STATE OF DELIVERY CONTRACT DATE CONTRACT NO. New York [April 1, 2010] [TA00000]
Exhibit 4
SPECIMEN
CONTRACTHOLDER: [ABC Hospital]
STATE OF DELIVERY
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CONTRACT DATE | CONTRACT NO. | ||
[April 1, 2010] | [TA00000] |
Signed at [000 Xxxxxxxxxx Xxxxxx, Xxxxxxxx, Xxx Xxxx 00000]
Transamerica Financial Life Insurance Company (hereinafter referred to as TFLIC) will pay the
benefits provided in this Contract, subject to the provisions on this and the following pages of
this Contract.
This Contract is governed by the laws of the State or Province of Delivery.
The provisions of this Contract are set forth in the following order:
Article 1.
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Definitions | |
Article 2.
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Contributions | |
Article 3.
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Charges | |
Article 4.
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Operation of the Pooled Account | |
Article 5.
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Guaranteed Lifetime Withdrawal Benefit | |
Article 6.
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Withdrawals and Transfers | |
Article 7.
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Administration | |
Article 8.
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Annuity Options | |
Article 9.
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Death Benefits | |
Article 10.
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Rollover Distributions and Portability of Guarantees | |
Article 11.
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Suspension and Termination | |
Article 12.
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Beneficiary Provisions and Joint Coverage | |
Article 13.
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Modification of Contract | |
Article 14.
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General Provisions |
ALL VALUES PROVIDED BY THIS CONTRACT, WHERE BASED ON THE EXPERIENCE OF A SEPARATE ACCOUNT, ARE
VARIABLE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
[Xxxxx X. Xxxxxx, President]
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Countersignature | [Xxxxx X. Xxxxxx, Secretary] | ||
Non-Participating [403(b)] Group Variable Annuity Contract
PSPL09TFLICNC
Article 1. DEFINITIONS
For purposes of this Contract, the following definitions shall apply:
1.1 | “1940 Act” | |
The Investment Company Act of 1940, as amended. | ||
1.2 | “Account Value” | |
The total value of an Account, equal to the sum of the values of the investment in a Variable Investment Option. | ||
1.3 | “Accumulation Period” | |
The Accumulation Period for each Participant is the period during which the Participant may make Contributions into the Participant’s Account. | ||
1.4 | “Age” | |
The age of a Participant is determined as of the Participant’s last birthday. | ||
1.5 | “Annual Period” | |
Each Annual Period for purposes of withdrawal of the Guaranteed Income Amount runs from the date of the Participant’s birthday to the last Business Day immediately preceding the Participant’s next birthday. | ||
1.6 | “Annual Step-Up” | |
The date that the Participant’s Income Base is increased to the Participant’s Account Value if the Account Value is greater than the Income Base. This occurs as of the Participant’s birthday each year or, if that day is not a Business Day, then the next Business Day immediately after the Participant’s birthday. | ||
1.7 | “Annuitant” | |
An individual (a Participant or Participant’s beneficiary) for whom a fixed annuity has been purchased from TFLIC. | ||
1.8 | “Annuity Purchase Date” | |
The date as of which an annuity has been purchased on behalf of an Annuitant. | ||
1.9 | “Beneficiary” | |
The person(s) or entity that a Participant selects to receive the Death Benefit. |
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1.10 | “Business Day” | |
A day on which the New York Stock Exchange is open for business. A Business Day ends as of the close of regular trading on the New York Stock Exchange (generally [4:00] p.m. Eastern Time). A Business Day may close earlier than [4:00 p.m.] Eastern Time if regular trading on the New York Stock Exchange closes earlier. | ||
1.11 | “Code” | |
The Internal Revenue Code of 1986, as amended from time to time. | ||
1.12 | “Contract” | |
This agreement between TFLIC and the Contractholder. | ||
1.13 | “Contractholder” | |
The entity to which TFLIC has issued this Contract. | ||
1.14 | “Contract Year” | |
[The 12 month period beginning on the date of this Contract and each subsequent 12 month period.] | ||
1.15 | “Contributions” | |
The amounts contributed to the SPL on behalf of a Participant under the terms of the Plan. Contributions may include, Participant contributions, Employer contributions, and transfers. | ||
1.16 | “Direct Rollover” | |
A Direct Rollover is a payment by the Contract to the Eligible Retirement Plan specified by the Distributee. | ||
1.17. | “Distributee” | |
A distributee includes an employee or former employee. In addition, the employee’s or former employee’s surviving spouse and the employee’s or former employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. A distributee also includes a participant’s nonspouse designated beneficiary, as provided under the Plan/Program. In the case of a nonspouse beneficiary, the direct rollover may be made to an individual retirement account or annuity (“IRA”) described in Section 408(a) or 408(b) of the Code, or to a Xxxx XXX, that is established on behalf of the designated beneficiary and that will be treated as an inherited IRA. |
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1.18 | “Eligible Retirement Plan” | |
An eligible retirement plan is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code (other than an endowment contract), a Xxxx XXX described in Section 408A of the Code, an annuity plan described in Section 403(a) of the Code, an annuity contract described in Section 403(b) of the Code, or a qualified plan described in Section 401(a) of the Code, that accepts the distributee’s eligible rollover distribution. | ||
An eligible retirement plan shall also mean an eligible plan under section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from the Plan/Program. | ||
The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in section 414(p) of the Code. | ||
If any portion of an eligible rollover distribution is attributable to payments or distributions from a designated Xxxx account, an eligible retirement plan with respect to such portion shall include only another designated Xxxx account of the individual from whose account the payments or distributions were made, or a Xxxx XXX of such individual. | ||
1.19 | “Eligible Rollover Distribution” | |
An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution form excluded under Sections 402(c)(4) and 403(b)(8)(B) of the Code, and, if the Plan/Program so provides, any other distribution(s) that is reasonably expected to total less than [$200] during the year. | ||
1.20 | “Employer” | |
[ABC Hospital.] | ||
[1.21 | “ERISA” | |
The Employee Retirement Income Security Act of 1974, as amended.] | ||
1.22 | “Excess Withdrawal” | |
A withdrawal that reduces the Participant’s Income Base. Prior to the Lock-In Date, all withdrawals are Excess Withdrawals. After the Lock-In Date, a withdrawal in excess of the Guaranteed Income Amount for an Annual Period will constitute an Excess Withdrawal, subject to the exception provided in Section 6.2. |
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1.23 | “Guaranteed Income Amount” | |
