INDIVIDUAL RETIREMENT ANNUITY CONTRACT
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
FLEXIBLE PREMIUM VARIABLE DEFERRED ANNUITY CONTRACT
This is the entire Contract. This Contract is issued in return for the coverage
under this Contract and the Contributions made to us under this Contract. In
this Contract, "we", "our" and "us" mean Equitable, "you" and "your" means the
Annuitant.
The Annuitant may elect to change the Retirement Date as indicated in Section
1.06 of this Contract.
TEN DAYS TO REVIEW - THE ANNUITANT MAY CANCEL THIS CONTRACT BY MAILING IT TO
EQUITABLE (AT THE ADDRESS SHOWN ON THE DATA PAGES) WITHIN TEN DAYS AFTER RECEIPT
OR RETURNING IT TO THE AGENT FROM WHOM IT WAS PURCHASED. IF THE ANNUITANT DOES
THIS, EQUITABLE WILL REFUND ANY CONTRIBUTION MADE UNDER THE CONTRACT.
ASSETS IN CONNECTION WITH THIS CONTRACT MAY BE HELD IN ONE OR MORE INVESTMENT
DIVISIONS OF THE SEPARATE ACCOUNT MAINTAINED BY EQUITABLE AND MAY INCREASE OR
DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
The term "Separate Account" means the Separate Account No. 301 established by
Equitable and maintained under the laws of the State of New York. Realized and
unrealized gains and losses from the assets of the Separate Account are credited
or charged against it without regard to other income, gains or losses of
Equitable. Assets are put in the Separate Account to support this Contract and
other variable annuity contracts. Assets may be put in the Separate Account for
other purposes, but not to support contracts, policies or other agreements which
are not variable in form.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
0000 XXXXXX XX XXX XXXXXXXX XXX XXXX, XXX XXXX 00000
/s/ Xxxxxxxxxxx X. Xxxxxxx /s/ Xxxxxxx Xxxxxxx
------------------------------------- ---------------------------
Xxxxxxxxxxx X. Xxxxxxx Xxxxxxx Xxxxxxx
President and Chief Executive Officer Senior Vice President,
Secretary and Associate
General Counsel
301-10,000-2002 (FL) Page 1
CONTENTS
PART I DEFINITIONS PAGE 5
PART II THE SEPARATE ACCOUNT AND ITS INVESTMENT DIVISIONS PAGE 8
PART III ANNUITANT'S ACCOUNT PAGE 10
PART IV ANNUITY BENEFITS AND REQUIRED MINIMUM DISTRIBUTION PAYMENTS PAGE 18
PART V GENERAL PROVISIONS PAGE 27
301-10,000-2002 (FL) Page 2
====================================================================================================================================
Please be sure to keep this page with the rest of the Contract.
Equitable Office: The Equitable Life Assurance Society of the United States
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
Processing Office: P.O. Box 2468, GPO
New York, NY 10116
----------------------------------------------------------------------- ------------------------------------------------------------
Annuitant: Xxxx Xxx
0000 Xxx Xxxxxxx Xx.
Xxxxxxx, XX 00000
Contract Date: 06/12/2003
Contract Number: 000-00-0000
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Recordkeeping Fee: $3.75 per calendar quarter
----------------------------------------------------------------------- ------------------------------------------------------------
Available Investment Accounts:
[Guaranteed Rate Accounts High Yield Account
Money Market Account Global Account
Stock Account Growth & Income Account
Government Securities Account Growth Investors Account
Balanced Account Conservative Investors Account
Aggressive Stock Account MFS Emerging Growth Companies Account
EQ Equity 500 Index Account Xxxxxx International Equity Portfolio Account]
Lazard Small Cap Value Account
Equitable reserves the right to add or remove Investment Accounts in accordance with Section 3.01.
================================================================= ==================================================================
301-10,000-2002 (FL) Page 3
TABLE OF GUARANTEED VALUES
ISSUE AGE: 35 MALE
ANNUAL CONTRIBUTION: $1,000
Number of Years Guaranteed Guaranteed Paid Up Monthly
Since First Contribution Cash Value Annuity at Age 65*
1 999.66 4.87
2 2,000.00 16.54
3 3,000.00 27.86
4 4,000.00 38.86
5 5,000.00 49.53
6 6,013.60 59.90
7 7,123.70 69.96
8 8,267.10 79.73
9 9,444.80 89.21
10 10,657.83 98.42
11 11,907.25 107.36
12 13,194.16 116.04
13 14,519.67 124.47
14 15,884.95 132.65
15 17,291.19 140.59
16 18,739.61 148.30
17 20,231.49 155.79
18 21,768.12 163.06
19 23,350.85 170.12
20 24,981.07 176.97
25 33,895.74 208.35
27 (Age 62) 37,847.26 219.66
30 (Age 65) 44,230.30 235.42
The Tables illustrate minimum Guaranteed Values and assume a hypothetical $1,000
Contribution made annually on the Contract Date. The Guaranteed Cash Value Table
reflects a quarterly Annuitant Recordkeeping fee of $7.50 (see Section 3.08) and
a premature Guarantee Withdrawal Charge (see Section 1.05) of up to 7% of the
Account Balance. The Tables assume that 100% of all Contributions are allocated
to and remain in the Guaranteed Rate Account.
Your actual Guaranteed Values may differ from those shown above, depending on
the level and frequency of your Contributions and the Annuitant Recordkeeping
fee applicable.
*Assumes Full Cash Refund Annuity.
301-10,000-2002 (FL) Page 4
PART I - DEFINITIONS
SECTION 1.00 ANNUITY
The term "Annuity" means an individual retirement annuity meeting the
requirements of Section 408(b) of the Internal Revenue Code.
SECTION 1.00A ANNUITANT
"Annuitant" means the individual shown on the Data Pages, or any successor
Xxxxxxxxx.
SECTION 1.01 APPLICABLE TAX CHARGE
The term "Applicable Tax Charge" means a charge that we determine which is
designed to approximate certain taxes that may be imposed on us, including, but
not limited to, premium taxes which may apply in the Annuitant's state. No
premium taxes apply to Washington Contracts.
SECTION 1.01A BUSINESS DAY
"Business Day" means any day the New York Stock Exchange is open for trading and
generally ends at 4:00 pm., Eastern Time. A Business Day does not include a day
we choose not to open due to emergency conditions. We may also close early due
to emergency conditions.
SECTION 1.02 CASH VALUE
The term "Cash Value" means an amount equal to the sum of the Annuitant's
Account Balances, less any charges that applies to any of the Annuitant's
Accounts.
SECTION 1.03 CODE
The term "Code" means the Internal Revenue Code of 1986, as now or hereafter
amended or any corresponding provisions of prior or subsequent United States
revenue laws. References to the "Code" in this Contract include references to
applicable Federal income tax regulations.
SECTION 1.04 CONTINUATION BENEFICIARY
The term "Continuation Beneficiary" means an individual beneficiary who elects
to keep the Contract in force following the death of the Annuitant for the
purpose of receiving required minimum distributions after the death of the
original Annuitant in accordance with Part IV.
SECTION 1.04A CONTRACT
"Contract" means this Contract including the Data Pages and any Riders or
Endorsements.
301-10,000-2002 (FL) Page 5
SECTION 1.04B CONTRACT DATE
"Contract Date" means the date shown in the Data Pages.
SECTION 1.04C CONTRIBUTION
"Contribution" means a payment made to us under the Contract.
SECTION 1.05 DEFINITIONS RELATING TO THE GUARANTEED RATE ACCOUNT
GUARANTEE: Each Contribution allocated to the Annuitant's Guaranteed Rate
Account will be assigned to one or more of a group of Guarantees, each of which
will be distinguished by:
(i) its Contribution Quarter, as defined below;
(ii) its Duration, as defined below; and
(iii) its Guarantee Rate, as defined below.
