GROUP ANNUITY CONTRACT NO.: [AC 0000]
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CONTRACT HOLDER: [UNITED STATES TRUST COMPANY OF NEW YORK]
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REGISTER DATE: [September 1, 1994]
ISSUED IN: [New York]
This Contract is issued in consideration of payment of the Contributions under
the terms of this Contract.
The terms of this Contract, which include the following pages, are agreed to by
the Contract Holder and The Equitable Life Assurance Society of the United
States ("Equitable").
FOR THE CONTRACT HOLDER FOR EQUITABLE
Title By /s/ Xxxxxx X. Xxxxxx
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Chairman and Chief Executive Officer
By By /s/ Xxxxx X. Xxxxxx
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President and Chief Operating Officer
Dated By /s/ Xxxxx X. Xxxxxx
---------------------- ------------------------------------
Vice President and Secretary
At [New York, New York] By
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Assistant Registrar
Date of Issue
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THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN PART II OF THIS CONTRACT.
No. 1050-94IC INTEREST RATE GUARANTEE -- NON-PARTICIPATING
TABLE OF CONTENTS
Page
Part I - DEFINITIONS 3
Part II - INVESTMENT OPTIONS 6
Part III - CONTRIBUTIONS AND ALLOCATIONS 10
Part IV - TRANSFERS AMONG INVESTMENT OPTIONS 11
Part V - WITHDRAWALS AND TERMINATION 12
Part VI - DEATH BENEFITS 13
Part VII - ANNUITY BENEFITS 14
Part VIII - CHARGES 17
Part IX - GENERAL PROVISIONS 20
TABLE OF GUARANTEED ANNUITY PAYMENTS 22
APPENDIX A 00
XXXXXXXX X 28
APPENDIX C 30
APPENDIX D 33
No. 1050-94IC Page 2
PART I - DEFINITIONS
SECTION 1.01 ANNUITANT
"Annuitant" means the individual shown as such in the Certificate who has been
enrolled under the Contract according to Equitable's enrollment procedures, or
any successor annuitant. If a Certificate uses the term "Participant" to refer
to the Annuitant, then any reference in this Contract to the Annuitant will be
deemed to mean the "Participant" shown in such Certificate.
SECTION 1.02 ANNUITY ACCOUNT VALUE
"Annuity Account Value" means the sum of the amounts held with respect to a
Certificate in the Investment Options.
SECTION 1.03 ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by Equitable pursuant to Part VII of
this Contract.
SECTION 1.04 ANNUITY COMMENCEMENT DATE
"Annuity Commencement Date" means the date on which annuity payments are to
commence pursuant to Section 7.03. The Annuity Commencement Date is shown on the
Certificate and is subject to change as described in Section 7.03.
SECTION 1.05 BUSINESS DAY
A "Business Day" is any day on which Equitable is open and the New York Stock
Exchange is open for trading, or any other day specified in the Certificate.
Equitable's Business Day ends at 4:00 p.m., Eastern Time, or such other time as
Equitable designates in writing to each Owner.
SECTION 1.06 CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value, less any
charges that apply as described in Part VIII and any charges that may apply as
described in any applicable Appendix hereto.
SECTION 1.07 CERTIFICATE
"Certificate" means the certificate which will be issued by Equitable with
respect to each Annuitant, setting forth the benefits and the rights which the
Owner may exercise. The Certificate will also reflect the terms of this Contract
which may differ based on the type of Certificate issued. Some provisions of
this Contract refer to specific requirements related to certain types of
retirement programs, and the Certificate issued with respect to such types of
programs will reflect said provisions; to distinguish among Certificate versions
which may thus be issued under this Contract, the following terms are sometimes
used herein. (These terms represent the Certificate forms which may be available
as of the
No. 1050-94IC Page 3
Register Date; variations of such form and other forms may be made available by
Equitable at any time on or after the Register Date.)
"XXX Certificate," which applies to a Certificate issued as an
individual retirement annuity meeting the requirements of Section
[408(b)] of the Code;
"Non-Qualified Certificate," which applies to a Certificate which is an
annuity issued other than pursuant to a qualified plan.
SECTION 1.08 CODE
"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.
SECTION 1.09 CONTRACT
"Contract" means this contract including each Appendix, if any, attached hereto.
SECTION 1.10 CONTRACT DATE
"Contract Date" means, with respect to a Certificate, the earlier of (a) the
date on which the Annuitant is enrolled under the Contract, according to
Equitable's enrollment procedures, and (b) the date on which the Annuitant was
enrolled under a Prior Contract, if applicable.
SECTION 1.11 CONTRACT YEAR
"Contract Year" means, with respect to a Certificate, the twelve month period
starting on (i) the Contract Date and (ii) each anniversary of the Contract
Date, unless Equitable agrees to another period.
SECTION 1.12 CONTRIBUTION
"Contribution" means a payment made to Equitable as described in Section 3.01.
SECTION 1.13 EMPLOYER
"Employer" means, if applicable, an employer defined in an Appendix hereto.
SECTION 1.14 GUARANTEED INTEREST RATE
"Guaranteed Interest Rate" means the effective annual rate(s) at which interest
accrues on amounts in the Guaranteed Interest Account as described in Section
2.01. (If a Certificate uses the term "Guaranteed Rate Account" to refer to the
Guaranteed Interest Account, then any reference in this Contract to the
Guaranteed Interest Account will be deemed to mean the "Guaranteed Rate Account"
described in such Certificate.)
No. 1050-94IC Page 4
SECTION 1.15 INVESTMENT FUND
"Investment Fund" means a sub-fund of a Separate Account. An Investment Fund may
invest its assets in a separate class (or series) or shares of a specified trust
or investment company where each class (or series) represents a separate
portfolio in the specified trust or investment company.
SECTION 1.16 INVESTMENT OPTION
"Investment Option" means the Guaranteed Interest Account, a Separate Account,
or an Investment Fund of a Separate Account or each Guarantee Period in the
Guaranteed Period Account (Separate Account No. 46).
SECTION 1.17 OWNER
"Owner" means the person or entity which owns a Certificate on behalf of the
Annuitant, as named on the Certificate, or any successor owner.
SECTION 1.18 PLAN
"Plan" means, if applicable, the annuity program sponsored by the Employer of
the Annuitant and as may be defined in any Appendix hereto.
SECTION 1.19 PRIOR CONTRACT
"Prior Contract" means another contract or certificate issued by Equitable and
from which the Owner and Equitable have agreed to transfer amounts with respect
to the Annuitant to this Contract.
SECTION 1.20 PROCESSING DATE
"Processing Date" means the day(s) Equitable deducts charges from the Annuity
Account Value. The Certificate shows how often a Processing Date will occur.
SECTION 1.21 PROCESSING OFFICE
"Processing Office" means the Equitable administrative office specified in the
Certificate, or such other location as Equitable may designate upon written
notice to each Owner.
SECTION 1.22 SEPARATE ACCOUNT
"Separate Account" means any of the Separate Accounts (except Equitable's
Separate Account No. 46) described or referred to in Sections 2.02 and 2.05.
SECTION 1.23 TRANSACTION DATE
The Transaction Date is the Business Day Equitable receives at the Processing
Office a Contribution or a transaction request providing the information
Equitable needs. Transaction requests must be in a form acceptable to Equitable.
No. 1050-94IC Page 5
PART II - INVESTMENT OPTIONS
SECTION 2.01 GUARANTEED INTEREST ACCOUNT
Any amount held in the Guaranteed Interest Account becomes part of Equitable's
general assets, which support the guarantees of this Contract as well as other
obligations of Equitable.
The amount in such Account at any time with respect to a Certificate is equal to
the sum of:
o all amounts that have been allocated or transferred to such Account,
plus
o the amount of any interest credited, less
o all amounts that have been withdrawn (including charges) or
transferred from such Account.
Equitable will credit the amount held in the Guaranteed Interest Account with
interest at effective annual rates that Equitable determines. Equitable will
also determine a minimum Guaranteed Interest Rate that will remain in effect
throughout a stated twelve-month period or a calendar year. The Certificate will
describe the initial Rate(s) to apply for a stated period or periods starting
with the Contract Date.
Equitable guarantees that any rate so determined after a Contract Date will
never be less than the minimum rate shown in the Certificate.
