricted Amount from this Contract, as
required by Code Section 403(b)(11). The Restricted Amount is the
sum of:
(1) Net Purchase Payments attributable to Contract Holder salary
reduction contributions made on and after January 1, 1989;
plus
(2) The net increase, if any, in the Current Value of the
account after December 31, 1988 attributable to investment
gains and losses and credited interest.
The Restricted Amount may be fully or partially surrendered only
if one or more of the following conditions are met:
(1) The Contract Holder has reached age 59 1/2;
(2) The Contract Holder has separated from service;
(3) The Contract Holder has died;
(4) The Contract Holder has become disabled, within the meaning
of Code Section 72(m)(7); or
(5) The withdrawal is otherwise allowed by federal law,
regulations or rulings.
A full or partial surrender is also allowed if the Contract
Holder incurs a "hardship" as that term is defined in the Code or
regulations under 403(b). However, the amount available for
hardship is limited to the lesser of the amount necessary to
satisfy the need, or the Net Purchase Payments attributable to
Contract Holder salary reduction contributions made on and after
January 1, 1989.
Aetna may require that the Contract Holder certify and/or provide
satisfactory proof that one of these conditions has been met
before a surrender request will be considered to be in good
order.
The Contract Holder or beneficiary must notify Aetna in writing
when a lump sum payment is to be made or Annuity payments are to
commence.
(k) Limitation on Contributions: The Purchase Payment(s) made to the
Contract in any year cannot exceed the lesser of the amount
determined under the exclusion allowance of Code Section
403(b)(2) or the annual additions limitation of Code Section
415(c)(1). In addition, in no event may the Purchase Payment(s)
attributable to elective deferrals as defined in Code Section
402(g) exceed $9,500 (or, such larger amount as adjusted by the
Secretary of the Treasury) during any calendar year, unless the
alternate limitation of Code Section 402(g)(8) applies.
30
(l) Timing of Distributions: The distribution of benefits accrued
after December 31, 1986, must be made in a lump sum or must begin
not later than the April 1 following the calendar year in which
the Contract Holder attains age 70 1/2.
The above does not apply if the Contract Holder is affiliated
with a governmental entity or a church or attains age 70 1/2
before January 1, 1988. For such a Contract Holder, the
distribution of benefits accrued after December 31, 1986, must be
made or must begin not later than the April 1 following the
calendar year in which the Contract Holder attains age 70 1/2 or
retires, whichever occurs later.
The required distribution described in either of the above rules
must be made over the life of the Contract Holder (or the joint
lives of the Contract Holder and beneficiary) or over a period
not exceeding the life expectancy of the Contract Holder (or the
joint life expectancies of the Contract Holder and the
beneficiary).
If the Contract Holder does not request commencement of benefits
as described above, Aetna will not be responsible for compliance
with the Code 401(a)(9) minimum distribution requirements and for
any adverse tax consequences that may result.
(m) The following Sections 5.03 and 5.04 of the Special Provisions
does not apply to this Contract.
5.03. Tax Deferred Annuity Plan (ERISA)
(a) The preceding Sections 5.01 and 5.02 of the Special Provisions do
not apply to this Contract.
(b) Control of Contract: This is a Contract between the Contract
Holder and Aetna only to satisfy the "purchase" requirements of
Code Section 403(b)(1), as amended. The Contract Holder has no
right, title, or interest in the amounts held under the Contract
either by reason of remitting Purchase Payments or applying for
this Contract.
The Contract Holder shall notify Aetna in writing of the
applicability of Title 1 of the Employee Retirement Income
Security Act of 1974 as amended by subsequent law including the
Retirement Equity Act of 1984 (Act) to the Contract. Aetna shall
rely on the Contract Holder's determination and representation of
applicability.
Each Participant shall own all amounts held in his or her
Contract. Each Participant may make any choices allowed by this
Contract. Choices made under this Contract must be in writing.
Until receipt of such choice in its Home Office, Aetna may rely
on any previous choices made. This Contract shall not be subject
to the claims of any creditors. This Contract is nonassignable
and nontransferable, except to Aetna in the event of any
outstanding loan plus interest, or pursuant to a "qualified
domestic relations order" as set forth under the Act.
(c) Designation of Beneficiary: Each Participant shall name a
beneficiary. However, if the Participant is married
31
on the date of death, Aetna shall disregard the named beneficiary
and shall treat the current spouse as sole beneficiary, if:
(1) The Participant had not reached age 35; or
(2) The Participant had reached age 35, and the appropriate
preretirement survivor benefit waiver and spousal consent
form(s) has not been submitted to Aetna.
Any existing or future beneficiary designations not in
conformance with this provision are null and void. The
designation of a beneficiary by an unmarried Participant must be
accompanied by the appropriate spousal consent form.
(d) Maintenance Fee: The Maintenance Fee, if any, (see 6.01) will be
deducted from the Current Value on each anniversary of the
Contract effective date and upon surrender of the entire
Contract.
