EXHIBIT 4(a)(ii)
[METLIFE LOGO]
METROPOLITAN LIFE INSURANCE COMPANY
A Stock Company
[000 Xxxx Xxxxxx, Xxx Xxxx, XX 00000]
Contractholder
[ABC Company]
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Group Annuity Contract No. Issue Date
[00000] [Month/Day/Year]
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NOTICE: ANY PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT THAT ARE BASED ON THE
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT ARE VARIABLE AND SPECIFIC DOLLAR
AMOUNTS ARE NOT GUARANTEED. THE DOLLAR AMOUNTS OF SUCH PAYMENTS AND VALUES WILL
INCREASE OR DECREASE, AS SET OUT IN THE CERTIFICATE, DEPENDING UPON THE
INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT.
In consideration of the payments made under this Contract, MetLife agrees to
make the payments, purchased under this Contract, in accordance with and subject
to its terms.
Therefore, the Contractholder and MetLife execute this Contract in duplicate to
take effect as of the Issue Date.
Metropolitan Life Insurance Company
[Contractholder Name]
-------------------------------------- /s/ Xxxxx X. Xxxx /s/ X. Xxxxxx Xxxxxxxxx
--------------------- -----------------------
Xxxxx X. Xxxx C. Xxxxxx Xxxxxxxxx
Senior Vice-President President and Chief
-------------------------------------- and Secretary Operating Officer
Signature
--------------------------------------
Title
-------------------------------------- -------------------------------------------------
Witness Registrar
-------------------------------------- -------------------------------------------------
Date Date
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City and State City and State
-------------------------------------- -------------------------------------------------
Group Annuity Contract
Multi-Purchase Deferred Paid-up Income Annuity
Individual Retirement Annuity
Fixed and Variable Payments
Non-Participating
CONTENTS
SECTION PAGE
------- ----
1 DEFINITIONS................................................. [2]
2 PAYMENTS TO METLIFE ........................................ [4]
3 COMMENCEMENT OF INCOME ANNUITY PAYMENTS..................... [5]
4 DEATH OF AN ANNUITANT....................................... [7]
5 CONTRACT DISCONTINUANCE..................................... [8]
6 GENERAL PROVISIONS.......................................... [9]
TABLE I ANNUITY PURCHASE RATES.................................. [11]
INCOME ANNUITY PAYMENT FORMS.................................... EXHIBIT A
SECTION 1 DEFINITIONS
ANNUITANT/OWNER means a person upon whose life an Income Annuity has
been purchased under this Contract. The Annuitant is the owner of
his or her Income Annuity. As Owner, all rights and benefits under
the Certificate belong to the Annuitant.
ANNUITY PURCHASE RATE means the dollar amount required by Us to
provide a monthly Income Annuity of $1.00 beginning on the Expected
Income Payment Start Date. For a fixed Income Annuity, the rate will
be the best available purchase rate MetLife is offering under
contracts in the class of business to which this Contract belongs,
and will not be less favorable than that specified in Table I of
this Contract.
For a variable Income Annuity, the rates will be determined using
the "Assumed Investment Return" selected by each Annuitant and noted
on their Certificate. The mortality basis for variable Income
Annuity purchases will not be less favorable than that specified in
Table I of this Contract.
ASSUMED INVESTMENT RETURN means the interest rate used to determine
the Annuity Purchase Rates applicable to variable Income Annuity
amounts. It is also the benchmark rate of return against which all
future variable returns will be compared. The Assumed Interest Rate
is selected by the Annuitant and stated in the Certificate.
BENEFICIARY means the person or persons named to receive any Income
Annuity death benefit payable after an Annuitant dies.
BUSINESS DAY means each 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.
CERTIFICATE means the form issued by Us to each Annuitant which
provides a description of the benefits, rights and terms of the
Income Annuity purchased under this Contract.
CODE means the Internal Revenue Code of 1986, as amended.
CONTRIBUTION(s) means an amount received in good order by MetLife to
purchase an Income Annuity under this Contract.
