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:
A.B.C. COMPANY
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Effective Date: Group Annuity Contract No.:
XX/XX/XX GA-XXXXD
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Provisions and Schedules Jurisdiction:
attached:
Anystate
Provisions I - VII, inclusive
Schedules A - D, inclusive
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A.B.C. COMPANY THE PRUDENTIAL INSURANCE COMPANY
Anytown, Anystate OF AMERICA
By:
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Title: President /s/
Date: Secretary /s/ 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-1000-87 (24) 19081
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 VCA-24 Unit Values . . . . . . . . . . . . . . . . 210
2.4 Subaccounts Included . . . . . . . . . . . . . . . 210
III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS
3.1 Participant's Withdrawals. . . . . . . . . . . . . 300
3.2 Death Payments . . . . . . . . . . . . . . . . . . 300
3.3 Transfers between Related Contracts. . . . . . . . 310
3.4 Transfers to Another Financial Institution . . . . 310
3.5 Transfers Involving a Similar Contract
of Another Employer. . . . . . . . . . . . . . . . 320
IV. ANNUITIES
4.1 Annuity Elections. . . . . . . . . . . . . . . . . 400
4.2 Annuity - Single Sum Payment Combination . . . . . 400
4.3 Small Annuities and Accounts . . . . . . . . . . . 400
4.4 Terms of Payment of Annuities. . . . . . . . . . . 400
4.5 Payees . . . . . . . . . . . . . . . . . . . . . . 410
V. CHANGES
5.1 Changes by Prudential. . . . . . . . . . . . . . . 500
5.2 Changes by Agreement . . . . . . . . . . . . . . . 500
5.3 Changes to Conform to Law. . . . . . . . . . . . . 500
5.4 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 Beneficiary. . . . . . . . . . . . . . . . . . . . 710
GVA-1000-87 (24)
TC-100
402-234
TABLE OF CONTENTS
(Continued)
Provision Serial Page
7.7 Divisible Surplus. . . . . . . . . . . . . . . . . 720
7.8 Limit on Assignment. . . . . . . . . . . . . . . . 720
7.9 Certificates . . . . . . . . . . . . . . . . . . . 720
7.10 Entire Contract - Construction . . . . . . . . . . 720
SCHEDULES
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-1000-87 (24)
TC-110
1.1 CONTRIBUTIONS:
(a) Regular Contributions:
The contributions which are payable under this contract for a
Participant are the Qualified Retirement Contributions (see
SECTION 219(e)(1)(B) of the Federal Internal Revenue Code) the
Participant has 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.
No contribution may be made for a Participant in or after his tax year
in which he reaches age 70 1/2. Tax year means the one for Federal
Income Tax Purposes.
Any contribution for a Participant made on other than a periodic basis
may not be less than $500.
The contributions made for a Participant for any of his tax years are
subject to certain limits. They may not exceed $2,000, or his total
earnings in the year if less, or any higher amount permitted under the
Internal Revenue Code. If made after the end of a tax year, they are
made in the next year before the filing date for his tax return in that
year. (For most Participants, tax years and calendar years are the
same.)
A contribution may be made for a non-working spouse of a Participant.
However, the sum of the contribution made for the working and non-
working spouses may not exceed $2250 for any tax year, or any higher
amount permitted by the Internal Revenue Code. (A non-working spouse for
whom a contribution is made is a Participant.)
(To save words, male pronouns are used in this contract to refer to both
men and women.)
(b) Rollover Contributions:
An amount which qualified as a rollover contribution pursuant to the
Federal Internal Revenue Code may be transferred to and paid under this
contract as a contribution for a Participant. Prudential may require
proof that the amount paid so qualifies.
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 as directed by
the Participant. Prudential will establish a separate "Participant's
Account" with respect to each Subaccount in which contributions are
invested on behalf of a Participant. Each Account is expressed in Units of
the applicable Subaccount.
GVA-1000-87(24)
Serial 100 1.1-1.3
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.
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.
A Participant has a non-forfeitable interest in his Accounts. The 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. Similarly, 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 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.
