THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA
agrees to pay the benefits provided under this Contract in accordance with and
subject to its terms.
Contractholder: ABC COMPANY
Plan: ABC Company 401(k) Plan
Effective Date: April 1, 19XX
Jurisdiction: Pennsylvania
Contract Number: GA-XXXX
ABC COMPANY THE PRUDENTIAL INSURANCE COMPANY
ANY TOWN, PENNSYLVANIA OF AMERICA
_____________________________________ _____________________________________
Title: Chairman of the Board and
Chief Executive Officer
Date:________________________________ _____________________________________
Secretary
Attest:______________________________
Date:________________________________
GROUP ANNUITY CONTRACT
THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA APPLICABLE TO THE FIXED
INVESTMENT OPTION. THE APPLICATION OF THIS FORMULA MAY RESULT IN A DOWNWARD
ADJUSTMENT IN CASH VALUES. SECTIONS 6.2 AND 6.3 IDENTIFY WHEN CASH VALUES ARE
AVAILABLE WITHOUT THE APPLICATION OF THE MARKET VALUE ADJUSTMENT FORMULA.
CONTRIBUTIONS TO THIS GROUP ANNUITY CONTRACT MAY BE INVESTED IN SEPARATE
INVESTMENT ACCOUNTS. ALL BENEFIT PAYMENTS PROVIDED UNDER THIS CONTRACT THAT ARE
BASED ON THE INVESTMENT RESULTS OF A SEPARATE INVESTMENT ACCOUNT ARE VARIABLE,
SUBJECT TO GAIN OR LOSS, AND ARE NOT GUARANTEED AS TO A FIXED AMOUNT.
DEFINITIONS PAGE
1.0 Annual Account Charge . . . . . . . . . . . . . . . . . . . . . . . .1
1.1 Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
1.2 Business Day. . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
1.3 Code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
1.4 Competing Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . .1
1.5 Contractholder. . . . . . . . . . . . . . . . . . . . . . . . . . . .1
1.6 Contractholder Account. . . . . . . . . . . . . . . . . . . . . . . .1
1.7 Contractholder Fixed Account. . . . . . . . . . . . . . . . . . . . .1
1.8 Contractholder Variable Account . . . . . . . . . . . . . . . . . . .2
1.9 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
1.10 Effective Annual Rate . . . . . . . . . . . . . . . . . . . . . . . .2
1.11 ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
1.12 Good Order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
1.13 Participant . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
1.14 Participant Account . . . . . . . . . . . . . . . . . . . . . . . . .2
1.15 Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
1.16 Plan Investment Fund. . . . . . . . . . . . . . . . . . . . . . . . .2
1.17 Prudential. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.18 Rate Segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.19 Separate Account. . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.20 Subaccount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.21 Transfer Payments . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.22 Transfer Request. . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.23 Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.24 Unit Value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.25 Withdrawal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.26 Withdrawal Date . . . . . . . . . . . . . . . . . . . . . . . . . . .4
1.27 Withdrawal Value. . . . . . . . . . . . . . . . . . . . . . . . . . .4
RELATIONSHIP BETWEEN PLAN AND CONTRACT
2.1 General Understanding . . . . . . . . . . . . . . . . . . . . . . . .4
2.2 Statutory Requirements. . . . . . . . . . . . . . . . . . . . . . . .4
2.3 Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
CONTRIBUTIONS AND CONTRACTHOLDER ACCOUNT
3.1 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
3.2 Participant Account Segments. . . . . . . . . . . . . . . . . . . . .5
3.3 Contractholder Fixed Account
Interest Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . .5
3.4 Contributions from Prior
Prudential Fixed Account Contracts. . . . . . . . . . . . . . . . . .5
3.5 Contractholder Variable Account . . . . . . . . . . . . . . . . . . .6
3.6 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
VARIABLE INVESTMENT OPTIONS
4.1 Separate Accounts . . . . . . . . . . . . . . . . . . . . . . . . . .6
4.2 Subaccounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
4.3 Voting Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
4.4 Modification of Separate
Accounts and Subaccounts. . . . . . . . . . . . . . . . . . . . . . .7
TRANSFER PAYMENTS
5.1 Transfer Payments to Plan
Investment Funds. . . . . . . . . . . . . . . . . . . . . . . . . . .7
5.2 Transfer Payment Terms. . . . . . . . . . . . . . . . . . . . . . . .8
WITHDRAWALS PAGE
6.1 Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
6.2 Withdrawals for Benefit
Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
6.3 Withdrawals at Termination
of Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
6.4 Withdrawals Subject to a
Market Value Adjustment . . . . . . . . . . . . . . . . . . . . . . 11
6.5 Market Value Adjustment Formula . . . . . . . . . . . . . . . . . . 11
FORMS OF BENEFITS
7.1 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
7.2 Terms of Payment of Annuities . . . . . . . . . . . . . . . . . . . 12
7.3 Certificates. . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
7.4 Minimum Death Benefit . . . . . . . . . . . . . . . . . . . . . . . 12
TERMINATION OF CONTRACT
8.1 Sixty Day Termination . . . . . . . . . . . . . . . . . . . . . . . 13
8.2 Termination for Cause . . . . . . . . . . . . . . . . . . . . . . . 13
8.3 Effect of Termination . . . . . . . . . . . . . . . . . . . . . . . 13
8.4 Partial Contract Termination. . . . . . . . . . . . . . . . . . . . 14
CHANGES
9.1 Changes by Agreement. . . . . . . . . . . . . . . . . . . . . . . . 14
9.2 Changes by Prudential . . . . . . . . . . . . . . . . . . . . . . . 14
9.3 Persons Empowered to Act for Us . . . . . . . . . . . . . . . . . . 14
GENERAL TERMS
10.1 Communications. . . . . . . . . . . . . . . . . . . . . . . . . . . 15
10.2 Place of Payment. . . . . . . . . . . . . . . . . . . . . . . . . . 15
10.3 Information - Records . . . . . . . . . . . . . . . . . . . . . . . 15
10.4 Misstatements . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
10.5 Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
10.6 Small Annuities and Amounts;
Natural Persons . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.7 Divisible Surplus . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.8 Limit on Assignment . . . . . . . . . . . . . . . . . . . . . . . . 16
10.9 Plan Changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.10 Entire Contract . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.11 Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
10.12 Interest on Benefit Payments. . . . . . . . . . . . . . . . . . . . 17
10.13 Contractholder. . . . . . . . . . . . . . . . . . . . . . . . . . . 17
10.14 Exclusive Benefit . . . . . . . . . . . . . . . . . . . . . . . . . 17
DEFERRED SALES CHARGES
11.1 Deferred Sales Charge . . . . . . . . . . . . . . . . . . . . . . . 18
APPENDIX A Separate Investment Accounts
SCHEDULES
Schedule A. Forms of Annuity which may be
Purchased
Schedule B. Life - Payment Certain Annuity
Schedule C. Life - Contingent Annuity
Schedule D. Payment Certain Annuity
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SECTION 1 - DEFINITIONS
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1.0 ANNUAL ACCOUNT CHARGE
If we or our designee provide services under an administrative services
agreement, we will assess an Annual Account Charge on or about the last
day of each calendar quarter for each Participant for whom an account is
maintained in connection with this Contract. This charge will not
exceed $32 each calendar year per Participant. This charge will be
deducted directly from funds maintained under this Contract, unless paid
directly by the Contractholder.