Subject to the minimum dollar amounts specified in Section 2.02, [We
will accept single sum Contributions that are (i) non-taxable
amounts that the Annuitant directed to have transferred from another
Code Section 408 arrangement (except with respect to Code Section
408(p) arrangements, this Contract will not accept transfers or
rollovers of funds attributable to Contributions made by an employer
pursuant to the provisions of a SIMPLE plan that provides a SIMPLE
IRA prior to the expiration of the two year period beginning on the
date an individual first participated in that employer's SIMPLE
plan), (ii) rollover Contributions from another IRA arrangement
permitted under Code Section 408(d)(3); or (iii) rollover
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Contributions from an eligible retirement plan as permitted under
Code Sections 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10) or
457(e)(16).]
DISCONTINUANCE DATE means the date on which You or MetLife elect to
cease adding Annuitants under this Contract.
EXPECTED INCOME PAYMENT START DATE means the date the Annuitant
attains the expected start age noted on the Annuitant's application
and is the date he or she anticipates Income Annuity payments will
begin. The Annuitant may change his or her Expected Income Payment
Start Date by notifying Our Administrative Office or calling the
toll free number. In no event may an Annuitant select a date that is
earlier than the date the Annuitant attains age 50 or, if later, the
second anniversary of the Certificate effective date, nor later than
April 1st of the calendar year immediately following the year in
which the Annuitant attains age 70 1/2.
INCOME ANNUITY means the fixed and variable annuity amounts
purchased by an Annuitant under this Contract.
INCOME PAYMENT START DATE means the date on which an Annuitant's
Income Annuity payments begin.
PURCHASE DATE means the date on which an Income Annuity is purchased
on behalf of those Annuitants from whom a Contribution is received.
SEPARATE ACCOUNT means MetLife's Separate Account E, the commingled
investment account accessed under this Contract and other group
annuity contracts, that we maintain separate from Our other assets,
into which those Contributions for variable Income Annuity amounts
are allocated.
WE, US, OUR, AND METLIFE refer to Metropolitan Life Insurance
Company.
YOU AND YOUR refer to the Contractholder named on the cover page of
this Contract.
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SECTION 2 PAYMENTS TO METLIFE
2.01 PURCHASE PAYMENTS
An Income Annuity amount will be purchased for each Annuitant for
whom an application has been received in good order and a
Contribution equal to or exceeding the minimum amount required (see
Section 2.02) has been made. After the initial Purchase Date,
Contributions may be made by an Annuitant at any time prior to the
Annuitant's Income Payment Start Date.
Unless otherwise provided in Section 5, no Contributions may be made
on and after the Discontinuance Date.
2.02 LIMITATIONS ON CONTRIBUTION AMOUNTS
The initial Contribution amount necessary for an Annuitant to
purchase an Income Annuity under this Contract is $[5000]. Each
subsequent Contribution is subject to a minimum Contribution amount
of $[500] or more per Annuitant. MetLife reserves the right to limit
the total Contributions received on behalf of any one Annuitant to
$[1,000,000].
MetLife, unless it agrees otherwise, will have no liability to
purchase any Income Annuity amount until (i) it accepts the
Contribution in good order and (ii) the Contribution amount received
equals or exceeds the minimum required for such purchase.
2.03 CALCULATION OF INCOME ANNUITY AMOUNT
On the Purchase Date MetLife will determine the amount of Income
Annuity to be purchased by applying the fixed or variable Annuity
Purchase Rate associated with the Annuitant's allocation of the
Contribution received. This calculation will produce a dollar amount
of monthly Income Annuity that is to begin on the Expected Income
Payment Start Date. Each purchase will take into account the
Annuitant's current age [, gender] and the Contribution amount we
received.
Although the form of annuity may be changed at the time Income
Annuity payments are about to begin, the total amount purchased for
an Annuitant will be accrued and reported as though the form of
annuity selected is a life annuity.