(e) Loan Value: During the Accumulation Period, the Participant may
request a loan from his or her Current Value by submitting a loan
request form to Aetna's Home Office. If the Participant is
married, his or her spouse must consent in writing and in a form
acceptable to Aetna before the loan will be made. A loan will not
be allowed within 12 months from the date of any prior loan. The
Loan Effective Date will be the date the Home Office receives the
loan request form and spousal consent, if necessary, in good
order. All loans are subject to the following conditions:
(1) The minimum vested Current Value must be $2,000. The loan
amount must be at least $1,000. The loan amount may not
exceed the lesser of:
[bullet] 50% of the vested Current Value reduced by any
outstanding loan balance(s) on the date on which
the loan is made; or
[bullet] $50,000 reduced by the highest outstanding
balance(s) of loans within the preceding 12
months ending on the day before the current loan
is made.
(2) Loans can be made from those Contract values held in the
Fund(s) and the Fixed Account.
Aetna reserves the right to restrict or limit the amount
that may be loaned from any investment option at any time.
When a loan is made, the number of accumulation units equal
to the loan amount will be withdrawn from the Current Value.
The amount of the loan will be withdrawn on a pro rata basis
from the Fixed Account and from each of the Fund(s).
Accumulation Units taken from the Current Value to provide a
loan do not participate in the investment experience of the
related investment options from which they were withdrawn.
(3) On the first business day of each calendar month, Aetna will
determine a Loan Interest Rate. This rate will be equal to
Moody's Corporate Bond Yield Average - Monthly Average
32
Corporates as published by Xxxxx'x Investors Service, Inc.
for the calendar month beginning two months before the date
on which the new Loan Interest Rate is effective. The Loan
Interest Rate for the calendar month in which the loan is
effective will apply for one year from the Loan Effective
Date. Annually on the anniversary of the Loan Effective
Date, the rate will be adjusted to equal the Loan Interest
Rate determined for the month in which the loan anniversary
occurs.
(4) Principal and interest on loans must be amortized in
quarterly installments over a 5 year term. If the Loan
Interest Rate is adjusted, future repayments will be
adjusted so that the outstanding loan balance is amortized
in equal quarterly installments over the remaining term. A
quarterly processing fee equal to .74% of the outstanding
loan balance will be deducted from each repayment and
retained by Aetna. The remainder of each repayment will be
credited to the Contract. Repayment amounts credited to the
Contract will be allocated among the same investment options
and in the same proportions as amounts were withdrawn to
make the loan.
(5) A bill in the amount of the quarterly repayment due will be
mailed to the Participant in advance of the repayment due
date. The repayment due date will be the first business day
of the third calendar month following the 7th calendar day
after the loan effective date. The repayment will be in
default if it is not received by Aetna at its Home Office
before the end of the month in which the due date falls.
(6) If a repayment is in default, an amount equal to the
repayment amount and any applicable deferred sales charge
will be deducted from the Contract as a deemed partial
surrender. The date of the surrender will be the first
business day following the last day of the month in which
the repayment was due. The surrendered amount will
automatically be applied to make the repayment that is in
default and will thereafter be subject to (4).
(7) If a repayment is received in excess of a billed amount, the
excess will be applied towards the principal portion of the
outstanding loan. Repayments received which are less than
the billed amount will be returned to the Participant;
therefore, the repayment will be in default and (6) will
apply.
(8) Prepayment of the entire loan will be allowed. At the time
of prepayment, Aetna will bill the Participant for any
accrued Loan Interest in accordance with (4). Aetna will
consider the loan paid when this amount is received.
(9) If a Contract is surrendered while there is an outstanding
loan balance, accrued Loan Interest and any applicable
Surrender Fee will be deducted from the Current Value.
33
(10) If a Contract is surrendered or annuitized with an
outstanding loan balance, the loan is canceled and taxable.
Accrued Loan Interest will be deducted from the Current
Value and this interest then will be treated as a quarterly
repayment under (4).
(f) Estate Conservation Option (ECO) Distribution Option: ECO is a
distribution option under which a portion of the Contract's
Current Value will automatically be surrendered and distributed
each year.
(1) An ECO payment will be determined in the following manner:
a. Payments shall commence no earlier than the year in
which the Participant attains age 70 1/2, and will be
calculated on the full Contract Current Value of the
account, except as provided in b.
b. If Aetna maintains separate records of the Contract
Current Value as of December 31, (see below), payments
made on or after the year in which the Participant
attains age 70 1/2 but before attaining age 75, will be
calculated only on amounts contributed after December
31, 1986, plus all investment earnings after that date.
The method under this rule is only used upon the
Participant's election and no longer will be effective
if he or she submits a withdrawal request in addition
to a scheduled ECO payment from the account, at which
time ECO payments will then be determined under a.
Aetna will maintain separate records if the
Participant has not requested any withdrawals from
his or her Contract since December 31, 1986.
If the Participant has attained age 70 1/2 prior to January
1, 1988 or is a participant in a governmental or church
plan, the Participant must be retired in order to quality
for the exception under (b).