1.1 BENEFICIARY
A person designated by a Participant to receive benefits from funds held
under this Contract.
1.2 BUSINESS DAY
A day on which the New York Stock Exchange and Prudential are open for
business.
1.3 CODE
The Internal Revenue Code of 1986, as amended, or any of the
corresponding provisions of prior or subsequent United States revenue
laws.
1.4 COMPETING FUND
An investment option available under the Plan that is primarily
comprised of high quality fixed income securities with an average
duration of less than or equal to 4.5 years. For purposes of the
Contract, Competing Funds include but are not limited to money market
and short term bond funds.
1.5 CONTRACTHOLDER
The holder of the Contract as shown on the cover page, its successors
and assigns. "You" or "your" means the Contractholder.
1.6 CONTRACTHOLDER ACCOUNT
An account that is equal to the sum of the Contractholder Fixed Account
and the Contractholder Variable Account.
1.7 CONTRACTHOLDER FIXED ACCOUNT
An unallocated account that is equal to the sum of all Contributions
earning a guaranteed rate of interest under Section 3.3 of this Contract
plus interest credits, less all Withdrawals, Transfer Payments, fees and
charges. There are no required Contributions to the Contractholder
Fixed Account.
1
1.8 CONTRACTHOLDER VARIABLE ACCOUNT
An unallocated account that is equal to the dollar amount of all Units
in the separate accounts or Subaccounts in which you invest, less any
fees or charges.
1.9 CONTRIBUTIONS
Payments you make to us as described in Section 3.1. We will grant a
period of 31 days for the payment of any required Contributions under
this Contract.
1.10 EFFECTIVE ANNUAL RATE
A method of crediting interest where the annualized income is expressed
as a compound annual rate of interest. An amount invested for a full
year would increase by a percentage equal to the Effective Annual Rate.
1.11 ERISA
The Employee Retirement Income Security Act of 1974, as amended.
1.12 GOOD ORDER
An instruction received by us, utilizing such forms as we may require,
that is sufficiently complete and clear that we do not need to exercise
any discretion to follow such instruction.
1.13 PARTICIPANT
A natural person on whose behalf funds are contributed or maintained
under the Plan.
1.14 PARTICIPANT ACCOUNT
The dollar value of funds maintained for each person in accordance with
the terms of the Plan. The Participant Account may be invested in the
fixed interest option through the Contractholder Fixed Account, or the
variable separate account options through the Contractholder Variable
Account.
1.15 PLAN
A plan adopted by you that provides Participants with coverage under an
annuity contract intended to meet the requirements of Section 401 of the
Code. The Plan is mentioned for reference purposes only and is shown on
the cover page. "Plan" shall include such other plans of the
Contractholder or plans maintained for other employers as the parties
agree. The terms of this Contract shall apply separately with respect
to each plan maintained thereunder. We are not a party to the Plan.
1.16 PLAN INVESTMENT FUND
An investment fund available under the Plan as of the Effective Date or
of which we are later notified.
2
1.17 PRUDENTIAL
The Prudential Insurance Company of America or, with regard to
recordkeeping or administrative matters, our designee as communicated to
the Contractholder. "We," "us," or "our" means Prudential or our
designee.
1.18 RATE SEGMENT
A section of the Contractholder Fixed Account that credits the same rate
of interest for the same time period for Contributions and accumulated
interest thereon.
1.19 SEPARATE ACCOUNT
An Account established by Prudential and maintained primarily for one or
more group annuity contracts. The Separate Account will hold assets
acquired with the proceeds of Contributions.
1.20 SUBACCOUNT
A subdivision of a Separate Account, the assets of which are invested in
a corresponding portfolio of a fund or portfolio of securities.
1.21 TRANSFER PAYMENTS
An amount transferred by or on behalf of Participants among Plan
Investment Funds.
1.22 TRANSFER REQUEST
A request by you or your designee pursuant to elections by Participants,
received by us in Good Order to make a Transfer Payment.
1.23 UNIT
You are credited with units in each Separate Account or Subaccount in
which you invest. The number of Units credited to the account is
determined by dividing each Contribution made to a Separate Account or
Subaccount by the applicable Unit Value for the Business Day on which
the Contribution is received by us in Good Order.
1.24 UNIT VALUE
The dollar value of an interest in a Separate Account or Subaccount.
The Unit Value of each Separate Account or Subaccount will be determined
each Business Day, and will measure changes in the value of the Separate
Account's or Subaccounts assets minus its outstanding liabilities, fees
and expenses. The Unit Value is determined before giving effect to
additions to and withdrawals or transfers from a Separate Account or
Subaccount for that day.
1.25 WITHDRAWAL
A payment from the Contractholder Account that is not a Transfer
Payment.
3
1.26 WITHDRAWAL DATE
The Business Day we receive notice from you in Good Order to make a
Withdrawal as described further in Section 6.
