CONTRACT Group Annuity Xxxxxxxx Xx. XX 0000
XXXXXXXX XXXXXX Xxxxxx Xxxxxx Trust Company of New York
as Trustee under the Members Retirement
Trust of The Equitable Life Assurance
Society of the United States and the
Pooled Trust for Members Retirement Plans
of The Equitable Life Assurance Society
of the United States
REGISTER DATE [May 1, 1993]
This Contract is issued in consideration of the payment to Equitable of the
Contributions made hereunder.
ASSETS HELD IN CONNECTION WITH THIS CONTRACT MAY BE HELD IN THE SEPARATE ACCOUNT
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
SECTION 2.03 OF THIS CONTRACT.
The provisions of this contract, which include the following pages, are agreed
to by the Contract Holder and Equitable.
FOR THE CONTRACT HOLDER FOR THE EQUITABLE
By By
----------------------------- -------------------------------
Chairman of the Board
Title
----------------------------- By -------------------------------
President and
Chief Executive Officer
Dated By
----------------------------- -------------------------------
Vice President and Secretary
At New York, New York By
----------------------------- -------------------------------
(Head Office) Assistant Registrar
Date of Issue
------------------
INTEREST RATE GUARANTEE - FIXED ANNUITY BENEFITS
No. 1033-92 NON-PARTICIPATING
TABLE OF CONTENTS
PART I - DEFINITIONS
Section 1.01 - Accumulation Unit 4
Section 1.02 - Accumulation Unit Value 4
Section 1.03 - Active Loan 4
Section 1.04 - Annuity Benefit 4
Section 1.05 - Annuity Commencement Date 4
Section 1.06 - Benefit Distribution 4
Section 1.07 - Business Day 4
Section 1.08 - Calculation Date 5
Section 1.09 - Cash Value 5
Section 1.10 - Class of Employer 5
Section 1.11 - Code 5
Section 1.12 - Contingent Withdrawal Charge 5
Section 1.13 - Contract Date 5
Section 1.14 - Contract Year 5
Section 1.15 - Contribution 6
Section 1.16 - Disability 6
Section 1.17 - Divisions 6
Section 1.18 - Employer 6
Section 1.19 - Employer Plan 6
Section 1.20 - Employer Plan Trustee 6
Section 1.21 - Forfeiture Account 6
Section 1.22 - Guaranteed Interest Rate 7
Section 1.23 - Investment Divisions 7
Section 1.24 - Market Value Adjustment 7
Section 1.25 - Master Trust 8
Section 1.26 - Minimum Guaranteed Rate 9
Section 1.27 - Net Investment Factor 9
Section 1.28 - Old Plan Takeover Loan 9
Section 1.29 - Participant 9
Section 1.30 - Plan 9
Section 1.31 - Pooled Trust 9
Section 1.32 - Processing Office 9
Section 1.33 - Retirement Account Value 10
Section 1.34 - Separate Account 10
Section 1.35 - Source 10
Section 1.36 - Terminated Plan Notice 11
Section 1.37 - Terminated Plan Participant 11
Section 1.38 - Transaction Date 11
Section 1.39 - Trusteed Plan 11
Section 1.40 - Valuation Period 11
No. 1033-92 AC6704 Page 2
TABLE OF CONTENTS - CONT'D
PART II - RETIREMENT ACCOUNT VALUE
Section 2.01 - Contribution 12
Section 2.02 - Transfers of Unallocated Amounts 12
Section 2.03 - Separate Account 12
Section 2.04 - Guaranteed Interest Division 13
Section 2.05 - Allocation of Contributions to Divisions 14
Section 2.06 - Transfers among Divisions 15
Section 2.07 - Withdrawal and Termination 16
Section 2.08 - Death Benefits 19
Section 2.09 - Withdrawals to Make Employer Plan 20
Loans To Participants
Section 2.10 - Fees and Charges 22
Section 2.11 - Forfeitures 24
PART III - ANNUITY BENEFITS
Section 3.01 - Form of Annuity Benefit 25
Section 3.02 - Report for Annuity Benefit 25
Section 3.03 - Application to Provide Annuity Benefit 25
Section 3.03 - Payment of Annuity Benefit 25
PART IV - GENERAL PROVISIONS
Section 4.01 - Contract 27
Section 4.02 - Statutory Compliance 27
Section 4.03 - Assignments and Nontransferability 27
Section 4.04 - Manner of Payment 28
Section 4.05 - Right to Change 28
Section 4.06 - Beneficiary 29
Section 4.07 - Deferment 29
Section 4.08 - Contract Holder's Responsibility 30
Section 4.09 - Employer's and Employer Plan
Trustee's Responsibility 30
Section 4.10 - Plan Status 30
APPENDIX A - Table of Guaranteed Annuity Payments 32
No. 1033-92 AC6704 Page 3
PART I - DEFINITIONS
SECTION 1.01 ACCUMULATION UNIT. The term "Accumulation Unit" means a unit which
is purchased in an Investment Division of the Separate Account when an amount is
allocated or transferred thereto and which is a measure used by Equitable in
determining the amount held with respect to a Participant in such Investment
Division.
