VCA-24
THE PRUDENTIAL [Logo] THE PRUDENTIAL
INSURANCE COMPANY
OF AMERICA
agrees to pay the benefits provided under this contract in accordance with
and subject to its terms.
Contract-Holder:
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Effective Date: Group Annuity Contract No.:
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Provisions and Schedules Jurisdiction:
attached:
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THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA
By:
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Title: President /s/ Xxxxxx X. Xxxxxx
Date:
-------------------------- Secretary /s/ Xxxxxxx X. Xxxxx
Attest
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Date:
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Group Annuity Contract providing for contributions on account of
Participants. Annual determination of participation in divisible surplus.
All subject to the provisions of this contract.
NOTICE - ALL CONTRACTUAL VALUES OR PAYMENTS PROVIDED BY THIS CONTRACT, WHEN
BASED ON THE INVESTMENT RESULTS OF A PRUDENTIAL SEPARATE ACCOUNT DESCRIBED IN
THIS CONTRACT, ARE VARIABLE, SUBJECT TO CHANGE BOTH UP AND DOWN, AND ARE NOT
GUARANTEED AS TO DOLLAR AMOUNT.
GVA-1000-87 (24)
TABLE OF CONTENTS
PROVISION Serial Page
I. CONTRIBUTIONS - ACCOUNTS - CHARGES
1.1 Contributions. . . . . . . . . . . . . . . . . . . 100
1.2 Participant's Accounts . . . . . . . . . . . . . . 100
1.3 Annual Account Charge. . . . . . . . . . . . . . . 110
1.4 Reports. . . . . . . . . . . . . . . . . . . . . . 110
II. INVESTMENT ACCOUNT - INVESTMENT MANAGEMENT
UNIT VALUES - SUBACCOUNTS INCLUDED
2.1 The Prudential Variable Contract
Account-24 (VCA-24). . . . . . . . . . . . . . . . 200
2.2 Investment Management Fees. . . . . . . . . . . . 200
2.3 VCA-24 Unit Values . . . . . . . . . . . . . . . 210
2.4 Subaccounts Included . . . . . . . . . . . . . . 210
III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS
3.1 Participant's Withdrawals. . . . . . . . . . . . . 300
3.2 Death Payments . . . . . . . . . . . . . . . . . . 300
3.3 Transfers between Related Contracts. . . . . . . . 320
3.4 Transfers to Another Financial Institution . . . . 320
3.5 Transfers Involving a Similar Contract
of Another Employer. . . . . . . . . . . . . . . . 330
IV. DISTRIBUTIONS
4.1 Distributions. . . . . . . . . . . . . . . . . . . 400
4.2 Required Distribution Date . . . . . . . . . . . . 400
4.3 Minimum Required Distributions . . . . . . . . . . 400
4.4 Annuities. . . . . . . . . . . . . . . . . . . . . 410
4.5 Small Annuities and Accounts . . . . . . . . . . . 420
4.6 Payees . . . . . . . . . . . . . . . . . . . . . . 420
V. CHANGES
5.1 Changes by Prudential. . . . . . . . . . . . . . . 500
5.2 Changes by Agreement . . . . . . . . . . . . . . . 500
5.3 Changes to Conform to Law. . . . . . . . . . . . . 500
5.4 Persons Empowered to Act for Prudential. . . . . . 500
VI. DISCONTINUANCE - TERMINATION OF CONTRACT
6.1 Discontinuance of Establishing Participants'
Accounts . . . . . . . . . . . . . . . . . . . . . 600
6.2 Discontinuance of Contributions under
this Contract. . . . . . . . . . . . . . . . . . . 600
6.3 Termination of Contract. . . . . . . . . . . . . . 600
VII. GENERAL TERMS
7.1 Contract-Holder. . . . . . . . . . . . . . . . . . 700
7.2 Communications . . . . . . . . . . . . . . . . . . 700
7.3 Place of Payment -- Currency . . . . . . . . . . . 700
7.4 Information -- Records . . . . . . . . . . . . . . 710
7.5 Misstatements. . . . . . . . . . . . . . . . . . . 710
7.6 Beneficiary. . . . . . . . . . . . . . . . . . . . 710
GVA-1000-87 (24) (as modified by Group Annuity Amendment Form GAA-7793)
TC-100
TABLE OF CONTENTS
(Continued)
Provision Serial Page
7.7 Divisible Surplus. . . . . . . . . . . . . . . . . 720
7.8 Limit on Assignment. . . . . . . . . . . . . . . . 720
7.9 Certificates . . . . . . . . . . . . . . . . . . . 720
7.10 Entire Contract -- Construction. . . . . . . . . . 720
SCHEDULES
Schedule A Forms of Annuity Which May Be Purchased. . . . A-100
Schedule B Life - Payment Certain Annuity . . . . . . . . S-100
Schedule C Life - Contingent Annuity. . . . . . . . . . . S-100
Schedule D Payment Certain Annuity. . . . . . . . . . . . S-100
GVA-1000-87 (24)
TC-110
1.1 CONTRIBUTIONS:
(a) Regular Contributions:
The contributions which are payable under this contract for a Participant
are the Qualified Retirement Contributions described in Section 219(e) of
the Federal Internal Revenue Code of 1986, as amended (the "Code"), which
the Participant has directed for payment hereunder. Contributions will be
transmitted by the Contract-Holder. A Participant is a person for whom
contributions have been paid under this contract and whose Participant's
Accounts (see section 1.2) have not been cancelled.