An amount that a Participant may withdraw each Annual Period for the Participant’s life (or if the Participant has elected joint coverage, for the lives of the Participant and the Participant’s spouse) without reducing the Income Base, The Guaranteed Income Amount equals a Participant’s Guaranteed Income Rate multiplied by the Income Base, and will be adjusted to reflect subsequent Contributions, an Income Base Adjustment due to an Excess Withdrawal, and changes in the Income Base as of the Annual Step-Up. | ||
1.24 | “Guaranteed Income Rate” | |
The percentage of the Income Base used to determine the Guaranteed Income Amount for an Annual Period. The Guaranteed Income Rate is determined under Section 5.4 based upon the age of the Participant as of the Lock-In Date, or based upon the age of the younger of the Participant or the Participant’s spouse, if joint coverage is elected on the Lock-In Date. | ||
1.25 | “Guarantee Value” | |
The Guarantee Value shall be equal to the present value of the aggregate Guaranteed Income Amount payments assuming: (i) the Guaranteed Income Amount is calculated based upon the Income Base as of the effective date of the event giving rise to the calculation; (ii) if the Participant has not yet established a Lock-In Date, the Participant establishes a Lock-In Date on the later of the Participant’s next birthday or the Participant’s 65th birthday; (iii) mortality assumptions are based on the Annuity 2000 Basic mortality table with projection; and (iv) the interest rate shall be based on the 10-year Treasury constant maturity rate plus 2.00%, as of the effective date. | ||
1.26 | “Income Base” | |
A Participant’s Income Base is equal to the initial Contribution to the Account, and is subsequently adjusted for (i) additional Contributions, (ii) Income Base Adjustments caused by withdrawals and transfers out of the Account that constitute Excess Withdrawals, and (iii) the Annual Step-Up. | ||
1.27 | “Income Base Adjustment” | |
The amount by which the Income Base is reduced with respect to an Excess Withdrawal as provided in Section 5.7. | ||
1.28 | “Incremental Contribution” | |
A Contribution that exceeds any outstanding Excess Withdrawal at the time of Contribution. | ||
1.29. | “Lock-In Date” | |
The Business Day that a Participant elects to lock in the Guaranteed Income Amount under this Contract. |
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1.30 | “Participant” | |
An individual who is participating in the Plan and for whom a Participant Account is being maintained under this Contract. | ||
1.31 | “Participant Account” | |
The account maintained by TFLIC under the Contract for each Participant with respect to funds held on his or her behalf and which reflects the total value of the Participant’s interest in a Variable Investment Option. [Participant benefits, once vested, are non-forfeitable.] | ||
1.32 | “Plan” | |
[ABC Hospital 403(b) Plan.] | ||
[1.33 | “Schwab Personal Choice Retirement Account® (“PCRA”)” | |
A Participant-directed individual brokerage account maintained with Xxxxxxx Xxxxxx & Co., Inc.] | ||
1.34 | “SEC” | |
The United States Securities and Exchange Commission. | ||
1.35 | “Secure Path for Life (“SPL”) | |
Pooled Account No. 44, a separate investment account established by TFLIC in accordance with New York law for the investment of amounts allocated to it under this and other group contracts issued by TFLIC and which is registered with the SEC as a unit investment trust under the 1940 Act. | ||
1.36 | “Target Date Funds” | |
The [Vanguard Target Retirement Funds,] which are registered mutual funds made available by the [Vanguard Group.] | ||
1.37 | “Underlying Funds” | |
The registered mutual funds that are purchased by the Variable Investment Options pursuant to the terms of the Contract, including the Target Date Funds. | ||
1.38 | “Unit” | |
The measure by which the value of the Participant’s interest in a Variable Investment Option is determined. The value of a Unit may increase or decrease and is not guaranteed. | ||
1.39 | “Variable Investment Option” | |
A subaccount of Pooled Account No. 44 which invests in the applicable corresponding Underlying Fund. |
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Article 2. CONTRIBUTIONS
2.1. Contributions
The Employer will make deposits to this Contract as directed by the Participants under the terms of
the Plan. These deposits will include: Contributions made through salary reduction, any rollover or
transferred amounts accepted by TFLIC on behalf of Participants, and any other permissible amounts.
Subject to Sections 2.2, 2.4, and 2.5, Contributions may be made at any time provided such
Contributions are made in a manner consistent with the requirements
of [ERISA] [and the U.S.
Department of Labor.]
[In no event will the amount of contributions made pursuant to a salary reduction agreement for any
Participant for any calendar year be in excess of the applicable elective deferral limit described
in Code Section 402(g), except to the extent permitted under Section 414(v) of the Code, if
applicable. Such contributions include elective deferrals for the employee under the Contract and
any other elective deferrals under the Plan under which the Contract is purchased and under all
other plans, contracts or arrangements of the Employer.]
[The annual additions to the Contract may not exceed the applicable limitations of Code Section
415(c) (treating Contributions and other additions as annual additions).]
It is the responsibility of the Employer to collect Contributions for deposit under this Contract
by salary reduction or otherwise and to promptly remit them to TFLIC, in a format approved by
TFLIC, with the information necessary for proper allocation under this Contract. Such information
will include a list of individual Participants and the amount of Contribution for each Participant.
2.2. Age Restrictions
An initial Contribution may not be made by a Participant or by the Employer on behalf of a
Participant unless such Participant is at least age 50 and is not older than age 75 as of the date
of the initial Contribution.
2.3. Allocation of Contributions
Upon receipt by TFLIC of the Contractholder’s signed acceptance of the Contract and necessary
allocation information, Contributions which are received by TFLIC for a Participant will be
allocated to the applicable Variable Investment Option under the terms of the Plan and this
Contract. Upon electing to invest in the SPL, Participant Contributions shall be invested in the
applicable Variable Investment Option listed on Appendix A according to the Participant’s birth
year. Each Variable Investment Option in turn invests in the Underlying Fund listed on Appendix A.
A Participant may not select another Variable Investment Option available under the Contract, and
cannot transfer to another Variable Investment Option. Subject to the terms of the Plan,
Participants are permitted to transfer amounts to and from other investment options available under
the Plan.
2.4. Minimum Contribution after Lock-In Date
After a Participant elects a Lock-In Date pursuant to Article 5, a Participant may make additional
Contributions to the Participant’s Account, subject to a minimum Contribution of [$5,000.]
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2.5. Restrictions on Contributions after a Complete Withdrawal
A Participant may not make new Contributions to the SPL for up to one year after a complete
withdrawal or transfer out of SPL.
[2.6. Discontinuance of Contributions for a Participant
If Contributions are discontinued for a Participant for any reason, including severance from
employment, the Contractholder is required to give written notice of
such discontinuance to TFLIC. The Participant’s Account will continue to be held by TFLIC and all provisions of this Contract
will remain in full force and effect until this account is distributed under the terms of the Plan
and this Contract.]
