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EXHIBIT B(4)(a)
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The Northwestern Mutual Life Insurance Company agrees to pay the benefits
provided in this contract, subject to its terms and conditions. Signed at
Milwaukee, Wisconsin on the Date of Issue.
/s/ Xxxxx X. Xxxxxxx /s/ Xxxx X. Xxxxxx
PRESIDENT AND C.E.O. SECRETARY
GROUP COMBINATION ANNUITY
Benefits provided by investments in Separate Account Divisions (Section 2) or
Guaranteed Return Fund Accounts (Section 3).
Contract benefits payable in one sum or as Variable or Guaranteed monthly
income. Variable Payment Plan benefits described in Sections 7, 8 and 9.
Participating.
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DIVISIONS AND VARIABLE PAYMENTS
PROVIDED BY THIS CONTRACT ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT BUT ARE
VARIABLE AND MAY INCREASE OR DECREASE TO REFLECT THE INVESTMENT EXPERIENCE OF
THE SEPARATE ACCOUNT.
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NORTHWESTERN
MUTUAL LIFE-Registered Trademark
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OWNER TRUSTEES OF XXXX XXX CORPORATION TRUST
CONTRACT NUMBER 10 000 001
CONTRACT DATE MAY 3, 1994
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This is a legal contract between the Owner and
The Northwestern Mutual Life Insurance Company
Read your contract carefully.
GUIDE TO POLICY PROVISIONS
Page
LOADS, FEES, AND CHARGES 3
SECTION 1. BENEFITS 5
Benefits paid at Owners direction.
Investment accounts.
SECTION 2. ACCUMULATION UNITS IN SEPARATE ACCOUNT 5
Definition of Separate Account, Valuation Date,
Accumulation Units, and Net Investment Factor.
Valuation of Assets.
SECTION 3. GUARANTEED RETURN FUND ACCOUNTS 6
Definition of Guaranteed Return Fund (GRF) Account and
GRF Account Accumulation Value.
Maturity of amounts in a GRF Account.
GRF Accounts Maximum. Market Value Adjustment.
SECTION 4. PURCHASE PAYMENTS, TRANSFERS, AND WITHDRAWALS 7
Payment and allocation of purchase payments.
Limitations on acceptance of purchase payments.
Transfers between and withdrawals from investment accounts.
Definition of Effective Date of a transaction.
SECTION 5. OWNERSHIP 8
Rights of the Owner. Reports to Owner.
SECTION 6. THE CONTRACT 9
Changes by the Company.
Determination of values.
Termination of the contract.
SECTION 7. BENEFITS UNDER PAYMENT PLANS 10
Benefits to Annuitants.
Description of payment plans.
Beneficiaries.
Transfers between and withdrawals under payment plans.
SECTION 8. CALCULATIONS REGARDING VARIABLE PAYMENT PLANS 11
Definition of Annuity Unit.
Payments under variable payment plans.
SECTION 9. PAYMENT PLAN RATES 12
Guaranteed monthly payment rates.
APPLICATION Attached to the contract
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LOADS, FEES, AND CHARGES
(SUBJECT TO AMENDMENT, SECTION 6.5)
DEDUCTIONS FROM PURCHASE PAYMENTS (SECTION 4.3):
INSTALLATION FEE: NOT APPLICABLE
SALES LOAD: CUMULATIVE PURCHASE PAYMENTS
PAID UNDER THE CONTRACT DEDUCTION
FIRST $ 150,000 4.50%
NEXT 350,000 3.00
NEXT 500,000 1.00
BALANCE OVER 1,000,000 0.50
ANNUAL ANNUITY RATE AND EXPENSE GUARANTEE CHARGE (SECTION 2.4):
0.65% AT ISSUE; 1.00% MAXIMUM
ADMINISTRATION FEE (SECTION 6.7):
$ 150 PER YEAR IF THE CONTRACT VALUE IS LESS THAN $ 25,000 ON THE CONTRACT
ANNIVERSARY
TRANSFER FEE (SECTION 4.4)
$ 25 PER TRANSFER BEGINNING WITH THE THIRTEENTH TRANSFER IN ANY CONTRACT
YEAR
PURCHASE PAYMENTS AND ACCUMULATED VALUE
MINIMUM PURCHASE PAYMENT:
$ 100
GUARANTEED RETURN FUND ACCOUNTS MAXIMUM (SECTION 3.4):
$ 10,000,000
MINIMUM CONTRACT VALUE (SECTION 6.7):
$ 25,000 BEGINNING ON THE FIRST CONTRACT ANNIVERSARY
OWNER TRUSTEES OF XXXX XXX CORPORATION TRUST
CONTRACT NUMBER 10 000 001
CONTRACT DATE MAY 3, 1994
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SECTION 1. BENEFITS
1.1 GROUP ANNUITY
The Northwestern Mutual Life Insurance Company ("the Company") agrees to
provide benefits in accordance with the terms and conditions of this annuity
contract. The benefits will be provided from amounts accumulated in one or more
investment accounts. The investment accounts are the Divisions of the Separate
Account (Section 2) and the Guaranteed Return Fund Accounts (Section 3).
1.2 BENEFITS AT DIRECTION OF OWNER
The value of the investment accounts will be used to provide the amount
required to pay benefits as directed by the Owner. Upon the Owners request,
contract benefits will be paid under one or more of the following:
- a variable payment plan.
