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ENDORSEMENT
APPLICABLE TO TSA CONTRACTS
When issued with this Endorsement, this Contract is a "TSA Contract" which meets
the requirements of Section 403(b) of the Code. It is established for the
exclusive benefit of you and your beneficiaries, and the terms below change, or
are added to, applicable sections of this Contract. Also, your rights under the
Contract are not forfeitable. When used in this Endorsement references to the
Code include references to applicable tax Regulations.
1. "AGREEMENT" IS ADDED TO THE CONTRACT AS SECTION 1.00:
The term "Agreement" means a "Salary Reduction Agreement" described in
Section 3121(a)(5)(D) of the Code and Treasury Regulation Section
1.403(b)-1(b)(3). This is an between an Employer and an employee of the
Employer, in which the Employer agrees to accept a reduction in salary or
forgo an increase in salary and to have such amounts applied under the
Contract for the employee's behalf. If the Employer's Plan or arrangement
permits, the employee may enter into more than one such Salary Reduction
Agreement with the Employer in any calendar year.
2. "ANNUITY COMMENCEMENT DATE" (SECTION 1.04) IS AMENDED BY ADDING THE
FOLLOWING AS THE LAST PARAGRAPH:
Your choice of an Annuity Commencement Date is subject to the maximum
maturity age stated in the Data pages. If you choose an Annuity
Commencement Date later than age 70 1/2, you must withdraw at least the
minimum payments required by tax regulations that apply, unless you elect
to satisfy these requirements through other "403(b) arrangements" (defined
in "Restrictions on Payments"). See Item "Required Minimum Distributions".
3. "CONTRIBUTION" (SECTION 1.12) IS REVISED AS FOLLOWS:
Contribution means a payment made to us for you with respect to an annuity
purchased for you under the Plan.
4. "ELECTIVE DEFERRALS" IS ADDED TO THE CONTRACT AS SECTION 1.12B:
Elective Deferral Contributions and Salary Reduction Contributions mean the
same thing. They are Contributions made under a Salary Reduction Agreement
as described in Section 1.00 and subject to the limits in Section 3.01.
5. "ELIGIBLE ANNUITY CERTAIN" IS ADDED TO THE CONTRACT AS SECTION 1.12C:
The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by us which extends beyond your attainment of age
59 1/2 and does not permit any prepayment of the unpaid principal (that is,
no withdrawal or single sum payment) prior to your attainment of age
59 1/2.
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6. "EMPLOYER" IS ADDED TO THE CONTRACT AS SECTION 1.12D:
"Employer" means either of the following:
(a) A State, a political subdivision of a State or an agency or
instrumentality of any of the foregoing, with respect to employees who
perform services for any educational organization, as described in
Section 170(b)(1)(A)(ii) of the Code with respect to Public Schools
K-12 only.
7. "OWNER" (SECTION 1.19) FOR PURPOSES OF THIS ENDORSEMENT IS REPLACED WITH
THE FOLLOWING:
You must be both the Owner and the Annuitant.
8. "PLAN" IS ADDED TO THE CONTRACT AS SECTION 1.19A:
"Plan" means a program established by an Employer, for the purchase of
annuities for its employees. The Employer shall be the "Plan Administrator"
within the meaning of Section of 414(g) of the Code and applicable Treasury
Regulations.
9. "CONTRIBUTIONS" (SECTIONS 3.01 AND 3.02):
Contributions must be remitted by the Employer. You may, with our
agreement, (i) transfer to the Contract unless any amount held under a
contract or account that meets the requirements of Section 403(b) of the
Code ("Transferred Funds"), or (ii) roll over contributions from a contract
or account that meets the requirements of Section 403(b) or Section
408(d)(3)(A)(ii) of the Code. If you make a transfer as described in (i)
above, you must tell us the portion, if any, of the Transferred Funds which
are (a) exempt from the payment restrictions described in "Restrictions on
Payments" below and (b) eligible for delayed distribution under "Required
Minimum Distributions" below. If you do not tell us, then we will treat all
such amounts as being subject to the applicable tax restrictions. Any
Transferred Funds from a contract not issued by us will be reduced by the
amount of any tax charge that applies, as we determine.