CONTRIBUTION QUARTER: The Contribution Quarter for a particular Guarantee is
that calendar quarter during which Annuitant Contributions may be assigned to
that Guarantee. After the expiration of the Contribution Quarter for a
Guarantee, no further Contributions may be assigned to that Guarantee.
DURATION: The Duration for a Guarantee commences on the first day of the
Contribution Quarter for that Guarantee and ends on the last day of a calendar
quarter that is specified at the time the applicable Guarantee Rate (as defined
below) is established, as described below.
GUARANTEE ACCRUED VALUE: The Annuitant's accrued value with respect to a
particular Guarantee will be equal to the sum of the Annuitant's Contributions
assigned to that Guarantee, including transfers, plus the amount of interest
credited with respect to that Guarantee, minus the sum of the withdrawals made
with respect to that Guarantee, including transfers and Guarantee Withdrawal
Charges, defined below, and any applicable recordkeeping fee, as set forth in
Section 3.08. Such Accrued Value will be credited with interest daily at an
annual effective rate of interest equal to the Guarantee Rate.
GUARANTEE RATE: The Guarantee Rate for a particular Guarantee is the effective
annual rate of interest applicable throughout the Duration of that Guarantee.
The open period for such a Guarantee Rate will be from the date it is declared
through the last day of the Contribution Quarter or until Equitable establishes
a new Guarantee Rate during such Contribution Quarter. Equitable will establish
and announce the first Guarantee Rate of a given Contribution Quarter at least
10 days prior to the commencement of the Contribution Quarter. Equitable
reserves the right, however, to change the Guarantee Rate during a Contribution
Quarter. Each Contribution or transfer shall be credited with the Guarantee Rate
in effect on the date of its receipt and shall not be affected by any subsequent
change in the Guarantee Rate offered by Equitable. The Guarantee Rate will never
be less than 3% per annum.
GUARANTEE WITHDRAWAL CHARGE: Any transfers or withdrawals with respect to a
Guarantee prior to the end of the Duration of that Guarantee, except for
withdrawals for recordkeeping fees as set
301-10,000-2002 (FL) Page 6
forth in Section 3.08, for death or disability benefits as set forth in Section
3.11, or upon the election of an Annuity Benefit pursuant to Sections 4.03 and
4.05 or a periodic distribution option in accordance with Sections 4.04 and
4.05, will be subject to a Guarantee Withdrawal Charge. The Guarantee Withdrawal
Charge will be equal to the lesser of (i) 7% of the amount transferred or
withdrawn (including the amount of such Guarantee Withdrawal Charge), and (ii)
the "interest attributable" to the amount transferred or withdrawn, defined as
(a) times the excess of (b) over (c), where:
(a) is the amount transferred or withdrawn from a Guarantee divided by the
Annuitant's Accrued Value with respect to that Guarantee;
(b) is such Accrued Value; and
(c) is the excess to date of (i) the Annuitant's Contributions, including
transfers, assigned to that Guarantee over (ii) "Net Withdrawals" with
respect to that Guarantee.
The "Net Withdrawals" with respect to a Guarantee are the actual amounts
credited to the Annuitant through transfers with respect to that Guarantee
pursuant to Section 3.05, and the actual amounts paid to the Annuitant through
partial withdrawals with respect to that Guarantee pursuant to Section 3.06,
exclusive of any Guarantee Withdrawal Charges assessed. Withdrawals of
recordkeeping fees from a Guarantee are not included in "Net Withdrawals". The
Guarantee Withdrawal Charge will be deducted from the remaining amounts in the
Annuitant's Guarantee after the withdrawal or transfer payment is processed;
except the Guarantee Withdrawal Charge may be deducted from the withdrawal or
transfer payment if there is an insufficient amount in the Annuitant's Guarantee
to pay such a charge.
SECTION 1.06 RETIREMENT DATE
The term "Retirement Date" means the date on which the Annuitant will attain the
retirement age specified by the Annuitant in the enrollment form. If no age has
been specified in the enrollment form, the Retirement Date will be the Required
Beginning Date as defined in Section 4.05. Before the Retirement Date the
Annuitant may elect to change the Retirement Date to another Retirement Date,
which may be the first day of any calendar month after the filing of the
election. Any election for such change must be made in writing by the Annuitant
and shall not take effect until received by Equitable at the Equitable office
address on the Data Pages, or any other address that Equitable designates in
written notice to the Annuitant.
The Annuitant may not choose a Retirement Date later than the maximum maturity
age under state law. If the Annuitant chooses a Retirement Date later than age
70 1/2, the Annuitant must meet the lifetime Required Minimum Distribution rules
applicable to this IRA Contract by making withdrawals at least annually with
respect to this Contract. See Part IV, Annuity Benefits and Required Minimum
Distribution Payments.
301-10,000-2002 (FL) Page 7
PART II - THE SEPARATE ACCOUNT AND ITS INVESTMENT DIVISIONS
SECTION 2.01 THE SEPARATE ACCOUNT AND ITS INVESTMENT DIVISIONS
The Separate Account operates in unit investment form and consists of Investment
Divisions. Each of the Investment Divisions may invest its assets in a separate
class of shares of a designated investment company in which each class
represents a separate portfolio in the investment company. The Investment
Divisions are set forth in the enrollment form. The term "Investment Division"
means a subdivision of the Separate Account. An Investment Division may invest
its assets in a separate class (or series) of shares of a specified trust or
investment company where each class (or series) represents a separate portfolio
in the specified trust or investment company.
Equitable may, at its discretion, make other Investment Divisions available to
Annuitants. Equitable will provide Annuitants with written notice of all
material details covering investment objectives and all charges, which may
include expenses and fees, if any, incurred by the investment company.
Equitable reserves the right, subject to compliance with applicable law,
including approval of the Annuitant, if required, (1) to cause the registration
or deregistration of the Separate Account under the Investment Company Act of
1940, (2) to operate the Separate Account under the direction of a committee and
to discharge such committee at any time, (3) to restrict or eliminate any voting
rights of Annuitants or other persons who have voting rights as to the Separate
Account, (4) to add, change or remove the designated investment company, (5) to
add, change or remove Investment Divisions, (6) to combine any two or more
Investment Divisions, (7) to transfer assets from any one of the Investment
Divisions to another Investment Division, and (8) to operate the Separate
Account or one or more of the Investment Divisions by making direct investments
or in any other form Equitable in its sole discretion determines.
Equitable may rely conclusively on the opinion of counsel (including attorneys
in its employ) as to what investments it is permitted by law to make. In
addition, unless otherwise required by law or regulation, an investment adviser
or any investment policy may not be changed without the consent of Equitable.
If any of the above changes result in a material change in the underlying
investments of an Investment Division of the Separate Account, Equitable will
notify the Annuitant of such change. If the Annuitant has value in that
Investment Division, the Annuitant may request Equitable in writing or by
telephone through AIMS (Account Investment Management System) to transfer that
value from that Investment Division (without charge) to another Investment
Division of the Separate Account, and may additionally change the allocation
percentages applicable to future contributions made for him or her.
Equitable will value the assets of each Investment Division on each Business
Day, in accordance with the provisions of Section 2.02.
301-10,000-2002 (FL) Page 8
SECTION 2.02 DEFINITIONS RELATING TO THE INVESTMENT DIVISIONS
EXPENSES: For a Valuation Period, the Expenses which may be charged to an
Investment Division are as follows:
(1) Any amount charged against the Investment Division by Equitable during such
Valuation Period to cover certain expenses incurred in the operation of the
Separate Account and the Investment Divisions, including, but not limited
to, taxes, interest, Securities and Exchange Commission charges and certain
related expenses including printing of registration statements and
amendments, outside auditing and legal expenses and certain costs of
maintaining Annuitant services, including recordkeeping services.
