AXA EQUITABLE LIFE INSURANCE COMPANY
ENDORSEMENT APPLICABLE TO EDC CONTRACTS
In this Endorsement, "we", "our" and "us" mean AXA Equitable Life Insurance
Company ("AXA Equitable") and "you" and "your" mean the Owner.
When issued with this Endorsement, and as specified in the Data Pages, this
Contract is an annuity contract issued as a funding vehicle for a plan under
Section 457(b) of Code (an "EDC Contract"). The provisions of this Endorsement
supersede any inconsistent provisions of the Contract or any other Rider or
Endorsement.
PART I - DEFINITIONS
The following language is added at the end of the existing Section:
SECTION 1.02 ANNUITY ACCOUNT VALUE
If a loan is outstanding, Annuity Account Value means the sum of the amounts in
the Investment Options, plus any amount in the Loan Reserve Account.
The following language replaces the existing language in the Section:
SECTION 1.05 CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value less (i) any
charges that apply as described in Part VIII and shown on the Data Pages and
(ii) the amount of the entire unpaid balance of any loan, including interest due
but not paid.
The following language is added at the end of the existing Section:
SECTION 1.07 CONTRACT
This Contract is an "EDC Contract" intended to qualify as an annuity contract
that meets the requirements of Section 457(b) of the Code, and is intended to be
purchased in connection with an Employer's plan under Section 457(b) of the
Code.
The following language replaces the existing language in the Section:
SECTION 1.11 CONTRIBUTION
"Contribution" means a payment made to us for this Contract purchased under the
Plan for an Annuitant who is a participant under the Plan.
2008EDC-I
The following language replaces the existing language in the Section:
SECTION 1.12 EMPLOYER
"Employer" means one of the following types of entity which is eligible to
adopt, has adopted, and maintains a Plan: (i) a State, a political subdivision
of a State, or an agency or instrumentality of a State or political subdivision
of a State ("Governmental Employer") or (ii) any other organization (other than
a governmental unit) exempt from tax under the Code ("Tax Exempt Employer").
The following new Section is added:
SECTION 1.12A EMPLOYER'S DESIGNEE
"Employer's Designee" includes any person(s) authorized and designated by the
Employer to act on behalf of the Employer in the specified functions under the
Plan, as communicated to us in documentation acceptable to us.
The following new Section is added:
SECTION 1.12B GOVERNMENTAL EMPLOYER PLAN
"Governmental Employer Plan" means a Plan established and maintained by a
Governmental Employer and is described in Section 457(g) of the Code.
The following language replaces the existing language in the Section:
SECTION 1.14 INVESTMENT OPTION
"Investment Option" means the Guaranteed Interest Option, a Separate Account or
a Variable Investment Option of a Separate Account.
The following language replaces the last sentence of the existing language in
the Section:
SECTION 1.16 NON-NATURAL OWNER
There is no ownership change under a Contract to the Annuitant or any successor
Xxxxxxxxx unless permitted by applicable law and the terms of the Plan. In such
case the Annuitant determines the benefits under the EDC Contract.
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The following language replaces the existing language in the Section:
SECTION 1.17 OWNER
The Owner of this Contract is the person named in our records as designated in
the application or in the transfer of ownership form, if so transferred
subsequent to the issuance of this Contract. In the case of a Governmental
Employer Plan, the Owner may be the trustee of a trust holding assets of the
Plan. If the Owner of this Contract is the Plan Trust and by terms of the Trust
Agreement, the Employer has the rights, duties and/or responsibilities in this
Contract, "you" and "your" mean the Employer. In the case of a Governmental
Employer Plan, the Owner may alternatively be the Employer deemed as trustee of
the Plan pursuant to Section 401(f) of the Code. If the Owner of this Contract
is subsequently changed to the Annuitant, if and as permitted by applicable law
and the terms of the Plan, this Contract may not be transferred or assigned to
any other person in whole or in part. Subject to our approval, the Owner may
designate another person to exercise rights under the Contract.
The following new Section is added:
SECTION 1.17A OWNER'S DESIGNEE
"Owner's Designee" includes any person(s) authorized and designated by the Owner
to act on behalf of the Owner in the specified functions under the Plan, as
communicated to us in documentation acceptable to us.
The following language replaces the existing language in the Section:
SECTION 1.18 PLAN
"Plan" refers to an "Eligible Deferred Compensation Plan" meeting the
requirements of Section 457(b) of the Code which is established and maintained
by an Employer for the benefit of individuals performing services for the
Employer and their beneficiaries. There are two types of Plans: "Governmental
Employer Plans" and "Tax Exempt Employer Plans."
The following new Section is added:
SECTION 1.18A PLAN TRUST
"Plan Trust" means a trust, if any, adopted by the Employer for the Plan, to
hold this Contract for the exclusive benefit of Plan participants and their
beneficiaries in accordance with the provisions of the Plan.
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The following new Section is added:
SECTION 1.21A REQUIRED MINIMUM DISTRIBUTION PAYMENTS
"Required Minimum Distribution Payments " means the payments from or with
respect to this Contract that are required by Sections 457(b) and 401(a)(9) of
the Code and which are described in the Section, "Required Minimum Distribution
Rules."
The following language replaces the existing language in the Section:
SECTION 1.22 SEPARATE ACCOUNT
"Separate Account" means any of the Separate Accounts described or referred to
in Sections 2.02 and 2.05 and the Data Pages of this Contract.
The following new Section is added:
SECTION 1.22A TAX EXEMPT EMPLOYER PLAN.
