Aetna Life Insurance and Annuity Company
Home Office: 000 XXXXXXXXXX XXX.
HARTFORD, CONNECTICUT 06156
(000) 000-0000
Herein called Aetna
Agrees to pay benefits as stated in this Contract.
DETAILS OF VARIABLE FEATURES OF THIS CONTRACT ARE IN THE DEPOSIT, RESERVE, AND
SURRENDER PROVISIONS, AND ANNUITY PROVISIONS.
RIGHT TO CANCEL
The Owner may cancel this Contract within 10 days of receiving it, by sending a
written notice to Aetna at the above address or to the agent from whom it was
purchased. Aetna will return all payments made for this Contract within 7 days
after it receives the notice of cancellation and this Contract.
This page, and the following pages, and the application, make up the entire
Contract.
Signed at Hartford, Connecticut on the Effective Date.
/s/ Xxxxxxx X. Xxxxxxxxxxx /s/ Xxxxxxx X. Xxxxxx
Secretary President
GROUP VARIABLE OR FIXED ANNUITY OR COMBINATION CONTRACT
NON-PARTICIPATING
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.
SPECIFICATIONS
PLAN
OWNER
GROUP CONTRACT NO.
EFFECTIVE DATE
THIS CONTRACT IS DELIVERED IN
AND IS SUBJECT TO THE LAWS OF THAT JURISDICTION
Deduction From Deposit - The amount of the Net Deposit(s) applied will be the
deposit(s) received minus a deduction for premium taxes, if any then deducted
(see Deposit, Reserve, and Surrender Provisions of this Contract).
Deductions From The Separate Account And The Funds - Total deductions equal 1.5%
on an annual basis. Once Annuity payments begin, Aetna must earn a gross return
on the assets of the Separate Account of: (a) 5% on an annual basis if an
assumed net return rate of 3.5% is chosen; or (b) 6.5% on an annual basis if an
assumed net return rate of 5% is chosen; in order that the dollar amount of the
Variable Annuity payments will not decrease.
2
COVER SHEET
This Contract is a legal contract between the Owner and Aetna.
READ THIS CONTRACT CAREFULLY. This cover sheet is only a brief outline of some
of the important features of this Contract. This cover sheet is not the
insurance contract. Only the actual terms of this Contract will control. This
Contract sets forth, in detail, all of the rights and obligations of both you
and Aetna. IT IS THEREFORE IMPORTANT THAT YOU READ THIS CONTRACT CAREFULLY.
TABLE OF CONTENTS
GENERAL DEFINITIONS
Page
1. Participant..............................................................5
2. Annuitant................................................................5
3. Annuity..................................................................5
4. Fixed Annuity............................................................5
5. Variable Annuity.........................................................5
6. General Account..........................................................5
7. Separate Accounts........................................................5
8. Fund(s)..................................................................5
9. Valuation Period.........................................................5
GENERAL PROVISIONS
1. Contract.................................................................6
2. Incontestability.........................................................6
3. Control of Contract and Individual Accounts..............................6
4. Change of Contract by Aetna..............................................6
5. Individual Certificates..................................................6
6. Designation of Beneficiary...............................................7
7. Misstatements and Adjustments............................................7
8. State Laws...............................................................7
9. Grace Period.............................................................7
10. Non-Participating Contract...............................................7
DEPOSIT, RESERVE, AND SURRENDER PROVISIONS
1. Net Deposit..............................................................7
2. Individual Accounts......................................................7
3. Guaranteed Interest Rate - General Account...............................8
4. Record Units - Separate Account..........................................8
5. Investment Increment Factors - Separate Account..........................8
6. Record Unit Value - Separate Account.....................................9
7. Individual Account Reserve...............................................9
8. Active Life Fund.........................................................9
9. Experience Credits.......................................................9
3
10. Transfer of Individual Account Reserves.................................10
11. Notice to the Owner.....................................................10
12. Sum Payable at Death (Before Annuity Payments Start)....................10
13. Surrender Value.........................................................10
ANNUITY PROVISIONS
1. Choices to be Made......................................................12
2. Fund(s) Annuity Units - Separate Account................................12
3. Fund(s) Annuity Unit Value - Separate Account...........................12
4. Annuity Options.........................................................13
4
GENERAL DEFINITIONS
1. PARTICIPANT - A person for whom benefits are being provided under this
Contract.
2. ANNUITANT - A Participant or beneficiary on whose life an Annuity has
been effected under this Contract.
3. ANNUITY - Payment of an income:
. (a) for the life of one or two people;
(b) for a stated period;
(c) for some mix of (a) and (b); or
(d) until there are no funds left.
4. FIXED ANNUITY - An Annuity of a fixed dollar amount paid from the General
Account.
5. VARIABLE ANNUITY - An Annuity of a varying dollar amount paid from the
Separate Account.
6. GENERAL ACCOUNT - The Account which holds the assets of Aetna, other than
those assets of Aetna in the Separate Accounts. Reserves for a Fixed
Annuity are held in the General Account.
7. SEPARATE ACCOUNTS - Accounts set up by Aetna under the Connecticut
Insurance Laws. Assets for this class of variable contracts are set apart
from other assets of Aetna. Reserves for a Variable Annuity are held in a
Separate Account and invested in shares of Fund(s).
8. FUND(S) - The open-end management investment companies (mutual funds)
registered under the Investment Company Act of 1940. They are;
(a) Aetna Variable Fund, Inc. (Variable Fund);
(b) Aetna Variable Encore Fund, Inc. (Encore Fund);
(c) Aetna Income Shares, Inc. (Income Fund); and
(d) Other funds (if any) which Aetna may allow.
9. VALUATION PERIOD - The period of time from the end of one business day to
the end of the next business day.
5
GENERAL PROVISIONS
1. Contract
This Contract may be changed only by an officer of Aetna. Any change must
be made in writing. Any choices under this Contract by the Owner,
Annuitant or beneficiary must be in writing. Until receipt of such
choices in the Home Office of Aetna, Aetna may rely on any previous
choices made.
Aetna will make Annuity payments as and when due. Any other payments will
be made by Aetna within 7 days of receipt of the written claim for
payment, except as otherwise provided in the Surrender Value provision.
2. Incontestability
Aetna cannot cancel this Contract because of any error of fact on the
application.
3. Control of Contract and Individual Accounts
Each Participant shall be entitled to all amounts held in his Individual
Account. Each Participant shall be entitled to make any choices allowed
by this Contract with respect to Individual Accounts. All other rights in
the contract shall rest with the Owner. This Contract, and any Individual
Accounts, shall not be subject to the claims of any creditors.
4. Change of Contract by Aetna
Aetna may change any of the terms of this Contract. Aetna will notify the
Owner in writing 30 days before the effective date of any such change.
Any such change will not affect the amount or terms of any Annuity which
began prior to such change. Changes that affect the following provisions
of this Contract: (a) Annuity Options; (b) Net Deposit; (c) Guaranteed
Interest Rate; (d) Individual Account Reserve; and (e) Surrender Value;
will only apply to deposits made on behalf of Participants who become
covered under this Contract on or after the effective date of such
change. If the Owner fails to agree to any such change, no new
Participants may be covered under this Contract. This Contract is subject
to change as required by federal or state law.
5. Individual Certificates
Aetna shall issue certificates for each Participant as required by the
state in which this Contract is delivered. The certificate will contain a
summary of the benefits provided by this Contract. Certificates are not a
part of this Contract.
6
6. Designation of Beneficiary
The beneficiary for each Participant shall be as named, or later changed,
by the Owner. If no beneficiary is living at the death of the
Participant, payment of any amount due will be made to the Owner.
7. Misstatements and Adjustments
If the age or sex of any payee is found to be misstated, the correct
facts will be used to adjust payments.
8. State Laws
This Contract follows 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.
9. Grace Period
This Contract will remain in effect even if deposits are not continued.
10. Non-Participating Contract
The Owner will have no right to share in the earnings of Aetna.
DEPOSIT, RESERVE, AND SURRENDER PROVISIONS
1. Net Deposit
The Net Deposit is the actual deposit minus a charge to pay premium
taxes, if any. As a rule, Aetna will take this charge out of an
Individual Account Reserve (see below) when annuity payments are to
start. But, if Aetna determines that it must pay any imposed premium tax
at any other time, it may take out the charge at any time.
2. Individual Accounts
Aetna will maintain Individual Accounts for each Participant. On the
basis of information supplied by the Owner, Aetna will credit the Net
Deposit(s) to such Accounts in either:
(a) the General Account;
(b) the Separate Account where they are invested in Fund(s) as
directed by the Owner; or
(c) a mix of (a) and (b).
3. Guaranteed Interest Rate - General Account
7
On Net Deposit(s) made to the General Account, Aetna will add interest
daily at an annual rate no less than:
(a) 4% except under the Annuity Provisions; and
(b) 3.5% under the Annuity Provisions.
Aetna may add interest daily at any higher rate.
4. Record Units - Separate Account
The portion of the Net Deposit applied to the Separate Account Fund(s)
will determine the number of Record Units. This number is equal to the
Net Deposit(s) divided by the Record Unit Value (see below) for the
Valuation Period when the Net Deposit is received.
5. Investment Increment Factors - Separate Account
Investment Increment Factors are those items used to determine a Fund's
net return factor for each Valuation Period. The net return factor(s) are
then used to compute all Separate Account values and payments.
The gross return is equal to:
(a) investment income; plus
(b) realized and unrealized capital gains; minus
(c) realized and unrealized capital losses; minus
(d) certain investment expenses; and minus
(e) a daily charge at an annual rate of .25% for investment management
expense and profit.
The gross return is divided by the net assets of the Fund at the start of
the Valuation Period to compute the gross return rate. A gross return
rate may be more or less than 0. The net return rate is equal to:
(a) the gross return rate; plus or minus
(b) taxes (or charges to a tax reserve) on the Separate Account; and
minus
(c) a daily charge at an annual rate of 1.25% for annuity mortality
and expense risks and profit.