(2) The daily charge against the Investment Division for each day in such
Valuation Period for administrative services, calculated on the basis of an
effective annual rate of 0.25% of the value of the assets in the Investment
Division.
If the aggregate expenses of an Investment Division for a calendar year
(including the charges described in sub-paragraphs (1) and (2) of this
definition and investment advisory fees of the Trust ("Investment Advisory Fee")
and certain other expenses attributable to the assets of the Investment Division
invested in a corresponding Fund of the Trust, but excluding interest, taxes,
brokerage and, with the consent of appropriate state regulatory authorities,
extraordinary expenses) exceed a charge determined on the basis of an effective
annual rate of (i)1.0% of the value of the Money Market Division's average daily
Net Assets in such Investment Division during such calendar year, or (ii) 1.5%
of the value of the Stock Division, the Government Securities Division or the
Balanced Division's average daily Net Assets in such Investment Division during
such calendar year, then Equitable shall reimburse such Investment Division for
the excess charged to such Investment Division.
NET ASSETS: For an Investment Division, the "Net Assets" equal the value of the
assets in the Investment Division at the close of business of a Valuation
Period, minus the sum of (1) Expenses, and (2) any amount charged against the
Investment Division in such Valuation Period for taxes or for amounts set aside
by Equitable as a reserve for taxes attributable to the maintenance or operation
of the Investment Division. The net asset value of a designated investment
company's shares held in each Investment Division shall be the value reported to
Equitable by such investment company.
NET INVESTMENT FACTOR: For an Investment Division, the "Net Investment Factor"
for a Valuation Period is (1) the Net Assets at the close of business of that
Valuation Period, prior to giving effect to any amounts allocated to or
withdrawn from the Investment Division during that Valuation Period, divided by
(2) the Investment Division's Net Assets at the close of business of the
preceding Valuation Period.
UNIT: Contributions that are allocated to an Investment Division purchase Units
in that Division.
UNIT VALUE: The "Unit Value" is the dollar value of each Unit of each Investment
Division on the first day contributions are allocated to the Separate Account.
The Unit Value for each subsequent Valuation Period with respect to an
Investment Division is the Unit Value for the immediately
301-10,000-2002 (FL) Page 9
preceding Valuation Period multiplied by the Net Investment Factor for such
subsequent Valuation Period.
VALUATION PERIOD: For an Investment Division, the "Valuation Period" starts at
the end of each Business Day and ends at the corresponding time on the next
Business Day, and includes any non-business day or consecutive non-business days
immediately preceding such Business Day.
PART III - ANNUITANT'S ACCOUNT
SECTION 3.01 ACCOUNTS
Equitable will maintain at least one Account for the Annuitant; at the written
request of the Annuitant satisfactory to Equitable, an additional Account will
be maintained for the Annuitant with respect to each rollover contribution made
pursuant to Subparagraph 2 of Section 3.03. Each such Account will contain one
or more sub-accounts, hereinafter called "Investment Accounts." The Investment
Accounts made available to the Annuitant are as specified on the Data Pages.
Equitable reserves the right to add or remove Investment Accounts. Any amounts
allocated to an Investment Account will either become part of the Guaranteed
Rate Account or part of an Investment Division of the Separate Account
applicable to that Investment Account.
Any amounts withdrawn from an Investment Account will no longer be part of the
Guaranteed Rate Account or the applicable Investment Division.
SECTION 3.02 ACCOUNT BALANCES OF INVESTMENT ACCOUNTS
On any day, the Account Balance of the Annuitant's Investment Account, other
than the Guaranteed Rate Account, will be equal to the product of the number of
Units in that Investment Account on that date and the Unit Value for the
applicable Investment Division for the Valuation Period which includes that
date. The number of Units in such an Investment Account on any date will be
equal to the sum of any Units credited to that Investment Account less the value
of any Units withdrawn from that Investment Account. On any Valuation Date when
a designated amount is allocated to or withdrawn from such an Investment
Account, the Investment Account will be credited or charged, as the case may be,
with a number of Units determined by dividing the designated amount by the
applicable Unit Value for the Valuation Period which includes that date.
On any day, the Account Balance of the Annuitant's Guaranteed Rate Account will
be equal to the sum of the Accrued Values, on such day, with respect to all the
Guarantees to which Contributions of the Annuitant have been assigned. On any
day, the Annuitant's Cash Value with respect to a particular Guarantee will be
equal to the Accrued Value with respect to that Guarantee minus any applicable
Guarantee Withdrawal Charge, as set forth in Section 1.05.
SECTION 3.03 CONTRIBUTIONS
The Annuitant may have Contributions made on such dates and in such amounts as
the Annuitant may determine, subject to the following conditions:
301-10,000-2002 (FL) Page 10
1. Any contribution made for the Annuitant by any means other than through
payroll deduction by the Annuitant's employer may be made only subject to
Equitable's rules then in effect.
2. Rollover contributions may be made under the Contract for the Annuitant
as permitted by the following Code Sections: 402(c), 402 (e)(6), 403(a)(4),
403(b)(8), 403(b)(10), 408(d)(3) and 457(e)(16). Amounts may also be
contributed by directly transferring from another traditional individual
retirement arrangement under Code Section 408 ("direct transfer").
3. Any contribution will be deemed by Equitable to be made for the
Annuitant's current taxable year unless the Annuitant specifies in writing
to Equitable, subject to applicable requirements of the Code, that such
Contribution is a (i) rollover contribution or a direct transfer
contribution as described above, or (ii) such contribution is for the
Annuitant's prior taxable year.
4. No contributions, other than cash Contributions, will be accepted.
(a) Except in the case of a rollover Contribution (as permitted by
Sections 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10),
408(d)(3) and 457(e)(16) of the Code), or a contribution made
under the terms of a Simplified Employee Pension as described in
Section 408(k) of the Code, the total of such Contributions will
not exceed:
$3,000 for any taxable year beginning in 2002 through 2004;
$4,000 for any taxable year beginning in 2005 through 2007; and
$5,000 for any taxable year beginning in 2008 and years
thereafter.
After 2008, the limit will be adjusted by the Secretary of the
Treasury for cost-of-living increases under Code Section
219(b)(5)(C). Such adjustments will be in multiples of $500.
(b) In the case of the Annuitant who is 50 or older, the annual cash
Contribution limit is increased by:
$500 for any taxable year beginning in 2002 through 2005; and
$1,000 for any taxable year beginning in 2006 and years
thereafter.
Amounts directly transferred to the Contract from an individual retirement
account or annuity contract which meets the requirements of Section 408 of
the Code are also not subject to the limits described in Subparagraph 4(a)
and 4(b) of this Section 3.03.
(c) No Contributions will be accepted under a SIMPLE IRA plan
established by any employer pursuant to Code Section 408(p).
Also, no transfer or rollover of funds attributable to
contributions made by a particular employer under its SIMPLE IRA
plan will be accepted from a SIMPLE IRA, that is, an IRA used in
conjunction
301-10,000-2002 (FL) Page 11
with a SIMPLE IRA plan, prior to the expiration of the 2-year
period beginning on the date the Annuitant first participated in
that employer's SIMPLE IRA plan.
5. The Annuitant shall be responsible, for tax purposes, for maintaining
records as to the amount of contributions which are deductible and
non-deductible made by or on behalf of the Annuitant.
SECTION 3.04 ALLOCATIONS
The Annuitant will direct the allocation of each contribution to the Annuitant's
Investment Accounts as defined in Section 3.01 above, subject to the following
conditions:
1. The Annuitant's direction of the allocation of Contributions to the
Annuitant's Investment Accounts shall be in terms of whole percentages.
