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EXHIBIT 4(a)(iii)(B)
[SAGE LOGO]
A Stock Company
Home Office Customer Service Center
000 Xxxxxxxx Xxxxxx 0000 Xxxxx Xxxxx Xxxxxxx
Xxxxxxxx, XX 00000 Xxxxxxxxxxxx XX 00000
0-000-XXX-XXXX
PLEASE READ THIS CONTRACT CAREFULLY. This group contract is a legal contract
between the Contractholder and Sage Life Assurance of America, Inc. The
Contractholder has the rights described in the Contract. The Owner and
Annuitant are named in each Certificate. We will make Income Payments
beginning on the Income Date shown in each Certificate if the Annuitant is
living on that date.
RIGHT TO EXAMINE A CERTIFICATE:
EACH OWNER MAY RETURN HIS OR HER CERTIFICATE TO US OR THE AGENT WHO SOLD IT TO
THE OWNER WITHIN 10 DAYS AFTER RECEIPT OF IT (THE FREE LOOK PERIOD). WHEN WE
RECEIVE THE RETURNED CERTIFICATE, WE WILL PROMPTLY REFUND TO THE OWNER HIS OR
HER ACCOUNT VALUE PLUS ANY CHARGES SHOWN IN THE SCHEDULE THAT WE HAVE DEDUCTED
FROM SUCH ACCOUNT VALUE ON OR BEFORE THE DATE THE RETURNED CERTIFICATE WAS
RECEIVED BY US, OR IF REQUIRED BY THE LAW OF THE OWNER'S STATE, THE INITIAL
PURCHASE PAYMENT (MINUS ANY WITHDRAWALS).
ALL PAYMENTS AND VALUES, WHEN BASED ON THE INVESTMENT EXPERIENCE OF THE
VARIABLE ACCOUNT, MAY INCREASE OR DECREASE, DEPENDING ON INVESTMENT RESULTS AND
ARE NOT GUARANTEED AS TO DOLLAR AMOUNT. ALL PAYMENTS AND VALUES BASED ON THE
FIXED ACCOUNT MAY BE SUBJECT TO A MARKET VALUE ADJUSTMENT, THE OPERATION OF
WHICH MAY CAUSE SUCH PAYMENTS AND VALUES TO INCREASE OR DECREASE.
/s/ [SIG]
Chairman
GROUP FLEXIBLE PAYMENT DEFERRED COMBINATION FIXED AND
VARIABLE ANNUITY CONTRACT
Surrender Values while the Owner is living and prior to the Income Date
Income Payments begin on the Income Date
Nonparticipating
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TABLE OF CONTENTS
SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
MAKING PURCHASE PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . 9
VARIABLE ACCOUNT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
FIXED ACCOUNT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
TRANSFERS AMONG ACCOUNTS . . . . . . . . . . . . . . . . . . . . . . . . . .13
SURRENDERING, OR WITHDRAWING PART OF THE ACCOUNT VALUE . . . . . . . . . . .13
CHARGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
OWNER, ANNUITANT AND BENEFICIARY . . . . . . . . . . . . . . . . . . . . . .14
DEATH BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
ANNUITY INCOME BENEFITS . . . . . . . . . . . . . . . . . . . . . . . . . . .18
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SCHEDULE
Group Contract No.: 123456789 Effective Date: 1/1/1998
Contractholder: ABC TRUST
Issued In: ILLINOIS (and subject to its laws)
This Schedule sets forth additional information that relates to the provisions
in this Group Contract with the corresponding headings.
MAKING PURCHASE PAYMENTS
The Designated Sub-Account is the [Money Market Sub-Account].
No purchase payment, whether initial or additional, may be allocated such that
any Sub-Account would have a value less than [$250].
Additional purchase payments are subject to the following limits:
1. [Non-qualified plan: Additional purchase payments may be made
until the earlier of the year in which the Owner attains age
[85] or the year in which the Annuitant attains age [85].]
[Qualified plan: Additional purchase payments may be made until
the year in which the Owner attains age [70 1/2], except rollover
contributions may be made until the year in which the Owner
attains age [85].]
2. The minimum additional purchase payment we will accept is [$250;
$1,000(for Certificate without surrender charge)].
3. Our prior approval is required before the Owner makes a purchase
payment that causes the Account Value of all annuities that
the Owner maintains with us to exceed [$1,000,000].
VARIABLE ACCOUNT
The Variable Account for a Certificate is [The Sage Variable Annuity Account
A]. [It is a unit investment trust variable account.]
FIXED ACCOUNT
The Fixed Account for a Certificate is [The Sage Fixed Interest Account A.]
The Minimum Guaranteed Interest Rate is [3%].
The Minimum Deferral Interest Rate is [3%].
Index Rate: [The Index Rate is the U.S. Treasury Constant Maturity Series as
reported in Federal Reserve Bulletin Release H.15. We currently base the
Index Rate for a calendar week on the reported rate for the preceding calendar
week. We reserve the right to set it less frequently but in no event less
often than monthly.]
TRANSFERS AMONG ACCOUNTS
The minimum amount that can be transferred is [$250]. However, if less remains
in a Sub-Account, that amount may be transferred. If a transfer request would
reduce the Account Value remaining in a Sub-Account below [$250], we will treat
the transfer request as a request to transfer the entire amount.
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The Owner's transfer request must clearly state the Sub-Accounts from which and
to which transfers are to be made.
We reserve the right to limit, upon notice, the maximum number of transfers the
Owner may make to [one] per calendar month or [12] per Certificate Year.
After the Income Date, we reserve the right to:
1. disallow transfers from the Fixed Account to the Variable Account,
or from the Variable Account to the Fixed Account; and
2. limit the maximum number of transfers between Variable
Sub-Accounts to [1] per Certificate Year.
SURRENDERING, OR WITHDRAWING PART OF THE ACCOUNT VALUE
The Free Withdrawal Amount is the greater of (a) and (b) where:
[(a) is the excess of 10% of the total purchase payments over 100% of
all prior withdrawals (including any associated surrender charge
and Market Value Adjustment incurred) in that Certificate Year;
and
(b) is the excess of the Account Value on the date of withdrawal over
the unliquidated purchase payments.]
The minimum amount that can be withdrawn is [$250]. If a withdrawal request
would reduce the Account Value remaining in a Sub-Account below [$250], we will
treat the withdrawal request as a request to withdraw the entire amount.