SECTION 1.02 ACCUMULATION UNIT VALUE. The term "Accumulation Unit Value" means
the dollar value of each Accumulation Unit in a given Investment Division on a
given date. Such value, for a given Valuation Period, is equal to the
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for the given Period.
SECTION 1.03 ACTIVE LOAN. The term "Active Loan" means the principal amount of
any loan made to a Participant pursuant to Section 2.09 or any Old Plan Takeover
Loan, which, in either case, is neither fully repaid nor deemed distributed
under Section 72(p) of the Code.
SECTION 104 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Part III of this Contract.
SECTION 1.05 ANNUITY COMMENCEMENT DATE. The term "Annuity Commencement Date"
means a date, determined by the Employer or the Employer Plan Trustee and
reported in writing to Equitable pursuant to Section 3.04, as of which payments
under an Annuity Benefit are to begin.
SECTION 1.06 BENEFIT DISTRIBUTION. The term "Benefit Distribution" means
payments with respect to a Participant under the terms of the Employer Plan as
distributions therefrom in any of the following circumstances:
(a) As a result of the Participant's retirement, death, or Disability;
(b) As a result of the Participant's separation from service with the
Employer, provided such separation from service would qualify as such
under Section 402(e)(4)(A) of the Code as in effect under the Tax
Reform Act of 1986;
(c) In connection with a minimum distribution made on or after the
Participant's Required Beginning Date, as defined in Section 401(a)(9)
(c) of the Code; and
(d) As a result of an in-service withdrawal from the Employer Plan other
than one involving a direct rollover from this Contract to an
individual retirement arrangement or qualified plan not funded by an
Equitable contract.
SECTION 1.07 BUSINESS DAY. The term "Business Day" means, generally, any day on
which Equitable is open and the New York Stock Exchange is open for trading. For
purposes of determining the Transaction Date, Equitable's Business Day ends at
4:00 P.M., Eastern Time.
No. 1033-92 AC6704 Page 4
SECTION 1.08 CALCULATION DATE. The term "Calculation Date" means the Business
Day, occurring no more than five Business Days before the date of a payment, as
of which Equitable determines a Market Value Adjustment with respect to an
Employer Plan for which Equitable has received a Plan Termination Notice.
SECTION 1.09 CASH VALUE. The term "Cash Value" means an amount equal to the
Retirement Account Value with respect to a Participant, minus any Contingent
Withdrawal Charge and/or, with respect to an Employer Plan for which Equitable
has received a Plan Termination Notice, any Market Value Adjustment applicable
pursuant to Section 2.10.
SECTION 1.10 CLASS OF EMPLOYERS. The term "Class of Employers" means the
category to which Equitable assigns an Employer Plan upon such Employer's or the
Employer Plan Trustee's adoption of this Contract as a funding vehicle of the
Employer Plan. Employer Plans whose Contract Dates occur within a given calendar
year will belong to the same Class of Employers, except that Equitable may at
any time (a) close a Class of Employers and begin a new Class of Employers, or
(b) combine two or more Classes of Employers.
SECTION 1.11 CODE. The term "Code" means the Internal Revenue Code, as now or
hereafter amended, or any corresponding provisions of prior or subsequent United
States revenue laws.
SECTION 1.12 CONTINGENT WITHDRAWAL CHARGE. The term "Contingent Withdrawal
Charge" means an amount equal to the lesser of the amounts defined in (a) or (b)
as follows:
(a) An amount equal to 6% of the amount to be withdrawn (including such
Contingent Withdrawal Charge);
(b) An amount equal to (i) minus (ii) as follows:
(i) the product of (A) 8.5% of all Contributions received for each Source
with respect to the Participant under this Contract, and (B) a
percentage representing the vested portion of each Source affected by
such withdrawal;
(ii) the sum of any prior Contingent Withdrawal Charges made with respect
to the Participant under this Contract.
SECTION 1.13 CONTRACT DATE. The term "Contract Date" means, with respect to the
Employer Plan, the date as of which the first Contribution was received under
this Contract with respect to such Employer Plan.
SECTION 1.14 CONTRACT YEAR. The term "Contract Year" means, with respect to an
Employer Plan, the twelve months' period beginning on (a) the Contract Date and
(b) each anniversary of such Date, unless otherwise agreed to in writing by
Equitable.
SECTION 1.15 CONTRIBUTION. The term "Contribution" means any amount received
from the Employer or the Employer Plan Trustee pursuant to Section 2.01 with
respect to a Participant.
No. 1033-92 AC6704 Page 5
SECTION 1.16 DISABILITY. The term "Disability" means, with respect to a
Participant, the inability to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be
expected to result in death or to be of long, continued and indefinite duration,
presumably for life, as determined by the Employer on the basis of either (a) a
written determination by the Social Security Administration that disability
payments under the Social Security Act have been approved; or (b) other evidence
satisfactory to Equitable of such condition.
SECTION 1.17 DIVISIONS. The terms "Division" or "Divisions" mean, with respect
to an Employer Plan, one or more, as the case may be, of the following options
which the Employer or Employer Plan Trustee has elected to be applicable under
this Contract to the Employer Plan:
(a) the Guaranteed Interest Division, and
(b) the respective Investment Divisions of the Separate Account.