2.7. Grace Period
A 31 day grace period from the due date of any deposits or payments required under this Contract
will be granted, except for any expense charges due on the Date of Transfer.
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Article 3. Charges
3.1. Guaranteed income Benefit Charge
A Guaranteed Income Benefit Charge of [1.20%] is currently charged daily against the assets
allocated to the Variable Investment Options. The Guaranteed Income Benefit Charge relates to
the guaranteed lifetime withdrawal benefit provided under the
Contract. TFLIC reserves the right, by
giving the Contractholder [90] days advance written notice, to increase the Guaranteed Income
Benefit Charge at any time at its sole discretion. The Guaranteed Income Benefit Charge may not be
changed more frequently than once in a calendar year, nor will the Guaranteed Income Benefit Charge
exceed [1.70%] on an annual basis unless otherwise approved by the New York Insurance Department
and if applicable, the SEC.
3.2. Mortality and Expense Risk and Administrative Fees.
A combined Mortality and Expense Risk and Administrative Fee of [.85%] is charged daily against the
assets allocated to the Variable Investment Options.
3.3. Underlying Fund Expenses.
Variable Investment Options invest in corresponding Underlying Funds. Those Underlying Funds charge
fees that are in addition to the fees and charges under this Contract. Accordingly, the Variable
Investment Options of the SPL incur these expenses as they invest in the Underlying Funds. These
fees affect the market value of the Variable Investment Options, but are not charges directly
imposed under this Contract.
[3.4. Contract Charge.
TFLIC reserves the right to deduct an annual Contract Charge not to exceed [$100] from a
Participant’s Account to reimburse TFLIC for administrative
expenses under the Contract.]
[3.5. Additional Services.
In the event TFLIC provides services at the request of the Contractholder not specifically provided
for in this Contract (or in any administrative agreement between TFLIC and the Contractholder), the
charge for such service(s) and the payment due date will be determined by written agreement between
TFLIC and the Contractholder before these charges are incurred. [These services may include, but
are not limited to (a) corrective adjustments to Participant Accounts due to an Incorrect
allocation made as a result of misinformation provided by the Contractholder; [(b) account audits;]
[and (c) calculation of benefit options performed more
frequently than annually.]]
[3.6. Third Party Charges.
In the event TFLIC incurs third party charges on behalf of or at the request of the Participant,
these charges will be deducted directly from such Participant’s Account. These charges may include
but are not limited to (a) charges for checks returned for insufficient funds or (b) charges for
overnight delivery requested by the Participant.]
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[3.7. Schwab PCRA Charge.
Each Participant establishing a Schwab PCRA as an investment option outside the Contract is charged
[$200] per Contract Year. Such charge will be deducted at the earlier of (a) the Participant’s
termination of participation under the Contract, (b) the Participant’s termination of the Schwab
PCRA, or (c) the end of each Contract Year.]
3.8. Plan Administrative Services.
The Plan has engaged Diversified Investment Advisors, Inc., (“Diversified”), an affiliate of TFLIC,
to provide certain retirement plan recordkeeping and administrative services to the Plan. To the
extent the Plan has authorized the deduction of certain fees payable to Diversified from
Participant accounts, such administrative fees may be deducted from a Participant’s Account in the
SPL on the same basis as other investment options available under the Plan.
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Article 4. Operation of Pooled Account No 44
4.1. General.
All amounts allocated to the SPL, Pooled Account No. 44, are owned by TFLIC and although the assets
therein are the property of TFLIC, all rights of the Contractholder and the Participant in such
assets are as defined in this Contract. Income, gains and losses whether or not realized from
assets allocated to the SPL shall be credited or charged against the SPL without regard to other
income, gains or losses of TFLIC. The assets in the SPL may not be charged with liabilities which
arise from any other business of TFLIC.
4.2. Variable Investment Options.
Each Variable Investment Option of the SPL, pursuant to its fundamental investment objective and
its investment policies, will invest all of its investable assets in the Underlying Funds. TFLIC
may, at its sole discretion, establish new Variable Investment Options of the SPL or eliminate one
or more such Variable Investment Options if marketing needs, tax considerations or investment
conditions warrant. Without limiting the foregoing, TFLIC may establish new Variable Investment
Options in the event that new [Vanguard Target Retirement Funds] are established, and may establish
an appropriate age range for Participants to be assigned to such new Variable Investment Option
pursuant to this Contract. Any new Variable Investment Options may be made available to existing
Contractholders on a basis to be determined by TFLIC. TFLIC has the right to amend Appendix A by
providing written notice to the Contractholder to reflect changes
made pursuant to this Section 4.2.
4.3. Valuation.
The value of a Unit on a Business Day for each Variable Investment Option of the SPL equals the net
asset of value of the Variable Investment Option, minus liabilities, if any, accrued on that
Business Day, divided by the total number of Units outstanding in that Variable Investment Option
on such Business Day.
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Article 5. Guaranteed Lifetime Withdrawal Benefit
5.1. Withdrawals of Guaranteed Income Amount.
TFLIC guarantees that a Participant may take withdrawals each Annual Period starting at the Lock-In
Date until the Participant’s death, in an amount equal to the Guaranteed Income Amount. If the
Participant elects joint coverage as described in Section 5.9, then TFLIC guarantees that a
Participant may take withdrawals each Annual Period starting at the Lock-In Date until the later of
the death of the Participant or the Participant’s spouse.
5.2. Withdrawals of Guaranteed Income Amount when the Account Value Equals Zero.
TFLIC will make one or more payments each Annual Period from its general account that in the
aggregate will equal the Guaranteed Income Amount if the Participant’s Account Value has been
reduced to zero, and the Participant’s Guaranteed Income Amount is greater than zero on or after
the Lock-In Date.
5.3. Calculation of Guaranteed Income Amount.
Prior to the Lock-In Date, the Guaranteed Income Amount equals zero. After the Lock-In Date, the
Guaranteed Income Amount on any Business Day equals the Income Base multiplied by the Guaranteed
Income Rate in effect as of the close of that Business Day.
5.4. Calculation of Guaranteed Income Rate.
A Participant’s Guaranteed Income Rate shall initially be determined on the Participant’s Lock-In
Date. The Guaranteed Income Rates currently in effect are set forth in the Guaranteed Income Rate
Table in Appendix B. If the Participant elects single coverage, the Participant’s Guaranteed Income
Rate shall equal the applicable percentage associated with: (i) the Participant’s age on the
Lock-In Date, and (ii) the Participant’s election of single coverage. If the Participant elects
joint coverage, the Participant’s Guaranteed Income Rate shall equal the applicable percentage
associated with: (i) the age of the younger of the Participant or the Participant’s spouse on the
Lock-In Date, and (ii) the election of joint coverage. Changes in the Guaranteed Income Rate Table
pursuant to Section 5.5. and Contributions after the Lock-In Date pursuant to Section 2.4 shall
cause a blended Guaranteed Income Rate pursuant to Section 5.6.