8
A net return rate may be more or less than 0.
The net return factor for each Fund is equal to the net return rate plus
1.000000.
6. Record Unit Value - Separate Account
The Record Unit Value for each Separate Account Fund is computed by
multiplying the net return factor for the current Valuation Period by the
Record Unit Value for the previous Period. The dollar value of Record
Units, Separate Account Reserves, and Variable Annuity payments may go up
or down due to investment gain or loss.
7. Individual Account Reserve
The Individual Account Reserve for each Participant is equal to:
(a) Net Deposit(s) credited to the General Account (if any); plus
(b) General Account interest added by Aetna; plus
(c) the value of Separate Account Record Units (if any); plus
(d) any amount due to Experience Credits (see below); and minus
(e) a charge of $15 on each anniversary of each Individual Account
effective date; and minus
(f) any amounts previously surrendered.
8. Active Life Fund
The Active Life Fund is equal to the combined Reserves of all Individual
Accounts, except those Accounts applied to the payment of Annuities.
9. Experience Credits
Aetna may apply Experience Credits to Individual Accounts in the Active
Life Fund under this Contract. Any such credit will be computed as
decided by Aetna.
10. Transfer of Individual Account Reserves
The Owner may transfer any portion of the Individual Account Reserves
from any Fund to any other Fund or to the General Account. Reserves
cannot be transferred from the General Account to any of the Funds. A
transfer of Reserves cannot be made within 90 days of a previous
transfer.
9
11. Notice to the Owner
Aetna will notify the Owner each year of:
(a) the investments held in the Fund(s) for the Separate Account; and
(b) the number of record units; or
(c) the number of annuity units; and
(d) the value of a unit.
Such number or values will be as of a date no more than 60 days before
the date of the notice.
12. Sum Payable at Death (Before Annuity Payments Start)
Aetna will pay to the beneficiary the Individual Account Reserve if:
(a) the participant dies before Annuity payments start; and
(b) the notice of death is received by Aetna.
The sum paid will be the Reserve on the date when the notice is received.
The beneficiary may choose to apply any sum under Annuity Options (see
Annuity Provisions).
13. Surrender Value
The amount paid by Aetna upon the surrender of all or any portion of the
Active Life Fund or Individual Account(s) shall be reduced by a surrender
fee. The surrender fee will be a percentage of the amount surrendered and
will vary according to the number of Deposit Cycles completed for the
Individual Account(s) being surrendered. The number of deposits to be
made in a year is chosen by the Owner. A Deposit Cycle is completed when
this number of deposits has been made. For each surrender from an
Individual Account, the Fee will be as follows:
Number of Deposit Cycles Completed Fee
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or more but less than 19 2%
19 or more 0%
10
In no event, however, will the Fee on a total surrender of an Individual
Account exceed 9% of the actual deposit(s) made to that Account.
If the Active Life Fund invested in the General Account exceeds $500,000,
Aetna reserves the right to pay out any surrender in equal installments
over a period not to exceed 60 months.
Under certain emergency conditions, Aetna has the right to defer payment
of any surrender value as provided by federal or state law.
11
ANNUITY PROVISIONS
1. Choices to be Made
The Owner may tell Aetna to pay the Individual Account Reserve (minus any
charges for premium taxes) as a premium for an Annuity under Options 2,
3, 4, and 5 (see below). The first Annuity payment must generally be made
no later than the first day of the month following the Annuitant's 75th
birthday. The Owner may tell Aetna to make the first Annuity payment on
the first day of any prior month.
When any option is chosen, the Owner or beneficiary choosing the option
must tell Aetna if payments are to be made other than monthly. They must
also tell Aetna to pay:
(a) a Fixed Annuity;
(b) a Variable Annuity using Variable Fund;
(c) a Variable Annuity using Income Fund; or
(d) any mix of these.
When choosing a Variable Annuity, an assumed net return rate of 5% per
year may be chosen. If not chosen, Aetna will use an assumed net return
rate of 3.5% per year.
2. Fund(s) Annuity Units - Separate Account
The amount of the first Variable Annuity payment will be equal to:
(a) the portion of the Individual Account Reserve (minus any charges
for premium taxes) to be used to pay a Variable Annuity using the
Fund(s); times
(b) the rate for each $1,000 for the Option chosen.
Such amount, or portion, of the payment using a Fund will be divided by
the Fund(s) Annuity Unit Value (see below) on the due date of the first
payment to determine the number of the Fund(s) Annuity Units.
Such number of the Fund(s) Annuity Units remains fixed. Each future
payment is equal to such number times the Fund(s) Annuity Unit Value on
the due date of each payment.
3. Fund(s) Annuity Unit Value - Separate Account
For any Valuation Period the Fund(s) Annuity Unit Value is equal to:
(a) the Value for the next previous Period; times
12
(b) the net return factor(s) (see Investment Increment Factors -
Separate Account provisions) for the tenth previous Period; times
(c) a factor to reflect the assumed net return rate.
The factor for 3.5% per year is .9999058; for 5% per year it is .9998663.
The dollar amount of Annuity Units, values, and payments may go up or
down due to investment gain or loss.
Payments shall not be changed due to mortality or expense results.
4. Annuity Options
Option 1 - Payment of Interest on Sum Left With Aetna - This option may
be used only by the beneficiary when the death of the Participant is
before Aetna has started paying an Annuity. A portion or all of the sum
due may be held in the General Account of Aetna at interest (see
Guaranteed Interest Rate - General Account provision). 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 under any of the
Annuity Options below.
Option 2 - Payments of a Stated Dollar Amount - An Annuity of a chosen
amount will be paid until there are no funds left. The payments to be
made in a year must be no less than $60 for each $1,000 applied to this
Option, but cannot exceed an amount which would deplete the funds in less
than 3 years.
Where there is a right under Federal Securities Law to forgo future
payments and receive the present value of the Annuity under this Option
in a lump sum, the exercise of that right within a 3 year period after
the start of payments shall be treated as a surrender (see Surrender
Value under Deposit, Reserve and Surrender Provisions).
Option 3 - Payments for a Stated Period of Time - An Annuity will be paid
for the number of years chosen. The number of years must be no less than
3 and no more than 30.
Where there is a right under Federal Securities Law to forgo future
payments and receive the present value of the Annuity under this Option
in a lump sum, the exercise of that right within a 3 year period after
the start of payments shall be treated as a surrender (see Surrender
Value under Deposit, Reserve and Surrender Provisions).
13
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 FOR A STATED PERIOD
Years Years Years
of Pay- Amount of of Pay- Amount of of Pay- Amount of
ments Payments ments Payments ments 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%
PAYMENTS FOR A STATED PERIOD
Years Years Years
of Pay- Amount of of Pay- Amount of of Pay- Amount of
ments Payments ments Payments ments 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
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Option 4 - Life Income - An Annuity will be paid for life. Payments may be made
for a minimum stated period, if chosen, of 60, 120, 180 or 240 months. If the
Annuitant dies before the end of such stated period, payments will be made to
the beneficiary for the rest of the stated 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%
LIFE INCOME WITH
Age of Payments Guaranteed for a Stated Period of Months:
Annuitant None 60 120 180 240
Male Female
---- ------ ---- -- --- --- ---
50 55 $4.98 $4.96 $4.89 $4.77 $4.62
51 56 5.08 5.05 4.98 4.85 4.68
52 57 5.18 5.16 5.07 4.93 4.74
53 58 5.30 5.26 5.17 5.01 4.80
54 59 5.41 5.38 5.27 5.09 4.86
55 60 5.54 5.49 5.37 5.17 4.92
56 61 5.67 5.62 5.48 5.26 4.98
57 62 5.80 5.75 5.59 5.35 5.04
58 63 5.95 5.89 5.71 5.44 5.10
59 64 6.10 6.03 5.83 5.53 5.16
60 65 6.27 6.19 5.96 5.62 5.22
61 66 6.44 6.35 6.09 5.72 5.27
62 67 6.63 6.52 6.23 5.81 5.33
63 68 6.82 6.71 6.38 5.91 5.38
64 69 7.04 6.90 6.53 6.00 5.43
65 70 7.26 7.11 6.68 6.10 5.47
66 71 7.50 7.33 6.84 6.19 5.52
67 72 7.76 7.56 7.01 6.28 5.55
68 73 8.04 7.80 7.18 6.37 5.59
69 74 8.34 8.07 7.35 6.46 5.62
70 75 8.67 8.34 7.52 6.54 5.65
71 9.01 8.63 7.70 6.62 5.67
72 9.39 8.94 7.88 6.69 5.69
73 9.79 9.26 8.05 6.76 5.71
74 10.22 9.61 8.22 6.81 5.72
75 10.69 9.96 8.39 6.87 5.73
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.
15
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%
LIFE INCOME WITH
Age of Payments Guaranteed for a Stated Period of Months:
Annuitant None 60 120 180 240
Male Female
---- ------ ---- -- --- --- ---
50 55 $5.89 $5.86 $5.78 $5.65 5.48
51 56 5.99 5.96 5.86 5.71 5.53
52 57 6.09 6.06 5.95 5.79 5.59
53 58 6.20 6.16 6.04 5.86 5.64
54 59 6.32 6.27 6.14 5.94 5.70
55 60 6.44 6.39 6.24 6.02 5.75
56 61 6.57 6.51 6.34 6.10 5.80
57 62 6.71 6.64 6.45 6.18 5.86
58 63 6.85 6.77 6.56 6.26 5.91
59 64 7.00 6.92 6.68 6.35 5.97
60 65 7.16 7.07 6.80 6.43 6.02
61 66 7.34 7.23 6.93 6.52 6.07
62 67 7.52 7.40 7.06 6.61 6.12
63 68 7.72 7.58 7.20 6.70 6.17
64 69 7.93 7.77 7.35 6.79 6.21
65 70 8.16 7.97 7.50 6.88 6.25
66 71 8.40 8.19 7.65 6.97 6.29
67 72 8.66 8.42 7.81 7.05 6.33
68 73 8.94 8.66 7.97 7.14 6.36
69 74 9.24 8.92 8.13 7.22 6.39
70 75 9.56 9.19 8.30 7.29 6.41
71 9.91 9.48 8.47 7.36 6.43
72 10.29 9.78 8.64 7.43 6.45
73 10.69 10.10 8.80 7.49 6.47
74 11.13 10.43 8.97 7.55 6.48
75 11.60 10.79 9.13 7.60 6.49
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.