If a requested withdrawal would reduce the Account Value below [$2,000], we
reserve the right to treat the request as a withdrawal of only the excess over
[$2,000].
Unless the Owner specifies otherwise, we will make withdrawals [proportionately
from all Sub-Accounts in which the Owner is invested].
CHARGES
SURRENDER CHARGE - A surrender charge may be imposed upon surrender of a
Certificate or when an Excess Withdrawal is made. The surrender charge is
applied to each purchase payment and is a percentage of each purchase payment
as follows:
Complete Years Maximum
Elapsed Since Surrender Charge
Payment Accepted Percentage
---------------- ----------
[0 7%
1 7%
2 6%
3 5%
4 4%
5 3%
6 1%
7+ 0%]
OR
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Maximum
Certificate Surrender Charge
Year Percentage
---- ----------
[1 7%
2 7%
3 6%
4 5%
5 4%
6 3%
7 1%
8+ 0%]
OR
[The maximum surrender charge percentage is 0% for all Certificate Years.]
TRANSFER CHARGE - We reserve the right to charge a maximum of [$25] for each
transfer after the [12th] in a Certificate Year. Each request is considered to
be one transfer regardless of the number of Sub-Accounts affected by the
transfer. The transfer charge will be deducted proportionately from the
Sub-Accounts from which the transfer is made.
ADMINISTRATION CHARGE - [$40] a year. This charge is incurred at the
beginning of each Certificate Year and deducted on each Certificate Anniversary
or upon surrender. The charge will be waived:
1. if the Account Value is at least [$50,000] at the time of
deduction; or
2. beginning on and after the [8th] Certificate Anniversary.
PURCHASE PAYMENT TAX CHARGE - The amount of any state and local taxes levied by
any governmental entity on purchase payments may be deducted from the Account
Value when such taxes are incurred. We reserve the right to defer the
collection of this charge and deduct it against the Owner's Account Value on
the surrender of a Certificate, or Excess Withdrawal, or application of the
Account Value to provide income payments.
ASSET-BASED CHARGES - We deduct asset-based charges to compensate us for
assuming mortality and expense risks, and certain administrative expenses.
[Prior to the Income Date] asset-based charges are calculated as a percentage
of the Variable Account Value on the date of deduction. On the Certificate
Date, and monthly thereafter, the asset-based charges are deducted in
proportion to the Variable Sub-Accounts in which the Owner is invested. The
maximum charges are:
Asset-Based Charges Annual Charge Monthly Charge
------------------- ------------- --------------
Certificate Years 1-7 [1.40% .116667%
Certificate Years 8+ 1.25% .104167%]
We also reserve the right to deduct asset-based charges on the effective date
of any transfer from the Fixed Account, or allocation of purchase payment to
the Variable Account, based on the amount transferred or allocated, and based
on the number of days remaining until the next date of deduction.
VARIABLE SUB-ACCOUNT CHARGES - [On and after the Income Date] we deduct the
asset-based charges above from the assets in each Variable Sub-Account on a
daily basis. The maximum charges are:
Variable Sub-Account Charges Annual Charge Daily Charge
---------------------------- ------------- ------------
Certificate Years 1-7 [1.40% .0038626%
Certificate Years 8+ 1.25% .0034462%]
CHARGE DEDUCTION RULES - Unless otherwise specified above, charges are deducted
from the Account Value [proportionately from all Sub-Accounts in which you are
invested.]
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ANNUITY INCOME BENEFITS
If the Owner has not chosen an income plan, [Life Annuity with 10 Years
Certain] will automatically apply.
The Maximum Income Date is the first day of the first calendar month following
the Annuitant's [95th] birthday.
We reserve the right to require that the Income Date be at least [2 years]
after the Certificate Date.
The minimum amount that can be applied under any Variable or Fixed Income
Annuity is [$5,000].
The minimum income payment is [$100].
We currently allow assumed investment rates of [3%] and [6%]. If the Owner
does not specify one of these rates when the Owner chooses an income plan, the
assumed investment rate will be [3%].
Values for other ages, and for other payment periods, joint life combinations,
or assumed investment rates that we offer (Tables below assume 3%) are
available on request. Monthly income payments are shown for each $1,000
applied.
INCOME TABLE FOR A FIXED PERIOD
Monthly Monthly Monthly
Fixed Period Income Fixed Period Income Fixed Period Income
of Years Payment of Years Payment of Years Payment
--------- ------- --------- ------- -------- -------
11 $8.88 21 $5.33
12 8.26 22 5.16
13 7.73 23 5.00
14 7.28 24 4.85
5 17.95 15 6.89 25 4.72
6 15.18 16 6.54 26 4.60
7 13.20 17 6.24 27 4.49
8 11.71 18 5.98 28 4.38
9 10.56 19 5.74 29 4.28
10 9.64 20 5.53 30 4.19
INCOME TABLE FOR LIFE
Male/Female Male/Female Male/Female
Age Life Only 10 Years Certain 20 Years Certain
--- --------- ---------------- ----------------
50 4.28 / 3.92 $4.24 / 3.90 $4.10 / 3.84
55 4.72 / 4.27 4.64 / 4.24 4.40 / 4.12
60 5.31 / 4.74 5.17 / 4.68 4.73 / 4.45
65 6.13 / 5.38 5.84 / 5.25 5.04 / 4.81
70 7.28 / 6.29 6.65 / 6.00 5.29 / 5.14
75 8.90 / 7.62 7.53 / 6.92 5.43 / 5.37
80 11.19 / 9.62 8.37 / 7.93 5.50 / 5.48
85 14.36 / 12.63 9.00 / 8.77 5.52 / 5.52
RIDERS
Accidental Death Benefit Rider
The Maximum Accidental Death Benefit is [$250,000].
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DEFINITIONS
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"ACCOUNT VALUE" is the entire amount we hold under a Certificate for the Owner
before the Income Date. It is equal to the sum of the Variable Account Value
and the Fixed Account Value.
"ACCUMULATION UNIT" is the unit of measure we use before the Income Date to
keep track of the value of each Variable Sub-Account.
"ANNUITANT" is the natural person whose age determines the Maximum Income Date
and the amount and duration of income payments involving life contingencies.
The Annuitant may also be the person to whom any payment will be made starting
on the Income Date. The Annuitant's name appears in the Certificate Schedule.