Such election must be on Equitable's form, subject to Equitable's rules then in
effect, and may be changed from time to time with respect to subsequent
transactions. Any such election which does not include any Type B Investment
Divisions must include election of the Guaranteed Interest Division.
SECTION 1.18 EMPLOYER. The term "Employer" means an employer who has adopted an
Employer Plan.
SECTION 1.19 EMPLOYER PLAN. The "Employer Plan" means a defined contribution
plan adopted by the Employer that is intended to meet the requirements for
qualification under Section 401(a) of the Code and that participates in this
Contract pursuant to the Master Trust or the Pooled Trust.
SECTION 1.20 EMPLOYER PLAN TRUSTEE. The term "Employer Plan Trustee" means the
person or persons named as trustee under a Trusteed Plan, and such trustee's
successors.
SECTION 1.21 FORFEITURE ACCOUNT. The term "Forfeiture Account" means an
unallocated account maintained by Equitable under this Contract in conjunction
with the operation of Section 2.11. Amounts arising from reductions in
Retirement Account Values pursuant to Section 2.11 will be allocated thereupon
to the Forfeiture Account, pending disposition of such amounts (and interest
thereon) as determined by the Employer or the Employer Plan Trustee. Such
account will be maintained exclusively in either (a) the Money Market Division,
if such Division is then applicable under this Contract with respect to the
Employer Plan, or (b) the Guaranteed Interest Division in any other case.
SECTION 1.22 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annualized rates Equitable establishes from time to time at which
interest is credited on amounts in the Guaranteed Interest Division. Before each
calendar year, Equitable will establish a guaranteed minimum interest rate for
each Class of Employers for such year. Such rate will not be less than the
Minimum Guaranteed Rate. Equitable guarantees that the amount of interest it
credits
No. 1033-92 AC6704 Page 6
during a calendar year will not be less than the amount calculated at the annual
guaranteed minimum rate in effect during such calendar year.
SECTION 1.23 INVESTMENT DIVISIONS. The terms "Investment Division" or
"Investment Divisions" mean, with respect to an Employer Plan, any one or more,
as the case may be, of those Investment Divisions of the Separate Account then
available under this Contract which the Employer or Employer Plan Trustee has
elected, pursuant to Section 1.17, to be applicable under this Contract to the
Employer Plan.
The Investment Divisions of the Separate Account are classed as Type A
Investment Divisions and Type B Investment Divisions:
TYPE A TYPE B
INVESTMENT DIVISIONS INVESTMENT DIVISIONS
-------------------- --------------------
o The Stock Division o The Conservative Investor
o The Balanced Division Division
o The Aggressive Stock Division o The High Yield Division
o The Global Division o The Intermediate Government
o The Growth Investors Division Securities Division
o The Money Market Division
o The Short-Term World Income Division
An election, if any, of one or more of the Type B Investment Divisions by the
Employer or Employer Plan Trustee must include, at minimum, the Money Market
Division.
SECTION 1.24 MARKET VALUE ADJUSTMENT
(1) The term "Market Value Adjustment" means the greater of (a) zero, and
(b) a percentage representing the amount described in (i) divided by the
amount described in (ii) as follows:
(i) the sum of all market value adjustments for quarterly generations
in the Guaranteed Interest Division, as determined pursuant to
Paragraph (2) of this Section, with respect to the Employer Plan
as of the effective date of the withdrawal;
(ii) the amount held in the Guaranteed Interest Division with respect
to the Employer Plan as of the effective date of the withdrawal.
(2) For purposes of such calculation, the Guaranteed Interest Division will
be deemed to consist of a series of quarterly generations, one for each
calendar quarter in which the Employer Plan participated in the
Guaranteed Interest Division.
The market value adjustment for each such quarterly generation is the
product of (a), (b) and (c) as follows:
(a) The amount of the Employer Plan's net cash flow in the given
quarterly generation as of the effective date of the withdrawal;
No. 1033-92 AC6704 Page 7
(b) The rate equal to (i) minus (ii) as follows:
(i) The interest rate, as of the applicable Calculation Date, for a
five-year Treasury bond;
(ii) The average interest rate, during the calendar quarter in which
such quarterly generation was first established, for five-year
Treasury bonds, subject to the following provisions of this
Section;
(c) The fraction equal to the number of calendar days from the
effective date of the withdrawal which occasioned this
calculation to the maturity date for the given quarterly
generation over 365. Such maturity date will be the quinquennial
anniversary of the first Business Day of the given quarterly
generation.
(3) The average interest rate to be used for purposes of Paragraph
(2)(b)(ii) above with respect to a given quarterly generation whose
first Business Day was more than five years before the Calculation Date
will be determined as follows: such rate will be the average interest
rate for the most recent calendar quarter whose first Business Day was a
quinquennial anniversary of the first Business Day of the given
quarterly generation.
(4) The Employer Plan's net cash flow in a given quarterly generation is the
sum of all allocations and transfers to, minus all withdrawals,
deductions and transfers from the Guaranteed Interest Division with
respect to such quarterly generation. Equitable may, to the extent that
any such data is unavailable on the Calculation Date, estimate the
applicable amount on the basis of appropriate historical data.
