GROUP INDIVIDUAL RETIREMENT ANNUITY
AXA EQUITABLE LIFE INSURANCE COMPANY
AGREES
* To allocate the contributions made on the Participant's behalf under the
Contract to the Account or Accounts maintained for the Participant;
* To apply the amounts the Participant has in his or her Accounts to provide
an annuity, periodic distribution or cash value benefit at the
Participant's Retirement Date; and
* To provide the Participant with the other rights and benefits of this
certificate.
* Those Agreements are subject to the provisions of this certificate.
TEN DAYS TO REVIEW - THE PARTICIPANT MAY END PARTICIPATION UNDER THE CONTRACT
AND CANCEL THIS CERTIFICATE BY MAILING IT TO AXA EQUITABLE (AT THE ADDRESS SHOWN
ON PAGE 3) WITHIN TEN DAYS AFTER RECEIPT. IF THE PARTICIPANT DOES THIS, XXX
XXXXXXXXX WILL REFUND ANY CONTRIBUTION MADE UNDER THE CONTRACT ON THE
PARTICIPANT'S BEHALF, OR, IF GREATER, WITH RESPECT TO CONTRIBUTIONS TO THE
INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT, THE PARTICIPANT'S ACCOUNT BALANCES
IN THOSE INVESTMENT DIVISIONS ON THE DATE THE CANCELLED CERTIFICATE IS RECEIVED
BY AXA EQUITABLE.
ASSETS IN CONNECTION WITH THE CONTRACT MAY BE HELD IN ONE OR MORE INVESTMENT
DIVISIONS OF THE SEPARATE ACCOUNT MAINTAINED BY AXA EQUITABLE AND MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THE CONTRACT.
Flexible Premium Variable Deferred Annuity Certificate
The term "Separate Account" means the Separate Account No. 301 established by
AXA Equitable and maintained under the laws of the State of New York. Realized
and unrealized gains and losses from the assets of the Separate Account are
credited or charged against it without regard to other income, gains or losses
of AXA Equitable. Assets are put in the Separate Account to support the
certificates issued under the Contract and other variable annuity contracts and
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts, policies or other agreements which are not variable in
form.
NEW YORK,
AXA EQUITABLE LIFE INSURANCE COMPANY
/s/ Xxxxxxxxxxx X. Xxxxxxx /s/ Xxxxxxx Xxxxxxx
------------------------------------- ---------------------------
Xxxxxxxxxxx X. Xxxxxxx Xxxxxxx Xxxxxxx
President and Chief Executive Officer Senior Vice President,
Secretary and Associate
General Counsel
301-10,001-2002 Page 1
CONTENTS
PART I DEFINITIONS PAGE 4
PART II THE SEPARATE ACCOUNT AND ITS INVESTMENT DIVISIONS PAGE 8
PART III PARTICIPANT'S ACCOUNT PAGE 11
PART IV ANNUITY BENEFITS AND REQUIRED MINIMUM DISTRIBUTION PAYMENTS PAGE 19
PART V GENERAL PROVISIONS PAGE 29
CERTIFICATE AND CONTACT:
o AXA Equitable certifies that the Participant named on page 3 of this
certificate is included under the Group Annuity Contract (the "Contract")
designated on page 3, all pertinent provisions of which are set forth
below.
o This certificate is valid only if participation under the Contract has not
been terminated as described in the Contract and is subject to amendment as
may be required pursuant to Section 5.02.
o The Contract is issued in consideration of the payment to AXA Equitable of
the contributions under the Contract.
o The statements on the following pages are part of this certificate.
"We," "our" and "us" refers to AXA Equitable.
301-10,001-2002 Page 2
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Please be sure to keep this page with the rest of the certificate.
AXA Equitable Office: AXA EQUITABLE LIFE INSURANCE COMPANY
P.O. Box 2468, GPO
New York. NY 10116
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XXXXXXXXXX XXXXXXXX
1511 BUL XXXXXXX DR.
EMPORIA, VA 23847
Enrollment Date: 06/12/2003
Certificate Number: ###-##-####
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Contract Holder: CHASE MANHATTAN BANK
Group: AMERICAN ACADEMY OF PEDIATRICS
Group Number: HH5420450191
Group Annuity Contract Number: AC 5361
Participant Service Charge: $3.75 PER CALENDAR QUARTER
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Available Investment Accounts:
Guaranteed Rate Accounts High Yield Account
Money Market Account Global Account
Stock Account Growth & Income Account
Government Securities Account Growth Investors Account
Balanced Account Conservative Investors Account
Aggressive Stock Account MFS Emerging Growth Companies Account
EQ Equity 500 Index Account Xxxxxx International Equity Portfolio Account
Lazard Small Cap Value Account
AXA Equitable reserves the right to add or remove Investment Accounts in accordance with Section 3.01.
301-10,001-2002 PAGE 3
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301-10,001-2002 Page 3
TABLE OF GUARANTEED VALUES
ISSUE AGE: 35 MALE
ANNUAL CONTRIBUTION: $1,000
Number of Years Guaranteed Guaranteed Paid Up Monthly
Since First Contribution Cash Value Annuity at Age 65*
1 999.66 4.87
2 2,000.00 16.54
3 3,000.00 27.86
4 4,000.00 38.86
5 5,000.00 49.53
6 6,013.60 59.90
7 7,123.70 69.96
8 8,267.10 79.73
9 9,444.80 89.21
10 10,657.83 98.42
11 11,907.25 107.36
12 13,194.16 116.04
13 14,519.67 124.47
14 15,884.95 132.65
15 17,291.19 140.59
. 16 18,739.61 148.30
17 20,231.49 155.79
18 21,768.12 163.06
19 23,350.85 170.12
20 24,981.07 176.97
25 33,895.74 208.35
27 (Age 62) 37,847.26 219.66
30 (Age 65) 44,230.30 235.42
The Tables illustrate minimum Guaranteed Values and assume a hypothetical $1,000
contribution made annually on the Enrollment Date. The Guaranteed Cash Value
Table reflects a quarterly Participant Service Charge of $7.50 (see Section
3.08) and a premature Guarantee Withdrawal Charge (see Section 1.05) of up to 7%
of the Account Balance. The Tables assume that 100% of all contributions are
allocated to and remain in the Guaranteed Rate Account.
Your actual Guaranteed Values may differ from those shown above, depending on
the level and frequency of your contributions and the Participant Service Charge
applicable.
*Assumes Full Cash Refund Annuity.
301-10,001-2002 Page 4
PART I - DEFINITIONS
SECTION 1.00 ANNUITY
The term "Annuity" means an individual retirement annuity meeting the
requirements of Section 408(b) of the Internal Revenue Code.
SECTION 1.01 APPLICABLE TAX CHARGE
The term "Applicable Tax Charge" means a charge that we determine which is
designed to approximate certain taxes that may be imposed on us, including, but
not limited to, premium taxes which may apply in the Participant's state.
SECTION 1.02 CASH VALUE
The term "Cash Value" means an amount equal to the sum of the Participant's
Account Balances, less any charges that applies to any of the Participant's
Accounts.
SECTION 1.03 CODE
The term "Code" means the Internal Revenue Code of 1986, as now or hereafter
amended or any corresponding provisions of prior or subsequent United States
revenue laws. References to the "Code" in this Contract include references to
applicable Federal income tax regulations.
SECTION 1.04 CONTINUATION BENEFICIARY
The term "Continuation Beneficiary" means an individual beneficiary who elects
to keep the certificate in force following the death of the Participant for the
purpose of receiving required minimum distributions after the death of the
original Participant in accordance with Part IV.