"BENEFICIARY" is the person or persons to whom we pay a death benefit if any
Owner dies prior to the Income Date.
"CERTIFICATE DATE" is the date the Certificate is issued at our Customer
Service Center. The Certificate Date is shown in the Certificate Schedule.
While a Certificate is in force, every anniversary of the Certificate Date is a
CERTIFICATE ANNIVERSARY, and each and every consecutive twelve-month period
beginning on the Certificate Date and each Certificate Anniversary is a
CERTIFICATE YEAR.
"CONTINGENT ANNUITANT" is the natural person who becomes the Annuitant if the
Annuitant dies prior to the Income Date.
"CONTINGENT BENEFICIARY" is the person that becomes the Beneficiary if the
named Beneficiary dies prior to the Income Date.
"CUSTOMER SERVICE CENTER" is where we provide service to the Owner. The
mailing address and telephone number of the Customer Service Center are shown
on the first page of a Certificate.
"EXCESS WITHDRAWAL" is a withdrawal of Account Value that exceeds the Free
Withdrawal Amount.
"EXPIRY DATE" is the last day in a Guarantee Period.
"FIXED ACCOUNT" is a separate investment account of ours into which purchase
payments may be invested or Account Value may be transferred.
"FIXED ACCOUNT VALUE" is the sum of the value of each Fixed Sub-Account on any
particular day.
A "FIXED SUB-ACCOUNT" is established when purchase payments are invested or
amounts are transferred to the Fixed Account. The value of each Fixed
Sub-Account is equal to the amount invested, increased by interest and reduced
by any withdrawals or transfers from, or charges assessed against the Fixed
Sub-Account.
"FREE WITHDRAWAL AMOUNT" is the maximum amount that can be withdrawn in a
Certificate Year without being subject to a surrender charge. This amount is
described in the Schedule.
"GENERAL ACCOUNT" consists of all our assets other than those held in any
separate investment accounts.
"GUARANTEED INTEREST RATE" is the effective annual interest rate we will credit
for a specified Guarantee Period. The Guaranteed Interest Rate will never be
less than the minimum shown in the Schedule.
"GUARANTEE PERIOD" is a period of years for which a specified effective annual
interest rate is guaranteed by us. Interest is credited daily at a rate to
yield the declared annual Guaranteed Interest Rate.
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"HOME OFFICE" is our main office. The mailing address is shown on the first
page of a Certificate.
"INCOME DATE" is the date when income payments under a Certificate commence.
This date is shown in the Certificate Schedule.
"INCOME UNIT" is the unit of measure we use to calculate the amount of income
payments under the Variable Income Annuity.
"MARKET VALUE ADJUSTMENT" is a positive or negative adjustment that may apply
to surrender, withdrawals, transfers and amounts applied to an income plan,
from a Fixed Sub-Account before the end of a Guarantee Period.
"NET ASSET VALUE" is the price of one share of an investment portfolio.
"OWNER" is the Owner of a Certificate. The Owner's name appears in the
Certificate Schedule. The Owner is entitled to exercise all rights under his
or her Certificate. However, if the Owner designates an irrevocable
beneficiary, the Owner may need that beneficiary's consent before he or she may
exercise the Owner's rights under a Certificate. The death of any Owner before
the Income Date initiates payment of the death benefit.
"SATISFACTORY NOTICE" is a notice or request authorized by the Owner, in a form
satisfactory to us, received at our Customer Service Center.
"SUB-ACCOUNT" includes both Variable Sub-Accounts and Fixed Sub-Accounts,
unless the context indicates otherwise.
"SURRENDER VALUE" is the amount the Owner receives upon surrender of his or her
Certificate before the Income Date. It is the Owner's Account Value, plus or
minus any applicable Market Value Adjustment, and less any applicable surrender
charges or other charges shown in the Schedule.
"VALUATION DATE" is the date at the end of a Valuation Period when each
Variable Sub-Account is valued.
"VALUATION PERIOD" is the period between one calculation of an Accumulation
Unit value and the next calculation. Normally, we calculate Accumulation Units
daily when the New York Stock Exchange is open for trading and we are open for
business. We can delay this calculation if an emergency exists, making
disposal or fair valuation of assets in the Variable Account not reasonably
practicable, or the Securities and Exchange Commission (SEC) permits the delay.
We may change when we calculate the Accumulation Unit value by giving the Owner
30 days notice, or such notice as may be required by law.
"VARIABLE ACCOUNT" is a separate investment account of ours into which purchase
payments may be invested or Account Value may be transferred. The Variable
Account is shown in the Schedule.
"VARIABLE ACCOUNT VALUE" is the sum of the value of each Variable Sub-Account
on a Valuation Date.
"VARIABLE SUB-ACCOUNT" is a division of the Variable Account that invests in
shares of a particular investment portfolio. The value of a Variable
Sub-Account is determined by multiplying (a) times (b) where:
(a) equals the number of Accumulation Units held in the Variable
Sub-Account; and
(b) equals the value of the Accumulation Unit for the Variable
Sub-Account.
"WE", "US" OR "OUR" is Sage Life Assurance of America, Inc.
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MAKING PURCHASE PAYMENTS
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INITIAL PURCHASE PAYMENT - The Owner must make the initial purchase payment in
order to put a Certificate in force. The amount of the Owner's initial
purchase payment is shown in the Certificate Schedule.
ADDITIONAL PURCHASE PAYMENTS - After the initial purchase payment, additional
purchase payments may be made at any time while a Certificate is in force and
before the Income Date. The amount of any additional purchase payments may
vary but are subject to limits described in the Schedule.
ALLOCATION OF PURCHASE PAYMENTS AMONG THE VARIABLE AND FIXED ACCOUNTS - Subject
to limits described in the Schedule, the Owner tells us how to allocate the
Owner's purchase payment, less any applicable taxes, by notifying us of the
Owner's choices. The Owner specified how to allocate the Owner's initial
purchase payment in the Owner's application for a Certificate. Initial
purchase payments allocated to the Fixed Account will be invested in Fixed
Sub-Accounts with the Guarantee Periods that the Owner specified in the Owner's
application. We may, however, require that an initial purchase payment
allocated to a Variable Sub-Account be invested in the Designated Sub-Account
shown in the Schedule during the Free Look Period. At the end of the Free Look
Period, if the Owner's initial purchase payment was allocated to the Designated
Sub-Account by us, we will transfer the value of the Designated Sub-Account to
the Sub-Account(s) the Owner specified in the Owner's application. For the
purpose of processing transfers from the Designated Sub-Account, the Free Look
Period will end 15 days after the Certificate Date.