5.5. Changes in Guaranteed Income Rate Table.
TFLIC reserves the right to change the Guaranteed Income Rate table set forth on Appendix B at any
time upon at least [90] days’ prior written notice. Any change to the Guaranteed Income Rate table
applies to future Contributions to the Contract. In the event a Participant has made Contributions
before and after changes have been made to the Guaranteed Income Rate table, TFLIC shall establish
a blended Guaranteed Income Rate at the Lock-In Date pursuant to
Section 5.6 below.
5.6. Blended Guaranteed Income Rate.
A Participant shall receive a blended Guaranteed Income Rate if (i) a Participant makes an
Incremental Contribution to SPL after a change in the Guaranteed Income Rate Table pursuant to
Section 5.5, and/or (ii) a Participant makes an Incremental Contribution to SPL after the Lock-In
Date at an age that would qualify the Participant to receive a different Guaranteed Income Rate.
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The blended Guaranteed Income Rate shall equal (i) the sum of (A) all Incremental Contributions
(prior to giving effect to the new Incremental Contribution) multiplied by the first Guaranteed
Income Rate, plus (B) the additional Incremental Contribution multiplied by the Guaranteed Income
Rate applicable based on the current Guaranteed Income Rate table and the Participant’s age at the
time of the Incremental Contribution; (ii) divided by the sum of
all Incremental Contributions.
5.7. Calculation of Income Base.
Upon an initial Contribution to the SPL, the Participant’s Income Base is equal to the value of
that Contribution. Thereafter, the Income Base is (i) increased by the value of each subsequent
Participant Contribution, and (ii) increased to the Account Value at the Annual Step-Up if the
Account Value is greater than the Income Base as of the Business Day of the Annual Step-Up. The
Participant’s Income Base is reduced by the amount of the Income Base Adjustment as a result of
each Excess Withdrawal. The Income Base Adjustment equals the greater of (a) the amount of the
Excess Withdrawal, or (b) the amount of the Excess Withdrawal multiplied by the ratio of the Income
Base (prior to the Excess Withdrawal) over the Account Value (before the Participant’s Account
Value is reduced by the amount of the Excess Withdrawal). Transactions effecting a change in a
Participant’s Income Base will be reflected in the Income Base calculation generally within 48
hours. Participants that make Contributions within 48 hours of a scheduled withdrawal of the
Guaranteed Income Amount will not see any applicable increase in the Guaranteed Income Amount
reflected until the next scheduled Guaranteed Income Amount withdrawal.
5.8. Election of Lock-In Date.
In order to elect a Lock-In Date and start withdrawals of the Guaranteed Income Amount, a
Participant must (i) attain age 55 (and a spouse must attain age 50 for the Participant to elect a
Lock-In Date under joint coverage); (ii) be entitled to make withdrawals under the terms of the
Plan, and (iii) be eligible to receive a Guaranteed Income Amount equal to at least $250. At the
Lock-In Date, the Participant must: (i) establish joint or single life coverage; and (ii) establish
the automated payment schedule for withdrawals of the Guaranteed Income Amount. A Participant
seeking to establish a Lock-In Date and take in-service withdrawals of the Guaranteed Income Amount
must be fully vested in the Account Value in the SPL under the terms of the Plan. The Participant
will give TFLIC written notice whenever he or she elects to establish a Lock-In Date pursuant to
the applicable election form provided by TFLIC.
5.9. Joint Coverage.
A Participant may elect joint coverage provided that he or she has attained the minimum age of 55
years old, and the Participant’s spouse is at least 50 years old, on the Lock-In Date. There is no
additional charge for joint coverage, but: (i) a lower Guaranteed Income Rate will apply if a
Participant elects joint coverage, and (ii) the Guaranteed Income Rate will be based on the age of
the younger of the Participant or the Participant’s spouse. Under joint coverage, the Participant’s
spouse may continue to receive withdrawals of the Guaranteed Income Amount for the life of the
spouse pursuant to Section 12.3. Joint coverage can only apply to the person a Participant is
legally married to on the Lock-In Date. TFLIC must receive proof of marriage and the spouse’s birth
certificate in order to establish joint coverage. The election to establish joint coverage and the
designation of the spouse that is the beneficiary of the joint coverage is irrevocable after the
Lock-In Date. A Participant may not add or remove joint coverage after the Lock-In Date.
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Article 6. WITHDRAWALS AND TRANSFERS
6.1. Participant Withdrawals
A Participant shall have the right to direct TFLIC by written notice that all or a portion of his
or her Account be withdrawn and paid to him/her, or to a successor funding agent on behalf of the
Participant, subject to the terms of the Plan. Such payment shall be made in cash within seven days
after receipt of such notice except that such payment may be deferred to the extent as may be
permitted under applicable federal or state laws, rules and regulations. In determining the value
of the Units to be withdrawn as provided above, the date used will be the Business Day specified by
the Participant with respect to such withdrawal but in no event earlier than the Business Day on
which the Participant’s request is received by TFLIC. A withdrawal shall be an Excess Withdrawal
that reduces the Participant’s Income Base pursuant to Section 5.7 if: (i) the withdrawal is made
prior to the Lock-In Date; or (ii) the withdrawal is made after the Lock-In Date and is in excess
of the Guaranteed Income Amount for the Annual Period, subject to the exception provided in Section
6.2.
[In
accordance with the restrictions of Section 403(b)(11) of the Code, amounts attributable to
Contributions made after December 31, 1988 pursuant to a salary reduction agreement may be paid to
the Participant only after the Participant attains age 59 1/2, has a severance from employment,
dies or becomes disabled (within the meaning of Code Section 72(m)(7)), or due to hardship under
the terms of the Plan/Program (but only from principal, not including earnings); or if permitted
under the Plan/Program, in the case of a qualified reservist distribution, the date on which a
period referred to in subclause (III) of Code Section 72(t)(2)(G)(iii) begins.]