Contributions to the Contract are limited to your salary deferrals for the
year computed as required by Sections 403(b), 402(g), 414(v), if applicable
under the Plan and 415(c) of the Code. Unless this Contract is purchased
under an ERISA plan and "employer contributions" may be made, all
contributions are made by your Employer under a salary reduction agreement
you enter into with your Employer. Your salary reduction contributions are
"elective deferrals" and cannot exceed the elective deferral limitation
under Section 402(g) of the Code and 414(v), if applicable which applies to
this Contract and all other plans, contracts or arrangements with your
Employer. If Contributions to this Contract inadvertently cause the excess
deferral limit to be violated, such deferrals must be distributed by April
15 of the following calendar year, as described in Treasury Regulation
Section 1.402(g)-1(e). (subject to a Withdrawal Charge, unless otherwise
specified in the Contract) and the rules of Section 414(v) of the Code if
applicable.
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If we are notified that any Contributions would cause this Contract not to
qualify under Section 403(b) of the Code, we reserve the right to either
(i) refuse to accept any such Contributions or (ii) apply such
Contributions to a nonqualified deferred annuity contract or Contract for
the exclusive benefit of you and your beneficiaries.
10. "BENEFICIARY CONTINUATION OPTION" IS ADDED TO THE CONTRACT AS SECTION
6.02A:
Except as otherwise provided in this section, this section will apply only
if you die before the Annuity Commencement Date, and the beneficiary named
in Section 6.02 of this Contract is an individual.
If there is more than one Beneficiary, and any Beneficiary is not an
individual, then this section does not apply to that Beneficiary and the
non-individual beneficiary's share of the Death Benefit described in
Section 6.02 of the Contract is payable to the non-individual beneficiary.
If this section applies and there is more than one beneficiary, the Annuity
Account Value will be apportioned among your beneficiaries as you designate
pursuant to Section 6.02 of this Contract.
One or more individual Beneficiaries may continue this Contract. In order
to continue this Contract under the terms set forth under (a) through (h)
below, we must receive that beneficiary's election within 9 months after
your death and before the beneficiary's share of the Death Benefit is paid
out in any manner inconsistent with that beneficiary's election to continue
the Contract.
Each individual Beneficiary electing to continue the Contract will be a
"Continuation Beneficiary" described in item c. below with respect to that
beneficiary's portion of the Annuity Account Value. For any Beneficiary who
does not timely elect to be a Continuation Beneficiary, we will pay that
beneficiary's share of the Death Benefit pursuant to Section 6.02 of the
Contract in a lump sum.
The terms of the Beneficiary Continuation Option are as follows:
a. the Contract cannot be assigned and must continue in your name for the
benefit of your Continuation Beneficiary.
b. as of the date we receive satisfactory proof of your death and all
necessary documentation to make a claim under the Contract, we will
compare the Annuity Account Value and the Minimum Death Benefit as of
this date (the reset date). If the Annuity Account Value is less than
the Minimum Death Benefit, we will reset the Annuity Account Value to
equal such Death Benefit.
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The minimum Death Benefit is the sum of all your Contributions less
any outstanding loan and less any withdrawals in accordance with
Section 6.01 and the applicable Data Page of this Contract.
If there are multiple beneficiaries the reset date will be the date on
which we receive the documentation as described in subparagraph (b).
Any beneficiary subsequently electing a Death Benefit will receive the
applicable payment amount.