SECTION 2.02 SEPARATE ACCOUNT
Equitable has established the Separate Account(s) and maintains such Account(s)
in accordance with the laws of New York State. Income, realized and unrealized
gains and losses from the assets of the Separate Account(s) are credited to or
charged against it without regard to Equitable's other income, gains or losses.
Assets are placed in the Separate Account(s) to support this Contract and other
variable annuity contracts and certificates. Assets may be placed in the
Separate Account(s) for other purposes, but not to support contracts or policies
other than variable annuities and variable life insurance.
The Certificate sets forth the Separate Account(s) available under this
Contract. A Separate Account may be subdivided into Investment Funds.
The assets of a Separate Account are Equitable's property. The portion of such
assets equal to the reserves and other contract liabilities will not be
chargeable with liabilities which arise out of any other business Equitable
conducts. Equitable may transfer assets of a Separate Account in excess of the
reserves and other liabilities with respect to such Account to another Separate
Account or to Equitable's general account.
No. 1050-94IC Page 6
Equitable may, in its discretion, invest Separate Account assets in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including counsel in its employ) as to what investments
Equitable may make as law permits.
SECTION 2.03 SEPARATE ACCOUNT ACCUMULATION UNITS AND UNIT VALUES
The amount in a Separate Account with respect to an Annuitant at any time is
equal to the number of Accumulation Units in that Account with respect to the
Annuitant multiplied by the Accumulation Unit Value which applies at that time.
For the purposes of this Contract, "Accumulation Unit" means a unit which is
purchased in a Separate Account, and "Accumulation Unit Value" means the dollar
value of each Accumulation Unit in a Separate Account on a given date. (If
Investment Funds apply as described in Section 2.02, then the terms of this
Section 2.03 apply separately to each Fund, unless otherwise stated.)
Amounts allocated or transferred to a Separate Account are used to purchase
Accumulation Units of that Account. Units are redeemed when amounts are
deducted, transferred or withdrawn.
The number of Accumulation Units in a Separate Account at any time is equal to
the number of Accumulation Units purchased minus the number of Units redeemed in
that Account up to that time. The number of Accumulation Units purchased or
redeemed in a transaction is equal to the dollar amount of the transaction
divided by the Account's Accumulation Unit Value for that Transaction Date.
Equitable determines Accumulation Unit Values for each Separate Account for each
Valuation Period. A "Valuation Period" is each Business Day together with any
consecutive preceding non-business days. For example, for each Monday which is a
Business Day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
Unless the following paragraph applies, the Accumulation Unit Value for a
Separate Account for any Valuation Period is equal to the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the ratio of
(i) the value of the Separate Account at the close of business at the end of the
current Valuation Period, before any amounts are allocated to or withdrawn from
the Separate Account in that Period, to (ii) the value of the Separate Account
at the close of business at the end of the preceding Valuation Period, after all
allocations and withdrawals were made for that Period. For this purpose, "value
of the Separate Account" means the market value or, where there is no readily
available market, the fair value of the assets allocated to the Separate
Account, as determined in accordance with Equitable's rules, accepted accounting
practices, and applicable laws and regulations.
To the extent the Separate Account invests in Investment Funds, and the assets
of the Funds are invested in a class or series of shares of a specified trust or
investment company, then the Accumulation Unit Value of an Investment Fund for
any Valuation Period is equal to the Accumulation Unit Value for that Fund on
the immediately
No. 1050-94IC Page 7
preceding Valuation Period multiplied by the Net Investment Factor of that Fund
for the current Valuation Period. The Net Investment Factor for a Valuation
Period is (a) divided by (b) minus (c), where
(a) is the value of the Investment Fund's shares of the related
portfolio of the specified trust or investment company at the
end of the Valuation Period (before taking into account any
amounts allocated to or withdrawn from the Investment Fund for
the Valuation Period and after deduction of investment
advisory fees and direct operating expenses of the specified
trust or investment company; for this purpose, Equitable uses
the share value reported to Equitable by the specified trust
or investment company);
(b) is the value of the Investment Fund's shares of the related
portfolio of the specified trust or investment company at the
end of the preceding Valuation Period (taking into account any
amounts allocated or withdrawn for that Valuation Period);
(c) is the daily Separate Account charges (see Section 8.04) for
the expenses and risks of the Contract, times the number of
calendar days in the Valuation Period, plus any charge for
taxes or amounts set aside as a reserve for taxes.
SECTION 2.04 AVAILABILITY OF INVESTMENT OPTIONS
Section 3.01 of this Contract describes the allocation of Contributions among
Investment Options pursuant to the Owner's election. Such election is subject to
the following:
(a) If the Contributions made under this Contract with respect to a
Certificate are made pursuant to the terms of a Plan, then the
availability of Investment Options may be subject to the terms of
such Plan, as reported to Equitable by the Owner.
(b) Equitable reserves the right to limit the number of Options which
an Owner may elect.
The Certificate will list which Options are available.
SECTION 2.05 CHANGES WITH RESPECT TO SEPARATE ACCOUNTS
In addition to the right reserved pursuant to subsection (b) of Section 2.04,
Equitable reserves the right, subject to compliance with applicable law,
including approval of Owners if required:
(a) to add Investment Funds (or sub-funds of Investment Funds) to, or
to remove Investment Funds (or sub-funds) from, a Separate
Account, or to add or remove Separate Accounts;
(b) to combine any two or more Investment Funds or sub-funds thereof;
No. 1050-94IC Page 8
(c) to transfer the assets Equitable determines to be the share of the
class of contracts to which this Contract belongs from any
Separate Account or Investment Fund to another Separate Account or
Investment Fund;
(d) to operate the Separate Account or any Investment Fund as a
management investment company under the Investment Company Act of
1940, in which case charges and expenses that otherwise would be
assessed against an underlying Mutual Fund would be assessed
against the Separate Account;
(e) to operate the Separate Account or any Investment Fund as a unit
investment trust under the Investment Company Act of 1940;
(f) to deregister the Separate Account or any Investment Fund under
the Investment Company Act of 1940, provided that such action
conforms with the requirements of applicable law;
(g) to restrict or eliminate any voting rights as to the Separate
Account;
(h) to cause one or more Separate Accounts or Investment Funds to
invest some or all of their assets in one or more other trusts or
investment companies.
If the exercise of these rights results in a material change in the underlying
investments of a Separate Account, the Contract Holder and each Owner will be
notified of such exercise, as required by law.
A Separate Account or Investment Fund which may be added by Equitable as
described above may be one with respect to which (i) there may be periods during
which contributions are restricted pursuant to the maturity terms of such
Account, (ii) amounts therein may be automatically liquidated according to the
investment policy of the Account, and (iii) investments therein may mature.
Equitable will have the right to reallocate amounts arising from liquidation or
maturity according to the Owner's allocation instructions then in effect unless
the Owner specifies other instructions with respect to said amounts. If no such
allocation instructions have been made, the reallocation will be made to a
designated Investment Option, or to the next established Account or Fund of the
same type as described in this paragraph, if applicable, as specified in the
Certificate.
No. 1050-94IC Page 9
PART III - CONTRIBUTIONS AND ALLOCATIONS
SECTION 3.01 CONTRIBUTIONS, ALLOCATIONS
Contributions will be remitted on behalf of an Annuitant from the Owner (who may
also be the Annuitant, if so stated in the Certificate.)
The Owner will elect which Investment Options will be available under the
Certificate issued to the Owner, subject to the terms of Section 2.04. Once this
election is made, the Owner may only allocate Contributions to, or transfer
among, these Options. The Owner may add or subtract Options after the
Certificate is issued by sending Equitable a written request, but Equitable has
the right to decline such request.
The Owner will also elect how to allocate Contributions among the Options
elected. If the Owner is not the Annuitant, the Owner may delegate to the
Annuitant authority to allocate Contributions. The Owner need not allocate
Contributions to each Option elected. The Owner may change the allocation
instruction at any time by sending Equitable the proper form. Allocation
percentages must be in whole numbers (no fractions) and must equal 100%.
Each Contribution is allocated (after deduction of any charges that may apply)
in accordance with the allocation instructions in effect on the Transaction
Date. Contributions made to a Separate Account purchase Accumulation Units in
that Account, using the Accumulation Unit Value for that Transaction Date.