Subject to our rules, the Owner may tell us how to allocate any additional
purchase payments. If the Owner does not tell us, they will be allocated in
the same manner as the Owner's most recent purchase payment.
CANCELLATION OF CERTIFICATE - If the Owner has not made a purchase payment for
more than [2] years and the Owner's Account Value is less than [$2,000] on a
Certificate Anniversary, we may cancel a Certificate and pay the Owner the
Surrender Value as though the Owner had made a full withdrawal. We will send
the Owner written notice at the Owner's address of record. The Owner will be
allowed 61 days from the date we mail the Owner the notice to submit an
additional purchase payment to us in an amount not less than the difference
between [$2,000] and the Account Value on the last Certificate Anniversary.
The additional purchase payment is subject to the limits and minimums shown in
the Schedule.
VARIABLE ACCOUNT
-------------------------------------------------------------------------------
VARIABLE ACCOUNT - A variable account is an investment account we maintain
separate from our General Account and any other separate investment accounts we
may have. We own the assets in a variable account. A variable account will
not be charged with liabilities that arise from any other business that we
conduct. We may transfer to our General Account assets that exceed the reserves
and other liabilities of a variable account.
A variable account may invest in mutual funds, unit investment trusts and other
investment portfolios. Such a variable account is treated as a unit investment
trust under Federal securities laws and is registered with the SEC under the
Investment Company Act of 1940.
We may offer certain series or variable accounts that may not be registered
with the SEC under the Securities Act of 1933. Any such series or variable
account, if offered, will be described in the applicable offering document.
The Variable Account for a Certificate is shown in the Schedule. The laws of
our state of domicile govern this Variable Account.
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VARIABLE SUB-ACCOUNTS - A unit investment trust variable account includes
variable sub-accounts, each investing in a designated investment portfolio.
The sub-accounts and the investment portfolios in which they invest are
specified in the prospectus or offering document. Income, gains or losses,
realized and unrealized from assets in each variable sub-account are credited
to or charged against that variable sub-account without regard to other income,
gains or losses in the other sub-accounts or our other income, gains or losses.
CHANGES WITHIN THE VARIABLE ACCOUNT - We may, from time to time, make
additional Variable Sub-Accounts available to the Owner. These Sub-Accounts
will invest in investment portfolios we find suitable for the Group Contract.
We also have the right to eliminate Sub-Accounts, to combine two or more
Sub-Accounts or to substitute a new investment portfolio for the portfolio in
which a Sub-Account invests. Such an action may become necessary if, in our
judgment, a portfolio or Sub-Account no longer suits the purposes of the Group
Contract. This may happen due to a change in laws or regulations, or a change
in a portfolio's or Sub-Account's investment objectives or restrictions, or
because the portfolio or Sub-Account is no longer available for investment, or
for some other reason. We will get prior approval from the insurance
department of our state of domicile before taking such action. If required,
this approval process will be on file with the insurance department of the
jurisdiction in which the Group Contract is delivered. We will also get any
required approval from the SEC and any other required approvals before taking
such an action.
Subject to any required regulatory approvals, we reserve the right to transfer
assets of the Variable Sub-Accounts that we determine to be associated with the
class of Group Contracts to which the Group Contract belongs, to another
variable account or variable sub-account.
When permitted by law, we reserve the right to:
1. Deregister the Variable Account under the Investment Company Act
of 1940;
2. Operate the Variable Account as a management company under the
Investment Company Act of 1940, if it is operating as a unit
investment trust;
3. Operate the Variable Account as a unit investment trust under the
Investment Company Act of 1940, if it is operating as a
Managed Separate Account;
4. Restrict or eliminate any voting rights of Owners, or other
persons who have voting rights as to the Variable Account;
5. Combine the Variable Account with other separate investment
accounts; and
6. Combine a Variable Sub-Account with another Variable Sub-Account.
If any actions we take result in a material change in the underlying
investments of a Variable Sub-Account in which an Owner is invested, we will
notify the Owner of the change. The Owner may then choose a new Sub-Account.
ACCUMULATION UNITS - We keep track of the value of each of the Owner's Variable
Sub-Accounts by crediting the Owner with Accumulation Units for each
Sub-Account. The number of Accumulation Units credited to the Owner for each
Sub-Account is determined by dividing (a) by (b) where:
(a) is the dollar amount allocated to that Sub-Account; and
(b) is the value of the Accumulation Unit for that Sub-Account for
the Valuation Date on which the purchase payment or
transferred amount is invested in that Sub-Account.
Accumulation Units will be adjusted for any transfers and will be canceled on
payment of a death benefit, a withdrawal, a surrender, the application of
Account Value to an income plan on the Income Date, or assessment of charges
shown in the Schedule (other than the variable sub-account charges) based on
their value for the Valuation Period in which the transaction occurs.
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VALUE OF ACCUMULATION UNITS - The Accumulation Unit value for any Valuation
Period is determined by multiplying (a) by (b) where:
(a) is the Accumulation Unit value for the immediately preceding
Valuation Period; and
(b) is the "net investment factor" for the Variable Sub-Account
for the Valuation Period for which the value is being
determined.
The value of an Accumulation Unit may increase, decrease or remain the same
from one Valuation Period to the next.
NET INVESTMENT FACTOR - The net investment factor for a Variable Sub-Account is
an index that measures the investment performance of that Sub-Account from one
Valuation Period to the next. The net investment factor for any Valuation
Period is determined by dividing (a) by (b), and then subtracting (c) where:
(a) is the net result of:
(i) the Net Asset Value per share of the investment portfolio
share in which the Sub-Account invests determined at
the end of the current Valuation Period; plus
(ii) the per share amount of any dividend or capital gains
distribution made by that investment portfolio on
shares held in the Sub-Account if the "ex-dividend"
date occurs during the current Valuation Period; and
plus or minus
(iii) a per share charge or credit for any taxes reserved for,
which is determined by us to have resulted from the
operations of that Sub-Account;
(b) is the Net Asset Value per share of the investment portfolio share
in which the Sub-Account invests determined at the end of the
immediately preceding Valuation Period; and
(c) is the daily variable sub-account charges shown in the Schedule
(adjusted for the number of days in the Valuation Period).