(2) Amount of Distribution: Each year that ECO is in effect,
Aetna will calculate and distribute an amount equal to the
minimum required distribution under the Code. The annual
distribution will be determined by dividing the Current
Value, including any current loan(s) outstanding, as of
December 31 of the year prior to the payment year, by a life
expectancy factor.
As elected by the Participant, the factor is either the
single life or joint life expectancy based on tables in
Section 401(a)(9) of the Code or related regulations. If
joint life expectancy is elected, and the Participant or
spouse dies, payments will be calculated based on the
survivor's life expectancy.
These calculations may be changed as necessary to comply
with the Code minimum distribution rules. The joint life
expectancy factor can only be elected based on the joint
life expectancy of the Participant and his or her spouse.
34
The spouse must be named as the beneficiary of any death
benefits under the Plan while ECO is in effect.
(3) Minimum Initial Current Value: At its discretion, Aetna may
require a Minimum Initial Current Value for election of this
option. If after election of this option, the Current Value
is insufficient to make a scheduled ECO payment, Aetna will
distribute the entire Contract balance.
(4) 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. Subsequent distributions will be made annually
on the 15th of the month or such other date Aetna may
designate or allow.
(5) Election and Revocation: ECO may be elected by the
Participant by submitting a completed and signed election
form to Aetna's Home Office. The Participant also must
submit the appropriate joint and survivor annuity waiver and
spousal consent form(s) to Aetna at its Home Office.
Once elected, this option may be revoked by the Participant
by submitting a written request to Aetna at its Home Office.
Any revocation will apply only to amounts not yet paid. ECO
may be elected only once.
(6) Reservation of Rights: Aetna reserves the right to change
the terms of ECO for future elections and discontinue the
availability of this option after proper notification. Aetna
also reserves the right to allow payments to be made more
frequently than annually.
(g) Systematic Withdrawal Option (SWO): A distribution option under
which a portion of the Contract's Current Value will
automatically be surrendered and distributed each year.
(1) Amount of Distribution: The Participant may elect one of the
two payment methods described below.
[bullet] Specified Amount: Payments of a designated
dollar amount which must be no greater than 10%
of the Initial Current Value. This amount will
remain constant unless a higher amount is
required under the Code minimum distribution
rules. Each year that the Specified Amount is in
effect, Aetna will calculate the minimum
required distribution under the Code and
distribute this amount if it is larger than the
amount elected by the Participant. The life
expectancy factor for this purpose will be the
Participant's life expectancy at the time of the
election of this option, and with each
subsequent calendar year the factor will be
reduced by one. The minimum required
distribution will be determined by dividing the
Current Value, including any current loan(s)
outstanding, as of December 31 of the year prior
to the payment year, by a life expectancy
factor.
35
[bullet] Specified Period: Payments which are made over a
period of time. The Period must be at least 10
years unless otherwise required by the Code
minimum distribution rules. The maximum
specified period will be limited by the Code
minimum distribution rules. The annual amount
paid each year is calculated by dividing the
Current Value as of December 31 of the prior
year, including any outstanding loan(s), by the
number of payment years remaining.
The life expectancy factor is either the single life or
joint life expectancy, as elected by the Participant, based
on tables in Section 401(a)(9) of the Code or related
regulations. If the joint life expectancy is elected, upon
either the Participant's or the spouse's death, the minimum
required distribution for the Specified Amount payment
method will continue to be calculated in the same manner as
described under Specified Amount. Payments upon the
Participant's death will continue in the manner described
above, unless the spouse elects an alternate payment mode.
Any mode elected must Provide payments to be made at least
as rapidly as those made prior to the Participant's death.
These calculations may be changed as necessary to comply
with the Code minimum distribution rules. The joint life
expectancy factor can only be elected based on the joint
life expectancy of the Participant and his or her spouse.
The spouse must be named as the beneficiary of any death
benefits under the Contract while SWO is in effect.
(2) Minimum Initial Current Value: At its discretion, Aetna may
require a Minimum Initial Current Value for election of this
option. If after election of this option the Current Value
is insufficient to make a scheduled SWO payment, Aetna will
distribute the entire Contract balance.
(3) 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.
SWO payments will be made annually. Subsequent distributions
will be made annually on the 15th of the month or such other
date Aetna may designate or allow.
(4) Election and Revocation: SWO may be elected by the
Participant by submitting a completed and signed election
form to Aetna's Home Office. The Participant must also
submit the appropriate joint and survivor annuity waiver and
spousal consent form(s) to Aetna at its Home Office.
Once elected, this option may be revoked by the Contract
Holder by submitting a written request to Aetna at its Home
Office. Any
36
revocation will apply only to amounts not yet paid. SWO may
be elected only once.
(5) Reservation of Rights: Aetna reserves the right to change
the terms of SWO for future elections and discontinue the
availability of this option after proper notification. Aetna
also reserves the right to allow payments to be made more
frequently than annually.