SECTION 3.02 LIMITS ON CONTRIBUTIONS
Equitable reserves the right not to accept any Contribution which is less than
the amount shown in the Certificate. The applicable Appendix to this Contract
indicates other minimum and maximum Contribution requirements which may apply.
Equitable also reserves the right, upon advance notice to the Contract Holder
and each Owner, to
(a) change such requirements to apply to Contributions made after
the date of such change, and
(b) discontinue acceptance of Contributions under this Contract
(i) with respect to all Owners or (ii) with respect to all
Owners to whom the same type of Certificate applies (as
described in Section 1.07).
No. 1050-94IC Page 10
PART IV - TRANSFERS AMONG INVESTMENT OPTIONS
SECTION 4.01 TRANSFER REQUESTS
The Owner may upon request transfer all or part of the amount held with respect
to a Certificate in an Investment Option to one or more of the other Options. A
transfer request must be made in a form acceptable to Equitable. All transfers
will be made on the Transaction Date and will be subject to the terms of Section
4.02 and to Equitable's rules in effect at the time of transfer. With respect to
a Separate Account, the transfers will be made at the Accumulation Unit Value
for that Transaction Date.
SECTION 4.02 TRANSFER RULES
The transfer rules which apply are stated in the Certificate. A transfer request
will not be accepted by Equitable if it involves less than the minimum amount,
if any, stated in the Certificate (unless the Annuity Account Value is less than
such amount). Equitable has the right to change transfer rules. Any change will
be made upon advance notice to the Contract Holder and to each Owner.
The Investment Funds may consist of funds which are classified as "Type A"
Investment Options or "Type B" Investment Options or any other type which may be
specified in the Certificate, as Equitable designates in its discretion for
purposes of the transfer rules described in the Certificate. The Certificate
will specify whether such Investment Options are designated Type A or Type B, or
another type as well as the minimum or maximum limits on transfers which apply.
No. 1050-94IC Page 11
PART V - WITHDRAWALS AND TERMINATION
SECTION 5.01 WITHDRAWALS
Unless otherwise stated in the Certificate, the Owner may make a request to
Equitable, pursuant to Equitable's procedures then in effect, for a withdrawal
from the Investment Options before the Annuity Commencement Date and while the
Annuitant is alive.
On the Transaction Date, Equitable will pay the amount of the withdrawal
requested by the Owner or, if less, the Cash Value. The amount to be paid plus
any Withdrawal Charge applicable pursuant to Section 8.01 will be withdrawn on a
pro-rata basis from the amounts held with respect to the Certificate in the
Investment Options, unless the Owner elects otherwise or unless otherwise stated
in the Certificate.
A withdrawal request will not be accepted by Equitable if it involves less than
the minimum amount, if any, stated in the Certificate (unless the Annuity
Account Value is less than such amount). Further conditions or restrictions on
distributions may apply if stated in the Certificate.
SECTION 5.02 TERMINATION
The Certificate will terminate if one or more of the following events occurs,
unless otherwise specified in the Certificate:
(a) If a withdrawal made under Section 5.01 would result in an Annuity
Account Value of an amount less than the minimum amount stated in the
Certificate, Equitable will so advise the Owner and reserve the right
to pay such Value to the Owner, in which case the Certificate will be
terminated.
(b) Before an Annuitant's Annuity Commencement Date, Equitable has the
right to pay the Cash Value and terminate the Certificate if no
Contributions are made during the last three completed Contract Years
(or such other number of years stated in the Certificate and permitted
under applicable law), and the Annuity Account Value is less than the
amount described in subsection (a) above.
(c) Equitable also has the right to terminate the Certificate if no
Contributions have been made with respect to the Annuitant within 120
days of the Contract Date.
No. 1050-94IC Page 12
PART VI - DEATH BENEFITS
SECTION 6.01 DEATH BENEFIT
Upon receipt by Equitable of due proof that the Annuitant has died prior to the
Annuity Commencement Date, Equitable will pay a death benefit to the beneficiary
named under Section 6.02. Payment of the death benefit is subject to the terms
of Section 6.02 and any special rules which may apply as stated in an Appendix
hereto and the Certificate.
The amount of the death benefit under this Contract will be determined by
Equitable as specified in the Certificate.
The death benefit will be paid as an Annuity Benefit or in a single sum, as
described in Section 6.02.
SECTION 6.02 BENEFICIARY
The Owner will give Equitable the name of the beneficiary who is to receive any
death benefit payable on the Annuitant's death. The Owner may change the
beneficiary from time to time during the Annuitant's lifetime and while coverage
under this Contract is in force. Any such change must be made in writing in a
form Equitable accepts. A change will, upon receipt at the Processing Office,
take effect as of the date the written form is executed, whether or not the
Owner is living on the date of receipt. Equitable will not be liable as to any
payments it made before it receives any such change.
The Owner may name one or more persons to be primary beneficiary on the
Annuitant's death and one or more persons to be successor beneficiary if the
primary beneficiary dies before the Annuitant. Unless the Owner directs
otherwise, if the Owner has named two or more persons 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 the survivor.
Any part of a death benefit payable as described in Section 6.01 for which there
is no named beneficiary living at the Annuitant's death will be payable in a
single sum to the Annuitant's children who survive the Annuitant, in equal
shares, or should none survive or should there be none, then to the Annuitant's
estate.
If the Owner so elects in writing, any amount that would otherwise be payable to
a beneficiary in a single sum may be applied to provide an Annuity Benefit, on
the form of annuity elected by the Owner, subject to Equitable's rules then in
effect. If at the Annuitant's death there is no election in effect, the
beneficiary may make such an election. In the absence of any election by either
the Owner or the beneficiary, Equitable will pay the death benefit in a single
sum.
The naming of a beneficiary is subject to the terms of the Plan, if applicable,
including any terms requiring spousal consent.
No. 1050-94IC Page 13
PART VII ANNUITY BENEFITS
SECTION 7.01 ANNUITY BENEFIT
Payments under an Annuity Benefit will be made monthly. An election may be made
by the Owner instead to have the Annuity Benefit paid at other intervals, such
as every three months, six months, or twelve months, instead of monthly, subject
to Equitable's rules at the time of election or as stated in the Certificate.
This election may be made at the time the Annuity Benefit form as described in
Section 7.02 is elected; in that event, all references in this Contract to
monthly payments will, with respect to the Annuity Benefit of such an Annuitant
to whom the election applies, be deemed to mean payments at the frequency
elected.
SECTION 7.02 ELECTION OF ANNUITY BENEFITS
As of the Annuitant's Annuity Commencement Date, provided the Annuitant is then
living, the Annuity Account Value will be applied to provide the Normal Form of
Annuity Benefit (described in Section 7.04). However, the Owner may instead
elect (i) to have the Cash Value paid in a single sum, (ii) to apply the Annuity
Account Value or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 7.05 to provide an Annuity Benefit of any form offered by
Equitable or one of Equitable's subsidiary life insurance companies, or (iii) to
apply the Cash Value to provide any other form of benefit payment offered by
Equitable, subject to Equitable's rules then in effect and applicable laws and
regulations. At the time an Annuity Benefit is purchased, Equitable will issue a
supplementary contract which reflects the Annuity Benefit terms.
Equitable will provide notice and election forms to the Owner within six months
before the Annuity Commencement Date.
Equitable will have the right to require the Owner to furnish any information
Equitable needs to provide 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 7.03 COMMENCEMENT OF ANNUITY BENEFITS
Before the Annuity Commencement Date, the Owner may elect to change such Date.
The changed Date may be any date after the election is filed (other than the
29th, 30th, or 31st day of any month). Any election for such change must be made
in writing by the Owner and will not take effect until received and accepted by
Equitable at its Processing Office.
However, unless provided otherwise in any Appendix of this Contract, no Annuity
Commencement Date will be later than the first day of the month which follows
the date the Annuitant attains the "maximum maturity age" or, if later, the
tenth anniversary of the Contract Date. The current maximum maturity age is
specified in the Certificate; such age may be changed by Equitable in
conformance with applicable law.