No contribution may be made for a Participant in or after his tax year in
which he reaches age 70 1/2. Tax year means the one for Federal Income
Tax purposes.
Any contribution for a Participant made on other than a periodic basis
may not be less than $500.
The contributions made for a Participant for any of his tax years are
subject to certain limits. They may not exceed the amounts specified in
Code Section 219(b)(1) for any tax year. If made after the end of a tax
year, they are made in the next year before the filing date for his tax
return in that year. (For most Participants, tax years and calendar years
are the same.)
A contribution may be made for a non-working spouse of a Participant.
However, the sum of the contribution made for the working and non-working
spouses may not exceed the amounts specified in Code Section 219(c)(2)
for any tax year. (A non-working spouse for whom a contribution is made
is a Participant.)
The contribution limits described in the two preceding paragraphs may be
reduced for certain Participants as provided in Code Section 219(g).
(To save words, male pronouns are used in this contract to refer to both
men and women.)
(b) Rollover Contributions:
An amount which qualified as a rollover contribution pursuant to the
Federal Internal Revenue Code may be transferred to and paid under this
contract as a contribution for a Participant. Prudential may require
proof that the amount paid so qualifies.
1.2 PARTICIPANT'S ACCOUNT:
Contributions paid under this contract for a Participant may be invested in
any one or more of the Subaccounts described in section 2.4 as directed by
the Participant. Prudential will establish a separate "Participant's
Account" with respect to each Subaccount in which contributions are
invested on behalf of a Participant. Each Account is expressed in Units of
the applicable Subaccount.
GVA-1000-87(24) (as modified by Group Annuity Amendment Form GAA-7793)
Serial 100 1.1-1.2
Provision II. INVESTMENT ACCOUNT - INVESTMENT MANAGEMENT FEES - UNIT VALUES -
SUBACCOUNTS INCLUDED:
2.1 THE PRUDENTIAL VARIABLE CONTRACT ACCOUNT - 24 (VCA-24):
VCA-24 is a separate investment account of Prudential established pursuant
to a resolution adopted by its Board of Directors. The resolution provides
that this account is to be used for contracts which state that certain
payments and values under them will vary to reflect the investment results
of this account.
The investments held in VCA-24 are intended to be composed primarily of
shares of The Prudential Series Fund, Inc. ("PSF"), an open-end
diversified, management investment company registered under the Investment
Company Act of 1940. VCA-24 is divided into Subaccounts, each of which is
invested only in a corresponding Portfolio of PSF. The Portfolios of PSF
in which the Subaccounts are invested are set forth in section 2.4.
Prudential will invest and reinvest the assets held in each Subaccount in
accordance with the investment objectives and policies established for it.
The value of the assets of a Subaccount is determined daily by multiplying
the number of PSF shares held by that Subaccount by the "Net Asset Value"
of each share and adding the value of dividends declared by PSF for the
corresponding Portfolio but not yet paid.
The "Net Asset Value" per share of each PSF Portfolio is computed by adding
the sum of the value of the securities held by that Portfolio plus any cash
or other assets it holds, subtracting all its liabilities, and dividing the
result by the total number of shares outstanding of that Portfolio at such
time. Liabilities of the Portfolio include the costs of portfolio
transactions, legal and accounting expenses, custodial and transfer agency
fees, and the Investment Management Fees applicable to that Portfolio. (See
section 2.2.)
The total value of the assets of all Subaccounts comprising VCA-24 at all
times will be at least equal to the total reserve liability required by law
for all payments or values which vary in dollar amount to reflect the
investment results of the VCA-24 Subaccounts. Assets held in the VCA-24
Subaccounts equal in value to the reserve liability will be held for the
sole benefit of all contracts which participate in VCA-24. The amount, if
any, by which the total value of the assets of all Subaccounts exceeds the
total reserve liability will be subject to the exclusive control of
Prudential. Thus, Prudential may, from time to time make transfers between
the VCA-24 Subaccounts and its other investment accounts as, in its
judgment experience warrants. A transfer will not affect Prudential's
contractual liabilities under this contract.
2.2 INVESTMENT MANAGEMENT FEES:
On each Business Day, the assets of each PSF Portfolio are reduced by an
Investment Management Fee. The amount of the Fee for each Portfolio on
GVA-1000-87 (24)
Serial 200 2.1-2.2
any Business Day is equal to the product of (a) and (b) where:
(a) is the rate of the Investment Management Fee applicable to the
Portfolio and
(b) is the average daily assets of the Portfolio.
The rate of the Investment Management Fee currently applicable to each
Portfolio is shown in section 2.4. The Investment Management Fee for a
Portfolio may be changed from time to time pursuant to a change in the
investment advisory agreement for that Portfolio. Prudential will notify the
Contract-Holder of any such change.