- a fixed payment plan.
- in cash.
SECTION 2. ACCUMULATION UNITS IN SEPARATE ACCOUNT
2.1 SEPARATE ACCOUNT
Net purchase payments received (Section 4.3) or amounts transferred from
other investment accounts under this contract (Section 4.4) may be placed in the
Separate Account. The Separate Account ("NML Variable Annuity Account C") and
its Divisions have been established by the Company pursuant to Wisconsin Law
relating to separate investment accounts. Interests in the Separate Account are
represented by the Accumulation Units described in Section 2.3.
Assets of the Separate Account are owned by the Company. The Company is
not a trustee of the Separate Account assets. The Company may from time to time
adjust the amount of assets contained in the Separate Account, by periodic
withdrawals or additions, to reflect the contract provisions and the Company's
reserves for this and other similar contracts.
The Separate Account is comprised of the Select Bond, International
Equity, Money Market, Balanced, Index 500 Stock, Aggressive Growth Stock, High
Yield Bond, Growth Stock, and Growth and Income Stock Divisions. Assets
allocated to these Divisions are invested in shares of Northwestern Mutual
Series Fund, Inc. (the "Fund"). The Fund is registered under the Investment
Company Act of 1940 as an open-end, diversified investment company. The Fund has
nine Portfolios: Select Bond Portfolio, International Equity Portfolio, Money
Market Portfolio, Balanced Portfolio, Index 500 Stock Portfolio, Aggressive
Growth Stock Portfolio, High Yield Bond Portfolio, Growth Stock Portfolio, and
Growth and Income Stock Portfolio. Assets of each Division of the Separate
Account are invested in shares of the corresponding Portfolio of the Fund.
Shares of the fund are purchased for the Separate Account at their asset value.
Shares of the Fund are purchased for the Separate Account at their net
asset value.
The Company may make available additional Divisions and Portfolios.
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Equity, Money Market, Balanced, Index 500 Stock, Aggressive Growth Stock, High
Yield Bond, Growth Stock, and Growth and Income Stock Divisions. Assets
allocated to these Divisions are invested in shares of Northwestern Mutual
Series Fund, Inc. (the "Fund"). The Fund is registered under the Investment
Company Act of 1940 as an open-end, diversified investment company. The Fund has
nine Portfolios: Select Bond Portfolio, International Equity Portfolio, Money
Market Portfolio, Balanced Portfolio, Index 500 Stock Portfolio, Aggressive
Growth Stock Portfolio, High Yield Bond Portfolio, Growth Stock Portfolio, and
Growth and Income Stock Portfolio. Assets of each Division of the Separate
Account are invested in shares of the corresponding Portfolio of the Fund.
Shares of the fund are purchased for the Separate Account at their asset value.
Shares of the Fund are purchased for the Separate Account at their net
asset value.
The Company may make available additional Divisions and Portfolios.
2.2 VALUATION OF SEPARATE ACCOUNT ASSETS
A Valuation Date is any day on which the assets of the Separate Account
are valued. Assets are valued as of the close of trading on the New York Stock
Exchange for each day the Exchange is open.
The value of the shares of each Fund held in the Separate Account on each
Valuation Date will be the redemption value of the shares on that date. If the
right to redeem shares of a Fund has been suspended, or if payment of the
redemption value has been postponed, the shares held in the Separate Account may
be valued at fair value as determined in good faith by the Board of Trustees of
the Company for the sole purpose of computing annuity benefits.
2.3 ACCUMULATION UNITS
The interests of this contract in the Separate Account are represented by
Accumulation Units. The dollar value of Accumulation Units for each Division
will increase or decrease to reflect the investment experience of the Division.
The value of an Accumulation Unit on any Valuation Date is determined by
multiplying:
- the value of the Accumulation Unit on the immediately preceding
Valuation Date; by
- the Net Investment Factor for the period starting on the immediately
preceding Valuation Date up to and including the current Valuation
Date (the current period).
Accumulation Units are credited or surrendered as of the Effective Date of
the purchase payment, transfer, or withdrawal.
The number of Accumulation Units will be determined by dividing:
- the net purchase payment (see Section 4.3) or the requested transfer
or withdrawal amounts; by
- the value of an Accumulation Unit on that Valuation Date.
This number of Accumulation Units will not be changed by any later change
in the dollar value of the Accumulation Units.
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2.4 NET INVESTMENT FACTOR
For each Division of the Separate Account the Net Investment Factor for
the current period is 1.000000 plus the net investment rate for that Division.
The net investment rate for the current period is equal to the gross investment
rate for the Division, expressed in decimal form to six places, reduced on each
Valuation Date by a charge for annuity rate and expense guarantees. The charge
for these guarantees on the date of issue and the maximum charge are shown on
page 3.
The gross investment rate for the current period for each Division is
equal to a. divided by b. where:
a. is defined as
(1) the investment income of the Division for the current period;
(2) plus capital gains and minus capital losses for the period,
whether realized or unrealized, on the assets of the Division;
(3) less any taxes paid or reserved for by the Company resulting
from the maintenance or operation of the Division; and
(4) less any reasonable expenses paid or reserved for by the
Company which result from a substitution of other securities
for shares of the Fund as set forth in Section 2.5; and
b. is defined as the value of the assets in the Division as determined
on the immediately preceding Valuation Date.
