RELIASTAR
LIFE INSURANCE COMPANY OF NEW YORK
A STOCK COMPANY
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RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(HEREINAFTER CALLED WE, US AND OUR)
The Contract to which this Rider is attached is hereby modified by the
provisions of this Rider. This Rider's provisions control when there is a
conflict between this Rider and the Contract.
This Rider becomes effective as of the Contract Date unless a different date,
the Rider Date, is stated below.
MINIMUM GUARANTEED INCOME BENEFIT
This Rider provides an option to take the Minimum Guaranteed Income Benefit
("MGIB") instead of the annuity benefits payable under the Contract. This option
may only be exercised at specified times, Exercise Dates, as described below.
This Rider has no Cash Surrender Value.
The MGIB is a minimum periodic income. The MGIB will be paid monthly, unless you
elect to receive it less frequently. You can elect to receive the MGIB on a
monthly, quarterly, semi-annual, or annual basis. If you elect to receive the
MGIB, you must provide us a written election within the 30 days prior to an
Exercise Date. Your election will become effective as of the Exercise Date
following receipt of your request. Exercise Dates are shown in the Contract
Schedule. On and after the Exercise Date that you elect to begin receiving the
MGIB: (1) no other benefits under the Contract are payable; (2) no additional
Premium Payments may be made under the Contract; and (3) no further MGIB Charges
will be deducted and all charges under the Contract will cease.
The MGIB is determined as follows:
1) The MGIB Benefit Base on the Exercise Date less any surrender charges and
premium tax is multiplied by; 2) The applicable MGIB Income Plan Factor on
the Exercise Date.
The MGIB Benefit Base for determining the MGIB on the Exercise Date is the
greater of (i) and (ii) below, where:
(i) Is the lesser of the Maximum MGIB Base and the sum of (a) and (b) where:
(a) is the MGIB Rollup Base for Covered Funds; and
(b) is the MGIB Rollup Base for Special Funds.
(ii) Is the MGIB Ratchet Base.
The MGIB Benefit Base is established for the sole purpose of determining the
amount of the MGIB and is not available as a cash surrender or death benefit.
MGIB ROLLUP BASE
If this Rider is effective as of the Contract Date, the initial MGIB Rollup Base
for Covered Funds is the initial premium allocated to Covered Funds. If this
Rider is added to a Contract after the Contract Date, the initial MGIB Rollup
Base for Covered Funds is equal to the Accumulation Value allocated to Covered
Funds on the Rider Date. Thereafter, the MGIB Rollup Base for Covered Funds is
increased by Eligible Premiums paid and allocated to Covered Funds adjusted for
any Partial Withdrawals and transfers, accumulated for the calculation period at
the MGIB Rate.
If this Rider is effective as of the Contract Date, the initial MGIB Rollup Base
for Special Funds is the initial premium allocated to Special Funds. If this
Rider is added to a Contract after the Contract Date, the initial MGIB Rollup
Base for Special Funds is equal to the Accumulation Value allocated to Special
Funds on the Rider Date. Thereafter, the MGIB Rollup Base for Special Funds is
increased by Eligible Premiums paid and allocated to Special Funds adjusted for
any Partial Withdrawals and transfers.
The MGIB Rate is shown in the Contract Schedule. The MGIB Rate will apply only
to the MGIB Rollup Base for Covered Funds. The MGIB Rate will be set to zero on
the earlier of: (1) the Contract Anniversary on which the Owner's attained age
equals the Maximum MGIB Rollup Age shown in the Contract Schedule; or (2) the
date the MGIB Rollup Base is equal to or would exceed the Maximum MGIB Base.
TRANSFERS
Net Transfers from Special and Covered Funds will reduce the applicable MGIB
Rollup Base on a pro-rata basis. This transfer adjustment is equal to (1)
divided by (2) multiplied by (3) where: (1) is the Accumulation Value
transferred; (2) is the Accumulation Value immediately prior to the transfer;
and (3) is the amount of the MGIB Rollup Base immediately prior to the transfer.
Separate adjustments will apply to Covered and Special Funds.
Net transfers from Special Funds to Covered Funds will result in a corresponding
increase in the MGIB Rollup Base for Covered Funds. The amount of such increase
will equal the reduction in the MGIB Rollup Base allocated to Special Funds.