6.2. Required Minimum Distributions.
[Requirements similar to the requirements of Code Section 401(a)(9) and requirements similar to the
incidental death benefit requirements of Code Section 401(a) will be met with respect to this
Contract. The Code Section 401(a)(9) requirements shall apply to benefit accruals after December
31, 1986.] If a Participant elects the automatic required minimum distribution withdrawal feature
at the Lock-In Date or thereafter, TFLIC shall determine the amount the Participant would need to
take as a withdrawal to comply with the requirements of Section 401(a)(9) for the applicable
calendar year (“RMD Amount”). TFLIC shall then make a distribution to the Participant such that the
total of such distribution and the Guaranteed Income Amount payments equal the applicable RMD
Amount. Such an additional distribution made pursuant to this
Section 6.2 shall not constitute an
Excess Withdrawal by the Participant for purposes of this Contract.]
6.3. Severance from Employment.
Upon a Participant’s severance from employment, his or her Participant Account will continue to be
held by TFLIC and all provisions of this Contract will remain in full force and effect until the
Participant’s Account is distributed in accordance with the provisions of the Plan and this
Contract. If the Plan requires automatic distribution of a Participant Account following
termination of employment (a so-called “auto-cashout”), such distribution will be made in
accordance with the Plan provisions, provided that a Participant who was not eligible to make a
Direct Rollover to the SecurePath for Life IRA Contract shall receive the greater of their Account
Value or the Guarantee Value upon the distribution of the Participant’s Account.
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6.4. Other Withdrawals
TFLIC may make withdrawals from the Participant’s Account as follows: (i) for refunds or other
distribution of Contributions as may be required to comply with the Code or any other statute of
similar import; (ii) for charges for services described in Sections 3.4, 3.5, 3.6, 3.7, and 3.8 to
the extent not paid directly by the Contractholder as determined by TFLIC.
6.5. Transfers of Funds From This Contract
A Participant in SPL shall have the right to direct TFLIC that all or a designated portion of the
Participant’s Account be transferred to other investment options
under the Plan. Transfers may not
be made during any period of suspension of the Contract, except as TFLIC may approve in writing. A
transfer from the Participant’s Account shall be an Excess Withdrawal that reduces the
Participant’s Income Base pursuant to Section 5.7 if: (i) the transfer is made prior to the Lock-In
Date; or (ii) the transfer is made after the Lock-In Date and is in excess of the Guaranteed Income
Amount for the Annual Period, subject to the exception provided in Section 6.2.
In determining the value of the Units to be transferred in accordance with the above, the date used
will be the Business Day specified by the Participant with respect to each such transfer but in no
event earlier than the Business Day on which the Participant’s request is received by TFLIC. Each
such transfer of funds will be made within [seven] days after the applicable Business Day, except
that such transfer may be deferred to the extent permitted under applicable federal or state laws,
rules and regulations.
6.6. Transfer of Funds to this Contract
Subject to the restrictions on Contributions set forth in Sections 2.3, 2.4, and 2.5, a Participant
shall have the right to direct that all or a portion of the funds under other investment options
under the Plan which are made available by TFLIC be transferred to the applicable Variable
Investment Option of the SPL provided that no such transfer shall be made during any period of
suspension of this Contract without TFLIC’s written consent.
[6.7. Transfer of Funds from this Contract to the Schwab PCRA
A Participant shall have the right to direct TFLIC that all or a designated portion of the
Participant’s Account be transferred to his or her Schwab PCRA, subject to the following conditions
and limitations: (i) no such transfer shall be made during any period of suspension of this
Contract without TFLIC’s written consent; and (ii) the minimum transfer amount is currently
[$2,000] for the initial investment in the Schwab PCRA, and is currently [$500] for subsequent
investments. A transfer from the SPL shall be an Excess Withdrawal that reduces the Participant’s
Income Base pursuant to Section 5.7 if: (i) the transfer is made prior to the Lock-In Date; or (ii)
the transfer is made after the Lock-In Date and is in excess of the Guaranteed Income Amount for
the Annual Period, subject to the exception provided in Section 6.2.
In determining the value of the Units to be transferred in accordance with the above, the date used
shall be the Business Day specified by the Participant with respect to each such transfer but in no
event earlier than the Business Day on which the Participant’s request is received by TFLIC. Each
such transfer of funds will be made within [seven] days after the applicable Business Day, except
that such transfer may be deferred to the extent permitted under applicable federal or state laws,
rules or regulations.]
15
[6.8. Transfer by the Participant to this Contract from the Schwab PCRA
Subject to
the restrictions on Contributions sect forth in Sections 2.3, 2.4, and 2.5, a Participant
shall have the right to direct TFLIC to transfer to the applicable Variable Investment option of
the SPL any amounts invested in his or her Schwab PCRA.]
16
Article 7. ADMINISTRATION
7.1. Information to be Provided to TFLIC
The Contractholder shall provide TFLIC with information that TFLIC may reasonably require for the
administration of the Contract. TFLIC reserves the right to inspect, at any reasonable time, the
records of the Contractholder which have a bearing on the coverages available under this Contract.
TFLIC is entitled to rely conclusively upon all information furnished by the Contractholder and
Participant and shall be fully protected in acting in accordance with any written or telephone
instruction or other communication believed to be genuine.
7.2. Statements
As of the end of each Contract Year [quarter,] TFLIC shall furnish the Contractholder with a
statement of the transactions under this Contract for that period and the total amount invested
under this Contract.
As of the end of each Contract Year [quarter,] TFLIC shall furnish each Participant with a
statement which indicates the total amount of Contributions to and distributions from his or her
Participant Account during such period, the total amount available in this account as of the last
day of such period, the amount of the Income Base and, if applicable, the Guaranteed Income Amount.
17
Article 8. ANNUITY OPTIONS
8.1. Forms of Annuity
The forms of annuity shall be those made available by TFLIC. These forms shall include, but need
not be restricted to (1) life annuity with a period certain of 5 or 10 years, (2) life annuity with
no period certain, (3) a contingent annuity. In no event shall the available forms include one that
violates Section 401(a)(9) of the Code or IRS Rev. Ruling 73-239 or any successor ruling.
TFLIC shall issue to each Participant for whom an annuity benefit has been purchased under this
Contract a non-transferable annuity certificate stating the amounts and terms of payment of such
benefits.
8.2. Fixed Annuity Benefit
A Participant may elect to withdraw all or a portion of the value of the Participant’s Account and
apply such amount to the purchase of a fixed annuity benefit. The value of the Participant Account
which is to be used to purchase a fixed annuity benefit shall be withdrawn from the applicable
Variable Investment Option as of the Business Day coincident with or next following receipt by
TFLIC of written notice. As of the Participant’s Annuity Purchase Date, the amount withdrawn shall
be reduced by any premium taxes, if applicable, and the remainder applied to purchase a fixed
annuity benefit. The amount of the annuity benefit will be determined by (1) the amount applied to
purchase the annuity, (2) the form of annuity elected, and (3) the non-participating single premium
immediate group annuity purchase rates in effect on the Annuity Purchase Date. However, subject to
the provisions of Section 13.1, in no event will such annuity purchase rates declared by TFLIC for
the first five Contract Years result in an annuity benefit that is less than an annuity benefit
determined in accordance with the Annuity Purchase Rate Table in Appendix C of this Contract or the
non-participating single premium immediate group annuity purchase rates in effect on the Annuity
Purchase Date for contracts in the same class of contracts as this Contract, whichever provides a
higher annuity benefit.