SECTION 1.05 DEFINITIONS RELATING TO THE GUARANTEED RATE ACCOUNT
GUARANTEE: Each contribution allocated to the Participant's Guaranteed Rate
Account will be assigned to one or more of a group of Guarantees, each of which
will be distinguished by:
(i) its Contribution Quarter, as defined below;
(ii) its Duration, as defined below; and
(iii) its Guarantee Rate, as defined below.
CONTRIBUTION QUARTER: The Contribution Quarter for a particular Guarantee is
that calendar quarter during which participant contributions may be assigned to
that Guarantee. After the expiration of the Contribution Quarter for a
Guarantee, no further contributions may be assigned to that Guarantee.
DURATION: The Duration for a Guarantee commences on the first day of the
Contribution Quarter for that Guarantee and ends on the last day of a calendar
quarter that is specified at the time the applicable Guarantee Rate (as defined
below) is established, as described below.
301-10,001-2002 Page 5
GUARANTEE ACCRUED VALUE: The Participant's Accrued Value with respect to a
particular Guarantee will be equal to the sum of the Participant's contributions
assigned to that Guarantee, including transfers, plus the amount of interest
credited with respect to that Guarantee, minus the sum of the withdrawals made
with respect to that Guarantee, including transfers and Guarantee Withdrawal
Charges, defined below, and any applicable Participant Service Charges, as set
forth in Section 3.08. Such Accrued Value will be credited with interest daily
at an annual effective rate of interest equal to the Guarantee Rate.
GUARANTEE RATE: The Guarantee Rate for a particular Guarantee is the effective
annual rate of interest applicable throughout the Duration of that Guarantee.
The open period for such a Guarantee Rate will be from the date it is declared
through the last day of the Contribution Quarter or until AXA Equitable
establishes a new Guarantee Rate during such Contribution Quarter. AXA Equitable
will establish and announce the first Guarantee Rate of a given Contribution
Quarter at least 10 days prior to the commencement of the Contribution Quarter.
AXA Equitable reserves the right, however, to change the Guarantee Rate during a
Contribution Quarter. Each contribution or transfer shall be credited with the
Guarantee Rate in effect on the date of its receipt and shall not be affected by
any subsequent change in the Guarantee Rate offered by AXA Equitable. The
Guarantee Rate will never be less than 3% per annum.
GUARANTEE WITHDRAWAL CHARGE: Any transfers or withdrawals with respect to a
Guarantee prior to the end of the Duration of that Guarantee, except for
withdrawals for Participant Service Charges as set forth in Section 3.08, for
death or disability benefits as set forth in Section 3.11, or upon the election
of an Annuity Benefit pursuant to Sections 4.03 and 4.05 or a periodic
distribution option in accordance with Sections 4.04 and 4.05, will be subject
to a Guarantee Withdrawal Charge. The Guarantee Withdrawal Charge will be equal
to the lesser of (i) 7% of the amount transferred or withdrawn (including the
amount of such Guarantee Withdrawal Charge), and (ii) the "interest
attributable" to the amount transferred or withdrawn, defined as (a) times the
excess of (b) over (c), where:
(a) is the amount transferred or withdrawn from a Guarantee divided by the
Participant's Accrued Value with respect to that Guarantee;
(b) is such Accrued Value; and
(c) is the excess to date of (i) the Participant's contributions,
including transfers, assigned to that Guarantee over (ii) "Net
Withdrawals" with respect to that Guarantee.
The "Net Withdrawals" with respect to a Guarantee are the actual amounts
credited to the Participant through transfers with respect to that Guarantee
pursuant to Section 3.05, and the actual amounts paid to the Participant through
partial withdrawals with respect to that Guarantee pursuant to Section 3.06,
exclusive of any Guarantee Withdrawal Charges assessed. Withdrawals of
Participant Service Charges from a Guarantee are not included in "Net
Withdrawals". The Guarantee Withdrawal Charge will be deducted from the
remaining amounts in the Participant's Guarantee after the withdrawal or
transfer payment is processed; except the Guarantee Withdrawal Charge may be
deducted from the withdrawal or transfer payment if there is an insufficient
amount in the Participant's Guarantee to pay such a charge.
301-10,001-2002 Page 6
SECTION 1.06 GROUP
The term "Group" includes, but is not necessarily limited to, a corporation,
labor organization or association thereof, governmental or quasi-governmental
body, partnership, sole proprietorship, trade or professional association, or
any other group or entity entering into a Supplemental Agreement, as specified
on page 3.
SECTION 1.07 PARTICIPANT
The term "Participant" means a person who has been enrolled by AXA Equitable
under the Contract through a Supplemental Agreement. The term "Participant" may
also include a Continuation Beneficiary after the death of the original
Participant. A person shall become enrolled under the Contract on the date,
hereinafter called the "Enrollment Date", on which AXA Equitable receives an
enrollment form made available by AXA Equitable and completed in a manner
satisfactory to, and accepted by, AXA Equitable. A person who has been enrolled
under the Contract shall be the Participant under the certificate issued
pursuant to Section 5.09 during the person's lifetime, provided a contribution
is made for the Participant within 120 days of the Enrollment Date.
SECTION 1.08 RETIREMENT DATE
The term "Retirement Date" means the date on which the Participant will attain
the retirement age specified by the Participant in the Participant's enrollment
form. If no age has been specified in the enrollment form, the Retirement Date
will be the Required Beginning Date as defined in Section 4.05. Before the
Retirement Date the Participant may elect to change the Retirement Date to
another Retirement Date, which may be the first day of any calendar month after
the filing of the election. Any election for such change must be made in writing
by the Participant and shall not take effect until received by AXA Equitable at
the AXA Equitable office address on page 3, or any other address that AXA
Equitable designates in written notice to the Participant.
The Participant may not choose a Retirement Date later than the maximum maturity
age under state law. If the Participant chooses a Retirement Date later than age
70-1/2, the Participant must meet the lifetime Required Minimum Distribution
rules applicable to this IRA certificate by making withdrawals at least annually
with respect to this certificate. See Part IV, Annuity Benefits and Required
Minimum Distribution Payments.
SECTION 1.09 SUPPLEMENTAL AGREEMENT
The term "Supplemental Agreement" means any written understanding between the
Group and AXA Equitable which, among other things, may describe:
(i) procedures for facilitating the enrollment of Participants under the
Contract;
(ii) procedures pursuant to which contributions may be made under the
Contract by or on behalf of Participants (including payroll deduction,
direct contributions by the Participants, or a combination thereof);
301-10,001-2002 Page 7
(iii) procedures for facilitating the communication to Participants of
information prepared by AXA Equitable concerning the Contract and
enrollment and contributions thereunder; and
(iv) the extent to which the Group will perform any services in connection
with the Contract which would otherwise be performed by AXA Equitable.
PART II - THE SEPARATE ACCOUNT AND ITS INVESTMENT DIVISIONS
SECTION 2.01 THE SEPARATE ACCOUNT AND ITS INVESTMENT DIVISIONS
The term "Separate Account" means the Separate Account No. 301 established by
AXA Equitable and maintained under the laws of the State of New York. Realized
and unrealized gains and losses from the assets of the Separate Account are
credited or charged against it without regard to other income, gains or losses
of AXA Equitable. Assets are put in the Separate Account to support the
certificates issued under the Contract and other variable annuity contracts and
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts, policies or other agreements which are not variable in
form.
The Separate Account now operates in unit investment form and consists of
Investment Divisions. Each of the Investment Divisions may invest its assets in
a separate class of shares of a designated investment company in which each
class represents a separate portfolio in the investment company. The Investment
Divisions are set forth in the enrollment form.
AXA Equitable may, at its discretion, make other Investment Divisions available
to Participants. AXA Equitable will provide Participants with written notice of
all material details covering investment objectives and all charges, which may
include expenses and fees, if any, incurred by the investment company.