(5) The interest rate on a five-year Treasury bond will be determined by
using the applicable rate of interest (on an annual effective yield
basis) specified in the United States Treasury Department's Constant
Maturity Series for that date. If the interest rate associated with a
five-year Treasury bond is not available in that series, the rate will
be determined by linear interpolation between the next lower and next
higher abatable maturities. The source for the United States Treasury
Department's Constant Maturity Series will be the Federal Reserve
Statistical Release F.15 Bulletin. If for any reason this series is not
available, the interest rate will be based on a comparable series.
(6) Equitable may at any time substitute a bond of different maturity for
the five-year Treasury bond referred to in this Section 1.24, provided
that (a) any such change will apply only to Employer Plans who begin
participation under this Contract after such change, and (b) such change
will be made by advance written notice to the applicable Employers and
Employer Plan Trustees. In such event, the references in this Section
1.24 to "five years" and "quinquennial anniversary" will be deemed to
have been correspondingly changed.
SECTION 1.25 MASTER TRUST. The term "Master Trust" means the Members Retirement
Trust of The Equitable Life Assurance Society of the United States.
No. 1033-92 AC6704 Page 8
SECTION 1.26 MINIMUM GUARANTEED RATE. The term "Minimum guaranteed Rate" means,
with respect to the Guaranteed Interest Division, an effective annual minimum
rate of interest equal to 3%.
SECTION 1.27 NET INVESTMENT FACTOR. The term "Net Investment Factor" means, with
respect to each Investment Division of the Separate Account for a Valuation
Period, the amount described in the following Clause (a) divided by the amount
described in the following Clause (b), minus the amount described in the
following Clause (c), where:
(a) is the net asset value of the shares of the designated trust or
investment company that belong to the Investment Division at the end of
the Valuation Period (including the per share amount of any dividend or
capital gain distribution paid to the Investment Division in the
current Valuation Period), before giving effect to any amounts
allocated to or withdrawn from the Investment Division for the
Valuation Period, but after any amounts charged against the Investment
Division in the Valuation Period for taxes;
(b) is the net asset value of the shares of the designated trust or
investment company that belonged to the Investment Division at the end
of the preceding Valuation Period, after giving effect to any amounts
allocated to or withdrawn from the Investment Division for that
Valuation Period; and
(c) is the daily asset charge for expenses of the Investment Division in
accordance with Section 2.10, Paragraph (3) times the number of
calendar days in the Valuation Period.
The net asset value of the shares of a designated trust or investment company
held by an Investment Division will be the value reported to Equitable by that
trust or investment company. Such net asset value is after deduction for
investment advisory fees and direct operating expenses of the designated trust
or investment company.
SECTION 1.28 OLD PLAN TAKEOVER LOAN. The term "Old Plan Takeover Loan" means a
loan which was established under the Employer Plan before the Contract Date and
which has been transferred to this Contract as an Active Loan.
SECTION 1.29 PARTICIPANT. The term "Participant" means an individual whom the
Employer or Employer Plan Trustee has reported to Equitable as a participant
under the Employer Plan and who has been enrolled by Equitable under this
Contract.
SECTION 1.30 PLAN. The term "Plan" means the Members Retirement Plan of The
Equitable Life Assurance Society of the United States.
SECTION 1.31 POOLED TRUST. The term "Pooled Trust" means the Pooled Trust for
Members Retirement Plans of The Equitable Life Assurance Society of the United
States.
SECTION 1.32 PROCESSING OFFICE. The term "Processing Office" means Momentum
Administrative Service, X.X. Xxx 0000, Xxx Xxxx, X.X. 00000, or such other
location as Equitable shall designate by at least 90 day's advance written
notice to the Employer or the Employer Plan Trustee.
No. 1033-92 AC6704 Page 9
SECTION 1.33 RETIREMENT ACCOUNT VALUE. The term "Retirement Account Value" means
the sum of the amounts held with respect to a Participant in the Guaranteed
Interest Division and in the Investment Divisions.
SECTION 1.34 SEPARATE ACCOUNT. The term "Separate Account" means pooled Separate
Account A, as described in Section 2.03, which is (a) maintained by Equitable in
accordance with the laws of New York State, and (b) registered with the
Securities and Exchange Commission under the Investment Company Act of 1940 as a
unit investment trust, a type of investment company.
SECTION 1.35 SOURCE. The term "Source" means any of the following sources of
Contributions under the Employer Plan, as determined by the Employer or Employer
Plan Trustee and reported to Equitable in conjunction with Contributions
remitted pursuant to Section 2.01:
(a) Employer Contributions: Contributions made by the Employer for the
benefit of Participants and beneficiaries, other than those
Contributions described in Clauses (b) and (e) below.
(b) Matching Contributions: Contributions made by the Employer and allocated
to a Participant's account under the Employer Plan by reason of the
Participant's Post-Tax Contributions or Salary Deferral Contributions
made to the Employer Plan.
(c) Post-Tax Contributions: After-tax contributions made by a Participant in
accordance with the terms of the Employer Plan.
(d) Salary Deferral Contributions: Contributions to an Employer Plan made by
a Participant pursuant to a cash or deferred election (normally in
accordance with the terms of a qualified cash or deferred arrangement
under Section 401(k) of the Code).
(e) Qualified Non-Elective and Qualified Matching Contributions:
Contributions made by the Employer to meet the requirements of either or
both of the nondiscrimination tests set forth in Section 401(k) and
Section 401(m) of the Code.