The amount of Income Annuity purchased can change based on the
investment performance of the Separate Account and any reallocations
made by the Annuitant. Among the details of the Income Annuity
outlined within the Certificate are those relating to the
calculation of Income Annuity payments, any reallocations, and the
Annuitant's commutation right.
The amount of Income Annuity payable will be adjusted if the Income
Annuity payments start on a date other than the Expected Income
Payment Start Date. The amount of Income Annuity will also be
adjusted if there is a change made in the form of annuity, the
Assumed Investment Return and the frequency of payments.
4
SECTION 3 COMMENCEMENT OF INCOME ANNUITY PAYMENTS
3.01 INCOME PAYMENT START DATES AND ANNUITY FORMS
Income Annuity payments are anticipated to begin on the Annuitant's
Expected Income Payment Start Date. In addition to the form of life
annuity, other annuity forms are available to the Annuitant. The
annuity forms available are specified in Exhibit A.
Although an Annuitant has identified an Expected Income Payment
Start Date, the Annuitant may choose to begin Income Annuity
payments on a date coincident with or prior to a date that is no
later than April 1st of the calendar year immediately following the
year in which he or she attains age 70 1/2. In no event may an
Annuitant select a date that is earlier than the date the Annuitant
attains age 50 or, if later, the second anniversary of the
Certificate effective date.
If the Annuitant notifies Us to begin payments on a date earlier
than the Expected Income Payment Start Date, MetLife must receive
the notice at least [30] days in advance of the revised Income
Payment Start Date. MetLife reserves the right to make the Income
Payment Start Date a date that is [30] days from the date the notice
is received.
At least [90] days before the Annuitant's Expected Income Payment
Start Date, We will send the Annuitant information regarding the
available forms of annuity together with the necessary information
needed in order to begin Income Annuity payments. Information can
also be requested which illustrates how the Income Annuity payments
would differ under any of the other forms of annuity or at different
Income Payment Start Dates.
[On the Annuitant's [70] Th. birthday We will automatically send
information about the available forms of annuity and how to begin
his or her Income Annuity if we have not been notified of the
Annuitant's decision to begin payments before that date. If, after
releasing this information, the Annuitant does not contact Us, his
or her Income Annuity will be scheduled to commence in December of
the year in which he or she attains age [70 1/2 ]. The Income
Annuity payable will, in lieu of the life annuity form, be in the
form of a term certain and life annuity with payments guaranteed for
a period of ten years beginning on the Income Payment Start date].
Once Income Annuity payments start, the Annuitant will not be able
to change the form of annuity.
3.02 PROOF THAT AN ANNUITANT IS ALIVE ON INCOME PAYMENT START DATE
If requested by MetLife, satisfactory proof must be furnished to
MetLife that an Annuitant is alive on the Income Payment Start Date.
On any subsequent date that an Income Annuity payment is due,
MetLife may also request proof that the Annuitant is alive. Such
requests will be made as a part of Our normal auditing procedures,
or if we have reason to believe that the recipient is not alive or
is not receiving the payments to which he or she is
5
entitled. If proof is requested, we need not make any further
payments on behalf of the Annuitant until such proof is received.
3.03 ANNUITY CERTIFICATES
Upon the initial purchase of an Income Annuity amount, MetLife will
issue and deliver to the Annuitant a Certificate describing the
Income Annuity provided under this Contract. At the time Income
Annuity payments begin, the Annuitant will receive an additional
certificate that specifies and describes the form of annuity
elected, the initial amount the Annuitant will receive, how often
the Annuitant will receive payments, and how long the payments will
be received.
3.04 ANNUITY COMMUTATION
At anytime before Income Annuity payments begin, an Annuitant may
elect to withdraw all or a portion of the commuted value of his or
her variable Income Annuity. The commuted value of the variable
Income Annuity amount is the market value of the Contributions held
in the Separate Account. The Annuitant may not commute the fixed
portion, if any, of his or her Income Annuity prior to beginning
Income Annuity payments.