16
Option 5 - 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) 66 2/3% of the payment to continue to the survivor;
(c) 50% of the payment to continue to the survivor; or
(d) payments for a minimum of 120 months, with 100% of the payment to
continue to the survivor.
17
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%
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
NO MINIMUM PERIOD
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female 50 Female 55 Female 60 Female 65 Female 70 Female 75
---- ------ --------- --------- --------- --------- --------- --------- -------
50 55 $4.10 $4.27 $4.43 $4.57 $4.69 $4.79 $4.86
55 60 4.21 4.43 4.65 4.86 5.04 5.20 5.32
60 65 4.30 4.57 4.86 5.15 5.43 5.68 5.88
65 70 4.38 4.69 5.04 5.43 5.83 6.21 6.56
70 75 4.44 4.79 5.20 5.68 6.21 6.78 7.33
75 80 4.48 4.86 5.32 5.88 6.56 7.33 8.16
80 85 -- 4.91 5.41 6.03 6.82 7.80 8.95
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
NO MINIMUM PERIOD
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female 50 Female 55 Female 60 Female 65 Female 70 Female 75
---- ------ --------- --------- --------- --------- --------- --------- -------
50 55 $5.00 $5.16 $5.31 $5.44 $5.57 $5.67 $5.75
55 60 5.11 5.31 5.51 5.71 5.90 6.06 6.19
60 65 5.20 5.44 5.71 5.99 6.26 6.52 6.73
65 70 5.28 5.57 5.90 6.26 6.65 7.04 7.38
70 75 5.34 5.67 6.06 6.52 7.04 7.59 8.14
75 80 5.38 5.75 6.19 6.73 7.38 8.14 8.96
80 85 -- 5.81 6.29 6.90 7.66 8.62 9.76
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
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%
JOINT AND LAST SURVIVOR ANNUITY
66 2/3% TO THE SURVIVOR
NO MINIMUM PERIOD
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female 50 Female 55 Female 60 Female 65 Female 70 Female 75
---- ------ --------- --------- --------- --------- --------- --------- -------
50 55 $4.51 $4.72 $4.94 $5.18 $5.44 $5.71 $6.00
55 60 4.70 4.94 5.20 5.49 5.81 6.14 6.49
60 65 4.90 5.18 5.49 5.84 6.23 6.65 7.09
65 70 5.11 5.44 5.81 6.23 6.71 7.25 7.82
70 75 5.34 5.71 6.14 6.65 7.25 7.93 8.69
75 80 5.58 6.00 6.49 7.09 7.82 8.69 9.69
80 85 -- 6.28 6.84 7.53 8.39 9.47 10.77
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
JOINT AND LAST SURVIVOR ANNUITY
66 2/3% TO THE SURVIVOR
NO MINIMUM PERIOD
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female 50 Female 55 Female 60 Female 65 Female 70 Female 75
---- ------ --------- --------- --------- --------- --------- --------- -------
50 55 $5.43 $5.62 $5.84 $6.08 $6.36 $6.65 $6.98
55 60 5.62 5.84 6.10 6.38 6.70 7.06 7.44
60 65 5.82 6.08 6.38 6.72 7.11 7.54 8.01
65 70 6.06 6.36 6.70 7.11 7.58 8.12 8.71
70 75 6.31 6.65 7.06 7.54 8.12 8.80 9.56
75 80 6.59 6.98 7.44 8.01 8.71 9.56 10.56
80 85 -- 7.31 7.84 8.49 9.33 10.38 11.66
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
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%
JOINT AND LAST SURVIVOR ANNUITY
50% TO THE SURVIVOR
NO MINIMUM PERIOD
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female 50 Female 55 Female 60 Female 65 Female 70 Female 75
---- ------ --------- --------- --------- --------- --------- --------- -------
50 55 $4.75 $4.98 $5.24 $5.55 $5.91 $ 6.32 $ 6.79
55 60 4.99 5.24 5.54 5.88 6.28 6.76 7.30
60 65 5.26 5.55 5.88 6.27 6.73 7.27 7.90
65 70 5.59 5.91 6.28 6.73 7.26 7.90 8.65
70 75 5.96 6.32 6.76 7.27 7.90 8.67 9.57
75 80 6.37 6.79 7.30 7.90 8.65 9.57 10.69
80 85 -- 7.30 7.88 8.59 9.49 10.61 12.00
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
JOINT AND LAST SURVIVOR ANNUITY
50% TO THE SURVIVOR
NO MINIMUM PERIOD
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female 50 Female 55 Female 60 Female 65 Female 70 Female 75
---- ------ --------- --------- --------- --------- --------- --------- -------
50 55 $5.67 $5.89 $6.15 $6.47 $6.84 $7.29 $7.81
55 60 5.91 6.15 6.44 6.78 7.20 7.70 8.28
60 65 6.20 6.47 6.78 7.16 7.63 8.19 8.86
65 70 6.54 6.84 7.20 7.63 8.16 8.80 9.58
70 75 6.95 7.29 7.70 8.19 8.80 9.56 10.48
75 80 7.42 7.81 8.28 8.86 9.58 10.48 11.60
80 85 -- 8.39 8.94 9.61 10.46 11.56 12.92
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
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%
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
120 MONTHS MINIMUM PERIOD
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female 50 Female 55 Female 60 Female 65 Female 70 Female 75
---- ------ --------- --------- --------- --------- --------- --------- -------
50 55 $4.10 $4.27 $4.42 $4.56 $4.68 $4.77 $4.83
55 60 4.21 4.42 4.64 4.84 5.02 5.16 5.26
60 65 4.30 4.56 4.84 5.12 5.38 5.61 5.78
65 70 4.37 4.68 5.02 5.38 5.76 6.10 6.37
70 75 4.42 4.77 5.16 5.61 6.10 6.58 7.00
75 80 4.46 4.83 5.26 5.78 6.37 7.00 7.58
80 85 - 4.86 5.33 5.88 6.55 7.29 8.02
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
120 MONTHS MINIMUM PERIOD
Age of Age of Annuitant
Second
Annuitant Male 45 Male 50 Male 55 Male 60 Male 65 Male 70 Male 75
Male Female Female 50 Female 55 Female 60 Female 65 Female 70 Female 75
---- ------ --------- --------- --------- --------- --------- --------- -------
50 55 $5.00 $5.15 $5.30 $5.43 $5.55 $5.64 $5.71
55 60 5.10 5.30 5.50 5.69 5.87 6.01 6.12
60 65 5.19 5.43 5.69 5.96 6.21 6.44 6.61
65 70 5.27 5.55 5.87 6.21 6.57 6.90 7.17
70 75 5.32 5.64 6.01 6.44 6.90 7.37 7.78
75 80 5.36 5.71 6.12 6.61 7.17 7.78 8.34
80 85 - 5.75 6.19 6.72 7.35 8.06 8.76
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.
5. Special Terms Under Annuity Options
21
(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 payments to the Annuitant when payments
start shall be more than 50% of the present value of the payments
to be made to all payees; this restriction does not apply if
Option 5 is chosen and the second Annuitant is the spouse of the
Annuitant.
6. Other Terms of Annuity Options
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.
Age, where used in the above tables, means age nearest birthday on the
date of the first payment. The tables for Options 4 and 5 use the Annuity
table for 1949 with:
(a) a 1 year age reduction for males; and
(b) a 6 year age reduction for females.
If Fixed Annuity Options 3, 4, or 5 are chosen and Aetna's current
applicable rates at that time are larger than the rates above, the larger
payment will be made.
7. Death of Annuitant/Beneficiary
When an Annuitant dies while payments are being made under an Annuity
Option, payments will be continued to the beneficiary as provided by the
option. If no beneficiary is living, the present value of any remaining
payments will be paid in one sum to the estate of the Annuitant. The
present value will assume the same interest rate that was used when the
first payment was made.
When a beneficiary dies while a sum is held at interest, the amount held
will be paid in one sum to the estate of the beneficiary. When a
beneficiary dies while payments are being made under an Annuity Option,
the present value of any remaining payments will be paid in one sum to
the estate of the beneficiary. The present value will assume the same
interest rate that was used when the first payment was made.
22
[Aetna Logo] Aetna Life Insurance and Annuity Company
Home Office: 000 XXXXXXXXXX XXX.
HARTFORD, CONNECTICUT 06156
(000) 000-0000
GROUP VARIABLE OR FIXED ANNUITY OR COMBINATION CONTRACT
NON-PARTICIPATING
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.
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed as follows:
The first paragraph of the Surrender Value provision of the Deposit, Reserve,
and Surrender Provisions shall be changed to read as follows:
The amount paid by Aetna upon the surrender of all or any portion of the Active
Life Fund or the Individual Account(s) shall be reduced by a surrender fee. The
surrender fee will be a percentage of the amount surrendered and will vary
according to the number of Deposit Cycles completed for the Individual
Account(s) being surrendered. The number and amount of deposits to be made in a
year is chosen by the Owner. A Deposit Cycle is completed when this number or
amount of deposits has been made. The number of completed Deposit Cycles may not
be greater than the number of whole years since the date the Individual Account
was established. For each surrender from an Individual Account, the fee will be
as follows:
Number of Deposit Cycles Completed Fee
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or more 2%
The last two paragraphs of the Surrender Value provision of the Deposit,
Reserve, and Surrender Provisions shall be changed to read as follows:
When the Active Life Fund held in the General Account exceeds $500,000 and the
Owner chooses to surrender:
(a) the total Active Life Fund; or
(b) any Individual Accounts within a 12 month period having value in excess
of 20% of the value of the total Active Life Fund;
Aetna reserves the right to pay out such surrenders in equal installments over a
period not to exceed 60 months.