(f) Prior Plan Contributions: Contributions transferred or rolled-over to an
Employer Plan from another qualified plan.
No. 1033-92 AC6704 Page 10
SECTION 1.36 TERMINATED PLAN NOTICE. The term "Terminated Plan Notice" means an
advance written notice which an Employer or Employer Plan Trustee has, in
accordance with Section 4.10, provided to Equitable that the Employer Plan is
being terminated, in whole or in part, in accordance with applicable law and
without a successor plan sponsored by the Employer.
SECTION 1.37 TERMINATED PLAN PARTICIPANT. The term "Terminated Plan Participant"
means a Participant who, as reported to Equitable by the Employer or Employer
Plan Trustee in accordance with Section 4.10, is included in a termination or
partial termination of the Employer Plan.
SECTION 1.38 TERMINATED PLAN PARTICIPANT. The term "Transaction Date" means (a)
the Business Day on which Equitable receives a Contribution or an acceptable
request for a transaction at its Processing Office, or (b) the Business Day
coninciding with or next following the date specified in the request, if later;
provided with respect to Clause (a) immediately above, however, that if such
Contribution or request reaches the Processing Office on other than a Business
Day, or after the close of the Business Day, the Transaction Date will be the
next following Business Day.
SECTION 1.39 TRUSTEED PLAN. The term "Trusteed Plan" means an Employer Plan
under which there is maintained a trust, other than the Master Trust or Pooled
Trust, forming a part of the Employer Plan.
SECTION 1.40 VALUATION PERIOD. The term "Valuation Period" means, with respect
to each Investment Division of the Separate Account, each Business Day together
with any consecutive non-Business Days immediately preceding such Business Day.
No. 1033-92 AC6704 Page 11
PART II - RETIREMENT ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Each Employer or Employer Plan Trustee will remit as
Contributions hereunder all amounts maintained with respect to the Employer Plan
and all amounts directed thereto as contributions, unless Equitable agrees
otherwise in writing, or unless, and to the extent that, such remittance is to
cease in accordance with the provisions of this Contract.
The Employer or the Employer Plan Trustee will specify the Participant with
respect to whom each such Contribution is being remitted, the Source to which
such Contribution relates, and the allocation by Source of such Contribution
among the Divisions.
Equitable reserves the right to discontinue acceptance of Contributions under
this Contract with respect to all Employer Plans by giving 120 days' advance
written notice to the Employers and Employer Plan Trustees.
SECTION 2.02 TRANSFERS OF UNALLOCATED AMOUNTS. Anything in this Contract to the
contrary nontwithstanding, with respect to an Employer Plan for which amounts
are being transferred on or after the Contract Date from another funding
vehicle, if the Employer or Employer Plan Trustee advises Equitable that it
cannot provide Equitable on or before the date of such transfer with the
corresponding Participant-level information normally required pursuant to this
Contract, such transferred amounts may be remitted as Contributions hereunder on
an unallocated basis to the Divisions, subject to Equitable's rules. While such
assets remain unallocated, Equitable will (a) treat such amounts as one
Retirement Account Value, with the Employer or Employer Plan Trustee as sole
Participant, and (b) rely fully upon the advice of the Employer or Employer Plan
Trustee for any Participant-level information required to process transactions
hereunder.
Any Employer or Employer Plan Trustee which transfers amounts on an unallocated
basis to this Contract agrees to provide Participant-level information as soon
thereafter as is practicable. If such information is not received within such
period as Equitable deems reasonable under its rules, Equitable shall have the
right to pay to the Employer or the Employer Plan Trustee the applicable Cash
Value.
SECTION 2.03 THE SEPARATE ACCOUNT. Realized and unrealized gains and losses from
the assets of the Separate Account are credited or charged against it without
regard to Equitable's other income, gains or losses. Assets are allocated to the
Separate Account to support this Contract and other contracts.
The assets of the Separate Account are the property of Equitable. The portion of
its assets equal to the reserves and other contract liabilities with respect to
the Separate Account will not be chargeable with liabilities arising out of any
other business Equitable conducts. Equitable may transfer assets of an
Investment Division in excess of the reserves and other liabilities with respect
to such Investment Division to another Investment Division or to Equitable's
General Account.
The Separate Account consists of the Investment Divisions. Each Investment
Divisions may invest its assets in a separate class (or series) of shares of a
designated trust or investment company where each class (or series) represents a
separate portfolio in the trust or investment company.
No. 1033-92 AC6704 Page 12
Equitable will value the assets of each Investment Division on each Business
Day. Equitable may, at its discretion, invest the assets of any Investment
Division in any investment permitted by applicable law. Equitable may rely
conclusively on the opinion of counsel (including attorneys in its employ) as to
what investments it is permitted by law to make.
On any date when an amount is allocated to or withdrawn, deducted, or
transferred from an Investment Division with respect to a Participant, the
Retirement Account Value will be credited or charged, as the case may be, with
the number of Accumulation Units determined by dividing said amount by the
Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of Accumulation Units with
respect to a Participant in an Investment Division on any date is equal to (a)
the sum of all Accumulation Units that have been allocated to that Division with
respect to that Participant, minus (b) the sum of all Accumulation Units that
have been withdrawn, deducted, or transferred from that Investment Division with
respect to that Participant. The amount with respect to a Participant in an
Investment Division on any date is equal to (a) the number of Accumulation Units
with respect to that Participant in the Investment Division on that date,
multiplied by (b) the Accumulation Unit Value for the Investment Division for
the Valuation Period which includes that date.