2. Allocations will be made as of the date on which Equitable receives the
Contribution (a) in the case of payroll deductions or (b) at the address
shown on the Data Pages in the case of contributions other than through
payroll deductions.
3. Any Contribution made without appropriate direction as to its allocation
will be allocated to the Annuitant's Money Market Account.
4. The Annuitant may, upon written notice to Equitable or through AIMS,
change the allocation of future contributions. If a Contribution made other
than through payroll deduction accompanies the written notice, the change
shall be effective as of the date of receipt of the Contribution.
Allocation changes unaccompanied by a check shall be effective as of the
date of the first Contribution received after Equitable's receipt of the
Annuuitant's written notice, or, in the case of the Guaranteed Rate
Account, at the beginning of the next Contribution Quarter. Equitable
reserves the right to limit, upon at least 90 days advance notice to the
Annuitant, the number of such changes allowed in a calendar year, and, with
respect to the Guaranteed Rate Account, the timing and effective date of
such allocation changes.
5. If Equitable offers more than one Guarantee during a Contribution
Quarter, contributions allocated to the Annuitant's Guaranteed Rate Account
during that Contribution Quarter will be allocated among the Guarantees
receiving contributions during such Contribution Quarter in accordance with
the instructions of the Annuitant. If Contributions are received with
instructions for allocation to Guarantee Durations which differ from those
being offered during that Contribution Quarter, the part of the
Contribution which cannot be allocated in accordance with those
instructions will be assigned to the Guarantee with the next shorter
Duration to which Contributions are being assigned during that Contribution
Quarter, or, if Contributions are not being assigned to a Guarantee with a
shorter Duration than that requested, to the Guarantee of the shortest
Duration.
301-10,000-2002 (FL) Page 12
SECTION 3.05 TRANSFERS
The Annuitant may transfer amounts among the Investment Accounts maintained for
the Annuitant under the Contract, subject to the following conditions:
1. The request for the transfer must be made in writing or via AIMS and
will be effective on the Business day that Equitable receives such request,
except as set forth in subsection 4 below.
2. The amount so transferred will be allocated as of the date of transfer
to the Investment Account, or among the Investment Accounts, selected by
the Annuitant, except as set forth in subsection 4 below.
3. Transfers may not be made from one Guarantee in the Guaranteed Rate
Account to another. Transfers from a Guarantee in the Guaranteed Rate
Account may not be made during the Contribution Quarter with respect to
that Guarantee. Any other transfer may be made at any time.
4. Upon at least 90 days advance notice to the Annuitant, Equitable may
limit the number of transfers that the Annuitant may make in any
twelve-month period or limit the circumstances under which transfers may be
made to or from the Guaranteed Rate Account.
5. Transfers from the Guaranteed Rate Account are subject to the Guarantee
Withdrawal Charge as described in Section 1.05.
SECTION 3.06 PARTIAL WITHDRAWALS
The Annuitant may elect by written notice to Equitable to take a partial
withdrawal from the Annuitant's Accounts on or before the Annuutant's Retirement
Date, subject to Equitable's advance written consent if such withdrawal is for
an amount of less than $250. If such election would result in the sum of the
amounts then in the Annuitant's Investment Accounts to be less than $100,
Equitable will deem such election to be an election by the Annuitant to
terminate the Contract and will make the payment described in Section 3.10 in
lieu of any payment under this Section unless the Annuitant requests that the
Contract issued pursuant to Section 5.01 be permitted to remain in effect and
Equitable agrees.
Upon a partial withdrawal, Equitable will pay to the Annuitant the lesser of (i)
the Cash Value of the Annuitant's Accounts or (ii) the amount of partial
withdrawal requested. Unless Equitable is otherwise directed by the Annuitant in
accordance with Equitable's requirements, the amount so paid will be withdrawn
from the Annuitant's Investment Accounts in proportion to the amount of the
Annuitant's Account Balance in each such Investment Account. Unless otherwise
directed by the Annuitant, withdrawals from the Guaranteed Rate Account will be
made from the Guarantee with the most recent Contribution Quarter of each
Duration (that is, one year, three year and so forth) represented in the
Annuitant's Guaranteed Rate Account in the same proportion that the sum of the
Accrued Values of the Annuitant's Guarantees of each Duration bears to the
Account Balance
301-10,000-2002 (FL) Page 13
of the Annuitant's Guaranteed Rate Account, or, if such Accrued Values prove
insufficient, from the Guarantee or Guarantees with the next most recent
Contribution Quarter.
Notwithstanding anything to the contrary in this Section, withdrawals pursuant
to this Section may not be made from a Guarantee in the Guaranteed Rate Account
during its Contribution Quarter.
Upon any payment to the Annuitant's pursuant to this Section, Equitable will be
released from any and all liability for payments with respect to the
Contributions from which the amounts so withdrawn arose.
Payments to the Annuitant pursuant to this Section may be deferred by Equitable
in accordance with the provisions of Section 5.06.
SECTION 3.07 EXPIRATION OF THE GUARANTEE
At the end of the Duration of a Guarantee, Equitable will assign the Accrued
Value with respect to that Guarantee (i) to the Guarantee of similar Duration to
which Contributions are being assigned during the Contribution Quarter next
following, (ii) if no Guarantee of similar Duration is being offered, to the
Guarantee with the shortest Duration being offered, or (iii) as elected by the
Annuitant pursuant to instructions received on or before the end of the
Guarantee.
SECTION 3.08 RECORDKEEPING FEE
AMOUNT:
Once in each calendar quarter, Equitable will withdraw from the Annuitant's
Accounts a recordkeeping fee.
The amount of such charge shall be determined by Equitable but will not be more
than a maximum charge of $7.50 in each calendar quarter. The amount determined
by Equitable will be based on such factors as (i) the method by which
Contributions are being made under the Contract (payroll deduction, direct
contribution or other), (ii) the number of Annuitants contributing through the
same payroll deduction facility , (iii) the total Contributions Equitable
estimates will be made , (iv) any other circumstances having an impact on
Equitable's recordkeeping expense, and (v) whether the Annuitant is then
receiving payments under the periodic distribution option described in Section
4.04. The Annuitant's recordkeeping fee will be deducted from the Annuitant's
Accounts, and within those Accounts from the Annuitant's balance in each
Investment Account, in accordance with the ordering rule established by
Equitable from time to time. The ordering rule in effect from time to time shall
be available to the Annuitant upon request. Such withdrawals will reduce the
number of Units in the Annuitant's Investment Accounts.
The initial recordkeeping fee shall be stated on the Data Pages.
Equitable reserves the right to withdraw the recordkeeping fee more or less
frequently than once each calendar quarter but the amount will never exceed $30
per annum.
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EMPLOYER PAYMENT:
An employer may have a Contribution made of an amount equal to the Annuitant's
recordkeeping fee then due for the Annuitant. If such a Contribution is made, no
withdrawal from the Annuitant's Account will then be made pursuant to this
Section.
SECTION 3.09 ENROLLMENT FEE
A fee of $25 will be paid to Equitable upon enrollment of each new Annuitant in
a Simplified Employee Pension. It will be charged against the first Contribution
made on behalf of the Annuitant, unless the Annuitant's employer pays the fee.
SECTION 3.10 TERMINATION OF PARTICIPATION IN THE CONTRACT
On or before the Annuitant's Retirement Date, the Annuitant may elect by written
notice to terminate the Contract. As of the date of receipt of such notice,
Equitable will determine and, subject to Section 5.06, pay to the Annuitant the
Cash Value of the Annuitant's Accounts.