(h) Sum Payable at Death (Before Annuity Payments Start): The Current
Value payable under the terms of this section will be reduced by
the amount of the accrued interest on any outstanding loan. Aetna
will pay the Current Value to the beneficiary when:
(1) The Participant dies before Annuity payments start; and
(2) The notice of death is received in good order by Aetna.
The sum payable will be the Current Value on the date when the
notice is received in good order at Aetna's Home Office. The
amount paid from the Fixed Account will not be less than the Net
Purchase Payment(s) allocated to the Fixed Account plus interest
(less any prior transfers (see 3.09), surrenders, Maintenance
Fees, or amounts used to purchase Annuity Options). The
beneficiary may choose to apply any sum under an Annuity Option
(see Part IV), subject to any other terms and conditions of this
Contract, or to receive a lump sum.
If the beneficiary is the surviving spouse, the first Annuity
payment or the lump sum payment may be deferred to a date not
later than when the Participant would have attained age 70 1/2 or
such later date as may be allowed under Federal law or
regulations.
If the beneficiary is not the surviving spouse, all of the
Current Value must either be applied to an Annuity Option within
one year of the Participant's death or be paid to the beneficiary
within 5 years of the Participant's death (see Part IV).
In no event may payments to any beneficiary under an Annuity
option extend beyond the life of the beneficiary or any period
certain greater than the beneficiary's life expectancy. if no
beneficiary exists, the payment will be made to the Participant's
estate.
(i) Surrender Value: After deduction of the Maintenance Fee, if any,
the amount payable by Aetna upon the total surrender of a
Contract with a loan(s) outstanding shall be reduced by accrued
interest and if applicable, a Surrender Fee on the loan amount.
The Surrender Fee will be in accordance with the Surrender Fee
table in 6.02.
The fee on a total surrender of the Contract will not exceed 8.5%
of the actual Purchase Payment(s) made to the Contract.
If the Participant is married, his or her spouse must consent in
writing to any request for a partial surrender. This consent must
be given within the 90 day period before the partial surrender is
to be made.
A full surrender will be paid to a married Participant only as a
Joint and
37
1/2 Contingent Life Income Annuity (see 4.08), unless the
Participant's spouse consents in writing to one of the other
Annuity Options or a lump sum payment. This consent must be given
within the 90 day period ending on the date payment is to be
made. If a lump sum payment is elected in lieu of an Annuity
Option, it must be paid no later than the April 1 of the calendar
year following the year in which the Participant turns age 70 1/2
or such later date as may be allowed under federal law or
regulations.
If the Contract Holder does not request commencement of benefits
as described in subsection (1), Aetna will not be responsible for
compliance with the Code 401(a)(9) minimum distribution
requirements and for any adverse tax consequences that may
result.
At Aetna's discretion, a full surrender may be allowed without
spousal consent if the Current Value is $3,500 or less.
(j) Surrender Restrictions: Limitations apply to full and partial
surrenders of the Restricted Amount from this Contract, as
required by Code Section 403(b)(11). The Restricted Amount is the
sum of:
(1) Net Purchase Payments attributable to Participant salary
reduction contributions made on and after January 1, 1989;
plus
(2) The net increase, if any, in the Current Value of the
account after December 31, 1988 attributable to investment
gains and losses and credited interest.
The Restricted Amount may be fully or partially surrendered only
if one or more of the following conditions are met:
(1) The Participant has reached age 59 1/2;
(2) The Participant has separated from service;
(3) The Participant has died;
(4) The Participant has become disabled, within the meaning of
Code Section 72(m)(7); or
(5) The withdrawal is otherwise allowed by federal law,
regulations or rulings.
A full or partial surrender is also allowed if the Contract
Holder incurs a "hardship" as that term is defined in the Code or
regulations under 403(b). However, the amount available for
hardship is limited to the lesser of the amount necessary to
satisfy the need, or the Net Purchase Payments attributable to
Contract Holder salary reduction contributions made on and after
January 1, 1989.
Aetna may require that the Contract Holder certify and/or provide
satisfactory proof that one of these conditions has been met
before a surrender request will be considered to be in good
order.
The Contract Holder or beneficiary must notify Aetna in writing
when a lump sum payment is to be made or Annuity payments are to
commence .
(k) Limitation on Contributions: The Purchase Payment(s) made to the
account in any year cannot exceed the lesser of the amount
determined under the exclusion allowance of Code Section
403(b)(2) or the annual
38
additions limitation of Code Section 415(c)(1). In addition, in
no event may the Purchase Payment(s) attributable to elective
deferrals as defined in Code Section 402(g) exceed $9,500 (or,
such larger amount as adjusted by the Secretary of the Treasury)
during any calendar year, unless the alternate limitation of Code
Section 402(g)(8) applies.
(l) Timing of Distributions: The distribution of benefits accrued
after December 31, 1986, must be made in a lump sum or must begin
not later than the April 1 following the calendar year in which
the Contract Holder attains age 70 1/2.
The above does not apply if the Contract Holder is affiliated
with a governmental entity or a church. For such a Contract
Holder, the distribution of benefits accrued after December 31,
1986, must be made or must begin not later than the April 1 of
the calendar year following the calendar year in which the
Contract Holder attains age 70 1/2 or retires, whichever occurs
later.