SECTION 2.04 GUARANTEED INTEREST DIVISION. Any amount allocated or transferred
to the Guaranteed Interest Division becomes part of the general assets of
Equitable, which support the guarantees of this Contract and other contracts.
The amount with respect to a Participant in the Guaranteed Interest Division at
any time is equal to (a) the sum of all amounts that have been allocated or
transferred to the Guaranteed Interest Division with respect to that
Participant, minus (b) the sum of all amounts that have been withdrawn,
deducted, or transferred from the Guaranteed Interest Division with respect to
that Participant.
Interest, on the basis of the applicable Guaranteed Interest Rate, accrues with
respect to the Guaranteed Interest Division daily.
The guaranteed Interest Division is maintained under this Contract for the
Employer Plan subject to the following conditions:
(a) With respect to the investment option of the Employer Plan that is
funded under the Guaranteed Interest Division, to the extent that the
Employer Plan provides that allocations to, and transfers to and from,
such option are to be made solely at the discretion of the individuals
covered by the Employer Plan, such allocations and transfers shall be
made without any direction or influence from the Employer or Employer
Plan Trustee. Equitable is to be given at least 60 days advance written
notice by the Employer or Employer Plan Trustee of any noncompliance
with this condition; and
(b) The Employer or Employer Plan Trustee is to provide Equitable with any
amendment to the Employer Plan or its investment policy, any
communication by the Employer or Employer Plan Trustee to the
individuals covered by the Employer Plan concerning the Guaranteed
Interest Division or the investment option of the Employer Plan to
which it relates, or any change in the manner in which the Employer
Plan is administered with respect thereto. Any
No. 1033-92 AC6704 Page 13
such document is to be provided to Equitable at least 60 days before
its effective date and the Employer or Employer Plan Trustee will not
use such document or make such change if Equitable objects in a written
notice to the Employer or Employer Plan Trustee before such effective
date. Equitable may also request, and the Employer or Employer Plan
Trustee shall thereupon provided, any other information that Equitable
reasonably determines would bear upon the flow of funds to and from the
Guaranteed Interest Division.
If any of the foregoing conditions are not complied with, if the Employer or
Employer Plan Trustee fails to remit Contributions in accordance with Section
2.01, or if Equitable determines that an amendment to the Employer Plan, its
investment policy, or any change in the manner in which the Employer Plan is
administered would materially and adversely affect the flow of funds to or from
the Guaranteed Interest Division, then Equitable will have the right to:
(a) Decline further requests for transfers to or from the Guaranteed
Interest Division; and/or
(b) Deem the Employer Plan to be an Employer Plan under which the Employer
or Employer Plan Trustee has terminated the Employer Plan's
participation under this Contract and requested Equitable to make
payment in accordance with Section 2.07, Paragraph (4).
SECTION 2.05 ALLOCATION OF CONTRIBUTIONS TO DIVISIONS. Each Contribution
remitted with respect to a Participant will, after deduction of any applicable
charge for taxes, be allocated by Source to one or more of the Divisions as of
the Transaction Date. The percentage to be allocated to each Division is to be a
whole number and the aggregate percentage is to be 100%.
Allocation instructions will be determined pursuant to the Employer Plan and
reported to Equitable in writing by the Employer or Employer Plan Trustee,
subject to the following paragraph. Each initial Contribution with respect to a
Participant is to be preceded or accompanied by such allocation instructions.
Such instructions will be retained on file by Equitable unless and until duly
changed. Each subsequent Contribution with respect to the Participant will be
allocated in accordance with the most recent allocation instructions received
with respect to the Participant. The Employer or Employer Plan Trustee may file
revised allocation instructions at any time with respect to a Participant and
such revised instructions will apply to all transactions occurring on or after
the date the revised instructions are received in the Processing Office.
The Employer or Employer Plan Trustee may, if the Employer Plan permits, arrange
with Equitable to have Participants provide such instructions directly to
Equitable.