The Death Benefit provision ends after Beneficiary Continuation Option
is elected.
c. the Continuation Beneficiary will automatically become the Annuitant
as defined in the Contract with respect to that Continuation
Beneficiary's portion of the Annuity Account Value
d. the Continuation Beneficiary may transfer amounts among the Investment
Options.
e. the Continuation Beneficiary cannot make any additional Contributions
to the Contract.
f. distributions to the Continuation Beneficiary will be made in
accordance with requirements for payments after your death described
in "Required Minimum Distributions" of this Endorsement and the
required minimum distribution rules of the Code. If there is more than
one Continuation Beneficiary, payments to each will be based on the
individual life expectancy of each Continuation Beneficiary.
g. the Continuation Beneficiary may withdraw the Annuity Account Value
apportioned to such Continuation Beneficiary at any time; withdrawals
made after we have received a Continuation Beneficiary's election to
continue this Contract are not subject to a withdrawal charge.
h. upon the Continuation Beneficiary's death, we will make a lump sum
payment of any remaining Annuity Account Value apportioned to that
Continuation Beneficiary to the person designated by the deceased
Continuation Beneficiary to receive any such payment, unless the
person designated by the deceased Continuation Beneficiary elects to
continue the payment method originally elected by the Continuation
Beneficiary.
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A trust with only individual beneficiaries may continue the Contract after your
death if:
1. the trust is the sole Beneficiary;
2. all of the beneficiaries of the trust are individuals; and
3. the trust qualifies as a designated Beneficiary for purposes of the
required minimum distribution rules of the Code; and
4. the trust provides us the documentation that we require within the
time period we require.
In the event that such a qualifying trust elects to continue the Contract, the
oldest trust beneficiary is the Continuation Beneficiary and the individual
whose life expectancy is used to measure payments required after your death as
described in "Required Minimum Distributions" of the Endorsement.
11. RESTRICTIONS ON PAYMENTS:
No payments in violation of the limits provided in Section 403(b)(11) of
the Code may be made with respect to salary reduction Contributions and
earnings credited thereon, less any "grandfather amount" described below
(these amounts are "Restricted Amounts").
Unless you have made Contributions to this Contract through a transfer
described in "Contributions" and you have also provided our Processing
Office in writing with a "grandfather amount," all amounts under this
Contract will be deemed attributable to salary reduction contributions made
after December 31, 1988 and earnings credited xxxxxxx. A "grandfather
amount" is your "403(b) arrangement" account balance as of December 31,
1988. ("403(b) arrangement" means any plan which qualifies under Section
403(b) of the Code.)
All amounts attributable to Contributions directly transferred from a
custodial account under Section 403(b)(7) of the Code (including
Contributions directly transferred from a Section 403(b)(7) custodial
account into any other Section 403(b)(1) annuity contracts which are
subsequently directly transferred are "Restricted Amounts".
Payments of Restricted Amounts may not be made until you reach age 59 1/2,
separate from service or has a severance from employment, die, or become
disabled. Payments of salary reduction Contributions (but not any earnings
credited thereon) may also be made in the case of hardship. A request for a
withdrawal of Restricted Amounts on the grounds of disability or hardship
as defined in the Code must be sent with proof acceptable to us of such
condition. (For this purpose, disability is defined in Section 72(m)(7) of
the Code and hardship is defined in Section 403(b)(11) of the Code. We
reserve the right to limit transfers of Cash Value, up to the amount of any
Loan Reserve Account under your Contract, to another 403(b) arrangement
while you have an outstanding loan as described in "Loans" of this
Endorsement.
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12. DIRECT ROLLOVER OPTION:
You (or a Beneficiary under Section 6.02 of this Contract who is your
surviving spouse) may elect to have all or any portion of your Cash Value
(or Death Benefit) paid directly to another "eligible retirement plan" in a
"direct rollover transaction" as these terms are defined in Sections 403(b)
and 402(c) of the Code.
In order to elect this option all of the following requirements must be
met:
(a) The recipient of the distribution must be an eligible retirement plan
maintained for your benefit (or for your spousal beneficiary). In your
case, both an individual retirement arrangement ("IRA") under Section
408 of the Code or another 403(b) arrangement is an eligible
retirement plan. In the case of a spousal beneficiary, only an IRA
qualifies as an eligible retirement plan which may receive a direct
rollover.
(b) The distribution must not include any after-tax contributions under
this Contract.