8.3. Restrictions on Election of Annuity Options
On or after the Participant’s termination of employment, an annuity benefit may not be elected if
the vested value of the Participant’s account under the Plan is
equal to or less than [$5,000,] or
any other involuntary cash out amount specified in the Plan, or would provide an annuity benefit of
less than [$20] per month.
18
Article 9. DEATH BENEFITS
9.1. | Payment of Participant Account | |
If a Participant dies prior to the commencement of benefits and while a Participant Account is still being maintained for him or her under this Contract, the Participant’s Account shall be distributed to the Participant’s beneficiary in a single sum or periodic cash distributions, or applied to purchase an annuity, as elected by the beneficiary in writing subject to the provisions of this Contract. In addition, a surviving spouse that is the beneficiary of a Participant that elected joint coverage with respect to that spouse shall be eligible to continue investing in the SPL, subject to the terms of the Plan. | ||
[9.2. | Code Section 401(a)(9) | |
Any provisions of the Contract to the contrary notwithstanding, the requirements of Code Section 401(a)(9) and the incidental death benefit requirements of Code Section 401(a) will be met with respect to this Contract. The Code Section 401(a)(9) requirements shall apply to benefit accruals after December 31, 1986. Except as otherwise provided in the final 403(b) regulations, the distribution rules in Section 401(a)(9) of the Code will be applied to this Contract in accordance with the provisions in Treas. Reg. §1.408-8.] |
19
Article 10. ROLLOVER DISTRIBUTIONS AND PORTABILITY OF GUARANTEES
10.1. Eligible Rollover Distributions
Notwithstanding any provision of the Contract to the contrary that would otherwise limit a
Distributee’s election under this Contract, a Distributee may elect, at the time and in the manner
prescribed by the payer of the Eligible Rollover Distribution, to have any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in
a Direct Rollover. Such a Direct Rollover will constitute a withdrawal from the SPL.
10.2. Portability of Guarantees
A Distributee may elect to have any portion of an Eligible Rollover Distribution paid directly to
the SecurePath for Life IRA Contract, if otherwise eligible for coverage under such Contract. If
the Distributee transfers directly to the SecurePath for Life IRA Contract the total Account Value,
then the Distributee shall be issued a contract or certificate that reflects the Income Base, and,
if applicable, the Guaranteed Income Amount, the Distributee established under this Contract, as of
the Business Day on which the Direct Rollover is effected. The portability described in this
Section 10.2. is not available for amounts paid from TFLIC’s general account under Section 5.2.
20
Article 11. SUSPENSION AND TERMINATION
11.1. Suspension of Contract by Contractholder.
The Contractholder may suspend this Contract by giving TFLIC written notice. Upon receipt by TFLIC
of such notice, this Contract is immediately suspended.
11.2. Suspension of Contract by TFLIC.
TFLIC may suspend this Contract by giving the Contractholder written notice if:
[a) It is determined that the Plan does not comply with the requirements of Section [403(b)] of the
Code, [or of ERISA,]] or
b) Contributions required in accordance with Section 2.1 are not received by TFLIC, or
c) TFLIC determines that it can no longer continue to provide benefits under this Contract because
of a change in the Plan, or
d) TFLIC receives written notice from the Contractholder to transfer assets under this Contract to
a successor funding agent, or
e)
TFLIC is advised that TFLIC’s service agent, Diversified, has received or has given notice that
it will no longer be providing recordkeeping and administrative services to the Plan, or
f) The Employer files a petition for bankruptcy.
Upon receipt of such written notice by the Contractholder, this Contract will immediately be placed
in suspension.
11.3. Effect of Contract Suspension
If this Contract is suspended, such suspension shall be considered irrevocable, and the Contract
shall continue in suspension, unless the Contract is restored to full force and effect by written
agreement between the Contractholder and TFLIC.
During the suspension period, (1) no further Contributions may be made to the Contract, and (2) any
expenses which may apply under this Contract shall continue to be withdrawn. Acceptance of any
Contributions during the suspension period shall in no way obligate TFLIC to accept additional
Contributions.
11.4. Result of Contract Suspension
TFLIC or the Contractholder may, during the period of suspension, initiate a transfer of the total
value of all Participant Accounts, in cash, by giving written notice of the date of transfer to the
other party to this Contract. TFLIC or the Contractholder may require that the date of transfer not
be earlier than [90] days from the date notice is received requesting the transfer. The total value
of all Participant Accounts will be transferred, in a single sum, on the date of transfer to the
successor funding agent designated by the Contractholder in writing.
21
11.5. Impact of Contract Suspension on Guaranteed Income Amount
Upon suspension of the Contract, a Participant eligible to make a Direct Rollover to the SecurePath
for Life IRA Contract may elect to make such a Direct Rollover, and shall thereby continue the
guarantees provided under this Contract in accordance with Section 10.2. If a Participant is not
otherwise eligible to make a Direct Rollover to the SecurePath for Life IRA Contract, such
Participant shall receive the greater of their Account Value or the Guarantee Value upon the
transfer of all Participant Accounts pursuant to Section 11.4.
11.6. Termination of Contract.
Upon
depletion of all the assets under the Contract, this Contract shall terminate and TFLIC shall
be relieved of all further liability to the Plan. TFLIC will continue to be responsible for (i)
payments with respect to any annuity benefits purchased under this Contract; and (ii) payments of
the Guaranteed Income Amount to Participants where the Participant’s Account Value has reduced to
zero.
22
Article 12. BENEFICIARY PROVISIONS AND JOINT COVERAGE
12.1. Designation and Change of Beneficiary
A Participant may designate a beneficiary to receive any payment of a death benefit due upon the
death of such Participant and may subsequently change the beneficiary designation. Such designation
or change will take effect upon receipt by TFLIC of written notice of the designation or change. If
a Participant elects joint coverage on the Lock-In Date pursuant to Section 5.9, the Participant’s
spouse must be named as the Beneficiary of the Account as of the Lock-In Date.
12.2. Payment of Death Benefit to Beneficiary
Before making payment of a death benefit to a beneficiary, TFLIC shall require proof of the death
of the Participant who designated such beneficiary. Payment of a death benefit to a beneficiary as
provided in this Contract shall be made in accordance with the beneficiary designation in effect at
the time of the Participant’s death.