Net transfers from Covered Funds to Special Funds will result in a corresponding
increase in the MGIB Rollup Base for Special Funds. The amount of such increase
will equal the reduction in the MGIB Rollup Base allocated to Covered Funds.
MAXIMUM MGIB BASE
The Maximum MGIB Base is shown in the Contract Schedule. Any addition to the
Accumulation Value due to spousal continuation will have no effect on the MGIB
Rollup Base or the Maximum MGIB Base. Partial Withdrawals will reduce the
Maximum MGIB Base on a pro-rata basis.
MGIB RATCHET BASE
If this Rider is effective as of the Contract Date, the MGIB Ratchet Base is the
initial premium. If this Rider is added to a Contract after the Contract Date,
the initial MGIB Ratchet Base for Covered and Special Funds is equal to the
Accumulation Value on the Rider Date. On subsequent Determination Dates, the
MGIB Ratchet Base is calculated as follows:
(1) Start with the MGIB Ratchet Base from the most recent prior Determination
Date.
(2) Add to (1) any additional Eligible Premiums paid since the prior
Determination Date.
(3) Subtract from (2) any Partial Withdrawal Adjustments for any partial
withdrawals taken since the prior Determination Date.
(4) On a Determination Date that occurs on or prior to the date on which the
Owner's attained age equals the Maximum MGIB Ratchet Age shown in the
Contract Schedule, we set the MGIB Ratchet Base equal to the greater of (3)
or the Accumulation Value minus any fees and charges deducted as of such
date. At any other time, the MGIB Ratchet Base is equal to (3).
Determination Dates are shown in the Contract Schedule.
EXERCISE DATE
A waiting period is required before you can elect to receive the MGIB income.
The waiting period is the time from the Rider Date to the first Exercise Date.
The first Exercise Date is shown in the Contract Schedule. The MGIB must be
exercised in the 30-day period prior to the first Exercise Date or any
subsequent contract anniversary prior to the Annuity Commencement Date.
ELIGIBLE PREMIUMS
Eligible Premiums are premiums paid after the Rider Date, but more than [5]
years before the earliest Exercise Date.
COVERED FUNDS
For purposes of this Rider, any divisions not designated as Special shall be
Covered.
SPECIAL FUNDS
Special Funds, if any, applicable to this Rider and existing on the Contract
Date, are shown in the Contract Schedule. We may classify newly available
divisions as Special Funds from the date of their availability. We may
reclassify an existing division as a Special Fund or remove such designation
upon 30 days notice to you. Such reclassification will apply to amounts
transferred or otherwise added to such division after the date of change.
The MGIB Rollup Base and MGIB Ratchet Base will be reduced by a
Pro-rata Partial Withdrawal Adjustment each time a partial withdrawal
is made. The Pro-rata Partial Withdrawal Adjustment is equal to (1)
divided by (2), multiplied by (3), where: (1) is the Accumulation
Value withdrawn; (2) is the Accumulation Value immediately prior to
withdrawal; and (3) is the amount of MGIB Rollup Base and MGIB Ratchet
Base immediately prior to the withdrawal. Separate adjustments will
apply to Covered and Special Funds for the MGIB Rollup Base. Pro-rata
Partial Withdrawal Adjustments may be greater than dollar-for-dollar
adjustments and therefore may reduce the MGIB Rollup Base and/or the
MGIB Ratchet Base more quickly. Pro-rata reductions will be greater
than dollar-for-dollar if the Accumulation Value prior to the
withdrawal is less than the MGIB Base (Rollup or Ratchet) being
adjusted.
MGIB CHARGES
Charges for this Rider will be deducted in arrears from the Contract's
Accumulation Value allocated to the Variable Separate Account in
proportion to the Accumulation Value in each Division. The rate and
frequency of deduction of charges are shown in the Contract Schedule.
Deduction dates are measured from the Contract Date. The charge is a
percentage of the total MGIB Charge Base as of the deduction date. The
MGIB Charge Base is the greater of (1) the MGIB Rollup Base, and (2)
the MGIB Ratchet Base. The Maximum MGIB Charge is shown in the
Contract Schedule, but we may charge less than the maximum.
If the Contract to which the Rider is attached is terminated by
surrender, cancellation or application of the Contract's value to an
Income Plan, the MGIB charge for the current period will be deducted
from the Accumulation Value prior to termination of the Contract.
