VCA-24
THE PRUDENTIAL [Logo] THE PRUDENTIAL
INSURANCE COMPANY
OF AMERICA
agrees to pay the benefits provided under this contract in accordance with
and subject to its terms.
Contract-Holder: Plan:
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Effective Date: Group Annuity Contract No:
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Provisions and Schedules Jurisdiction:
attached:
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THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA
By:
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Title: President Xxxxxx X. Xxxxxx
Date: Secretary Xxxxxxx X. Light
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Attest
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Date:
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Group Annuity Contract providing for contributions on account of
Participants. Annual determination of participation in divisible surplus.
All subject to the provisions of this contract.
NOTICE - ALL CONTRACTUAL VALUES OR PAYMENTS PROVIDED BY THIS CONTRACT, WHEN
BASED ON THE INVESTMENT RESULTS OF A PRUDENTIAL SEPARATE ACCOUNT DESCRIBED IN
THIS CONTRACT, ARE VARIABLE, SUBJECT TO CHANGE BOTH UP AND DOWN, AND ARE NOT
GUARANTEED AS TO DOLLAR AMOUNT.
GVA-1010-87 (24) 9081
TABLE OF CONTENTS
PROVISION Serial Page
I. CONTRIBUTIONS - ACCOUNTS - CHARGES
1.1 Contributions. . . . . . . . . . . . . . . . . . . . 100
1.2 Participant's Accounts . . . . . . . . . . . . . . . 100
1.3 Annual Account Charge. . . . . . . . . . . . . . . . 110
1.4 Reports. . . . . . . . . . . . . . . . . . . . . . . 110
II. INVESTMENT ACCOUNT - INVESTMENT MANAGEMENT FEES -
UNIT VALUES - SUBACCOUNTS INCLUDED
2.1 The Prudential Variable Contract
Account-24 (VCA-24). . . . . . . . . . . . . . . . . 200
2.2 Investment Management Fees . . . . . . . . . . . . . 200
2.3 Unit Values. . . . . . . . . . . . . . . . . . . . . 210
2.4 Subaccounts Included . . . . . . . . . . . . . . . . 210
III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS
3.1 Withdrawals. . . . . . . . . . . . . . . . . . . . . 300
3.2 Death Payments . . . . . . . . . . . . . . . . . . . 300
3.3 Transfers between Related Contracts. . . . . . . . . 320
3.4 Transfers to Another Financial Institution . . . . . 320
IV. DISTRIBUTIONS
4.1 Distributions. . . . . . . . . . . . . . . . . . . . 400
4.2 Small Annuities and Accounts . . . . . . . . . . . . 410
4.3 Terms of Payments of Annuities . . . . . . . . . . . 410
4.4 Contract-Holder as Payee - Prudential
as Agent . . . . . . . . . . . . . . . . . . . . . . 420
V. CHANGES
5.1 Changes by Prudential. . . . . . . . . . . . . . . . 500
5.2 Changes by Agreement . . . . . . . . . . . . . . . . 500
5.3 Persons Empowered to Act for Prudential. . . . . . . 500
VI. DISCONTINUANCE - TERMINATION OF CONTRACT
6.1 Discontinuance of Establishing Participants'
Accounts . . . . . . . . . . . . . . . . . . . . . . 600
6.2 Discontinuance of Contributions under
this Contract. . . . . . . . . . . . . . . . . . . . 600
6.3 Termination of Contract. . . . . . . . . . . . . . . 600
VII. GENERAL TERMS
7.1 Contract-Holder. . . . . . . . . . . . . . . . . . . 700
7.2 Communications . . . . . . . . . . . . . . . . . . . 700
7.3 Place of Payment - Currency. . . . . . . . . . . . . 700
7.4 Information - Records. . . . . . . . . . . . . . . . 710
7.5 Misstatements. . . . . . . . . . . . . . . . . . . . 710
7.6 Plan Changes . . . . . . . . . . . . . . . . . . . . 710
7.7 Divisible Surplus. . . . . . . . . . . . . . . . . . 720
7.8 Entire Contract -- Construction. . . . . . . . . . . 720
GVA-1010-87 (24) (as modified by Group Annuity Amendment of Form GAA-7792)
TC-100
TABLE OF CONTENTS
(Continued)
SCHEDULES Serial Page
Schedule A Forms of Annuity which May Be Purchased. . . . . A-100
Schedule B Life - Payment Certain Annuity . . . . . . . . . S-100
Schedule C Life - Contingent Annuity. . . . . . . . . . . . S-100
Schedule D Payment Certain Annuity. . . . . . . . . . . . . S-100
GVA-1010-87 (24)
TC-110
Provision I. CONTRIBUTIONS - ACCOUNTS - CHARGES:
1.1 CONTRIBUTIONS:
(a) Regular Contributions:
The contributions which are payable under this contract for a
Participant are the amounts of his compensation deferred pursuant to
the Plan and directed for payment hereunder. Contributions will be
transmitted by the Contract-Holder. A Participant is a person for whom
contributions have been paid under this contract and whose
Participant's Accounts (see section 1.2) have not been cancelled.
