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000 Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx Xxxxx, XX 00000
QUALIFIED PENSION PLAN RIDER
This rider is a part of the Contract to which it is attached by Pacific Life &
Annuity Company ("PL&A").
The Contract is hereby modified as specified below in order to comply with the
requirements for Qualified Retirement Plans, as described in Section 401(a)(2)
of the Internal Revenue Code of 1986 (the "Code") as amended.
THE PROVISIONS OF SECTIONS 1-9 OF THIS RIDER SHALL TAKE EFFECT ONLY IF THE
ANNUITANT IS, OR BECOMES, THE OWNER OF THE CONTRACT (THE "OWNER").
DEFINITIONS
ANNUITANT - is an individual named to receive periodic annuity payments
purchased under this Contract.
ANNUITY START DATE - is the date you choose to have PL&A begin periodic annuity
payments to the Annuitant. The Annuity Start Date may be no later than April 1
of the calendar year following the year in which the Annuitant reaches age
70 1/2.
DESIGNATED BENEFICIARY - is any individual designated as a beneficiary under the
Plan by the Annuitant. If a person other than an individual (or a trust that
satisfies the conditions stated in proposed regulations section
1.401 (a)(9)-1,D-5 is designated a Beneficiary, or if the plan permits any
person to change the Annuitant's beneficiaries after his or her death, other
than a designation made by the surviving spouse for distributions after the
spouse's death, the Annuitant will be treated as having no Designated
Beneficiary.
PLAN - means the qualified retirement plan under the Code pursuant to which this
Contract is issued.
REGULATION - means a U.S. Treasury regulation interpreting the Code.
YOU - means the Owner of the Contract.
The provisions of this rider will control if in conflict with those of the
Contract. Notwithstanding any provisions of the Contract to the contrary:
1. Automatic Form of Payment at the Annuity Start Date.
If the Annuitant is married at the Annuity Start Date and an optional
form of benefit is not timely selected as of such date, payments will
be made in the form of a Joint and 50% Survivor Annuity, with the
Annuitant's spouse as the joint Annuitant. Under this form, payments
will be made during the lifetime of the Annuitant and, following the
Annuitant's death, payments equal to 50% of the original payment
amount will continue to the spouse for life.
2. Required Beginning Date and Minimum Distribution Requirements
In accordance with the requirements of the Code, distribution of the
entire interest should be made not later than the April 1 following
the close of the calendar year in which the Annuitant attains age
70-1/2. (the "Required Beginning Date".)
Alternatively, if distribution of the entire interest commences not
later than the Required Beginning Date, such distribution may be made
in equal or substantially equal amounts, in annual or more frequent
installments, over
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(a) the Annuitant's life or the lives of the Annuitant and his or her
Designated Beneficiary, or
(b) a period not extending beyond the Annuitant's life expectancy or
the joint and last survivor life expectancy of the Annuitant and
his or her Designated Beneficiary.
The method of distribution selected must also meet the "minimum
distribution incidental benefit" rule of Code Section 401(a)(9) and
proposed Regulation Section 1.401(a)(9)-2. This requires that:
(a) where the Annuitant's only Designated Beneficiary is the spouse,
the minimum amount that must be distributed in a distribution
calendar year is the amount determined under the regular minimum
distribution requirements above in this Section 4.
(b) where non-increasing payments are to be made under an annuity
Contract purchased on or before the Annuitant's Required
Beginning Date and the Annuitant's spouse is not the Designated
Beneficiary, the minimum amount that must be distributed is
determined as follows:
- Period certain annuity without a life contingency: The period
certain may not exceed the maximum period specified in Regulation
Section 1.401 (a)(9)-2, Q&A-5.
- Life annuity: A life annuity on the Annuitant's life which
satisfies the regular minimum distribution requirements satisfies
the "minimum distribution incidental benefit" rule.
- Joint and survivor annuity: The periodic annuity payment to the
survivor under a joint and survivor annuity, may not exceed the
applicable percentage of the annuity payment to the Annuitant, as
provided in proposed Regulation Section 1.401 (a)(9)-2, Q&A-6(b).
- Life annuity with period certain: The distribution must satisfy
the requirements for a single life (or joint and survivor)
annuity as well as for a period certain, as provided in proposed
Regulation Section 1.40 (a)(9)-2, Q&A-6(c).
Only a method of distribution offered by PL&A that satisfies these
conditions can be selected. You must make this selection before the
end of the calendar year in which you attain age 70 1/2.