The required distribution described in either of the above rules
must be made over the life of the Contract Holder (or the joint
lives of the Contract Holder and beneficiary) or over a period
not exceeding the life expectancy of the Contract Holder (or the
joint life expectancies of the Contract Holder and the
beneficiary).
If the Contract Holder does not request commencement of benefits
as described above, Aetna will not be responsible for compliance
with the Code 401(a)(9) minimum distribution requirements and for
any adverse tax consequences that may result.
(m) The following Section 5.04 of the Special Provisions does not
apply to this Contract.
5.04 Individual Annuity Plan
(a) The preceding Sections 5.01, 5.02 and 5.03 of the Special
Provisions do not apply to this Contract.
(b) Control of Contract: All rights in this Contract rest with the
Contract Holder. The Contract Holder owns all amounts held under
this Contract. The Contract Holder may make any choices allowed
by this Contract. Choices made under this Contract must be in
writing. Until receipt of such choices at its Home Office, Aetna
may rely on any previous choices made.
(c) Designation of Beneficiary: The Contract Holder shall name the
beneficiary.
The beneficiary may be changed at any time. Until receipt of a
written request to change the beneficiary, Aetna may rely upon
the last named beneficiary.
(d) Maintenance Fee: The Maintenance Fee, if any, (see 6.01 ) will be
deducted from the Current Value on the anniversary of the
Contract effective date and on surrender of the entire Contract.
(e) Sum Payable at Death (Before Annuity Payments Start): Aetna will
pay the Current Value to the beneficiary if:
(1) The Contract Holder dies before Annuity payments start; and
39
(2) The notice of death is received in good order by Aetna.
The sum paid will be the Current Value on the date the notice is
received in good order at Aetna's Home Office. The amount paid
from the Fixed Account will not be less than the Net Purchase
Payment(s) allocated to the Fixed Account including Fixed Account
interest added by Aetna (less any prior transfers, (see 3.09)
surrenders, Maintenance Fees, or amounts used to purchase Annuity
Options).
The following choices are available to any beneficiary subject to
any other terms and conditions of this Contract and this section.
The beneficiary may choose to:
(a) Apply any sum to an Annuity Option (see 4.08);
(b) Maintain the Contract, or allocate any amount to any of the
available investment options; or
(c) Receive a lump sum payment.
If the beneficiary is the surviving spouse, the beneficiary shall
be treated as the successor Contract Holder on Aetna's records.
Such successor Contract Holder may exercise all rights under the
Contract.
If the beneficiary is not the surviving spouse, all of the
Current Value must either be applied to Annuity Options 2, 3 or 4
within one year of the Contract Xxxxxx's death, or be paid to the
beneficiary within 5 years of the Contract Xxxxxx's death (see
4.08).
If no beneficiary exists, payment will be made to the estate of
the Contract Holder.
(f) Surrender Value: After deduction of the Maintenance Fee, if any,
Aetna will reduce the amount payable upon surrender of any
portion of the Current Value by a Surrender Fee. The Surrender
Fee will be in accordance with the Surrender Fee table in 6.02.
The Fee on a total surrender of the Contract will not exceed 8.5%
of the actual Purchase Payment(s) made to the Contract.
40
VI. FEE SCHEDULE
DEFERRED COMPENSATION PLAN
6.01. Maintenance Fee: The Maintenance Fee will be $0.
6.02. Surrender Fee:
For each surrender, the Surrender Fee will vary according to the period
of time between the Effective Date of the Contract and the date of
surrender. The Surrender Fee will be determined as follows:
If Period of Time is Surrender Fee
Less than 5 years 5%
From 5 to 6 years 4%
From 6 to 7 years 3%
From 7 to 8 years 2%
From 8 to 9 years 1%
9 or more years 0%
No Surrender Fee is deducted from any portion of the Current Value
which is paid:
(a) At the death of the Annuitant before Annuity payments start;
(b) As a premium for an Annuity under this Contract;
(c) For a full surrender where the Current Value is equal to
$2,500 or less and no surrenders have been taken from the
Contract within the prior 12 months; or
(d) Due to an election of the SWO Distribution Option.
6.03. Table of Minimum Values - Fixed Account:
The values in the following Table only apply to a Purchase Payment of
exactly $1,000. Values would be different for other Purchase Payment
amounts, if partial surrenders are made, or if Aetna adds interest at a
rate greater than the Guaranteed Interest Rate - Fixed Account (see
3.02).
The Surrender Value assumes that a Purchase Payment of exactly $1,000
is credited at the Guaranteed Interest Rate at the beginning of each
Contract year. The applicable Surrender Fee is deducted.