(To save words, male pronouns are used in this contract to refer to
both men and women.)
(b) Transfer Contributions:
The following amounts may be transferred to and paid as a contribution
under the contract for a Participant:
(1) an amount which qualifies as a rollover contribution pursuant to
the Internal Revenue Code of 1986, as amended (the "Code"); or
(2) an amount which arises from a Participant's interest in another
eligible deferred compensation plan pursuant to Code Section
457(D)(10).
The Prudential may require proof that all amounts transferred to the
contract meet the requirements of the Code and any applicable Rulings or
Regulations issued by the Internal Revenue Service.
1.2 PARTICIPANT'S ACCOUNT:
Contributions paid under this contract for a Participant may be invested in
any one or more of the Subaccounts described in section 2.4 pursuant to the
terms of the Plan. Prudential will establish a separate "Participant's
Account" with respect to each Subaccount in which contributions are invested
on behalf of a Participant. (The term "Participant's Account" is not meant
to confer on the Participant any rights to his Account except as
specifically provided in the Plan.) Each Account is expressed in Units of
the applicable Subaccount.
The number of Units added to a Participant's Account as a result of adding a
contribution to a Subaccount is determined by dividing the dollar amount of
the contribution by the appropriate Unit Value for the day the contribution
is added. (See section 2.3 for a description of each Unit Value). A number
of Units will be subtracted from a Participant's Account on each day on
which a withdrawal is made from the Account. The number of Units is equal to
the number requested for withdrawal or, if applicable, the number determined
by dividing the dollar amount to be withdrawn by the appropriate Unit Value
for the day of withdrawal
GVA-1010-87 (24) (as modified by Group Annuity Amendment Form GAA-7792)
Serial 100 1.1-1.2
Each Account maintained for a Participant is the sum of the Units added to
it, less the sum of the Units subtracted from it. The dollar value of each
Account as of any day is the product of the number of Units in the Account
at the close of business on that day and the appropriate Unit Value for that
day.
All Accounts are subject to charges described later.
1.3 ANNUAL ACCOUNT CHARGE:
On the last business day (see section 2.3) of each calendar year an amount
will be withdrawn from the Accounts of each Participant which, in aggregate,
will be equal to the Annual Account Charge. Also, on any other day on which
all of a Participant's Accounts are cancelled, an amount will be withdrawn
from them which, in aggregate, will be equal to the Annual Account Charge.
However, no Charge will be withdrawn if all of the Participant's Accounts
are being cancelled on a January 1 to purchase an annuity for him under this
contract.
The Annual Account Charge is $20.00.
A Participant may have other Accounts established in connection with the
Plan under other group annuity contracts issued to the Contract-Holder by
Prudential (each one is called a "companion contract"). If so, the total
Annual Account Charge that applies to all of his Accounts will not exceed
$20.00. This charge will be shared among all such Accounts as Prudential
determines. Also, no charge will be withdrawn from a Participant's Accounts
under this contract when they are cancelled unless no amounts remain in an
Account for him under any companion contract.
In addition to the Annual Account Charge, a charge may be made upon a
withdrawal from the Participant's Account or Accounts (see section 3.1).
The Charge may be changed as provided in section 5.1.
1.4 REPORTS:
Prudential will periodically furnish a report with respect to each
Participant's Account which has not been cancelled. The report will show the
status of each Account as of the date of the report.
GVA-1010-87 (24) (as modified by Group Annuity Amendment Form GAA-7792)
Serial 110 1.2-1.4
Provision II. INVESTMENT ACCOUNT - INVESTMENT MANAGEMENT FEES - UNIT VALUES -
SUBACCOUNTS INCLUDED:
2.1 THE PRUDENTIAL VARIABLE CONTRACT ACCOUNT - 24 (VCA-24):
VCA-24 is a separate investment account of Prudential established pursuant
to a resolution adopted by its Board of Directors. The resolution provides
that this account is to be used for contracts which state that certain
payments and values under them will vary to reflect the investment results
of this account.
The investments held in VCA-24 are intended to be composed primarily of
shares of The Prudential Series Fund, Inc. ("PSF"), an open-end diversified,
management investment company registered under the Investment Company Act of
1940. VCA-24 is divided into Subaccounts, each of which is invested only in
a corresponding Portfolio of PSF. The Portfolios of PSF in which the
Subaccounts are invested are set forth in section 2.4. Prudential will
invest and reinvest the assets held in each Subaccount in accordance with
the investment objectives and policies established for it.
The value of the assets of a Subaccount is determined daily by multiplying
the number of PSF shares held by that Subaccount by the "Net Asset Value" of
each share and adding the value of dividends declared by PSF for the
corresponding Portfolio but not yet paid.