AXA Equitable reserves the right, subject to compliance with applicable law,
including approval of the Contract Holder or Participants, if required, (1) to
cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, (2) to operate the Separate Account under the
direction of a committee and to discharge such committee at any time, (3) to
restrict or eliminate any voting rights of Participants or other persons who
have voting rights as to the Separate Account, (4) to add, change or remove the
designated investment company, (5) to add, change or remove Investment
Divisions, (6) to combine any two or more Investment Divisions, (7) to transfer
assets from any one of the Investment Divisions to another Investment Division,
and (8) to operate the Separate Account or one or more of the Investment
Divisions by making direct investments or in any other form AXA Equitable in its
sole discretion determines. The term "Investment Division" refers to any other
Investment Division in which the assets of a class of certificates to which the
Contract belongs are placed. AXA Equitable may, however, at its discretion,
invest the assets of the Separate Account or one or more of the Investment
Divisions in any investment permitted by applicable law.
AXA Equitable may rely conclusively on the opinion of counsel (including
attorneys in its employ) as to what investments it is permitted by law to make.
In addition, unless otherwise required by law
301-10,001-2002 Page 8
or regulation, an investment adviser or any investment policy may not be changed
without the consent of AXA Equitable.
If any of the above changes result in a material change in the underlying
investments of an Investment Division of the Separate Account, AXA Equitable
will notify the Participant of such change. If the Participant has value in that
Investment Division, the Participant may request AXA Equitable in writing or by
telephone through AIMS (Account Investment Management System) to transfer that
value from that Investment Division (without charge) to another Investment
Division of the Separate Account, and may additionally change the allocation
percentages applicable to future contributions made for him or her.
AXA Equitable will value the assets of each Investment Division on each Business
Day, in accordance with the provisions of Section 2.02.
SECTION 2.02 DEFINITIONS RELATING TO THE INVESTMENT DIVISIONS
EXPENSES: For a Valuation Period, the Expenses which may be charged to an
Investment Division are as follows:
(1) Any amount charged against the Investment Division by AXA Equitable during
such Valuation Period to cover certain expenses incurred in the operation
of the Separate Account and the Investment Divisions, including, but not
limited to, taxes, interest, Securities and Exchange Commission charges and
certain related expenses including printing of registration statements and
amendments, outside auditing and legal expenses and certain costs of
maintaining participant services, including recordkeeping services.
(2) The daily charge against the Investment Division for each day in such
Valuation Period for administrative expense charges, calculated on the
basis of an effective annual rate of 0.25% of the value of the assets in
the Investment Division.
If the aggregate expenses of an Investment Division for a calendar year
(including the charges described in sub-paragraphs (1) and (2) of this
definition and investment advisory fees of the Trust ("Investment Advisory Fee")
and certain other expenses attributable to the assets of the Investment Division
invested in a corresponding Fund of the Trust, but excluding interest, taxes,
brokerage and, with the consent of appropriate state regulatory authorities,
extraordinary expenses) exceed a charge determined on the basis of an effective
annual rate of (i)1.0% of the value of the Money Market Division's average daily
Net Assets in such Investment Division during such calendar year, or (ii) 1.5%
of the value of the Stock Division, the Government Securities Division or the
Balanced Division's average daily Net Assets in such Investment Division during
such calendar year, then AXA Equitable shall reimburse such Investment Division
for the excess charged to such Investment Division.
NET ASSETS: For an Investment Division, the "Net Assets" equal the value of the
assets in the Investment Division at the close of business of a Valuation
Period, minus the sum of (1) Expenses, and (2) any amount charged against the
Investment Division in such Valuation Period for taxes or for amounts set aside
by AXA Equitable as a reserve for taxes attributable to the maintenance or
301-10,001-2002 Page 9
operation of the investment Division. The net asset value of a designated
investment company's shares held in each Investment Division shall be the value
reported to AXA Equitable by such investment company.
NET INVESTMENT FACTOR: For an Investment Division, the "Net Investment Factor"
for a Valuation Period is (1) the Net Assets at the close of business of that
Valuation Period, prior to giving effect to any amounts allocated to or
withdrawn from the Investment Division during that Valuation Period, divided by
(2) the Investment Division's Net Assets at the close of business of the
preceding Valuation Period.
UNIT: Contributions that are allocated to an Investment Division purchase Units
in that Division.
UNIT VALUE: The "Unit Value" is the dollar value of each Unit of each Investment
Division on the first day contributions are allocated to the Separate Account.
The Unit Value for each subsequent Valuation Period with respect to an
Investment Division is the Unit Value for the immediately preceding Valuation
Period multiplied by the Net Investment Factor for such subsequent Valuation
Period.
VALUATION PERIOD: For an Investment Division, the "Valuation Period" starts at
the end of each Business Day and ends at the corresponding time on the next
Business Day, and includes any non-business day or consecutive non-business days
immediately preceding such Business Day. A "Business Day" is any day the New
York Stock Exchange is open for trading. Our Business Day generally ends at 4:00
p.m. Eastern Standard Time.
PART III - PARTICIPANT'S ACCOUNT
SECTION 3.01 ACCOUNTS
AXA Equitable will maintain at least one Account under the Contract for the
Participant; at the written request of the Participant satisfactory to AXA
Equitable, an additional Account will be maintained for the Participant with
respect to each rollover contribution made pursuant to Subparagraph 2 of Section
3.03 if such contribution was derived from another eligible retirement plan,
including an employee benefit plan described in Section 401(a) of the Code. Each
such Account will contain one or more sub-accounts, hereinafter called
"Investment Accounts." The Investment Accounts made available to the Participant
are as specified on Page 3. AXA Equitable reserves the right to add or remove
Investment Accounts. Any amounts allocated to an Investment Account will either
become part of the Guaranteed Rate Account or part of an Investment Division of
the Separate Account applicable to that Investment Account.
Any amounts withdrawn from an Investment Account will no longer be part of the
Guaranteed Rate Account or the applicable Investment Division.
301-10,001-2002 Page 10
SECTION 3.02 ACCOUNT BALANCES OF INVESTMENT ACCOUNTS
On any day, the Account Balance of the Participant's Investment Account, other
than the Guaranteed Rate Account, will be equal to the product of the number of
Units in that Investment Account on that date and the Unit Value for the
applicable Investment Division for the Valuation Period which includes that
date. The number of Units in such an Investment Account on any date will be
equal to the sum of any Units credited to that Investment Account less the value
of any Units withdrawn from that Investment Account. On any Valuation Date when
a designated amount is allocated to or withdrawn from such an Investment
Account, the Investment Account will be credited or charged, as the case may be,
with a number of Units determined by dividing the designated amount by the
applicable Unit Value for the Valuation Period which includes that date.
On any day, the Account Balance of the Participant's Guaranteed Rate Account
will be equal to the sum of the Accrued Values, on such day, with respect to all
the Guarantees to which contributions of the Participant have been assigned. On
any day, the Participant's Cash Value with respect to a particular Guarantee
will be equal to the Accrued Value with respect to that Guarantee minus any
applicable Guarantee Withdrawal Charge, as set forth in Section 1.05.
SECTION 3.03 CONTRIBUTIONS
The Participant may have contributions made on such dates and in such amounts as
the Participant may determine, subject to the following conditions:
1. Contributions may be made for the Participant through a Supplemental
Agreement. Any contribution made for the Participant by any means other
than through payroll deduction by the Participant's employer pursuant to a
Supplemental Agreement may be made only subject to AXA Equitable's rules
then in effect.
2. Rollover contributions may be made under the Contract for the
Participant as permitted by the following Code Sections: 402(c), 402
(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) and 457(e)(16). Amounts
may also be contributed by directly transferring from another traditional
individual retirement arrangement under Code Section 408 ("direct
transfer").