The gross investment rate may be positive or negative. The deduction for
any tax liability may be charged proportionately against those contracts to
which the liability is attributable by a reduction in the gross investment rate
for those contracts.
2.5 SUBSTITUTION AND CHANGE
Pursuant to the authority of the Board of Trustees of the Company:
- the assets of a Division maybe invested in securities other than
shares of the Fund as a substitute for those shares already
purchased or shares to be purchased in the future.
- the provisions of the contract may be changed to comply with any
applicable federal or state laws.
In the event of a substitution or change, the Company may make appropriate
endorsement on this and other contracts having an interest in the Separate
Account and take such other actions as may be necessary to effect the
substitution or change.
SECTION 3. GUARANTEED RETURN FUND ACCOUNTS
3.1 PURCHASE PAYMENTS AND TRANSFERS
Net purchase payments received (see Section 4.3) or amounts transferred
from other investment accounts under this contract (see Section 4.4) may be
credited to a Guaranteed Return Fund Account (GRF Account). A GRF Account is
defined by the interest rate guarantee period established for amounts deposited
into it.
Amounts are credited to a GRF Account as of the Effective Date of the
purchase payment or transfer.
3.2 GRF ACCOUNT ACCUMULATION VALUE
The Accumulation Value for a GRF Account is the sum of the amounts
deposited into it plus interest less any amounts removed. Interest begins to
accrue on an amount in a GRF Account on the date the amount is credited at the
Home Office.
3.3 MATURITY OF AMOUNTS IN A GRF ACCOUNT
On the last day of a guarantee period for an amount in a GRF account the
Accumulation Value for that amount will be transferred to the Money Market
Division where it will remain until the Owner instructs the Company otherwise.
However, if the last day of the guarantee period does not fall on a Valuation
Day, then the Accumulation Value will be transferred on the next following
Valuation Date.
3.4 GRF ACCOUNTS MAXIMUM
The sum of the Accumulation Values of all the GRF Accounts may not exceed
the GRF Accounts Maximum shown on page 3, except when the Maximum is exceeded
because of interest accruing to the GRF Accounts. To the extent that any
purchase payments or transfers result in the sum of the Accumulation Values of
all the GRF Accounts exceeding the Maximum, the amount of such excess will be
placed in the Money Market Division of the Separate Account. This amount will
remain in the Money Market Division until the Owner instructs the Company
otherwise.
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3.5 MARKET VALUE ADJUSTMENT
A market value adjustment will be added to each amount in a GRF Account
that is withdrawn or transferred prior to the end of the guarantee period, with
the following exceptions:
- amounts withdrawn to purchase an annuity under Section 7; or
- amounts withdrawn or transferred within 30 days prior to the end of
the guarantee period; or
- amounts withdrawn to pay a Transfer Fee (Section 4.4) or to pay an
Administration Fee (Section 6.7); or
- amounts withdrawn to pay a Plan participant's individual account
balance subject to the following provisions:
- the payment must be as a result of the bona fide termination
of employment of such participant;
- the Plan must be a defined contribution plan;
- the payment must be in accordance with the provisions of the
relevant Plan; and
Reasonable proof that these provisions are met must be provided to the
Company upon request.
Amounts will be removed from a GRF Account until the total amount of the
transfer or withdrawal request is satisfied. Amounts closest to maturity will be
removed first; in the event that two amounts are equally close to maturity, the
one which was credited to the GRF Account earlier will be removed first. The
Market Value Adjustment (MVA) for each amount removed from a GRF Account will be
based on: (a) the amount removed from the GRF Account (b) the time remaining to
the end of the guarantee period, (c) the guaranteed interest rate on the amount
removed, and (d) the Company's declared interest rate for a new purchase payment
deposited into a GRF Account, as follows:
For each amount removed,
MVA = AMT X n X ((i)g (i)new)
where: AMT = amount removed
n = time remaining to the end of the guarantee period for
the amounts removed from the GRF Account, expressed as
number of days remaining divided by 365
(i)g = guaranteed interest rate (in decimal form) on the amount
removed from the GRF Account
(i)new = declared interest rate (in decimal form) for a new
purchase payment to a GRF Account with the shortest
available guarantee period greater than or equal to n.
If no such guarantee period exists, the declare interest
rate will be based on the longest available guarantee
period.
The total Market Value Adjustment for the transfer or withdrawal request
will be the sum of the MVAs for each amount removed.
SECTION 4. PURCHASE PAYMENTS, TRANSFERS, AND WITHDRAWALS
4.1 PAYMENT OF PURCHASE PAYMENTS
All purchase payments after the first are payable at the Home Office.
Subject to Section 4.2, purchase payments may be paid at any time in the amounts
needed to meet the obligations of the Plan or the Trust.
4.2 LIMITATION ON ACCEPTANCE OF PURCHASE PAYMENTS
The Owner may vary the amounts of the purchase payments, but no purchase
payment may be less than the Minimum Purchase Payment shown on page 3. The
Company may limit the maximum amount of any purchase payment in accordance with
its published rules in effect at the time the purchase payment is paid. The
Company may limit purchase payments paid to the Guaranteed Return Fund Accounts
(Section 3.4).
Purchase payments may not be paid under this contract unless they are
contributions for funding, or for payment of fees or loads, under a pension or
profit sharing plan or trust that is qualified under Section 401 of the Internal
Revenue Code.