Charges will be calculated using the MGIB Charge Base immediately
prior to termination.
PARTIAL ANNUITY BENEFIT OPTION
On any Exercise Date before the MGIB has been exercised, you may elect
to apply up to [50]% of the MGIB Benefit Base to any one of the MGIB
Income Options available. That portion of the MGIB Benefit Base so
applied will be used to determine the MGIB Annuity Income Payments.
Income Payments under this Option will not be less than the Income
Payments the Contract would otherwise provide using the same
percentage of the Contract's Accumulation Value and the same Income
Option. The Contract's Accumulation Value will be reduced on a
pro-rata basis and the reduction will be treated as a Partial
Withdrawal under the Contract. Any subsequent exercise of the MGIB
must be for 100% of the MGIB Benefit Base remaining under the Rider.
PREMIUM TAX
Any premium taxes paid by us relating to premiums for the Contract
will be deducted from the MGIB Benefit Base prior to determining the
amount of MGIB payable.
ALLOCATIONS TO THE GENERAL ACCOUNT
Allocations of Premium or Accumulation Value into Divisions of the
General Account are not allowed while this Rider is in effect.
RIDER TERMINATION
This Rider may not be cancelled by the Owner, unless the Contract is terminated.
This Rider will terminate immediately if any of the following events occur:
1. If the Contract to which this Rider is attached terminates;
2. If you die, unless the Contract is continued on the life of your
spouse, in which case the Rider will continue with your surviving
spouse as Owner;
3. If the Owner is not a natural person and the Annuitant dies;
4. If the Ownership of this Contract changes and the new Owner is other
than the spouse of the previous Owner;
5. If the Accumulation Value is insufficient to pay the MGIB Charge.
NOTIFICATION
The Company will notify you of your options not less than 30 days prior to an
Exercise Date.
The following are the MGIB Income Options available:
1) Income for Life (Single Life or Joint with 100% Survivor) with Period
Certain as indicated below;
2) Any other Income Plan offered by us in connection with the Rider on
the Exercise Date.
For each Option, we will issue a separate written agreement putting the Option
into effect.
If you are age 75 or older on the Exercise Date, your Period Certain must be 7
years or less. If you are age 74 or younger on the Exercise Date, your Period
Certain must be 10 years or less.
MGIB INCOME PLAN FACTORS
MGIB Income Plan Factors are calculated using interest at a rate of 1% per annum
and, where applicable, the Annuity 2000 Mortality Table with improvements based
on Projection Scale G. The number of years of improvement using Scale G for a
given age varies by duration and age at annuitization and is equal to the number
of years since annuitization.
Monthly Income Plan Factors for certain ages are shown below. Factors shown are
per $1000 of Rider proceeds applied to the Income Option. Income Plan Factors
for other ages and/or payment frequencies are available upon request.
Income Payments made under Option 1 will be paid for a minimum period (Certain
Period) and for the life of the payee after the Certain Period. If the payee
dies during the Certain Period, payments will continue until the end of the
Certain Period, but will be paid to the Beneficiary.
Income Plan Factors for Option 1 vary by sex and age of the payee on the
Exercise Date that MGIB payments begins. By age, we mean the payee's age on his
or her birthday nearest the Exercise Date that MGIB payments begin.
The MGIB Income Plan Factors shown below may differ and may be less favorable
from the Income Plan Factors shown in the Contract to which this Rider is
attached.
TABLE OF INCOME FOR LIFE
MALE/FEMALE MALE/FEMALE
AGE 10 YEAR CERTAIN 7 YEAR CERTAIN
50 2.75/2.53 2.76/2.53
55 3.11/2.84 3.12/2.84
60 3.57/3.23 3.60/3.25
65 4.17/3.76 4.24/3.80
70 4.93/4.46 5.09/4.54
75 6.18/5.58
80 7.52/6.97
85 9.00/8.63
90 10.38/10.19
This Rider has no surrender value or other non-forfeiture benefits upon
termination. This Rider may not be cancelled unless the Contract is terminated.