Under certain emergency conditions, Aetna has the right to defer payment of any
surrender value:
(a) for a period of 6 months as provided by state law; and
(b) as provided by federal law.
The last sentence of the Other Terms of Annuity Options provision of the Annuity
Provisions shall be changed to read as follows:
If Annuity Options 3, 4, or 5 are 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.
Endorsed and made a part of this Contract on the Effective Date of this
Contract.
/s/ Xxxxxxx X. Xxxxxx
President
2
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed as follows:
The first paragraph of the Surrender Value provision of the Deposit, Reserve,
and Surrender Provisions shall be changed to read as follows:
The amount paid by Aetna upon the surrender of all or any portion of the Active
Life Fund or the Individual Account(s) shall be reduced by a surrender fee. The
surrender fee will be a percentage of the amount surrendered and will vary
according to the number of Deposit Cycles completed for the Individual
Account(s) being surrendered. The number and amount of deposits to be made in a
year is chosen by the Owner. A deposit Cycle is completed when this number or
amount of deposits has been made. The number of completed Deposit Cycles may not
be greater than the number of whole years since the date the Individual Account
was established. For each surrender from an Individual Account, the fee will be
as follows:
Number of Deposit Cycles Completed Fee
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or more but less than 19 2%
19 or more 0%
The last two paragraphs of the Surrender Value provision of the Deposit,
Reserve, and Surrender Provisions shall be changed to read as follows:
When the Active Life Fund held in the General Account exceeds $500,000 and the
Owner chooses to surrender:
(a) the total Active Life Fund; or
(b) any Individual Accounts within a 12 month period having value in excess
of 20% of the value of the total Active Life Fund;
Aetna reserves the right to pay out such surrenders in equal installments over a
period not to exceed 60 months.
Under certain emergency conditions, Aetna has the right to defer payment of any
surrender value:
(a) for a period of 6 months as provided by state law; and
(b) as provided by federal law.
The last sentence of the Other Terms of Annuity Options provision of the Annuity
Provisions shall be changed to read as follows:
If Annuity Options 3, 4, or 5 are 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.
Endorsed and made a part of this Contract on the Effective Date of this
Contract.
/s/ Xxxxxxx X. Xxxxxx
President
2
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract/Certificate is hereby endorsed to revise the Deposit, Reserve, and
Surrender Provisions as follows:
Add to the Individual Account Reserve provision the following:
Any portion of the above annual charge, which is indicated to reduce the
Individual Account Reserve in the General Account, will be deducted from and not
exceed the sum of:
(a) interest in excess of 4% added by Aetna in accord with (b) above in the
year prior to the due date of the annual charge; and
(b) Net Deposits credited by Aetna to the General Account in the year prior
to the due date of the annual charge.
Aetna may pay in a lump sum any Individual Account Reserve when a Net Deposit in
accord with this provision has not been credited for 3 full years and the
Individual Account Reserve is less than $2,000.
Add to the Surrender Value provision the following:
The Values in the Table following only apply to Annual Deposits of exactly
$1,000 credited by Aetna to the General Account. Values would be different for
other modes of Deposits, Deposits in an amount other than $1,000, Deposits not
made when due, prior partial surrenders, or if Aetna adds interest at a rate
greater than the Guaranteed Interest Rate.
The Paid-up Annuity Benefit assumes that no Deposits are credited after the end
of a contract year and that the Individual Account Reserve accumulated at the
Guaranteed Interest Rate at age 65 is applied to Option 4 with a stated period
of 120 months.
The Surrender Value assumes that a Deposit of exactly $1,000 is credited by
Aetna and applied at the Guaranteed Interest Rate in the General Account at the
beginning of the first contract year and each contract year thereafter. The
charge referred to in the Individual Account Reserve provision is deducted. The
applicable surrender fees in this provision are deducted.
The Table on the following page(s) is as fully a part of this Endorsement as if
included on this page before the signature below.
Endorsed and made a part of this Contract or Certificate to which it was
attached when initially issued.
/s/ Xxxxxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract or Certificate is hereby endorsed as follows:
Payments under any life Annuity Option in this Contract or Certificate; which is
elected on or after the effective date of this endorsement, will be determined
without regard to the sex of the Annuitant(s). Any such payments will be based
solely on the age of the Annuitant(s) (as determined by the Contract or
Certificate); using the most favorable rate for that age under the benefit
elected.
If a larger payment would result by a female Annuitant using the rates shown in
the Contract or Certificate for a male, the larger payment will be made.
This endorsement was approved by the New York Insurance Department under an
accelerated procedure to assist employers in complying with the United States
Supreme Court decision in Arizona vs. Xxxxxx. The Department has reserved the
right to require changes in this endorsement to comply with applicable New York
law and regulations.
Endorsed and made a part of the Contract or Certificate effective August 1,
1983.
/s/ Xxxxxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract or Certificate is endorsed to add at the end of the Surrender
Value provision the following:
The surrender fee of 2% is not deducted for a surrender from the Reserve, or
from a Participant's Individual Account, when:
(a) no less than 9 deposit cycles have been completed for the Annuitant, or
the said Participant; and
(b) the Annuitant or the said Participant is no less than age 59 1/2.
Endorsed and made a part of this Contract or Certificate on:
(a) the Date of Issue (Effective Date) of the Contract; or
(b) the effective date of coverage under the Group Contract of the
Participant named in the Certificate.
/s/ Xxxxxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
Home Office: 000 XXXXXXXXXX XXX.
HARTFORD, CONNECTICUT 06156
(000) 000-0000
GROUP VARIABLE OR FIXED ANNUITY OR COMBINATION CONTRACT
NON-PARTICIPATING
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
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed as follows:
The definition of Separate Account under the Definition of Certain Terms or
General Definitions section of the contract is hereby amended to read as
follows:
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 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.
Endorsed and made a part of the Contract.
/s/ Xxxxxx X. Xxxxx
President
Aetna Life Insurance and Annuity
Aetna Life Insurance and Annuity Company
ENDORSEMENT
The Contract is hereby endorsed.
The term Valuation Period under Definitions is amended to read as follows:
The period of time for which a Fund determines its net asset value,
usually from 4:15 p.m. Eastern time each day the New York Stock Exchange
is open until 4:15 p.m. the next such day, or such other day that one or
more of the Funds determines its net asset value.
Endorsed and made a part of the Contract.
/s/ X. X. Xxxxxxx
President
Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
ENDORSEMENT
Add the following conditions to the Contributions, Valuation and Discontinuance
Contributions or the Deposit, Reserve and Surrender Provision portion of the
Contract:
The following distribution options may be elected by the Owner.
(a) Estate Conservation Option (ECO): A distribution option under
which a portion of the Individual Account Reserve 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
Owner attains age 70-1/2, and will be calculated on the full
Reserve Value of the Individual Account, except as provided
in b.
b. If Aetna maintains separate records of the value of the
account as of December 31, 1986, (see below), payments made
on or after the year in which the Owner attains age 75 will
only be calculated on amounts contributed after December 31,
1986, plus all interest credited after that date. The method
under this rule is only used upon election of the Owner and
will no longer be effective if the Owner submits a
withdrawal request in addition to a scheduled ECO payment
from the Individual Account, at which time ECO payments will
then be determined under a.
Aetna will maintain separate records, if the Owner has not
requested any withdrawals from his or her individual Account
since December 31, 1986. If a Owner attained age 70 1/2
prior to 1988 or is a Owner in a governmental or church Tax
Deferred Annuity (TDA) plan, the Owner must be retired in
order to qualify 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 Individual Account Reserve Value,
including any current loan(s) outstanding, as of December 31 of
the year prior to the year for which the payment is to be made, by
a life expectancy factor.
As elected by the Owner, 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 Owner or spouse dies, payments will be calculated based on
the survivor's life expectancy.
1
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 Owner and his or her
spouse, and such spouse must be named as the beneficiary of any death
benefits under the Contract while ECO is in effect.
(3) Minimum Reserve Value: At its discretion, Aetna may require a
minimum initial Reserve Value for election of this option. If
after election of this option the Reserve Value is insufficient to
make a scheduled ECO payment, Aetna will distribute the entire
balance of the Individual Account.
(4) Date of Distribution: The Owner shall specify the initial
distribution date. The earliest date is the first day of the
calendar year in which the Owner attains age 70 1/2. Subsequent
distributions will be made annually on June 15 or such other date
Aetna may designate or allow.
(5) Elections and Revocation: ECO may be elected by the Owner by
submitting a completed and signed election form to Aetna's Home
Office. If the Contract Owner has notified Aetna that the TDA Plan
is subject to Title I of the Employee Retirement Income Security
Act of 1974 as amended, the Owner 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 Owner 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.
(b) Systematic Withdrawal Option (SWO): A distribution option under which a
portion of the Individual Account Reserve Value will automatically be
surrendered and distributed each year.
(1) Amount of Distribution: The Owner 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 Reserve
Value and shall remain constant unless a higher amount is
required under 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 Owner. The life expectancy factor for this
purpose will be the Owner'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
2
required distribution will be determined by dividing the
Individual Account Reserve Value, including any current
loan(s) outstanding, as of December 31 of the year prior to
the year for which the payment is to be made, by a life
expectancy factor. At its discretion, Aetna may require a
minimum initial payment amount; or
[bullet] Specified Period: Payments which are made over a period of
time which must be at least 10 years, unless otherwise
required by 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 Individual Account Reserve 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 Owner, based on tables in Section 401(a)(9) of the Code or
related regulations. If the joint life expectancy is elected, upon the death of
either the Owner or the spouse, the minimum required distribution for the
Specified Amount payment method will continue to be calculated in the same
manner as described in (b)(1). Payments upon the Owner'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 Owner'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 Owner and his or her spouse, and such spouse
must be named as the beneficiary of any death benefits under the Contract while
SWO is in effect
(2) Minimum Initial Reserve Value: At its discretion, Aetna may require a
minimum initial Reserve Value for election of this option. If after
election of this option the Reserve Value is insufficient to make a
scheduled SWO payment, Aetna will distribute the entire balance of the
Individual Account.