"Tax Exempt Employer Plan" means a Plan established and maintained by a Tax
Exempt Employer which has adopted and maintains a Plan for a select group of
management or highly compensated employees within the meaning of the Employee
Retirement Income Security Act of 1974, as amended.
The following new Section is added:
SECTION 1.23A TRUST AGREEMENT
"Trust Agreement" means an agreement evidencing the Plan Trust, if applicable.
PART III - CONTRIBUTIONS AND ALLOCATIONS
The following language is added at the end of the existing Section:
General. We indicate in this Section and the Data Pages any limits on the type,
source or amount of Contributions we will accept.
No Contributions will be accepted unless they are in United States currency. We
reserve the right not to accept funds by electronic means unless they meet our
specifications. If we determine that an applicable tax charge described in the
Section, "Charge for Taxes," applies to Contributions, we reserve the right to
reduce Contributions by the amount of any such applicable tax charge before
Contributions are allocated among the Investment Options under the Contract.
The Employer makes Contributions from time to time pursuant to the terms of the
Plan. The Annuitant may allocate Contributions to, or transfer among the
Investment Options available under this Contract, unless otherwise indicated to
us by the Owner or its Designee.
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a) Provisions applicable to Contracts funding both Governmental and Tax Exempt
Employer Plans.
Two types of Contributions may be made to this Contract, if and as permitted by
the Plan. Contributions determined by reference to the Plan participant's
compensation and contributions of funds directly transferred from another Plan
of the same type or other funds invested under the Employer's Plan.
Contributions to the Contract determined by reference to compensation are
limited to the maximum amount that may be contributed for an Annuitant for any
taxable year under Section 457 of the Code.
If we determine that any Contributions would cause this Contract not to qualify
under Section 457 of the Code, we reserve the right to refuse to accept any such
Contributions.
b) Additional provisions applicable to Contracts funding Governmental Employer
Plans
The Employer, or the Plan Trust if the Plan Trust is the Owner and is so
authorized by the terms of the Trust Agreement, makes Contributions with respect
to compensation from time to time pursuant to the terms of the Plan.
SECTION 3.02 LIMITS ON CONTRIBUTIONS
General. We indicate in this Section and the Data Pages any limits on the type,
source or amount of Contributions we will accept.
The Employer makes Contributions to this Contract under the terms of the Plan.
You are to specify the amount to be allocated to each Investment Option.
No Contributions will be accepted unless they are in United States currency. We
reserve the right not to accept funds by electronic means unless they meet our
specifications. If we determine that an applicable tax charge described in the
Section, "Charge for Taxes," applies to Contributions, we reserve the right to
reduce Contributions by the amount of any such applicable tax charge before
Contributions are allocated among the Investment Options under the Contract.
Rollover Contributions may not be made to this Contract unless permitted by the
terms of the Plan, and the Employer, Employer's Designee, Owner or Owner's
Designee documents approval in a manner acceptable to us. A "rollover
contribution" is one permitted by any of the following Sections of the Code:
402(c), 402(e)(6), 403(a)(4), 457(b)(8), 457(b)(10), 408(d)(3) and 457(e)(16).
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PART V - WITHDRAWALS AND TERMINATION
The following language replaces the existing language in the Section:
SECTION 5.02 CONTRACT TERMINATION
Subject to any restrictions under the terms of the Plan, the Employer or Plan
Trust if the Plan Trust is the Owner and is so authorized by the terms of the
Trust Agreement, may elect by written notice to terminate this Contract. We will
pay the Cash Value or Annuity Account Value to the Employer or as applicable,
the Plan Trust if the Plan Trust is the Owner and is so authorized by the terms
of the Trust Agreement to receive the Cash Value or Annuity Account Value. Where
the Owner is the Annuitant, the advance written approval of the Employer or the
Plan Trustee may be required to make payment to the Annuitant or other payee. We
will determine the Cash Value of this Contract as of the Transaction Date.
If this Contract is terminated, surrendered or exchanged prior to the Maturity
Date, we reserve the right to deduct a charge for taxes, if one would apply, as
described in the Charge for Taxes section of this Contract.
We will pay either the Cash Value or Annuity Account Value, as applicable,
directly to the Employer or the Plan Trust if the Plan Trust is the Owner and is
so authorized by the terms of the Trust Agreement to receive the Cash Value or
Annuity Account Value, unless such Employer or Plan Trust, as applicable, gives
us written notice at the time of termination that it requests us to make payment
to the Annuitant or other person, and that such payment is permissible under the
Plan.
If permitted by the Plan, the recipient plan and the Code, you or your Designee
may request us to directly transfer amounts from this Contract to another 457(b)
funding vehicle of the same type. In the case of both types of Plans, this
request may be made for Contract exchange under the same Plan, or a plan-to-plan
direct transfer. In the case of a Governmental Employer Plan only, a request may
also be made for a direct transfer to purchase permissive service credits. We
will not process transfers until we receive the documentation we require.
Withdrawal Charges or transaction charges described in the Section, "Charges for
Partial Withdrawals" will be imposed on transfers. Transfers of Cash Value while
there is an outstanding loan are limited as described in the Section, "Loans."
The following new Section is added:
SECTION 5.03 RESTRICTIONS ON WITHDRAWALS, DISTRIBUTIONS AND OTHER PAYMENTS
No amount may be withdrawn, distributed or paid from this 457(b) Contract unless
and until permitted under the Plan and the Code. We will not process withdrawals
or other transactions unless we receive contemporaneous documentation acceptable
to us that such transaction is permitted under the Plan.