Rider Date: _________________________
(if other than Contract Date)
Signed;
President
PARTIAL WITHDRAWAL ADJUSTMENT EXAMPLE: (DISPLAYED VALUES ARE ROUNDED TO WHOLE
DOLLARS FOR PRESENTATION PURPOSES ; VALUES DURING ACCUMULATION ARE SHOWN AS OF
THE END OF THE YEAR. OWNER IS A MALE, AGED 55 ON THE RIDER DATE. MGIB RATE IS
ASSUMED TO BE 7%.)
ACCUMULATION
YEAR PREMIUM VALUE WITHDRAWAL MGIB ROLLUP BASE MGIB RATCHET BASE
1 100,000 110,000 0 107,000 110,000
2 0 115,000 0 114,490 115,000
3 0 105,000 0 122,504 115,000
4 0 130,000 0 131,080 130,000
5 0 120,000 60,000 70,128 65,000
6 0 72,000 0 75,036 72,000
7 2,000 70,000 0 80,289 74,000*
8 0 80,000 0 85,909 80,000
9 0 70,000 0 91,923 80,000
10 0 75,000 0 95,140** 80,000
AT THE BEGINNING OF YEAR 1, PREMIUM OF $100,000 IS PAID. IT IS ELIGIBLE PREMIUM
(PAID MORE THAN 5 YEARS BEFORE THE FIRST EXERCISE DATE) AND IS THEREFORE
INCLUDED IN THE MGIB ROLLUP AND MGIB RATCHET BASES.
AT THE END OF YEAR 5, A WITHDRAWAL OF $60,000 IS TAKEN WHEN THE ACCUMULATION
VALUE IS $120,000. THIS REDUCES THE ACCUMULATION VALUE TO $60,000 (50%
REDUCTION). THE MGIB ROLLUP BASES AND MGIB RATCHET BASES ARE ALSO ADJUSTED:
MGIB ROLLUP BASE BEFORE WITHDRAWAL = 131,080 X 1.07 = 140,256.
MGIB ROLLUP BASE AFTER WITHDRAWAL = 140,256 X 50% = 70,128.
MGIB RATCHET BASE BEFORE WITHDRAWAL = 130,000.
MGIB RATCHET BASE AFTER WITHDRAWAL = 130,000 X 50% = 65,000.
AT THE BEGINNING OF YEAR 7, A PREMIUM IS PAID THAT IS NOT ELIGIBLE (LESS THAN 5
YEARS BEFORE THE FIRST EXERCISE DATE). THE PREMIUM IS NOT INCLUDED IN THE MGIB
ROLLUP BASE OR THE MGIB RATCHET BASE, BUT IS INCLUDED IN THE ACCUMULATION VALUE.
*THE MGIB RATCHET BASE FOR YEAR 7 ASSUMES THAT THE ACCUMULATION VALUE AT THE END
OF THE 3RD QUARTER OF THAT YEAR WAS $74,000.
** AT THE BEGINNING OF YEAR 10, THE OWNER TRANSFERS 50% OF THE ACCUMULATION
VALUE INTO A SPECIAL FUND. THE MGIB RATCHET BASE IS NOT AFFECTED BY THE
TRANSFER. THE MGIB ROLLUP BASE IS AFFECTED. 50% OF THE MGIB ROLLUP BASE STOPS
ACCUMULATING, AND 50% OF THE MGIB ROLLUP BASE CONTINUES TO ACCUMULATE AT THE
MGIB RATE (7%). THE MGIB ROLLUP BASE AT THE END OF YEAR 10 IS:
(50% X 91,923) + (50% X 91,923 X 1.07) = 45,961 + 49,179 = 95,140.
AT THE END OF YEAR 10, MGIB IS EXERCISED.
THE MGIB BENEFIT BASE EQUALS $95,140 (THE GREATER OF THE MGIB ROLLUP
BASE AND MGIB RATCHET BASE).
THE AMOUNT OF MGIB ALSO DEPENDS ON THE INCOME PLAN SELECTED. ASSUME
THAT THE OWNER IS A MALE, AGE 65 AT TIME OF ELECTION WHO ELECTS A
10-YEAR CERTAIN AND LIFE MONTHLY INCOME. THE MGIB IS CALCULATED AS
FOLLOWS:
MGIB BENEFIT BASE = $95,140
DIVIDED BY 1000 = 95.140
TIMES INCOME FACTOR = 4.17
EQUALS MGIB = $394 (MONTHLY INCOME).