No. 1050-94IC Page 14
SECTION 7.04 ANNUITY BENEFIT FORMS
The "Normal Form" of Annuity Benefit is an Annuity Benefit payable on the
Life-Period Certain Annuity Form described below, unless another form is to
apply pursuant to the terms of the Plan, if applicable, the requirements of the
Employee Retirement Income Security Act of 1974 (ERISA), as amended, or any
other law that applies. The Certificate will specify the Normal Form which
applies. Equitable may offer other annuity forms as available from Equitable or
from one of Equitable's affiliated or subsidiary life insurance companies. Such
a form may include the Joint and Survivor Life Annuity Form providing monthly
payments while either of two persons upon whose lives such payments depend is
living. The monthly amount to be continued when only one of the persons is
living will be equal to a percentage, as elected, of the monthly amount that was
paid while both were living.
The Life-Period Certain Annuity is an annuity payable during the lifetime of the
person upon whose life the payments depend, but with 10 years of payments
guaranteed (10 years certain period). That is, if the Annuitant dies before the
certain period has ended, payments will continue to the beneficiary named to
receive such payments for the balance of the certain period.
SECTION 7.05 AMOUNT OF ANNUITY BENEFITS
If the Owner elects pursuant to Section 7.02 to have an Annuity Benefit paid in
lieu of the Cash Value, the amount applied to provide the Annuity Benefit will,
unless otherwise specified in the Certificate or required by applicable laws and
regulations, be (i) the Annuity Account Value if the annuity form elected
provides payments for a person's remaining lifetime or (ii) the Cash Value if
the annuity form elected does not provide such lifetime payments.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any taxes which apply on annuity purchase payments. If Equitable has previously
deducted charges for applicable taxes from Contributions, Equitable will not
again deduct charges for the same taxes before an Annuity Benefit is provided.
The balance will be used to purchase the Annuity Benefit on the basis of either
(i) the Tables of Guaranteed Annuity Payments or (ii) Equitable's then current
individual annuity rates, whichever rates would provide a larger benefit with
respect to the payee.
SECTION 7.06 CONDITIONS
Equitable may require proof acceptable to it that the person on whose life a
benefit payment is based is alive when each payment is due. Equitable will
require proof of the age of any person on whose life an Annuity Benefit is
based.
If a benefit was based on information that is later found not to be correct,
such benefit will be adjusted on the basis of the correct information. The
adjustment will be made in the number or amount of the benefit payments, or any
amount used to provide the benefit, or any combination. Overpayments by
Equitable will be charged against future payments. Underpayments will be added
to future payments. Equitable's liability is limited to the correct information
and the actual amounts used to provide the benefits.
No. 1050-94IC Page 15
If the age (or sex, if applicable as stated in the Tables of Guaranteed Annuity
Payments) of any person upon whose life an Annuity Benefit depends has been
misstated, any benefits will be those which would have been purchased at the
correct age (or sex). Any overpayments or underpayments made by Equitable will
be charged or credited with interest at (a) the rate shown in the Certificate or
(b) the then current Guaranteed Interest Rate; Equitable will determine which
rate will apply, on a uniform and nondiscriminatory manner, for similar
Certificates. Such interest will be deducted from or added to future payments.
If Equitable receives proof satisfactory to it that (i) a payee entitled to
receive any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or 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, Equitable may make the payments to such other person or
institution. In the case of a minor, the payments will not exceed [$200] or such
other amount shown in the Certificate. Equitable will have no further liability
with respect to the payments so made.
If the amount to be applied hereunder is less than [$2,000] or would result in
an initial payment of less than [$20], Equitable may pay the amount to the payee
in a single sum instead of applying it under the annuity form elected.
SECTION 7.07 CHANGES
Equitable reserves the right, upon advance notice to the Contract Holder and
each Owner, to change at any time on and after the fifth anniversary of the
Register Date of this Contract, at intervals of not less than five years, the
actuarial basis used in the Tables of Guaranteed Annuity Payments; however, no
such change will apply to (A) any Annuity Benefit provided before the change or
(B) Contributions made before such change which are applied to provide an
Annuity Benefit.
No. 1050-94IC Page 16
PART VIII - CHARGES
SECTION 8.01 WITHDRAWAL CHARGES
The amount of the Withdrawal Charge, if applicable, will be specified in the
Certificate issued with respect to the Annuitant. Equitable reserves the right
to change such Charge with respect to future Contributions, subject to any
maximum amount specified in the Certificate.
If specified in the Certificate, a "Free Corridor Amount" will apply as follows:
"Free Corridor Amount" means an amount equal to a percentage of the
Annuity Account Value, minus the total of all prior withdrawals (and
associated Withdrawal Charges) made as described in Section 5.01 in the
current Contract Year. Such percentage for this purpose will be (a)
determined by Equitable with respect to each Annuitant on a uniform and
nondiscriminatory basis and (b) specified in the Certificate; it will be
any percentage between [0% and 30%] if so provided in the Certificate.
If the amount of a withdrawal made under Part V is more than the Free
Corridor Amount (defined above), Equitable will (a) first withdraw from
the Investment Options, on the basis described in Section 5.01, an amount
equal to the Free Corridor Amount, and (b) then withdraw from the
Investment Options an amount equal to the excess of the amount requested
over the Free Corridor Amount, plus a Withdrawal Charge as specified in
the Certificate.
For purposes of this Section, amounts withdrawn up to the Free Corridor
Amount will not be deemed a withdrawal of any Contributions. Equitable
reserves the right to carry forward the Free Corridor Amount into a future
Contract Year, if not used in any Year with respect to an Annuitant, as
specified in the Certificate.
Any withdrawals in excess of the Free Corridor Amount will be deemed
withdrawals of Contributions in the reverse order in which they were made;
that is, Contributions will be withdrawn on a last-in, first-out basis.
However, Equitable reserves the right instead to deem Contributions
withdrawn on a first-in, first-out basis. If Equitable exercises this
right, it will do so with respect to Certificates for which the Contract
Date occurs after the effective date of the change, and the first-in,
first-out basis will be specified in the Certificate.
In addition, the Annuitant's years of participation under the Prior Contract, if
applicable, will be included for purposes of determining the Withdrawal Charge,
if so specified in the Certificate in accordance with Equitable's rules then in
effect.
If specified in the Certificate, Equitable reserves the right to reduce or waive
the Withdrawal Charge in such circumstances as it determines. The Certificate
issued with respect to the Annuitant will specify the circumstances, if any, by
which a waiver will apply.
No. 1050-94IC Page 17
Moreover, the Withdrawal Charge will be reduced if needed in order to comply
with any applicable state or federal law.
SECTION 8.02 ADMINISTRATIVE AND OTHER CHARGES DEDUCTED FROM ANNUITY ACCOUNT
VALUE
As of each Processing Date, Equitable will deduct Administrative Charges, a
charge for the minimum guaranteed death benefit, if applicable, or other Charges
related to the administration and/or distribution of certificates under this
Contract from the Annuity Account Value. Such Charges are specified in the
Certificate.
If specified in the Certificate, the Charges will be deducted in full or
prorated for the Contract Year, or portion thereof, in which the Contract Date
occurs or in which the Annuity Account Value is withdrawn or applied to provide
an Annuity Benefit or death benefit. If so, the Charges will be deducted when
withdrawn or so applied.
The amount of any such Charge for any Contract Year will in no event exceed any
maximum amount stated in the Certificate subject to the maximum amount permitted
under any applicable law.
Equitable reserves the right to reduce or waive said Charges in such
circumstances as it determines.
SECTION 8.03 TRANSFER CHARGES
Equitable reserves the right to impose a charge with respect to any transfer
among Investment Options after the number of free transfers, as specified in the
Certificate, made on behalf of an Annuitant. The amount of such charge will be
set forth in a notice from Equitable to the Contract Holder and each Owner and
in no event will exceed any maximum amount stated in the Certificate.
SECTION 8.04 DAILY SEPARATE ACCOUNT CHARGE
Assets of the Separate Account will be subject to a daily asset charge. This
daily asset charge is for mortality risk, expenses and expense risk which
Equitable assumes, as well as for financial accounting and death benefits if
specified in the Certificate. The charge will be made pursuant to item (c) of
"Net Investment Factor" as defined in Section 2.03. Such charge will be applied
after any deductions to provide for taxes. It will be at a rate not to exceed
the maximum annual rate stated in the Certificate. Equitable reserves the right
to charge less on a current basis; the actual charge to apply will be specified
in the Certificate.