A Participant may have other Accounts for Qualified Retirement
Contributions 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. This change 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
Participant's withdrawal (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-1000-87(24)
Serial 110 1.3-1.4
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 it 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-1000-87 (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-1000-87 (24) (as modified by GAA-7655)
Serial 210 2.3-2.4
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
from the assets of the Portfolio: annual rate of .40%.
GVA-1000-87 (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-1000-87 (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 annual
from the assets of the Portfolio: rate of .60%.
GVA-1000-87 (24)
Serial 220-AM 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 annual
from the assets of the Portfolio: rate of .55%.
GVA-1000-87 (24)
Serial 220-CM 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-1000-87 (24) (as modified by GAA-7655)
Serial 220-SI 2.4
VCA-24-GE
Subaccount: Global Equity Subaccount invested
in the Global Equity Portfolio of
PSF (VCA-24-GE).
Investments: Primarily common stocks and common
stock equivalents of foreign and
domestic issuers.
Unit name: VCA-24-GE 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 0.75%.
GVA-1000-87 (24) (as modified by GAA-7836)
Serial 220-GE 2.4
VCA-24-GS
Subaccount: Government Securities Subaccount
invested in the Government
Securities Portfolio of PSF
(VCA-24-GS).
Investments: Intermediate and long-term U.S.
Treasury securities and debt
obligations issued by agencies of or
instrumentalities established,
sponsored or guaranteed by the U.S.
Government.
Unit name: VCA-24-GS 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 0.40%.
GVA-1000-87 (24) (as modified by GAA-7834)
Serial 220-GS 2.4
Provision III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS:
3.1 PARTICIPANT'S WITHDRAWAL:
A Participant may make withdrawals from his Participant's Accounts. The
minimum withdrawal from any single Account is $500, or the dollar value of
that Account if smaller. Payment to the Participant 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 Participant 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 $0.07
Next 36 months 0.06
Next 60 months 0.04
Next 60 months 0.03
Thereafter 0.00
*Or, if earlier, the day an Account was established for him under a
companion contract (or under a similar contract if section 3.5 applies).
**No charge is made after the amount withdrawn equals the contributions made
for the Participant.
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 has been cancelled,
the dollar value will be paid to his Beneficiary (see section 7.6). The
payment will be made in one sum unless the Participant has directed
Prudential to purchase an annuity for the Beneficiary. Instead of a one sum
payment, the Beneficiary may elect to have the dollar value of the
Participant's Account applied to purchase an annuity. A one sum payment will
be made on the fifth anniversary of the Participant's death if no other
election has been made by then. However, proof of the Participant's death
must be received by Prudential before any payment will be made.
GVA-1000-87(24)
Serial 300 3.1-3.2
The annuity form may be any of those described in section 4.4. If annuity
payments are to start at a future date, the Participant's Account will be
maintained for the Beneficiary in the same manner as for the Participant.
The date for payments to start must be on or before the fifth anniversary of
the Participant's death. No contributions may be made to the Account after
the Participant's death.
If a one sum payment is made to the Beneficiary within one year of the
Participant's death, it will be at least equal to the contributions made for
him under this contract less any withdrawals and transfers.
As of the first day no amounts remain in any of the Participant's Accounts
hereunder or in an Account with respect to a Participant under a companion
contract, the Participant's Accounts are cancelled. Section 3.1 does not
apply.
3.3 TRANSFERS BETWEEN RELATED CONTRACTS:
A Participant may transfer an amount from one or more of his 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 the 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 Participant's Account.
Amounts may be transferred to this contract from a companion contract and
will be added to one or more Subaccounts as directed by the Participant. 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 part of the amount transferred which
is investment income will not be considered as a contribution.
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.
This section may be changed as provided in section 5.1.
3.4 TRANSFERS TO ANOTHER FINANCIAL INSTITUTION:
(a) At the Request of a Participant:
The Withdrawal Value of any of the Participant's Accounts may be
transferred to another financial institution. The transfer may be made
directly to that institution or by a payment (or payments) to the
Participant 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.