(c) The direct rollover option is not available to the extent that a
minimum distribution is required under Section 401(a)(9) of the Code
("Required Minimum Distribution", below). We reserve the right to
determine the amount of the required minimum distribution. If you have
elected a payment option as described in the section "Annuity
Benefits" of this Contract which is either paying substantially equal
periodic payments for a period of ten years or more or a life annuity,
the direct rollover option does not apply to those same funds.
(d) The direct rollover option is not available for a hardship
distribution within the meaning of Section 402(c)(4)(C) of the Code.
13. REQUIRED MINIMUM DISTRIBUTIONS:
"Required Minimum Distribution" payments for this Contract must be computed
for the calendar year you turn age 70-1/2 and for each year thereafter. The
Required Minimum Distribution payments you compute must start no later than
April 1 of the calendar year after you turn age 70-1/2, except as otherwise
noted in this Item 14.
If you have Transferred Funds described in "Contributions" of this
Endorsement, payments of the amount of your December 31, 1986 account
balance transferred to this Contract must begin by age 75 or, if later,
your separation from service.
You compute the Required Minimum Distribution payment for this Contract
every year based on the method you choose. (We are not required to compute
your Required Minimum Distribution.) Your Required Minimum Distribution
payment may be computed under any of the methods permitted under Section
401(a)(9) of the Code and applicable Treasury Regulations, and payments
must be made as required by those rules, including "incidental death
benefit" rules.
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The Required Minimum Distribution rules are designed so that the amount of
your Annuity Account Value will be paid out over your life or life
expectancy or over the joint lives or joint life expectancies of you and
your named beneficiary. Life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9,
or any other table prescribed by the Internal Revenue Service.
You may choose to recalculate your life expectancy annually. If your spouse
is your named Beneficiary, you may also choose to recalculate your spouse's
life expectancy. You may not recalculate the life expectancy of a
beneficiary who is not a spouse.
Payments of your annual Required Minimum Distribution calculated for this
Contract may be made from this Contract or from another 403(b) arrangement
that you maintain, if permitted by Internal Revenue Service rules.
If you die after Required Minimum Distribution payments have begun, the
remaining amount of your Annuity Account Value must continue to be paid at
least as quickly as under the calculation and payment method being used
before your death.
If you die before Required Minimum Distribution payments begin, payment of
your Annuity Account Value must be completed no later than December 31 of
the calendar year in which the fifth anniversary of your death occurs,
except to the extent that a choice is made to receive death benefit
payments under (a) and (b) below:
(a) If payments are to be made to a Beneficiary, then the Annuity Account
Value may be paid over the life or life expectancy of the named
beneficiary. Such payments must begin on or before December 31 of the
calendar year which follows the year of your death.
(b) If the named Beneficiary is your spouse, the date that payments must
begin under (a) above will not be before (i) December 31 of the
calendar year which follows the year of your death or, if later, (ii)
December 31 of the calendar year in which you would have reached age
70-1/2.
14. LOANS:
a. GENERAL:
You may request a loan, subject to the terms of this section. Your
loan is subject to the terms of the Plan, if applicable, and the Code.
Future restrictions in the Code may require changes in the terms and
availability of loans.
We reserve the right not to permit a new loan if you have previously
defaulted on a loan and have not repaid the amount due.
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A loan is effective on the date we specify, according to our then
current procedures, after we approve your Loan Request Form. Your Loan
Request Form together with your loan confirmation notice will be your
loan agreement and will contain all the terms of the loan which apply,
including amount of the loan, interest rate and the payment due.
Only one outstanding loan is permitted at a time under this Contract.
b. LOAN AMOUNT:
The minimum loan amount will be stated on the Loan Request Form. In no
event will the minimum amount of a loan be less than $1000. The
maximum amount of a loan will be determined as described in the next
paragraph subject in all cases only to the maximum amount which may be
described in the Code.
As a condition for making a loan, we will require you to state that
the loan amount requested, together with loans (principal plus
interest) from all other plans of your Employer, does not exceed the
maximum amount permitted under the Code.