2.3 UNIT VALUES:
A Participant's participation in one or more Subaccounts of VCA-24 will be
reflected in Units of each such Subaccount.
The following applies to each Subaccount described in section 2.4.
The Unit Value for any Business Day is the dollar value of one Unit for that
Business Day. ("Business Day" means a day the New York Stock Exchange is
open for trading.) The initial Unit Value was $1.00. The Unit Value for any
subsequent Business Day is determined as of the end of that Business Day by
multiplying the Unit Change Factor for that Business Day by the Unit Value
for the immediately preceding Business Day. The Unit Value for any day which
is not a Business Day is equal to the Unit Value for the next Business Day.
The Unit Value will go up or down in accordance with the Unit Change Factor
described below.
The Unit Change Factor for a Subaccount of VCA-24 for any Business Day is
(i) divided by (ii), less (iii) where:
(i) is the value of the assets of the Subaccount as of the end of the
Business Day, but before taking into account any contributions,
withdrawals or transfers made on such Day, and
(ii) is the value of the assets of the Subaccount as of the end of the
preceding Business Day, and
(iii) is the daily equivalent of 0.75% (the Administrative Expense Charge).
This section may be changed as provided in section 5.1.
2.4 SUBACCOUNTS INCLUDED:
This section contains a description of the Subaccounts included in this
contract. It describes the investment portfolio and other features of each
Subaccount.
GVA-1000-87 (24) (as modified by GAA-7655)
Serial 210 2.2-2.4
VCA-24-B
Subaccount: Bond Subaccount invested in the
Bond Portfolio of PSF (VCA-24-B).
Investments: Primarily medium and
long-term debt securities.
Unit name: VCA-24-B Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective annual
from the assets of the Portfolio: rate of .40%.
GVA-1000-87 (24)
Serial 220-B 2.4
VCA-24-S
Subaccount: Common Stock Subaccount invested in
the Common Stock Portfolio of PSF
(VCA-24-S).
Investments: Primarily common stocks.
Unit name: VCA-24-S Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective annual
from the assets of the Portfolio: rate of .45%.
GVA-1000-87 (24)
Serial 220-S 2.4
VCA-24-AM
Subaccount: Aggressively Managed Flexible
Subaccount invested in the
Aggressively Managed Flexible
Portfolio of PSF (VCA-24-AM).
Investments: Aggressively managed mix of
money market instruments,
long-term bonds and common
stocks.
Unit name: VCA-24-AM Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective annual
from the assets of the Portfolio: rate of .60%.
GVA-1000-87 (24)
Serial 220-AM 2.4
VCA-24-CM
Subaccount: Conservatively Managed Flexible
Subaccount invested in the
Conservatively Managed Flexible
Portfolio of PSF (VCA-24-CM).
Investments: Conservatively managed mix of
money market instruments,
intermediate-term notes and
bonds, and common stocks
of established companies.
Unit name: VCA-24-CM Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective annual
from the assets of the Portfolio: rate of .55%.
GVA-1000-87 (24)
Serial 220-CM 2.4
VCA-24-SI
Subaccount: Stock Index Subaccount invested in
the Stock Index Portfolio of PSF
(VCA-24-SI).
Investments: Primarily common stocks,
invested in such a manner
as to attempt to duplicate
the investment results of the
Standard & Poor's 500
Composite Stock Price Index.
Frequency of Unit
Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective annual
from the assets of the Portfolio: rate of 0.35%.
GVA-1000-87 (24) (as modified by GAA-7655)
Serial 220-SI 2.4
Provision III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS:
3.1 PARTICIPANT'S WITHDRAWAL:
A Participant may make withdrawals from his Participant's Accounts. The
minimum withdrawal from any single Account is $500, or the dollar value of
that Account if smaller. Payment to the Participant will normally be made
within seven days of Prudential's receipt of a duly completed request for
it. However, it may be paid at a later day if permitted under the
Investment Company Act of 1940.
The amount paid to the Participant will be the dollar amount withdrawn less
the withdrawal charge determined from the following table and the Annual
Account Charge if it applies. The amount payable is also referred to as the
"Withdrawal Value."
TABLE
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Withdrawals made in the months
indicated, counting from the day
the first Account of a Participant Withdrawal Charge per $1.00
was established hereunder* being withdrawn.**
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First 24 months $0.06
Next 36 months 0.05
Next 60 months 0.03
Next 60 months 0.02
Thereafter 0.00
*Or, if earlier, the day an Account was established for him under a
companion contract (or under a similar contract if section 3.5 applies).
**No charge is made after the amount withdrawn equals the contributions made
for the Participant.
As of the first day no amounts remain in a Participant's Account under this
contract or in an Account for him under a companion contract, all of his
Accounts hereunder are cancelled.
This section may be changed as provided in section 5.1.
3.2 DEATH PAYMENTS:
If a Participant dies before his Participant's Accounts has been cancelled,
the dollar value will be paid to his Beneficiary (see section 7.6).