Equitable may elect to terminate the Contract if no Contribution has been made
by or on behalf of the Annuitant for at least three years from the date of the
last Contribution to the Annuitant's Account and if the sum of the Account
Balances of the Annuitant's Investment Accounts does not exceed $2,000 or would,
if it were then the Annuitant's Retirement Date, provide an Annuity Benefit of
less than $20 per month. As of such date, Equitable will determine and, subject
to Section 5.06, pay to the Annuitant the Cash Value of the Annuitant's
Accounts.
Upon payment to the Annuitant pursuant to this Section, Equitable will be
released from any and all liability for payments with respect to the
contributions from which the sum of the amounts then in the Annuitant's
Investment Accounts arose.
SECTION 3.11 DEATH OR DISABILITY BENEFIT
DEATH:
If the Annuitant dies while an Account for the Annuitant is being maintained
under the Contract, Equitable, upon receipt of due proof of death will pay, the
Cash Value of the Annuitant's Accounts as of the date such due proof is
received, in a single sum to the beneficiary designated by the Annuitant to
receive such payment. Due proof of death must be received by Equitable at the
Equitable office address on the Data Pages, or any other address Equitable
designates in written notice to the Annuitant.
Under either of the following two circumstances, the Death Benefit under this
Section 3.11 of the Contract will not be paid at the Annuitant's death and the
coverage under the Contract will continue if:
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(1) The Annuitant is married at the time of his or her death; the
designated beneficiary under Section 5.04 of the Contract is the
surviving spouse; and the surviving spouse elects to treat the IRA as
his or her own IRA pursuant to Section 4.05B(e).
(2) Also, a Death Benefit will not be paid under this Section 3.11 if the
"Beneficiary Continuation Option" under Section 3.13 is in effect.
DISABILITY:
An individual is considered to be disabled if he is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or to be of long
continued and indefinite duration. An individual shall not be considered to be
disabled unless he furnishes proof of the existence thereof in such form and
manner as the Equitable may require. If the Annuitant becomes disabled within
the meaning of Section 72(m)(7) of the Code while an Account for the Annuitant
is being maintained under the Contract, Equitable, upon receipt of due proof of
disability, will pay the Cash Value of the Annuitant's Accounts as of the date
such due proof is received, in a single sum to the Annuitant. Due proof of such
disability, must be received by Equitable at the Equitable office address on the
Data Pages, or any other address Equitable designates in written notice to the
Annuitant.
Payment to the Annuitant or the beneficiary may be deferred by Equitable in
accordance with the provisions of Section 5.06.
Upon any payment made pursuant to this Section, Equitable will be released from
any and all liability for payment with respect to the contributions made for the
Annuitant.
SECTION 3.12 OPTIONAL MODES OF SETTLEMENT
The Annuitant may elect that the whole or any part of any amount that would
otherwise be payable to the Annuitant's designated beneficiary in a single sum
be paid to such beneficiary under an optional mode of settlement, subject to the
provisions of Section 4.05 and to Equitable's rules in effect at the time of
election. A beneficiary may make such an election after the Annuitant's death if
no such election made by the Annuitant's is then in effect.
Any payee under an optional mode of settlement elected pursuant to this Section
may designate (with the right to revoke or to change such designation) a
beneficiary to receive any amount that, in the absence of such designation,
would be payable to such payee's executors or administrators.
Any election of an optional mode of settlement may be revoked or changed by the
Annuitant at any time before a payment is made thereunder. Any election,
designation, revocation or change shall be effective as of the date written
notice thereof is received by Equitable at the office on the Data Pages, or any
other address Equitable designates in written notice to the Annuitant.
SECTION 3.13 BENEFICIARY CONTINUATION OPTION
301-10,000-2002 (FL) Page 16
This Section 3.13 will apply only if the Annuitant dies before the Retirement
Date, and the beneficiary named under Section 5.04 of the Contract is an
individual.
With the exception of the following paragraph, this Section 3.13 does not apply
to any beneficiary which is not an individual, and the death benefit described
in Section 3.11 of the Contract is payable to that non-individual beneficiary.
This Section 3.13 applies to a non-individual beneficiary only if it is a
"see-through trust". A "see-through trust" is an irrevocable trust, valid under
state law, the only beneficiaries of which are individuals, and which trust has
met applicable documentation requirements under applicable Regulations as we may
determine. If such a "see-through trust" described in Treasury Regulation
Section 1.401(a)(9)-4 Q&A A-5, or any successor Regulation, is the beneficiary
named pursuant to Section 5.04, the successor Annuitant for purposes of this
Contract is the oldest beneficiary of such trust.
If this Section 3.13 applies and there is more than one beneficiary, the Account
Balances of the Annuitant's Accounts and the Annuitant's Guaranteed Rate
Accounts and any other interest under the Contract described in Section 4.05
will be apportioned among the beneficiaries as designated pursuant to Section
5.04 of the Contract.
If the beneficiary qualifies to continue this Contract, and we receive that
beneficiary's completed election no later than September 30 of the calendar year
following the calendar year of the Annuitant's death and before any contrary
election is made, that beneficiary may continue the Contract pursuant to this
Section 3.13 under the terms set forth below. Each such beneficiary electing to
continue his or her portion of the interest under the Contract is a
"Continuation Beneficiary". For any beneficiary who does not timely elect to
continue his or her portion of the interest under the Contract, we will pay that
beneficiary's share of the Death Benefit pursuant to Section 3.11 of the
Contract in a lump sum.
a. Each Continuation Beneficiary will automatically become the Annuitant
as defined in the Section 1.00a of the Contract with respect to that
Continuation Beneficiary's portion of the interest under the Contract.
If the Annuitant has specifically elected under Section 5.04 that we
not separately account for each beneficiary's portion of the interest
under the Contract, the oldest Continuation Beneficiary will be the
Annuitant for purposes of calculating the Required Minimum
Distribution payments in Section 4.05B (Required Minimum Distribution
Payments After Death).
b. Each Continuation Beneficiary will have the same right that the
deceased Annuitant had to transfer amounts among the Accounts with
respect to that Continuation Beneficiary's portion under the Contract.
c. A Continuation Beneficiary cannot make any additional Contributions.
d. Distributions to the Continuation Beneficiary with respect to that
Continuation Beneficiary's portion of the interest under the Contract
will be made in accordance with
301-10,000-2002 (FL) Page 17
requirements described in Section 4.05B (Required Minimum Distribution
Payments After Death).
e. A Continuation Beneficiary may make partial withdrawals from the
Account apportioned to such Continuation Beneficiary or terminate the
Contract at any time; withdrawals made after we have received a
Continuation Beneficiary's election to continue this Contract are not
subject to a withdrawal charge.
f. Upon a Continuation Beneficiary's death, we will make a lump sum
payment to the person designated by the deceased Continuation
Beneficiary to receive that deceased Continuation Beneficiary's
portion of the Account, if any remains. In the alternative, the
deceased Continuation Beneficiary's designated beneficiary may elect
to continue the payment method originally elected by the deceased
Continuation Beneficiary in accordance with paragraph (b)(1) or (b)(2)
of Section 4.05B (Required Minimum Distribution Payments After Death).
g. The Contract cannot be assigned and must continue in the deceased
Annuitant's name for benefit of the Continuation Beneficiary.
PART IV - ANNUITY BENEFITS AND REQUIRED
MINIMUM DISTRIBUTION PAYMENTS
SECTION 4.01 ANNUITY BENEFIT
The term "Annuity Benefit" means a series of monthly payments with respect to a
specified person or persons payable in a specified dollar amount.
The term "Annuity Value" means the amount determined on the Annuitant's
Retirement Date, equal to the sum of the Cash Value of the Annuitant's Accounts.
The term "Amount Applied" means the portion of the Annuity Value which the
Annuitant elects to apply toward an Annuity Benefit pursuant to Section 4.02,
less any applicable State Premium Tax as determined by Equitable, and a one-time
administrative fee at the applicable rate in effect on the date of purchase.