The net investment factor may be more or less than, or equal to, one.
FIXED ACCOUNT
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FIXED ACCOUNT - The Fixed Account is a separate investment account under state
insurance law. It is maintained separate from our General Account and separate
from any other separate investment account that we may have. We own the assets
in the Fixed Account. Notwithstanding the foregoing, our obligations under
(and the values and benefits under) the Fixed Account option of a Certificate
do not vary as a function of the investment performance of the Fixed Account.
Owners and Beneficiaries with rights under a Certificate do not participate in
the investment gains or losses of the assets of the Fixed Account. Such gains
or losses accrue solely to us. We retain the risk that the value of the assets
in the Fixed Account may fall below the reserves and other liabilities that we
must maintain in connection with our obligations under the Fixed Account option
of a Certificate. In such event, we will transfer assets from our General
Account to the Fixed Account to make up the difference. The Fixed Account will
not be charged with liabilities that arise from any other business that we
conduct. We may transfer to our General Account assets that exceed the
reserves and other liabilities of the Fixed Account. The Fixed Account is not
required to be registered with the SEC as an investment company under the
Investment Company Act of 1940.
FIXED SUB-ACCOUNT - We will establish a separate Fixed Sub-Account for the
Owner each time the Owner allocate amounts to the Fixed Account. Amounts
invested in these Fixed Sub-Accounts earn interest at the Guaranteed Interest
Rate in effect on the date the amounts are allocated.
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GUARANTEE PERIODS - Each Fixed Sub-Account is guaranteed an interest rate for a
period we refer to as a Guarantee Period. The Guaranteed Interest Rate for a
Fixed Sub-Account is effective for the entire Guarantee Period. The length of
a Guarantee Period is measured from the end of the calendar month in which the
amount is allocated to the Fixed Sub-Account. The last day of the Guarantee
Period is its Expiry Date. Surrender, or withdrawals or transfers from all or
part of a Fixed Sub-Account, and amounts applied to an income plan, made prior
to the Expiry Date of a Guarantee Period may be subject to a Market Value
Adjustment.
We will notify the Owner at least thirty days prior to an Expiry Date of the
Owner's options for renewal, which include:
1. electing a new Guarantee Period from among those then offered by
us, but excluding any that extend beyond the Owner's Income
Date; or
2. transferring the value of the Fixed Sub-Account to one or more
Variable Sub-Accounts.
If we do not receive Satisfactory Notice prior to the Expiry Date, we will
transfer the value of the expiring Fixed Sub-Account to a Fixed Sub-Account
with the same Guarantee Period, but not longer than 5 years, nor extending
beyond the Owner's Income Date. The transfer will be effective as of the
Expiry Date of the previous Guarantee Period.
GUARANTEED INTEREST RATES - Periodically, we will declare Guaranteed Interest
Rates for then available Guarantee Periods. These rates will be guaranteed for
the duration of the respective Guarantee Periods. Guaranteed Interest Rates
will never be less than the Minimum Guaranteed Interest Rate shown in the
Schedule.
MARKET VALUE ADJUSTMENT - A Market Value Adjustment may be applied to
surrender, withdrawals, transfers or amounts applied to an income plan when
taken from a Fixed Sub-Account other than during the thirty-day period prior to
its Expiry Date. A Market Value Adjustment is applied separately to each Fixed
Sub-Account.
A Market Value Adjustment is determined by multiplying the amount surrendered,
withdrawn, transferred or applied to an income plan by the following factor:
(N/365)
[(1+I)/(1+J+.0025)] -- 1
Where:
- I is the Index Rate for a maturity equal to the Fixed
Sub-Account's Guarantee Period;
- J is the Index Rate for a maturity equal to the time remaining
(rounded up to the next full year) in the Fixed Sub-Account's
Guarantee Period; and
- N is the remaining number of days in the Guarantee Period at the
time of calculation.
If there is no Index Rate for the maturity needed to calculate I or J, straight
line interpolation between the Index Rate of the next highest and next lowest
maturities will be used to determine that Index Rate. If the maturity is one
year or less, we will use the Index Rate for a one-year maturity.
Market Value Adjustments will be applied as follows:
- For a surrender, withdrawal, transfer or amount applied to an
income plan, the Market Value Adjustment will be calculated on
the total amount that must be surrendered, withdrawn,
transferred or applied to an income plan in order to provide
the amount requested.
- If the Market Value Adjustment is negative, it is deducted from
any remaining value in the Fixed Sub-Account or amount
surrendered. Any remaining Market Value Adjustment is
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deducted from the amount withdrawn, transferred or applied to an
income plan.
- If the Market Value Adjustment is positive, it is added to any
remaining value in the Fixed Sub-Account or amount
surrendered. If the full amount of the Fixed Sub-Account is
withdrawn, transferred or applied to an income plan, the
Market Value Adjustment is added to the amount withdrawn,
transferred or applied to an income plan.
TRANSFERS AMONG ACCOUNTS
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Prior to the Income Date and while the Annuitant is living, the Owner may
transfer Account Value among Sub-Accounts. Certain restrictions may apply
during the Free Look Period. To make a transfer, the Owner must give us
Satisfactory Notice. Transfers generally take effect when we receive the
notice. The number of free transfers that we allow each Certificate Year is
shown in the Charges section of the Schedule. Restrictions for transfers are
shown in the Schedule. A transfer from a Fixed Sub-Account may be subject to a
Market Value Adjustment.
SURRENDERING, OR WITHDRAWING PART OF THE ACCOUNT VALUE
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Prior to the Income Date and while the Annuitant is living, the Owner may
withdraw all or part of the Owner's Account Value by giving us Satisfactory
Notice. The minimum withdrawal is shown in the Schedule.
If the Owner requests a surrender, we will terminate the Certificate and pay
the Owner the Surrender Value. This amount may also be applied to the income
plans subject to any restrictions described in a Certificate. Unless specified
otherwise, we will make partial withdrawals as described in the Schedule.
Surrender and withdrawals generally take effect on the date we receive
Satisfactory Notice.