The "Net Asset Value" per share of each PSF Portfolio is computed by adding
the sum of the value of the securities held by that Portfolio plus any cash
or other assets in holds, subtracting all its liabilities, and dividing the
result by the total number of shares outstanding of that Portfolio at such
time. Liabilities of the Portfolio include the costs of portfolio
transactions, legal and accounting expenses, custodial and transfer agency
fees, and the Investment Management Fees applicable to that Portfolio. (See
section 2.2.)
The total value of the assets of all Subaccounts comprising VCA-24 at all
times will be at least equal to the total reserve liability required by law
for all payments or values which vary in dollar amount to reflect the
investment results of the VCA-24 Subaccounts. Assets held in the VCA-24
Subaccounts equal in value to the reserve liability will be held for the
sole benefit of all contracts which participate in VCA-24. The amount, if
any, by which the total value of the assets of all Subaccounts exceeds the
total reserve liability will be subject to the exclusive control of
Prudential. Thus, Prudential may, from time to time make transfers between
the VCA-24 Subaccounts and its other investment accounts as, in its judgment
experience warrants. A transfer will not affect Prudential's contractual
liabilities under this contract.
2.2 INVESTMENT MANAGEMENT FEES:
On each Business Day, the assets of each PSF Portfolio are reduced by an
Investment Management Fee. The amount of the Fee for each Portfolio on
GVA-1010-87 (24)
Serial 200 2.1-2.2
any Business Day is equal to the product of (a) and (b) where:
(a) is the rate of the Investment Management Fee applicable to the
Portfolio and
(b) is the average daily assets of the Portfolio.
The rate of the Investment Management Fee currently applicable to each
Portfolio is shown in section 2.4. The Investment Management Fee for a
Portfolio may be changed from time to time pursuant to a change in the
investment advisory agreement for that Portfolio. Prudential will notify the
Contract-Holder of any such change.
2.3 UNIT VALUES:
A Participant's participation in one or more Subaccounts of VCA-24 will be
reflected in Units of each such Subaccount.
The following applies to each Subaccount described in section 2.4.
The Unit Value for any Business Day is the dollar value of one Unit for that
Business Day. ("Business Day" means a day the New York Stock Exchange is
open for trading.) The initial Unit Value was $1.00. The Unit Value for any
subsequent Business Day is determined as of the end of that Business Day by
multiplying the Unit Change Factor for that Business Day by the Unit Value
for the immediately preceding Business Day. The Unit Value for any day which
is not a Business Day is equal to the Unit Value for the next Business Day.
The Unit Value will go up or down in accordance with the Unit Change Factor
described below.
The Unit Change Factor for a Subaccount of VCA-24 for any Business Day is
(i) divided by (ii), less (iii) where:
(i) is the value of the assets of the Subaccount as of the end of the
Business Day, but before taking into account any contributions,
withdrawals or transfers made on such Day, and
(ii) is the value of the assets of the Subaccount as of the end of the
preceding Business Day, and
(iii) is the daily equivalent of 0.75% (the Administrative Expense Charge).
This section may be changed as provided in section 5.1.
2.4 SUBACCOUNTS INCLUDED:
This section contains a description of the Subaccounts included in this
contract. It describes the investment portfolio and other features of each
Subaccount.
GVA-1010-87 (24) (as modified by GAA-7653)
Serial 210 2.2-2.4
VCA-24-CM
Subaccount: Conservatively Managed Flexible
Subaccount invested in the
Conservatively Managed Flexible
Portfolio of PSF (VCA-24-CM).
Investments: Conservatively managed mix of
money market instruments,
intermediate-term notes and
bonds, and common stocks
of established companies.
Unit name: VCA-24-CM Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective
from the assets of the Portfolio: annual rate of .55%.
GVA-1010-87 (24)
Serial 220-CM 2.4
VCA-24-B
Subaccount: Bond Subaccount invested in the
Bond Portfolio of PSF (VCA-24-B).
Investments: Primarily medium and long-term
debt securities.
Unit name: VCA-24-B Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective annual
from the assets of the Portfolio: rate of .40%.
GVA-1010-87 (24)
Serial 220-B 2.4
10/87
VCA-24-S
Subaccount: Common Stock Subaccount invested in
the Common Stock Portfolio of PSF
(VCA-24-S).
Investments: Primarily common stocks.
Unit name: VCA-24-S Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective annual
from the assets of the Portfolio: rate of .45%.
GVA-1010-87 (24)
Serial 220-S 2.4
VCA-24-AM
Subaccount: Aggressively Managed Flexible
Subaccount invested in the
Aggressively Managed Flexible
Portfolio of PSF (VCA-24-AM).
Investments: Aggressively managed mix of
money market instruments,
long-term bonds and common
stocks.
Unit name: VCA-24-AM Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective
from the assets of the Portfolio: annual rate of .60%.
GVA-1010-87 (24)
Serial 220-AM 2.4
VCA-24-SI
Subaccount: Stock Index Subaccount invested in
the Stock Index Portfolio of PSF
(VCA-24-SI).