4.3 DEDUCTIONS; ALLOCATION OF NET PURCHASE PAYMENTS
The Company will deduct the Installation Fee shown on page 3 from the
first purchase payment received. The Company will also deduct from purchase
payments received the Sales Load shown on page 3 and a charge for any premium
tax incurred.
A net purchase payment is a purchase payment received less the deductions
for Installation Fee, Sales Load and premium tax. Each net purchase patent will
be allocated as directed in writing by the Owner, through a request satisfactory
to the Company, to one or more of the investment accounts. If no instructions
are received from the Owner, a net purchase payment will be allocated to the
Money Market Division of the Separate Account.
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4.4 TRANSFERS AND WITHDRAWALS
The Owner may, on request satisfactory to the Company, transfer amounts
from one investment account to another or withdraw amounts from an investment
account. A transfer may be subject to a Transfer Fee (page 3).
In the case of transfers between Divisions of the Separate Account the
number of Accumulation Units to be credited will be adjusted to reflect the
respective value of the Accumulation Units in each of the Divisions. A transfer
or withdrawal from a GRF Account may be subject to a market value adjustment
(see Section 3.5).
The total value of the amounts transferred (net of market value
adjustments) from investment account(s) must exceed any applicable Transfer Fee.
The transfer or withdrawal will be made as of its Effective Date. The
Company may establish waiting periods between transfers or withdrawals.
4.5 EFFECTIVE DATE OF A TRANSACTION
If the request for a transaction, including any purchase payment,
transfer, withdrawal, or termination, does not specify a future transaction
date, the Effective Date of the transaction is generally the Valuation Date
coincident with the date on which the transaction request is received at the
Home Office. However, the Effective Date of the transaction is the next
following Valuation Date if the transaction request is received at the Home
Office either: (a) on a Valuation Date after the close of trading on the New
York Stock Exchange (NYSE); or (b) on a day on which the NYSE is closed.
If the request for the transaction specifies a future transaction date,
the Effective Date of the transaction is generally the Valuation Date coincident
with the specified date. However, if the NYSE is closed on the specified date,
the Effective Date of the transaction is the next following Valuation Date.
The Effective Date of an automatic transaction, such as the application of
a dividend or the deduction of the Administration Fee, is generally the
Valuation Date coincident with the date on which the Company processes the
transaction. However, if the NYSE is closed on the processing date, the
Effective Date of the transaction is the next following Valuation Date.
SECTION 5. OWNERSHIP
5.1 THE OWNER
The Owner of this contract is named on page 3. All contract rights may be
exercised by the Owner, or by the Owners successor or transferee, without the
consent of any other person.
5.2 TRANSFER OF OWNERSHIP
The Owner may transfer the ownership of this contract to a new Owner who
acknowledges in writing that the new Owner is acting as the fiduciary of a
pension or profit-sharing plan under Section 401 of the Internal Revenue Code.
Written proof of transfer satisfactory to the Company must be received at its
Home Office. The transfer will then take effect as of the date it was signed.
The Company will not be responsible to the new Owner for any payment or other
action taken by the Company before receipt of the written proof of transfer at
the Home Office. The Company may require that the contract be sent to it for
endorsement to show the transfer.
5.3 ASSIGNMENT
The Owner may not assign this contract without the consent of the Company.
The Company is not responsible for the validity or effect of any assignment. The
Company will not be responsible to an assignee for any payment or other action
taken by the Company before the Company consents to an assignment.
5.4 REPORTS TO OWNER
At least once each contract year, the Company will send to the Owner a
statement of:
- the number of Accumulation Units in each Division of the Separate
Account credited to the contract;
- the dollar value of an Accumulation Unit in each Division as of a
date not more than two months prior to the date of mailing;
- the investments held by the Separate Account; and
- the total Accumulation Value for each GRF Account.
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SECTION 6. THE CONTRACT
6.1 ENTIRE CONTRACT; CHANGES
This contract with the attached application is the entire contract. This
contract is subject to the laws of the state in which it is delivered. A change
in the contract is valid only if it is approved in writing by an officer of the
Company. The Company may require that the contract be sent to it for endorsement
to show a change. No agent has the authority to change the contract or to waive
any of its terms.
6.2 DATES
Contract months, years and anniversaries are computed from the Contract
Date. The Contract Date is shown on page 3.
6.3 PAYMENTS BY THE COMPANY
All payments by the Company under this contract are payable at its Home
Office.
6.4 DETERMINATION OF VALUES
The method of determination by the Company of the Net Investment Factor,
of the number and value of Accumulation Units and Annuity Units, and of the
declared rates in the Guaranteed Return Fund Accounts, will be conclusive upon
the Owner, and upon any assignee, participant, annuitant, or beneficiary.
6.5 AMENDMENTS
After the fifth contract year the Company may amend this contract from
time to time with respect to:
- the Installation Fee;
- the Sales Load;
- the Maximum Annual Annuity Rate and Expense Guarantee Charge;
- the Administration Fee;
- the Transfer Fee;
- the Minimum Purchase Payment;
- the GRF Accounts Maximum;
- the Minimum Contract Value; and
- the Payment Rate Tables shown in Section 9.
The amendment will take effect not less than 30 days after written notice
to the Owner. An amendment to the Payment Rate Tables will not apply to a
payment plan that starts before the amendment becomes effective.