1.27 WITHDRAWAL VALUE
The dollar value of any Withdrawal less any charges or fees incurred,
including any applicable market value adjustment.
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SECTION 2 - RELATIONSHIP BETWEEN PLAN AND CONTRACT
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2.1 GENERAL UNDERSTANDING
You will make Contributions as provided in this Contract. However, the
existence of this Contract does not cause us to be a party to or a
fiduciary of the Plan. We make no representation and assume no
liability as to the sufficiency of Contributions or the Contractholder
Account for the benefits to be provided under the Plan. You are solely
responsible for the selection of this Contract as a suitable funding
vehicle for the Plan.
2.2 STATUTORY REQUIREMENTS
This Contract is issued in conjunction with a 401 Plan. We reserve the
right to administer this Contract in accordance with the provisions of
Code Section 401 and its regulations and rules, the eligible rollover
distribution rules of Code Section 401(a)(31), and other applicable
provisions of the Code.
2.3 CONDITIONS
The continuation of this Contract is conditioned upon there being no
change in the Plan or its investment policy that, in our judgment, would
materially disrupt the level of Contributions or increase Withdrawals
compared to prior periods.
--------------------------------------------------------------------------------
SECTION 3 - CONTRIBUTIONS AND CONTRACTHOLDER ACCOUNT
--------------------------------------------------------------------------------
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3.1 CONTRIBUTIONS
You will remit as Contributions to this Contract all or a portion of
funds contributed to the Plan unless we agree otherwise in writing or
unless such remittance is to end according to the terms of this
Contract. Contributions may include rollovers of amounts held by
Participants under other tax-qualified retirement plans or funds
transferred from Plan Investment Funds. You may direct that
contributions be allocated to the Contractholder Fixed Account and/or
the Contractholder Variable Account.
4
3.2 PARTICIPANT ACCOUNT SEGMENTS
We may maintain the fixed interest portion of Participant Accounts in
two or more Rate Segments The dollar value of any Segment is equal to
the sum of all Contributions and interest credited to it, less all
Withdrawals and Transfer Payments withdrawn from it.
3.3 CONTRACTHOLDER FIXED ACCOUNT INTEREST RATES
We will notify you in advance of each interest rate we set under this
Contract. Each interest rate is an Effective Annual Rate. Interest is
credited to Contributions on a daily basis.
(a) CURRENT QUARTERLY INTEREST RATE
All Contributions received during the current calendar quarter will be
allocated to the same Rate Segment and will be credited with interest at
the current quarterly interest rate. This rate is set prior to the
beginning of each calendar quarter, and remains in effect on all
Contributions received during that quarter throughout the remainder of
the current calendar year and all of the following calendar year.
(b) RENEWAL INTEREST RATE
After the expiration of a current quarterly interest rates, we will set
a renewal interest rate for that Rate Segment to apply to Contributions
(and interest thereon) that previously were credited that current
quarterly interest rate. We may set one renewal interest rate to
replace each expiring current quarterly interest rate. The renewal
interest rate will be reset by us annually.
(c) CONTRACTUAL ANNUAL MINIMUM INTEREST RATE
Each interest rate set under Section 3.3 for the years shown below will
not be less than the following:
Calendar Year Rate
------------- ----
1998 and each year thereafter 3.0%
3.4 CONTRIBUTIONS FROM PRIOR PRUDENTIAL FIXED ACCOUNT CONTRACTS
If you contribute amounts to the Contractholder Fixed Account from the
fixed rate investment of a predecessor Prudential group annuity
contract, such amounts will be invested within Rate Segments that
correspond to the investment segments or portions, if any, under the
prior contract.
3.5 CONTRACTHOLDER VARIABLE ACCOUNT
Contributions to the Contractholder Variable Account may be made to any
of the Separate Accounts or Subaccounts listed in Appendix A.
5
3.6 REPORTS
We will make a quarterly report to you of the financial activity within
the Contractholder Account.
--------------------------------------------------------------------------------
SECTION 4 - VARIABLE INVESTMENT OPTIONS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
4.1 SEPARATE ACCOUNTS
The Separate Accounts in which this Contract participates, and their
primary investments, are described in Appendix A. Assets held in each
Separate Account, except assets representing Prudential surplus, if any,
are not chargeable with liabilities arising out of any other business of
Prudential. The total market value of the assets held in each Separate
Account at all times will be at least equal to the total reserve
liability required by law for all payments or values which vary in
dollar amount to reflect the investment results of each Separate
Account.
To the extent that applicable laws and regulations permit, investments
for each Separate Account will be free of all limitations applicable to
other investments by Prudential. Prudential restricts use of its
Separate Accounts to certain plans. These plans include those which
meet the requirements for qualification under Section 401 of the Code.
If, at any time, we are informed that your Plan does not meet applicable
requirements, we will (1) notify you and (2) cancel your Contractholder
Variable Account. The dollar value of your canceled account will,
within seven Business Days thereafter, be transferred to you, your
trustee, or your financial institution that you designate. After that,
no Contributions may be made to the Separate Account under this Contract
until the Plan again satisfies applicable qualification requirements.
4.2 SUBACCOUNTS
A Separate Account may consist of Subaccounts. The income, gains and
losses, realized or unrealized, from the assets allocated to a
Subaccount are credited to or charged against each Subaccount, without
regard to other income, gains or losses of the Prudential.
Those Subaccounts currently available under this Contract are listed in
Appendix A. Each Subaccount invests exclusively in shares of a
corresponding fund or a portfolio of securities. Shares of a fund are
purchased and redeemed for a Subaccount at their net asset value. Any
amounts of income, dividends and gains distributed from the shares of a
fund are reinvested in additional shares of that fund at net asset
value.
The dollar amounts of values and benefits of this Contract provided by a
Separate Account vary as a function of the investment performance of the
Subaccounts. You bear the investment risk for Subaccount value in the
selected Subaccounts.
6
4.3 VOTING RIGHTS
Certain Separate Accounts hold securities that have voting rights. We
normally exercise these rights. However we reserve the right to solicit
Contractholders for instruction as to how to vote some or all of the
securities in these Accounts.