The amount of the loan may not be more than the lesser of (A) or (B)
below:
(A) $50,000, less the highest outstanding balance of loans under any
plan of your Employer during the one-year-period ending the day
before the Loan Effective Date, over the outstanding balance of
loans under any plan of your Employer on the Loan Effective Date.
(B) the greater of (i) one half the present value of your
nonforfeitable accrued benefit under all plans of your Employer
or (ii) $10,000.
c. LOAN TERM:
The loan term will be five years. If you state on the Loan Request
Form that the purpose of the loan is to purchase your principal
residence, your loan term will be ten years. Repayment of the loan may
be accelerated and full repayment of unpaid principal and interest
will be required upon the earliest of (i) the election and
commencement of Annuity Benefits under "Commencement of Annuity
Benefits" of the Contract, (ii) the date the Contract terminates
pursuant to the section on "Termination", (iii) the date we pay a
death benefit pursuant to the section on "Death Benefit" of the
Contract, or (iv) any date where we determine the Code requires
acceleration of the loan repayment so that the Federal income tax
status of your TSA Contract is not adversely affected.
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d. LOAN RESERVE ACCOUNT:
On the Loan Effective Date, we will transfer to a loan reserve account
an amount equal to the sum of the loan amount, which will earn
interest at the "Loan Reserve Account Rate" during the loan term. You
may not make any partial withdrawals or transfers from the Loan
Reserve Account until after repayment. You may specify on your Loan
Request Form from which Investment Option(s) the Loan Reserve Account
will be funded.
The "Loan Reserve Account Rate" will equal the loan interest rate (see
"Loan Interest Rate") minus 2%, or such other percentage which is
determined according to our then current procedures and which is not
greater than permitted under any current applicable state or federal
law.
e. LOAN INTEREST RATE:
(i) This item (i) applies to your TSA Contract if an ERISA Plan does
not apply.
We will from time to time set the effective annual rate at which
interest on a loan will accrue daily (the "loan interest rate").
Such rate will be not greater than any maximum rate required
under any current applicable state or federal law.
(ii) This item (ii) applies if an ERISA Plan applies to your TSA
Contract.
We will from time to time determine the loan interest rate at
which interest on a loan will accrue daily; however, if requested
by the Employer, we will substitute the rate requested by the
Employer, subject to any limitations imposed by law. The rate so
determined by us will be a reasonable rate set in accordance with
Department of Labor Regulations 255.408b-1(e), and will be based
on prevailing rates available at the date of determination on
loans charged by persons in the business of lending money for
loans which would be made under similar circumstances.
f. REPAYMENTS:
The loan must be repaid according to the repayment schedule, which
will require that substantially level amortization payments of
principal and interest be made no less frequently than quarterly,
unless otherwise required or permitted by law. The rate so determined
by us will be a reasonable rates set in accordance with Department of
Labor Regulation 2550.408b-1(e), and will be based on prevailing rates
available at the date of determination on loans charged by persons in
the business of lending money for loans which would be made under
similar circumstances.
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g. DEFAULT:
By each repayment date, if the amount of the loan payment is less than
the amount due or the loan payment is not received at our Processing
Office, we will treat the amount of the unpaid balance of the loan at
that time, including interest due but not paid, as a deemed
distribution for Federal income tax purposes.
If the amount in the loan reserve account is not subject to the
restrictions described in "Restrictions on Payments" of this
Endorsement, on your default we reserve the right to deduct from the
loan reserve account an amount equal to the interest and principal
payments due. We also reserve the right to deduct any Withdrawal
Charges that apply and any required tax withholding.
If the amount in the loan reserve account is subject to the
restrictions described in "Restrictions on Payments" of this
Endorsement, on your default we will designate in the loan reserve
account an amount equal to the unpaid balance (interest and principal
payments due) at the time of the default. When your Contract is no
longer subject to the withdrawal restrictions as described in
"Restrictions on Payments", we will have the right to foreclose on
this amount, and deduct any Withdrawal Charges that would have applied
at the time of the default, plus any interest due, and any required
tax withholding. This will be no later than the date you attain age
59-1/2 or we are notified in writing that another event has occurred
which would permit Restricted Amounts to be paid. (Such an event
includes separation from service, disability or death.)
h. CHANGES:
We have the right to change the loan terms, as long as any such change
is made to maintain compliance with the terms of any law that applies
to the TSA Contract.