6.6 DEFERMENT OF BENEFIT PAYMENTS
The Company may defer determination and payment of contract benefits and
payments or withdrawals (Section 7.5) under a variable patent plan until after
the end of any period during which the right to redeem shares of a Fund is
suspended, or during which payment of the redemption value is postponed. Any
deferment would be in accordance with the provisions of the Investment Company
Act of 1940 by reason of the closing of, or the restriction of trading on, the
New York Stock Exchange, or other emergency, or as otherwise permitted by the
Act. In addition, the Company reserves the right to defer payment of benefits
from any of the Divisions of the Separate Account until seven days after the end
of a deferment in the determination of such benefits.
The Company reserves the right to defer payment of contract benefits from
a GRF Account and withdrawals under a fixed payment plan (Section 7.5) for up to
six months from the date of request If payment is deferred for 30 days or more,
interest will be paid on the benefit proceeds at an annual effective rate of
3 1/2% from the date of request to the date of payment.
6.7 TERMINATION OF CONTRACT
The Company reserves the right to terminate this contract if the
representations of the Owner contained in the attached application are or become
incorrect.
At any time after this contract has been in force for one year, the
Company may terminate it if the Contract Value (the total of all amounts in all
- the Transfer Fee;
- the Minimum Purchase Payment;
- the GRF Accounts Maximum;
- the Minimum Contract Value; and
- the Payment Rate Tables shown in Section 9.
The amendment will take effect not less than 30 days after written notice
to the Owner. An amendment to the Payment Rate Tables will not apply to a
payment plan that starts before the amendment becomes effective.
6.6 DEFERMENT OF BENEFIT PAYMENTS
The Company may defer determination and payment of contract benefits and
payments or withdrawals (Section 7.5) under a variable patent plan until after
the end of any period during which the right to redeem shares of a Fund is
suspended, or during which payment of the redemption value is postponed. Any
deferment would be in accordance with the provisions of the Investment Company
Act of 1940 by reason of the closing of, or the restriction of trading on, the
New York Stock Exchange, or other emergency, or as otherwise permitted by the
Act. In addition, the Company reserves the right to defer payment of benefits
from any of the Divisions of the Separate Account until seven days after the end
of a deferment in the determination of such benefits.
The Company reserves the right to defer payment of contract benefits from
a GRF Account and withdrawals under a fixed payment plan (Section 7.5) for up to
six months from the date of request If payment is deferred for 30 days or more,
interest will be paid on the benefit proceeds at an annual effective rate of
3 1/2% from the date of request to the date of payment.
6.7 TERMINATION OF CONTRACT
The Company reserves the right to terminate this contract if the
representations of the Owner contained in the attached application are or become
incorrect.
At any time after this contract has been in force for one year, the
Company may terminate it if the Contract Value (the total of all amounts in all
investment accounts) is less than the Minimum Contract Value shown on page 3.
The contract will terminate on the date stated in a notice mailed to the Owner,
the date not to be less than 60 days after the date of mailing.
However, in lieu of terminating the contract, the Company may assess the
Administration Fee shown on page 3. This fee will be charged annually on the
contract anniversary if, on the contract anniversary, the Contract Value is less
than the Minimum Contract Value. This fee will be deducted from the investment
accounts in proportion to the value of those accounts. The investment accounts
will be valued as of the Effective Date that the fee is charged.
The Owner may terminate the contract by written notice to the Company. The
termination date will be specified by the Owner in the written notice, but this
date will not be earlier than the date the Company receives the written notice.
On termination of the contract, the value of any Accumulation Units and
the value of any GRF Accounts, as adjusted for any market value adjustment, will
be determined as of the Effective Date of the termination. The Company may
require that the contract be sent to it.
6.8 DIVIDENDS
This contract, except for payment plans, will share in the divisible
surplus of the Company to the extent it contributes to divisible surplus.
Divisible surplus is determined each year. This policy's share will be credited
as a dividend on the contract anniversary. Any dividend will automatically be
applied as a purchase payment, without deductions, to the Money Market Division
of the Separate Account on the Effective Date of the dividend credit.
Since this policy is not expected to contribute to divisible surplus, it
is not expected that any dividends will be paid.
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6.9 PROVISIONS OF THE PLAN OR TRUST AGREEMENT
The Company makes no representation as to the sufficiency of this contract
to provide annuity benefits in accordance with the provisions of the Plan or
Trust.
The Company may deal with the Owner without regard to the provisions of
the Plan or Trust Agreement. The Company is not a fiduciary under the Plan or
Trust Agreement, nor to its participants, and has no responsibility to ascertain
whether or not benefits paid by the contract meet the requirements of any state
or federal legislation relating to plans or trusts.
Nothing in the Plan or Trust Agreement will:
- affect the obligations of the Company as provided in this contract;
- hold the Company responsible for any failure of the Owner to perform
his duties; or
- hold the Company responsible for application or disposition of
monies paid to, or at the direction of, the Owner. These payments
will fully discharge the Company with respect to the amount so paid.
SECTION 7. BENEFITS UNDER PAYMENT PLANS
7.1 BENEFITS TO ANNUITANTS
A participant must be an employee (including an "owner-employee") who is
or may become eligible for benefits under the Plan or Trust. The annuitant under
a payment plan will be the participant or his beneficiary. The Company will, on
request satisfactory to it, pay benefits to annuitants named by the Owner.