Each monthly payment under any Annuity Benefit under the Contract will be the
amount provided pursuant to Section 4.03.
The Normal Form of Annuity Benefit under the Contract means the Life Annuity
Form with Ten Years Certain which provides for a payment each month until the
Annuitant's death. If the Annuitant dies before the end of the certain period,
monthly payments would continue to the named beneficiary until the end of the
certain period with no further payments thereafter. If the Annuitant
301-10,000-2002 (FL) Page 18
lives longer than the certain period of time, payments will continue for the
Annuitant's lifetime and then cease.
SECTION 4.02 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS
As of the Annuitant's Retirement Date, provided the Annuitant is then living,
the Annuitant's Annuity Value shall be applied to provide an Annuity Benefit on
the Normal Form, unless the Annuitant elects as of such Retirement Date to (i)
terminate the Contract and receive the Cash Value of the Annuitant's Accounts as
a single sum pursuant to Section 3.10, (ii) have payments made under the
periodic distribution option described in Section 4.04, (iii) have another form
of Annuity Benefit provided pursuant to Section 4.03 or, (iv) subject to
Equitable's rules then in effect, any other annuity form or combination of forms
or withdrawal option offered by Equitable or have any combination of the three
preceding options.
In all events the Annuitant's election, or the beneficiary's if applicable, is
subject to the rules in Section 4.05, Required Minimum Distribution Rules.
Notwithstanding anything to the contrary above, Equitable reserves the right to
pay the Annuitant's Cash Value to the Annuitant in a single sum: (1) if the Cash
Value is equal to or less than $2,000; (2) if less than $20 per month would be
payable under the Annuity Benefit; (3) if less than $50 per month would be
payable under the periodic distribution option.
Equitable will provide appropriate notice and election forms to the Annuitant
not more than six months or less than three months before the Annuitant's
Retirement Date.
Equitable has the right to require the Annuitant to furnish pertinent facts and
determinations before providing an Annuity Benefit, and will be fully protected
in relying on such information and need not inquire as to the accuracy or
completeness thereof.
SECTION 4.03 AMOUNT OF ANNUITY BENEFITS
If the Annuitant elects an Annuity Benefit, the Amount Applied will be applied
as of the Annuitant's Retirement Date to provide the Annuity Benefit.
The Amount Applied shall provide the Annuity Benefit on the basis of the Table
of Guaranteed Annuity Payments shown in Section 4.06.
The amount of income provided under an Annuity Benefit payable on the Life
Annuity Form with Ten Years Certain is based on 2.5% interest and the 1983
Individual Annuity Mortality Table "a" projected with modified Scale "G".
If a variable annuity form is available from us and elected, then the amounts
required will be calculated by us based on the 1983 Individual Annuity Mortality
Table "a" projected with a modified Scale "G" and a modified two year age
setback and on an Assumed Base Rate of Net Investment Return of 3.5% or 5.0%,
whichever will apply, as we will inform you.
301-10,000-2002 (FL) Page 19
SECTION 4.04 PERIODIC DISTRIBUTION OPTION
The Annuitant may elect pursuant to Section 4.02 to receive the Account Balance
of each of the Annuitant's Accounts under the periodic distribution option
described in this Section 4.04, so long as such payments extend for a period of
three years or longer. Such option, subject to the conditions set forth in the
following subparagraphs and the provisions of Section 4.05, provides either:
(a) PERIOD CERTAIN: A series of monthly, quarterly, semi-annual or annual
installment payments (as specified by the Annuitant) over a number of whole
years beginning as of the Annuitant's Retirement Date, such number of whole
years being the lesser of (i) the number of whole years designated by the
Annuitant before the Annuitant's Retirement Date and (ii) the number of years
equal to the greater of the life expectancy of the Annuitant and the joint and
last survivor life expectancy of the Annuitant and the Annuitant's designated
beneficiary as of the Annuitant's Retirement Date, rounded to the next lower
whole year. If permitted by Equitable pursuant to its rules in effect at the
time, the life expectancy of the Annuitant and his/her spouse may be
recalculated once each year. The life expectancy of a beneficiary other than the
Annuitant's spouse may not be recalculated after distribution has commenced.
(b) DOLLAR CERTAIN: A series of level monthly, quarterly, semi-annual or annual
installment payments (as specified by the Annuitant) in an amount specified by
the Annuitant such that the period of payments is projected, as of the date of
the first payment, to be a period of at least three years' duration.
CONDITIONS:
1. Payments made under the periodic distribution option will include
interests held by the Annuitant in the Guaranteed Rate Account. However,
Equitable reserves the right to suspend distribution from the Guaranteed
Rate Accounts for such payments in its sole discretion.
2. The amount of each Period Certain monthly, quarterly, semi-annual or
annual installment elected in accordance with Section 4.04(a) above shall
be computed by Equitable beginning on the date as of which such installment
payments commence, and thereafter, as of the first day of each succeeding
month, quarter, semi-annual or annual period. The amount of each such
periodic distribution payment shall be determined by dividing the sum of
the Account Balances of the Annuitant's Investment Accounts as of the first
day of each period by the number of periods remaining.
3. Each periodic distribution payment will be withdrawn from the
Annuitant's Accounts in proportion to the amount of the Annuitant's
interest in each such Investment Account immediately before such payment is
made.
301-10,000-2002 (FL) Page 20
4. The Annuitant recordkeeping fee will continue to be withdrawn from the
Annuitant's Account in accordance with Section 3.08.
5. While periodic distributions are being made, the Annuitant may transfer
amounts among the Investment Accounts maintained for the Annuitant pursuant
to Section 3.01, except that transfers may not be made from one Guaranteed
Rate Account to another. A Guarantee Withdrawal Charge pursuant to Section
1.05 will be deducted from such transfers.
6. The Annuitant may elect by advance written notice to have Equitable
cease making periodic distribution payments and instead pay in a single sum
to the Annuitant the sum of the Account Balances of the Annuitant's
Investment Accounts. Upon making such payment Equitable will be released
from any and all liability for payments with respect to the Contributions
made for the Annuitant from which the payment arose.
7. No periodic distribution payment shall be of an amount greater than the
sum of the Account Balances of the Annuitant's Accounts immediately before
the due date of such payment.
8. If the Annuitant dies while periodic distribution payments are being
made, a single sum death benefit will be paid to the Annuitant's
beneficiary pursuant to Section 3.11.
SECTION 4.05 REQUIRED MINIMUM DISTRIBUTION RULES
This Contract is subject to the "Required Minimum Distribution" rules of
Sections 408(b) and 401(a)(9) of the Code and the Treasury Regulations which
apply.
Part A of this Section 4.05 describes the Required Minimum Distributions to be
made during the Annuitant's lifetime. Part B of this Section 4.05 describes the
Required Minimum Distributions to be made after the Annuitant's death, if the
Annuitant dies before the entire interest under the Contract is distributed to
the Annuitant. The Required Minimum Distribution Rules may be satisfied by
either taking an annuity benefit or by taking withdrawals at least annually from
or with respect to the Annuitant's entire interest under this Contract, all as
subject to these rules.
If the Annuitant chooses annual withdrawals, Required Minimum Distribution
payments calculated for this Contract may be made from this Contract or from
another traditional individual retirement arrangement that the Annuitant
maintains, pursuant to Treasury Regulations. If the Annuitant does not
affirmatively request payment, we assume that the Annuitant is satisfying the
annual Required Minimum Distribution payments from another individual retirement
arrangement.