SECTION 8.05 CHANGES
In addition to the right of Equitable to reduce or waive charges as described in
this Part VIII, Equitable reserves the right, upon advance notice to the
Contract Holder and each Owner, to increase the amount of any charge stated in
the Certificate issued with respect to each Annuitant, subject to (a) any
maximum amount provided in this Part VIII and (b)
No. 1050-94IC Page 18
with respect to Withdrawal Charges and Administrative or other Charges deducted
from the Annuity Account Value, the application of any increase only to
Contributions made after the date of the change.
Equitable also reserves the right, upon advance written notice to the Contract
Holder, to increase the maximum amount of any charge provided in this Part VIII
or the Certificate, only with respect to Annuitants whose Contract Date occurs
after the effective date of the increase, but not to exceed the maximum amount
then permitted by any law that applies or, with respect to the daily Separate
Account charge described in Section 8.04, by the Securities and Exchange
Commission.
No. 1050-94IC Page 19
PART IX - GENERAL PROVISIONS
SECTION 9.01 CONTRACT
This Contract constitutes the entire contract between the parties and will
govern with respect to the rights and obligations of Equitable.
This Contract may not be modified, nor may any of Equitable's rights or
requirements be waived, except in writing and by an authorized officer of
Equitable. In addition to the rights of change reserved by Equitable as provided
in this Contract, the Contract may be changed by amendment or replacement
without the consent of any other person provided that such change does not
reduce any Annuity Benefit provided before such change and provided that no
rights, privileges or benefits under the Contract with respect to Contributions
made hereunder prior to the effective date of such change may be adversely
affected by an amendment to the Contract without the consent of the Contract
Holder and each Owner.
SECTION 9.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend this Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
will include, but not be limited to, the right to conform the Contract to
reflect changes in the Code, in Treasury regulations or published rulings of the
Internal Revenue Service, ERISA, and in Department of Labor regulations.
The benefits and values available under this Contract will not be less than the
minimum benefits required by any applicable state law.
SECTION 9.03 DEFERMENT
Application of proceeds to provide a payment of a death benefit under Part VI
and payment of any portion of the Annuity Account Value (less any applicable
Withdrawal Charge) will be made within seven days after the Transaction Date.
Payments or applications of proceeds from a Separate Account may be deferred for
any period during which (1) the New York Stock Exchange is closed or trading is
restricted, (2) sales of securities or determination of the fair value of the
Account's assets is not reasonably practicable because of an emergency, or (3)
the Securities and Exchange Commission, by order, permits Equitable to defer
payment in order to protect persons with interests in the Separate Account.
Equitable may defer payment or transfer of any portion of the Annuity Account
Value in the Guaranteed Interest Account for up to six months while the Owner is
living.
SECTION 9.04 REPORTS AND NOTICES
With respect to each Certificate, at least once each year until the Annuity
Commencement Date, Equitable will furnish the Owner with a report showing the
following:
(a) the dollar amount in the Guaranteed Interest Account,
No. 1050-94IC Page 20
(b) the total number of Accumulation Units in each Separate Account
or Investment Fund,
(c) the Accumulation Unit Value,
(d) the dollar amount in each Separate Account or Investment Fund,
(e) the Cash Value, and
(f) the amount of the death benefit.
The terms of this Contract which require Equitable to send a report as described
above or any written notice as described in any other Section will be satisfied
by Equitable mailing any such report or notice to the Owner's last known address
as shown in Equitable's records.
All written notices sent to Equitable will not be effective until received in
good order at the Processing Office.
SECTION 9.05 ASSIGNMENTS
No amounts payable under this Contract to a payee other than the Owner may be
assigned by that payee unless permitted herein, nor will they be subject to the
claims of creditors or to legal process, except to the extent permitted by law.
The Certificate will describe any other restrictions or assignments which may
apply.
SECTION 9.06 CONTRACT HOLDER'S 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 or agreement, or for Contributions or any payments or other
distributions hereunder. Equitable will deal with the Contract Holder in
accordance with the terms and conditions of the trust agreement pursuant to
which the Contract Holder agreed to act as such and in such manner as the
Contract Holder and Equitable agree, without the consent of any other person.
SECTION 9.07 MANNER OF PAYMENT
Equitable will pay all amounts payable under this Contract by check (in United
States dollars) or, if so agreed upon by an Owner and Equitable, by wire
transfer. All amounts payable by the Owner will be paid by check payable to
Equitable (in United States dollars) or by any other method acceptable to
Equitable.
No. 1050-94IC Page 21
TABLE OF GUARANTEED ANNUITY PAYMENTS
------------------------------------
[APPLICABLE TO XXX CERTIFICATES]
------------------------------
[AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE JOINT AND SURVIVOR LIFE
ANNUITY FORM (WITH 100% OF THE AMOUNT OF THE ANNUITANT'S PAYMENT CONTINUED TO
THE ANNUITANT'S SPOUSE) PROVIDED BY AN APPLICATION OF $1,000.
FEMALE AGES
AGE 60 61 62 63 64 65 66 67 68 69 70
60 3.39 3.42 3.46 3.49 3.52 3.55 3.58 3.61 3.64 3.67 3.70
61 3.41 3.45 3.48 3.51 3.55 3.58 3.61 3.64 3.68 3.71 3.74
62 3.43 3.47 3.50 3.54 3.57 3.61 3.64 3.68 3.71 3.74 3.78
63 3.45 3.49 3.52 3.56 3.60 3.63 3.67 3.71 3.74 3.78 3.82
MALE 64 3.47 3.51 3.54 3.58 3.62 3.66 3.70 3.74 3.78 3.82 3.86
AGES 65 3.48 3.52 3.56 3.61 3.65 3.69 3.73 3.77 3.81 3.85 3.89
66 3.50 3.54 3.58 3.63 3.67 3.71 3.76 3.80 3.84 3.89 3.93
67 3.52 3.56 3.60 3.65 3.69 3.74 3.78 3.83 3.88 3.92 3.97
68 3.53 3.57 3.62 3.67 3.71 3.76 3.81 3.86 3.91 3.96 4.00
69 3.54 3.59 3.64 3.69 3.73 3.78 3.83 3.88 3.94 3.99 4.04
70 3.56 3.60 3.65 3.70 3.75 3.81 3.86 3.91 3.96 4.02 4.07
The amount of income provided under an Annuity Benefit payable on the Joint and
Survivor Life Annuity form is based on 2.5% interest and the 1983 Individual
Annuity Mortality Table "a" projected with modified Scale G.
Amounts required for ages or for annuity forms not shown in the above Table will
be calculated by Equitable on the same actuarial basis.
If a variable annuity form is available from Equitable and elected pursuant to
Section 7.02, then the amounts required will be calculated by Equitable based on
the 1983 Individual Annuity Mortality Table "a" projected with modified Scale
"G" and a modified two year age setback and on an Assumed Base Rate of Net
Investment Return of 3.5%/5.0%.]
No. 1050-94IC Page 22
TABLE OF GUARANTEED ANNUITY PAYMENTS
[APPLICABLE TO NON-QUALIFIED CERTIFICATES]
[AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE LIFE ANNUITY FORM
WITH TEN YEARS CERTAIN PROVIDED BY APPLICATION OF $1,000.
Monthly Income Monthly Income
[Ages Males Females Age Males Females
---- ----- ------- --- ----- -------
60 4.12 3.70 73 5.52 4.87
61 4.20 3.76 74 5.66 4.99
62 4.29 3.83 75 5.80 5.12
63 4.38 3.90 76 5.95 5.26
64 4.48 3.98 77 6.10 5.40
65 4.58 4.06 78 6.25 5.55
66 4.68 4.14 79 6.40 5.70
67 4.79 4.23 80 6.56 5.85
68 4.90 4.32 81 6.72 6.01
69 5.02 4.42 82 6.88 6.18
70 5.14 4.52 83 7.04 6.34
71 5.26 4.63 84 7.20 6.51
72 5.39 4.75 85 7.36 6.67
The amount of income provided under an Annuity Benefit payable on the Joint and
Survivor Life Annuity form is based on 2.5% interest and the 1983 Individual
Annuity Mortality Table "a" projected with modified Scale G, adjusted to a
unisex basis, reflecting a 20%-80% split of males and females at pivotal age 55.