(3) Date of Distribution: The Owner shall specify the initial distribution
date. The earliest date is the first day of the calendar year in which
the Owner attains age 70-1/2.
SWO payments will be made annually. Subsequent distributions will be made
annually on June 15 or such other date Aetna may designate or allow.
(5) Elections and Revocation: SWO may be elected by the Owner by submitting a
completed and signed election form to Aetna's Home Office. If the
Contract Owner has notified Aetna that the TDA Plan is subject to Title I
of the Employee Retirement Income Security Act of 1974 as amended, the
Owner must also submit the appropriate joint and survivor annuity waiver
and spousal consent form(s) to Aetna at its Home Office.
3
Once elected, this option may be revoked by the Owner 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.
(6) 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.
Endorsed and made a part of the Contract on October 15, 1990 or the effective
date of the Contract whichever is later.
/s/ Xxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
4
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed as follows:
The following new condition is added to the Retirement Annuity Provisions or the
Annuity Provisions of the Contract as follows:
Notice to Effect an Annuity/Choices to be Made - An Annuity Option may be
elected by telling Aetna to pay all or any portion of the Individual
Account Reserve (minus any premium tax) as a premium for an Annuity under
Option 2, 3, or 4 (see 4.06). The present value of the expected payments
to the Annuitant when payments start shall be determined in accordance
with the tables under Code Section 401(a)(9) regulations in order to
comply with the incidental death benefit test. This restriction does not
apply if Option 4(e) is chosen and the second Annuitant is the spouse of
the Annuitant.
Payment Commencement Date - Generally, the first Annuity payment must be
made no later than the April 1 of the calendar year following the year in
which the Owner turns age 70 1/2 or such later date as may be allowed
under Federal law or regulations. In no event may any payments to the
Annuitant under an Annuity Option extend beyond:
(a) The life of the Annuitant;
(b) The lives of the Annuitant and beneficiary;
(c) A period certain greater than the Annuitant's life expectancy
according to regulations under Code Section 401(a)(9), determined
as of the date payments are to commence; or
(d) A period certain greater than the life expectancies of the
Annuitant and beneficiary according to regulations under Code
Section 401(a)(9), determined as of the date payments are to
begin.
For distributions taken in a lump sum, see Termination/Surrender
Provision.
Add the following option to Retirement Annuity Provisions or Annuity Provisions
as Option 5 subsection (d),(e) or Option E as follows:
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.
1
OPTION 5
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 Second Annuitant
Age of
Annuitant 45 50 55 60 65 70 75 80 85
45 $3.86 $3.89 $3.93 $3.94 $3.96 $3.97 $3.98 $3.98 $3.98
50 4.02 4.10 4.15 4.18 4.21 4.23 4.24 4.25 4.26
55 4.22 4.31 4.42 4.48 4.53 4.57 4.59 4.61 4.61
60 4.43 4.56 4.70 4.84 4.93 4.99 5.04 5.07 5.09
65 4.69 4.84 5.02 5.22 5.42 5.54 5.63 5.69 5.73
70 4.99 5.17 5.39 5.65 5.93 6.23 6.40 6.52 6.60
75 5.33 5.54 5.82 6.14 6.52 6.95 7.40 7.64 7.81
80 5.70 5.96 6.29 6.69 7.17 7.75 8.41 9.08 9.45
85 6.07 6.38 6.75 7.24 7.84 8.59 9.49 10.51 11.50
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Second Annuitant
Age of
Annuitant 45 50 55 60 65 70 75 80 85
45 $4.80 $4.83 $4.86 $4.88 $4.89 $4.90 $4.91 $4.92 $4.92
50 4.95 5.02 5.06 5.10 5.13 5.15 5.16 5.17 5.18
55 5.14 5.23 5.32 5.38 5.43 5.46 5.49 5.51 5.52
60 5.36 5.47 5.59 5.72 5.80 5.86 5.91 5.95 5.97
65 5.63 5.77 5.93 6.10 6.29 6.41 6.50 6.56 6.60
70 5.96 6.12 6.31 6.54 6.81 7.08 7.25 7.37 7.46
75 6.35 6.54 6.77 7.06 7.42 7.81 8.25 8.49 8.66
80 6.79 7.01 7.30 7.66 8.11 8.65 9.28 9.93 10.29
85 7.26 7.53 7.86 8.29 8.85 9.55 10.41 11.39 12.37
These Annuity rates are based on mortality from 1983 Table a.
2
Endorsed and made a part of the Contract effective October 15, 1990 or the
effective date of the Contract whichever is later.
/s/ Xxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
3
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed to allow for the election of a loan as follows:
Add to the DEPOSIT, RESERVE, AND SURRENDER PROVISIONS the following provision:
14. Loan Value - During the accumulation period, a Participant may request a
loan from his or her Individual Account by submitting a loan request form
to Aetna's Home Office. If a Participant is married, his or her spouse
must consent in writing and in a form acceptable to Aetna before the loan
will be made. For Tax Deferred Annuity Contracts governed by The Employee
Retirement Income Security Act Title I (ERISA), the loan request must be
accompanied by the appropriate waiver and spousal consent form. 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
subject to the following conditions:
(a) The minimum vested Individual Account Reserve value must be
$2,000. The loan amount must be at least $ 1,000. The loan amount
may not exceed the lesser of:
(a) 50% of the vested Individual Account Reserve value reduced
by any outstanding loan balance(s) on the date on which the
loan is made; or
(b) $50,000 reduced by the highest outstanding balance(s) of
loans, during the preceding 12 months ending the day before
the current loan is made.
(b) The values in the Fund(s), Fixed Account, GA Account and GET Fund
are included in determining the Individual Account Reserve value
for purposes of paragraph (a). However, only amounts in the
Fund(s) and Fixed Account are available for making the actual
loan. If a Participant intends to request a loan in excess of the
Reserve value of the Fund(s) and the Fixed Account in the
Individual Account, the excess amount must first be transferred
from the GA Account, or GET Fund to any other Fund(s) or to the
Fixed Account. Amounts transferred from the GA Account will be
subject to the GA Account withdrawal and Market Value Adjustment
(MVA) provisions. Amounts transferred from the GET Fund prior to
the maturity date will be at the then applicable GET Fund Unit
Value.
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 Individual Account. The
amount of the loan to be made will be withdrawn on a pro rata
basis from the Fixed Account and from each of the Fund(s), except
GET. Accumulation units withdrawn from an Individual Account to
provide a
1
loan do not participate in the investment experience of the
investment options from which they were withdrawn.
(c) 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 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.
(d) 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 Individual Account. Repayment
amounts credited to the Individual Account will be allocated among
the same investment options and in the same proportions as amounts
were withdrawn to make the loan.
(e) 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 month in
which the 7th calendar day after the loan effective date falls.
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.
(f) If a repayment is in default, an amount equal to the repayment
amount and any applicable deferred sales charge will be deducted
from the Individual Account 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
(d).
(g) 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 (f) will apply.
(h) Prepayment of the entire loan balance will be allowed. At the time
of prepayment, Aetna will bill the Participant for any accrued
Loan Interest, which will be applied in accordance with (d). Aetna
will consider the loan paid when this amount is received.
2
(i) If an Individual Account is surrendered while there is an
outstanding loan balance, accrued Loan Interest and any applicable
deferred sales charge will be deducted from the Individual Account
Reserve value.
(j) Upon the election of an Annuity Option or the Participant's death,
the loan will be canceled resulting in a distribution of the
outstanding loan balance. Accrued Loan Interest will be deducted
from the Individual Account Current Value and this interest will
then be treated as a quarterly repayment under (d).
(k) If the Participant's vested Individual Account Reserve value falls
below an amount equal to 25% of the total loan(s) outstanding,
Aetna reserves the right to require repayment of all outstanding
loans.
Endorsed and made a part of the Contract effective
3
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed to delete the previous Guaranteed Accumulation
Account (GA Account) Endorsement and replace it with the following:
Add to the GENERAL DEFINITIONS Section of the Contract the following paragraphs:
Maturity Date: The last day of a GA Account Term.
Matured Term Value: The amount payable on a GA Account Term's Maturity
Date.
Nonunitized Separate Account: An account set up by Aetna under Tile 38,
Sec. 38-154a, of the Connecticut General Statutes, which is used to hold
assets for GA Account Terms greater than three years. The Owner or
Participant, as applicable, does not participate in the investment gain
or loss from the assets held in the GA Account.
The Guaranteed Accumulation Account (GA Account) is amended and restated as
follows:
The GA Account guarantees stipulated rates of interest for stated periods
of time (see (1) and (3) below). Amounts withdrawn before the end of a
Guaranteed Term may be subject to a Market Value Adjustment (MVA) (see
(7) below).
(1) Deposit Period - A calendar month, a calendar quarter, or any other
period of time specified by Aetna during which Net Purchase Payment(s)
and transfers are accepted into the GA Account for one or more Guaranteed
Terms.
(2) Guaranteed Term (Term) - The period of time for which interest rates are
guaranteed on Net Purchase Payment(s) and on transfers made into a
Deposit Period of the GA Account. Terms are offered at Aetna's discretion
for various lengths of time ranging up to and including ten years.
(3) Guaranteed Term Classifications - The grouping of Terms according to
their time to maturity. The following are the Classifications:
(a) Short Term: Terms of up to and including 3 years; or
(b) Long Term: Terms of greater than 3 years and up to and including
10 years.
During a Deposit Period, Aetna may make available one or more Terms
within a Classification. The Owner has the option to allocate Net
Purchase Payment(s) and transfers into any or all of the available
Deposit Period Terms. If no specific direction is given, Net Purchase
Payment(s) and transfers will go into available Terms on a pro rata basis
within the
1
Classification(s) previously chosen by the Owner. At least one Term in
the Short Term Classification will be available each Deposit Period.