41
TABLE OF MINIMUM FIXED ACCOUNT VALUES
PER $1,000 OF NET PURCHASE PAYMENTS
ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum
End of Minimum Current Surrender End of Minimum Current Surrender
Year Value Value Year Value Value
---- ----- ----- ---- ----- -----
1 $1,040 $ 988 16 $1,872 $1,872
2 1,082 1,028 17 1,947 1,947
3 1,125 1,069 18 2,025 2,025
4 1,170 1,111 19 2,106 2,106
5 1,217 1,156 20 2,191 2,191
6 1,265 1,168
7 1,316 1,290 25 2,665 2,665
8 1,369 1,355
9 1,423 1,423 30 3,243 3,243
10 1,480 1,480
11 1,539 1,539 35 3,946 3,946
12 1,601 1,601
13 1,665 1,665 40 4,801 4,801
14 1,731 1,731
15 1,800 1,800 45 5,841 5,841
50 7,106 7,106
42
VI. FEE SCHEDULE
DEFERRED COMPENSATION PLAN
6.01. Maintenance Fee: The Maintenance Fee will be $20.
6.02. Surrender Fee:
For each surrender, the Surrender Fee will vary according to the number
of Purchase Payment Cycles completed. The number and amount of Purchase
Payments to be made in a year is chosen by the Contract Holder. A
Purchase Payment Cycle is completed when this number and amount of
Purchase Payments have been made. The number of Purchase Payment Cycles
completed may not be greater than the number of whole years since the
Contract was issued. For each surrender, the Fee will be as follows:
Number of Purchase Payment Cycles Completed Surrender
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or 10 2%
More than 10 0%
No Surrender Fee is deducted from any portion of the Current Value
which is paid:
(a) At the death of the Annuitant before Annuity payments start;
(b) As a premium for an Annuity under this Contract;
(c) On and after the tenth anniversary of the Effective Date of the
Contract;
(d) For a full surrender where the Current Value is equal to $2,500
or less and no surrenders have been taken from the Contract
within the prior 12 months; or
(e) Due to an election of the SWO Distribution Option.
6.03. Table of Minimum Values - Fixed Account:
The values in the following Table only apply to Annual Purchase
Payments of exactly $1,000. Values would be different for other
Purchase Payment amounts, if Purchase Payments are not made when due,
if partial surrenders are made, or if Aetna adds interest at a rate
greater than the Guaranteed Interest Rate - Fixed Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of exactly $1,000
is credited at the Guaranteed Interest Rate at the beginning of each
Contract year. The Maintenance Fee and applicable Surrender Fee are
deducted.
43
TABLE OF MINIMUM CONTRACT VALUES
PER $1,000 OF NET PURCHASE PAYMENTS
Minimum Minimum
End of Minimum Surrender End of Minimum Surrender
Year Reserve Value Year Reserve Value
---- ------- ----- ---- ------- -----
1 $1,020 $ 969 16 $22,261 $22,261
2 2,081 1,977 17 24,171 24,171
3 3,184 3,025 15 26,158 26,158
4 4,331 4,115 19 28,224 28,224
5 5,524 5,304 20 30,373 30,373
6 6,765 6,495
7 8,056 7,815 25 42,478 42,478
8 9,398 9,117
9 10,794 10,579 30 57,206 57,206
10 12,246 12,246
11 13,756 13,756 35 75,124 75,124
12 15,326 15,326
13 16,959 16,959 40 96,925 96,925
14 18,658 18,658
15 20,424 20,424 45 123,448 123,448
50 155,719 155,719
44
VI FEE SCHEDULE
TAX DEFERRED ANNUITY PLAN
6.01. Maintenance Fee: The Maintenance Fee will be $0.
6.02. Surrender Fee:
For each surrender, the Surrender Fee will vary according to the
period of time between the Effective Date of the Contract and the
date of surrender. The Surrender Fee will be determined as follows:
If Period of Time is Surrender Fee
Less than 5 years 5%
From 5 to 6 years 4%
From 6 to 7 years 3%
From 7 to 8 years 2%
From 8 to 9 years 1%
9 or more years 0%
No Surrender Fee is deducted from any portion of the Current Value
which is paid:
(a) At the death of the Annuitant before Annuity payments start;
(b) As a premium for an Annuity under this Contract
(c) In an amount equal to or less than 10% of the Current Value,
as part of the first partial surrender request in a calendar
year to a Contract Holder who is at least age 59 1/2 and less
than age 70 1/2. The Current Value is calculated as of the
date the partial surrender request is received in good order
at Aetna's Home Office. Any outstanding loans from the
Contract Holder's Account are excluded when calculating the
Current Value. This provision does not apply to partial
surrender due to loan defaults and does not apply to full
surrender requests;
(d) For a full surrender where the Current Value is equal to
$2,500 or less and no surrenders have been taken from the
Contract within the prior 12 months; or
(e) Due to an election of the ECO or SWO Distribution Options.
6.03. Table of Minimum Values - Fixed Account:
The values in the following Table only apply to a Purchase Payment of
exactly $1,000 credited to the Fixed Account. Values would be different
for other Purchase Payment amounts, if partial surrenders are made, or
if Aetna adds interest at a rate greater than the Guaranteed Interest
Rate - Fixed Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of exactly $1,000
is credited to the Fixed Account at the Guaranteed Interest Rate at the
beginning of each Contract year. The applicable Surrender Fee is
deducted.