However, proof of the Participant's death must be received by Prudential
before any payment will be made. Death benefits payable under the contract
to a Participant's Beneficiary prior to the date (i) on which an annuity
has been purchased for the Participant or (ii) on which minimum
distributions have commenced to the Participant pursuant to Code Section
401(a)(9) will be paid as set forth in this section 3.2. Death benefits
payable under the contract to a Participant's Beneficiary on or after
the date on which an annuity has been purchased
GVA-1000-87(24) (as modified by Group Annuity Amendment Form GAA-7793)
Serial 300 3.1-3.2
for the Participant or on which minimum distributions have commenced to the
Participant pursuant to Code Section 401(a)(9) will be paid as set forth in
section 4.1 of the contract.
The Beneficiary may elect payment in any of the following forms, unless the
Participant has directed otherwise:
(a) a lump sum;
(b) an annuity form described in section 4.4, other than one which
provides for payment after the death of the Annuitant to a Contingent
Annuitant;
(c) any other settlement method to which Prudential consents; or
(d) a combination of all or any two of (a), (b) and (c) above.
Any lump sum payment to a Beneficiary will be subject to the following:
- If the lump sum is payable to the Participant's spouse, payment of such
lump sum will be made no later than the later of (i) the December 31 of
the calendar year following the one in which the Participant's death
occurred or (ii) the December 31 of the calendar year in which the
Participant would have attained age 70 1/2.
- If the lump sum is payable to a Beneficiary who is other than the
Participant's Spouse, payment of such lump sum will be made no later than
the December 31 of the calendar year in which the fifth anniversary of
the Participant's death occurs.
If a lump sum payment is made to the Beneficiary from an Account within one
year of the Participant's death, it will be at least equal to the
contributions made to that account for him less any withdrawals and
transfers.
If payments are to be made to a Beneficiary in a form other than a lump sum,
such payments will be subject to the following:
- If the Beneficiary is the Participant's spouse, payments must commence no
later than the later of (i) the December 31 of the calendar year
following the one in which the Participant's death occurred or (ii) the
December 31 of the calendar year in which the Participant would have
attained age 70 1/2. Such payments must be paid over the life of the
spouse or over a period not exceeding the life expectancy of the spouse.
- If the Beneficiary is other than the Participant's spouse, payments must
commence no later than the December 31 of the calendar year following the
one in which the death of the Participant occurred. Such payments must be
paid over the life of the Beneficiary or over a period not exceeding the
life expectancy of the Beneficiary.
If:
(1) the Beneficiary does not elect a method of distribution and
GVA-1000-87(24) (as modified by Group Annuity Amendment Form GAA-7793)
Serial 310 3.2
(2) the Participant has not directed that a specific method of
distribution be provided for his Beneficiary,
then any death benefits becoming payable under the contract shall be paid in
a lump sum commencing no later than the December 31 of the calendar year in
which the fifth anniversary of the Participant's death occurs.
All death benefits pursuant to this section 3.2 shall be made at the time
and in the manner prescribed in Code Section 401(a)(9) and the Regulations
issued thereunder.
If annuity payments are to start at a future date, the Participant's
Accounts will be maintained for the Beneficiary in the same manner as for
the Participant. No contributions may be made to any Account hereundr after
the Participant's death.
As of the first day no amounts remain in any of the Participant's Accounts
hereunder or in an Account with respect to a Participant under a companion
contract, the Participant's Accounts are cancelled. Section 3.1 does not
apply.
3.3 TRANSFERS BETWEEN RELATED CONTRACTS:
A Participant may transfer an amount from one or more of his Participant's
Accounts to another Account maintained for him under this contract or to an
Account maintained for him under a companion contract. The minimum
withdrawal to provide a transfer is $500 from any single Account or the
dollar value of the Account if smaller. The transfer will normally be made
within seven days of Prudential's receipt of a duly completed request for
it. Section 3.1 does not apply to a withdrawal for this purpose. Transfers
are deemed to be made first from the contributions paid for the Participant.
Investment income is transferred when there are no longer any contributions
in the Participant's Account.
Amounts may be transferred to this contract from a companion contract and
will be added to one or more Subaccounts as directed by the Participant. An
amount transferred to this contract for a Participant will be treated as
though it were a contribution made for him (see section 1.2). However, in
determining any withdrawal charge, any part of the amount transferred which
is investment income will not be considered as a contribution.
Prudential may, upon notice to the Contract-Holder and Participants, limit
the frequency of transfers. This action will take effect on the date of the
notice.
This section may be changed as provided in section 5.1.
3.4 TRANSFERS TO ANOTHER FINANCIAL INSTITUTION:
(a) At the Request of a Participant:
The Withdrawal Value of any of the Participant's Accounts may be
transferred to another financial institution. The transfer may be
GVA-1000-87(24) (as modified by Group Annuity Amendment Form GAA-7793)
Serial 320 3.2-3.4
made directly to that institution or by a payment (or payments) to the
Participant who then makes payment to the institution. The transfer will
normally be made within seven days after Prudential's receipt of a duly
completed transfer request.
The transfer will be a full settlement of Prudential's liability for the
Participant's Account from which the transfer is made.
(b) At the Contract-Xxxxxx's Request:
The Contract-Holder may request Prudential to make transfer payments on
behalf of all Participants to a financial institution named in the
request. The transfer payment will be made on the Transfer Date. The
Transfer Date is the later of the day specified in the request and the
90th day after its receipt by Prudential.