Investments: Primarily common stocks, invested in
such a manner as to attempt to
duplicate the investment results
of the Standard & Poor's 500
Composite Stock Price Index.
Frequency of Unit
Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective annual
from the assets of the Portfolio: rate of 0.35%.
GVA-1010-87 (24) (as modified by GAA-7653)
Serial 220-SI 2.4
Provision III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS:
3.1 WITHDRAWALS:
The Contract-Holder will notify Prudential when a withdrawal is to be made
from a Participant's Accounts pursuant to the Plan. The minimum withdrawal
from any single Account is $500, or the dollar value of that Account if
smaller. Payment will normally be made within seven days of Prudential's
receipt of a duly completed request for it. However, it may be paid at a
later day if permitted under the Investment Company Act of 1940.
The amount paid to the Contract-Holder will be the dollar amount withdrawn
less the withdrawal charge determined from the following table and the
Annual Account Charge if it applies. The amount payable is also referred to
as the "Withdrawal Value."
TABLE
Withdrawals made in the months
indicated, counting from the day
the first Account of a Participant Withdrawal Charge per $1.00
was established hereunder* being withdrawn.**
---------------------------------- -----------------------------
First 24 months $0.06
Next 36 months 0.05
Next 60 months 0.03
Next 60 months 0.02
Thereafter 0.00
*Or, if earlier, the day an account was established for him under a
companion contract.
**No charge is made after the amount withdrawn equals the contributions made
for the Participant. In addition, no charge is made if the withdrawal is
made as a result of Financial Hardship or Disability Retirement pursuant to
the terms of the Plan.
As of the first day no amounts remain in a Participant's Account under this
contract or in an Account for him under a companion contract, all of his
Accounts hereunder are cancelled.
This section may be changed as provided in section 5.1.
3.2 DEATH PAYMENTS:
If a Participant dies before his Participant's Accounts have been cancelled,
the dollar value will be paid to the Contract-Holder on behalf of the
Participant's Beneficiary. Proof of the Participant's death must be received
by Prudential before any payment will be made. Death benefits payable under
the contract on behalf of the Participant's Beneficiary prior to the date on
which distributions have commenced for the Participant pursuant to section
4.1 of the contract, will be paid as set forth in this section 3.2. Death
benefits payable under the
GVA-1010-87 (24) (as modified by Group Annuity Amendment Form GAA-7792)
Serial 300 3.1-3.2
contract on behalf of the Participant's Beneficiary on or after
distributions have commenced for the Participant pursuant to section 4.1
will be paid as set forth in section 4.1.
The Beneficiary may elect payment in any of the following forms unless the
Participant has directed otherwise or unless the Plan provides otherwise:
(a) a lump sum;
(b) an annuity form described in section 4.3, other than one which
provides for payment after the death of the Annuitant to a Contingent
Annuitant;
(c) any other settlement method to which Prudential consents and which is
not contrary to the terms of the Plan; or
(d) a combination of all or any two of (a), (b) and (c) above.
All payments made pursuant to this section 3.2 will be made to the
Contract-Holder, except as otherwise provided in section 4.4 of the
contract. In addition, the Contract-Holder shall retain all rights with
respect to any annuity purchased on behalf of a Beneficiary.
If a lump sum payment is made on the Beneficiary's behalf from an Account
within one year of the Participant's death, it will be at least equal to the
contributions made for the Participant to that Account less any withdrawals
and transfers.
Any form of distribution paid pursuant to this section 3.2 will meet the
requirements of Code Sections 401(a)(9) and 457(d) and the Regulations
issued thereunder.
If payments on behalf of a Participant's Beneficiary are to start at a
future date, all or an appropriate portion of the Participant's Account will
be maintained in accordance with the Beneficiary's election in the same
manner as for the Participant. No contributions will be made to an Account
hereunder after the Participant's death.
As of the first day no amounts remain in the any of the Participant's
Accounts hereunder or in an Account with respect to the Participant under a
companion contract, the Participant's Accounts are cancelled. Section 3.1
does not apply.
GVA-1010-87 (24) (as modified by Group Annuity Amendment Form GAA-7792)
Serial 310 3.2
3.3 TRANSFERS BETWEEN RELATED CONTRACTS:
The Contract-Holder may transfer, pursuant to the Plan, an amount from one
of the Participant's Accounts to another Account maintained for him under
this contract or to an Account maintained for him under a companion
contract. The minimum withdrawal to provide a transfer is $500 from any
single Account, or the dollar value of that Account if smaller. The transfer
will normally be made within seven days of Prudential's receipt of a duly
completed request for it. Section 3.1 does not apply to a withdrawal for
this purpose. Transfers are deemed to be made first from the contributions
paid for the Participant. Investment income is transferred when there are no
longer any contributions in the Account from which the transfer is made.
Amounts may be transferred to this contract from a companion contract and
will be added to one or more Subaccounts pursuant to the terms of the Plan.
