NEW ENGLAND LIFE INSURANCE COMPANY
[000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000]
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GUARANTEED WITHDRAWAL BENEFIT RIDER
This Rider forms a part of the Contract to which it is attached and is effective
upon issuance. In the case of a conflict with any provision of the Contract, the
provisions of this Rider will control. This Rider's provisions will remain part
of the Contract until terminated in accordance with the provisions below.
This Rider amends the Contract by adding the following:
GUARANTEED WITHDRAWAL BENEFIT (GWB)
This Rider guarantees that the total payments that you or your beneficiary will
receive from the Contract over time will at least equal the Guaranteed
Withdrawal Amount (defined in Section 1 below), provided you make withdrawals
from your Contract in amounts equal to or less than the Annual Benefit Payment
(defined in Section 3 below) each Contract Year.
1. GUARANTEED WITHDRAWAL AMOUNT
The Guaranteed Withdrawal Amount is the total amount that you or your
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beneficiary will receive from the Contract over time, provided that
withdrawals from your Contract do not exceed the Annual Benefit Payment
(defined in Section 3 below) in any Contract Year.
Your initial Guaranteed Withdrawal Amount is equal to the Initial Benefit
Base. Your Initial Benefit Base as of the date of issue of this Rider is
shown on the Contract Schedule.
For each Purchase Payment made on or before the GWB Purchase Payment Date
shown in the Contract Schedule, the Guaranteed Withdrawal Amount will be
reset equal to the greater of a) the Guaranteed Withdrawal Amount before
the Purchase Payment and b) the Benefit Base after the Purchase Payment.
When a Purchase Payment is made after the GWB Purchase Payment Date, the
Guaranteed Withdrawal Amount will not change. The GWB Purchase Payment Date
is the last date that Purchase Payments can reset the Guaranteed Withdrawal
Amount, Benefit Base or Annual Benefit Payment as defined below. Your
Guaranteed Withdrawal Amount is not reduced for withdrawals.
The Guaranteed Withdrawal Amount may also be reset as a result of an
Automatic or Optional Reset as described below.
2. BENEFIT BASE
The Benefit Base is the remaining amount that You or Your beneficiary will
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receive from the Contract over time.
Your Initial Benefit Base as of the date of issue of this Rider is shown on
the Contract Schedule.
While this Rider is in force, the Benefit Base will be increased by the
amount of each Purchase Payment made on or before the GWB Purchase Payment
Date, plus an amount determined by multiplying any applicable GWB Bonus
Rate specified on the Contract Schedule to such Purchase Payment. However,
the Benefit Base may not be increased above the GWB Maximum Benefit Base
specified on the Contract Schedule.
The Benefit Base will be decreased by withdrawals from your Contract
(including any applicable Withdrawal Charges). If a withdrawal from your
Contract is not payable to the Owner or Owner's bank account (or Annuitant
or Annuitant's bank account if the Owner is a nonnatural person) or results
in cumulative withdrawals for the current Contract Year exceeding the
Annual Benefit Payment, and the resulting Benefit Base exceeds the Contract
Value, an additional reduction in the Benefit Base will be made. This
additional reduction will be equal to the difference between the Benefit
Base and the Contract Value after the decrease for withdrawals.
The Benefit Base will also be reset as a result of an Automatic or Optional
Reset as described below.
3. ANNUAL BENEFIT PAYMENT
Your initial Annual Benefit Payment is equal to the GWB Withdrawal Rate
shown on the Contract Schedule multiplied by the Initial Benefit Base. For
each Purchase Payment made on or before the GWB Purchase Payment Date, the
Annual Benefit Payment will be reset equal to the greater of a) the Annual
Benefit Payment before the Purchase Payment and b) the GWB Withdrawal Rate
multiplied by the Benefit Base after the Purchase Payment.
If a withdrawal from your Contract results in cumulative withdrawals during
the current Contract Year exceeding the Annual Benefit Payment or is not
payable to the Owner or Owner's bank account (or Annuitant or Annuitant's
bank account if the Owner is a nonnatural person), the Annual Benefit
Payment will be recalculated and may be reduced. The new Annual Benefit
Payment will equal the lower of a) the Annual Benefit Payment before the
withdrawal and b) the GWB Withdrawal Rate multiplied by the Contract Value
after the decrease for withdrawals.
If this Contract is a Qualified Distribution Program (defined in Section 4
below), after your first Contract Year, your Annual Benefit Payment will be
set equal to your Required Minimum Distribution Amount, if applicable, for
that year, if greater.
The Annual Benefit Payment will also be reset as a result of an Automatic
or Optional Reset.