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a) Tax Exempt Employer Plans. Except as otherwise permitted under Section 457
of the Code and in accordance with the terms of the Plan, amounts will not
be made available to Plan participants or their beneficiaries earlier than
(i) the calendar year in which the Plan participant attains age 70 1/2,
(ii) when the Plan participant has a severance from employment with the
Employer, (iii) if permitted by the Plan, when the Plan participant is
faced with an unforeseeable emergency (within the meaning of applicable
federal income tax Regulations), (iv) when permissible distributions must
be made pursuant to a qualified domestic relations order or (v) in the case
of Plan termination.
b) Governmental Employer Plans: Except as otherwise permitted under Section
457 of the Code and in accordance with the terms of the Plan, amounts will
not be paid to Plan participants or their beneficiaries earlier than (i)
the calendar year in which the Plan participant attains age 70 1/2, (ii)
when the Plan participant has a severance from employment with the
Employer, (iii) when the Plan participant is faced with an unforeseeable
emergency (within the meaning of applicable federal income tax
Regulations), (iv) when permissible distributions must be made pursuant to
a qualified domestic relations order or (v) in the case of Plan
termination.
The following new Section is added:
SECTION 5.04 DIRECT ROLLOVER OPTION - GOVERNMENTAL EMPLOYER PLANS ONLY
The Annuitant may elect to have all or any portion of the Cash Value paid
directly to another "eligible retirement plan" in a "direct rollover
transaction" as these terms are defined in Sections 457(b), 402(c) and
401(a)(31) of the Code. A surviving spouse beneficiary described in the
"Beneficiary" Section of this Contract may also elect a direct rollover of the
Death Benefit described in the "Payment Upon Death" Section of this Contract.
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 the benefit of the Annuitant (or for the benefit of the
Annuitant's surviving spouse).
(b) The distribution must not include any after-tax contributions under this
Contract except as otherwise permitted under the Code.
(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. (See the
Section "Required Minimum Distribution Rules", below). We reserve the
right to determine the amount of the Required Minimum Distribution. If
the Annuitant elected a payment option under Part VII of this Contract,
"Annuity Benefits and Required Minimum Distributions", which is either a
life contingent annuity or pays substantially equal periodic payments
for a period of ten years or more, the direct rollover option does not
apply to those funds.
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(d) The direct rollover option is not available for distribution due to an
unforeseeable emergency, except as otherwise permitted under the Code.
Unless prohibited by the Plan, non-spousal death beneficiaries may directly roll
over death benefits to a new inherited individual retirement arrangement as
provided in the Code.
If the Plan permits contract terminations due to a small account balances, if
the balance is more than $1,000 and the Annuitant does elect to either (i)
receive the distribution him/her self or (ii) specify an eligible retirement
plan to receive the distribution in a direct rollover, then we will directly
roll over the distribution to an individual retirement plan designated by the
Employer or the Employer's Designee.
The following new Section is added:
SECTION 5.05 LOANS - GOVERNMENTAL EMPLOYER PLANS ONLY
General:
Unless otherwise restricted by the Plan or the Code, and subject to your
approval, the Annuitant may effect a loan under this Contract before the
election and commencement of Annuity Benefits. The loan is subject to the terms
of the Plan and the Code. Future restrictions in the Code may require changes in
the terms and availability of the loans. The Annuity Account Value (including
the "Loan Reserve Account" as described below) will be the sole security for the
loan.
A loan is effective on the date we specify, according to our then current
procedures, after we approve the Loan Request Form. The Loan Request Form,
together with the loan confirmation notice, will be the loan agreement and will
contain all the terms of the loan which apply, including the amount of the loan,
interest rate and the repayment due dates.
Only one outstanding loan is permitted at a time under this Contract. We reserve
the right not to permit a new loan if a previous loan was defaulted, until the
entire outstanding amount due on such defaulted loan is fully repaid.
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 $3,000.
The maximum amount of a loan will be determined as follows. The amount of the
loan may not be more than (i) 80% of the Annuity Account Value of this Contract,
if such total Annuity Account Value is greater than or equal to $3,750 and less
than $12,500, (ii) $10,000, if the Annuity Account Value is greater than or
equal to $12,500 and less than $20,000, and (iii) 50% of the Annuity Account
Value if the Annuity Account Value is greater than or equal to $20,000. For this
purpose, the Annuity Account Value is taken as of the Loan Effective Date. The
loan amount requested cannot exceed the maximum loan amount permitted under the
Plan and Section 72(p) of the Code. The maximum loan amount is limited to the
maximum amount aggregated for all plan loans which are outstanding for the
Annuitant under all qualified plans of
2008EDC-I Page 8
the Employer and other 457(b) plan funding vehicles under the Plan, as required
by Section 72(p) of the Code.
The maximum loan amount permitted under the Code may not be more than the lesser
of (A) or (B) below:
(A) $50,000, less the highest outstanding balance of loans under any other
457(b) plan funding vehicles or any other qualified plan that the Annuitant
has with the Employer during the one-year period ending on the day before
the Loan Effective Date, over the outstanding balance of loans under any
457(b) plan funding vehicles or other qualified plan of the Employer on the
Loan Effective Date.
(B) The greater of (i) one half the present value of the Annuitant's
nonforfeitable accrued benefit under all of the 457(b) plan funding vehicles
or other qualified plans of the Employer or (ii) $10,000.
Loan Term:
The loan term will be for a maximum of five years. If the Annuitant states on
the Loan Request Form that the purpose of the loan is to purchase the
Annuitant's principal residence, the loan term will be for a maximum of ten
years. Repayment of the loan may be accelerated and full repayment of any unpaid
principal and interest will be required upon the earliest of (i) the election
and commencement of Annuity Benefits, (ii) the date the Contract terminates,
(iii) the date a death benefit becomes payable, or (iv) any date we determine
that the Code requires acceleration of the loan repayment so that the Federal
income tax status of the Contract is not adversely affected.