3. Any contribution will be deemed by AXA Equitable to be made for the
Participant's current taxable year unless the Participant specifies in
writing to AXA Equitable, subject to applicable requirements of the Code,
that such contribution is a (i) rollover contribution or a direct transfer
contribution as described above, or (ii) such contribution is for the
Participant's prior taxable year.
4. No contributions, other than cash contributions, will be accepted.
(a) Except in the case of a rollover contribution (as permitted by
Sections 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10),
408(d)(3) and 457(e)(16) of the Code), or a contribution made
under the terms of a Simplified Employee Pension as described in
Section 408(k) of the Code, the total of such contributions will
not exceed:
301-10,001-2002 Page 11
$3,000 for any taxable year beginning in 2002 through 2004;
$4,000 for any taxable year beginning in 2005 through 2007; and
$5,000 for any taxable year beginning in 2008 and years
thereafter.
After 2008, the limit will be adjusted by the Secretary of the
Treasury for cost-of-living increases under Code Section
219(b)(5)(C). Such adjustments will be in multiples of $500.
(b) In the case of the Participant who is 50 or older, the annual
cash contribution limit is increased by:
$500 for any taxable year beginning in 2002 through 2005; and
$1,000 for any taxable year beginning in 2006 and years
thereafter.
Amounts directly transferred to the Contract from an individual retirement
account or annuity contract which meets the requirements of Section 408 of
the Code are also not subject to the limits described in Subparagraph 4(a)
and 4(b) of this Section 3.03.
(c) No contributions will be accepted under a SIMPLE IRA plan
established by any employer pursuant to Code Section 408(p).
Also, no transfer or rollover of funds attributable to
contributions made by a particular employer under its SIMPLE IRA
plan will be accepted from a SIMPLE IRA, that is, an IRA used in
conjunction with a SIMPLE IRA plan, prior to the expiration of
the 2-year period beginning on the date the Participant first
participated in that employer's SIMPLE IRA plan.
5. The Participant shall be responsible, for tax purposes, for maintaining
records as to the amount of contributions which are deductible and
non-deductible made by or on behalf of the Participant.
SECTION 3.04 ALLOCATIONS
The Participant will direct the allocation of each contribution made for the
Participant to the Participant's Investment Accounts, subject to the following
conditions:
1. The Participant's direction of the allocation of contributions to the
Participant's Investment Accounts shall be in terms of whole percentages.
2. Allocations will be made as of the date on which AXA Equitable receives
the contribution (a) as provided in the Supplemental Agreement in the case
of payroll deductions or (b) at the address shown on Page 3 in the case of
contributions other than through payroll deductions.
3. Any contribution made without appropriate direction as to its allocation
will be allocated to the Participant's Money Market Investment Account.
301-10,001-2002 Page 12
4. The Participant may upon written notice to AXA Equitable or through
AIMS, change the allocation of future contributions. If a contribution made
other than through payroll deduction accompanies the written notice, the
change shall be effective as of the date of receipt of the contribution.
Allocation changes unaccompanied by a check shall be effective as of the
date of the first contribution received after AXA Equitable's receipt of
the Participant's written notice, or, in the case of the Guaranteed Rate
Account, at the beginning of the next Contribution Quarter. Equitable
reserves the right to limit, upon at least 90 days advance notice to the
Participant, the number of such changes allowed in a calendar year, and,
with respect to the Guaranteed Rate Account, the timing and effective date
of such allocation changes.
5. If AXA Equitable offers more than one Guarantee during a Contribution
Quarter, contributions allocated to the Participant's Guaranteed Rate
Account during that Contribution Quarter will be allocated among the
Guarantees receiving contributions during such Contribution Quarter in
accordance with the instructions of the Participant. If contributions are
received with instructions for allocation to Guarantee Durations which
differ from those being offered during that Contribution Quarter, the part
of the contribution which cannot be allocated in accordance with those
instructions will be assigned to the Guarantee with the next shorter
Duration to which contributions are being assigned during that Contribution
Quarter, or, if contributions are not being assigned to a Guarantee with a
shorter Duration than that requested, to the Guarantee of the shortest
Duration.
SECTION 3.05 TRANSFERS
The Participant may transfer amounts among the Investment Accounts maintained
for the Participant under the Contract, subject to the following conditions:
1. The request for the transfer must be made in writing or via AIMS and
will be effective on the Business day that AXA Equitable receives such
request, except as set forth in subsection 4 below.
2. The amount so transferred will be allocated as of the date of transfer
to the Investment Account, or among the Investment Accounts, selected by
the Participant, except as set forth in subsection 4 below.
3. Transfers may not be made from one Guarantee in the Guaranteed Rate
Account to another. Transfers from a Guarantee in the Guaranteed Rate
Account may not be made during the Contribution Quarter with respect to
that Guarantee. Any other transfer may be made at any time.
4. Upon at least 90 days advance notice to the Participant. AXA Equitable
may limit the number of transfers that the Participant may make in any
twelve month period or limit the circumstances under which transfers may be
made to or from the Guaranteed Rate Account.
5. Transfers from the Guaranteed Rate Account are subject to the Guarantee
Withdrawal Charge as described in Section 1.05.
301-10,001-2002 Page 13
SECTION 3.06 PARTIAL WITHDRAWALS
The Participant may elect by written notice to AXA Equitable to make a partial
withdrawal from the Participant's Accounts on or before the Participant's
Retirement Date, subject to AXA Equitable's advance written consent if such
withdrawal is for an amount of less than $250. If such election would result in
the sum of the amounts then in the Participant's Investment Accounts being less
than $100, AXA Equitable will deem such election to be instead an election by
the Participant to terminate Participation under the Contract and will make the
payment described in Section 3.10 in lieu of any payment under this Section
unless the Participant requests that the certificate issued pursuant to Section
5.09 be permitted to remain in effect and AXA Equitable agrees.
Upon a partial withdrawal, AXA Equitable will pay to the Participant the lesser
of (i) the Cash Value of the Participant's Accounts or (ii) the amount of
partial withdrawal requested. Unless AXA Equitable is otherwise directed by the
Participant in accordance with AXA Equitable's requirements, the amount so paid
will be withdrawn from the Participant's Investment Accounts in proportion to
the amount of the Participant's Account Balance in each such Investment Account.
Unless otherwise directed by the Participant, withdrawals from the Guaranteed
Rate Account will be made from the Guarantee with the most recent Contribution
Quarter of each Duration (that is, one year, three year and so forth)
represented in the Participant's Guaranteed Rate Account in the same proportion
that the sum of the Accrued Values of the Participant's Guarantees of each
Duration bears to the Account Balance of the Participant's Guaranteed Rate
Account, or, if such Accrued Values prove insufficient, from the Guarantee or
Guarantees with the next most recent Contribution Quarter.
Notwithstanding anything to the contrary in this Section, withdrawals pursuant
to this Section may not be made from a Guarantee in the Guaranteed Rate Account
during its Contribution Quarter.
Upon any payment to the Participant pursuant to this Section, AXA Equitable will
be released from any and all liability for payments with respect to the
contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to this Section may be deferred by AXA
Equitable in accordance with the provisions of Section 5.06.
301-10,001-2002 Page 14
SECTION 3.07 EXPIRATION OF THE GUARANTEE
At the end of the Duration of a Guarantee, AXA Equitable will assign the Accrued
Value with respect to that Guarantee (i) to the Guarantee of similar Duration to
which contributions are being assigned during the Contribution Quarter next
following, (ii) if no Guarantee of similar Duration is being offered, to the
Guarantee with the shortest Duration being offered, or (iii) as elected by the
Participant pursuant to instructions received on or before the end of the
Guarantee.