An amount transferred to this contract for a Participant will be treated as
though it were a contribution made for him (see section 1.2). However, in
determining any withdrawal charge, any portion of the amount transferred
which is investment income will not be considered as a contribution.
Prudential may, upon notice to the Contract-Holder, limit the frequency of
transfers. This action will take effect on the date of the notice.
This section may be changed as provided in section 5.1.
3.4 TRANSFERS TO ANOTHER FINANCIAL INSTITUTION:
(a) Total Transfers at the Request of a Participant:
The Contract-Holder may transfer, pursuant to the request of a
Participant, the Withdrawal Value of any of the Participant's Accounts
to another financial institution. The transfer may be made directly to
that institution or by a payment (or payments) to the Contract-Holder
who then makes payment to the institution. The transfer will normally be
made within seven days after Prudential's receipt of a duly completed
transfer request.
The transfer will be a full settlement of Prudential's liability for the
Participant's Account from which the transfer is made.
(b) Partial Transfers at the Request of a Participant:
The Contract-Holder may transfer, pursuant to the request of a
Participant, a portion of one or more of the Participant's Accounts to
another financial institution, if such transfer is permitted by the
terms of the Plan. The minimum withdrawal to provide a transfer from any
single Account is $500, or the dollar value of the Account, if smaller.
The transfer will normally be made within seven days of a duly completed
request for it.
GVA-1010-87 (24) (as modified by Group Annuity Amendment Form GAA-7792)
Serial 320 3.3-3.4
Prudential may, upon notice to the Contract-Holder and Participants, limit
the frequency of transfers. This action will take effect on the date of the
notice.
Any transfer amount will be subject to the provisions of section 3.1
relating to withdrawal charges.
(c) Total Transfers at the Contract-Holder's Request:
The Contract-Holder may request Prudential to make transfer payments on
behalf of all Participants to another financial institution named in the
request. The Transfer Date is the later of the day specified in the
request and the 90th day after its receipt by Prudential.
All Participants' Accounts will be cancelled as of the Transfer Date and
an amount equal to the sum of the Withdrawal Values, expressed in Units
of the cancelled Accounts, times the appropriate Subaccount Unit Value
for the day of withdrawal will be transferred within seven days
thereafter.
(d) Upon Notice by Prudential
If contributions are discontinued for all Participants pursuant to
section 6.2, Prudential may notify the Contract-Holder that transfer
payments will be made to the Contract-Holder or to a financial
institution named by the Contract-Holder. Prudential would do this if
the contributions are discontinued due to certain circumstances, such as
a change in any law or regulation, which in Prudential's judgment would
have an adverse effect on Prudential in fulfilling the terms of this
contract. In that case, a Transfer Date will be established,
Participants' Accounts will be cancelled, and the transfer will be made
in the same manner as described in section 3.4(c).
This section may be changed as provided in section 5.1.
GVA-1010-87 (24) (as modified by Group Annuity Amendment Form GAA-7792)
Serial 330 3.4
Provision IV. DISTRIBUTIONS:
4.1 DISTRIBUTIONS:
A Participant may, in accordance with the terms of the Plan, elect to
receive a distribution of the dollar value of his Accounts under the
contract in any of the following forms:
(a) a lump sum;
(b) an annuity form described in section 4.3;
(c) any other settlement method to which Prudential consents and which is
not contrary to the terms of the Plan; or
(d) a combination of all or any two of (a), (b) and (c) above.
Any portion of a Participant's Accounts which is payable as a lump sum will
be subject to the provisions of section 3.1 relating to withdrawal charges.
Payments becoming due to the Beneficiary of a Participant for whom a
distribution commenced pursuant to paragraph (c) will continue to be made on
behalf of the Beneficiary in the same amount and frequency as such payments
were made for the Participant until the Participant's Accounts are
exhausted, unless the Beneficiary elects a lump sum of the remaining portion
of the Participant's Accounts.
Payments becoming due to the Beneficiary of a Participant for whom an
annuity commenced pursuant to paragraph (b) will, unless the Participant has
directed otherwise, be paid as provided in section 4.3.
All payments made pursuant to this section 4.1 will be made to the
Contract-Holder, except as a otherwise provided in section 4.4. In addition,
the Contract-Holder will retain all rights with respect to any annuity
purchased on behalf of a Participant.
Anything in the contract to the contrary notwithstanding, any payments made
on behalf of a Participant or Beneficiary in accordance with this section
4.1 will meet the requirements of Code Sections 401(a)(9) and 457(d) and the
Regulations issued thereunder.
As of the first day no amounts remain in any of the Participant's Accounts
under this contract or in an Account for him under a companion contract, his
Accounts hereunder are cancelled.
GVA-1010-87 (24) (as modified by Group Annuity Amendment Form GAA-7792)
Serial 400 4.1
4.2 SMALL ANNUITIES AND ACCOUNTS:
If the total monthly amount of annuity which would otherwise be purchased on
behalf of any person under this contract and the companion contracts is less
than $50, Prudential may, in lieu of an annuity under this contract, make
payment in a single sum. The single sum will be equal to the amount that
would otherwise be applied to purchase an annuity as described in section
4.3.