4.4 MODIFICATION OF SEPARATE ACCOUNTS AND SUBACCOUNTS
We may from time to time change material features of, or close, certain
Separate Accounts or Subaccounts. Any changes will be made only if
permitted by applicable law and regulations. Also, when required by
law, we will obtain the approval of Contractholders of the changes and
the approval of any appropriate regulatory authority.
For example, we may combine Separate Accounts or Subaccounts, or provide
additional Subaccounts, transfer part or all of the assets of a Separate
Account or Subaccount to another Separate Account of Subaccount, make
any changes necessary to comply with, or obtain and continue any
exemptions from the Investment Company Act of 1940 (the 1940 Act), and
make any other necessary technical changes to this Contract to conform
with any action this provision permits us to take.
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SECTION 5 - TRANSFER PAYMENTS
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5.1 TRANSFER PAYMENTS TO PLAN INVESTMENT FUNDS
You may, pursuant to elections by Participants, subject to any
restrictions in the Plan, direct us to make Transfer Payments from the
Contractholder Fixed Account or Variable Accounts to any Plan Investment
Fund made available under the Plan. Transfers will be made under the
terms of Section 5.1(a) and 5.1(b).
Prudential may, upon notice to the Contract-Holder and Participants,
limit the frequency of Transfer Payments. The action will take effect
on the date of the notice. In the event that a Participant Transfer is
made as a result of a communication by the Contractholder, Employer,
agent or broker to the Participant, which communication in Prudential's
reasonable judgment advised Participants to transfer or withdraw their
funds held under this Contract, the Transfer will be treated as a
Contractholder Withdrawal under Section 6.4. If such communication is
not provided to Prudential upon written request, Prudential reserves the
right to consider the communication as one which advises Participants to
transfer or withdraw their funds held under this Contract.
(a) DIRECT TRANSFERS TO A COMPETING FUND
Transfer Payments directly between the Contractholder Fixed Account
under this Contract and a Competing Fund as defined in Section 1.4
may not be made without Prudential's consent.
7
(b) INDIRECT TRANSFERS TO A COMPETING FUND
Indirect transfers between the Contractholder Fixed Account under
this Contract and a Competing Fund may be made, provided the amount
to be transferred is first transferred to a fund which is not a
Competing Fund and such amount is held in a non-Competing Fund for a
period of at least 90 days before being transferred to a Competing
Fund. Amounts transferred from the Contractholder Fixed Account to
a non-Competing Fund may be transferred back into the Contractholder
Fixed Account after being held in the non-competing fund for at
least 90 days.
In the event of unusual volatility in the financial markets,
Prudential may, in its discretion, eliminate or reduce the 90-day
restriction of this Section 5.1(c) for all Contractholders within
this class of contracts. The 90-day provision may be prospectively
reinstated by Prudential upon written notice to the Contractholder.
We reserve the right, upon 30 days notice and in our sole discretion, to
determine whether any investment option under the Plan is or becomes a
Competing Fund.
5.2 TRANSFER PAYMENT TERMS
Transfer Payments will be made from the Contractholder Fixed Account and
the Contractholder Variable Account. Transfer payments from the
Contractholder Fixed Account will be made on a pro rata basis from all
Rate Segments. Each payment will be in full settlement of our liability
for the Transfer Payment. Transfer Payments from the Contractholder
Fixed Account will be effective on the Business Day we receive the
Transfer Request in Good Order. Transfer Payments from the
Contractholder Variable Account will be at the Unit Value of the
applicable Subaccount(s) at the close of the Business Day we receive the
Transfer Request in Good Order. You agree to provide for the
recordkeeping of investment funds available under the Plan on a
Participant-level basis, and to furnish us with such information as we
may reasonably require in connection with Transfer Requests. We reserve
the right to monitor the Participant-level investment activity in order
to enforce these transfer provisions. We will notify you immediately
upon receipt of a Transfer Request that is inconsistent with the
Transfer Payment conditions then in effect.
We may, upon notice to you, limit the frequency of Transfer Payments.
This action will take effect on the date of the notice. Any such limit
will allow transfers as least as frequently as quarterly.
8
--------------------------------------------------------------------------------
SECTION 6 - WITHDRAWALS
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--------------------------------------------------------------------------------
6.1 WITHDRAWALS
You may make Withdrawals from the Contract. Withdrawals from the
Contractholder Fixed Account for purposes listed in Sections 6.2 and 6.3
will not be subject to the market value adjustment described in Section
6.5. However, we may apply this adjustment if, at the time you request
the Withdrawal, the terms of your Plan are materially different from the
terms or manner of administration in effect on this Contract's effective
date, and such amendment or change adversely affects our rights or
liabilities under this Contract. Withdrawals from the Contractholder
Fixed Account will be made on a pro-rata basis from all Rate Segments
applicable to a Participant under the Contract.
Payment to the Participant ordinarily will be made within seven days of
our receipt of a properly completed payment request. If any Withdrawal
payment under this section is not made within 10 Business Days, interest
on the delayed payment will be credited (starting as of the first day
following receipt of the Withdrawal request) at the rate applicable to
new contributions under Section 3.3 on the date the Withdrawal request
is received.
If more than one employer participates in the Plan, and Contributions
are discontinued for one employer, Withdrawals of funds attributable to
that employer may be made under any option available within this
Section.
You may make Withdrawals to pay expenses of the Plan. Such Withdrawals
will not be subject to any market value adjustment.
6.2 WITHDRAWALS FOR BENEFIT PAYMENTS
We will make payments to the Contractholder to provide benefits
permitted under the terms of the Plan. Such benefit payments may be
made for reasons of a Participant's retirement, termination of
employment, death, disability, hardship, loans, or in-service withdrawal
after age 59 1/2. Benefits may also include such other payments made
pursuant to the Plan provisions as agreed to by us in accordance with
our existing administrative practices. The amount of a benefit payment
will be the amount certified by you as necessary to fulfill a benefit
payment request of a Participant. You agree to supply us with
documentation to support benefit payments on request. We will also make
distribution payments consistent with the terms of the Plan relating to
the minimum required distribution provisions of Sections 401(a)(9)
and/or 457(d) of the Code, as applicable. Loans made available to a
Participant under this Contract will be made in accordance with the
terms provided in the Plan. Prudential will administer loans in
conformity with the Code and ERISA.