SECTION 3.08 PARTICIPANT SERVICE CHARGE
AMOUNT:
Once in each calendar quarter, AXA Equitable will withdraw from the
Participant's Accounts a Participant Service Charge for the Participant for
administrative expenses.
The amount of such charge shall be determined by AXA Equitable but will not be
more than a maximum charge of $7.50 for the Participant in each calendar
quarter. The amount determined by AXA Equitable will be based on such factors as
(i) the method by which contributions are being made under the Contract (payroll
deduction, direct contribution or other), (ii) the number of Participants
contributing through the same payroll deduction facility or Group, (iii) the
total contributions AXA Equitable estimates will be made pursuant to an
Supplemental Agreement, (iv) the nature of the Group, (v) the extent to which,
as determined by AXA Equitable, the Group provides services pursuant to the
Supplemental Agreement that AXA Equitable would otherwise provide, (vi) any
other circumstances having an impact on AXA Equitable's administrative expense,
and (vii) whether the Participant is then receiving payments under the periodic
distribution option described in Section 4.04. The Participant Service Charge
will be deducted from the Participant's Accounts, and within those Accounts from
the Participant's balance in each Investment Account, in accordance with the
ordering rule established by AXA Equitable from time to time. The ordering rule
in effect from time to time shall be available to the Participant upon request.
Such withdrawals will reduce the number of Units in the Participant's Investment
Accounts.
The initial Participant Service Charge for the Participant shall be stated on
page 3.
AXA Equitable reserves the right to withdraw the Participant Service Charge more
or less frequently than once each calendar quarter but the amount will never
exceed $30 per annum.
EMPLOYER PAYMENT:
Pursuant to the terms of the Supplemental Agreement, the Group may have a
contribution made of an amount equal to the Participant Service Charge then due
for the Participant. If such a contribution is made, no withdrawal from the
Participant's Account will then be made pursuant to this Section.
SECTION 3.09 ENROLLMENT FEE
An enrollment fee of $25 will be paid to AXA Equitable upon the enrollment of
each new Participant in a Simplified Employee Pension. Unless the Participant's
employer pays the fee, it will be charged against the first contribution made on
behalf of the Participant.
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SECTION 3.10 TERMINATION OF PARTICIPATION
On or before the Participant's Retirement Date, the Participant may elect by
written notice to terminate participation under the Contract. As of the date of
receipt of such notice, AXA Equitable will determine and, subject to Section
5.06, pay to the Participant the Cash Value of the Participant's Accounts.
AXA Equitable may elect to terminate the Participant's participation under the
Contract if no contribution has been made by or on behalf of the Participant for
at least three years from the date of the last contribution to the Participant's
Account and if the sum of the Account Balances of the Participant's Investment
Accounts does not exceed $2,000 or would, if it were then the Participant's
Retirement Date, provide an Annuity Benefit of less than $20 per month. As of
such date, AXA Equitable will determine and, subject to Section 5.06, pay to the
Participant the Cash Value of the Participant's Accounts.
Upon payment to the Participant pursuant to this Section, AXA Equitable will be
released from any and all liability for payments with respect to the
contributions from which the sum of the amounts then in the Participant's
Investment Accounts arose.
SECTION 3.11 DEATH OR DISABILITY BENEFIT
DEATH:
If the Participant dies while an Account for the Participant is being maintained
under the Contract, AXA Equitable, upon receipt of due proof of death will pay,
the Cash Value of the Participant's Accounts as of the date such due proof is
received, in a single sum to the beneficiary designated by the Participant to
receive such payment. Due proof of death must be received by AXA Equitable at
the AXA Equitable office address on Page 3, or any other address AXA Equitable
designates in written notice to the Participant.
Under either of the following two circumstances, the Death Benefit under this
Section 3.11 of the certificate will not be paid at the Participant's death and
the coverage under the certificate will continue if:
(1) The Participant is married at the time of his or her death; the
designated beneficiary under Section 5.04 of the certificate is the
surviving spouse; and the surviving spouse elects to treat the IRA as
his or her own IRA pursuant to Section 4.05B(e).
(2) Also, a Death Benefit will not be paid under this Section 3.11 if the
"Beneficiary Continuation Option" under Section 3.13 is in effect.
DISABILITY:
If the Participant becomes disabled within the meaning of Section 72(m)(7) of
the Code while an Account for the Participant is being maintained under the
Contract, AXA Equitable, upon receipt of due proof of disability, will pay the
Cash Value of the Participant's Accounts as of the date such due proof is
received, in a single sum to the Participant. Due proof of such disability, must
be
301-10,001-2002 Page 16
received by AXA Equitable at the AXA Equitable office address on Page 3, or
any other address AXA Equitable designates in written notice to the Participant.
Payment to the Participant or the beneficiary may be deferred by AXA Equitable
in accordance with the provisions of Section 5.06.
Upon any payment made pursuant to this Section, AXA Equitable will be released
from any and all liability for payment with respect to the contributions made
for the Participant.
SECTION 3.12 OPTIONAL MODES OF SETTLEMENT
The Participant may elect that the whole or any part of any amount that would
otherwise be payable to the Participant's designated beneficiary in a single sum
be paid to such beneficiary under an optional mode of settlement, subject to the
provisions of Section 4.05 and to AXA Equitable's rules in effect at the time of
election. A beneficiary may make such an election after the Participant's death
if no such election made by the Participant is then in effect.
Any payee under an optional mode of settlement elected pursuant to this Section
may designate (with the right to revoke or to change such designation) a
beneficiary to receive any amount that, in the absence of such designation,
would be payable to such payee's executors or administrators.
Any election of an optional mode of settlement may be revoked or changed by the
Participant at any time before a payment is made thereunder. Any election,
designation, revocation or change shall be effective as of the date written
notice thereof is received by AXA Equitable at the office on Page 3, or any
other address AXA Equitable designates in written notice to the Participant.
SECTION 3.13 BENEFICIARY CONTINUATION OPTION
This Section 3.13 will apply only if the Participant dies before the Retirement
Date, and the beneficiary named under Section 5.04 of the certificate is an
individual.
With the exception of the following paragraph, this Section 3.13 does not apply
to any beneficiary which is not an individual, and the death benefit described
in Section 3.11 of the certificate is payable to that non-individual
beneficiary.
This Section 3.13 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. 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 Section 5.04, the successor Participant for purposes of this
certificate is the oldest beneficiary of such trust.
If this Section 3.13 applies and there is more than one beneficiary, the Account
Balances of the Participant's Accounts and the Participant's Guaranteed Rate
Accounts and any other interest under
301-10,001-2002 Page 17
the Contract described in Section 4.05 will be apportioned among the
beneficiaries as designated pursuant to Section 5.04 of the certificate.
If the beneficiary qualifies to continue this certificate, and we receive that
beneficiary's completed election no later than September 30 of the calendar year
following the calendar year of the Participant's death and before any contrary
election is made, that beneficiary may continue the certificate pursuant to this
Section 3.13 under the terms set forth 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 that
beneficiary's share of the Death Benefit pursuant to Section 3.11 of the
certificate in a lump sum.
a. Each Continuation Beneficiary will automatically become the
Participant as defined in the Section 1.07 of the certificate with
respect to that Continuation Beneficiary's portion of the interest
under the Contract. If the Participant has specifically elected under
Section 5.04 that we not separately account for each beneficiary's
portion of the interest under the Contract, the oldest Continuation
Beneficiary will be the Participant for purposes of calculating the
Required Minimum Distribution payments in Section 4.05B (Required
Minimum Distribution Payments After Death).
b. Each Continuation Beneficiary will have the same right that the
deceased Participant had to transfer amounts among the Accounts with
respect to that Continuation Beneficiary's portion under the Contract.
c. A Continuation Beneficiary cannot make any additional contributions.
d. Distributions to the Continuation Beneficiary with respect to that
Continuation Beneficiary's portion of the interest under the Contract
will be made in accordance with requirements described in Section
4.05B (Required Minimum Distribution Payments After Death).
e. A Continuation Beneficiary may make partial withdrawals from the
Account apportioned to such Continuation Beneficiary or terminate
Participation 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.
f. 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 Account, 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 Section 4.05B (Required Minimum Distribution Payments After Death).
g. The certificate cannot be assigned and must continue in the deceased
Participant's name for benefit of the Continuation Beneficiary.