Loan Reserve Account:
On the Loan Effective Date, we will transfer to a "Loan Reserve Account" an
amount equal to the sum of (1) the loan amount, which will earn interest at the
"Loan Reserve Account Rate" during the loan term but in no event less than the
minimum Guaranteed Interest Rate, as defined in the Contract; and (2) 10% of the
loan amount, which will earn interest at the Guaranteed Interest Rate.
The "Loan Reserve Account Rate" will equal the loan interest rate (see the
Subsection below) 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.
Unless the Employer or the Employer's Designee specifies otherwise, the
Annuitant may specify on the Loan Request Form from which Investment Option(s)
the Loan Reserve Account will be funded. In the absence of direction, or if the
directions cover only part of the amount required to be transferred to the Loan
Reserve Account, we will transfer the required (or additional required) amounts
from each Investment Option in proportion to the amount in such Investment
Options. On the first day of the third month following the effective date of the
loan and quarterly
2008EDC-I Page 9
thereafter (or first business day thereafter, if such day is not a business
day), the amount of interest earned at the Loan Reserve Account Rate annually
during the prior quarter will be transferred to the portion of the Loan Reserve
account that earns interest at the Guaranteed Interest Rate.
Until after repayment of your loan then due, including interest due but not
paid, (i) no withdrawals may be made from any part of the Cash Value, (ii) no
transfers of amounts among Investment Options may be made, (iii) no transfers
may be made from this Contract to another 457(b) plan or 457(b) plan funding
vehicle, (iv) nor may amounts be rolled over to another eligible retirement
plan.
Loan Interest Rate:
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.
If requested by the Employer or the Employer's Designee, we will substitute the
rate requested by the Employer or the Employer's Designee, subject to any
limitations imposed by law. The rate so determined by us will be a reasonable
rate 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. Such rate will not be greater than any maximum
rate required under any current applicable state or federal law.
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 loan may be repaid in full at any time, including interest due. We will
apply payments first to interest due, with the balance applied towards repayment
of the loan principal. After any repayment is made, including full repayment of
the loan, the principal amount repaid will be transferred from the Loan Reserve
Account to the Guaranteed Interest Investment Option and may be withdrawn (if
otherwise permitted), transferred to another Investment Option, or applied to an
annuity as described in Part VII, "Annuity Benefits and Required Minimum
Distributions".
Default:
By each repayment due date (or a specified date thereafter in accordance with
our then current procedures) if the amount of the loan repayment is less than
the amount due or the loan repayment is not received at our Processing Office,
we will treat the loan as being in default. We will treat the entire unpaid
balance of the loan at that time, including interest due but not paid, as a
deemed distribution for Federal income tax purposes.
We reserve the right, however, to change our procedures at any time. We also
reserve the right to deduct any Withdrawal Charges that may apply and any
required tax withholding.
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If the amount in the Loan Reserve Account is not subject to the restrictions
described in the Section "Restrictions on Withdrawals, Distributions and Other
Payments," on default we reserve the right to deduct from the Loan Reserve
Account an amount equal to the interest and principal payments due, plus 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 the Section "Restrictions on Withdrawals, Distributions and Other
Payments", on 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 the Contract is no longer subject to the withdrawal
restrictions of the Section "Restrictions on Withdrawals, Distributions and
Other 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 the Annuitant reaches age 70 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 a severance from employment with the Employer or death.)
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 laws that apply to this Contract.
PART VI - PAYMENT UPON DEATH
The following language replaces the existing language in the Section:
SECTION 6.01 BENEFICIARY
The Owner or the Owner's Designee gives us the name of the Beneficiary who is to
receive the Death Benefit on the Annuitant's death. Except in the case of a Tax
Exempt Employer Plan Contract, the Beneficiary may be changed while the
Annuitant is alive. Any such change must be made in writing in a form we accept.
A change will take effect as of the date the written change is executed, whether
or not the Annuitant is living on the date of receipt at our Processing Office.
However, we will not be liable as to any payments we make or actions we take
before we receive any such change at our Processing Office.
One or more persons may be named to be primary Beneficiary and one or more other
persons may be named to be successor Beneficiary if the primary Beneficiary dies
before the Annuitant. Unless we are directed otherwise, if two or more persons
are named as Beneficiary, the Beneficiary will be the named person or persons
who survive the Annuitant and payments will be made to such persons in equal
shares or to the survivor.
Unless specifically elected in writing otherwise, we will treat each
Beneficiary's share of the Death Benefit payable as a separate account for the
benefit of each Beneficiary as described in Treasury Regulation Section
1.401(a)(9)-8 Q&A A-2(a)(2) or any successor Regulation.
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Any part of a Death Benefit for which there is no named Beneficiary living at
the Annuitant's death will be payable in a single sum to the Annuitant's
surviving spouse, if any; if there is no surviving spouse, then to the surviving
children in equal shares; if there are no surviving children, then to the
Annuitant's estate.
If the Plan under which this Contract is purchased is maintained by a Tax Exempt
Employer, the Employer is the Owner of and Beneficiary under this Contract. Upon
the Annuitant's death such Beneficiary may, by written request to our Processing
Office, at any time up to and including provision of due proof of such death,
change the Beneficiary designation for the Death Benefit to the "Substituted
Beneficiary". "Substituted Beneficiary" is the Beneficiary designated under the
Plan by the Annuitant to receive Death Benefits payable under the Plan.