12.3. Payment of Guaranteed Income Amount to Spouse after Participant’s Death
If joint coverage was elected by the Participant at the Lock-In Date, the Participant’s spouse may
continue to receive withdrawals of the Guaranteed Income Amount for the life of the spouse in lieu
of taking payment of the death benefit as a lump-sum. The Guaranteed Income Amount shall not be
available to the Participant’s spouse after the Participant’s death if, on the date of the
Participant’s death: (i) the spouse elected on the Lock-In Date has died; (ii) the Participant and
spouse elected on the Lock-In Date are no longer legally married; or (iii) the spouse elected on
the Lock-In Date is no longer the Participant’s beneficiary under the Plan.
12.4. DISCLOSURE UNDER SUPPLEMENT NO. 1. TO NY INSURANCE DEPARTMENT CIRCULAR LETTER NO. 27
Pursuant to the Federal Defense of Marriage Act, same-sex marriages are not recognized for purposes
of federal law. Therefore, the favorable tax treatment provided by federal tax law to an
opposite-sex spouse is NOT available to a same-sex spouse. Same-sex spouses should consult a tax
advisor prior to purchasing annuity products that provide benefits based upon status as a spouse,
and prior to exercising any spousal rights under an annuity.
12.5. Absence of Beneficiary Designation
If no beneficiary designation is in effect at the time of the Participant’s death, TFLIC may, at
its option, make payment to the Participant’s estate.
23
Article 13.
MODIFICATION OF CONTRACT
13.1. Changes to Annuity Purchase Rate Table
TFLIC reserves the right at any time to change the Annuity Purchase Rate Table and related rates of
interest if any changes in the tax laws are determined in TFLIC’s discretion to increase the tax
payable on earnings attributable to reserves for this Contract or on gain attributable to this
Contract. TFLIC shall provide written notice to the Contractholder at least [30] days before any
such change is to become effective. No such change shall apply to any annuity benefits purchased
for Annuitants on Annuity Purchase Dates prior to the effective date of change.
13.2. Changes in Operation of Separate Account
Subject to compliance with applicable laws and, when required by law, approval of the
Contractholder and/or Participants and any appropriate regulatory authority, TFLIC reserves the
right to make the following changes:
(1) | To operate the Variable Investment Options in any form permitted under the 1940 Act or in any other form permitted by law; | |
(2) | To take any action necessary to comply with or obtain and continue any exemptions from the 1940 Act; | |
(3) | To transfer any assets invested in a Variable Investment Option to another Variable Investment Option or to one or more separate accounts, or to add, combine or remove Variable Investment Options; | |
(4) | To substitute, for the interests of the Underlying Funds held by any of the Variable Investment Options, interests in another investment company or any other investment permitted by law; and | |
(5) | To make any necessary technical changes in the Contract in order to conform with any of the above described actions or as may be required or permitted by applicable laws affecting, the SPL and/or the Contract. |
24
Article 14. GENERAL PROVISIONS
14.1. Contract
This Contract has been issued in consideration of and in reliance on the Contractholder’s
application and all representations made therein. This Contract and the attached copy of the
Contractholder’s application constitute the entire Contract
between TFLIC and the Contractholder.
The purpose of this Contract is to provide benefits to the Participants under the terms of the
Plan. Subject to the rights of TFLIC and the Contractholder, no funds under this Contract will ever
be used for, or diverted to, purposes other than the exclusive benefit of the Participants.
All statements made by the Contractholder or by Participants shall be deemed representations and
not warranties.
Only the President, the Secretary or a Vice President of TFLIC has the authority to modify, enlarge
or vary this Contract, or to waive any requirement or provision thereof.
14.2. Amendment of Contract
This Contract may be amended by TFLIC as provided by its terms or by agreement between TFLIC and
the Contractholder.
No amendment of the terms of this Contract shall be effective unless agreed to by TFLIC in writing
signed by the President, the Secretary or a Vice President of TFLIC and, unless otherwise provided
for by the terms of this Contract, agreed to in writing by the Contractholder. In any event,
however, TFLIC reserves the right to amend this Contract to conform its provisions to applicable
Federal and State law.
No Participant or other person has any right of approval of any action amending or suspending this
Contract. No amendment of this Contract shall affect annuity benefits purchased under this Contract
prior to the effective date of such amendment.
14.3. Agents of TFLIC
TFLIC may, to the extent permitted by law, engage or employ Diversified or any other suitable
agents or advisers, and pay their reasonable expenses and compensation, as it may determine is
necessary or desirable for the expeditious and effective performance of its duties under this
Contract.
14.4.
Meaning of “Receipt by TFLIC”
Any provision in this Contract requiring “receipt by TFLIC” or “received by TFLIC”, or “direct
TFLIC by written notice” (or any other comparable language) shall mean that such payments or notice
must be received by Diversified, the servicing agent for TFLIC, at [000 Xxxxxxxxxx Xxxxxx,
Xxxxxxxx, Xxx Xxxx 00000] unless a different address or agent is designated in a written notice to
the Contractholder.
25
14.5. No longer offering SPL
TFLIC
reserves the unilateral right, by giving the Contractholder [90] days advance written notice,
not to accept any contributions or transfers into the SPL for the purpose of no longer offering the
SPL as an investment option.
14.6. Contract Assignability
This Contract and its rights may not be transferred or assigned without TFLIC’s prior written
consent.
14.7. Assignment of Benefits
The benefits of or arising out of this Contract may not be assigned, transferred or subjected to
surrender or anticipation, or used to satisfy the debts of any person, except as may otherwise be
provided in this Contract or by law.
14.8. Not a Party to the Plan
TFLIC is not a party to the Plan and reserves the right to disregard any amendment to the Plan
after the Contract Date or any successor Plan which would have an adverse financial effect on
TFLIC, which enlarges or expands TFLIC’s obligations or duties under this Contract or which
decreases TFLIC’s rights under this Contract.
14.9. Enforceability
If any provision of this Contract is held invalid or unenforceable, the remaining provisions of
this Contract shall not be affected, and this Contract shall be construed and enforced as if the
invalid provision had not been included under the Contract.
14.10. Voting Rights
To the extent required by law, TFLIC shall vote all shares held in Underlying Funds at regular and
special shareholder meetings in accordance with the instructions received from the Contractholder.
14.11. Transferability
This Contract is non-transferable.