Prudential will promptly notify each Participant, and each Beneficiary of
a deceased Participant whose Accounts have not been cancelled, that the
request has been received. Each notified person may elect, within 30 days
following his receipt of the notice from Prudential, to have one or more
of his Accounts cancelled and included in the transfer payment to be
made. Each person who does not make this election will have his Account
or Accounts retained under this contract pursuant to its terms.
The Account or Accounts of Participants and Beneficiaries who make the
election will be cancelled as of the Transfer Date and an amount equal to
the sum of the Withdrawal Values, expressed in Units of the cancelled
Accounts, times the appropriate Subaccount Unit Value for the day of
withdrawal will be transferred within seven days thereafter.
The Contract-Holder may notify Prudential that this section 3.4(b) is to
be inoperative.
This section may be changed as provided in section 5.1.
3.5 TRANSFERS INVOLVING A SIMILAR CONTRACT OF ANOTHER EMPLOYER:
A Participant may cease to be employed by the Contract-Holder. He may become
employed by an employer to whom Prudential has issued a contract similar to
this contract. If so, that Participant may request a transfer to that
similar contract from this contract. The transfer will normally be made
within seven days of receipt of the request. The dollar value of all of the
Participant's Accounts will be the amount transferred. The Accounts will be
cancelled.
Also, this contract will accept a transfer from a contract similar to this
contract for a person covered thereunder who becomes employed by
Contract-Xxxxxx. The transferred amount will be treated as a contribution
paid for that person and will be added to one or more Subaccounts as
directed by the Participant. However, in determining any withdrawal charge,
any part of the transferred amount which is investment income will not be
considered a contribution.
This section may be changed as provided in section 5.1.
GVA-1000-87(24) (as modified by Group Annuity Amendment Form GAA-7793)
Serial 330 3.4-3.5
Provision IV. DISTRIBUTIONS:
4.1 DISTRIBUTIONS:
A Participant may elect to receive a distribution of his Accounts under the
Contracts in any of the following forms:
(a) a lump sum;
(b) an annuity form described in the section 4.4;
(c) any other settlement method to which Prudential consents;
(d) a combination of all or any two of (a), (b) and (c) above.
Any portion of a Participant's Accounts which is paid to him as a lump sum
will be subject to the withdrawal provisions under the Contracts.
Any payments becoming due to the Beneficiary of a Participant who began
receiving a distribution pursuant to paragraph (c) may, unless the
Participant has directed otherwise, be paid in any of the forms described in
this section 4.1, as elected by the Beneficiary, except for an annuity which
provides for payment after the death of the Annuitant to a Contingent
Annuitant.
Any payments becoming due to the Beneficiary of a Participant who began
receiving an annuity pursuant to paragraph (b) will, unless the Participant
has directed otherwise, be paid as provided in section 4.4.
Anything in the contract to the contrary notwithstanding, any payments made
to a Beneficiary in accordance with the two preceding paragraphs will meet
the requirements of Code Section 401(a)(9) and the Regulations issued
thereunder.
As of the first day no amounts remain in any of the Participant's Accounts
or in an Account for him under a companion contract, his Account is
cancelled.
4.2 REQUIRED DISTRIBUTION DATE:
Distributions are required to commence to the Participant as of his Required
Distribution Date. A Participant's Required Distribution Date is the April 1
of the calendar following the one in which the Participant attains age
70 1/2.
4.3 MINIMUM REQUIRED DISTRIBUTIONS:
Prudential will notify a Participant, prior to such Participant's Required
Distribution Date, as determined from the records of Prudential on the basis
of information furnished to Prudential, that he may be required to receive a
minimum distribution from his Accounts under the contract in accordance with
Code Section 401(a)(9) and the Regulations issued thereunder. Such notice
will include information so as to assist
GVA-1000-87(24) (as modified by Group Annuity Amendment Form GAA-7793)
Serial 400 4.1-4.3
the Participant in computing the amount of his required minimum
distribution. Following such notice, a Participant may request that the
required minimum distribution be paid to him from the contract by his
Required Distribution Date.
If the Participant does not request a distribution from his Accounts under
the contract pursuant to this section 4.3, Prudential shall be under no
obligation to make such distribution.
4.4 TERMS OF PAYMENT OF ANNUITIES:
If a Participant elects an Annuity pursuant to paragraph (b) of section 4.1,
all or a portion of the dollar value of the Participant's Accounts, as
specified by the Participant, will be applied to purchase an annuity in
accordance with Schedule A. The monthly amount of annuity is determined from
the schedule of purchase rates for that annuity.
Life annuities and Payment Certain annuities are available under this
contract. A Life form of annuity is one payable at least during the lifetime
of the person (referred to as the "Annuitant") for whom it was purchased.
Depending upon the existence and nature of any payment payable after the
death of the Annuitant, a Life annuity will be one of the following forms:
Life - Payment Certain, Life - Contingent, or Life - Payment Certain
Contingent annuity. A Payment Certain form of annuity may be payable for a
period less than the lifetime of the person for whom the annuity was
purchased. The terms of payment of each form of annuity are described below.
(a) Life Form of Annuity:
The first monthly payment of a Life - Payment Certain annuity is payable
on the date the annuity is purchased. Monthly payments are payable on the
first day of each month thereafter throughout the Annuitant's remaining
lifetime. If the Annuitant dies before the number of annuity payments
made equals the number of Payments Certain applicable to him, monthly
annuity payments will be
continued until the total number of payments is so equal. These continued
annuity payments will each be in the same amount as was payable to the
Annuitant. The number of Payments Certain is established when the annuity
is purchased and may be 60, 120, 180, 240, or any other number accepted
by Prudential.
The first monthly payment of a Life - Contingent annuity is payable on
the date the annuity is purchased. Monthly payments are payable on the
first day of each month thereafter throughout the Annuitant's remaining
lifetime. If the Annuitant dies before the death of his Contingent
Annuitant, monthly Contingent Annuity payments will become payable. The
first payment of Contingent Annuity will be payable on the first day of
the month following the month in which the Annuitant's death occurs.
Monthly Contingent Annuity payments are payable on the first day of each
month thereafter throughout the Contingent Annuitant's remaining
GVA-1000-87(24) (as modified by Group Annuity Amendment Form GAA-7793)
Serial 410 4-3-4.4
lifetime. The last monthly payment is payable for the month in which his
death occurs. The amount of each monthly Contingent Annuity payment will
be a percentage of the monthly annuity payment payable before the
Annuitant's death. The percentage is established when the annuity is
purchased and may be 33 1/3%, 50%, 66 2/3% or 100%, or any other
percentage accepted by Prudential. Under a Life - Payment Certain
Contingent annuity, a percentage payment will not take effect until the
end of the selected Payment Certain period.
(b) Payment Certain Annuity:
The first monthly payment of a Payment Certain annuity is payable on the
date the annuity is purchased. Monthly payments are payable on the first
day of each month thereafter until the total number of Payments Certain
specified when the annuity was purchased has been paid. The number of
Payments Certain may be 60, 120, 180, 240 or any other number accepted
by Prudential.
Other forms of annuity payments may be provided with the consent of
Prudential.
All annuities purchased under this contract will meet the requirements of
Code Section 401(a)(9) and the Regulations issued thereunder.
4.5 SMALL ANNUITIES AND ACCOUNTS:
If the total monthly amount of annuity which would otherwise be purchased on
behalf of any person under this contract and the companion contracts is less
than $50, Prudential may, in lieu of an annuity under this contract, make
payment in a single sum. The single sum will be equal to the amount that
would otherwise be applied to purchase an annuity as described in section
4.4.
If no contributions have been made under this contract or any companion
contract for a Participant for a period of 24 months and the dollar value of
his Accounts under all the contracts is $1,000 or less, Prudential may
cancel his Accounts under this contract. If the Accounts are cancelled, the
dollar value will be paid to the Participant unless he directs payment to a
named financial institution. The Annual Account Charge will be made only if
no Accounts remains for him under any companion contract.
4.6 PAYEES:
Each annuity payment will be made to the Annuitant, Contingent Annuitant or
Beneficiary entitled to receive it.
GVA-1000-87(24) (as modified by Group Annuity Amendment Form GAA-7793)
Serial 420 4.4-4.6
Provision V. CHANGES:
5.1 CHANGES BY PRUDENTIAL:
Prudential may make changes in this contract as follows:
(a) The Annual Account Charge and the table of withdrawal charges may be
changed periodically on and after his second anniversary of the
Effective Date.
(b) The effective annual rate of the Administrative Expense Charge,
the minimum dollar contribution made on other than a periodic basis, and
the terms and amounts, (excluding the withdrawal charge table) of
withdrawals and transfers pursuant to Provision III
may be changed periodically on and after the fifth anniversary of the
Effective Date.
(c) The schedules of annuity purchase rates may be changed periodically on
and after the tenth anniversary of the Effective Date.
Any change in the table of withdrawal charges and in Schedule D will apply
only to amounts added to Participants' Accounts on and after the date the
change takes effect. Any other change will apply to amounts in Participants'
Accounts whether added before or on and after the date the change takes
effect. Any change in the schedules of annuity purchase rates will remain in
effect for at least ten years.
Any change in accordance with this section will be made by giving notice to
the Contract-Holder at least 90 days before the date on which the change is
to take effect. Notice of changes, other than in the schedules of purchase
rates, will also be given to Participants.
5.2 CHANGES BY AGREEMENT:
This contract may also be changed in any respect at any time or times by
agreement between the Contract-Holder and Prudential.
5.3 CHANGES TO CONFORM TO LAW:
Prudential may change this contract as, in its discretion, it deems
appropriate to satisfy the requirements of any law or regulation
administered by a governmental agency regulating Qualified Retirement
Contributions funding arrangements.
5.4 PERSONS EMPOWERED TO ACT FOR PRUDENTIAL:
No agent or other person except one of the following officers of Prudential
may change this contract or bind Prudential.
Chairman and Chief Executive Officer Associate Actuary
President Secretary
Vice President Assistant Secretary
Actuary
GVA-1000-87(24)
Serial 500 5.1-5.4
Provision VI. DISCONTINUANCE - TERMINATION OF CONTRACT:
6.1 DISCONTINUANCE OF ESTABLISHING PARTICIPANTS' ACCOUNTS:
Prudential may notify the Contract-Holder that on and after a specified date
no new Participants' Accounts will be established under this contract. The
specified date may not be earlier than 90 days after the date of the notice.
Thereafter, only contributions for persons who are Participants on the
specified date will be accepted hereunder. In all other respects this
contract will continue to operate in accordance with its terms.
6.2 DISCONTINUANCE OF CONTRIBUTIONS UNDER THIS CONTRACT:
Contributions under this contract will be discontinued with respect to all
Participants:
(a) at any time after receipt by Prudential of notice thereof from the
Contract-Holder,
(b) as of a date at least 90 days after notice to the Contract-Holder by
Prudential that no further contributions will be accepted hereunder.
After discontinuance the contract will continue to operate in accordance
with its terms with respect to Participants' Accounts.
6.3 TERMINATION OF CONTRACT:
This contract will terminate when all the following have occurred:
(a) no further contributions may be paid under this contract;
(b) no Participant's Accounts remain uncancelled; and
(c) no further annuity payments are payable from this contract.
GVA-1000-87(24)
Serial 600 6.1-6.3
11/89
Provision VII. GENERAL TERMS:
7.1 CONTRACT-HOLDER:
Prudential will normally deal only with the Contract-Holder. However,
Prudential and the Contract-Holder may agree to do otherwise. Also, in some
cases the contract calls for dealing with another. Prudential will be
entitled to rely on any action taken or omitted by the Contract-Holder
pursuant to the terms of this contract.
The Contract-Holder may, from time to time, delegate to an agency certain
administrative powers and responsibilities which this contract assigns to
the Contract-Holder. Prudential is not bound to recognize any delegation
until it has received notice of it. The notice must specify those powers and
responsibilities and include evidence of acceptance by the agency. On and
after the date of receipt of the notice, Prudential will deal with the
agency with respect to those powers and responsibilities and will be
entitled to rely on any action taken or omitted by the agency with respect
thereto in the same manner as if dealing with the Contract-Holder. If any
agency fails or refuses to act with respect thereto, then the delegation
will be void for the purposes of this contract. Thereafter, Prudential will
deal only with the Contract-Holder. The Contract-Holder may give notice to
Prudential of delegation to another agency or specified powers and
responsibilities.
7.2 COMMUNICATIONS:
All communications to the Contract-Holder or to Prudential will be in
writing. They will be addressed to the Contract-Holder at its principal
office, or at such other address as it may communicate to Prudential. They
will be addressed to Prudential, c/o The Prudential Asset Management
Company, Inc., Defined Contribution Programs, X.X. Xxxxxxxx Office Park, 00
X.X. Preate Drive, Moosic, Pennsylvania 18507-1796, or at such other address
as it may communicate to the Contract-Holder. All communications to any
other person or organization will be addressed to that person or
organization at the last address of record.
7.3 PLACE OF PAYMENT - CURRENCY:
All payments to Prudential under this contract will be payable at its office
described above or at an address or to a representative as may be specified
by Prudential by notice to the Contract-Holder.
All payments under this contract, whether to or by Prudential, will be in
lawful money of the United States of America. Dollars and cents, as
specified in this contract, means lawful dollars and cents of United States
currency.
GVA-1000-87(24)
Serial 700 7.1-7.3
7.4 INFORMATION -- RECORDS:
The Contract-Holder will furnish all information which Prudential may
reasonably require for the administration of this contract. If the
Contract-Holder cannot furnish any required item of information, Prudential
may request the person concerned to furnish the information. Prudential will
not be liable for the fulfillment of any obligations in any way dependent
upon information unless and until it receives the information in a form
satisfactory to it.
Information furnished to Prudential may be corrected for demonstrated errors
in it unless Prudential has already acted to its prejudice by relying on the
information. Except for the corrections, information furnished to Prudential
will be regarded as conclusive. Prudential will maintain the records
necessary for its administration of this contract. These records will be
prepared from the information furnished to Prudential and will constitute
evidence as to the truth of the information in the records.
7.5 MISSTATEMENTS:
If any relevant fact relating to any person is found to have been misstated,
the following will apply:
(a) The amount of annuity payable by Prudential will be that which would
be provided by the amount allocated to effect such annuity on the
basis of the correct information, without changing the date of first
payment of the annuity.
Any adjustment by Prudential of the amount or terms of payment made in
accordance with this section will be conclusive upon any other person
affected by it.
(b) The amount of any underpayment by Prudential will be paid in full with
the next payment due. The amount of any overpayment by Prudential will
be deducted to the extent possible from amounts payable thereafter.
7.6 BENEFICIARY:
If, as to any person, this contract provides for the payment of an amount or
amounts after the person dies to a Beneficiary other than the person's
Contingent Annuitant, payment will be made to the Beneficiary the person
named. A person for whom an Account is held or an annuity is being paid
under this contract may name a Beneficiary to replace one previously named.
However, the Participant may instruct Prudential that his Contingent
Annuitant or Beneficiary is not to have this right to name a Beneficiary.
A Beneficiary may be named by filing a request with Prudential on a form
acceptable to it. It will become effective when entered on Prudential's
records. It will apply to any amounts payable after the request was received
by Prudential, except any withdrawals and payments made before the request
was entered on Prudential's records. Prudential will acknowledge the naming
of a Beneficiary.
GVA-1000-87(24)
Serial 710 7.4-7.6
The interest of any Beneficiary who dies before the Participant ceases upon
that Beneficiary's death. If there is no named Beneficiary when an amount
is payable to one, payment will be made to the estate of the last to die of
the Participant or Annuitant, his Contingent Annuitant, and his
Beneficiary. If a payment would be made to the estate of a Participant or
Annuitant, Prudential may make the payment to any one or jointly to any
number of his surviving relatives: spouse, children, parents, brothers or
sisters.
Prudential, in determining whether a person is a relative of a Participant
or Annuitant or is a Beneficiary entitled to payment, may rely solely on
any evidence it deems acceptable. Each payment Prudential makes in reliance
thereon will be a valid discharge of its obligation under this contract as
to that payment.
If a series of payments becomes payable to a Beneficiary and the first
payment is less than $50, Prudential may choose to make payment in one sum.
Also, if the payee is not a natural person and a series of payments is
payable, Prudential may choose to make a payment in one sum. The one sum
payment will be equal to the value of the series of payments discounted at
interest from each payment due date to the date of the one sum payment. The
discount interest rate will be the interest rate in the schedule of annuity
purchase rates used to establish the series of payments.
7.7 DIVISIBLE SURPLUS:
The portion, if any, of the divisible surplus of Prudential accruing upon
this contract will be determined annually by the Board of Directors of
Prudential and credited to Participants' Accounts as determined by the
Board. (It is unlikely any divisible surplus will accrue upon this
contract.)
No annuity under this contract will be taken into account in the
determination of any divisible surplus to be credited to this contract.
7.8 LIMIT ON ASSIGNMENT:
To the extent applicable law requires, the interests in and payments from
this contract are not assignable or subject to the claims of any creditor.
7.9 CERTIFICATES:
Prudential will issue a certificate for each annuity which is effected
under this contract. If any law requires, Prudential will issue a
certificate to a Participant for whom an annuity has not yet been
effected. A certificate will be descriptive of the Participant's or
Annuitant's rights and duties under the contract.
7.10 ENTIRE CONTRACT -- CONSTRUCTION:
This document constitutes the entire contract.
This contract will be construed according to the laws of the jurisdiction
set forth on the first page.
GVA-1000-87(24)
Serial 720 7.6-7.10
SCHEDULE A
FORMS OF ANNUITY WHICH MAY BE PURCHASED
Form of Payment Payable Applicable Schedule
----------------------- --------------------
1. Life - Payment Certain Annuity. 1. Use Schedule B for allocation.
2. Life - Contingent Annuity. 2. Use Schedule C for allocation.
3. Payment Certain Annuity. 3. Use Schedule D for allocation.
Prudential may provide monthly amounts of annuity larger than those shown in the
following schedules for annuities purchased during any period specified by
Prudential. Annuity purchase rates for other forms of annuity consented to by
Prudential will be furnished on request. The following schedules may be changed
as provided in section 5.1.
GVA-1000-87 (24)
Serial A-100 Schedule A
1/90
SCHEDULES
Monthly amount of annuity purchased per $10,000 of a Participant's Account,
after deduction from it of any taxes on annuity considerations that apply.
SCHEDULE B - Life-Payment Certain Annuity (120 Payments Certain)
Monthly Amount
--------------
If date the annuity is purchased is in:
Age 1990 1991 1995 2000
--- ---- ---- ---- ----
60 $52.53 $41.36 $40.58 $39.85
65 57.51 46.57 45.60 44.68
70 63.85 53.19 51.98 50.82
SCHEDULE C - Life-Contingent Annuity
Monthly Amount
---------------
If Annuitant and Contingent Annuitant have same date of birth.
If the date the annuity is purchased is in:
-----------------------------------------------------
Age 1990 1991 1995 2000
--- ----- ---- ---- ----
If specified percentage to Contingent Annuitant is 100%:
60 $46.96 $35.91 $35.31 $34.78
65 50.70 39.88 39.10 38.39
70 56.00 45.36 44.32 43.32
If specified percentage to Contingent Annuitant is 50%:
60 $49.99 $38.71 $38.00 $37.34
65 54.69 43.53 42.61 41.75
70 61.25 50.15 48.92 47.71
SCHEDULE D - Payment Certain Annuity
Monthly Amount
---------------
Number of If date the annuity is purchased is in:
Payments Certain 1990 1991 1995 2000
----------------- ---- ---- ---- ----
60 $173.38 $165.44 $164.73 $164.73
120 97.22 88.83 88.45 88.45
180 72.32 63.48 63.20 63.20
* * * *
The rates in these Schedules are to be used without adjustment only when the
facts that apply to the Participant and his annuity are as shown. Rates for
other facts will be furnished upon request.
GVA-1000-87 (24)
Serial S-100 Schedules B-D