15. ASSIGNMENTS (SECTION 9.05):
No amount to be paid under the Contract may be assigned, commuted, or
encumbered by the payee. To the extent permitted by law, no such amount
will in any way be subject to any legal process to subject the same to the
payment of any claim against such payee. The foregoing will not apply to
any assignment, transfer or attachment pursuant to a qualified domestic
relations order as defined in section 414(p) of the Code. No interest under
the Contract may be transferred to any persons others than us upon
surrender of such interest.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
/s/Xxxxxxxxxxx X. Xxxxxxx /s/Xxxxxxx Xxxxxxx
------------------------------------ ------------------------------------
Xxxxxxxxxxx X. Xxxxxxx Xxxxxxx Xxxxxxx
Chairman and Chief Executive Officer Senior Vice President, Secretary and
Associate General Counsel
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DATA
PART A - THIS PART LISTS YOUR PERSONAL DATA
OWNER: [Xxxx Xxx] Age:[35] Sex:[Male]
ANNUITANT: [Annuitant is the same as Owner for TSA] [Xxxx Xxx]
Age:[35] Sex:[Male]
CONTRACT: [XXXX]
ENDORSEMENTS ATTACHED: [2002TSATRS-TX ]
ISSUE DATE: [June 5, 2002]
CONTRACT DATE: [June 5, 2002]
ANNUITY COMMENCEMENT DATE: [October 5, 2032]
THE MAXIMUM MATURITY AGE IS AGE 85 - SEE SECTION 7.03
BENEFICIARY: [Xxxx Xxx]
2002TSATRS-TX Data Page 1
DATA PAGES (CONT'D.)
PART B - THIS PART LISTS THE CONTRACT TERMS WHICH AFFECT THE TYPE OF CONTRACT
YOU HAVE.
INITIAL GUARANTEED INTEREST RATE [4.50% THROUGH DECEMBER 31, 2002]
MINIMUM GUARANTEED INTEREST RATE [4% THROUGH DECEMBER 31, 2002]
3% AFTER DECEMBER 31, 2002
INVESTMENT OPTIONS AVAILABLE (SEE PART II); YOUR ALLOCATION PERCENTAGE
(UNTIL CHANGED) IS ALSO SHOWN:
[INVESTMENT OPTION* TYPE ALLOCATION PERCENTAGE**
------------------ ---- ------------------------
o ALLIANCE EQUITY INDEX TYPE A [0%
o ALLIANCE GROWTH & INCOME TYPE A 0%
o ALLIANCE COMMON STOCK TYPE A 30%
o ALLIANCE GLOBAL TYPE A 0%
o ALLIANCE INTERNATIONAL TYPE A 0%
o ALLIANCE AGGRESSIVE STOCK TYPE A 20%
o ALLIANCE GROWTH INVESTORS TYPE A 0%
o ALLIANCE BALANCED TYPE A 0%
o ALLIANCE SMALL CAP GROWTH TYPE A 0%
o EQ/ALLIANCE PREMIER GROWTH TYPE A 0%
o ALLIANCE CONSERVATIVE INVESTORS TYPE B 0%
o ALLIANCE MONEY MARKET TYPE B 0%
o ALLIANCE INTERMEDIATE GOV'T. SECURITIES TYPE B 0%
o ALLIANCE QUALITY BOND TYPE B 0%
o ALLIANCE HIGH YIELD TYPE B 0%
o CAPITAL GUARDIAN RESEARCH TYPE A 0%
o CAPITAL GUARDIAN US EQUITY TYPE A 0%
o EQ/EVERGREEN FUND TYPE A 0%
o EQ/EVERGREEN FOUNDATION FUND TYPE A 0%
o X. XXXX PRICE INTERNATIONAL STOCK TYPE A 0%
o X. XXXX PRICE EQUITY INCOME TYPE A 0%
o EQ/XXXXXX GROWTH & INCOME VALUE TYPE A 0%
o EQ/XXXXXX BALANCED TYPE A 0%
o MFS RESEARCH TYPE A 0%
o MFS GROWTH WITH INCOME TYPE A 0%
o MFS EMERGING GROWTH COMPANIES TYPE A 0%