14.12. Misstatement of Age
If TFLIC determines that the age or any other fact affecting the coverage or the payment or amount
of benefit has at any time been misstated with respect to any Participant, or if applicable, the
Participant’s spouse, the benefit payable by TFLIC at any time shall be such as the amount used to
purchase the benefit would provide on the basis of the correct facts.
Any overpayments made by TFLIC by reason of any misstatement shall be charged against, and any
underpayment resulting therefrom shall be added to, any benefit payments made or to be made with
respect to the Participant involved.
26
Appendix A
VARIABLE INVESTMENT OPTIONS
Birth Year of Participant | Variable Investment Option | Underlying [Target Date Fund] | ||
*
|
[SecurePath for Life Retirement Income | [Vanguard Target Retirement Income Fund | ||
[1942 or earlier
|
SecurePath for Life Retirement Income | Vanguard Target Retirement Income Fund | ||
1943-1947
|
SecurePath for Life 2010 | Vanguard Target Retirement 2010 Fund | ||
1948-1952
|
SecurePath for Life 2015 | Vanguard Target Retirement 2015 Fund | ||
1953-1957
|
SecurePath for Life 2020 | Vanguard Target Retirement 2020 Fund | ||
1958-1962
|
SecurePath for Life 2025 | Vanguard Target Retirement 2025 Fund | ||
1963-1967
|
SecurePath for Life 2030 | Vanguard Target Retirement 2030 Fund | ||
1968-1972
|
SecurePath for Life 2035 | Vanguard Target Retirement 2035 Fund | ||
1973-1977
|
SecurePath for Life 2040 | Vanguard Target Retirement 2040 Fund | ||
1978-1982
|
SecurePath for Life 2045 | Vanguard Target Retirement 2045 Fund | ||
1983-1987]
|
SecurePath for Life 2050 | Vanguard Target Retirement 2050 Fund | ||
*
|
SecurePath Money Market] | Transamerica Money Market VP] |
* | Participants are not currently assigned to these Variable Investment Options, but TFLIC reserves the right to (i) assign Participants to the SecurePath Money Market option on a temporary basis pending receipt of authorized instructions; and (ii) assign Participants to the SecurePath Retirement Income option in the event that a Target Date Fund combines with the [Vanguard Target Retirement Income Fund] after the Target Date Fund has reached its target date. |
This Appendix may be amended from time to time pursuant to the provisions of Section 4.2. of the
Contract.
27
Appendix B
Guaranteed Income Rate Table
Age at Lock-In Date | Single |
Joint |
||||||
Less than 50 |
[0.00 | %* | [0.00 | %* | ||||
50-54 |
0.00 | %* | 3.00 | %* | ||||
55 |
3.50 | % | 3.00 | % | ||||
56 |
3.60 | % | 3.10 | % | ||||
57 |
3.70 | % | 3.20 | % | ||||
58 |
3.80 | % | 3.30 | % | ||||
59 |
3.90 | % | 3.40 | % | ||||
60 |
4.00 | % | 3.50 | % | ||||
61 |
4.10 | % | 3.60 | % | ||||
62 |
4.20 | % | 3.70 | % | ||||
63 |
4.30 | % | 3.80 | % | ||||
64 |
4.40 | % | 3.90 | % | ||||
65 |
4.50 | % | 4.00 | % | ||||
66 |
4.60 | % | 4.10 | % | ||||
67 |
4.70 | % | 4.20 | % | ||||
68 |
4.80 | % | 4.30 | % | ||||
69 |
4.90 | % | 4.40 | % | ||||
70 |
5.00 | % | 4.50 | % | ||||
71 |
5.10 | % | 4.60 | % | ||||
72 |
5.20 | % | 4.70 | % | ||||
73 |
5.30 | % | 4.80 | % | ||||
74 |
5.40 | % | 4.90 | % | ||||
75+ |
5.50 | %] | 5.00 | %] |
* | A Participant must attain age 55 to elect a Lock-In-Date, and a spouse most attain age 50 for a Participant to elect a Lock-In-Date under joint coverage. |
This Appendix may be amended from time to time pursuant to the provisions of Section 5.5.
28
Appendix C
ANNUITY PURCHASE RATE TABLE
Maximum Amount Required per $10 a month Immediate Life Annuity with 10 Years Certain — First
Monthly Payment Due on Date Annuity is Purchased.
Purchase Rate for annuities | ||||
purchased during the [1st] through | ||||
Age* | [5th] Contract Years | |||
55 |
$ | 3559 | ||
56 |
3472 | |||
57 |
3390 | |||
58 |
3300 | |||
59 |
3215 | |||
60 |
3135 | |||
61 |
3049 | |||
62 |
2959 | |||
63 |
2874 | |||
64 |
2786 | |||
65 |
2703 | |||
66 |
2618 | |||
67 |
2538 | |||
68 |
2451 | |||
69 |
2375 | |||
70 |
2294 | |||
71 |
2217 | |||
72 |
2141 | |||
73 |
2066 | |||
74 |
1996 | |||
75 |
1927 |
* | A Participant’s age will be his or her age at nearest birthday on the Annuity Purchase Date. |
This Table is subject to change by TFLIC as provided in Section 13.10.
The mortality and interest assumptions underlying the annuity purchase rates shown above are as
follows:
Mortality Table
|
Assumed Interest | |
[2000 Annuity with projection]
|
[1.00%] |
Maximum purchase rates for ages not shown and for other forms of annuity will be quoted by TFLIC
upon request. These maximum rates will be based on the actuarial assumptions indicated above.
29
APPLICATION TO TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY
SPECIMEN
Contract No. [TA00000]
Contractholder: [ABC Hospital]
The Contractholder hereby applies to Transamerica Financial Life Insurance Company for the coverage
provided by the above Contract.
The terms of said Contract (including any riders forming a part thereof) are hereby approved and
accepted by the Contractholder.
It is agreed that this application supersedes any previous application made by the Contractholder
for this coverage.
DISCLOSURE UNDER SUPPLEMENT NO. 1 TO NY INSURANCE DEPARTMENT CIRCULAR LETTER NO. 27
Pursuant to the Federal Defense of Marriage Act, same-sex marriages are not recognized for purposes
of federal law. Therefore, the favorable tax treatment provided by federal tax law to an
opposite-sex spouse is NOT available to a same-sex spouse. Same-sex spouses should consult a tax
advisor prior to purchasing annuity products that provide benefits based upon status as a spouse,
and prior to exercising any spousal rights under an annuity.
Dated
at: [New York, NY ]
|
[ABC Hospital]
(the Contractholder)
|
|||||
On
[March 10, 2010]
|
By: | [ ] | ||||
(Authorized Representative) |
[403(b)] Group Variable Annuity Contract
ASPL09TFLICNC
|
SPLfiling |