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EXHIBIT 4(b)(iii)(B)
SIMPLE INDIVIDUAL RETIREMENT ANNUITY RIDER
GENERAL
This Rider is made part of the Contract to which it is attached. The Contract
as amended is intended to qualify as a SIMPLE individual retirement annuity
under Section 408(b) of the Internal Revenue Code of 1986, as amended (the
"Code").
APPLICABLE PROVISIONS
The following provisions apply and replace any contrary provisions of the
Contract:
1. You shall be the Owner. Any provision of the Contract that
would allow joint ownership, or that would allow more than one
person to share distributions, is deleted.
2. The Contract is not transferable or assignable (other than
pursuant to a divorce decree in accordance with applicable
law) and is established for the exclusive benefit of you and
your Beneficiaries. It may not be sold, assigned, alienated,
or pledged as collateral for a loan or as security.
3. Your entire interest in the Contract shall be nonforfeitable.
4. This Contract will accept only cash premium payments made on
your behalf pursuant to the terms of a SIMPLE IRA plan
described in Code Section 408(p). A rollover contribution or
a transfer of assets from another of your SIMPLE IRAs will
also be accepted. No other contributions will be accepted.
You shall have the sole responsibility for determining whether
any premium payment meets applicable income tax requirements.
If contributions made on your behalf pursuant to a SIMPLE IRA
plan maintained by your employer are received directly by us
from the employer, we will provide the employer with the
summary description required by Code Section 408(1)(2)(B).
5. This Contract does not require fixed premium payments. Any
refund of premiums (other than those attributable to excess
contributions) will be applied before the close of the
calendar year following the year of the refund toward the
payment of additional premiums or the purchase of additional
benefits.
6. The Income Date is the date your entire Account Value will be
distributed or commence to be distributed to you. Your Income
Date shall be no later than April 1 of the calendar year
following the calendar year in which you attain age 70 1/2. You
shall have the sole responsibility for electing a distribution
that complies with this Rider and applicable law.
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7. With respect to any amount which becomes payable under the
Contract during your lifetime, such payment shall commence on
or before the Income Date and shall be payable in
substantially equal amounts, no less frequently than annually.
Payments shall be made in the following manner:
a. in a lump sum; or
b. over your life; or
c. over the lives of you and your designated
beneficiary; or
d. over a period certain not exceeding your life
expectancy; or
e. over a period certain not exceeding the joint and
last survivor expectancy of you and your designated
beneficiary.
If your entire interest is to be distributed in other than a
lump sum, then the minimum amount to be distributed each year
(commencing with the calendar year following the calendar year
in which you attain age 70 1/2 and each year thereafter) shall
be determined in accordance with Code Sections 408(b)(3) and
401(a)(9), including the incidental death benefit requirements
of Code Section 401(a)(9)(G), and the regulations thereunder
including the minimum distribution incidental benefit
requirement of Treasury Regulation Section 1.401(a)(9)-2.
Payments must be either nonincreasing or may increase only as
provided in Treasury Regulation Section 1.401(a)(9)-1, Q&A
F-3.
8. If you die after distribution of your interest has commenced,
the remaining portion of such interest will continue to be
distributed at least as rapidly as under the method of
distribution being used prior to your death.
If you die before distribution has begun, your entire interest
in the Contract must be distributed no later than December 31
of the calendar year in which the fifth anniversary of your
death occurs. However, proceeds which are payable to a named
beneficiary who is a natural person may be distributed in
substantially equal installments over the lifetime of the
beneficiary or a period certain not exceeding the life
expectancy of the beneficiary provided such distribution
begins not later than December 31 of the calendar year in
which the first anniversary of your death occurs. If the
beneficiary is your surviving spouse, the surviving spouse may
elect not later than December 31 of the calendar year in which
the fifth anniversary of your death occurs to receive equal or
substantially equal payments over the life or life expectancy
of the surviving spouse commencing at any date prior to the
date on which you would have attained age 70 1/2. Minimum
payments will be calculated in accordance with Code Sections
408(b)(3) and the regulations thereunder.
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For the purposes of this requirement, any amount paid to any
of your children will be treated as if it had been paid to
your surviving spouse if the remainder of the interest becomes
payable to the surviving spouse when the child reaches the age
of majority.