9
With respect to amounts invested in the Contractholder Fixed Account, if
permitted by the Plan, we will make payments to you to provide for
Participant requests for payments of after-tax contributions. For each
Participant request for a payment of after-tax contributions, you will
inform us of the amount that comprises one-third of the Participant's
entire interest in after-tax contributions held under this Contract as
of the first day of the year. The lesser of such amount or the amount
of the request will be paid under this Section; any excess of the
request over one-third of the Participant's interest under this Contract
will be paid under Section 6.4. "After-tax" means employee
contributions made to the Plan which were, when made, subject to federal
income taxes.
6.3 WITHDRAWALS AT TERMINATION OF CONTRACT
You may, in conjunction with a termination of the Contract, make a
Withdrawal of the balance from the entire Contractholder Fixed Account
over a four-year period, less applicable Deferred Sales Charges
described in Section 11. During the four-year payout period, interest
will be added to the Contractholder Fixed Account at the end of each day
on the amount of the Contractholder Fixed Account at the end of the
preceding day at an Effective Annual Rate determined on the Withdrawal
Date. This rate is determined by multiplying each Rate Segment by the
interest rate that applies to that segment, adding the products,
dividing the sum by the total dollar amount of all segments and
subtracting 0.50%. In no event will the interest paid under this
provision be less than 3.0%.
We will pay one-fifth of the balance of the Contractholder Fixed Account
within 90 days of the Withdrawal Date. We will pay one-fourth of the
Contractholder Fixed Account as of the first anniversary of the
Withdrawal Date on the first Business Day following the first
anniversary of the Withdrawal Date. If payments are over a period of
greater than two years, subsequent payments will be made on the first
Business Day following the anniversary of the Withdrawal Date, with each
such payment substantially equal in amount to the previous payment. We
will pay the entire balance of the Contractholder Fixed Account on the
first Business Day following the fourth anniversary of the Withdrawal
Date. We will make all payments to you or to any institution or account
you designate. We will make all payments from the Contractholder
Variable Account to you or to an institution or account you designate.
We will usually pay the entire balance of the Contractholder Variable
Account within seven Business Days after receipt of a Good Order request
for a Withdrawal at termination of the Contract. However, we can
postpone such payments if:
1. the New York Stock Exchange is closed, other than customary
weekend and holiday closing, or trading on the exchange is
restricted as determined by the Securities and Exchange
Commission (SEC)
2. the SEC permits, by an order, the postponement for the protection
of Contractholders
3. the SEC determines that an emergency exits that would make the
disposal of securities held in the Contractholder Variable
Account, or the determination of their value, not reasonably
practicable.
You may also elect to make a withdrawal at Contract termination under
Section 6.4.
10
6.4 WITHDRAWALS SUBJECT TO A MARKET VALUE ADJUSTMENT
Withdrawals from the Contractholder Fixed Account that are not governed
by the provisions of Sections 6.2 and 6.3 may be made at any time. If
the amount withdrawn under this paragraph in any calendar year exceeds
$5 million, the Withdrawal may be paid in up to five substantially equal
quarterly payments. The first payment will be made within 10 Business
Days of our receipt of your written request in Good Order. A separate
market value will be calculated for each quarterly Withdrawal. During
the quarterly Withdrawal period, the unpaid amounts will be credited
interest at the rate in effect under Section 3.3 of the Contract, less a
daily risk charge of one-half of one percent annually.
The amount withdrawn under this Section shall be equal to the Withdrawal
request decreased by the market value adjustment (MVA), and reduced by
any applicable deferred sales charges as described in Section 11. The
market value adjustment will be applied before the deduction of any
applicable deferred sales charge.
6.5 MARKET VALUE ADJUSTMENT FORMULA
The market value of the amount withdrawn from the Contractholder Fixed
Account in accordance with Section 6.4 will be calculated using the
formula described in this paragraph. A separate market value adjustment
is determined for each Rate Segment. The interest rate applicable to
each such Rate Segment is compared to the interest rate credited for new
Contributions in the current quarter.
The market value adjustment for a Rate Segment is calculated by
subtracting the interest rate for new Contributions from the interest
rate credited to that Rate Segment and multiplying that result by a
factor of 3.0. In no event will the market value adjustment exceed
0.0%.
Each market value adjustment is then applied to the dollars withdrawn
from the corresponding Rate Segment. The market value of the amount
withdrawn from the Contractholder Fixed Account is equal to the sum of
the market values of the amount withdrawn from each Rate Segment. The
market value adjustment factor may be changed in accordance with Section
9.2.
In the event that a Participant Withdrawal is made as a result of a
communication of the Contractholder or Employer received by the
Participant, which communication in Prudential's reasonable judgment
advises Participants to transfer or withdraw their funds held under this
Contract, the Withdrawal will be treated as a Withdrawal at Contract
termination under Section 6.4. If communication to a Participant is not
provided to Prudential upon written request, Prudential reserves the
right to consider the communication as one which advises Participants to
transfer or withdraw their funds held under this Contract.
11
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SECTION 7 - FORMS OF BENEFITS
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7.1 GENERAL
You may request that we pay amounts that are withdrawn for benefit
payments under Section 6.2 in any of the following forms, to the extent
not contrary to the terms of the Plan:
(a) a lump sum;
(b) any annuity form described in Schedule A;
(c) any other settlement method or combination of methods to which
we consent.
7.2 TERMS OF PAYMENT OF ANNUITIES
If, a Participant, elects an annuity pursuant to Section 7.1(b), the
amount withdrawn will be applied to purchase an annuity in accordance
with Schedule A. The monthly annuity payment is determined from the
schedule of purchase rates for that annuity. Any payments made in
annuity form will be governed by the terms of the annuity certificate.
7.3 CERTIFICATES
A Certificate will be provided for each Annuitant, summarizing the
amount and the terms of such annuity. Certificates are not a part of
this Contract.