If no contributions have been made under this contract or any companion
contract for a Participant for a period of 24 months and the dollar value of
his Accounts under all the contracts is $1,000 or less, Prudential may
cancel his Accounts under this contract. If the Accounts are cancelled, the
dollar value will be paid to the Contract-Holder. The Annual Account Charge
will be made only if no Account remains for him under any companion
contract.
4.3 TERMS OF PAYMENT OF ANNUITIES:
If a Participant elects an annuity pursuant to paragraph (b) of section 4.1,
all or a portion of the dollar value of the Participant's Accounts, as
specified by the Participant will be applied to purchase an annuity in
accordance with Schedule A. The monthly amount of annuity is determined from
the schedule of purchase rates for that annuity.
Life annuities and Payment Certain annuities are available under this
contract. A Life form of annuity is one payable at least during the lifetime
of the person (referred to as the "Annuitant") for whom it was purchased.
Depending upon the existence and nature of any payment payable after the
death of the Annuitant, a Life annuity will be one of the following forms:
Life - Payment Certain, Life - Contingent, or Life - Payment Certain
Contingent annuity. A Payment Certain form of annuity may be payable for a
period less than the lifetime of the person for whom the annuity was
purchased. The terms of payment of each form of annuity are described below.
(a) Life Form of Annuity:
The first monthly payment of a Life - Payment Certain annuity is payable
on the date the annuity is purchased. Monthly payments are payable on
the first day of each month thereafter throughout the Annuitant's
remaining lifetime. If the Annuitant dies before the number of annuity
payments made equals the number of Payments Certain applicable to him,
monthly annuity payments will be continued until the total number of
payments is so equal. These continued annuity payments will each be in
the same amount as was payable to the Annuitant. The number of Payments
Certain is established when the annuity is purchased and may be 60, 120,
180, 240, or any other number accepted by Prudential.
GVA-1010-87 (24) (as modified by Group Annuity Amendment Form GAA-7792)
Serial 410 4.2-4.3
The first monthly payment of a Life - Contingent annuity is payable on
the date the annuity is purchased. Monthly payments are payable on the
first day of each month thereafter throughout the Annuitant's remaining
lifetime. If the Annuitant dies before the death of his Contingent
Annuitant, monthly Contingent Annuity payments will become payable. The
first payment of Contingent Annuity will be payable on the first day of
the month following the month in which the Annuitant's death occurs.
Monthly Contingent Annuity payments are payable on the first day of each
month thereafter throughout the Contingent Annuitant's remaining
lifetime. The last monthly payment is payable for the month in which his
death occurs. The amount of each monthly Contingent Annuity will be a
percentage of the monthly annuity payment payable before the Annuitant's
death. The percentage is established when the annuity is purchased and
may be 33 1/3%, 50%, 66 2/3% or 100%, or any other percentage accepted
by Prudential. Under a Life-Payment Certain Contingent annuity, a
percentage payment will not take effect until the end of the selected
Payment Certain period.
(b) Payment Certain Annuity:
The first monthly payment of a Payment Certain annuity is payable on the
date the annuity is purchased. Monthly payments are payable on the first
day of each month thereafter until the total number of Payments Certain
specified when the annuity was purchased has been paid. The number of
Payments Certain may be 60, 120, 180, 240, or any other number accepted
by Prudential.
Other forms of annuity payments may be provided with the consent of
Prudential.
All annuities purchased under this contract will meet the requirements of
Code Sections 401(a)(9) and 457(d) and the Regulations issued thereunder.
4.4 CONTRACT-HOLDER AS PAYEE - PRUDENTIAL AS AGENT:
Every payment with respect to any annuity will be paid to the
Contract-Holder. The Contract-Holder will notify Prudential forthwith of the
death of any Annuitant and Contingent Annuitant. The Contract-Holder will
reimburse Prudential for any payments made by Prudential which are in excess
of those provided by the annuity for the Annuitant.
However, the Contract-Holder may request Prudential to act as its agent for
the purpose of making payments to Annuitants, Contingent Annuitants, and
their beneficiaries. If Prudential assents to the request, it will make
payments to the persons rather than to the Contract-Holder. The
Contract-Holder may terminate this agency relationship at any time upon 45
days' advance notice to Prudential. Thereafter payments will be made to the
Contract-Holder.
GVA-1010-87 (24) (as modified by Group Annuity Amendment Form GAA-7792)
Serial 420 4.3-4.4
Provision V. CHANGES:
5.1 CHANGES BY PRUDENTIAL:
Prudential may make changes in this contract as follows:
(a) The Annual Account Charge and the table of withdrawal charges may be
changed periodically on and after the second anniversary of the
Effective Date.
(b) The effective annual rate of the Administrative Expense Charge and the
terms and amounts (excluding the withdrawal charge table) of
withdrawals and transfers pursuant to Provision III may be changed
periodically on and after the fifth anniversary of the Effective Date.