If the Owner makes a withdrawal from a Certificate in excess of the Free
Withdrawal Amount described in the Schedule, a surrender charge may be
assessed. Surrender charges are described in the Schedule. A withdrawal from
the Fixed Account may also be subject to a Market Value Adjustment.
EXCESS WITHDRAWALS - If a partial withdrawal is made for an amount greater than
the Free Withdrawal Amount, a surrender charge may be applicable. For purposes
of calculating the surrender charge only, purchase payments will be liquidated
in whole or in part on a "first-in-first-out-basis." This means we liquidate
purchase payments in the order they were made: the oldest unliquidated purchase
payment first, the next oldest unliquidated purchase payment second, etc.,
until all purchase payments have been liquidated.
The surrender charge as to any liquidated purchase payment is determined by
multiplying the amount of the purchase payment being liquidated by the
applicable percentage shown in the Schedule. The total surrender charge will
be the sum of the surrender charges for each purchase payment being liquidated.
In a partial withdrawal, the surrender charge is deducted from the Account
Value remaining after the Owner is paid the amount requested. The amount
requested from a Sub-Account may not exceed the value of that Sub-Account less
any applicable surrender charge. In a complete withdrawal (or surrender of a
Certificate), it is deducted from the amount otherwise payable.
CHARGES
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The types and amounts of charges and when and how they are deducted are
described in the Schedule. Charges under this Group Contract and the
Certificates may be reduced or eliminated when certain sales or administration
of the Group Contract result in savings or reduction of expenses and or risks.
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OWNER, ANNUITANT AND BENEFICIARY
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THE OWNER - The Owner has the rights and options described in this Group
Contract, including but not limited to the right to receive income payments
beginning on the Income Date. One or more people may own a Certificate.
THE ANNUITANT - Unless another Annuitant is shown in the Schedule, the Owner is
also the Annuitant. The Owner may name a Contingent Annuitant. The Owner will
be the Contingent Annuitant unless the Owner names someone else. If there are
joint Owners, we will treat the youngest Owner as the Contingent Annuitant,
unless the Owner elects otherwise.
If the Owner is not the Annuitant and the Annuitant dies before the Income
Date, the Contingent Annuitant becomes the Annuitant. If the Annuitant dies and
no Contingent Annuitant has been named, we will allow the Owner sixty days to
designate someone other than himself or herself as Xxxxxxxxx.
THE BENEFICIARY - We pay the death benefit to the primary Beneficiary (unless
there are joint Owners in which case proceeds are payable to the surviving
Owner). If the primary Beneficiary dies before the Owner, the death benefit is
paid to the Contingent Beneficiary, if any. If there is no surviving
Beneficiary, we pay the death benefit to the Owner's estate.
One or more persons may be named as primary Beneficiary or Contingent
Beneficiary. We will assume any death benefit is to be paid in equal shares to
the multiple surviving Beneficiaries unless the Owner specifies otherwise.
The Owner has the right to change Beneficiaries. However, if the Owner
designates the primary Beneficiary as irrevocable, the Owner may need the
consent of that irrevocable Beneficiary to exercise the rights and options
under a Certificate.
CHANGE OF OWNER, BENEFICIARY OR ANNUITANT - During the Owner's lifetime and
while a Certificate is in force the Owner can transfer ownership of a
Certificate or change the Beneficiary, or change the Annuitant. (However, the
Annuitant cannot be changed after the Income Date.) To make any of these
changes, the Owner must send us Satisfactory Notice. If accepted, any change
in Owner, Beneficiary or Annuitant will take effect on the date the Owner
signed the notice. Any of these changes will not affect any payment made or
action taken by us before our acceptance. A CHANGE OF OWNER MAY BE A TAXABLE
EVENT and may also affect the amount of death benefit payable under a
Certificate.
DEATH BENEFITS
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DEATH BENEFIT BEFORE THE INCOME DATE - If any Owner dies before the Income
Date, we will pay the Beneficiary the greatest of the following:
(a) the Account Value determined as of the day we receive proof of death; or
(b) 100% of the sum of all purchase payments made to a Certificate,
reduced by any prior withdrawals (including any associated
surrender charge and Market Value Adjustment incurred); or
(c) the Highest Anniversary Value.
HIGHEST ANNIVERSARY VALUE - The Highest Anniversary Value is equal to the
greatest anniversary value attained from the following:
Upon our receipt of proof of death, we will calculate an anniversary
value for each Certificate Anniversary before the Owner's death
excluding, however, Certificate Anniversaries that come
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after the Owner attains age 80. An anniversary value is equal to the
Account Value on a Certificate Anniversary, increased by the dollar
amount of any purchase payments made since that Certificate
Anniversary and reduced for any withdrawals (including any associated
surrender charge and Market Value Adjustment incurred) taken since
that anniversary. This reduction will be made in proportion to the
reduction in the Account Value that results from a withdrawal.
MULTIPLE OWNERS - If there are multiple Owners, the age of the oldest Owner
will be used to determine the death benefit.
DEATH BENEFIT WHEN NO NATURAL OWNERS - If there is no Owner who is a natural
person, we will treat the Annuitant as Owner for the purpose of paying the
death benefit, and the Annuitant's age will determine the death benefit payable
to the Beneficiary.
REQUIRED DISTRIBUTION OF PROCEEDS ON THE DEATH OF THE OWNER - The three
sub-subsections indicated below are required to qualify a Certificate as an
annuity contract under Section 72(s) of the Internal Revenue Code of 1986, as
amended. Where the terms of these three sub-sections are in conflict with any
other sections or sub-sections of a Certificate, these three sub-sections will
control. We reserve the right to amend or administer the Group Contract and
any Certificate as necessary to comply with the applicable tax requirements.
These three sub-sections and each Certificate should be construed so that they
comply with the applicable tax requirements.
DEATH BENEFIT OPTIONS BEFORE INCOME DATE - In the event any Owner dies
before the Income Date, the death benefit may be taken in one sum, in
which case that Certificate will terminate. Such sum shall be paid
within five years of the Owner's death unless one of the options for
continuation of the Certificate below is elected by the person
entitled to make that election.
CERTIFICATE CONTINUATION OPTION - If the death benefit is not taken in
one sum immediately, the Certificate will continue subject to the
following provisions:
1. If there are joint Owners, the surviving Owner becomes the new
Owner. Otherwise, the Beneficiary becomes the new Owner.