For purposes of both the "lifetime" Required Minimum Distribution rules and the
Required Minimum Distribution rules after death, the following definitions and
conditions apply:
301-10,000-2002 (FL) Page 21
The "entire interest" of the Annuitant under the Contract for purposes of
the Required Minimum Distribution Rules. The Annuitant's "entire interest"
under the Contract includes the amount of any outstanding rollover,
transfer and recharacterization under Q&As-7 and -8 of Treasury Regulation
Section 1.408-8 or any successor Regulation and the actuarial value of any
other benefits provided under the IRA, such as guaranteed death benefits,
as well as the value of the Annuitant's Accounts (less applicable charges
as determined by Equitable).
Required Beginning Date. The Annuitant's "Required Beginning Dates" is the
first day of April following the calendar year in which the Annuitant
attains age 70 1/2. This is the latest date when the Annuitant's lifetime
Required Minimum Distribution payments with respect to this Contract can
start.
A. LIFETIME REQUIRED MINIMUM DISTRIBUTION RULES
Notwithstanding anything in the Contract to the contrary, the distribution of
the Annuitant's interest under the Contract shall be made in accordance with the
requirements of Code Section 408(b)(3) and the Treasury Regulations thereunder,
the provisions of which are herein incorporated by reference. If distributions
are not made in the form of an annuity on an irrevocable basis (except for
acceleration), then distribution of the Annuitant's interest under the Contract
must satisfy the requirements of Code Section 408(a)(6) and the Regulations
thereunder, rather than the Required Minimum Distribution rule provisions of
this Section 4.05A and Section 4.05B.
The Annuitant's entire interest under the Contract will be distributed or begin
to be distributed no later than the Annuitant's Required Beginning Date defined
above. The Annuitant's entire interest may be distributed, over (a) the
Annuitant's life, or the lives of the Annuitant's and his or her designated
beneficiary, or (b) a period certain not extending beyond the Annuitant's life
expectancy, or the joint and last survivor expectancy of the Annuitant and his
or her designated beneficiary.
These "lifetime" Required Minimum Distribution payments must be made in periodic
payments at intervals of no longer than 1 year and must be either nonincreasing
or they may increase only as provided in Q&As-1 and -4 of Section 1.401(a)(9)-6T
of the Temporary Treasury Regulations or any successor Regulation. In addition,
any distribution must satisfy the incidental benefit requirements specified in
Q&A-2 of Section 1.401(a)(9)-6T of the Temporary Treasury Regulation or any
successor Regulation.
The distribution periods described in the second preceding paragraph cannot
exceed the periods specified in Section 1.401(a)(9)-6T of the Temporary Treasury
Regulations or any successor Regulation.
The first lifetime Required Minimum Distribution payment can be made as late as
April 1 of the year following the year the Annuitant attains age 70 1/2 and must
be the payment that is required for one payment interval. The second payment
need not be made until the end of the next payment interval.
B. REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER DEATH
301-10,000-2002 (FL) Page 22
(a) Death On or After Lifetime Required Minimum Distributions Commence. If the
Annuitant dies on or after Lifetime Required Minimum Distributions commence, the
remaining portion of his or her interest will continue to be distributed under
the annuity benefit or other option chosen under the Contract. If a distribution
for a period certain in accordance with Section 4.04 had commenced prior to the
Annuitant's death then the distribution shall be made to the Annuitant's
beneficiary in accordance with the option selected.
(b) Death Before Lifetime Minimum Required Distributions Commence. If the
Annuitant dies before Lifetime Required Distributions commence, his or her
entire interest will be distributed at least as rapidly as follows:
(1) If the designated beneficiary is someone other than the Annuitant's
surviving spouse as described in the immediately following paragraph, the
entire interest will be distributed, starting by the end of the calendar
year following the calendar year of the Annuitant's death, over the
remaining life expectancy of the designated beneficiary, with such life
expectancy determined using the age of the beneficiary as of his or her
birthday in the year following the year of the Annuitant's death. In the
alternative, the beneficiary may elect to take distribution of the
Annuitant's entire interest in accordance with this Section 4.05B,
paragraph (b)(3) below.
(2) If the Annuitant's sole designated beneficiary is the Annuitant's surviving
spouse, the entire interest will be distributed, starting by the end of the
calendar year following the calendar year of the Annuitant's death (or by
the end of the calendar year in which the Annuitant would have attained age
70 1/2, if later), over such surviving spouse's life. In the alternative,
the beneficiary may elect to take distribution of the Annuitant's entire
interest in accordance with this Section 4.05B, paragraph (b)(3) below. If
the surviving spouse dies before required distributions commence to him or
her, the remaining interest will be distributed, starting by the end of the
calendar year following the calendar year of the spouse's death, over the
spouse's designated beneficiary's remaining life expectancy determined
using such beneficiary's age as of his or her birthday in the year
following the death of the spouse. In the alternative, that beneficiary may
elect to take distribution of the Annuitant's entire interest in accordance
with this Section 4.05B, paragraph (b)(3) below. If the surviving spouse
dies after these required distributions commence to him or her, any
remaining interest will continue to be distributed under the annuity
benefit or other option chosen under the Contract.
(3) If there is no individual designated as beneficiary, or if the applicable
beneficiary chooses this alternative, the entire interest will be
distributed by the end of the calendar year containing the fifth
anniversary of the Annuitant's death (or of the surviving spouse's death if
the surviving spouse dies before distributions are required to begin under
this Section 4.05B, paragraph (b)(2) above).
(4) Life expectancy is determined using the Single Life Table in Q&A-1 of
Treasury Regulation Section 1.401(a)(9)-9 or any successor Regulation. If
distributions are being made to a surviving spouse as the sole designated
beneficiary, such spouse's remaining life expectancy for a year is the
number in the Single Life Table corresponding to such spouse's age in the
year. In all other cases, remaining life expectancy for a year is the
number in the Single Life
301-10,000-2002 (FL) Page 23
Table corresponding to the beneficiary's age in the year specified in
paragraph (b)(1) or (2) of this Section 4.05B and reduced by 1 for each
subsequent year.
(d) For purposes of paragraphs (a) and (b) of this Section 4.05B above, required
distributions are considered to commence on the Annuitant's Required Beginning
Date as defined above in this Section 4.05A or, if applicable, on the date
distributions are required to begin to the surviving spouse under paragraph
(b)(2) above. However, if distributions start prior to the applicable date in
the preceding sentence, on an irrevocable basis (except for acceleration) under
an annuity contract meeting the requirements of Temporary Treasury Regulation
Section 1.401(a)(9)-6T or any successor Regulation, then required distributions
are considered to commence on the annuity starting date.
(e) If the sole designated beneficiary is the Annuitant's surviving spouse, the
spouse may elect to treat the IRA as his or her own IRA. This election will be
deemed to have been made if such surviving spouse makes a contribution to the
IRA or fails to take required distributions as a beneficiary.
SECTION 4.06 PAYMENT OF BENEFITS
MISSTATEMENT OF AGE, GENDER OR IDENTITY
If a benefit payable under the Contract was based on information about the
Annuitant's age, gender or identity that is subsequently found to be incorrect,
such benefit will not be invalidated, but an adjustment on the basis of the
correct information will be made in the amount of the benefit payments, or any
amount used to provide the benefit, or any combination thereof. Overpayments by
Equitable will be charged against future payments and underpayments will be paid
to you in a lump sum, with interest at the rate of 6% per year. The liability of
Equitable with respect to a payee is limited to the correct information and the
actual amounts used to provide the benefits then in force with respect to the
payee under the Contract. With respect to any other statements required as a
condition of issuing a Contract to the Annuitant, except statements relating to
the disability benefit in Section 3.11, the Contract shall be incontestable
after it has been in force during the lifetime of the Annuitant for two years.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon to fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other
301-10,000-2002 (FL) Page 24
person, to receive the commuted value of any, remaining payments, provided no
person upon whose life the income depends is surviving.
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable. Equitable will require satisfactory evidence of the
age of any person upon whose life an annuity form depends.