(c) The schedules of annuity purchase rates may be changed periodically on
and after the tenth anniversary of the Effective Date.
Any change in the table of withdrawal charges and in Schedule D will apply
only to amounts added to Participants' Accounts on and after the date the
change takes effect. Any other change will apply to amounts in Participants'
Accounts whether added before or on and after the date the change takes
effect. Any change in the schedules of annuity purchase rates will remain in
effect for at least ten years.
Any change in accordance with this section will be made by giving notice to
the Contract-Holder at least 90 days before the date on which the change is
to take effect.
5.2 CHANGES BY AGREEMENT:
This contract may also be changed in any respect at any time or times by
agreement between the Contract-Holder and Prudential.
5.3 PERSONS EMPOWERED TO ACT FOR PRUDENTIAL:
No agent or other person except one of the following officers of Prudential
may change this contract or bind Prudential.
Chairman and Chief Executive Officer Associate Actuary
President Secretary
Vice President Assistant Secretary
Actuary
GVA-1010-87 (24)
Serial 500 5.1-5.3
Provision VI. DISCONTINUANCE - TERMINATION OF CONTRACT:
6.1 DISCONTINUANCE OF ESTABLISHING PARTICIPANTS' ACCOUNTS:
Prudential may notify the Contract-Holder that on and after a specified date
no new Participants' Accounts will be established under this contract. The
specified date may not be earlier than 90 days after the date of the notice.
Thereafter, only contributions for persons who are Participants on the
specified date will be accepted hereunder. In all other respects this
contract will continue to operate in accordance with its terms.
6.2 DISCONTINUANCE OF CONTRIBUTIONS UNDER THIS CONTRACT:
Contributions under this contract will be discontinued with respect to all
Participants:
(a) at any time after receipt by Prudential of notice thereof from the
Contract-Holder,
(b) when the Plan terminates,
(c) as of the effective date of any Plan change to which Prudential is
unable or unwilling to give effect under this contract (see section
7.6), or
(d) as of a date at least 90 days after notice to the Contract-Holder by
Prudential that no further contributions will be accepted hereunder.
After discontinuance the contract will continue to operate in accordance
with its terms with respect to Participants' Accounts. (This includes the
initiation of transfer payments as described in section 3.4(d)).
6.3 TERMINATION OF CONTRACT:
This contract will terminate when all the following have occurred:
(a) no further contributions may be paid under this contract;
(b) no Participant's Accounts remain uncancelled; and
(c) no further annuity or transfer payments are payable from this
contract.
GVA-1010-87 (24)
Serial 600 6.1-6.3
11/89
Provision VII. GENERAL TERMS:
7.1 CONTRACT-HOLDER:
Prudential will normally deal only with the Contract-Holder. However,
Prudential and the Contract-Holder may agree to do otherwise. Also, in some
cases the contract calls for dealing with another. Prudential will be
entitled to rely on any action taken or omitted by the Contract-Holder
pursuant to the terms of this contract.
The Contract-Holder may, from time to time, delegate to an agency certain
administrative powers and responsibilities which this contract assigns to
the Contract-Holder. Prudential is not bound to recognize any delegation
until it has received notice of it. The notice must specify those powers and
responsibilities and include evidence of acceptance by the agency. On and
after the date of receipt of the notice, Prudential will deal with the
agency with respect to those powers and responsibilities and will be
entitled to rely on any action taken or omitted by the agency with respect
thereto in the same manner as if dealing with the Contract-Holder. If any
agency fails or refuses to act with respect thereto, then the delegation
will be void for the purposes of this contract. Thereafter, Prudential will
deal only with the Contract-Holder. The Contract-Holder may give notice to
Prudential of delegation to another agency of specified powers and
responsibilities.
7.2 COMMUNICATIONS:
All communications to the Contract-Holder or to Prudential will be in
writing. They will be addressed to the Contract-Holder at its principal
office, or at such other address as it may communicate to Prudential. They
will be addressed to Prudential, c/o The Prudential Asset Management
Company, Inc., Defined Contribution Programs, X.X. Xxxxxxxx Office Park, 00
X.X. Preate Drive, Moosic Pennsylvania 18507-1796, or at such other address
as it may communicate to the Contract-Holder. All communications to any
other person or organization dealing with Prudential will be addressed to
that person or organization at the last address of record.
7.3 PLACE OF PAYMENT - CURRENCY:
All payments to Prudential under this contract will be payable at its office
described above or at an address or to a representative as may be specified
by Prudential by notice to the Contract-Holder.
All payments under this contract, whether to or by Prudential, will be in
lawful money of the United States of America. Dollars and cents, as
specified in this contract, means lawful dollars and cents of United States
currency.
GVA-1010-87 (24)
Serial 700 7.1-7.3
7.4 INFORMATION -- RECORDS:
The Contract-Holder will furnish all information which Prudential may
reasonably require for the administration of this contract. If the
Contract-Holder cannot furnish any required item of information, Prudential
may request the person concerned to furnish the information. Prudential will
not be liable for the fulfillment of any obligations in any way dependent
upon information unless and until it receives the information in a form
satisfactory to it.