The Owner may elect a payment plan with payments greater than or equal to
the minimums then in effect for payment plans then being offered by the Company.
The Company will determine the amount required to provide the requested
benefits. This amount will be withdrawn from the designated investment accounts
as of the Effective Date of the withdrawal.
If amounts are taken from a Division of the Separate Account, Accumulation
Units will be redeemed in accordance with Section 2.3. If benefits are to be
paid under a fixed payment plan, the Company will transfer the required amount
to its General Account.
The first payment under a payment plan will be due as of the effective
date of the payment plan and will be paid promptly after that date.
The Company will issue to the annuitant a certificate describing his
rights and benefits.
7.2 DESCRIPTION OF PAYMENT PLANS
The Owner may elect to provide payment of part or all of the contract
benefits to an annuitant under the following variable or fixed payment plans:
Installment Income For Specified Period (Option B)
The Company will make monthly installment income payments over a specified
period of five to 30 years.
Life Income Plans
- Single Life Income (Option C). The Company will make monthly
payments for the selected certain period and thereafter during the
remaining lifetime of the annuitant. The selections available are:
(a) no certain period; or (b) a certain period of 10 or 20 years.
- joint And Survivor Life Income (Option E). The Company will make
monthly payments for a 10 year certain period and thereafter during
the joint lifetime of the annuitant and joint annuitant and
continuing during the remaining lifetime of the survivor.
- Limitations. An Annuitant may be paid under a Life Income Plan only
if the Annuitant is a natural person and if the payments depend on
that person's life.
- Other Selections. The Company may offer other selections under the
life income plans.
7.3 BENEFICIARIES
Naming and Change of Beneficiary by Annuitant. The annuitant may name and
change the beneficiaries for payments under a payment plan that remain unpaid on
the date of the death of the annuitant (or on the date of the death of the
second to die of the annuitant and the joint annuitant if any).
If there are no named beneficiaries alive on the date of the death of the
annuitant (or on the date of the death of the second to die of the annuitant and
the joint annuitant if any), any withdrawal value will be paid to the estate of
the annuitant (or to the estate of the second to die of the annuitant and the
joint annuitant, if any).
A naming or change of a beneficiary will be made on receipt at the Home
Office of a written request that is acceptable to the Company. The request will
then take effect as of the date that it was signed. The Company is not
responsible for any payment or other action that is taken by it before the
receipt of the request.
Other Beneficiary Provisions. A certificate that is issued to provide
benefits to the annuitant may contain other beneficiary provisions of annuity
contracts issued by the Company on the date of issue of the certificate.
NPV.1C 10
11
7.4 TRANSFER BETWEEN PAYMENT PLANS
An annuitant or joint annuitant receiving benefits under any payment plan
which includes the right of withdrawal may transfer the withdrawal value to any
other payment plan.
An annuitant or joint annuitant receiving benefits under a variable
payment plan may, on request satisfactory to the Company, transfer Annuity Units
from one Division to another. The number of Annuity Units to be credited will be
adjusted to reflect the respective value of the Annuity Units in each of the
Divisions.
The transfer will be made as of its Effective Date. Any charges for the
transfer will be determined by the Company and deducted from the value of the
amounts transferred. The Company may establish waiting periods between
transfers.
7.5 WITHDRAWAL UNDER PAYMENT PLANS
Withdrawal of the present value of any unpaid income payments may be
elected at any time by the annuitant, joint annuitant, or beneficiary. However,
withdrawal may not be elected under a Life Income Plan (Option C or E) until the
death of all individuals upon whose lives the payments depend.
The withdrawal value under the Installment Income Plan (Option B) will be
the present value of any unpaid payments. The withdrawal value under all Life
Income Plans (Options C and E), where available, will be the present value of
any unpaid payments for the certain period.
For a fixed payment plan, the present value of any unpaid payments will be
based on the interest rate used to determine the amount of the payments.
For a variable payment plan, the present value of any unpaid payments will
be based on interest at the Assumed Investment Rate used in calculating the
variable payments. The amount of the payment used in calculating the present
value of unpaid payments will be determined by multiplying:
- the number of Annuity Units; by
- the value of an Annuity Unit on the Effective Date of withdrawal.
The withdrawal will be made as of its Effective Date. Any charges for the
withdrawal will be determined by the Company and deducted from the value of the
amounts withdrawn.
SECTION 8. CALCULATIONS REGARDING VARIABLE PAYMENT PLANS
8.1 ALLOCATION OF BENEFITS
Variable annuity benefits may be paid from any of the Divisions of the
Separate Account described in Section 2.1. Under a variable payment plan, the
annuitant must select the initial allocation of variable benefits among the
Divisions. The annuitant may make transfers between payment plans subject to the
terms set forth in Section 7.4.
8.2 ANNUITY UNITS UNDER VARIABLE PAYMENT PLANS
The interest of the annuitant in the Separate Account after the effective
date of a variable payment plan is represented by Annuity Units. The dollar
value of Annuity Units for each Division will increase or decrease to reflect
the investment experience of the Division. The value of an Annuity Unit on any
Valuation Date is determined by multiplying the Annuity Unit Value on the
immediately preceding Valuation Date by:
- the Net Investment Factor for the current period, as defined in
Section 2.4, for the Division; and
- the Daily Adjustment Factor of .99990575 raised to a power equal to
the number of days in the current period to reflect the Assumed
Investment Rate of 3 1/2% used in calculating the monthly payment
rate.