After Income Annuity payments begin and within [60] days of his or
her Income Payment Start Date, an Annuitant may elect to withdraw
all or a portion of the commuted value of his or her Income Annuity.
Such election must be received by MetLife no later than the end of
the [60] day period following the Annuitant's Income Payment Start
Date. The Annuitant is limited to one such election.
Payment will be made on the Income Payment Start Date, or if later,
a Business Day following our receipt of the Annuitant's election. On
the date of the calculation the commuted value for the fixed Income
Annuity amount will be equal to the present value of future Income
Annuity payments valued using the mortality and interest rate
assumptions then being used by Us to purchase Income Annuity amounts
under contracts in the class of business to which this Contract
belongs.
The payment of the entire commuted value amount will result in the
cancellation of the Income Annuity and MetLife will make no further
payments. A partial payment of the commuted value amount will result
in a pro-rata reduction of the Income Annuity payments. The pro-rata
reduction will be applied separately to the fixed and variable
Income Annuity amounts and will be a percentage equal to the actual
amount paid divided by the entire commuted value of the fixed and
variable Income Annuity amounts, respectively, at the time of
payment.
If after the election the monthly Income Annuity amount would be
less than $[100] payable as a life annuity at age 65, then the
entire commuted value will be paid, and We will make no further
payments to the Annuitant. The commuted value of any portion of an
Income Annuity may be less than the amount of Contributions received
on behalf of the Annuitant. Also, Annuitants should consult with
their legal or tax advisor concerning the rollover of distributions
received from an IRA.
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SECTION 4 DEATH OF AN ANNUITANT
If the Annuitant dies before Income Annuity payments begin, We will
determine and pay to the Beneficiary an amount equal to the Income
Annuity death benefit described in the Certificate. Such payment
will be made following receipt of satisfactory proof of the
Annuitant's death and will be payable in a lump sum or any other
settlement option offered by Us which the Beneficiary selects. All
settlement options must satisfy [Sections 408(b) and 401(a)(9)] of
the Code and the regulations thereunder.
If the Annuitant dies after Income Annuity payments begin, the form
of annuity elected by the Annuitant will determine if there is any
death benefit to be paid. All Income Annuity forms of annuity
purchased under this Contract must satisfy [Sections 408(b) and
401(a)(9)] of the Code and the regulations thereunder.
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SECTION 5 CONTRACT DISCONTINUANCE
You or We may discontinue this Contract at any time by providing the
other party with [30] days advance notice. The Discontinuance Date
will be the date specified in the notice, or, if later, the date
which is [30] days from the date the notice is received. Although
Contributions will continue to be accepted by MetLife to purchase
additional Income Annuity, no new Annuitant applications will be
accepted after the Discontinuance Date.
Any decision to terminate this Contract will not affect any rights
and guarantees Annuitants have with respect to the Income Annuity
amounts purchased on their behalf. MetLife's obligations to those
Annuitants will continue and will have the full force and affect as
if the Discontinuance Date had not occurred.
At any time following the Discontinuance Date MetLife reserves the
right to discontinue accepting additional Contributions and allowing
any further Income Annuity purchases. Annuitants will receive
notification [60] days in advance should MetLife decide to
discontinue accepting additional Contributions. Annuitants may
continue to make purchases during the [60] day notification period.
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SECTION 6 GENERAL PROVISIONS
6.01 REQUIRED REPORTS
Before an Annuitant's Income Payment Start Date, We will
periodically (not less frequently than once each calendar quarter)
send the Annuitant a statement with details on account of [the
Contributions we have received, the annuity amounts purchased, and
the death benefit payable].
6.02 PARTICIPATION; DIVIDENDS
This Contract is non-participating with no provisions for dividends
to be paid.
6.03 METLIFE'S LIABILITY
MetLife's only liability with respect to the payment of Income
Annuity under this Contract is to make the payments provided in the
Certificates issued hereunder. The liability to make such payments
is that of MetLife and not of the Contractholder.