(4) Guaranteed GA Account Interest Rates (Guaranteed Rates) - Aetna will
declare all interest rate(s) applicable to a specific Term at the start
of the Deposit Period for that Term. These rate(s) are guaranteed by
Aetna for that Deposit Period and the ensuing Term and are not based on
the actual investment experience of the underlying assets in the GA
Account. The Guaranteed Rates are annual effective yields. The interest
is credited daily at a rate that will produce the guaranteed annual
effective yield over the period of a year. No annual rate will ever be
less than 4%.
For Terms of one year or less, one Guaranteed Interest Rate is set and
announced for that full Term. For other Terms, there may be two or more
rates. The rate(s) will be set and announced prior to the Deposit Period
for that Term and will not be subject to change.
(5) Withdrawals from GA Account - Full or partial surrenders may be requested
at any time from the GA Account. However, amounts withdrawn prior to the
Maturity Date of a Term to satisfy a surrender request may be subject to
an MVA (see (7) below).
Full and partial surrenders are satisfied by withdrawing amounts from
each of the Fund(s), the Fixed Account, the GA Account Short Term
Classification and the GA Account Long Term Classification on a pro rata
basis. However, the Owner or Participant, as applicable, may specify a
particular order in which investment options will be liquidated in order
to satisfy a partial surrender request.
For purposes of withdrawals, Terms within the GA Account Short Term and
Long Term Classifications are considered as two separate investment
options. Any withdrawal which is a surrender will be subject to the
Maintenance Fee and Surrender Fee as appropriate. Also, amounts will be
removed within a GA Account Classification starting with the Term still
in effect with the oldest Deposit Period.
Amounts may be transferred at any time subject to Contract specifications
(see (9) below). Amounts transferred prior to the Maturity Date of a Term
are subject to an MVA (see (7) below). Fund(s) will be removed within the
elected Classification starting with the Term still in effect with the
oldest Deposit Period.
During the Deposit Period and the 90 days following the close of the
Deposit Period, any amounts applied to the GA Account during that Deposit
Period may not be withdrawn unless due to:
(a) A full or partial surrender;
(b) A payment of a premium for an Annuity Option; or
(c) The Sum Payable at Death provision.
2
(6) Maturity Date/Reinvestment - For all GA Account Term(s) existing as of
the effective date of this endorsement in addition to GA Account Term(s)
announced subsequent to that date, the Owner or Participant, as
applicable, will be mailed a notice at least 18 calendar days before a
Term's Maturity Date. This notice will contain the current Deposit
Period's Guaranteed Rate(s), Term(s) and a projected Matured Term Value.
The Matured Term Value may be surrendered or transferred on the Term's
Maturity Date without an MVA. If no specific direction is given by the
Owner or Participant, as applicable, prior to the Maturity Date, each
Matured Term Value will be reinvested in a Term of the same duration. In
the event that a Term of the same duration is unavailable, each Matured
Term Value will automatically be reinvested in the next shortest Term
available in the same Classification during the then current Deposit
Period. If however, only one Term is available within the Classification,
then the Matured Term Value will automatically be reinvested in that
Term. Within two business days after the Maturity Date, the Owner or
Participant, as applicable, will be mailed a confirmation statement. This
statement will state the Terms and Guaranteed Rates which will apply to
the reinvested Matured Term Value.
During the calendar month following the Term's Maturity Date, one
exception is allowed to the 90 day transfer restriction and MVA under (5)
and (7). This exception is applicable to each Matured Term Value plus any
interest accrued thereon, provided no part of the Matured Term Value was
transferred on the Maturity Date.
During this calendar month period, the Owner or Participant, as
applicable, may notify Aetna's Home Office to transfer or surrender all
or part of the Matured Term Value plus any interest accrued thereon from
the GA Account without an MVA. This provision only applies to the first
such request received from the Owner or Participant, as applicable,
during this period for any Matured Term Value. The Matured Term Value
plus any interest accrued thereon may be transferred upon such request
without an MVA:
(a) To any other Terms of the GA Account available in the current
Deposit Period; or
(b) To any other allowable Fund(s).
If no such notification is given, the Matured Term Value will remain
subject to the terms and conditions of the new Term. All surrender and
transfer requests will be processed as of the date they are received in
good order at Aetna's Home Office.
If this Contract is issued under a Tax Deferred Annuity Plan (see
Specifications page) the above notice will be sent to the Participant(s).
(7) Market Value Adjustment (MVA) - There will be an MVA for a withdrawal
from the GA Account before the end of a Term when the withdrawal is due
to:
3
(a) A transfer;
(b) A full or partial surrender; or
(c) A payment of a premium for Annuity Option 2.
The amount of the withdrawal will be adjusted to a market value amount as
described below.
The market value adjusted amount will be equal to the amount withdrawn
multiplied by the following ratio:
x
---
365
(1+i)
---------
x
---
365
(1+j)
Where: i is the Deposit Yield
j is the Current Yield
x is the number of days remaining, (computed from Wednesday of the
week of withdrawal) in the Guaranteed Term.
The Deposit Period Yield will be determined as follows:
[bullet] At the close of the last business day of each week of the Deposit
Period, a yield will be computed as the average of the yields on that
day of U.S. Treasury Notes which mature in the last three months of the
Guaranteed Term.
[bullet] The Deposit Period Yield is the average of those yields for the Deposit
Period. If withdrawal is made prior to the close of the Deposit Period,
it is the average of those yields on each week preceding withdrawal.
The Current yield is the average of the yields on the last business day of the
week preceding withdrawal on the same U.S. Treasury Notes included in the
Deposit Period Yield.
In the event that no U.S. Treasury Notes which mature in the last three months
of the Guaranteed Term exist, Aetna reserves the right to use the U.S. Treasury
Notes that mature in a following quarter.
Full and partial surrenders as well as transfers made within six months of the
date of death of the Participant under the Sum Payable at Death provision will
be the greater of:
4
[bullet] The aggregate MVA amount which is the sum of all market value adjusted
amounts calculated due to a withdrawal of amounts (for surrender or
transfer) from Terms prior to the end of those Terms. The aggregate MVA
may be either positive or negative; or
[bullet] The applicable portion of the Current Value in the GA Account.
After the six month period, the surrender or transfer will be the aggregate MVA
amount (i.e. including all MVAs).
The greater of the aggregate MVA amount or the applicable portion of the Current
Value in the GA Account is applied to amounts withdrawn from the GA Account for
payment of a premium under Annuity Options 3 or 4.
Aetna may make any change to this provision with 30 days advance written notice
to the Owner or Participant, as applicable. Any such change shall become
effective for Purchase Payment(s), transfers or reinvestments made to any new
Term by any present or future Participant.
(8) Deposits to the GA Account - All amounts in the GA Account under the
Short Term Classification are made to the General Account.
All amounts in the GA Account under the Long Term Classifications are
made to a Nonunitized Separate Account. There are no discrete units for
this Nonunitized Separate Account. The Owner or Participant, as
applicable, does not participate in the gain or loss from the assets held
in the Nonunitized Separate Account. Such gain or loss is borne entirely
by Aetna. These assets may be chargeable with liabilities arising out of
any other business of Aetna.
For Terms under both the Short Term and Long Term Classifications, Aetna
guarantees stipulated interest rates to be credited to the GA Account.
All assets of Aetna including amounts made to the GA Account are
available to meet the guarantees under the GA Account.
(9) Before an Annuity Option is elected, all or any portion of the Current
Value may be transferred from any Fund or GA Account:
(a) To any other allowable Fund;
(b) To the Fixed Account; or
(c) To Terms of the GA Account available in the current Deposit
Period.
Amounts in a specific GA Account Term cannot be transferred to the
Deposit Period of another Term within the same Classification except at
the Term's maturity (see (6)).
5
Amounts applied to Classifications of the GA Account may not be
transferred to the Fund(s) or to the Fixed Account during the Deposit
Period or for 90 days after the close of the Deposit Period.
Transfers from Terms of the GA Account are subject to the Withdrawal and
MVA provisions (see (5) and (7)).
Twelve transfers of Current Value can be made during a calendar year
period. The Transfer of any portion of the GA Account value at the
Maturity Date of a Term is not counted for this purpose. Aetna may allow
additional transfers, but each may be subject to a fee of up to $10.
Endorsed and made a part of this Contract on May 1, 1991 or the effective date
of the Contract whichever is later.
/s/ Xxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
6
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed as follows:
The Contract section entitled Definitions is amended to include the following
defined terms:
Aetna GET Fund (GET Fund): An open-end registered management investment
company organized as a series fund. Each series of GET Fund constitutes a
separate Fund under this Contract. Unless specifically indicated
otherwise in this Contract, all references to Fund(s) in this Contract
shall include each series of GET Fund.
Allocation Period: The period of time, usually from one to three months,
during which amounts may be allocated to a series of GET Fund, whether by
transfer or by Net Stipulated Payment(s). Each series of GET Fund will
have a specific Allocation Period.
At its discretion, Aetna may allow additional amounts to be allocated to
a series of GET Fund during the Guarantee Period. The Guarantee
established at the close of the Allocation Period will apply to these
amounts.
At its discretion, Aetna may specify a minimum amount per transfer and
per Net Stipulated Payment amount for each series prior to the beginning
of the Allocation Period for that series.
Aetna will specify a minimum amount of assets that a series of the GET
Fund must contain at the close of the Allocation Period; and reserves the
right to terminate a series if it does not meet this minimum standard. If
Aetna elects to terminate the GET Fund and not to start the Guarantee
Period, Aetna will mail each Owner with amount(s) in the series a notice
that the series is being canceled. The cancellation notice will be mailed
no later than 15 calendar days after the Allocation Period ends. The
Owner will have 45 calendar days from the end of the Allocation Period to
transfer the Current Value of the canceled series of GET Fund to another
accumulation option(s). If no transfer is made prior to the end of the 45
calendar day period, the Current Value in the canceled series of GET Fund
will be transferred to Aetna Variable Encore Fund, a money market fund
during the next Valuation Period.