SECTION 2.06 TRANSFERS AMONG DIVISIONS. The Employer or the Employer Plan
Trustee, upon request to Equitable in accordance with the Employer Plan, may
transfer, with respect to any Source, amounts held for the Participant in a
Division to one or more of the other Divisions in accordance with the following
rules:
(a) Amounts in the Investment Divisions and, subject to the immediately
following Clauses (b), (c) and (d), in the Guaranteed Interest
Division, may be transferred among such Divisions:
(b) If the Investment Divisions applicable with respect to the Employer
Plan include any of the Type B Investment Divisions, then the maximum
amount that may be transferred to any or
No. 1033-92 AC6704 Page 14
all Investment Divisions with respect to a Participant from the
Guaranteed Interest Division in any period consisting of the current
and three immediately preceding calendar quarters ("Transfer Period")
will be the amount defined in (i) below or, if both (i) and (ii) below
are applicable to such Participant, the greater of the amount defined
in (i) or (ii) below:
(i) In the case of a Participant for whom either (A) a balance was
held in the Guaranteed Interest Division under this Contract as
of the last day of the calendar year immediately preceding the
current calendar quarter, or (B) amounts were transferred with
respect to the Participant from the Guaranteed Interest Division
under this Contract to any or all of the Investment Divisions in
such preceding calendar year, such maximum for the applicable
Transfer Period will be an amount equal to the greater of 25% of
such year-end balance, or the aggregate amount so transferred;
(ii) In the case of a Participant for whom an amount was allocated to
the Guaranteed Interest Division in consequence of a mass
transfer of Employer Plan funds from another funding vehicle,
such maximum for the Transfer Period in which such allocation
occurred will be an amount equal to 25% of the balance held in
the Guaranteed Interest Division with respect to the Participant
as of the date of such allocation;
(c) No transfers may be made with respect to the Participant between the
Guaranteed Interest Division and the Investment Divisions:
(i) on and after the date as of which Equitable receives a request
for withdrawal from the Guaranteed Interest Division pursuant to
Section 2.07, Paragraph (4) in connection with a termination of
the Employer Plan's participation under this Contract;
(ii) in the case of a Terminated Plan Participant, on and after the
date as of which the Terminated Plan Notice is received by
Equitable and before a period of 90 days has elapsed, except that
transfers already being made under any automatic transfer option
available from Equitable will be continued during such period;
(d) After the end of the 90-day period described in Clause (c)(ii) of this
Section, with respect to an Employer Plan for which the Type B
Investment Divisions had not been elected, the maximum amount that may
be transferred to any or all Investment Divisions with respect to a
Participant from the Guaranteed Interest Division in any period
consisting of the current and three immediately preceding calendar
quarters will be an amount equal to 25% of the balance, if any, that
was held in the Guaranteed Interest Division under this Contract as of
the last day of the aforementioned 90-day period.
Interest transferred from the Guaranteed Interest Division under any automatic
transfer option available form Equitable that transfers only interest will not
be counted in Equitable's determination of either the 25% maximum or the
preceding year's aggregate transfer, as referred to in this Section 2.06.
No. 1033-92 AC6704 Page 15
Transfers will be made as of the applicable Transaction Date, and will be
subject to Equitable's rules in effect at the time of transfer. Requests for
transfer must specify as to Source and must be in writing, subject to the
following paragraph.
The Employer or Employer Plan Trustee may, if the Employer Plan permits, arrange
with Equitable to have Participants make such transfer requests directly to
Equitable.
SECTION 2.07 WITHDRAWAL AND TERMINATION
(1) If the Employer or Employer Plan Trustee requests a partial withdrawal
from the Divisions with respect to a Participant, Equitable will,
subject to Paragraph (3) of this Section, pay as of the applicable
Transaction Date the lesser of (a) the Retirement Account Value minus
any Contingent Withdrawal Charge, or (b) the amount of partial
withdrawal requested. The amount to be paid plus any Contingent
Withdrawal Charge applicable pursuant to Section 2.10 will be withdrawn
from the amounts held with respect to the Participant in the Divisions.
(2) If the Employer or Employer Plan Trustee requests a full withdrawal
with respect to a Participant, Equitable will, subject to Paragraph (3)
of this Section, withdraw the amount held in the Divisions with respect
to the Participant and pay an amount equal to the Retirement Account
Value minus any contingent Withdrawal Charge as of the applicable
Transaction Date.
(3) If the Employer Plan is one for which a Terminated Plan Notice has been
received, any withdrawal from the Guaranteed Interest Division that is
requested by the Employer or Employer Plan Trustee on behalf of a
Terminated Plan Participant or beneficiary of such Participant, other
than one that is in connection with a Benefit Distribution covered by
Clauses (a), (b), or (c) of Section 1.06, will be made in accordance
with this Paragraph (3) in lieu of the preceding provisions of this
Section 2.07. Equitable will accept requests for such withdrawals only
after 90 days has elapsed since Equitable's receipt of the Terminated
Plan Notice. In accordance with whichever of the following provisions
applies, payment of the requested withdrawal will commence, or will be
made, within 30 days of the later of (a) receipt of such request at
Equitable's Processing Office, or (b) the end of the aforementioned
90-day period.
Equitable will, subject to the following provisions, pay such
withdrawal in annual installments over a period not to exceed 59
months, as described in paragraph (7) of this Section, and without a
Market Value Adjustment or Contingent Withdrawal Charge.
If, during such installment period, the Employer or Employer Plan
Trustee reports to Equitable that all or part of the balance of such
installments are to be paid in connection with a Benefit Distribution
covered by Clauses (a), (b), or (c) of Section 1.06, Equitable will pay
in a single sum the amount requested.
No. 1033-92 AC6704 Page 16
Equitable reserves the right to pay such withdrawal in a single sum in
lieu of such annual installments. Such single sum will be equal to the
lesser of (a) the Cash Value, or (b) the amount of withdrawal
requested; provided, however, if a Market Value Adjustment is
applicable to such withdrawal in accordance with Paragraph (5) of
Section 2.10, that such Market Value Adjustment will not exceed 7% and
will not result in such single sum payment being less than the sum of
(a) all amounts, other than interest, allocated or transferred to the
Guaranteed Interest Division with respect to the Participant and not
subsequently withdrawn, transferred or deducted therefrom, and (b)
interest on such amounts, accrued at the Minimum Guaranteed Rate.