8.3 PAYMENTS UNDER VARIABLE PAYMENT PLANS
The amount of the First Payment is the sum of payments from each Division,
each determined by multiplying the benefits allocated to the Division under
the variable payment plan by the applicable variable payment rate per $1,000 of
benefits.
Number of Annuity Units. The number of Annuity Units in each Division
under a variable payment plan is determined by dividing the portion of the First
Payment from that Division by the Annuity Unit value for the Division at the
close of business on the Valuation Date coincident with or next receding the
date on which the variable payment plan becomes effective. The number of Annuity
Units will not be changed by any later change in the dollar value of Annuity
Units.
Subsequent Variable Payments. The amount of subsequent payments under a
variable payment plan will increase or decrease according to the value of
Annuity Units which reflect the investment experience of each Division of the
Separate Account.
The amount of subsequent variable payments is the sum of payments from
each Division, each payment being determined by multiplying the fixed number of
Annuity Units for the Division by the value of an Annuity Unit for that Division
on:
- the fifth Valuation Date prior to the payment due date, if the
payment due date is a Valuation Date; or
- the sixth Valuation Date prior to the payment due date, if the
payment due date is not a Valuation Date.
NPV.1C 11
12
SECTION 9. PAYMENT PLAN RATES
9.1 PAYMENT RATE TABLES
The guaranteed monthly payment rates for both a fixed payment plan and the
first payment under a variable payment plan are shown in the Payment Rate
Tables. The tables show rates for the Installment Income Plan for a Specified
Period (Option B) and Life Income Plans (Option C or E). Life Income Plan rates
are based on the adjusted age of any individual upon whose life payments depend.
The adjusted age is:
- the age on the birthday that is nearest to the date on which the
payment plan takes effect; plus
- the age adjustment shown below for the number of contract years that
have elapsed from the Contract Date to the date that the payment
plan takes effect. A part of a contract year is counted as a full
year.
--------------------------------------------------------------------------------
CONTRACT CONTRACT
YEARS AGE YEARS AGE
ELAPSED ADJUSTMENT ELAPSED ADJUSTMENT
--------------------------------------------------------------------------------
1 to 8 0 33 to 40 -4
9 to -1 41 to 48 -5
17 to 24 -2 49 or more -6
25 to 32 -3
--------------------------------------------------------------------------------
9.2 CURRENT FIXED PAYMENT PLAN RATES
- Installment Income For Specified Period (Option B). The Company may
offer fixed payment plan rates higher than those guaranteed in this
contract with conditions on withdrawal.
- Life Income Plans (Option C or E). Payments will be based on rates
declared by the Company which will not be less than the rates
guaranteed in this contract. The declared rates will provide at
least as much income as would the Company's rates, on the date that
the payment plan takes effect for a single premium immediate annuity
contract.
9.3 ALTERNATE VARIABLE RATE BASIS
The Company may from time to time publish higher initial rates for
variable payment plans under this contract. These higher rates cannot be used to
increase payments under payment plans that have already started.
When a variable payment plan is on an alternate rate basis, the Daily
Adjustment Factor defined in Section 8.2 will be determined based on the Assumed
Investment Rate used in calculating the alternate payment rate.
PAYMENT RATE TABLES
Monthly Income Payments Per $1,000 Contract Benefits
First Payment Under Variable Payment Plan
INSTALLMENT INCOME PLAN (OPTION B)
--------------------------------------------------------------------------------
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
--------------------------------------------------------------------------------
Years 1-4 11 $ 9.09 21 $ 5.56
Not Available 12 8.46 22 5.39
13 7.94 23 5.24
14 7.49 24 5.09
5 $ 18.12 15 7.10 25 4.96
6 15.35 16 6.76 26 4.84
7 13.38 17 6.47 27 4.73
8 11.90 18 6.20 28 4.63
9 10.75 19 5.97 29 4.53
10 9.83 20 5.75 30 4.45
--------------------------------------------------------------------------------
Guaranteed Fixed Payment Plans
INSTALLMENT INCOME PLAN (OPTION B)
--------------------------------------------------------------------------------
PERIOD MONTHLY PERIOD MONTHLY PERIOD MONTHLY
(YEARS) PAYMENT (YEARS) PAYMENT (YEARS) PAYMENT
--------------------------------------------------------------------------------
1 $84.09 11 $8.42 21 $4.85
2 42.46 12 7.80 22 4.67
3 28.59 13 7.26 23 4.51
4 21.65 14 6.81 24 4.36
5 17.49 15 6.42 25 4.22
6 14.72 16 6.07 26 4.10
7 12.74 17 5.77 27 3.98
8 11.25 18 5.50 28 3.87
9 10.10 19 5.26 29 3.77
10 9.18 20 5.04 30 3.68