GVA-1000-87(24)
Serial 310 3.3-3.4
(b) At the Contract-Xxxxxx's Request:
The Contract-Holder may request Prudential to make transfer payments on
behalf of all Participants to a financial institution named in the
request. The transfer payment will be made on the Transfer Date. The
Transfer Date is the later of the day specified in the request and the
90th day after its receipt by Prudential.
Prudential will promptly notify each Participant, and each Beneficiary
of a deceased Participant whose Accounts have not been cancelled, that
the request has been received. Each notified person may elect, within 30
days following his receipt of the notice from Prudential, to have one or
more of his Accounts cancelled and included in the transfer payment to
be made. Each person who does not make this election will have his
Account or Accounts retained under this contract pursuant to its terms.
The Account or Accounts of Participants and Beneficiaries who make the
election 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.
The Contract-Holder may notify Prudential that this section 3.4(b) is to
be inoperative.
This section may be changed as provided in section 5.1.
3.5 TRANSFERS INVOLVING A SIMILAR CONTRACT OF ANOTHER EMPLOYER:
A Participant may cease to be employed by the Contract-Holder. He may become
employed by an employer to whom Prudential has issued a contract similar to
this contract. If so, that Participant may request a transfer to that
similar contract from this contract. The transfer will normally be made
within seven days of receipt of the request. The dollar value of all of the
Participant's Accounts will be the amount transferred. The Accounts will be
cancelled.
Also, this contract will accept a transfer from a contract similar to this
contract for a person covered thereunder who becomes employed by
Contract-Xxxxxx. The transferred amount will be treated as a contribution
paid for that person and will be added to one or more Subaccounts as
directed by the Participant. However, in determining any withdrawal charge,
any part of the transferred amount which is investment income will not be
considered a contribution.
This section may be changed as provided in section 5.1.
GVA-1000-87(24)
Serial 320 3.5
Provision IV. ANNUITIES:
4.1 ANNUITY ELECTIONS:
A Participant may, upon notice to Prudential, elect to have his
Participant's Accounts applied to purchase an annuity for him. The dollar
value of the Accounts will be applied. The schedule of annuity purchase
rates that applies is determined from Schedule A. The monthly amount of any
annuity is determined from the schedule of purchase rates for that annuity.
As of the first day no amounts remain in any of the Participant's Accounts
or in an Account for him under a companion contract, his Accounts hereunder
are cancelled.
If the Participant's Accounts have not been cancelled before the end of the
calendar year in which he reaches age 70 1/2, a 120 monthly Payment Certain
annuity will be purchased for him at the end of that year (see section 4.4).
4.2 ANNUITY - SINGLE SUM PAYMENT COMBINATION:
A Participant may elect that only a portion of one or more of his
Participant's Accounts be applied to purchase an annuity with the balance
being paid in a single sum. The portion used to purchase an annuity will be
subject to section 4.1 and the balance to section 3.1.
4.3 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
4.1.
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 Participant unless he directs payment to a
named financial institution. The Annual Account Charge will be made only if
no Accounts remains for him under any companion contract.
4.4 TERMS OF PAYMENT OF ANNUITIES:
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.
GVA-1000-87(24)
Serial 400 4.1-4.4
(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.
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 payment 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.
No form of annuity will be purchased for a Participant which provides for
payments
(i) over a period longer than his life, or his and his spouse's life, or
(ii) over a term certain extending beyond his life expectancy, or his and
his spouse's combined life expectancy.
No form of annuity will be purchased for a Beneficiary which provides for
payments
(iii) over a period longer than his life, or
(iv) over a term certain extending beyond his life expectancy.
4.5 PAYEES:
Each annuity payment will be made to the Annuitant, Contingent Annuitant or
Beneficiary entitled to receive it.
GVA-1000-87(24)
Serial 410 4.5
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 his second anniversary of the
Effective Date.
(b) The effective annual rate of the Administrative Expense Charge, the
minimum dollar contribution made on other than a periodic basis, 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. Notice of changes, other than in the schedules of purchase
rates, will also be given to Participants.
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 CHANGES TO CONFORM TO LAW:
Prudential may change this contract as, in its discretion, it deems
appropriate to satisfy the requirements of any law or regulation
administered by a governmental agency regulating Qualified Retirement
Contributions funding arrangements.