7.4 MINIMUM DEATH BENEFIT
Any lump sum death payment from this Contract made to a Beneficiary
within one year of the Participant's death will be equal to the
greatest of : (1) the Participant's Account value as of the date
Prudential receives a death benefit payment request in Good Order; (2)
the sum of all contributions made to the Participant's Account less
withdrawals, transfers and charges; and (3) the greatest of the
Participant's Account value calculated on every third anniversary of the
first contribution made on behalf of the Participant less any
withdrawals, transfers and charges under the Contract.
12
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SECTION 8 - TERMINATION OF CONTRACT
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8.1 SIXTY DAY TERMINATION
This Contract may be terminated by either party by providing the other
party with 60 days written notice. The Contract termination date will
be established as the first Business Day occurring 60 calendar days
following receipt of the notice of termination. The parties may agree
to a different termination date.
8.2 TERMINATION FOR CAUSE
We may terminate this Contract for cause by giving you 30 days written
notice. Causes for our termination are:
(a) You fail to meet any of your obligations under this Contract
or under any related agreement.
(b) The Plan is no longer a qualified plan under the Code.
(c) The Plan is terminated.
(d) You no longer have any obligations under the Plan.
(e) You, your agent, or your trustee take an action which, in
our reasonable determination, materially and adversely
affects our rights and obligations under this Contract.
(f) You reject a change or an amendment to this Contract
proposed by us under Section 9.1 or 9.2.
(g) You distribute communication material to Plan Participants
that can reasonably be expected to materially decrease the
amounts directed to this Contract or materially increase the
amounts of Withdrawals or Transfer Payments from this
Contract.
8.3 EFFECT OF TERMINATION
You may make no further Contributions or Transfer Payments after a
contract termination date is established, unless we agree otherwise.
Death benefits and previously purchased annuities will continue to be
paid. Benefit Withdrawals, including the purchase of annuities if we
agree, may be made from the Contractholder Fixed Account after the
contract termination date. Benefit withdrawals from the Contractholder
Variable Account will continue to be made after the
13
contract termination date. The Contractholder Fixed Account will be
distributed under the terms of Section 6.3 unless you elect to have it
distributed under the terms of Section 6.4.
Withdrawals upon termination are subject to any limitations or
restrictions that appear elsewhere in this Contract.
8.4 PARTIAL CONTRACT TERMINATION
If, through a divestiture or other corporate restructuring, employees of
an employer cease to be eligible to participate in the Plan, you may
partially terminate this Contract and request that we issue a new
contract to a successor plan. Any such contract is subject to any terms
and conditions mutually agreed to. Section 8.3 applies to amounts
payable in connection with a partial termination.
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SECTION 9 - CHANGES
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9.1 CHANGES BY AGREEMENT
This Contract may be changed at any time by agreement between the
parties. A change will be effective after each party receives notice of
such change. Any change made to this Contract will be consistent with
applicable state and federal law.
9.2 CHANGES BY PRUDENTIAL
We may change this Contract if we, in our discretion, deem it
appropriate to conform to the requirements of any law or regulation.
We reserve the right to change the method for determining the market
value adjustment upon 30 days prior written notice to you and to
periodically update the annuity purchase rates.
No modifications or amendments to this Contract may affect the terms of
any annuity purchased prior to the effective date of the modification or
amendment. The annuity purchase rates will not be modified or amended
(i) during the first year that the Contract is in effect, or (ii) more
than once in any 12 month period; and (iii) may not be less favorable to
you than the annuity purchase rates we offer to any Contractholder in
the same class as this Contract.
9.3 PERSONS EMPOWERED TO ACT FOR US
No agent or other person except one of the following Prudential officers
may change this Contract or bind us.
Chairman of the Board and Actuary
Chief Executive Officer Associate Actuary
President Secretary
Vice President Assistant Secretary
Second Vice President
14
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SECTION 10 - GENERAL TERMS
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10.1 COMMUNICATIONS
All communications under this Contract shall be in writing. They will
be addressed to you at your principal office, or at such other address
as you may communicate to us. Communications to us should be addressed
to Prudential, c/o Prudential Investments, 30 Scranton Office Park,
Scranton, Pennsylvania 18507-1789, or at such other address as we may
communicate.
10.2 PLACE OF PAYMENT
All payments to us under this Contract shall be payable at our office
described above or at an address or to a representative we specify by
notice to you.
10.3 INFORMATION - RECORDS
You agree to furnish all information which we may reasonably require for
the administration of this Contract. You also agree to provide to us
any applicable administrative agreements pertaining to recordkeeping or
servicing of Participant Accounts. We will not be liable for the
fulfillment of any obligations in any way dependent upon information
unless and until we receive the information in a form satisfactory to
us, which includes receiving information in Good Order where
appropriate. Information furnished to us may be corrected for
demonstrated errors unless we have already acted to our prejudice by
relying on the information. Except for the corrections, information
furnished to us will be regarded as conclusive.
10.4 MISSTATEMENTS
If there has been a misstatement as to any annuitant, we will not pay
more than that which should be paid based on the correct information.
Any overpayment will, together with interest, be deducted from future
payments. Any underpayment will, together with interest, be paid
immediately upon receipt of the corrected information. The interest
rate credited or charged under this section will be 3.0%.
10.5 BENEFICIARY
You may, if permitted by law, direct that we pay any benefit under this
Contract directly to the Beneficiary of a Participant or other
designated payee. Payments in annuity form will be governed by the
terms of the annuity certificate.
15
10.6 SMALL ANNUITIES AND AMOUNTS; NATURAL PERSONS
To the extent consistent with the terms of the Plan and Code Section
411(a)(11) as applicable, if the total monthly payment from the annuity
that would otherwise be purchased on behalf of any person, or any series
of payments under this Contract, is less than $50, we may, in our
discretion, make a single sum payment in lieu of purchasing such annuity
or making such series of payments. The single sum paid will be equal to
the amount that would otherwise be applied to purchase such annuity.
The single sum paid in lieu of a stream of payments will be equal to the
value of the series of payments discounted at interest from each payment
due date to the date of the single sum payment. The discount interest
rate will be the interest rate in the schedule of annuity purchase rates
used to establish the series of payments.
If the payee is not a natural person and a series of payments is
payable, we may choose to make a payment in one sum.