TABLE OF GUARANTEED ANNUITY PAYMENTS
AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE LIFE ANNUITY FORM WITH TEN
YEARS CERTAIN PROVIDED BY APPLICATION OF $1,000.
Monthly Income Monthly Income
Ages Males Females Ages Males Females
---- ----- ------- ---- ----- -------
60 4.12 3.70 76 5.95 5.26
61 4.20 3.76 77 6.10 5.40
62 4.29 3.83 78 6.25 5.55
63 4.38 3.90 79 6.40 5.70
64 4.48 3.98 80 6.69 5.92
65 4.58 4.06 81 6.86 6.09
66 4.68 4.14 82 7.21 6.35
67 4.79 4.23 83 7.41 6.55
68 4.90 4.32 84 7.81 6.86
69 5.02 4.42 85 8.05 7.08
70 5.14 4.52 86 8.28 7.31
71 5.26 4.63 87 8.80 7.70
72 5.39 4.75 88 9.08 7.96
73 5.52 4.87 89 9.69 8.41
74 5.66 4.99 90 10.01 8.70
75 5.80 5.12
The amount of income provided under an Annuity Benefit payable on the Life
Annuity form with Ten Years Certain is based on 2.5% interest and the 1983
Individual Annuity Mortality Table "a" projected with modified Scale "G".
Amounts required for ages or for annuity forms not shown in the above Table or
for other annuity forms will be calculated by us on the same actuarial basis.
If a variable annuity form is available from us and elected, then the amounts
required will be calculated by us based on the 1983 Individual Annuity Mortality
Table "a" projected with a modified Scale "G" and a modified two year age
setback and on an Assumed Base Rate of Net Investment Return of 3.5% or 5.0%,
whichever will apply, as we will inform you.
301-10,000-2002 (FL) Page 25
PART V - GENERAL PROVISIONS
SECTION 5.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of Equitable. Nothing in the enrollment form, nor any modification,
amendment, or supplement to any such documents will in any way be construed to
enlarge, change, vary or in any other way affect the obligations of Equitable as
expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Annuitant and Equitable without the consent of any other
person provided that such change does not reduce any Cash Value, Account
Balance, Annuity Value or Annuity Benefit provided before such change and
provided that no rights, privileges or benefits which have accrued to the
Annuitant under the Contract may be reduced or forfeited except by the express
consent of the Annuitant.
The Contract is established for the exclusive benefit of the Annuitant and his
or her beneficiaries.
SECTION 5.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend the Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
shall include, but shall not be limited to, the right to conform the Contract to
reflect changes in the Internal Revenue Code, or in regulations or published
rulings of the Internal Revenue Service, so that each such Contract will
continue to be an Annuity under the Internal Revenue Code.
Any Annuity Benefit, Cash Value, Account Balance, or death or disability benefit
available under the Contract shall not be less than the minimum benefits
required by any statute of the state in which the Contract is delivered.
SECTION 5.03 ASSIGNMENTS AND NONTRANSFERABILITY
The interest of the Annuitant under the Contract is nonforfeitable.
This Contract is nontransferable by the Annuitant.
No interest of the Annuitant under the Contract may be sold, assigned,
discounted, 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
Equitable.
No amount payable under the Contract may be assigned or encumbered by the payee
and, to the extent permitted by law, no such amount will in any way be subject
to any claim against such payee.
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SECTION 5.04 BENEFICIARY
If the Annuitant so elects in writing, any amount that would otherwise be
payable to the designated beneficiary in a single sum may be applied to provide
an Annuity Benefit, on the form of annuity elected by the Annuitant with respect
to the designated beneficiary, subject to the provisions of Section 4.05 and to
Equitable's rules then in effect. If at the death of the Annuitant there is no
election in effect to apply the Death Benefit to provide an Annuity Benefit, the
designated beneficiary may make such an election subject to the provisions of
Section 4.05 and Equitable's rules then in effect.
Unless otherwise specified in the designation, if the Annuitant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Annuitant, and if more than one survive they
will share equally. Unless the Annuitant specifically elects in writing
otherwise, we will treat each beneficiary's share of the Death Benefit payable
as a separate account for the benefit of each beneficiary as described in
Treasury Regulation Section 1.401(a)(9)-8 Q&A A-2(a)(2) or any successor
Regulation.
If upon the death of a person there is no designated beneficiary then living
entitled to receive any single sum payment or any remaining periodic payments
then becoming due to a beneficiary with respect to the Annuitant, Equitable
shall pay such single sum payment or the commuted value of such periodic
payments to the first surviving class of the following classes of successive
preference beneficiaries: (a) the Annuitant's surviving spouse, (b) the
Annuitant's surviving children, as defined under applicable state law, (c) the
executors or administrators of the person upon whose death the payment becomes
due.
Any commuted value shall be determined on the basis of compound interest at the
rate determined by Equitable as consistent with the actuarial basis used in
providing the annuity benefit.
SECTION 5.05 DEFERMENT
Except as provided in this Section, payments by Equitable from the Annuitant's
Account pursuant to the provisions of Sections 3.06, 3.10, and 3.11 will be made
within seven days after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death or disability of the Annuitant.
During any period when (i) the sale of securities or the determination of the
Unit Value is not reasonably practicable because an emergency, defined by the
Securities and Exchange Commission, exists, or the New York Stock Exchange is
closed or trading on such Exchange is restricted, or (ii) the Securities and
Exchange Commission may by order permit postponement for the protection of
persons having interests in the Separate Account, Equitable reserves the right:
(a) to defer payment of the Account Balance of the Annuitant's Investment
Account other than the Guaranteed Rate Account;
(b) to defer payment of any portion of a death or disability benefit arising
from an amount in the Annuitant's Investment Account other than the
Guaranteed Rate Account; or
301-10,000-2002 (FL) Page 27
(c) in the event of (a) above, to defer application of such amounts to provide
any Annuity Benefit permitted under the Contract.
Payments by Equitable from the Guaranteed Rate Account pursuant to Section 3.06,
Section 3.10 or Section 3.11 or any commuted payments arising from an annuity
pursuant to Section 4.05 may be deferred for up to six months after receipt of a
written request for such withdrawal or termination, receipt of due proof of
disability or death of the Annuitant, or receipt of due documentation for such
commutation. If we defer the payment for more than 30 days, then the payment
will include interest based on Moody's Coporate Bond Yield Average-Monthly
Average Corporates as published by Xxxxx'x Investor Services, Inc.
SECTION 5.06 ANNUAL STATEMENT
As soon as practicable after the end of each calendar year Equitable, provided
an Account is being maintained for the Annuitant at the end of such calendar
year, will furnish the Annuitant with a statement showing as of a specified
recent date (1) the total number of Units credited to each Investment Account
other than the Guaranteed Rate Account, (2) the Unit Value of such Investment
Accounts, (3) the Account Balance of each Investment Account, (4) the sum of the
Account Balances of each Investment Account, and (5) the Cash Values of the
Guaranteed Rate Account.
Equitable will furnish annual calendar year reports concerning the status of
this IRA and such information concerning required minimum distributions as is
prescribed by the Commissioner of Internal Revenue.
SECTION 5.07 DISQUALIFICATION
In the event that an annuity purchased hereunder with respect to the Annuitant
fails to qualify as an Annuity as described in Section 1.00, Equitable shall
have the right, upon receiving notice of such fact before the Retirement Date,
to terminate the Contract and pay to the Annuitant the sum of the Cash Values of
the Annuitant's Guaranteed Rate Account and the Account Balances of the
Annuitant's other Investment Accounts less a deduction for any applicable
Annuitant recordkeeping fee and for the appropriate part attributable to the
Annuitant of any Federal income tax payable by Equitable which would not have
been payable if the Annuitant had any annuity under the Contract.