The following language replaces the existing language in the Section:
SECTION 6.02 PAYMENT UPON DEATH
Upon receipt of due proof of the Annuitant's death before the Maturity Date, we
will pay a Death Benefit to the Beneficiary named under Section 6.01 including
any Substituted Beneficiary under a Tax Exempt Employer Plan. Payment is subject
to the terms of Section 6.01 and any special rules which may apply as described
in the Data Pages and any Endorsement or Rider attached hereto.
For the portion of the Death Benefit payable to a Beneficiary, the date on which
we received the Beneficiary requirements is the "Payment Transaction Date".
Payment of a Death Benefit will be made upon our receipt of the following
"Beneficiary Requirements":
(i) a properly completed written request;
(ii) due proof of death (as evidenced by a certified copy of the death
certificate);
(iii) proof satisfactory to us that the person claiming the Death Benefit is the
person entitled to receive it;
(iv) tax information required by the Code; and
(v) any other forms we require.
Upon receipt of notification of the Annuitant's death, if we have not received
the Beneficiary Requirements described above, the Contract will continue to
remain invested in the Investment Options and no transactions will be permitted.
Unless otherwise specified in an optional Rider or the Data Pages attached
hereto, the amount of the Death Benefit is equal to the Annuity Account Value
(less any unpaid loan balance, including interest due but not paid) as of the
date we receive satisfactory proof of the Annuitant's death or if greater the
Guaranteed Minimum Death Benefit.
On the Contract Date, the Guaranteed Minimum Death Benefit is equal to the
initial Contribution. Thereafter, the Guaranteed Minimum Death Benefit is
adjusted for any subsequent Contributions, and withdrawals. The Guaranteed
Minimum Death Benefit is increased by
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Contributions and reduced by withdrawals. The reduction of the Guaranteed
Minimum Death Benefit following a withdrawal is on a pro-rata basis. A pro-rata
reduction is determined as follows:
(1) Divide the amount of the withdrawal by the Annuity Account Value
immediately preceding the withdrawal;
(2) Multiply the fraction calculated in (1) by the amount of the Guaranteed
Minimum Death Benefit immediately preceding the withdrawal. This is the
amount of the pro rata reduction. We will make this reduction as of the
Transaction Date of each withdrawal.
Payment upon death is subject to the "Required Minimum Distribution Rules" of
Sections 457(b) and 401(a)(9) of the Code, described in the Section "Required
Minimum Distribution Rules".
The following language replaces the existing language in the Section:
SECTION 6.03 MANNER OF PAYMENT
The Death Benefit will be paid to the Beneficiary including any Substituted
Beneficiary under a Tax Exempt Employer Plan in a single sum unless you elect a
different form of Death Benefit payout that we offer at the time the Death
Benefit is payable (such as a life annuity or installment payout). The
Beneficiary will have no right to change the election; however, (i) we will
apply a predetermined Death Benefit annuity payout election only if payment of
the Death Benefit begins within one year following the date of death; (ii) we
will not apply a predetermined Death Benefit payout election if doing so would
violate any Federal income tax rules or guidelines or any other applicable law;
and (iii) a Beneficiary who becomes a successor owner or who continues the
Contract under a Beneficiary Continuation Option, if available, will have the
right to change the election.
The Death Benefit described in this Section will not be paid at the Annuitant's
death before the Maturity Date if the coverage under this Contract is continued
under the "Beneficiary Continuation Option" described below.
The following new Section is added:
SECTION 6.04 BENEFICIARY CONTINUATION OPTION - GOVERNMENTAL EMPLOYER PLANS ONLY
Except as otherwise provided herein, this Section will apply only if the
Annuitant dies before the Maturity Date and before Annuity Benefits have
commenced, and a Death Benefit is payable. The Beneficiary named in this
Contract must be an individual.
With the exception of the following paragraph, this Section does not apply to
any Beneficiary which is not an individual, and that non-individual
Beneficiary's portion of the Death Benefit described in the Section "Payment
Upon Death" is payable to the Beneficiary.
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This Section applies to a non-individual Beneficiary only if it is a
"see-through trust". A see-through trust is an irrevocable trust, valid under
state law, the only beneficiaries of which are individuals, and which trust has
met applicable documentation requirements under applicable Regulations as we may
determine.
A trust with only individual beneficiaries may continue this Contract after the
Annuitant's death if:
1. the trust is the only Beneficiary under this Contract;
2. all 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.
If such a "see-through trust" described in Treasury Regulation Section
1.401(a)(9)-4 Q&A A-5, or any successor Regulation, is the Beneficiary named
pursuant to the "Beneficiary" Section of this Contract, and the "see-through
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 the Section,
"Required Minimum Distribution Rules-Payments After Your Death".
If this Section applies and there is more than one Beneficiary, the Annuity
Account Value (and any other interest under the Contract described in the
Section, "Required Minimum Distribution Rules") will be apportioned among the
Beneficiaries designated pursuant to the "Beneficiary" Section of the Contract.
If the Beneficiary qualifies to continue this Contract, and we receive that
Beneficiary's completed election no later than September 30 of the calendar year
following the calendar year of the Annuitant's death and before any contrary
election is made, that Beneficiary may continue the Annuitant's Contract
pursuant to this Section under the terms set forth in (a) through (h) below.
Each such Beneficiary electing to continue his or her portion of the interest
under the Contract is a "Continuation Beneficiary". For any Beneficiary who does
not timely elect to continue his or her portion of the interest under the
Contract, we will pay in a single sum that Beneficiary's share of the Death
Benefit pursuant to the Section "Payment Upon Death".