10.7 DIVISIBLE SURPLUS
The portion, if any, of our divisible surplus accruing under this
Contract will be determined annually by our Board of Directors and
credited to the Contractholder Account as determined by the Board. It
is unlikely that any divisible surplus will accrue upon this Contract.
No annuity under this Contract will be taken into account in the
determination of any divisible surplus to be credited to this Contract.
10.8 LIMIT ON ASSIGNMENT
To the extent applicable law requires, the interests in and payments
from this contract are not transferable nor assignable or subject to the
claims of any creditor. For this purpose, compliance with the terms of
a Qualified Domestic Relations Order as defined in subsection 414(p) of
the Internal Revenue Code will not be considered to be an assignment of
benefits.
10.9 PLAN CHANGES
This Contract applies to the terms of the Plan in effect on the
Effective Date of this Contract. You shall furnish us a copy of the
Plan, any proposed amendment or any change to the Plan, its operation,
or its investment policy, and any communications by you to the
Participants concerning investments available through the Plan. . If we
notify you within 60 days of receipt of a proposed Plan amendment,
change in Plan operation, or change in Plan investment policy that such
change, in our reasonable judgment, will adversely affect the financial
experience of Prudential or other Contractholders in this class of
Contracts, the change will be effective only upon agreement between the
parties.
10.10 ENTIRE CONTRACT
This document constitutes the entire Contract between us.
16
10.11 GOVERNING LAW
This Contract will be construed according to the laws of the
jurisdiction set forth on the cover page.
10.12 INTEREST ON BENEFIT PAYMENTS
Any benefit payment we make under Section 6.2 that is not made within 10
Business Days of the receipt in Good Order of a request for such payment
will be credited with interest in the same rate and manner as provided
in Section 3.3 or as required by state insurance or Federal securities
law. We reserve the right to credit interest on benefit payments paid
within 10 Business Days for all Contractholders within this class of
contracts.
10.13 CONTRACTHOLDER
We will normally conduct business only with you. We will be entitled to
rely on any acts or omissions by you pursuant to the terms of this
Contract.
Either party may, from time to time, delegate to an agency or trustee
certain administrative powers and responsibilities under this Contract.
No party is bound to recognize any such delegation until it has received
notice of it. The notice must specify those powers and responsibilities
and include evidence of acceptance by the agency. On and after the date
of receipt of the notice, the notified party will deal with the agency
with respect to those powers and responsibilities and will be entitled
to any action taken or omitted by the agency with respect thereto in the
same manner as if dealing with the party to the Contract. Either party
may give notice to the other party of a subsequent delegation to another
agency of specified powers and responsibilities.
10.14 EXCLUSIVE BENEFIT
Under this contract it is impossible, at any time prior to the
satisfaction of all liabilities with respect to Participants and their
beneficiaries under the contract, for any part of the corpus or income
to be used for, or directed to, purposes other than for the exclusive
benefit of the Participants or their beneficiaries.
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SECTION 11 - DEFERRED SALES CHARGES
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11.1 DEFERRED SALES CHARGES
Withdrawals made under Section 6.3 or 6.4 are subject to a Deferred
Sales Charge. The amount of a Withdrawal subject to a Deferred Sales
Charge shall be the amount requested less the Deferred Sales Charge
determined from the following table. However, if the entire dollar
amount held on behalf of a Participant under the Contractholder Fixed
Account is withdrawn, the amount paid will not be less than the
Contributions made into that option for the Participant reduced by
previous Withdrawals and transfers.
If the Contractholder request a partial withdrawal under Section 6.3 or
6.4, a deferred sales charge is assessed only against those assets
withdrawn by reason of a specified group, classification or type of
employee leaving the Plan as a result of a corporate merger,
restructuring, or other comparable employer-initiated event.
Xxxxxxxxxxx made in the years indicated, counting from the day an amount
was contributed on behalf of a Participant under this or a predecessor
Prudential Contract, will have the following Deferred Sales Charge,
measured as a percentage of Contributions withdrawn:
0 - 1 year 5%
1 - 2 years 4%
2 - 3 years 3%
3 - 4 years 2%
4 - 5 years 1%
After 5 years 0%
Deferred sales charges do not apply to amounts withdrawn in excess of
the Participant's Contributions under this Contract. No charge is
imposed upon rollover contributions, contributions withdrawn due to the
Participant's termination of employment, death, financial hardship or
disability retirement.
Withdrawals from the Contractholder Fixed Account will be made on a
pro-rata basis from all Rate Segments applicable to a Participant under
the Contract.
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APPENDIX A - SEPARATE INVESTMENT ACCOUNTS
Contributions paid to the Contractholder Variable Account may be invested in the
Subaccounts of the Prudential Discovery Select Group Variable Contract Account
("the Discovery Account"). This variable separate account, sponsored by
Prudential Insurance Company of America, is currently divided into 22
Subaccounts. Any income and realized or unrealized gains and losses in a
Subaccount are credited to or charged against that Subaccount without regard to
income, gains, or losses in other Subaccounts.
Eleven Subaccounts invest in portfolios of the Prudential Series Fund. These
portfolios include Money Market, Government Income, Diversified Bond, Equity,
High Yield Bond, Stock Index, Equity Income, Prudential Xxxxxxxx, Global,
Conservative Balanced and Flexible Managed Portfolios. The Subaccounts of the
Discovery Account also invest in other underlying Fund portfolios. These
include the AIM V.I. Growth and Income Fund, the AIM V.I. Value Fund, the Janus
Aspen Series Growth Portfolio, the Janus Aspen Series International Growth
Portfolio, the MFS Emerging Growth Series, the MFS Research Series, the OCC
Accumulation Managed Portfolio, the OCC Accumulation Small Cap Portfolio, the X.
Xxxx Price Equity Income Portfolio, the X. Xxxx Price International Stock
Portfolio, and the Warburg Pincus Post-Venture Capital Portfolio.
The investment strategy of each Subaccount is described in the Prospectus. The
choice of Subaccounts may change. Any such change will be described in the
Prospectus.