301-10,001-2002 Page 18
PART IV - ANNUITY BENEFITS AND REQUIRED
MINIMUM DISTRIBUTION PAYMENTS
SECTION 4.01 ANNUITY BENEFIT
The term "Annuity Benefit" means a series of monthly payments with respect to a
specified person or persons payable in a specified dollar amount.
The term "Annuity Value" means the amount determined on the Participant's
Retirement Date, equal to the sum of the Cash Value of the Participant's
Accounts.
The term "Amount Applied" means the portion of the Annuity Value which the
Participant elects to apply toward an Annuity Benefit pursuant to Section 4.02,
less any Applicable Tax Charge, and a one-time administrative fee at the
applicable rate in effect on the date of purchase.
Each monthly payment under any Annuity Benefit under the Contract will be the
amount provided pursuant to Section 4.03.
The Normal Form of Annuity Benefit under the Contract means the Full Cash Refund
Annuity form which provides for equal monthly payments to the Participant
beginning on the Participant's Retirement Date and ending with the last monthly
payment due before the Participant's death, and, upon receipt by AXA Equitable
of due proof of the Participant's death, a single sum payment to the beneficiary
designated to receive such payment of an amount equal to the excess, if any, of
the Amount Applied over the sum of all the annuity payments that have been paid
to the Participant under the Contract.
SECTION 4.02 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS
As of the Participant's Retirement Date, provided the Participant is then
living, the Participant's Annuity Value shall be applied to provide an Annuity
Benefit on the Normal Form, unless the Participant elects as of such Retirement
Date to (i) terminate participation under the Contract and receive the Cash
Value of the Participant's Accounts as a single sum pursuant to Section 3.10,
(ii) have payments made under the periodic distribution option described in
Section 4.04, (iii) have another form of Annuity Benefit provided pursuant to
Section 4.03 or, (iv) subject to AXA Equitable's rules then in effect, any other
annuity form or combination of forms or withdrawal option offered by AXA
Equitable or have any combination of the three preceding options.
In all events the Participant's election, or the beneficiary's if applicable, is
subject to the rules in Section 4.05, Required Minimum Distribution Rules.
Notwithstanding anything to the contrary above, AXA Equitable reserves the right
to pay the Participant's Cash Value to the Participant in a single sum: (1) if
the Cash Value is equal to or less than $2,000; (2) if less than $20 per month
would be payable under the Annuity Benefit; (3) if less than $50 per month would
be payable under the periodic distribution option.
301-10,001-2002 Page 19
AXA Equitable will provide appropriate notice and election forms to the
Participant not more than six months or less than three months before the
Participant's Retirement Date.
AXA Equitable has the right to require the Participant to furnish pertinent
facts and determinations before providing an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
SECTION 4.03 AMOUNT OF ANNUITY BENEFITS
If the Participant elects an Annuity Benefit, the Amount Applied will be applied
as of the Participant's Retirement Date to provide the Annuity Benefit.
The Amount Applied shall provide the Annuity Benefit on the basis of either (i)
the Table of Guaranteed Annuity Payments shown in Section 4.06, (ii) AXA
Equitable's current group annuity rates for payment of proceeds for the same
class of annuitants, or (iii) AXA Equitable's current group rates for a single
consideration immediate annuity for the same class of annuitants, whichever
rates would provide a larger benefit to the payee. If such current group annuity
rates are used, the Participant's certificate will be replaced by an AXA
Equitable supplemental certificate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Participant's Amount Applied will provide under
the Contract on the Full Cash Refund Annuity Form. The amounts of income
provided under the Annuity Benefit are based on 3% interest and the 1983
Mortality Table a and Projection Scale G. The amounts of income for ages and
annuity forms not shown in the tables will be calculated on the same basis.
AXA Equitable may change, by an amendment to the Contract, the monthly income
amounts contained in the Tables of Guaranteed Annuity Payments and the basis for
determining such amounts, for new Participants, upon advance notice to the
Contract Holder.
SECTION 4.04 PERIODIC DISTRIBUTION OPTION
The Participant may elect pursuant to Section 4.02 to receive the Account
Balance of each of the Participant's Accounts under the periodic distribution
option described in this Section 4.04, so long as such payments extend for a
period of three years or longer. Such option, subject to the conditions set
forth in the following subparagraphs and the provisions of Section 4.05,
provides either:
(a) PERIOD CERTAIN: A series of monthly, quarterly, semi-annual or annual
installment payments (as specified by the Participant) over a number of whole
years beginning as of the Participant's Retirement Date, such number of whole
years being the lesser of (i) the number of whole years designated by the
Participant before the Participant's Retirement Date and (ii) the number of
years equal to the greater of the life expectancy of the Participant and the
joint and last survivor life expectancy of the Participant and the Participant's
designated beneficiary as of the Participant's Retirement Date, rounded to the
next lower whole year. If permitted by AXA Equitable pursuant to its rules in
effect at the time, the life expectancy of the Participant and his/her spouse
may be recalculated once each year. The life expectancy of a beneficiary other
than the Participant's spouse may not be recalculated after distribution has
commenced.
301-10,001-2002 Page 20
(b) DOLLAR CERTAIN: A series of level monthly, quarterly, semi-annual or annual
installment payments (as specified by the Participant) in an amount specified by
the Participant such that the period of payments is projected, as of the date of
the first payment, to be a period of at least three years' duration.
CONDITIONS:
1. Payments made under the periodic distribution option will include
interests held by the Participant in the Guaranteed Rate Account. However,
AXA Equitable reserves the right to suspend distribution from the
Guaranteed Rate Accounts for such payments in its sole discretion.
2. The amount of each Period Certain monthly, quarterly, semi-annual or
annual installment elected in accordance with Section 4.04(a) above shall
be computed by AXA Equitable beginning on the date as of which such
installment payments commence, and thereafter, as of the first day of each
succeeding month, quarter, semi-annual or annual period. The amount of each
such periodic distribution payment shall be determined by dividing the sum
of the Account Balances of the Participant's Investment Accounts as of the
first day of each period by the number of periods remaining.
3. Each periodic distribution payment will be withdrawn from the
Participant's Accounts in proportion to the amount of the Participant's
interest in each such Investment Account immediately before such payment is
made.
4. The Participant Service Charge will continue to be withdrawn from the
Participant's Account in accordance with Section 3.08.
5. While periodic distributions are being made, the Participant may
transfer amounts among the Investment Accounts maintained for the
Participant pursuant to Section 3.01, except that transfers may not be made
from one Guaranteed Rate Account to another. A Guarantee Withdrawal Charge
pursuant to Section 1.05 will be deducted from such transfers.
6. The Participant may elect by advance written notice to have AXA
Equitable cease making periodic distribution payments and instead pay in a
single sum to the Participant the sum of the Account Balances of the
Participant's Investment Accounts. Upon making such payment AXA Equitable
will be released from any and all liability for payments with respect to
the contributions made for the Participant from which the payment arose.
7. No periodic distribution payment shall be of an amount greater than the
sum of the Account Balances of the Participant's Accounts immediately
before the due date of such payment.
8. If the Participant dies while periodic distribution payments are being
made, a single sum death benefit will be paid to the Participant's
beneficiary pursuant to Section 3.11.