45
TABLE OF MINIMUM FIXED ACCOUNT VALUES
PER $1,000 OF NET PURCHASE PAYMENTS
ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum
End of Minimum Current Surrender End of Minimum Current Surrender
Year Value Value Year Value Value
---- ----- ----- ---- ----- -----
1 $1,040 $ 988 16 $1,872 $1,872
2 1,082 1,028 17 1,947 1,947
3 1,125 1,069 18 2,025 2,025
4 1,170 1,111 19 2,106 2,106
5 1,217 1,168 20 2,191 2,191
6 1,265 1,227
7 1,316 1,290 25 2,665 2,665
8 1,369 1,355
9 1,423 1,423 30 3,243 3,243
10 1,480 1,480
11 1,539 1,539 35 3,946 3,946
12 1,601 1,601
13 1,665 1,665 40 4,801 4,801
14 1,731 1,731
15 1,800 1,800 45 5,841 5,841
50 7,106 7,106
46
VI. FEE SCHEDULE
TAX DEFERRED ANNUITY PLAN
6.01. Maintenance Fee: The Maintenance Fee will be $20.
6.02. Surrender Fee:
For each surrender, the Surrender Fee will vary according to the number
of Purchase Payment Cycles completed. The number and amount of Purchase
Payments to be made in a year is chosen by the Contract Holder. A
Purchase Payment Cycle is completed when this number and amount of
Purchase Payments have been made. The number of Purchase Payment Cycles
completed may not be greater than the number of whole years since the
Contract was issued. For each surrender, the Fee will be as follows:
Number of Purchase Payment Cycles Completed Surrender
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or 10 2%
More than 10 0%
No Surrender Fee is deducted from any portion of the Current Value
which is paid:
(a) At the death of the Contract Holder before Annuity payments
start;
(b) As a premium for an Annuity under this Contract;
(c) After the Contract Holder has reached age 59 1/2and 9 or more
Purchase Payment Cycles have been completed;
(d) On and after the tenth anniversary of the Effective Date of
the Contract;
(e) In an amount equal to or less than 10% of the Current Value,
as part of the first partial surrender request in a calendar
year to a Contract Holder who is at least age 59 1/2 and less
than age 70 1/2. The Current Value is calculated as of the
date the partial surrender request is received in good order
at Aetna's Home Office. Any outstanding loans from the
Contract Holder's Account are excluded when calculating the
Current Value. This provision does not apply to partial
surrenders due to loan defaults and does not apply to full
surrender requests;
(f) For a full surrender where the Current Value is equal to
$2,500 or less and no surrenders have been taken from the
Contract within the prior 12 months; or
(g) Due to an election of the ECO or SWO Distribution Options.
47
6.03. Table of Minimum Values - Fixed Account:
The values in the following table only apply to Annual Purchase
Payments of exactly $1,000 credited to the Fixed Account. Values would
be different for other Purchase Payment amounts if Purchase Payments
are not made when due, if partial surrenders are made, or if Aetna adds
interest at a rate greater than the Guaranteed Interest Rate - Fixed
Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of exactly $1,000
is credited to the Fixed Account at the Guaranteed Interest Rate at the
beginning of each Contract year. The Maintenance Fee and applicable
Surrender Fee are deducted.
48
TABLE OF MINIMUM FIXED ACCOUNT VALUES
PER $1,000 OF NET PURCHASE PAYMENTS
ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum
End of Minimum Current Surrender End of Minimum Current Surrender
Year Value Value Year Value Value
---- ----- ----- ---- ----- -----
1 $1,020 $ 969 16 $22,261 $22,261
2 2,081 1,977 17 24,171 24,171
3 3,184 3,025 18 26,158 26,158
4 4,331 4,115 19 28,224 28,224
5 5,524 5,304 20 30,373 30,373
6 6,765 6,495
7 8,056 7,815 25 42,478 42,478
8 9,398 9,117
9 10,794 10,579 30 57,206 57,206
10 12,246 12,00l
11 13,756 13,756 35 75,124 75,124
12 15,326 15,326
13 16,959 16,959 40 96,925 96,925
14 18,658 18,658
15 20,424 20,424 45 123,448 123,448
50 155,719 155,719
49
VI. FEE SCHEDULE
INDIVIDUAL ANNUITY PLAN
6.01. Maintenance Fee: The Maintenance Fee will be $0.
6.02. Surrender Fee:
For each surrender, the Surrender Fee will vary according to the
period of time between the Effective Date of the Contract and the
date of surrender. The Surrender Fee will be determined as follows:
If Period of Time is Surrender Fee
Less than 5 years 5%
From 5 to 6 years 4%
From 6 to 7 years 3%
From 7 to 8 years 2%
From 8 to 9 years 1%
9 or more years 0%
No Surrender Fee is deducted from any portion of the Current Value
which is paid:
(a) At the death of the Contract Holder before Annuity payments
start;
(b) As a premium for an Annuity under this Contract;
(c) In an amount equal to or less than 10% of the Current Value,
as part of the first partial surrender request in a calendar
year. The Current Value is calculated as of the date the
partial surrender request is received in good order at Aetna's
Home Office. This provision does not apply to full surrender
requests; or
(d) For a full surrender where the Current Value is equal to
$2,500 or less and no surrenders have been taken from the
Contract within the prior 12 months.