3. Beneficiary for Death Benefit Proceeds Prior to Annuity Start Date
If the Annuitant dies prior to the Annuity Start Date and is married
at the date of death, the Death Benefit Proceeds will be paid to the
surviving spouse, unless the Annuitant names another beneficiary and
such spouse consents in writing to such designation. Such spouse's
consent must be witnessed by a notary public. For this purpose, the
consent of an individual who was married to the Annuitant at the time
consent was given but is not married to the Annuitant at the date of
death will not be considered the consent of the surviving spouse.
If the Annuitant is not legally married at the date of death, or
designates (as provided above) someone other than the surviving spouse
as the Designated Beneficiary, the Death Benefit Proceeds shall be
paid to the Designated Beneficiary.
4. Payment of Death Benefit
On the death of the Annuitant, payment shall be made in accordance
with the Annuity option provisions described in the Contract or as
provided for by the Plan. However, selection of an annuity option that
does not satisfy the conditions of this Section 4 set out below shall
not be permitted.
(a) Death Before the Annuity Start Date
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If the Annuitant dies before distribution of his or her interest in
the Contract commences, the entire interest must be distributed by
December 31st of the fifth full year which follows the Annuitant's
death unless (i) such interest is paid in equal or substantially equal
installments over a period not exceeding the lifetime or life
expectancy of the Designated Beneficiary, and (ii) payments begin by
December 31st of the calendar year which follows the Annuitant's
death. If the Designated Beneficiary of the Annuitant is the
Annuitant's surviving spouse, the spouse may elect to receive equal or
substantially equal payments over the life or life expectancy of the
surviving spouse commencing at any date prior to the close of the
calendar year in which the deceased Annuitant would have attained age
70 1/2, if later. The surviving spouse may accelerate these payments
at any time, i.e., increase the frequency or amount of such payments.
However, if the spouse elects to receive the entire interest as a lump
sum, such amount must be received by December 31st of the fifth full
year which follows the Annuitant's death.
If the surviving spouse dies before payments begin, subsequent
distributions shall be made as if the spouse had been the Annuitant.
In such event, the rules in this Section 6 apply using the date of
death of the surviving spouse rather than that of the Annuitant.
(b) Death After the Annuity Start Date
If the Annuitant dies after distribution of his or her interest in the
plan has commenced, the remaining interest will be distributed at
least as rapidly as under the method of distribution in effect at the
time of the Annuitant's death.
(c) Trustee Owned Contracts
While this Contract is owned by the trustee of a plan described in
section 401 (a) of the Code, the provisions of this Section may not
apply.
5. Withdrawal or Loan of Annuity Value Before the Annuity Start Date
If the Annuitant is married, withdrawal or loan of all or a portion of
the annuity value prior to the Annuity Start Date will be permitted
subject to the consent of the spouse. Such consent must be in writing
and must be witnessed by a notary public.
If the Annuitant is not married, withdrawal will be permitted subject
to written notice to PL&A that the Annuitant is not married. The term
"Annuity Value" as used in this rider shall mean the appropriate value
described in the Contract that the Contract Owner is entitled to
withdraw or borrow.
6. Nontransferable
No benefits under this Contract may be transferred, sold, alienated,
assigned, discounted, subject to garnishment or execution, or pledged
as collateral for a loan, or as security for the performance of an
obligation or for any other purpose, to any person other than to PL&A,
except as may be provided by a Qualified Domestic Relations Order
within the meaning of Section 414 of the Code.
7. Change of Annuitant
The Owner shall not be permitted to change the Annuitant.
8. Tax Qualification
The Contract as amended by this rider is intended to qualify as part
of a tax-qualified retirement plan, arrangement or contract that meets
the requirements of Code Section 401(a) [and any applicable
regulations relating thereto]. To that end, the provisions of this
rider and the Contract
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(including any other rider or endorsement) are to be interpreted to
ensure or maintain such tax qualification, notwithstanding any other
provision to the contrary.
PL&A reserves the right to amend this rider to comply with future
changes in the Code and any regulations or rulings issued under the
provisions of the Code. PL&A shall provide the Owner of the Contract
with a copy of any such amendment.
SIGNED FOR PACIFIC LIFE & ANNUITY COMPANY,
/s/ Xxxxxxx X. Xxxxxx, /s/ Xxxxxx X. Xxxxx
President and Chief Executive Officer Secretary
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