4. QUALIFIED DISTRIBUTION PROGRAM
Your Contract is a Qualified Distribution Program if:
1) This Rider is made part of a Contract subject to the requirements of
Section 401(a)(9) of the Internal Revenue Code of 1986, as may be
subsequently amended (the "Code") and the regulations thereunder; and
2) You withdraw the "Required Minimum Distribution Amount". The "Required
Minimum Distribution Amount" is the required minimum distribution
under Section 401(a)(9) of the Code and the regulations thereunder
that is withdrawn from Your Contract automatically when you enroll in
Our automatic minimum distribution service. Our automatic minimum
distribution service is based on information relating to this Contract
only. We ignore all other Contract Values from other funding vehicles.
If you do not enroll in Our automatic minimum distribution service,
required minimum distribution withdrawals under Section 401(a)(9) of
the Code will not be treated as Required Minimum Distribution Amounts
and Your Annual Benefit Payment will not be increased to the Required
Minimum Distribution Amount under this Rider.
Withdrawals intended to satisfy Section 72(t) or (q) of the Code, or from
non-qualified or Xxxx XXX Contracts are not considered to be withdrawn from
a Qualified Distribution Program.
5. AUTOMATIC RESET
On each GWB Automatic Reset Date specified on the Contract Schedule, if
any, a reset of the Benefit Base, the Annual Benefit Payment and the
Guaranteed Withdrawal Amount will take place, provided your attained age
(or the age of the oldest Joint Owner, or the age of the Annuitant if the
Owner is a non-natural person) on the GWB Automatic Reset Date shown on the
Contract Schedule does not exceed the Maximum Reset Age shown on the
Contract Schedule.
The Benefit Base is reset to the greater of a) the Benefit Base immediately
before the reset and b) the Contract Value on the date of the reset plus an
amount determined by multiplying any applicable GWB Bonus Rate specified on
the Contract Schedule by such Contract Value, but no greater than the GWB
Maximum Benefit Base specified on the Contract Schedule. The Annual Benefit
Payment is reset to the greater of a) the Annual Benefit Payment before the
reset and b) the GWB Withdrawal Rate multiplied by the Benefit Base after
the reset. The Guaranteed Withdrawal Amount is reset to the greater of a)
the Guaranteed Withdrawal Amount before the reset and b) the Benefit Base
after the reset.
6. OPTIONAL RESET
On or after the GWB First Optional Reset Date specified on the Contract
Schedule, you may elect an Optional Reset provided the amount of time that
has elapsed since the last Optional or Automatic Reset is at least equal to
the GWB Optional Reset Waiting Period specified on the Contract Schedule
and provided that the Contract Value exceeds the Benefit Base immediately
before the reset, and provided your attained age (or the age of the oldest
Joint Owner, or the
age of the Annuitant if the Owner is a non-natural person) on the Optional
Reset Date does not exceed the Maximum Reset Age.
You must provide written notice of your intention to elect an Optional
Reset within the GWB Optional Reset Window Period to our Administrative
Office or in accordance with our Administrative Procedures. The Optional
Reset will take effect on the next Contract Anniversary following receipt
of such Optional Reset notice.
The optional reset will:
a) reset the Benefit Base and the Guaranteed Withdrawal Amount equal to
the Contract Value on the date of the reset plus an amount
determined by multiplying any applicable GWB Bonus Rate specified on
the Contract Schedule by such Contract Value, subject to a maximum
value equal to the GWB Maximum Benefit Base specified on the
Contract Schedule.
b) reset the Annual Benefit Payment equal to the GWB Withdrawal Rate
multiplied by the Contract Value on the date of the reset, and
c) reset the GWB Fee Rate to the level that the Company currently
charges for this Rider upon Optional Reset, up to the Maximum
Optional Reset Fee Rate.
7. SEPARATE ACCOUNT PROVISIONS
While this Rider is in force, we will not allow allocations or transfers to
the Subaccounts Not Available with GWB Rider shown in the Contract
Schedule, including any investment strategies available using the
Subaccounts Not Available with GWB Rider.
8. GWB RIDER CHARGE
On each Contract Anniversary, the GWB Rider Charge shall be deducted from
your Contract Value. This charge is equal to the GWB Fee Rate shown on the
Contract Schedule multiplied by the Guaranteed Withdrawal Amount on such
Contract Anniversary (before taking into account any Automatic or Optional
Reset occurring on such Contract Anniversary)
The initial GWB Fee Rate is shown on the Contract Schedule. The GWB Fee
Rate may be changed as a result of an Optional Reset you elected (see
Section 6).
If the GWB rider terminates (except for a termination due to death), a pro
rata portion of the GWB Rider Charge will be assessed based on the number
of full months from the last Contract Anniversary to the date of
Termination.
The GWB Rider Charge will result in the cancellation of Accumulation Units
from each applicable Subaccount (and/or reduction of any portion of the
Contract Value allocated to any other accounts included by Rider) in the
ratio the portion of the Contract Value in such Subaccount (and/or other
account) bears to the total Contract Value.