Aetna will also specify the maximum amount of assets that will be
accepted into a series of the GET Fund; and reserves the right to not
allow additional allocation to a series if it exceeds this maximum
standard. If Aetna elects not to allow additional allocation to the
series of GET Fund, Aetna will stop accepting Net Stipulated Payments and
transfers into the series 10 calendar days after such election. The
Allocation Period will continue until the date the Guarantee Period
begins.
GET Fund Maturity Date: The date at which the Guaranteed Period for a
series will end and the GET Fund Record Units for that series will be
liquidated. Another accumulation option
1
must then be elected. If no such election is made by the GET Fund
Maturity Date, the portion of the Current Value based on that GET Fund
series will be transferred to the Allocation Period for another series of
GET Fund. If no GET Fund Series is available, 50% of the Current Value
from that GET Fund series will be transferred to Aetna Variable Fund, a
growth and income fund. The remaining 50% of the Current Value will be
transferred to Aetna Income Shares, a bond fund. The transfers will be
made during the next Valuation Period. Such transfers will not be counted
as one of the free transfers. The GET Fund Maturity Date will be
specified before the Allocation Period for that series begins.
Guarantee: Aetna guarantees that on a series' GET Fund Maturity Date, the
value of each GET Fund Record Unit then outstanding in that series will
not be less than the value of the Record Unit on the last day of the
Allocation Period. Aetna will transfer any amount necessary from its
general account to the Separate Account in order to bring that Record
Unit Value to the guaranteed level. This Guarantee does not apply to GET
Fund Record Unit Values withdrawn or transferred before the GET Fund
Maturity Date.
Guaranteed Period: The length of time to which the Guarantee applies for
a series, ending on the GET Fund Maturity Date. This period will be
specified before the Allocation Period for a series begins.
The Contract section entitled Net Investment Factor or Investment Increment
Factors - Separate Account is amended to add the following:
The Net Return Factor for GET Fund is equal to 1.0000000 plus the Net
Return Rate. The Net Return Rate for each series of GET Fund,
notwithstanding any other provision of this Contract, is equal to:
(i) The value of the shares of that series of GET Fund held by the
Separate Account at the end of a Valuation Period; minus
(ii) The value of the shares of that series of GET Fund held by the
Separate Account at the start of the Valuation Period; plus or
minus
(iii) The proportional share of taxes (or reserves for taxes) on the
Separate Account (if any); divided by
(iv) The total value of the GET Fund Record Units of the Separate
Account for that series at the start of the Valuation Period;
minus
(v) A daily actuarial deduction at an annual rate of 1.25% for annuity
mortality and expense risks and profit; minus
(vi) A daily deduction at an annual rate of 0.25% during the Guaranteed
Period for Aetna's guarantee of GET Fund Record Unit Values. This
deduction will be determined prior to the start of any series of
GET Fund's Allocation Period; and
2
(vii) A daily administrative deduction which will not exceed 0.25% on an
annual basis.
The Net Return Rate may be more or less than 0%.
The value of a share of a GET Fund series is equal to the net assets of
that series divided by the number of outstanding shares of that series.
The Contract section entitled Transfer is amended to include the following
paragraph at the end of this provision:
Withdrawals or transfers from a GET Fund series before the Maturity Date
will be at the then applicable GET Fund Record Unit Value, which may be
more or less than the Record Unit Value guaranteed at the GET Fund
Maturity Date.
The Contract section entitled Termination Benefit or Reinstatement is amended to
include the following paragraph at the end of this Provision:
Amounts attributable to GET will be reinstated to the Allocation Period
of a GET series, if available. If a GET series Allocation Period is
unavailable, amounts will be reallocated among other Fund(s), the General
Account and the GA Account, (if applicable), on a prorata basis.
The Contract section entitled Options Available to Beneficiary/Annuitant or
Choices to be Made is amended to include the following paragraph at the end of
this provision:
Contract values based on any GET Fund series must be transferred to
another accumulation option prior to election of an Annuity Option.
Endorsed and made a part of this Contract on the effective date of the Contract.
/s/ Xxx Xxxxxxx
President
Aetna Life Insurance and Annuity Company
3
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract or Certificate is hereby endorsed as follows:
Payments under any life Annuity Option in this Contract or Certificate; which is
elected on or after the effective date of this endorsement, will be determined
without regard to the sex of the Annuitant(s). Any such payments will be based
solely on the age of the Annuitant(s) (as determined by the Contract or
Certificate); using the most favorable rate for that age under the benefit
elected.
If a larger payment would result by a female Annuitant using the rates shown in
the Contract or Certificate for a male, the larger payment will be made.
Endorsed and made a part of the Contract or Certificate effective August 1,
1983.
/s/ Xxxxxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed as follows:
1. The following sections a), b), and c) will apply to all Participants
under this Contract.
a) Add to the Deposit, Reserve, and Surrender Provisions the
following:
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 annual maintenance charge and
Surrender Fee imposed at the time of surrender on the amount being
reinvested will be included in the reinstatement. Any Market Value
Adjustment deducted from GA Account surrenders will not be
included in the reinstatement. Amounts will be reinstated among
the Fixed Account, GA Account, and Separate Account in the same
proportion as they were at the time of surrender. Any amounts
reinstated to the GA Account will be credited to the current
Deposit Period. The number of Record Units reinstated will be
based on the Record Unit Value(s) next computed after receipt at
Aetna's Home Office of the reinstatement request and the amount to
be reinvested.
Any annual maintenance charge which falls due after the surrender
and before the reinstatement will be deducted from the amount
reinstated.
Reinstatement is permitted only once.
b) Delete the paragraph under the section titled Individual Accounts
and add the following:
Aetna will maintain Individual Accounts for each Participant.
Aetna will credit the Net Deposit(s) among:
a) the General Account;
b) the Guaranteed Accumulation Account;
c) the Fund(s) in which the Separate Account invests.
The percentage of the Net Deposit(s) to be applied to each
investment above must be chosen by the Owner.
During any calendar year, Aetna may be told to change the
investment mix four times. If additional changes are allowed, each
may be subject to a fee of up to $10.
c) Delete the paragraph under the section titled Transfer of
Individual Account Reserves and add the following:
1
Before an annuity option is elected, the Owner may transfer any
portion of the Individual Account Reserves from any Fund to any
other Fund, to the General Account, or to the GA Account's current
Deposit Period. Any portion of the Individual Account Reserve in
the GA Account may be transferred to any Fund or to the General
Account. Transfers from the GA Account are subject to the
Withdrawal and Market Value Adjustment provisions.
Four transfers of Individual Account Reserves (excluding transfers
from the GA Account at the end of a Guaranteed Term) can be made
during a calendar year period. If additional transfers are
allowed, each may be subject to a fee of up to $10.
2. The following changes will not apply to Participants covered under the
Contract before the effective date of this endorsement.
a) Delete the paragraph titled Deductions From The Separate Account
And The Funds on the Specifications page and add the following:
Deductions from the Separate Account - There will be deductions
for mortality and expense risks and administrative fees. If the
dollar amount of 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 .25% needed to offset the administrative charge set
at the time annuity payments commenced, if an Assumed
Annual Net Return Rate of 3.5% is chosen; or,
[bullet] 6.25% on an annual basis, plus an annual return of up
to .25% needed to offset the administrative charge set
at the time annuity payments commended, if an Assumed
Annual Net Return Rate of 5% is chosen.
b) Delete the paragraph under the section titled Investment Increment
Factors - Separate Account and insert the following:
Investment Increment Factors are those items used to determine
a Fund's Net Return Factor for each valuation period. The Net
Return Factors are used to compute all Separate Account values
and payments for any Fund.
The Net Return Factor for each Fund is equal to 1.0000000 plus
the Net Return Rate.
The Net Return Rate is equal to:
(a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period;
minus
2
(b) the value of the shares of the Fund held by the
Separate Account at the start of the Valuation
Period; plus or minus
(c) taxes (or reserves for taxes on the Separate Account
(if any); divided by
(d) the total value of the Fund Record Units and Fund
Annuity Units of the Separate Account at the start of
the Valuation Period; minus
(e) a 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 .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.
The administrative charge may be changed annually except for
amounts which have been used to purchase an annuity. This
charge will not exceed .25%.
c) Under the section titled Fund(s) Annuity Unit Value - Separate Account,
delete the last paragraph and add the following:
Payments shall not be changed due to changes in the mortality or expense
results or administrative charges.
d) Under the section titled Individual Account Reserve, add the following
final paragraph:
Any charge specified in (e) above will also be charged upon surrender of
the entire Individual Account Reserve if such surrender takes place on a
date other than an anniversary of the Individual Account effective date.
e) Under the section titled Annuity Options, add the following sentence to
Option 2:
This option may only be elected as a Xxxxx Xxxxxxx.
f) Add as a final paragraph to the section titled Annuity Options, the
following:
Other Options - Aetna may make other options available as allowed by the
laws of the state in which this Contract is delivered.
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Endorsed and made a part of this Contract effective May 1, 1984.
/s/ Xxxxxxx X. Xxxxxx
President
4
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed to add the following provision to the section
Surrender Value under DEPOSIT, RESERVE, AND SURRENDER VALUE PROVISIONS:
On the tenth anniversary of the Effective Date of an Individual Account,
the surrender fee shall reduce to 0%.
Endorsed and made a part of this Contract effective September 1, 1984.
/s/ Xxxxxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is endorsed to allow for the election of a loan subject to the
following conditions:
A. Add to the end of the Section 3 entitled Control of Contract and
Individual Accounts under GENERAL PROVISIONS the following sentence:
In the event a loan against an Individual Account is requested, however,
the value of the Individual Account necessary to cover the loan amount
plus interest must be assigned to Aetna.