301-10,001-2002 Page 21
SECTION 4.05 REQUIRED MINIMUM DISTRIBUTION RULES
This certificate under the Contract is subject to these "Required Minimum
Distribution" rules of Sections 408(b) and 401(a)(9) of the Code and the
Treasury Regulations which apply.
Part A of this Section 4.05 describes the Required Minimum Distributions to be
made during the Participant's lifetime. Part B of this Section 4.05 describes
the Required Minimum Distributions to be made after the Participant's death, if
the Participant dies before the entire interest under the Contract is
distributed to the Participant. The Required Minimum Distribution Rules may be
satisfied by either taking an annuity benefit or by taking withdrawals at least
annually from or with respect to the Participant's entire interest under this
Contract, all as subject to these rules.
If the Participant chooses annual withdrawals, Required Minimum Distribution
payments calculated for this certificate may be made from this certificate or
from another traditional individual retirement arrangement that the Participant
maintains, pursuant to Treasury Regulations. If the Participant does not
affirmatively request payment, we assume that the Participant is satisfying the
annual Required Minimum Distribution payments from another individual retirement
arrangement.
For purposes of both the "lifetime" Required Minimum Distribution rules and the
Required Minimum Distribution rules after death, the following definitions and
conditions apply:
The "entire interest" of the Participant under the Contract for purposes of
the Required Minimum Distribution Rules. The Participant's "entire
interest" under the Contract includes the amount of any outstanding
rollover, transfer and recharacterization under Q&As-7 and -8 of Treasury
Regulation Section 1.408-8 or any successor Regulation and the actuarial
value of any other benefits provided under the IRA, such as guaranteed
death benefits, as well as the value of the Participant's Accounts (less
applicable charges as determined by AXA Equitable).
Required Beginning Date. The Participant's "Required Beginning Dates" is
the first day of April following the calendar year in which the Participant
attains age 70-1/2. This is the latest date when the Participant's lifetime
Required Minimum Distribution payments with respect to this certificate can
start.
A. LIFETIME REQUIRED MINIMUM DISTRIBUTION RULES
Notwithstanding anything in the Contract or this certificate to the contrary,
the distribution of the Participant's interest under the Contract shall be made
in accordance with the requirements of Code Section 408(b)(3) and the Treasury
Regulations thereunder, the provisions of which are herein incorporated by
reference. If distributions are not made in the form of an annuity on an
irrevocable basis (except for acceleration), then distribution of the
Participant's interest under the Contract must satisfy the requirements of Code
Section 408(a)(6) and the Regulations thereunder, rather than the Required
Minimum Distribution rule provisions of this Section 4.05A and Section 4.05B.
The Participant's entire interest under the Contract will be distributed or
begin to be distributed no later than the Participant's Required Beginning Date
defined above. The Participant's entire interest may be distributed, over (a)
the Participant's life, or the lives of the Participant and his or
301-10,001-2002 Page 22
her designated beneficiary, or (b) a period certain not extending beyond the
Participant's life expectancy, or the joint and last survivor expectancy of the
Participant and his or her designated beneficiary.
These "lifetime" Required Minimum Distribution payments must be made in periodic
payments at intervals of no longer than 1 year and must be either nonincreasing
or they may increase only as provided in Q&As-1 and -4 of Section 1.401(a)(9)-6T
of the Temporary Treasury Regulations or any successor Regulation. In addition,
any distribution must satisfy the incidental benefit requirements specified in
Q&A-2 of Section 1.401(a)(9)-6T of the Temporary Treasury Regulation or any
successor Regulation.
The distribution periods described in the second preceding paragraph cannot
exceed the periods specified in Section 1.401(a)(9)-6T of the Temporary Treasury
Regulations or any successor Regulation.
The first lifetime Required Minimum Distribution payment can be made as late as
April 1 of the year following the year the Participant attains age 70-1/2 and
must be the payment that is required for one payment interval. The second
payment need not be made until the end of the next payment interval.
B. REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER DEATH
(a) Death On or After Lifetime Required Minimum Distributions Commence. If the
Participant dies on or after Lifetime Required Minimum Distributions commence,
the remaining portion of his or her interest will continue to be distributed
under the annuity benefit or other option chosen under the Contract. If a
distribution for a period certain in accordance with Section 4.04 had commenced
prior to the Participant's death then the distribution shall be made to the
Participant's beneficiary in accordance with the option selected.
(b) Death Before Lifetime Minimum Required Distributions Commence. If the
Participant dies before Lifetime Required Distributions commence, his or her
entire interest will be distributed at least as rapidly as follows:
(1) If the designated beneficiary is someone other than the Participant'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 Participant'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 Participant's death. In the
alternative, the beneficiary may elect to take distribution of the
Participant's entire interest in accordance with this Section 4.05B,
paragraph (b)(3) below.
(2) If the Participant's sole designated beneficiary is the Participant's
surviving spouse, the entire interest will be distributed, starting by the
end of the calendar year following the calendar year of the Participant's
death (or by the end of the calendar year in which the Participant would
have attained age 70-1/2, if later), over such surviving spouse's life. In
the alternative, the
301-10,001-2002 Page 23
beneficiary may elect to take distribution of the Participant's entire
interest in accordance with this Section 4.05B, paragraph (b)(3) below. If
the surviving spouse dies before 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 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 Participant's entire interest in
accordance with this Section 4.05B, 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 the 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 Participant's death (or of the surviving spouse's death
if the surviving spouse dies before distributions are required to begin
under this Section 4.05B, paragraph (b)(2) above).
(4) Life expectancy is determined using the 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. 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 (2) of this Section 4.05B and
reduced by 1 for each subsequent year.
(d) For purposes of paragraphs (a) and (b) of this Section 4.05B above, required
distributions are considered to commence on the Participant's Required Beginning
Date as defined above in this Section 4.05A 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 Temporary Treasury Regulation
Section 1.401(a)(9)-6T or any successor Regulation, then required distributions
are considered to commence on the annuity starting date.
(e) If the sole designated beneficiary is the Participant's surviving spouse,
the spouse may elect to treat the IRA as his or her own IRA. This election will
be deemed to have been made if such surviving spouse makes a contribution to the
IRA or fails to take required distributions as a beneficiary.
SECTION 4.06 PAYMENT OF BENEFITS
Misstatement of Age, Gender or Identity.
If a benefit payable under the Contract was based on information about the
Participant's age, gender or identity that is subsequently found to be
incorrect, such benefit will not be invalidated, but an adjustment on the basis
of the correct information will be made in the amount of the benefit
301-10,001-2002 Page 24
payments, or any amount used to provide the benefit, or any combination thereof.
Overpayments by AXA Equitable will be charged against and underpayments will be
added to any payments thereafter falling due under the Contract with respect to
the payee, with interest at the rate of 6% per year. The liability of AXA
Equitable with respect to a payee is limited to the correct information and the
actual amounts used to provide the benefits then in force with respect to the
payee under the Contract. With respect to any other statements required as a
condition of issuing a certificate to the Participant pursuant to Section 5.09,
except statements relating to the disability benefit in Section 3.11, the
certificate shall be incontestable after it has been in force during the
lifetime of the Participant for two years.
If AXA Equitable receives evidence satisfactory to it that (i) a payee entitled
to receive any payment under the Contract is physically or mentally incompetent
to receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed, AXA
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon to fully
discharged from all liability with respect thereto.
If an annuity form made available by AXA Equitable provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any, remaining payments, provided no person upon whose
life the income depends is surviving.
Evidence of each payee's survival must be furnished to AXA Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to AXA Equitable. AXA Equitable will require satisfactory evidence
of the age of any person upon whose life an annuity form depends.