Amounts required for ages not shown in the above Table or for other annuity
forms will be calculated by Equitable on the same actuarial basis.
If a variable annuity form is available from Equitable and elected pursuant to
Section 7.02, then the amounts required will be calculated by Equitable based on
the 1983 Individual Annuity Mortality Table "a" projected with modified Scale
"G" and a modified two year age setback and a 20%-80% split of males and females
at age 55 and on an Assumed Base Rate of Net Investment Return of 3.5%/5.0%.]
No. 1050-94IC Page 23
APPENDIX A
----------
APPLICABLE TO XXX CERTIFICATES
1. OWNER:
The Annuitant is the Owner.
2. ANNUITY COMMENCEMENT DATE:
The Owner may not choose Annuity Commencement Date later than the
maximum maturity age specified in the Certificate. If the Owner chooses
a date later than the Annuitant's age [70 1/2], the Owner must withdraw
at least the minimum distributions required under Section [408(b)] and
[401(a)(9)] of the Code and Treasury regulations that apply. See Item 4
of this Appendix.
3. CONTRIBUTIONS:
No Contributions will be accepted unless they are in cash (or check or
other form as Equitable may require). Except in the case of a rollover
contribution (as permitted by Sections [402(c), 403(a)(4), 403(b)(8),
or 408(d)(3)] of the Code), the total of such Contributions will not
exceed [$2,000] for any taxable year. Amounts transferred to the
Contract from an individual retirement account or annuity contract
which meets the requirements of Section [408] of the Code are not
subject to the [$2,000] limit.
If the Owner makes a Contribution which qualifies as an eligible
retirement plan rollover as defined in Section [402(c) or 403(b)(8)] of
the Code and the Owner commingles such Contribution with other
Contributions, the Owner may not be able to roll over the eligible
retirement plan Contributions and earnings to another qualified plan or
Code Section [403(b)] arrangement at a future date, unless the Code
permits.
Equitable may agree, if requested, to maintain records with respect to
each source of Contributions. For example, a source may arise as
follows:
[(a) Salary Deferral Contributions: Contributions made
pursuant to an individual retirement annuity program in
accordance with the requirements of Section 408(b) of
the Code and applicable Treasury regulations;
(b) Rollover Contributions: Contributions which qualify
as eligible retirement plan rollovers within the meaning
of Section 402(c) of the Code and applicable Treasury
regulations.]
The Owner, or Employer if applicable, will determine and report each
Source to Equitable, in a form acceptable to Equitable, and will
specify as part of each withdrawal and transfer request the Source(s)
from which each individual or transfer is to be made.
No. 1050-94IC Page 24
4. DEATH BENEFITS:
Under the following circumstances, the death benefit described in
Section 6.01 will not be paid at the Annuitant's death before the
Annuity Commencement Date, and the coverage under this Contract will
continue with the Annuitant's surviving spouse as Successor Annuitant
and Owner:
a. the Annuitant is married at death;
b. the person named as beneficiary under Section 6.02 is the
Annuitant's surviving spouse; and
c. the Annuitant has requested that the spouse become "Successor
Annuitant and Owner" of the Certificate if the spouse survives
the Annuitant.
5. REQUIRED DISTRIBUTIONS:
[The Annuitant's entire interest in the Certificate will be distributed
or begin to be distributed no later than the April 1 which follows the
calendar year in which the Annuitant attains age 70 1/2 ("Required
Beginning Date"). The entire interest may be distributed, as the
Annuitant elects, over (a) the Annuitant's life, or the lives of the
Annuitant and the named beneficiary, or (b) a period which does not
extend beyond the Annuitant's "life expectancy" (defined below), or the
joint and last survivor expectancy of the Annuitant and the named
beneficiary. Distributions must be made in periodic payments at
intervals no longer than one year. Also, payments must be either
non-increasing or they may increase only as provided in Regulations
(Q & A F-3 of Proposed Treasury Regulation Section 1.401(a)(9)-1 or
successor thereto).
All distributions made under the Certificate will be made in accordance
with the requirements of Code Sections [408(b) and 401(a)(9), including
the incidental death benefit requirement of the Code (Section
401(a)(9)(G)) and Treasury Regulations which apply (including minimum
distribution incidental benefit requirements of Proposed Treasury
Regulation Section 1.401(a)(9)-2) or any successor thereto.]
[For purposes of determining the "period certain" referred to in the
first paragraph of this item 5, life expectancy is computed by use of
the expected return multiples in Tables V and VI of Treasury Regulation
Section 1.72-9. Unless the Annuitant otherwise elects before the time
distributions are required to begin, life expectancies will be
recalculated annually. Such election will be irrevocable and will apply
to all subsequent years. In the case of any named beneficiary other
than the spouse, if permitted under Equitable's rules then in effect,
life expectancies may not be recalculated. Instead, life expectancy
will be calculated using the attained age of such beneficiary during
the calendar year in which the Annuitant attains age 70 1/2 and payment
for any subsequent calendar year will be calculated based on life
expectancy reduced by one for each calendar year which has elapsed
since the calendar year life expectancy was first calculated.]
No. 1050-94IC Page 25
[If the Annuitant dies after distribution of the Annuitant's entire
interest has begun, the remainder of such interest will continue to be
distributed at least as rapidly as under the payment method of
distribution being used before the Annuitant's death.
If the Annuitant dies before distribution of the Annuitant's entire
interest begins, distribution of the Annuitant's entire interest will
be completed no later than December 31 of the calendar year in which
the fifth anniversary of the Annuitant's death occurs, except to the
extent that a choice is made to receive death benefit distributions
under (a) or (b) below:
(a) If the Annuitant's interest is payable to a beneficiary, then
the entire interest may be distributed over the life of, or
over a period certain not greater than the life expectancy of,
the named beneficiary. Such distributions must commence on or
before December 31 of the calendar year which follows the
calendar year of the Annuitant's death.
(b) If the named beneficiary is the Annuitant's surviving spouse,
the date that distributions must begin under (a) above will
not be earlier than the later of (i) December 31 of the
calendar year which follows the year of the Annuitant's death
or, (ii) December 31 of the calendar year in which the
Annuitant would have reached age 70 1/2.
If the designated beneficiary is the Annuitant's surviving
spouse, and a Successor Annuitant and Owner option (described
in item 4 preceding) is in effect, the distribution of the
Annuitant's interest need not be made until after the spouse's
death.
For purposes of the "period certain" used in (a) above, life expectancy
is computed by use of the expected return multiples in Tables V and VI
of Treasury Regulation Section 1.72-9. For purposes of distributions
which begin after the Annuitant's death, unless the surviving spouse
elects otherwise by the time distributions are required to begin, life
expectancies will be recalculated annually. Such election will be
irrevocable by such surviving spouse and will apply to all subsequent
years.
In the case of any other designated beneficiary, life expectancies will
be calculated using the attained age of such beneficiary during the
calendar year in which distributions are required to begin, pursuant to
this item, and payments for any subsequent calendar year will be
calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy
was first calculated.
Distributions under this item are considered to have begun if
distributions are made because the Annuitant has reached the Required
Beginning Date or if, before the Required Beginning Date, distributions
irrevocably commence to the Annuitant over a period permitted and in an
annuity form acceptable under Proposed Treasury Regulation
1.401(a)(9)-1 or any successor thereto.]
No. 1050-94IC Page 26
6. REPORTS - NOTICES:
In addition to the reports described in Section 9.04, Equitable will
send the Annuitant a report as of the end of each calendar year showing
the status of the annuity and any other reports required by the Code or
Treasury regulations.
7. ASSIGNMENTS, NONTRANSFERABILITY, NONFORFEITABILITY:
The Owner's rights may not be assigned, pledged, or otherwise
transferred except as permitted by law. The Owner may not name a new
Owner, except as described in item 4 above. The interest under the
Certificate is nonforfeitable.
8. TERMINATION:
In the event that an annuity bought under the Contract fails to qualify
as an annuity under Section [408(b)] of the Code, Equitable will have
the right, upon receipt of notice of such fact, before the Annuity
Commencement Date, to terminate the Certificate. In that case,
Equitable will pay the Annuity Account Value less a deduction for the
part which applies to any Federal income tax payable by the Annuitant
which would not have been payable with respect to an annuity which
meets the terms of the Code.