o MORGAN XXXXXXX EMERGING MARKETS EQUITY TYPE A 0%
o FI SMALL /MID CAP VALUE TYPE A 0%
x XXXXXXX XXXXX WORLD STRATEGY TYPE A 0%
x XXXXXXX XXXXX BASIC VALUE EQUITY TYPE A 0%
o GUARANTEED INTEREST ACCOUNT N/A 20%
o FIXED MATURITY OPTIONS (FMO) TYPE B 30%]
TOTAL: 100%]
o [FMO PERIODS RATES FMO PERIODS RATES
JUNE 13, 2003 3.00% JUNE 13, 2008 4.75%
JUNE 15, 2004 3.00% JUNE 15, 2009 5.05%
JUNE 15, 2005 3.40% JUNE 15, 2010 5.40%
JUNE 15, 2006 3.90% JUNE 15, 2011 5.65%
JUNE 15, 2007 4.35% JUNE 15, 2012 %]
*INVESTMENT OPTIONS SHOWN ARE INVESTMENT FUNDS OF OUR SEPARATE ACCOUNT
[A], EXCEPT THE FIXED MATURITY OPTIONS WHICH ARE IN OUR SEPARATE
ACCOUNT NO.[48.].
**SEE SECTION 3.01
2002TSATRS-TX Data Page 2
CONTRIBUTION LIMITS (SEE SECTION 3.02):
In addition to the maximum limits set by law as described in the Endorsement
Applicable to TSA Contracts, we may refuse to accept any Contribution that is
less than $20.
TRANSFER REQUESTS (SEE SECTION 4.01):
If you have elected the Guaranteed Interest Option and any Type B Investment
Option, whether or not amounts have actually been placed in any such Option,
then the maximum amount that may be transferred from the Guaranteed Interest
Option to any other Investment Option in any Contract Year is:
(a) 25% of the amount you have in the Guaranteed Interest Option on the last
day of the prior Contract Year or, if greater,
(b) the total of all amounts transferred at your request from the Guaranteed
Interest Option to any of the other Investment Options in the prior
Contract Year.
MINIMUM TRANSFER AMOUNT (SEE SECTION 4.01): $300 or the Annuity Account Value in
an investment option if less.
MINIMUM WITHDRAWAL AMOUNT (SEE SECTION 5.01): $300 or the Annuity Account Value
if less.
MINIMUM AMOUNT OF ANNUITY ACCOUNT VALUE AFTER A WITHDRAWAL (SEE SECTION 5.02):
$500.
DEATH BENEFIT AMOUNT (SEE SECTION 6.01):
The death benefit is equal to the greater of (1) the Annuity Account Value less
any outstanding loan and (2) the minimum death benefit. The minimum death
benefit is the sum of all Contributions (before reduction for any applicable tax
charge) less any withdrawals made and associated withdrawal charges, if any, and
repayment of any outstanding loan balance. Any such withdrawal will reduce the
minimum death benefit (as adjusted by any previous such withdrawal) by an amount
which is in the same proportion as the amount that was withdrawn is to the
Annuity Account Value.
NORMAL FORM OF ANNUITY (SEE SECTION 7.04):
The Normal Form of Annuity is the Life Period Certain.
MINIMUM AMOUNT TO BE APPLIED FOR AN ANNUITY (SEE SECTION 7.05):
$2,000, as well as a minimum of $20 for an initial monthly annuity payment.
INTEREST RATE TO BE APPLIED OR MISSTATEMENT OF AGE OR SEX (SEE SECTION 7.06):
6% per year.