6.04 MISSTATEMENTS
If any relevant fact relating to any Annuitant is found to be
misstated, MetLife will not pay a greater amount of Income Annuity
than that provided by the actual Contribution using the correct
information. Any Income Annuity overpayment will, together with
interest, be deducted from future annuity payments. Any adjustment
due to an Income Annuity underpayment will, together with interest,
be paid upon our receipt of the corrected information. The interest
rate will be [5%] compounded annually.
6.05 CHANGES BY METLIFE
MetLife reserves the right to change any of the following items one
year from the Contract Issue Date and at any time thereafter for all
Annuitants* applicable to purchases made on and after the change:
(a) The Annuity Purchase Rates in effect under this Contract set
forth in Table I.
(b) The amount of the minimum or maximum Contributions specified in
Section 2.02.
* (a) will not be applicable to those who became Annuitants
prior to the effective date of the change.
MetLife will give You notice of any such change not less than [90]
days before its effective date. No such change in any of the
foregoing items will be made effective earlier than one year after
the effective date of any such previous change in that item. In
addition no such change will impact any Income Annuity purchased
prior to the date of such change.
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All Certificates issued under this Contract are intended to comply
with [Section 408(b)] of the Code. We reserve the right to interpret
the provisions of this Contract and the Certificates thereunder
accordingly; and to amend the Contract and Certificates as necessary
in order to comply with federal tax rules applicable to such annuity
contracts. We will notify You of any amendments, and when required
by law, We will obtain Your approval and the approval of the
appropriate regulatory authorities.
6.06 DISCONTINUANCE OF PURCHASES
Once an Annuitant begins receiving Income Annuity payments, MetLife
will not accept Contributions from the Annuitant to purchase any
additional Income Annuity amounts.
6.07 COMMUNICATIONS; PAYMENTS TO METLIFE
All communications provided for in this Contract will be in writing
unless MetLife otherwise agrees in writing. For this purpose,
MetLife's address is [MetLife Retirement and Savings, Metropolitan
Life Insurance Company, 0000 Xxxxxxxx Xxxxxxx - Xxxxx 000,
Xxxxxxxxxx, XX. 00000,] and Your address will be that which You
designate to MetLife.
All payments to MetLife in accordance with this Contract are payable
to MetLife at the office specified above or such other office or
offices which MetLife may designate.
Any communication that may be made by You may instead be made by a
party or parties designated by You for such purpose.
6.08 ENTIRE CONTRACT
This Contract, including any amendments and endorsements, is the
entire Contract between the parties. Any Contractholder statements
will be deemed representations and not warranties. Only an
authorized officer of MetLife is authorized to amend, modify or
waive any provision of this Contract.
6.09 TERMINATION OF CONTRACT
This Contract will terminate upon MetLife's and Your fulfillment of
all the duties and obligations arising under this Contract.
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TABLE I ANNUITY PURCHASE RATES
[Deferred Fixed Income Annuity - Life Annuity
Under this form income payments are payable monthly from the Income
Payment Start Date, if the Annuitant is then living, to the date of
the last payment before the Annuitant's death.
Integral Years from
Purchase Date to Cost to Purchase $1.00 of Monthly Income
Income Payment Annuity if the Income Payment Start Date is
Start Date the Annuitant's 65th Birthday
------------------- -------------------------------------------
5 $213.47
10 $184.14
15 $158.85
20 $137.02
25 $118.20
30 $101.96
Unisex
The actuarial basis for the rates shown above is:
o Blended Annuity 2000 Mortality Table C (60% male), with age
set back 7 years
o 3% interest rate
o 14% expense load
On request MetLife will furnish fixed Income Annuity purchase
payments for other forms of annuity and for ages or durations not
shown above.
Deferred Variable Income Annuity
The actuarial basis for the rates applicable to variable deferred
income annuity purchases is:
o Blended Annuity 2000 Mortality Table C (60% male), with age
set back 7 years
o Interest rate equal to the applicable selected Assumed
Investment Return
On request MetLife will furnish illustrative variable Income Annuity
purchase payments for the requested age, duration, Assumed
Investment Return and form of annuity.]