--------------------------------------------------------------------------------
NPV.1C.(0594) 12
13
PAYMENT RATE TABLES
MONTHLY INCOME PAYMENTS PER $1,000 CONTRACT BENEFITS
LIFE INCOME PLANS (Options C and E)
-------------------------------------------------------------------
SINGLE LIFE MONTHLY PAYMENTS (Option C)
-------------------------------------------------------------------
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT
UNDER VARIABLE PAYMENT PLAN
-------------------------------------------------------------------
ADJUSTED CERTAIN PERIOD (YEARS)
AGE* ZERO 10 20
-------------------------------------------------------------------
55 $4.17 $4.14 $4.06
56 4.23 4.20 4.11
57 4.31 4.28 4.17
58 4.39 4.35 4.23
59 4.47 4.43 4.29
60 4.56 4.51 4.35
61 4.65 4.59 4.42
62 4.76 4.69 4.49
63 4.87 4.79 4.56
64 4.98 4.90 4.63
65 5.10 5.00 4.70
66 5.24 5.12 4.77
67 5.38 5.24 4.84
68 5.54 5.37 4.91
69 5.70 5.51 4.98
70 5.88 5.66 5.05
71 6.07 5.81 5.12
72 6.27 5.96 5.19
73 6.49 6.13 5.24
74 6.73 6.30 5.30
75 6.99 6.48 5.36
76 7.27 6.67 5.40
77 7.58 6.86 5.45
78 7.91 7.05 5.49
79 8.26 7.25 5.52
80 8.64 7.45 5.55
81 9.05 7.65 5.58
82 9.50 7.84 5.60
83 9.98 8.02 5.62
84 10.50 8.20 5.63
85 and over 11.08 8.38 5.64
-------------------------------------------------------------------
--------------------------------------------------------------------------------
JOINT AND SURVIVOR MONTHLY PAYMENTS (Option E)
--------------------------------------------------------------------------------
GUARANTEED FIXED PAYMENT OR FIRST PAYMENT UNDER VARIABLE PAYMENT PLAN
--------------------------------------------------------------------------------
OLDER LIFE YOUNGER LIFE ADJUSTED AGE*
ADJUSTED -------------------------------------------------------------------
AGE* 55 60 65 70 75 80 85 and over
--------------------------------------------------------------------------------
55 $3.79
60 3.87 $4.07
65 3.94 4.18 $4.45
70 3.99 4.27 4.61 $4.99
75 4.02 4.34 4.73 5.20 $5.72
80 4.05 4.38 4.81 5.35 6.00 $6.67
85 and over 4.06 4.40 4.86 5.45 6.18 7.00 $7.75
--------------------------------------------------------------------------------
*See Section 9.1.
The amount of the payment for an y other combination of ages will be furnished
by the Company on request. Monthly payment rates are based on the 1983 Table a
mortality table with projection scale G, and an annual interest rate of 3 1/2%.
NPV.1C 13
14
AMENDMENT TO SECTION 2 AND SECTION 6
FOR THE GROUP COMBINATION ANNUITY
AS OF THE CONTRACT DATE, THE THIRD, FOURTH AND FIFTH PARAGRAPHS OF SECTION
2.1 ARE AMENDED TO READ AS FOLLOWS:
The Separate Account is comprised of the Select Bond, International Equity,
Money Market, Balanced, Index 500 Stock, Aggressive Growth Stock, High Yield
Bond, Growth Stock, Growth and Income Stock, Index 000 Xxxxx, Xxxxx Xxx Xxxxxx
Xxxxx, Xxxxxxx Multi-Style Equity, Xxxxxxx Aggressive Equity, Xxxxxxx Non-US,
Xxxxxxx Real Estate Securities, and Xxxxxxx Core Bond Divisions. Assets
allocated to these Divisions are invested in shares of corresponding mutual
funds or portfolios of mutual funds, both of which are referred to in this
policy as Funds.
Shares of the Funds are purchased for the Separate Account at their net
asset value.
The Company may make available additional Divisions and Funds.
AS OF THE CONTRACT DATE SECTION 6.5 IS AMENDED TO READ AS FOLLOWS:
After the fifth contract year the Company may amend this contract from time
to time with respect to:
- the Installation Fee;
- the Sales Load;
- the Maximum Annual Annuity Rate and Expense Guarantee Charge;
- the Administration Fee;
- the Transfer Fee;
- the Minimum Purchase Payment;
- the GRF Accounts Maximum; and
- the Minimum Contract Value.
The amendment will take effect not less than 30 days after written notice
to the Owner.
Secretary
NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY
NPV.FUNDS.(0599)
15
AMENDMENT TO SEPARATE ACCOUNT DIVISIONS
AS OF APRIL 30, 1999, THE SECOND AND THIRD PARAGRAPHS OF THE SEPARATE
ACCOUNT SECTION OF THE CONTRACT RELATING TO THE DIVISIONS OF THE SEPARATE
ACCOUNT AND THE ASSETS ALLOCATED TO THESE DIVISIONS ARE AMENDED TO READ AS
FOLLOWS:
The Separate Account is comprised of the Select Bond, International Equity,
Money Market, Balanced, Index 500 Stock, Aggressive Growth Stock, High Yield
Bond, Growth Stock, Growth and Income Stock, Index 000 Xxxxx, Xxxxx Xxx Xxxxxx
Xxxxx, Xxxxxxx Multi-Style Equity, Xxxxxxx Aggressive Equity, Xxxxxxx Non-US,
Xxxxxxx Real Estate Securities, and Xxxxxxx Core Bond Divisions. Assets
allocated to these Divisions are invested in shares of corresponding mutual
funds or portfolios of mutual funds, both of which are referred to in this
policy as Portfolios. Shares of the Portfolios are purchased for the Separate
Account at their net asset value.
The Company may make available additional Divisions and Portfolios.
Secretary
NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY
VA.FUNDS.(0599)
C