9. CANCELLATION OF RIDER
You may elect to cancel this Guaranteed Withdrawal Benefit Rider in
accordance with our Administrative Procedures or in writing to our
Administrative Office during the GWB Cancellation Window Period, if any,
specified on the Contract Schedule. Such cancellation will take effect upon
receipt of such cancellation notice.
10. SPOUSAL CONTINUATION
If the surviving spouse continues the contract under the Spousal
Continuation provisions of the contract, and this rider is in effect at the
time of the continuation, then the same terms and conditions that applied
to the owner under this rider will continue to apply to the surviving
spouse.
11. TERMINATION OF RIDER
The Guaranteed Withdrawal Benefit Rider will terminate upon the earliest
of:
a) The effective date of the cancellation of the rider
b) The date you make a full withdrawal of your Contract Value;
c) The date you apply all of your Contract Value to an Annuity Option;
d) The date there are insufficient funds to deduct the GWB Rider Charge
from your Contract Value;
e) Death of the Owner or Joint Owner (or the Annuitant if the Owner is a
non-natural person) unless the contract is continued under the spousal
continuation provisions of the contract and the surviving spouse's
attained age is less than 85;
f) Change of the Owner or Joint Owner (or the Annuitant if the Owner is a
non-natural person) for any reason; or
g) Termination of the Contract to which this Rider is attached.
12. EFFECT OF RIDER TERMINATION
If this Rider terminates because you cancel the Rider (Section 11(a)) or
you apply your entire Contract Value to an Annuity Option (Section 11(c)),
no GWB Rider Charge will be deducted from your Contract Value after the
charge deducted on the effective date of the cancellation or the
application of your entire Contract Value, and no benefits will be paid as
a result of this Rider on or after the effective date of the cancellation
or the application of your entire Contract Value.
If this Rider terminates because you withdraw your entire Contract Value
(Section 11 (b)) or your Contract Value is reduced to zero (Section 11
(d)), and your Benefit Base after the withdrawal is greater than zero, the
Company will make monthly payments to you (the Owner or Joint Owner or the
Annuitant if the Owner is a non-natural person) or at any frequency
acceptable to you and us (but not less frequently than annually) until the
Benefit Base is depleted. Such installment payments shall be equal in
amount, except for the last payment that will be in an amount necessary to
reduce the Benefit Base to zero. The total annual payment will not exceed
the Annual Benefit Payment. If you or the Joint Owner (or the Annuitant if
the Owner is a non-natural person) dies while these payments are being
made, payments will continue to your beneficiary
If this Rider terminates as a result of your death or the Joint Owner's
death (or the death of the Annuitant if the Owner is a non-natural person)
(Section 11 (e)), your beneficiary may elect a GWB Death Benefit in lieu of
all other death benefits provided by this Contract. The GWB Death Benefit
will be to pay the Benefit Base to your beneficiary in monthly payments or
at any frequency acceptable to your beneficiary and us (but not less
frequently than annually). Such installment payments shall be equal in
amount, except for the last payment, which will be in an amount necessary
to reduce the Benefit Base to zero. Except to the extent required under
Federal income tax law, the total annual payment will not exceed the Annual
Benefit Payment. If your beneficiary dies while such payments are made, the
payments will continue to the beneficiary's estate unless such other
designee has been agreed to by us in writing. Should your beneficiary
choose to take one of the other death benefits provided by this Contract,
no benefit shall be payable under this Rider.
The Company reserves the right to accelerate any payment that is less than
$500. Also, the Company will accelerate payments if needed in order to
comply with Internal Revenue Service minimum distribution requirements if
this rider is made part of a contract subject to the requirements of
section 401(a)(9) of the Code and the regulations thereunder (including a
Xxxx XXX annuity after the death of the Owner). All other rights under your
Contract will cease.
If this Rider is attached to a non-qualified annuity contract under Federal
income tax law, any death benefit hereunder must be paid out over a time
period and in a manner that satisfies section 72(s) of the Code. If the
Owner (or the Annuitant, where the Owner is not a natural person) dies
prior to the "annuity starting date" (as defined under the Code and
regulations there under), the period over which the GWB Death Benefit is
paid cannot exceed the remaining life expectancy of the payee under the
appropriate IRS tables. For purposes of the preceding sentence, if the
payee is a non-natural person, the GWB death benefit must be paid out
within 5 years from the date of death. Payments under the GWB death benefit
must begin within 12 months following the date of the above referenced
death.
If this Rider terminates under Sections 11(b), 11(d) or 11(e), no
additional Purchase Payments may be made.
New England Life Insurance Company has caused this Rider to be signed by its
President and Secretary.
/s/ [SIGNATURE] /s/ [SIGNATURE]
[Secretary President]