6.03. Table of Minimum Values - Fixed Account:
The values in the following Table only apply to a Purchase Payment of
exactly $1,000 credited to the Fixed Account. Values would be different
for other Purchase Payment amounts, if partial surrenders are made, or
if Aetna adds interest at a rate greater than the Guaranteed Interest
Rate - Fixed Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of exactly $1,000
is credited to the Fixed Account at the Guaranteed Interest Rate at the
beginning of each Contract year. The applicable Surrender Fee is
deducted.
50
TABLE OF MINIMUM FIXED ACCOUNT VALUES
PER $1,000 OF NET PURCHASE PAYMENTS
ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum
End of Minimum Current Surrender End of Minimum Current Surrender
Year Value Value Year Value Value
---- ----- ----- ---- ----- -----
1 $1,040 $ 988 16 $1,872 $1,872
2 1,082 1,028 17 1,947 1,947
3 1,125 1,069 18 2,025 2,025
4 1,170 1,111 19 2,106 2,106
5 1,217 1,168 20 2,191 2,191
6 1,265 1,227
7 1,316 1,290 25 2,665 2,665
8 1,369 1,355
9 1,423 1,423 30 3,243 3,243
10 1,480 1,480
11 1,539 1,539 35 3,946 3,946
12 1,601 1,601
13 1,665 1,665 40 4,801 4,801
14 1,731 1,731
15 1,800 1,800 45 5,841 5,841
50 7,106 7,106
51
VI. FEE SCHEDULE
INDIVIDUAL ANNUITY PLAN
6.01. Maintenance Fee: The Maintenance Fee will be $20.
6.02. Surrender Fee:
For each surrender, the Surrender Fee will vary according to the number
of Purchase Payment Cycles completed. The number and amount of Purchase
Payments to be made in a year is chosen by the Contract Holder. A
Purchase Payment Cycle is completed when this number and amount of
Purchase Payments have been made. The number of Purchase Payment Cycles
completed may not be greater than the number of whole years since the
Contract was issued. For each surrender, the Fee will be as follows:
Number of Purchase Payment Cycles Completed Surrender Fee
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or 10 2%
More than 10 0%
No Surrender Fee is deducted from any portion of the Current Value
which is paid:
(a) At the death of the Contract Holder before Annuity payments
start;
(b) As a premium for an Annuity under this Contract;
(c) On and after the tenth anniversary of the Effective Date of
the Contract;
(d) In an amount equal to or less than 10% of the Current Value,
as part of the first partial surrender request in a calendar
year. The Current Value is calculated as of the date the
partial surrender request is received in good order at Aetna's
Home Office. This provision does not apply to full surrender
requests; or
(e) For a full surrender where the Current Value is equal to
$2,500 or less and no surrenders have been taken from the
Contract within the prior 12 months.
6.03. Table of Minimum Values - Fixed Account:
The values in the following Table only apply to Annual Purchase
Payments of exactly $1,000 credited to the Fixed Account. Values would
be different for other Purchase Payment amounts, if Purchase Payments
are not made when due, if partial surrenders are made, or if Aetna adds
interest at a rate greater than the Guaranteed Interest Rate - Fixed
Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of exactly $1,000
is credited to the Fixed Account at the Guaranteed Interest Rate at the
beginning of each Contract year. The Maintenance Fee and applicable
Surrender Fee are deducted.
52
TABLE OF MINIMUM FIXED ACCOUNT VALUES
PER $1,000 OF NET PURCHASE PAYMENTS
ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum
End of Minimum Current Surrender End of Minimum Current Surrender
Year Value Value Year Value Value
---- ----- ----- ---- ----- -----
1 $1,020 $ 969 16 $22,261 $22,261
2 2,081 1,977 17 24,171 24,171
3 3,184 3,025 18 26,158 26,158
4 4,331 4,115 19 28,224 28,224
5 5,524 5,304 20 30,373 30,373
6 6,765 6,495
7 8,056 7,815 25 42,478 42,478
8 9,398 9,117
9 10,794 10,579 30 57,206 57,206
10 12,246 12,246
11 13,756 13,756 35 75,124 75,124
12 15,326 15,326
13 16,959 16,959 40 96,925 96,925
14 18,658 18,658
15 20,424 20,424 45 123,448 123,448
50 155,719 155,719
53
AETNA LIFE INSURANCE AND ANNUITY COMPANY
Home Office: 000 XXXXXXXXXX XXX.
HARTFORD, CONNECTICUT 06156
0-000-000-0000
INDIVIDUAL VARIABLE, FIXED, OR COMBINATION CONTRACT
NONPARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT,
WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT,
ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT
