(vv)
INDIVIDUAL RETIREMENT ANNUITY
ENDORSEMENT
The annuity contract is changed as set out below to add provisions for an
Individual Retirement Annuity.
APPLICABLE TAX LAW RESTRICTIONS. This annuity contract is intended to receive
contributions that qualify for deferred tax treatment under Internal Revenue
Code ("IRC") Section 408(b). It is restricted as required by federal tax law.
We may change the terms of this annuity contract or administer this annuity
contract at any time as needed to comply with that law. Any such change may
be applied retroactively.
EXCLUSIVE BENEFIT. This annuity contract is established for the exclusive
benefit of the participants and their beneficiaries. A participant's
interest in this annuity contract is nonforfeitable.
NON-PARTICIPATING. This annuity contract does not pay dividends or share in
our surplus.
NO ASSIGNMENT OR TRANSFER. A participant cannot assign, sell, or transfer his
or her interest in this annuity contract. A participant cannot pledge it to
secure a loan or the performance of an obligation, or for any other purpose.
The only exceptions to these rules are:
1) an interest in this annuity contract may be transferred to a spouse or
former spouse of a participant under a divorce or separation instrument
described in IRC Section 71(b)(2)(A); and
2) a participant may designate another person to receive payments with the
participant based on joint lives or joint life expectancies, but any
such designation shall not give that other person any present rights
under the annuity contract during the participant's lifetime.
CONTRIBUTIONS. This annuity contract does not require fixed premiums,
purchase payments, or other contributions, but we may decline to accept any
contribution of less than $50. An interest in this annuity contract will not
lapse if a participant does not make contributions. An interest in this
annuity contract will remain subject to cancellation under any involuntary
surrender or termination provision of this annuity contract; provided,
however, that in no event shall any such cancellation occur unless, at a
minimum, contributions have not been made for the participant for at least
two full years and the value of the participant's interest in this annuity
contract (increased by any guaranteed interest) would provide a benefit at
age 70-1/2 of less than $20 a month under the regular settlement option.
All contributions to us must be made in cash BY CHECK OR MONEY ORDER MADE
PAYABLE TO US.
Total contributions made to this annuity contract for a participant with
respect to any one tax year may not exceed $2,000, excluding any payment
which is:
1) allowed as a rollover under IRC Section 402(c), 403(a)(4), 403(b)(8),
or 408(d)(3); or
2) made through a Simplified Employee Pension (SEP) program under IRC
Section 408(k).
This annuity contract will not accept contributions made by an employer
through a SIMPLE plan under IRC Section 408(p). This annuity contract will
not accept a transfer or rollover of any funds attributable to contributions
made for a participant by an employer through a SIMPLE plan until at least
2-years after the date the participant first participated in that employer's
SIMPLE plan.
ANNUAL REPORT. Following the end of each calendar year, we will send each
participant a report concerning the status of his or her interest in this
annuity contract. This report will include (i) the amount of all regular
contributions received for the participant during or after the calendar year
which relate to such calendar year, (ii) the amount of all rollover
contributions received for the participant during such calendar year, (iii)
the contract value(s) of the participant's interest determined as of the end
of such calendar year, and (iv) such other information as may be required
under federal tax law.
REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE. The Required Beginning Date for
distributions of a participant's interest in this annuity contract is April 1
following the calendar year in which the participant reaches age 70-1/2. No
later than the Required Beginning Date:
1) the participant's entire interest in this annuity contract must be paid
in full; or
2) distributions of the participant's interest in this annuity contract
must begin in the form of periodic payments made at least annually (i)
for the participant's life or as joint and survivor payments to the
participant and one other individual, or (ii) over a period certain not
to exceed the participant's life expectancy or the joint and last
survivor expectancy of the participant and one other individual
designated to receive any remaining payments after the participant's
death, with payments which do not increase or increase only as provided
in Q&A F-3 of Section 1.401(a)(9)-1 of the Proposed Income Tax
Regulations.
All distributions made hereunder shall be made in accordance with the
requirements of IRC Section 401(a)(9), including the incidental death benefit
requirements of IRC Section 401(a)(9)(G), and the regulations thereunder,
including the minimum distribution incidental benefit requirements of Section
1.401(a)(9)-2 of the Proposed Income Tax Regulations.
Life expectancies are computed using the expected return multiples in Tables
V and VI of Section 1.72-9 of the Income Tax Regulations. The life
expectancies of the participant and his or her spouse shall be recalculated
annually unless periodic payments for a fixed period begin irrevocably
(subject to acceleration) by the Required Beginning Date. The life expectancy
of any other individual may not be recalculated. Any life expectancy which is
not being recalculated shall be determined using the attained age of the
individual in the calendar year in which the participant reaches age 70-1/2
or in any earlier year in which payments begin irrevocably, and any payment
calculations for subsequent years shall be based on such life expectancy
reduced by one for each calendar year which has elapsed since the calendar
year such life expectancy was first determined.
REQUIRED MINIMUM DISTRIBUTIONS AFTER DEATH. If the participant dies after the
Required Beginning Date or after payments begin irrevocably (subject to
acceleration), the remaining portion of the participant's interest in this
annuity contract must continue to be distributed at least as rapidly as under
the method of distribution being used prior to the participant's death.
If the participant dies before the Required Beginning Date and before
payments begin irrevocably, the participant's entire interest in this annuity
contract must be paid either:
1) in full by December 31 of the fifth calendar year after the
participant's death; or
2) over the life or over a period certain not greater than the life
expectancy of the individual designated under this annuity contract to
receive payments after the participant's death with payments beginning
by December 31 of the first calendar year after the participant's
death.
However, if the participant's surviving spouse is the individual designated
to receive the participant's entire interest in this annuity contract, the
starting date for payments under clause 2) above may be delayed to a date not
later than December 31 of the calendar year in which the participant would
have reached age 70-1/2. Alternatively, the participant's interest in this
annuity contract will be treated as the IRA of such spouse if he or she
becomes Successor Owner of the participant's interest, makes a rollover from
the participant's interest, or fails to receive distributions from the
participant's interest otherwise required by this provision. No contributions
or rollover to the participant's interest in this annuity contract may be
made after the participant's death unless the participant's spouse becomes
Successor Owner. In any case, if a surviving spouse dies before payments
begin under this provision, then this provision shall apply upon the death of
the participant's spouse as if the spouse was the owner of the participant's
interest in this annuity contract.
Life expectancy is computed using the expected return multiples in Tables V
and VI of Section 1.72-9 of the Income Tax Regulations. For distributions
beginning after the participant's death, the life expectancy of the
participant's surviving spouse shall be recalculated annually unless periodic
payments for a fixed period begin irrevocably (subject to acceleration) by
the date payments are required to begin. The life expectancy of any other
individual may not be recalculated. Any life expectancy which is not being
recalculated shall be determined using the attained age of such individual in
the calendar year in which payments are required to begin or in any earlier
year in which payments begin irrevocably, and any payment calculations for
subsequent years shall be based on such life expectancy reduced by one for
each calendar year which has elapsed since the calendar year life expectancy
was first determined.
This is part of the annuity contract. It is not a separate contract. It changes
the annuity contract only as and to the extent stated. In all cases of conflict
with the other terms of the annuity contract, the provisions of this Endorsement
shall control.
Signed for us at our office as of the date of issue.
Assistant Secretary Executive
Vice President