No. 1050-94IC Page 00
XXXXXXXX X
----------
APPLICABLE TO NON-QUALIFIED CERTIFICATES
1. CONTRIBUTIONS:
Equitable has the right not to accept a Contribution less than the
amount(s) shown in the Certificate.
2. OWNER DEATH DISTRIBUTION RULES:
Upon the death of an Owner before the Annuity Commencement Date:
(a) If the Owner is both the Owner and the Annuitant,
Equitable will pay the death benefit described in
Section 6.01. Any part of a death benefit payable as
described in Section 6.01 for which there is no named
beneficiary living at the Owner's death will be
payable in a single sum to the Owner's children who
survive the Owner in equal shares, or should none
survive, then to the Owner's estate.
Under the following circumstances, the death benefit
described in Section 6.01 will not be paid at the
Owner's death before the Annuity Commencement Date,
and the coverage under the Contract will continue
with the Owner's surviving spouse as Successor
Annuitant and Owner:
(i) the Owner is married at his or her death;
(ii) the person named as the beneficiary who is
to receive any death benefit payable on the
Owner's death under Section 6.02 is the
surviving spouse; and
(iii) the Owner has additionally requested that
the spouse become "Successor Annuitant and
Owner" of the Certificate if such spouse
survives the Owner.
(b) If the Owner is not the Annuitant, the named
beneficiary (successor Owner) will succeed as Owner.
The entire amount in the Investment Options subject
to any Withdrawal Charge which applies must be fully
paid by the fifth anniversary of the Owner's death,
or payments must begin within one year after the
Owner's death as a life annuity or installment
option, for a period of not longer than the life
expectancy of the named beneficiary. If the Owner has
not elected a form of payment as described in the
next to last paragraph of Section 6.02, and if the
beneficiary named under Section 6.02 does not elect
to receive the payments required by this Section in a
form of Annuity Benefit, a series of partial
withdrawals, or any payout option acceptable under
Section [72(s)] of the Code and Equitable's rules at
the time, Equitable
No. 1050-94IC Page 28
will pay the amount in the Options in a single sum to
the beneficiary on the fifth anniversary of the
Owner's death. Subject to Equitable's rules at the
time of payment and the completion of an application,
the beneficiary may elect to apply such a single sum
payment to a new non qualified annuity contract to be
owned by the beneficiary. However, if the named
beneficiary is the Owner's spouse, full payments of
amounts under this Contract must be made not later
than five years after the spouse's death.
If payments under an Annuity Benefit had begun before
the Owner's death, such payments will continue to be
made over a period not longer than the period
provided for under the Annuity Benefit elected.
If the Annuitant dies before the entire amount in the
Investment Options is paid, Equitable will pay the
death benefit as described in Section 6.01.
(c) Unless the Owner directs otherwise, the named
beneficiary will also be the person who succeeds as
Owner on the Owner's death while the Annuitant is
alive as described in Section 6.02. The Owner may
change any beneficiary or successor Owner from time
to time during the Annuitant's lifetime and while
coverage under this Contract is in force, also as
described in item (b) above.
(d) If the Owner is not the Annuitant, the Owner may name
another person to be the successor Owner and to
receive the amounts to be paid under item (b) above
and another person to be successor Owner if the first
choice as successor Owner dies before the Owner. If
the Owner has named two or more persons as successor
Owner, and more than one survive, they will share
equally unless the Owner directs otherwise. If no
person named as beneficiary to receive the death
benefit survives the Annuitant, Equitable will pay
such death benefit in a single sum to the Owner. In
the event of the Owner's death after the Annuitant,
but before Equitable pays such death benefit, the
death benefit will be payable in a single sum to the
children who survive the Owner, in equal shares, or
should none survive, to the Owner's estate.
If the Owner dies before the Annuity Commencement
Date while the Annuitant is still living, and if no
person named as successor Owner is living at the
Owner's death, the beneficiary will be presumed to
be, in this order, (i) the Owner's surviving spouse,
(ii) the Annuitant, (iii) the children who survive
the Owner, in equal shares, or (iv) the Owner's
estate.
3. ASSIGNMENTS:
Notwithstanding the terms of Section 9.05, the Owner may assign the
Certificate and the rights described therein before the Annuity
Commencement Date. Equitable will not be bound by an assignment unless
Equitable has received it and
No. 1050-94IC Page 29
it is in writing. The Owner's rights and those of any other persons
referred to in the Certificate will be subject to the assignment.
Equitable assumes no responsibility for the validity of any assignment.
No. 1050-94IC Page 30
APPENDIX C
----------
MARKET VALUE ADJUSTMENT PROVISIONS
The terms of this Appendix will become operative only upon advance notice from
Equitable to the Contract Holder and to each Owner affected by such terms. If
this Appendix becomes operative, the terms herein will be included in each
Certificate issued thereafter.
THE TERMS OF THIS APPENDIX CONTAIN A MARKET VALUE ADJUSTMENT ("MVA") FORMULA
WHICH MAY RESULT IN ADJUSTMENTS, POSITIVE OR NEGATIVE, IN BENEFITS. AN MVA WILL
NOT APPLY UPON TRANSFER TO A NEW GUARANTEE PERIOD OR OTHER INVESTMENT OPTION ON
THE EXPIRATION DATE OR PURSUANT TO ITEM 1 BELOW.
1. GUARANTEED PERIOD ACCOUNT
Under the terms of this Appendix, Equitable will specify one or more
Guarantee Periods in the Guaranteed Period Account. For each such
Guarantee Period, Equitable guarantees to credit an interest rate
(called the "Guaranteed Rate"). Interest will be credited daily to
amounts in the Guaranteed Period Account. The duration of each
Guarantee Period provided at any time and the Guaranteed Rate that
applies to each Period will be furnished by Equitable upon request. The
Guarantee Period(s) and the Rate for each such Period the Owner
initially elects are shown in the Certificate.
One or more Guarantee Period(s) may be elected by the Owner, according
to Equitable's rules then in effect. Contributions and transfers to be
made to the Guaranteed Period Account pursuant to Section 3.01 will be
allocated to the Guarantee Period(s) according to the Owner's election.
Contributions and transfers into the Guaranteed Period Account will
receive the Guaranteed Rate applicable to the elected Guarantee Period
as of the Business Day Equitable receives such Contribution or transfer
request at the Processing Office. The amount held with respect to a
given Guarantee Period is referred to as the Guaranteed Period Amount
which reflects Contributions and transfers made to the Guaranteed
Period Account, plus interest at the Guaranteed Rate(s), minus any
withdrawals, transfers and charges, if any, deducted from the
Guaranteed Period Account.
The last day of a Guarantee Period is the Expiration Date. Equitable
will notify the Owner at least [15 but not more 45] days before the
Expiration Date of each Period. The Owner may elect one of the
following three options effective at the Expiration Date, none of which
will result in a market value adjustment:
a) to transfer the Guaranteed Period Amount into a Guarantee
Period of any duration which Equitable then offers;
b) to transfer the Guarantee Period Amount to another
Investment Option;
No. 1050-94IC Page 31
c) to make a withdrawal of the Guaranteed Period Amount (subject to
any Withdrawal Charges which apply pursuant to section 8.01).
If no such election is made on or prior to the Expiration Date, the
Guaranteed Period Amount (without any market value adjustment) will be
transferred into the Investment Option described in the Certificate.
During the 30 days following the Expiration Date, the full Guaranteed
Period Amount (less any withdrawals and transfers made or charges
deducted during that 30 day period) may be transferred into a new
Guarantee Period or other Investment Option. In no event can the Owner
elect a Guarantee Period which extends beyond the Annuity Commencement
Date.
The "Guaranteed Period Account" is Equitable's Separate Account No. 46
that Equitable uses to account for amounts allocated to Guarantee
Periods under the Contract. All amounts allocated to a Guarantee
Period, whether Contributions or transfers, become part of the
Guaranteed Period Account.
2. TRANSFERS, WITHDRAWALS, DEATH AND ANNUITY BENEFITS
If the Owner requests, other than as described in item 1 above, a
transfer to another Investment Option pursuant to Section 4.01 or a
withdrawal pursuant to Section 5.01, any such transfer or withdrawal
from a Guaranteed Period Amount will be subject to a market value
adjustment described below. For this purpose, the Annuity Account Value
in Separate Account No. 46 will be after the market value adjustment.