If the beneficiary is your surviving spouse, the spouse may
treat the Contract as the spouse's own SIMPLE IRA. This
election will be deemed to have been made if the surviving
spouse makes a rollover to the Contract from another SIMPLE
IRA of the surviving spouse, makes a rollover from the
Contract, fails to elect any of the above distribution
options, or the surviving spouse's employer makes a SIMPLE
plan contribution to the Contract.
If you die before your entire interest has been distributed,
no additional premiums will be accepted under this Contract
after your death unless the beneficiary is your surviving
spouse.
Distributions under this paragraph are considered to have
begun if distributions are made on account of the individual
reaching his or her required beginning date or if prior to the
required beginning date, distributions irrevocably commence to
an individual over a period permitted and in an annuity form
acceptable under Treasury Regulation Section 1.401(a)(9).
9. For purposes of the foregoing provisions, life expectancy and
joint and last survivor expectancy shall be determined by use
of the expected return multiples in Table V and VI of Treasury
Regulation Section 1.72-9 in accordance with Code Section
408(b)(3) and the regulations thereunder. In the case of
distributions under paragraph 7 of this Rider, the life
expectancy of you and your beneficiary will be initially
determined on the basis of your attained ages in the year you
reach 70 /12. In the case of distribution under paragraph 8 of
this Rider, life expectancy will be initially determined on
the basis of your beneficiary's attained age in the year
distributions are required to commence. Unless you (or your
spouse) elects otherwise prior to the time distributions are
required to commence, your life expectancy and, if applicable,
your spouse's life expectancy will be recalculated annually
based on your attained ages in the year for which the required
distribution is being determined. The life expectancy of a
nonspouse beneficiary will not be recalculated. Instead, life
expectancy will be calculated using the attained age of such
beneficiary during the calendar year in which the individual
attains age 70 1/2, and payments for subsequent years shall 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.
The annual distribution required to be made by your Income
Date is for the calendar year in which you reached age 70 1/2.
Annual payments for subsequent years, including the year in
which your Income Date occurs, must be made by
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December 31 of that year. The amount distributed for each
year shall equal or exceed the annuity value as of the close
of business on December 31 of the preceding year, divided by
the applicable life expectancy or joint and last survivor
expectancy.
You may satisfy the minimum distribution requirements under
Code Section 408(b)(3) by receiving a distribution from one
IRA that is equal to the amount required to satisfy the
minimum distribution requirement for two or more IRAs. For
this purpose, if you own two or more IRAs, you may use the
alternative method described in Notice 88-38, 1988-1 C.B. 524,
to satisfy the minimum distribution requirements.
You or your beneficiary, as applicable, shall have the sole
responsibility for requesting a distribution that complies
with this Rider and applicable law.
10. Prior to the expiration of the 2-year period beginning on the
date you first participated in any SIMPLE IRA plan maintained
by your employer, any rollover or transfer by you of funds
from this SIMPLE IRA must be made to another SIMPLE IRA. Any
distribution of funds to you during this 2-year period may be
subject to a 25 percent additional tax if you do not roll over
the amount distributed into another SIMPLE IRA. After the
expiration of this 2-year period, you may roll over or
transfer funds to any IRA that is qualified under Code
Sections 408(a) or 408(b).
11. We will not act as a designated financial institution as
described in Code Section 408(p)(7) in connection with this
SIMPLE IRA.
MODIFICATIONS
We reserve the right to amend the Contract or this Rider to the extent
necessary to qualify as an individual retirement annuity for federal income tax
purposes.
CHARGE FOR THIS RIDER
There is no charge for this Rider.
EFFECTIVE DATE
This Rider is effective as of the Contract Date.
TERMINATION
This Rider will terminate on the date of the first to occur of the following
events:
1. The Contract is surrendered.
2. The entire interest in the Contract has been distributed.
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3. You request the termination of this Rider.
TERMS AND CONDITIONS
All of the terms used in this Rider have the same meanings as in the Contract
unless otherwise clearly indicated in this Rider. This Rider is subject to all
the exclusions, definitions and provisions of the Contract which are not
inconsistent with the terms of this Rider.
Chairman
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