The terms of the Beneficiary Continuation Option are as follows:
a. the Contract cannot be assigned and must continue to be held for the
benefit of the Continuation Beneficiary after the Annuitant's death.
b. as of the date we receive satisfactory proof of the Annuitant's death
and all written documentation necessary to make a claim under the
Contract, we will compare the Annuity Account Value and the guaranteed
minimum death benefit as of this date (the reset date, if applicable).
If the Annuity Account Value is less than the guaranteed minimum death
benefit, we will reset the Annuity Account Value to equal such death
2008EDC-I Page 14
benefit. The guaranteed minimum death benefit is the sum of all
Contributions less the amount of any outstanding loan and adjusted for
any withdrawals.
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 the Beneficiary Continuation
Option is elected.
c. the Continuation Beneficiary will automatically become the Annuitant
with respect to that Continuation Beneficiary's portion of the Annuity
Account Value and any other interest under the Contract.
d. the Continuation Beneficiary may transfer amounts among the Investment
Options with respect to the Continuation Beneficiary's share of the
interest in the Contract.
e. the Continuation Beneficiary cannot make any additional Contributions to
the Contract.
f. distributions to the Continuation Beneficiary will be made in accordance
with "Required Minimum Distribution Rules-Payments After Death"
described in Section 7.08. 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 a Continuation Beneficiary's death, we will make a lump sum payment
to the person designated by the deceased Continuation Beneficiary to
receive that deceased Continuation Beneficiary's portion of the Annuity
Account Value, if any remains. In the alternative, the deceased
Continuation Beneficiary's designated beneficiary may elect to continue
the payment method originally elected by the deceased Continuation
Beneficiary in accordance with paragraph (b)(1) or (b)(2) of the
Section, "Required Minimum Distribution Rules-Payments After Death".
PART VII - ANNUITY BENEFITS
The title of this Part is changed to "Annuity Benefits and Required Minimum
Distributions".
Annuity Benefits are also subject to the restrictions described above in the
Section, "Restrictions on Withdrawals, Distributions and Other Payments".
References to "you" in this Part refer to the Owner. If the Owner and Employer
report to us that the Annuitant has election rights under this Part "you" refers
to the Annuitant.
2008EDC-I Page 15
The following new Section is added:
SECTION 7.08 REQUIRED MINIMUM DISTRIBUTION RULES
This Contract is subject to the "Required Minimum Distribution" rules of
Sections 457(b) and 401(a)(9) of the Code, including the Treasury Regulations
which apply. To the extent that any payment, benefit, or distribution options
available to you under this Contract conflict with the Code, the Code
requirements prevail.
Subsection A below describes the Required Minimum Distribution payments to be
made during the Annuitant's lifetime. Subsection B below describes the Required
Minimum Distribution payments to be made after the Annuitant's death, if the
Annuitant dies before the entire interest in this Contract is distributed.
The Required Minimum Distribution rules may be satisfied by either electing an
Annuity Benefit or by taking withdrawals at least annually from this Contract,
all as subject to these rules.
A. REQUIRED MINIMUM DISTRIBUTION RULES - PAYMENTS DURING LIFE
Except as otherwise noted in this Subsection A, the Annuitant's entire interest
in this Contract will be distributed, or begin to be distributed, no later than
the Annuitant's Required Beginning Date. For purposes of this Subsection A the
Annuitant's Required Beginning Date is April 1 of the calendar year following
the later of these two choices: (a) the calendar year the Annuitant reaches age
70 1/2 or (b) the calendar year the Annuitant retires from employment with the
Employer.
The Required Minimum Distribution payment may be computed under any of the
methods permitted under Section 401(a)(9) of the Code, including payments over
the Annuitant's life, or the lives of the Annuitant and the Annuitant's named
beneficiary, or a period certain not extending beyond the Annuitant's life
expectancy, or the joint and last survivor expectancy of the Annuitant and the
Annuitant's named beneficiary. Payments must be made as required by the Required
Minimum Distribution rules, including "incidental death benefit" rules described
in the Treasury Regulations.
Manner of Payment
The Required Minimum Distribution rules may be satisfied by applying any portion
of the entire interest under this Contract to an Annuity Benefit which satisfies
Treasury Regulation Section 1.401(a)(9)-6, or any successor Regulation. The
distribution periods described in the preceding paragraph cannot exceed the
periods specified in Section 1.401(a)(9)-6 of the Treasury Regulations or any
successor Regulation. If such an Annuity Benefit is elected after the Required
Beginning Date, the first payment interval must begin on or before the date
amounts are applied to the Annuity Benefit and the payment required for one
payment interval must be made no later than the end of such payment interval.
2008EDC-I Page 16
These "lifetime" Required Minimum Distribution payments must be made in periodic
payments at intervals of no longer than 1 year and must be either non-increasing
or they may increase only as provided in Q&A A-14 of Treasury Regulation Section
1.401(a)(9)-6 or any successor Regulation. In addition, any distribution must
satisfy the incidental benefit requirements specified in Q&A A-2 of Treasury
Regulation Section 1.401(a)(9)-6 or any successor Regulation.