2002TSATRS-TX Data Page 3
WITHDRAWAL CHARGE (SEE SECTION 8.01):
The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Contract Year 1 4.50% during Contract Year 7
5.75% during Contract Year 2 4.25% during Contract Year 8
5.50% during Contract Year 3 4.00% during Contract Year 9
5.25% during Contract Year 4 3.00% during Contract Year 10
5.00% during Contract Year 5 1.00% during Contract Year 11
4.75% during Contract Year 6 1.00% during Contract Year 12
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount and
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior charges for partial
withdrawals.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount. If
withdrawals are made from this Contract prior to the Annuity Commencement Date,
any applicable tax charges we have paid may be deducted. If we have previously
deducted charges for applicable taxes from Contributions, we will not again
deduct charges for the same taxes on withdrawals, unless a change in applicable
law has occurred with respect to the Contract.
FREE CORRIDOR AMOUNT (SEE SECTION 8.01):
The Free Corridor Amount means an amount equal to the excess, if any, of (i) 10%
of the sum of the Annuity Account Value on the Transaction Date over (ii)
cumulative prior withdrawals made in the current Contract Year or repayment of
interest or principal on a loan in the current Contract Year.
NO WITHDRAWAL CHARGES WILL APPLY IN THESE EVENTS, EACH OF WHICH OCCURS AFTER THE
CONTRACT DATE:
(1) Your attainment of age 59 and 6 months, and the completion of at least five
Contract Years, or
(2) You die and a distribution is made to the beneficiary, or
(3) Your attainment of age 55, the completion of at least five Contract Years
and the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase an
Eligible Annuity Certain, defined in Section 1.14, or
(4) the completion of at least three Contract Years and the receipt by us of a
properly completed settlement election form providing for the application
of the Annuity Account Value to purchase a Period Certain Annuity where the
certain period of such annuity is at least ten years, or
(5) the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase a
Life Annuity distribution option, or
(6) Your attainment of age 55, the completion of at least five Contract Years,
and separation from service, or
(7) Your completion of at least twelve Contract Years.
ADMINISTRATIVE AND OTHER CHARGES (SEE SECTION 8.02):
The lesser of $30 or 2% of the Annuity Account Value plus any amount
previously withdrawn during that Contract Year. This amount may be
increased to a maximum of $50 in accordance with Section 8.02.
No Administrative Charge will apply if the Annuity Account Value is $25,000
or more at the end of the Contract Year.
2002TSATRS-TX Data Page 4
The charge will be allocated among the Investment Options in proportion to
the amounts in the Investment Options. For this purpose, any loan reserve
amount is included within the Guaranteed Interest Option. The portion of
the charge attributable to the Guaranteed Interest Option and any loan
reserve account will be first withdrawn from the Guaranteed Interest Option
and then, if the amount in the Guaranteed Interest Option is not
sufficient, the remaining allocation will be withdrawn from the portion of
the loan reserve account that earns interest at the Guaranteed Interest
Rate.
Charges for state premium and other applicable taxes will be deducted from
the amount to provide an Annuity Benefit under Section 7.02. No premium
taxes currently apply to Texas annuity contracts.
SEPARATE ACCOUNT CHARGE (SEE SECTION 8.04):
Currently, we charge 1.40% for the EQ/Balanced, EQ/Alliance Common Stock and
EQ/Alliance Money Market Variable Investment Options. This charge may be
increased to a maximum of 1.49%.
We charge 1.34% for all other Variable Investment Options.
For the EQ/Aggressive Stock, EQ/Balanced, EQ/Alliance Common Stock and
EQ/Alliance Money Market Variable Investment Options, the total Separate Account
charge when added with the Portfolio fees, charges and expenses will not exceed
1.75%.
For all other Variable Investment Options the total Separate Account Charge when
added with the Portfolio fees, charges and expenses will not exceed 2.75%,
unless a higher rate is permitted by the Teacher Retirement System of Texas.
2002TSATRS-TX Data Page 5