301-10,001-2002 Page 25
TABLE OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
Annuity Benefit Payable On The Full Cash Refund Annuity Form
(Minimum Monthly Income Per $1,000 of Account Balance)
ANNUITY BENEFIT
AGE MALES FEMALES
60 $4.47 $4.12
61 4.55 4.19
62 4.65 4.27
63 4.74 4.36
64 4.85 4.45
65 4.95 4.54
66 5.07 4.64
67 5.18 4.74
68 5.31 4.85
69 5.44 4.97
70 5.58 5.09
Amounts applicable for ages or for annuity forms not shown will be calculated by
AXA Equitable on the same actuarial basis.
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PART V - GENERAL PROVISIONS
SECTION 5.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of AXA Equitable. The provisions of the Contract will be applied
separately with respect to the Participant. Nothing in the enrollment form
referred to in Section 1.07, the custodial agreement referred to in Section 5.08
nor any modification, amendment, or supplement to any such documents will in any
way be construed to enlarge, change, vary or in any other way affect the
obligations of AXA Equitable as expressly provided in the Contract.
The Contract may not be modified as to AXA Equitable, nor may any of AXA
Equitable's rights or requirements be waived, except in writing and by an
authorized officer of AXA Equitable. The Contract may be changed by amendment or
replacement upon agreement between the Contract Holder and AXA Equitable without
the consent of any other person provided that such change does not reduce any
Cash Value, Account Balance, Annuity Value or Annuity Benefit provided before
such change and provided that no rights, privileges or benefits which have
accrued to the Participant under the Contract may be reduced or forfeited except
by the express consent of the Participant.
The Contract and the certificates issued thereunder are established for the
exclusive benefit of the Participant and his or her beneficiaries.
SECTION 5.02 STATUTORY COMPLIANCE
AXA Equitable reserves the right to amend the Contract without the consent of
any other person in order to comply with applicable laws and regulations. Such
right shall include, but shall not be limited to, the right to conform the
Contract and any certificate to reflect changes in the Internal Revenue Code, or
in regulations or published rulings of the Internal Revenue Service, so that
each such certificate will continue to be an Annuity under the Internal Revenue
Code.
Any Annuity Benefit, Cash Value, Account Balance, or death or disability benefit
available under a certificate issued pursuant to the Contract shall not be less
than the minimum benefits required by any statute of the state in which the
certificate is delivered.
SECTION 5.03 ASSIGNMENTS AND NONTRANSFERABILITY
The interest of the Participant under the Contract is nonforfeitable.
This Contract is nontransferable by the Participant.
No interest of the Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
AXA Equitable.
301-10,001-2002 Page 27
No amount payable under the Contract may be assigned or encumbered by the payee
and, to the extent permitted by law, no such amount will in any way be subject
to any claim against such payee.
SECTION 5.04 BENEFICIARY
If the Participant so elects in writing, any amount that would otherwise be
payable to the designated beneficiary in a single sum may be applied to provide
an Annuity Benefit, on the form of annuity elected by the Participant with
respect to the designated beneficiary, subject to the provisions of Section 4.05
and to AXA Equitable's rules then in effect. If at the death of the Participant
there is no election in effect to apply the Death Benefit to provide an Annuity
Benefit, the designated beneficiary may make such an election subject to the
provisions of Section 4.05 and AXA Equitable's rules then in effect.
Unless otherwise specified in the designation, if the Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally. Unless the Participant specifically elects 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.
If upon the death of a person there is no designated beneficiary then living
entitled to receive any single sum payment or any remaining periodic payments
then becoming due to a beneficiary with respect to the Participant, AXA
Equitable shall pay such single sum payment or the commuted value of such
periodic payments to the first surviving class of the following classes of
successive preference beneficiaries: (a) the Participant's surviving spouse, (b)
the Participant's surviving children, as defined under applicable state law, (c)
the executors or administrators of the person upon whose death the payment
becomes due.
Any commuted value shall be determined on the basis of compound interest at the
rate determined by AXA Equitable as consistent with the actuarial basis used in
providing the annuity benefit.
SECTION 5.05 FUTURE PARTICIPANTS
AXA Equitable reserves the right in its sole discretion to curtail or prohibit
further enrollment of Participants under the Contract.
SECTION 5.06 DEFERMENT
Except as provided in this Section, payments by AXA Equitable from the
Participant's Account pursuant to the provisions of Sections 3.06, 3.10, and
3.11 will be made within seven days after receipt of a written request for such
surrender or withdrawal, or receipt of due proof of death or disability of the
Participant.
During any period when (i) the sale of securities or the determination of the
Unit Value is not reasonably practicable because an emergency, defined by the
Securities and Exchange Commission,
301-10,001-2002 Page 28
exists, or the New York Stock Exchange is closed or trading on such Exchange is
restricted, or (ii) the Securities and Exchange Commission may by order permit
postponement for the protection of persons having interests in the Separate
Account, AXA Equitable reserves the right:
(a) to defer payment of the Account Balance of the Participant's Investment
Account other than the Guaranteed Rate Account;
(b) to defer payment of any portion of a death or disability benefit arising
from an amount in the Participant's Investment Account other than the
Guaranteed Rate Account; or
(c) in the event of (a) above, to defer application of such amounts to provide
any Annuity Benefit permitted under the Contract.
Payments by AXA Equitable from the Guaranteed Rate Account pursuant to Section
3.06, Section 3.10 or Section 3.11 or any commuted payments arising from an
annuity pursuant to Section 4.05 may be deferred for up to six months after
receipt of a written request for such withdrawal or termination, receipt of due
proof of disability or death of the Participant, or receipt of due documentation
for such commutation. Interest at the applicable Guarantee Rate for the amount
withdrawn will be allowed on any payment deferred for 30 days or more.
SECTION 5.07 ANNUAL STATEMENT
As soon as practicable after the end of each calendar year AXA Equitable,
provided an Account is being maintained for the Participant at the end of such
calendar year, will furnish the Participant with a statement showing as of a
specified recent date (1) the total number of Units credited to each Investment
Account other than the Guaranteed Rate Account, (2) the Unit Value of such
Investment Accounts, (3) the Account Balance of each Investment Account, (4) the
sum of the Account Balances of each Investment Account, and (5) the Cash Values
of the Guaranteed Rate Account.
AXA Equitable will furnish annual calendar year reports concerning the status of
this IRA and such information concerning required minimum distributions as is
prescribed by the Commissioner of Internal Revenue.
SECTION 5.08 CONTRACT HOLDER RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any plan, for payments to the Accounts, for any payments, distributions or
duties hereunder. AXA Equitable will deal with the Contract Holder in accordance
with the terms and conditions of the custodial agreement pursuant to which the
Contract Holder agreed to act as such and with the Contract and in such manner
as the Contract Holder and AXA Equitable may agree, without the consent of any
other person.
SECTION 5.09 CERTIFICATE
AXA Equitable will issue to the Participant an individual certificate setting
forth a statement in substance of the benefits to which the Participant is
entitled under the Contract. Nothing in the Contract will invalidate or impair
any rights granted to the Participant in such certificates or under the New York
Insurance Law.
301-10,001-2002 Page 29
SECTION 5.10 DISQUALIFICATION
In the event that an annuity purchased hereunder with respect to the Participant
fails to qualify as an Annuity as described in Section 1.00, AXA Equitable shall
have the right, upon receiving notice of such fact before the Retirement Date,
to terminate participation with respect to the Participant under the contract
and pay to the Participant the sum of the Cash Values of the Participant's
Guaranteed Rate Account and the Account Balances of the Participant's other
Investment Accounts less a deduction for any applicable Participant Service
Charge and for the appropriate part attributable to the Participant of any
Federal income tax payable by AXA Equitable which would not have been payable if
the Participant had any annuity under the Contract.
301-10,001-2002 Page 30