To the extent that distributions have not begun in the form of an annuity on an
irrevocable basis (except for acceleration) lifetime distributions of the entire
interest in this Contract must be made as follows:
The lifetime Required Minimum Distribution amount to be distributed for each
calendar year for which a distribution is required is the lesser of:
(a) the quotient obtained by dividing the entire interest in this Contract
(determined in accordance with Treasury Regulations) by the distribution
period in the Uniform Lifetime Table set forth in Treasury Regulation
Section 1.401(a)(9)-9 or any successor Regulation, using the Annuitant's
attained age as of the Annuitant's birthday in the calendar year for
which the distribution is required; or
(b) if the Annuitant's sole designated beneficiary for the calendar year for
which the distribution is required is the Annuitant's spouse, the
quotient obtained by dividing the entire interest in this Contract
(determined in accordance with Treasury Regulations) by the number in
the Joint and Last Survivor Table set forth in Treasury Regulation
Section 1.401(a)(9)-9 or any successor Regulation, using the respective
attained ages of the Annuitant and the Annuitant's spouse respective
birthdays in the calendar year for which a distribution is required.
For purposes of these Required Minimum Distribution rules, prior to commencement
of annuity payments under this Contract on an irrevocable basis, the entire
interest under this Contract as of any valuation date includes the dollar amount
credited under this Contract plus the actuarial value of any other benefits
(such as minimum survivor benefits) that will be provided under this Contract.
B. REQUIRED MINIMUM DISTRIBUTION RULES - PAYMENTS AFTER DEATH
(a) Death On or After Lifetime Required Minimum Distribution Payments Begin.
If the Annuitant dies on or after lifetime Required Minimum Distribution
payments begin, the remaining portion of the Annuitant's interest will
continue to be distributed at least as rapidly as under the Annuity
Benefit or other option chosen under this Contract.
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(b) Death Before Lifetime Required Minimum Distribution Payments Begin
If the Annuitant dies before lifetime Required Minimum Distribution
payments begin, the entire interest will be distributed at least as
rapidly as follows:
(1) If the Beneficiary is an individual other than the Annuitant's
surviving spouse as described in the immediately following
paragraph, the entire interest will be distributed, starting by the
end of the calendar year following the calendar year of the
Annuitant's death, over the remaining life expectancy of the
designated beneficiary, with such life expectancy determined using
the age of the Beneficiary as of his or her birthday in the year
following the year of the Xxxxxxxxx's death. In the alternative, the
Beneficiary may elect to take distribution of the entire interest in
accordance with this Subsection B, paragraph (b)(3) below.
(2) If the sole Beneficiary is the surviving spouse, the entire interest
will be distributed, starting by the end of the calendar year
following the calendar year of the Annuitant's death (or by the end
of the calendar year in which the Annuitant would have attained age
70 1/2, if later), over such surviving spouse's life. In the
alternative, the Annuitant's surviving spouse may elect to take
distribution of the entire interest in accordance with this
Subsection B, paragraph (b)(3) below.
If the surviving spouse dies before these required distributions
commence to him or her, the remaining interest will be distributed,
starting by the end of the calendar year following the calendar year
of the surviving spouse's death, over the spouse's designated
Beneficiary's remaining life expectancy determined using such
Beneficiary's age as of his or her birthday in the year following
the death of the spouse. In the alternative, that Beneficiary may
elect to take distribution of the entire interest in accordance with
this Subsection B, paragraph (b)(3) below. If the surviving spouse
dies after these required distributions commence to him or her, any
remaining interest will continue to be distributed under the Annuity
Benefit or other option chosen under this Contract.
(3) If there is no individual designated as Beneficiary, or if the
applicable Beneficiary chooses this alternative, the entire interest
will be distributed by the end of the calendar year containing the
fifth anniversary of the Annuitant's death (or of the surviving
spouse's death in the case of the surviving spouse's death before
distributions are required to begin under this Subsection B,
paragraph (b)(2) above).
(4) Life expectancy is determined using Single Life Table in Q&A-1 of
Treasury Regulation Section 1.401(a)(9)-9 or any successor
Regulation. If distributions are being made to a surviving spouse as
the sole designated beneficiary, such spouse's remaining life
expectancy for a year is the number in the Single Life Table
corresponding to such spouse's age in the year. For calendar years
for which a distribution is required after the year of the surviving
spouse's death, the remaining life expectancy of the surviving
spouse is calculated using the age of the surviving spouse as of the
spouse's birthday in the calendar year of the spouse's death,
2008EDC-I Page 18
reduced by one for each subsequent calendar year. In all other
cases, remaining life expectancy for a year is the number in the
Single Life Table corresponding to the beneficiary's age in the year
specified in paragraph (b)(1) or (b)(2) of this Subsection B and
reduced by 1 for each subsequent year.
(c) For purposes of paragraphs (a) and (b) of this Subsection B above,
Required Minimum Distributions are considered to commence on your
Required Beginning Date defined above in Subsection A or, if applicable,
on the date distributions are required to begin to the surviving spouse
under paragraph (b)(2) above. However, if distributions start prior to
the applicable date in the preceding sentence, on an irrevocable basis
(except for acceleration) under an annuity contract meeting the
requirements of Treasury Regulation Section 1.401(a)(9)-6 or any
successor Regulation, then required distributions are considered to
commence on the annuity starting date.
To the extent that distributions have not begun in the form of an annuity on an
irrevocable basis (except for acceleration) distributions of the entire interest
in this Contract after the Annuitant's death must be made in accordance with the
following sentences. The Required Minimum Distribution for each calendar year
for which a distribution is required after the year of the Annuitant's death is
the quotient obtained by dividing the Annuitant's entire interest in this
Contract (determined under Treasury Regulations) by the remaining life
expectancy of the applicable beneficiary, determined as provided above. The
rules applicable to the determination of the Annuitant's entire interest under
this Contract in Subsection A also apply. That is, for purposes of these
Required Minimum Distribution rules, prior to commencement of annuity payments
under this Contract on an irrevocable basis, the Annuitant's entire interest
under this Contract as of any valuation date includes the dollar amount credited
under this Contract plus the actuarial value of any other benefits (such as
minimum survivor benefits) that will be provided under this Contract.