B. Add to the DEPOSIT, RESERVE, AND SURRENDER PROVISIONS the following
provision:
14. Loan Value: Each Participant, before an annuity option is elected,
may borrow from their Individual Account Reserve according to the terms
specified below:
(a) Requesting A Loan: The request must be in writing in a form
acceptable to Aetna and must assign to Aetna that portion of their
Individual Account Reserve necessary to cover the loan amount plus
interest. A loan may not be requested within 12 months of any
prior loan request.
(b) Loan Amount: The amount of the loan must be greater than $5,000
and, when added to the total of any prior loans outstanding, may
not exceed the amount remaining in the Participant's Individual
Account Reserve. The total amount of any outstanding loan(s) may
not exceed $50,000. Loans can only be made from those amounts held
in the Fund(s) and the Fixed Account. Loans may not be made
against amounts held in the GA Account. If a Participant intends
to request a loan against any portion of the GA Account, that
portion of the GA Account must be transferred to any Fund(s) or to
the Fixed Account. The transferred amount will be subject to the
Withdrawals and Market Value Adjustment provisions.
When a loan is made, an amount equal to the loan amount will be
withdrawn from the Participant's Individual Account Reserve.
Unless instructed otherwise, the amount withdrawn will be
allocated on a pro-rata basis among the Fixed Account and the
Fund(s).
(c) Loan Interest: Loan interest will accrue on a daily basis at an
annual rate of 3%. Loan interest must be paid in full at least
annually. The interest must be paid directly to Aetna by the
Participant. If interest is not paid when due, the entire loan
amount plus interest will be treated as a surrender under the
terms of the Contract.
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(d) Loan Repayment: The repayment of any portion of a loan will be
allocated on a current basis among the Fund(s) and Fixed Account
in the same proportion as when the loan was initially made.
Repayment may be made at any time during the 5 years from the date
the loan was first made. Any unpaid portion of a loan must be
repaid at the end of the 5 years, upon election of an annuity
option under this Contract, or upon full surrender of the
Participant's Individual Account Reserve; whichever occurs first.
Aetna may require all outstanding loans be paid if the value of a
Participant's Individual Account Reserve falls below an amount
equal to 25% of the total loans outstanding. Any loan and accrued
interest not repaid will be treated as a surrender.
C. Add to Section 7 - Individual Account Reserve, the following:
(g) and minus any amount withdrawn for a loan, if applicable.
D. Add to Section 12 - Sum Payable at Death (Before Annuity Payments Start),
the following:
The Individual Account Reserve payable under the terms of this section
will be reduced by the amount of the accrued interest on any outstanding
loan.
Endorsed and made a part of this Contract on the effective date of the Contract.
/s/ Xxxxxxx X. Xxxxxx
President
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Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is endorsed as follows:
In addition to any Purchase Payments stated to be made to this Contract, a
lump-sum Purchase Payment(s), of not less than a minimum amount stated by Aetna,
may be made on behalf of one or more Participants, as appropriate. Aetna will
maintain an Individual Account for each lump-sum payment. The terms of this
Contract shall apply to any lump-sum payment except that:
1. A Maintenance Fee will not be deducted from an Individual Account
maintained pursuant to a lump-sum payment; and
2. For each surrender from an Individual Account maintained pursuant
to a lump-sum payment, the Surrender Fee will vary according to
the period of time between the effective date of the Individual
Account and the date of surrender as follows:
If the Period of Time is Surrender Fee
5 years or less 5%
More than 5 years but not more than 6 years 4%
More than 6 years but not more than 7 years 3%
More than 7 years but not more than 8 years 2%
More than 8 years but not more than 9 years 1%
More than 9 years 0%
Endorsed and made a part of this Contract on the effective date of the Contract.
/s/ Xxxxxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed to include the following new provisions:
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.
Twelve transfers of Current Value (excluding transfers from the GA
Account at the end of a Guaranteed Term) can be made during a calendar
year period. Should Aetna allow additional transfers, each may be subject
to a fee of up to $10.
Endorsed and made a part of this Contract effective May 1, 1989.
/s/ Xxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed to add the following new provision under
Surrender Value:
No surrender fee is deducted:
[bullet] On and after the tenth anniversary of the Effective Date of the
Individual Account;
[bullet] From any portion of the Active Life Fund which is paid when the
Individual Account Cash Value is $2,500 or less and no surrenders have
been taken from the Individual Account within the prior 12 months. If
there is more than one Individual Account under the Contract for a
Participant, then this provision will only apply when the total in all
of the Participant's Individual Accounts is $2,500 or less; or
[bullet] In an amount equal to or less than 10% of the current Individual
Account Cash Value, as part of the first partial surrender request in a
calendar year to a 403(b) Participant who is at least age 59 1/2 and
less than age 70 1/2. The Individual Account Cash 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 Participant's
Individual Account are excluded when calculating the Individual Account
Cash Value. This provision does not apply to partial surrenders due to
loan defaults made from Individual Account Values and does not apply to
full surrender requests.
Endorsed and made a part of this Contract on May 1, 1989 or the Effective Date
of the Contract whichever is later.
/s/ Xxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed as follows:
Add the following new paragraph under the General Provisions, subsection
entitled Assignments or Control of Contract and Individual Accounts as follows:
Amounts held under this Contract may be assigned or alienated only as
allowed under Title 29 of the United States Code Annotated (USCA) Section
1056(d), also known as Section 206(d) of the Employee Retirement Income
Security Act. Aetna will follow the procedures in USCA Section 1056(d)
and the regulations thereunder in complying with "qualified domestic
relations orders."
Add to the Contributions, Valuation and Discontinuance Contributions portion or
the Deposit, Reserve and Surrender Provision portion of the Contract the
following new conditions:
Designation of Beneficiary: Each Owner shall name a beneficiary. An
unmarried Owner may designate a beneficiary of his or her entire
Individual Account if it is accompanied by a consent form which certifies
that he or she is unmarried.
For a married Owner, the spouse must be the beneficiary of 50% of his or
her Individual Account (Qualified Pre-retirement Survivor Xxxxxxx,
"QPSA"). Provided, however, if the Owner has attained age 35, he or she
may select an alternate beneficiary for the QPSA if the appropriate
waiver/spousal consent form is submitted to Aetna. For the balance of the
Individual Account, a married Owner may name any beneficiary without
obtaining spousal consent.
Upon the death of a married Owner, Aetna will disregard the beneficiary
named for the QPSA and treat the current spouse as the beneficiary if the
current spouse did not consent to the waiver of the QPSA.
At the discretion of Aetna, a full surrender may be allowed without
spousal consent if the Reserve Value is $3,500 or less.
Sum Payable at Death - 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 Owner dies before Annuity payments start; and
(2) The notice of death is received in good order by Aetna
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The sum payable will be the Current Value on the date when the notice is
received. The beneficiary may choose to apply any sum under an Annuity
Option (see Annuity Provisions), subject to any other terms and
conditions of this Contract, or to receive a lump sum payment.
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 Owner 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
Owner's death or be paid to the beneficiary within 5 years of the Owner'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 Owner.
Spousal Consent - If an Owner is married, his or her spouse must consent in
writing in a form acceptable to Aetna to any request for a partial or full
surrender. For an unmarried Owner, a completed spousal consent form must be
submitted with any request for a partial or full surrender certifying that he or
she is unmarried. This consent must be given within the 90 day period before the
partial or full surrender is to be made.
At the discretion of Aetna, a full surrender may be allowed without spousal
consent if the Current Value is $3,500 or less.
Termination/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:
(a) Net Purchase Payments attributable to Owner salary reduction
contributions made on and after January 1, 1989; plus
(b) The net increase, if any, in the Current Value of the Owner's Individual
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:
(a) The Owner has reached age 59-1/2;
(b) The Owner has separated from service;
(c) The Owner has died;
(d) The Owner has become disabled, within the meaning of Code Section
72(m)(7); or
(e) The withdrawal is otherwise allowed by federal law, regulations or
rulings.
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A full or partial surrender is also allowed if the Owner 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 Owner salary reduction contributions made on and
after January 1, 1989.
Aetna may require that the Owner 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 Owner or beneficiary must notify Aetna in writing when a lump sum
payment is to be made or Annuity payments are to commence.
Limitation on Contributions: The contributions made to an Owner's
Individual 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 additions Limitation of Code Section 415(c)(1). In addition, in no
event may the contributions 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.
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 of the calendar year following the calendar year in
which the Owner attains age 70-1/2. However, for an Owner who attained
age 70 1/2 before January 1, 1988, the distribution of such benefits must
be made or must begin not later than the April 1 of the calendar year
following the calendar year in which the Owner retires.
The above does not apply if the Contract Owner is a governmental entity
or a church. For such an employer, 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
Owner 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 Owner (or the joint lives of the Owner and
beneficiary) or over a period not exceeding the life expectancy of the
Owner (or the joint fife expectancies of the Owner and the beneficiary).
If the Owner 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 that
may result.
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Endorsed and made a part of the Contract effective on October 15, 1990 or the
effective date of the Contract whichever is later.
/s/ X. X. Xxxxxxx
President
Aetna Life Insurance and Annuity Company
4
Aetna Life Insurance and Annuity Company
ENDORSEMENT
Aetna hereby endorses this Contract to allow the transfer of Reserves out of the
General Account. Such transfers will be:
(1) a minimum of 10% of the General Account funds held in the Participant's
Individual Account;
(2) without deduction of any charge; and
(3) to any of the Fund(s) or the Guaranteed Accumulation Account;
(4) allowed once during each calendar year;
(5) prior to the election of an Annuity Option;
(6) without affecting the rights of transfer now in the contract.
Aetna may, for temporary periods of time, allow any larger percentage to be
transferred.
The value of the Reserves held in the General Account, as used above, is the
value when the request is received at the Home Office of Aetna. References to
the General Account above shall not apply to the Guaranteed Accumulation
Account.
Endorsed and made a part of this Contract on the later of September 1, 1983 or
the Effective Date of this Contract.
/s/ Xxx Xxxxxxx
President
Aetna Life Insurance and Annuity Company