2. Unless specified otherwise, any excess of the death benefit
over the Account Value will be allocated to and among the
Variable and Fixed Accounts in proportion to their values as
of the date on which the death benefit is determined. We will
establish a new Fixed Sub-Account for any allocation to the
Fixed Account based on the Guarantee Period the Owner then
elects.
3. No additional purchase payments may be applied to a
Certificate.
4. If the new Owner is not the deceased Owner's spouse, the
entire interest in a Certificate must be distributed under one
of the following options:
a. The entire interest in a Certificate must be distributed
over the life of the new Owner, or over a period not
extending beyond the life expectancy of the new Owner,
with distributions beginning within one year of the
Owner's death; or
b. The entire interest in a Certificate must be distributed
within 5 years of the Owner's death.
5. If the new Owner is the deceased Owner's spouse, a Certificate
will continue with the surviving spouse as the new Owner. The
surviving spouse may name a new Beneficiary. If no
Beneficiary is so named, the surviving spouse's estate will be
the Beneficiary. Upon the death of the surviving spouse, the
death benefit will equal the Account Value as of the date we
receive proof of the spouse's death, and the entire interest
in a Certificate must be distributed to the new Beneficiary in
accordance with the provisions of 4 (a) or 4 (b) above.
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If there is more than one Beneficiary, the foregoing provisions will
independently apply to each Beneficiary.
DEATH BENEFIT ON OR AFTER THE INCOME DATE - If any Owner dies on or
after the Income Date but before the time the entire interest in a
Certificate has been distributed, the remaining portion will be
distributed at least as rapidly as under the method of distribution
being used as of the date of the Owner's death.
If income payments have been selected based on an income plan
providing for payments for a guaranteed period, and the Annuitant dies
on or after the Income Date, we will make the remaining guaranteed
payments to the Beneficiary. Any remaining payments will be made as
rapidly as under the method of distribution being used as of the date
of the Annuitant's death. If no Beneficiary is living, we will
commute any unpaid guaranteed payments to a single sum (on the basis
of the interest rate used in determining the payments) and pay that
single sum to the estate of the last to die of the Annuitant or the
Beneficiary.
PROOF OF DEATH - Proof of death must be received at our Customer Service Center
before we will pay any death benefit. We will accept one of the following
items:
1. An original certified copy of an official death certificate; or
2. An original certified copy of a decree of a court of competent
jurisdiction as to the finding of death; or
3. Any other proof satisfactory to us.
GENERAL PROVISIONS
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ENTIRE CONTRACT - This Group Contract including any attached riders,
endorsements, amendments, and the application of the Contractholder constitutes
the entire contract between the Contractholder and us. All statements made by
the Contractholder, or any Owner will be deemed representations and not
warranties.
ASSIGNMENT - The Owner may assign a Certificate at any time prior to the Income
Date. No assignment will be binding on us unless we receive Satisfactory
Notice. We will not be liable for any payments made or actions we take before
the assignment is accepted by us. An absolute assignment will revoke the
interest of any revocable Beneficiary. We will not be responsible for the
validity of any assignment. AN ASSIGNMENT MAY BE A TAXABLE EVENT.
CLAIMS OF CREDITORS - To the extent permitted by law, no benefits payable under
a Certificate will be subject to the claims of the Owner's, the Beneficiary's,
or the Annuitant's creditors.
MISSTATEMENT AND PROOF OF AGE, SEX OR SURVIVAL - We may require proof of age,
sex or survival of any person upon whose age, sex or survival any payments
depend. If the age or sex of the Annuitant has been misstated, or if the age
of the Owner has been misstated, the benefits will be those that the Account
Value applied would have provided for the correct age and sex. If we have made
incorrect income payments, the amount of any underpayment will be paid
immediately. The amount of any overpayment will be deducted from future income
payments.
NO DIVIDENDS PAYABLE - A Certificate is non-participating and does not share in
any distribution of our surplus. We will not pay any dividends.
INCONTESTABILITY - This Group Contract is incontestable from its Effective
Date. A Certificate is incontestable from its Certificate Date.
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REQUIRED REPORTS - We will furnish a report to the Owner as often as required
by law, but at least once each Certificate Year before the Income Date. The
report will show the number of Accumulation Units credited to each Variable
Sub-Account in which the Owner is invested and the corresponding Accumulation
Unit value as of the date of the report. It will also show the Owner's Fixed
Account Value.
MORTALITY AND EXPENSES - Our actual mortality and expense experience will not
affect the amount of any income payments or any other values under a
Certificate.
TAXES BASED UPON PURCHASE PAYMENT OR VALUE - If there is a law or change in law
assessing taxes against us based upon purchase payments or value of a
Certificate, we reserve the right to charge the Owner and all similarly
situated Owners proportionately for that tax. This would include a tax based
upon our realized net capital gains in the Variable Sub-Accounts and on
earnings in the Fixed Account, on which we are not currently taxed.
PAYMENTS WE MAY DEFER - We may not be able to determine the value of the assets
of the Variable Sub-Accounts because:
1. The New York Stock Exchange is closed for trading;
2. The SEC determines that a state of emergency exists;
3. An order or pronouncement of the SEC permits a delay for the
protection of Owners; or
4. The check used to pay the purchase payment has not cleared through
the banking system. This may take up to 15 days.
If this happens, we may delay:
1. Determination and payment of the Surrender Value or any
withdrawal;
2. Determination and payment of any death benefit if death occurs
before the Income Date;
3. Transfers of the Account Value; or
4. Application of the Account Value under an income plan.
We reserve the right to delay payment of amounts from the Fixed Account for up
to six months. If deferred 30 days or more, the amount deferred will earn
interest at a rate not less than the Minimum Deferral Interest Rate shown in
the Fixed Account section of the Schedule.
AUTHORITY TO MAKE AGREEMENTS - All agreements made by us must be signed by one
of our officers. No other person, including an insurance agent or broker, can
change the terms of this Group Certificate or a Certificate or make any
agreement binding on us. However, we can, with the agreement of the Group
Contractholder, make changes to the Group Contract and a Certificate without an
Owner's consent.
REQUIRED NOTE ON OUR COMPUTATIONS - We have filed a detailed statement of our
computations with the insurance supervisory officials in the appropriate
jurisdictions. The values are not less than those required by the laws of
those states or jurisdictions. Any benefit provided by an attached rider will
not increase these values unless otherwise stated in that rider.
CERTIFICATES - We will furnish Certificates to the Owners. Each Certificate
will summarize provisions of this Group Contract affecting an individual Owner.
FACTS RELATING TO COVERAGE - At any reasonable time we will have the right to
inspect any records of the Contractholder and plan sponsor which relate to this
Group Contract.
DISCONTINUANCE OF GROUP CONTRACT - This Group Contract may be discontinued by
us or the Contractholder. The party who initiates the discontinuance will send
a notice to each Owner of record, at his or her last known address, at least 15
days prior to the date of discontinuance. No new Owners will be accepted and
no additional purchase payments will be accepted on or after the date notice of
the discontinuance is received or sent by us, whichever is applicable.
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ANNUITY INCOME BENEFITS
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CHOOSING AN INCOME DATE AND INCOME PLAN - On the Income Date, if the Annuitant
is alive and a Certificate is in force, income payments will begin under the
income plan the Owner has chosen. If the Owner has not chosen an income plan,
the option shown in the Schedule will automatically apply. If the Owner has
not selected an Income Date, the Maximum Income Date shown in the Schedule will
automatically apply.
The Owner may choose or change an income plan or the Income Date by giving us
Satisfactory Notice at least 30 days before the Income Date. However, any
Income Date must meet the restrictions described in the Schedule.
Once income payments have begun, we reserve the right to disallow further
changes without our prior approval.
MINIMUM AMOUNTS - If the amount available to apply under any variable or fixed
option is less than the minimum amount shown in the Schedule, we reserve the
right to pay such amount in a lump sum in lieu of the payment otherwise
provided for.
Income payments will be made monthly unless quarterly, semi-annual or annual
payments are chosen by giving us Satisfactory Notice at least 30 days before
the Income Date. However, if at any time the payment becomes less than the
minimum income payment shown in the Schedule, we reserve the right to reduce
the frequency of payment to an interval that results in each payment being at
least equal to the minimum income payment. In no event will the interval be
less frequent than annual.
ALLOCATION OF ANNUITY - At the time the Owner elects the income plan, the Owner
may also elect to have the Account Value applied to provide a Variable Income
Annuity, a Fixed Income Annuity, or a combination of both. Unless the Owner
specifies otherwise, we will provide either variable or fixed, or a combination
of variable and fixed income payments in proportion to the Sub-Accounts in
which the Owner is invested as of a date not more than [5] Valuation Days
before the due date of the first income payment. If any applicable purchase
payment taxes are then due us, we will also deduct them proportionately.
VARIABLE INCOME ANNUITY
AMOUNT OF FIRST VARIABLE PAYMENT - The Income Tables shown in the Schedule are
used to determine the first monthly variable income payment for an assumed
investment rate of 3%. The Income Tables show the dollar amount of the first
monthly variable income payment that can be purchased with each $1,000 applied.
The assumed investment rates we currently allow are shown on the Schedule.
VALUE OF INCOME UNITS - The Income Unit value for any Valuation Period is
determined by multiplying (a) by (b), and then dividing by (c) where:
(a) is the Income Unit value for the immediately preceding Valuation
Period;
(b) is the "net investment factor" for the Variable Sub-Account for the
Valuation Period for which the value is being determined; and
(c) is the daily equivalent of the assumed investment rate for the
number of days in the Valuation Period.
The value of an Income Unit may increase, decrease or remain the same from one
Valuation Period to the next.
NUMBER OF INCOME UNITS - We determine the number of Income Units in each
Variable Sub-Account by dividing the first monthly variable income payment
attributable to that Sub-Account by its Income Unit value as of a date not more
than [5] Valuation Days before the due date of the first variable income
payment.
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AMOUNT OF SECOND AND SUBSEQUENT VARIABLE PAYMENTS - The dollar amount of the
second and subsequent variable income payments may change with the investment
performance of the Variable Sub-Accounts. The total amount of each variable
income payment will be equal to the sum of the variable income payments in each
Variable Sub-Account. The dollar amount of each payment for a Variable
Sub-Account is determined by multiplying the number of Income Units by the
Income Unit value for the Variable Sub-Account for the Valuation Period which
ends on a consistently applied date not more than [5] Valuation Days before the
payment is due.
We guarantee that the dollar amount of each payment after the first will not be
affected by variations in our expenses or mortality experience.
EXCHANGE OF INCOME UNITS - After the Income Date, if there is an exchange of
value of a designated number of Income Units of particular Variable
Sub-Accounts into other Income Units, the value will be such that the dollar
amount of income payment made on the date of exchange would be unaffected by
the exchange.
FIXED INCOME ANNUITY
A Fixed Income Annuity is an annuity with income payments that remain fixed as
to dollar amount throughout the payment period. The Income Tables shown in the
Schedule are used to determine the monthly fixed income payment. The Income
Tables show the dollar amount of the monthly fixed income payment that can be
purchased with each $1,000 applied.
INCOME PLANS
The following is a list of income plans we guarantee to make available.
INCOME PLAN 1. LIFE ANNUITY - An annuity payable during the lifetime of the
Annuitant and terminating with the last payment preceding the death of the
Annuitant.
INCOME PLAN 2. LIFE ANNUITY WITH 10 OR 20 YEARS CERTAIN - An annuity payable
during the lifetime of the Annuitant with the provision that payments will be
made for a minimum of 10 or 20 years, as elected.
INCOME PLAN 3. JOINT AND LAST SURVIVOR ANNUITY - An annuity payable during the
joint lifetime of the Annuitant and a designated second person, and thereafter
during the remaining lifetime of the survivor, ceasing with the last payment
prior to the death of the survivor.
INCOME PLAN 4. PAYMENTS FOR A SPECIFIED PERIOD CERTAIN - An amount payable for
the number of years selected which may be from 5 to 30 years.
INCOME PLAN 5. ANNUITY PLAN - An amount can be used to purchase any single
premium annuity we offer on the Income Date for which the Owner and the
Annuitant are eligible.
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[SAGE LOGO]
A Stock Company
GROUP FLEXIBLE PAYMENT DEFERRED COMBINATION FIXED AND
VARIABLE ANNUITY CONTRACT
Surrender Values while the Owner is living and prior to the Income Date
Income Payments begin on the Income Date
Nonparticipating