The market value adjustment will be in addition to any other charges
which apply pursuant to Section 8.01.
In addition, amounts applied from a Guaranteed Period Amount to provide
a death benefit pursuant to Section 6.01, an annuity pursuant to
Section 7.02 or any other annuity form offered by Equitable, will be
subject to a market value adjustment, unless otherwise specified in the
Certificate.
Payment or transfers from a Guaranteed Period Amount may be deferred
for up to six months while the Owner is living.
3. MARKET VALUE ADJUSTMENT
The market value adjustment with respect to each Guarantee Period that
applies to a Certificate Owner is determined as follows:
(a) Equitable determines the Guaranteed Period Amount that will be
payable on the Expiration Date, using the Guaranteed Rate for
such Guarantee Period.
(b) Equitable determines the period remaining in the Guarantee
Period (based on the Business Day Equitable received the Owner's
transaction request at the Processing Office) and converts it to
fractional years based on a 365 day year. For example, three
years and 12 days, becomes 3.0329.
No. 1050-94IC Page 32
(c) Equitable determines the current Guaranteed Rate which applies
to new Contributions for the same class of Certificates under a
Guarantee Period with the same Expiration Date as the Owner's
Guarantee Period. Equitable adds to such current rate a
percentage which is no greater than that shown in the
Certificate.
(d) Equitable determines the present value of the Guaranteed Period
Amount payable at the Expiration Date, using the period
determined in (b) and the rate determined in (c).
(e) Equitable subtracts the current Guaranteed Period Amount from
the result in (d). The result is the Market Value Adjustment,
which may be positive or negative, applicable to such Guarantee
Period.
If Equitable is not offering a Guarantee Period to which the "current
Guaranteed Rate" would apply, Equitable will use the Rate at the
closest Expiration Date. If Equitable is no longer offering new
Guarantee Periods, Equitable will use a procedure for determining such
current Rate which will be stated in the Certificate or which Equitable
will develop and file with the insurance supervisory official of the
appropriate jurisdiction.
4. REPORTS AND NOTICES
Equitable will report the values under this Appendix with the reports
sent out as described in Section 9.04. It will include the Guaranteed
Period Amount, market value adjustment, and Annuity Account Value in
Separate Account No. 46.
No. 1050-94IC Page 33
APPENDIX D
----------
APPLICABLE TO LIFE CONTINGENT ANNUITY
DESCRIBED HEREIN
The terms of this Appendix apply, notwithstanding any terms to the contrary
contained in the Contract and Certificate, if the Owner has elected the Life
Contingent Annuity described herein.
Under the terms of this Appendix, Equitable provides this Annuity Benefit in
consideration of the purchase payment(s) made. The effective date of this
Endorsement is the date Equitable receives the initial purchase payment.
Equitable pays an Annuity Benefit during the lifetime of the Annuitant(s). The
Annuity Benefit ends upon the death of the Annuitant(s). IF THE DEATH OF THE
ANNUITANT(S) OCCURS BEFORE THE FIRST ANNUITY BENEFIT PAYMENT IS DUE, EQUITABLE
WILL NOT MAKE ANY PAYMENTS NOR WILL EQUITABLE REFUND ANY PURCHASE PAYMENT. THE
TERMS HEREIN DO NOT CREATE A CASH VALUE BENEFIT.
1. ANNUITANT(S)
The Annuitant is named in the Certificate. If this Annuity Benefit is
purchased on a survivorship basis as described below, then more than one
Annuitant may be named.
2. PURCHASE PAYMENTS
Purchase payments may be made on a flexible basis; the amount, frequency
and other conditions are shown in the Certificate. Purchase payments may be
paid by check, withdrawn from the Annuity Account Value under the
Certificate or from another Equitable contract that the Owner owns. No
purchase payments may be paid after the Initial Benefit Payment Date.
Purchase payments do not create a cash value under the Certificate.
Each purchase payment (less any charges shown in the Data pages) will
provide a guaranteed amount of annuity which, when added to all other
guaranteed amounts of annuity so purchased with respect to the Annuitant,
equals the guaranteed Annuity Benefit to be provided under the terms of
this Appendix.
3. ANNUITY BENEFIT PAYMENTS
Annuity Benefit payments under the Life Contingent Annuity begin at the
Initial Benefit Payment Date stated in the Certificate and continue (a) for
the lifetime of the Annuitant or (b) if the Annuity Benefit is purchased on
a survivorship basis as elected by the Owner, for as long as at least one
of the Annuitants named in the
No. 1050-94IC Page 34
Certificate is living. The Annuity Benefit form elected by the Owner at
issue will be set forth in the Certificate. The form of the Annuity Benefit
may not be changed.
Annuity Benefit payments will be made as set forth in the Certificate. They
may be made monthly, quarterly or annually. If Equitable does not receive
written notice from the Owner, the payments will be made annually.
Equitable reserves the right to change the frequency to meet its minimum
payment rules, as described in the Certificate.
4. AMOUNT OF ANNUITY BENEFIT
Guaranteed Annuity Benefit payments will be based on [4% interest and the
1983 "a" Individual Annuity Mortality table, projected with modified Scale
"G"]. The schedule in the Certificate shows the guaranteed purchase rates
for the Initial Benefit Payment Date selected. Before the Initial Benefit
Payment Date, Equitable will report annually the amount of payments to be
provided at such Date. In addition, Equitable may from time to time
increase the amount of the Annuity Benefit payments based on changes in its
expectations as to future mortality and interest. Any such increase will
be made on a uniform and non-discriminatory basis.
5. INITIAL BENEFIT PAYMENT DATE
The Owner may elect to change the Initial Benefit Payment Date subject to
conditions shown in the Certificate. The Annuity Benefit will be determined
by applying the present value of Annuity Benefits as of the prior Initial
Benefit Payment Date using the guaranteed mortality and interest (see item
4). If the Owner wishes to change such Date, the Owner must do this in
writing. The change will not take effect until written election is received
and accepted by Equitable at its Processing Office.
If this Appendix applies in connection with an XXX Certificate, the
recalculation of life expectancies as described in item 5, the third
paragraph, of Appendix A will apply in determining the required
distributions.
6. TRANSFERS/WITHDRAWALS
This Appendix provides no Annuity Account Value. No transfers or
withdrawals, described in Parts IV and V of the Certificate, will apply to
purchase payments made under this Appendix.
7. DEATH BENEFITS
Payments will continue as long as an Annuitant survives. There will be no
death benefits payable to any beneficiary under this Appendix.
No. 1050-94IC Page 35
If the death of the Annuitant(s) occurs before the due date of the first
Annuity Benefit payment, Equitable will not make any payments under the
Annuity Benefit nor will Equitable refund any part of the purchase payments
paid for it.
8. ASSIGNMENT
This Annuity may not 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, and except as otherwise permitted by law, no sum payable
under this Annuity may be transferred, assigned or encumbered, or will in
any way be subject to any legal process to subject the same to the payment
of any claim against the person to whom any sum is payable.
9. PAYMENT
All payments by Equitable under this Annuity will be made by check (in
United States dollars) and will be payable at the Processing Office.
10. CONDITIONS
Equitable may require proof acceptable to it that the person(s) on whose
life the Annuity Benefit payment is based is alive when each payment is
due. Equitable will require proof of the age of any such person.
If the Annuity Benefit was based on information that is later found not to
be correct, such Benefit will be adjusted on the basis of the correct
information. The adjustment will be made in the amount of the Annuity
Benefit payments, or any amount used to provide the Annuity Benefit, or any
combination. Overpayments by Equitable will be charged against future
payments. Underpayments will be added to future payments. Equitable's
liability is limited to the correct information and the actual amounts used
to provide the Annuity Benefit.
If the age or sex of any person upon whose life the Annuity Benefit depends
has been misstated, the Annuity Benefit payments will be those which would
have been purchased at the correct age or sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest
at the rate shown in the Certificate; Equitable will choose which rate will
apply on a uniform basis for like Certificates. Such interest will be
deducted from or added to future payments.
11. STATUTORY COMPLIANCE
The benefits under this Appendix have been determined without regard to
other benefits provided under the Certificate. They will not be less than
the minimum benefits required by any applicable state law.
No. 1050-94IC Page 36