The administrative charge for each Subaccount in the Discovery Account will not
exceed an effective annual rate of 1.10%. This charge is deducted daily from
the assets in each of the Subaccounts. This charge is for the issuing of the
Contract, establishing and maintaining records, and providing reports to the
Contractholder and the Participants. Prudential may impose a lower
administrative charge for certain classes of contractholders that meet minimum
size requirements (for example, assets exceeding $25 million or plans with 500
or more Participants). In addition, Prudential may impose a lower
administrative charge for any contractholder in Prudential's MEDLEY group
annuity program for whom Prudential is providing administrative services as of
June 1, 1997 that exchanges their MEDLEY contract(s) for a Discovery Select
contract to reflect the reduced set-up, recordkeeping and administrative costs
incurred by Prudential. Any reductions in administrative charges will be
available on a uniform basis to similarly-situated contractholders.
Mortality risk and expense charges are deducted daily at an effective annual
rate of not more than 0.15% of the assets held in the Subaccounts. Participants
selecting from any of the Subaccounts in the Discovery Account must receive a
Prospectus prior to investing.
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SCHEDULE A - FORMS OF ANNUITY WHICH MAY BE PURCHASED
FORM OF PAYMENT PAYABLE APPLICABLE SCHEDULE
----------------------- -------------------
1. Life - Payment Certain Annuity. Use Schedule B
2. Life - Contingent Annuity. Use Schedule C
3. Payment Certain Annuity. Use Schedule D
We may provide monthly amounts of annuity larger than those shown in the
following schedules for annuities purchased during any period we specify.
Annuity purchase rates for other forms of annuity to which we consent will be
furnished on request.
The annuity purchase rates under this contract will be no less favorable to a
Participant than used under other Prudential group annuity contracts of this
Class.
The forms of annuities which may be purchased are fixed dollar annuities which
are guaranteed by Prudential. The amount of fixed annuity payments depends only
on the form and duration of the annuity selected, the dollar amount applied to
purchase the form of annuity, the age of the Annuitant and the annuity purchase
rates in Schedules B, C and D. The amount of the fixed annuity payments does
not depend on the performance of the Discovery Account or any Subaccount.
AVAILABLE FORMS OF ANNUITIES
Life annuities and Payment Certain annuities are available under this Contract.
A Life form of annuity is one payable at least during the lifetime of the person
(referred to as the "Annuitant") for whom it was purchased. Depending on the
existence and nature of any payment payable after the death of the Annuitant, a
Life annuity will be either a Life-Payment Certain or a Life-Contingent annuity.
A Payment Certain form of annuity may be payable for a period less than the
lifetime of the Annuitant. The terms of payment for each form of annuity are
described below.
LIFE-PAYMENT CERTAIN ANNUITY:
The first monthly payment of a Life-Payment Certain annuity is payable
as of the date the annuity is purchased. Monthly payments are payable
on the first day of each month thereafter throughout the Annuitant's
remaining lifetime. If the Annuitant dies before the number of annuity
payments made equals the number of Payments Certain applicable to him,
monthly annuity payments will continue to be made to the Annuitant's
Beneficiary until the total number of payments is so equal. The number
of Payments Certain is established when the annuity is purchased and may
be 60, 120, 180, 240, or any other number accepted by Prudential.
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LIFE-CONTINGENT ANNUITY:
The first monthly payment of a Life-Contingent annuity is payable on the
date the annuity is purchased. Monthly payments are payable on the
first day of each month thereafter throughout the Annuitant's remaining
lifetime. If the Annuitant dies before the death of his Contingent
Annuitant, monthly payments will continue to the Contingent Annuitant
throughout the Contingent Xxxxxxxxx's remaining lifetime. The amount of
each monthly Contingent Annuity payment will be a percentage of the
monthly annuity payment payable before the Annuitant's death. The
percentage is established when the annuity is purchased and may be
33 1/3%, 50%, 66 2/3%, or 100%, or any other percentage we accept.
PAYMENT CERTAIN ANNUITY:
The first monthly payment of a Payment Certain annuity is payable on the
date the annuity is purchased. Monthly payments are payable on the
first day of each month thereafter until the total number of Payments
Certain specified when the annuity was purchased has been paid. The
number of payments may be 60, 120, 180, 240 or any other number we
accept. If the Annuitant dies before his Beneficiary, monthly annuity
payments will continue to be made to the Beneficiary until the number of
payments specified by the Annuitant has been made.
Other forms of annuity may be provided with our consent.
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ANNUITY SCHEDULES
The schedules show the monthly amount of annuity purchased per $10,000, after
deduction of any taxes on annuity premiums that may apply.
The amounts of annuity for other ages of the Annuitant or Contingent Annuitant
will be provided upon request.
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SCHEDULE B - LIFE - PAYMENT CERTAIN ANNUITY (120 PAYMENTS CERTAIN)
MONTHLY AMOUNT
If the date the annuity is purchased is in:
AGE 1998 1999 2000 2005
--- ---- ---- ---- ----
60 $34.89 $34.75 $34.61 $33.90
65 39.86 39.67 39.49 38.59
70 46.17 45.93 45.70 44.55
SCHEDULE C - LIFE - CONTINGENT ANNUITY
MONTHLY AMOUNT
--------------
If Annuitant and Contingent Annuitant have same date of birth.
If the date the annuity is purchased is in:
AGE 1998 1999 2000 2005
--- ---- ---- ---- ----
If specified percentage to Contingent Annuitant is 100%:
60 $29.87 $29.77 $29.66 $29.15
65 33.64 33.49 33.35 32.66
70 38.74 38.54 38.34 37.40
If specified percentage to Contingent Annuitant is 50%:
60 $32.36 $32.23 $32.10 $31.48
65 36.87 36.70 36.53 35.71
70 42.97 42.74 42.50 41.37
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SCHEDULE D - PAYMENT CERTAIN ANNUITY
MONTHLY AMOUNT
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If the date the annuity is purchased is in:
NUMBER OF
PAYMENTS
CERTAIN 1998 1999 2000 2005
------- ---- ---- ---- ----
60 $160.49 $160.49 $160.49 $160.49
120 84.21 84.21 84.21 84.21
180 58.87 58.87 58.87 58.87
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