PART VIII - CHARGES
The following new Section is added:
SECTION 8.08 PLAN OPERATING EXPENSE
If we are instructed by your Employer or your Employer's Designee to withdraw a
Plan Operating Expense from your Annuity Account Value, we will withdraw the
specified amount on the last Business Day of each calendar quarter, or at any
other time to which we agree, and remit the proceeds in accordance with
instructions from your Employer or your Employer's Designee. Such instructions
may be given by you in the absence of instructions from your Employer or your
Employer's Designee, in which event we will remit the proceeds to the Plan's
duly authorized administrator. We shall have no responsibility for determining
that this fee is necessary and proper under the terms of the Plan. Withdrawals
in accordance with this paragraph are not considered withdrawals for purposes of
the Sections of the Contract, "Withdrawals," "Restrictions on Withdrawals,
Distributions and Other Payments" or "Withdrawal Charges".
2008EDC-I Page 19
The following new Section is added:
SECTION 8.09 THIRD PARTY TRANSFER CHARGES
We have the right to deduct a charge for each occurrence for a direct transfer
to another annuity contract or custodian account that meets the requirements of
section 457(b) of the Code. This charge, if any, will be specified in the Data
Pages.
PART IX - GENERAL PROVISIONS
The following language replaces the existing language in the Section:
SECTION 9.02 STATUTORY COMPLIANCE
We have the right to change this Contract without the consent of any other
person in order to comply with any laws and regulations that apply. Such right
includes, but is not limited to, the right to conform the terms of this Contract
to reflect requirements of the Code, Treasury Regulations, published rulings of
the Internal Revenue Service, the Employee Retirement Income Security Act of
1974 and regulations thereunder, and federal securities laws, so that this
Contract will continue to be a funding vehicle for a 457(b) Plan.
The benefits and values available under this Contract will not be less than the
minimum benefits required by any state law that applies.
The name of the Section is changed from "Assignments and Transferability," and
the following language replaces the existing language in the Section:
SECTION 9.05 NONTRANSFERABILITY, ASSIGNMENTS, NONFORFEITABILITY
You may not transfer this Contract. This Contract is intended to be
nontransferable within the meaning of Section 401(g) of the Code.
No portion of your interest in this Contract or your rights under this Contract
may be sold, assigned, pledged or transferred to any person other than the
issuer of this Contract, or discounted, encumbered or pledged as collateral for
a loan or be security for the performance of an obligation.
No amount payable 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.
Your entire interest under the Contract is nonforfeitable.
2008EDC-I Page 20
The following language is added at the end of the existing Section:
SECTION 9.06 PAYMENTS
If the Plan permits and the Employer, Employer's Designee, the Owner, or the
Owner's Designee, as applicable, provide us written instructions to do so in
advance of payment, we will make payment of the Annuity Benefits or other
amounts directly to the Annuitant, Substituted Beneficiary or other payee
designated by you.
The following new Section is added:
SECTION 9.08 NOTIFICATION OF DISQUALIFICATION OF THE PLAN OR CONTRACT
If we are informed in documentation acceptable to us that the Plan fails to
qualify or no longer qualifies as a 457(b) plan, or that this Contract fails to
qualify or no longer qualifies in whole or in part as a 457(b) plan funding
vehicle, we will have the right to` terminate this Contract. We may do so, upon
receipt of notice of such fact, before the Maturity Date. In that case, we will
pay the Annuity Account Value less a deduction for the part which applies to any
applicable taxes payable by you which would not have been payable with respect
to an annuity contract which meets the terms of Section 457(b) of the Code.
However, we may also, at your request, transfer or roll over the Annuity Account
Value to another annuity contract issued by an affiliate, subsidiary or us.
The following new Section is added:
SECTION 9.09 OWNERSHIP RIGHT OF EMPLOYER
Tax Exempt Employer Plans: In accordance with Sections 457(b)(6) and 457 (g) of
the Code, until amounts under this Contract are distributed or made available to
the Annuitant or the Annuitant's Beneficiary in accordance with the terms of the
Contract and the terms of the Plan, this Contract remains solely the property of
the Employer (subject only to claims of the Employer's general creditors).
Governmental Employer Plans: If the Plan under which this Contract is purchased
is maintained by Government Employer, the following two sentences apply:
1. The Owner of this Contract (the Plan Trust or the Employer) holds it in
trust for the exclusive benefit of the Plan participants and the
participants' Beneficiaries under the Plan, and it is not subject to the
claims of the Employer's general creditors.
2. It is impossible, prior to the satisfaction of all liabilities with respect
to the Plan participants and the participants' Beneficiaries under the Plan,
for any part of the assets and income of this Contract to be used for, or
diverted to, purposes other than for the exclusive benefit of the Plan
participant and the participant's beneficiaries under the Plan.
2008EDC-I Page 21
AXA EQUITABLE LIFE INSURANCE COMPANY, a stock company
0000 Xxx xx Xxxxxxxx, Xxx Xxxx, N.Y. 10104
/s/ Xxxxxxxxxxx X. Xxxxxxx /s/ Xxxxx Xxxxx Xxxxx
------------------------------------- ----------------------------------
Xxxxxxxxxxx X. Xxxxxxx Xxxxx Xxxxx Xxxxx, Vice President
President and Chief Executive Officer Secretary and Associate General
Counsel
2008EDC-I Page 22