Information furnished to Prudential may be corrected for demonstrated errors
in it unless Prudential has already acted to its prejudice by relying on the
information. Except for the corrections, information furnished to Prudential
will be regarded as conclusive. Prudential will maintain the records
necessary for its administration of this contract. These records will be
prepared from the information furnished to Prudential and will constitute
evidence as to the truth of the information in the records.
7.5 MISSTATEMENTS:
If any relevant fact relating to any person is found to have been misstated,
the following will apply:
(a) The amount of annuity payable by Prudential will be that which would
be provided by the amount allocated to purchase the annuity on the
basis of the correct information, without changing the date of first
payment of the annuity.
Any adjustment by Prudential of the amount or terms of payment made in
accordance with this section will be conclusive upon any other person
affected by it.
(b) The amount of any underpayment by Prudential will be paid in full with
the next payment due. The amount of any overpayment by Prudential will
be deducted to the extent possible from amounts payable thereafter.
7.6 PLAN CHANGES:
This contract applies to the terms of the Plan in effect on the Effective
Date and to each Plan change. However, Prudential may, within 60 days after
its receipt of a copy of any Plan change, notify the Contract-Holder that
Prudential is unable or unwilling to give effect under this contract to the
change. Prudential would do this if the change might have an adverse effect
on Prudential in fulfilling the terms of the contract. This would be
determined based on Prudential's underwriting principles then in effect. The
Contract-Holder will furnish Prudential with a copy of the Plan and, while
this contract is active, a copy of each Plan change at least 60 days before
it is to become effective.
GVA-1010-87 (24)
Serial 710 7.4-7.6
7.7 DIVISIBLE SURPLUS:
The portion, if any, of the divisible surplus of Prudential accruing upon
this contract will be determined annually by the Board of Directors of
Prudential and credited to Participants' Accounts as determined by the
Board. (It is unlikely any divisible surplus will accrue upon this
contract.)
No annuity under this contract will be taken into account in the
determination of any divisible surplus to be credited to this contract.
7.8 ENTIRE CONTRACT -- CONSTRUCTION:
This document constitutes the entire contract.
This contract will be construed according to the laws of jurisdiction set
forth on the first page.
GVA-1010-87 (24)
Serial 720 7.7-7.8
SCHEDULE A
FORMS OF ANNUITY WHICH MAY BE PURCHASED
Form of Payment Payable Applicable Schedule
----------------------- -------------------
1. Life - Payment Certain Annuity. 1. Use Schedule B for allocation.
2. Life - Contingent Annuity. 2. Use Schedule C for allocation.
3. Payment Certain Annuity. 3. Use Schedule D for allocation.
Prudential may provide monthly amounts of annuity larger than those shown in the
following schedules for annuities purchased during any period specified by
Prudential. Annuity purchase rates for other forms of annuity consented to by
Prudential will be furnished on request. The following schedules may be changed
as provided in section 5.1.
GVA-1010-87 (24)
Serial A-100 Schedule A
1/90
SCHEDULES
Monthly amount of annuity purchased per $10,000 of a Participant's Account,
after deduction from it of any taxes on annuity considerations that apply.
SCHEDULE B - Life-Payment Certain Annuity (120 Payments Certain)
Monthly Amount
---------------
If date the annuity is purchased is in:
Age 1990 1991 1995 2000
--- ---- ---- ---- ----
60 $52.53 $41.36 $40.58 $39.85
65 57.51 46.57 45.60 44.68
70 63.85 53.19 51.98 50.82
SCHEDULE C - Life-Contingent Annuity
Monthly Amount
--------------
If Annuitant and Contingent Annuitant have same date of birth.
If the date the annuity is Purchased is in:
---------------------------------------------------------------
Age 1990 1991 1995 2000
--- ---- ---- ---- ----
If specified percentage to Contingent Annuitant is 100%:
60 $46.96 $35.91 $35.31 $34.78
65 50.70 39.88 39.10 38.39
70 56.00 45.36 44.32 43.32
If specified percentage to Contingent Annuitant is 50%:
60 $49.99 $38.71 $38.00 $37.34
65 54.69 43.53 42.61 41.75
70 61.25 50.15 48.92 47.71
SCHEDULE D - Payment Certain Annuity
Monthly Amount
---------------
Number of If date the annuity is purchased is in:
Payments Certain 1990 1991 1995 2000
---------------- ---- ---- ---- ----
60 $173.38 $165.44 $164.73 $164.73
120 97.22 88.83 88.45 88.45
180 72.32 63.48 63.20 63.20
* * * *
The rates in these Schedules are to be used without adjustment only when the
facts that apply to the Participant and his annuity are as shown. Rates for
other facts will be furnished upon request.
GVA-1010-87 (24)
Serial S-100 Schedules B-D