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EXHIBIT A INCOME ANNUITY PAYMENT FORMS
FORMS OF ANNUITY AVAILABLE
[LIFE ANNUITY: Under this annuity form Income Annuity payments are payable to
the Annuitant monthly from the Income Payment Start Date, if the Annuitant is
then living, to and including the date of the last payment payable on or before
the Annuitant's date of death.
TERM CERTAIN AND LIFE ANNUITY: Under this annuity form Income Annuity payments
are payable monthly from the Income Payment Start Date, if the Annuitant is then
living, to and including the date of the last payment payable on or before the
Annuitant's date of death, or, if later, the Term Certain Expiration Date. The
Term Certain Expiration Date is a date that will be any anniversary date between
5 and 30 years after the Income Payment Start Date in accordance with the
Annuitant's election. Annuity payments payable during the Annuitant's lifetime
are payable to the Annuitant. Any annuity payments payable after the Annuitant's
death are payable to the Annuitant's Beneficiary, except that if the beneficiary
is not a natural person, then in lieu of the payment of monthly annuity payments
to the beneficiary the commuted value of such annuity payments, as determined by
Us, will be paid to the Beneficiary. If the Beneficiary is a natural person, and
if neither the Annuitant nor the Annuitant's Beneficiary is living at the time
an Income Annuity payment is payable, the commuted value of the Income Annuity
payments will be paid to (i) the Annuitant's executors or administrators when
the Annuitant dies after the Beneficiary, or (ii) the Beneficiary's executors or
administrators when the Beneficiary dies after the Annuitant.
JOINT AND SURVIVOR LIFE ANNUITY: Under this annuity form Income Annuity payments
are payable monthly from the Income Payment Start Date, if both the Annuitant
and the survivor Annuitant are then living, to and including the date of the
last payment payable on or before the date of death of the second to die of the
Annuitant and the survivor Annuitant. Income Annuity payments made during the
Annuitant's lifetime are payable to the Annuitant. Any Income Annuity payments
made after the Annuitant's death are payable to the survivor Annuitant. Income
Annuity payments made to the survivor Annuitant are a specified percentage, not
greater than 100% as elected by the Annuitant, of the Income Annuity payments
payable to the Annuitant.
TERM CERTAIN JOINT AND SURVIVOR LIFE ANNUITY: Under this annuity form Income
Annuity payments are payable monthly from the Income Payment Start Date, if both
the Annuitant and the survivor Annuitant are then living, to and including the
date of the last payment payable on or before the date of death of the second to
die of the Annuitant and the survivor Annuitant, or, if later, the Term Certain
Expiration Date. The Term Certain Expiration Date is a date that will be any
anniversary date between 5 and 30 years after the Income Payment Start Date in
accordance with the Annuitant's election. Income Annuity payments payable during
the Annuitant's lifetime are payable to the Annuitant.
EXHIBIT A PAGE (2)
Any Income Annuity payments payable after the Annuitant's death are payable to
the survivor Annuitant, if living, otherwise to the Annuitant's Beneficiary. If
the Beneficiary is not a natural person, then in lieu of the payment of monthly
annuity payments the commuted value of the remaining Income Annuity payments, as
determined by Us, will be paid. Income Annuity payments payable to the survivor
Annuitant, or to the Beneficiary, before the Term Certain Expiration Date are
100% of the monthly Income Annuity payments payable to the Annuitant. Income
Annuity payments payable to the survivor Annuitant after the Term Certain
Expiration Date are a specified percentage, not greater than 100% as elected by
the Annuitant, of the Income Annuity payments payable to the Annuitant. If the
Beneficiary is a natural person and if such Beneficiary is not living at the
time an Income Annuity payment is payable, the commuted value of such payments
will be paid to the Beneficiary's executors or administrators.]