5.4 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-1000-87 (24)
Serial 500 5.1-5.4
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) 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.
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 payments are payable from this contract.
GVA-1000-87(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 or specified powers and
responsibilities.
7.2 COMMUNICATIONS:
All communication 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 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-1000-87(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 effect such 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 BENEFICIARY:
If, as to any person, this contract provides for the payment of an amount or
amounts after the person dies to a Beneficiary other than the person's
Contingent Annuitant, payment will be made to the Beneficiary the person
named. A person for whom an Account is held or an annuity is being paid
under this contract may name a Beneficiary to replace one previously named.
However, the Participant may instruct Prudential that his Contingent
Annuitant or Beneficiary is not to have this right to name a Beneficiary.
A Beneficiary may be named by filing a request with Prudential on a form
acceptable to it. It will become effective when entered on Prudential's
records. It will apply to any amounts payable after the request was received
by Prudential, except any withdrawals and payments made before the request
was entered on Prudential's records. Prudential will acknowledge the naming
of a Beneficiary.
GVA-1000-87(24)
Serial 710 7.4-7.6
The interest of any Beneficiary who dies before the Participant ceases upon
that Beneficiary's death. If there is no named Beneficiary when an amount
is payable to one, payment will be made to the estate of the last to die of
the Participant or Annuitant, his Contingent Annuitant, and his
Beneficiary. If a payment would be made to the estate of a Participant or
Annuitant, Prudential may make the payment to any one or jointly to any
number of his surviving relatives: spouse, children, parents, brothers or
sisters.
Prudential, in determining whether a person is a relative of a Participant
or Annuitant or is a Beneficiary entitled to payment, may rely solely on
any evidence it deems acceptable. Each payment Prudential makes in reliance
thereon will be a valid discharge of its obligation under this contract as
to that payment.
If a series of payments becomes payable to a Beneficiary and the first
payment is less than $50, Prudential may choose to make payment in one sum.
Also, if the payee is not a natural person and a series of payments is
payable, Prudential may choose to make a payment in one sum. The one sum
payment will be equal to the value of the series of payments discounted at
interest from each payment due date to the date of the one sum payment. The
discount interest rate will be the interest rate in the schedule of annuity
purchase rates used to establish the series of payments.
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 LIMIT ON ASSIGNMENT:
To the extent applicable law requires, the interests in and payments from
this contract are not assignable or subject to the claims of any creditor.
7.9 CERTIFICATES:
Prudential will issue a certificate for each annuity which is effected
under this contract. If any law requires, Prudential will issue a
certificate to a Participant for whom an annuity has not yet been effected.
A certificate will be descriptive of the Participant's or Annuitant's
rights and duties under the contract.
7.10 ENTIRE CONTRACT -- CONSTRUCTION:
This document constitutes the entire contract.
This contract will be construed according to the laws of the jurisdiction
set forth on the first page.
GVA-1000-87(24)
Serial 720 7.7-7.10
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-1000-87 (24)
Serial A-100 Schedule A
402-234
1/91
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 1991 1992 1995 2000
--- ---- ---- ---- ----
60 $52.33 $41.17 $40.58 $39.85
65 57.26 46.33 45.60 44.68
70 63.55 52.88 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 1991 1992 1995 2000
--- ---- ---- ---- ----
If specified percentage to Contingent Annuitant is 100%:
60 $46.81 $35.76 $35.31 $34.78
65 50.50 39.68 39.10 38.39
70 55.74 45.10 44.32 43.32
If specified percentage to Contingent Annuitant is 50%:
60 $49.80 $38.53 $38.00 $37.34
65 54.44 43.30 42.61 41.75
70 60.92 49.83 48.92 47.71
SCHEDULE D - Payment Certain Annuity
Monthly Amount
Number of If date the annuity is purchased is in:
Payments Certain 1991 1992 1995 2000
---------------- ---- ---- ---- ----
60 $173.19 $165.26 $164.73 $164.73
120 97.11 88.74 88.45 88.45
180 72.24 63.41 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-1000-87(24)
Serial S-100 Schedules B-D