Any amount to be paid pursuant to this Paragraph (3) plus, if
applicable, any Contingent Withdrawal Charge or Market Value Adjustment
will be withdrawn from the amounts held with respect to the Participant
in the Guaranteed Interest Division.
(4) If the Employer or Employer Plan Trustee terminates the Employer Plan's
participation under this Contract in whole or in part, Equitable (a)
will, if the Employer Plan Trustee so requests, pay the aggregate of
all amounts then held in the Investment Divisions with respect to the
Employer Plan, minus any applicable Contingent Withdrawal Charges, and
(b) may, unless Paragraph (5) of this Section is applicable, pay in
accordance with the following rules, the aggregate of all amounts then
held in the Guaranteed Interest Division with respect to the Employer
Plan:
(i) The amounts in the Guaranteed Interest Division will be paid
in annual installments over a period not to exceed 59
months, as described in Paragraph (7) of this Section.
(ii) No Contingent Withdrawal Charge or Market Value Adjustment
will be applicable with respect to the installments so paid.
(iii) Equitable will have the right to discontinue maintenance of
Participant-level Retirement Account Values under this
Contract and, in lieu thereof, to (A) treat all amounts
remaining in the Divisions as a single Retirement Account
Value, with the Employer or Employer Plan Trustee as sole
Participant and (B) rely fully upon the advice of the
Employer or Employer Plan Trustee for any Participant-level
information required to process transactions hereunder,
including but not limited to the payment of death benefits.
(iv) Anything in this Contract to the contrary notwithstanding,
any repayments of Active Loans on and after the beginning of
such installment period are to be made to the then-active
funding vehicle of the Employer Plan.
(v) On and after Equitable's receipt of the Employer's or
Employer Plan Trustee's request for payments, no other
withdrawals from, and no transfers to or from the Guaranteed
Interest Division will be made except in conjunction with
Benefit Distributions covered under Clauses (a), (b), and
(c) of Section 1.06, subject to Clause (vi) following.
No. 1033-92 AC6704 Page 17
(vi) The amount of any withdrawal for a Benefit Distribution
while such installments are in progress will be the amount
required therefor, minus any amount then held in another
funding vehicle with respect to the Employer Plan.
(vii) On and after the Employers or Employer Plan Trustee's
request for termination of the Employer Plan's participation
under this Contract, no further Contributions may be made to
the Guaranteed Interest Division with respect to the
Employer Plan.
(viii) Any amount that, pursuant to the provisions of this
Contract, would be allocated to the Guaranteed Interest
Division pursuant to Sections 1.21 and 2.08 but for the
foregoing limitations will, instead, be allocated to the
Money Market Division unless the Employer or Employer Plan
Trustee instructs Equitable, by advance written notice and
subject to such limitations, to do otherwise.
(5) If the aggregate amount held in the Guaranteed Interest Division with
respect to an Employer Plan would be payable in annual installments
pursuant to Paragraph (4) of this Section, and if such amount is less
than $25,000, Equitable will, in lieu of such installments, pay such
amount in a single sum, minus any applicable Contingent Withdrawal
Charge or Market Value Adjustment, provided such Market Value
Adjustment will not exceed 7% and will not result in such single sum
payment being less than the sum of (a) all amounts, other than
interest, allocated or transferred to the Guaranteed Interest Division
with respect to the Participant and not subsequently withdrawn,
transferred or deducted therefrom, and (b) interest on such amounts,
accrued at the Minimum Guaranteed Rate.
(6) If Equitable exercises its right to terminate the Employer Plan's
participation under this Contract pursuant to the last paragraph of
Section 2.02, Equitable will thereupon pay the Retirement Account Value
minus any Contingent Withdrawal Charge with respect to such Employer
Plan.
If the Employer Plan is not a Qualified Plan and Equitable exercises
its right to terminate the Employer Plan's participation under this
Contract pursuant to Clause (ii) of the second paragraph of Section
4.10, Equitable will pay the amounts held in the Divisions with respect
to the Employer Plan as if the Employer or Employer Plan Trustee had
terminated the Employer Plan's participation under this Contract in
accordance with Paragraph (4) of this Section 2.07.
(7) Any installments to be paid pursuant to Paragraphs (3) or (4) of this
Section will be made in accordance with the following:
(a) The first such installment will be paid on a Business Day that
is not more than a maximum number of days after receipt at
Equitable's Processing Office of the applicable request for
payment. Such maximum will be 30 days with respect to
Paragraph (3), and 7 days with respect to Paragraph (4).
(b) Each of the next four annual installments will be paid,
respectively, on the first Business Day on or after each
anniversary of the first installment.
No. 1033-92 AC6704 Page 18
(c) The final installment will be paid on the first Business Day
of the 59th calendar month following the month in which the
first installment was paid.
(d) Each such installment will be equal to the amount then in the
Guaranteed Interest Division divided by the number of
remaining installments, including the one then due.
(8) Any amount payable pursuant to the preceding paragraphs of this Section
will be paid to the Employer Plan Trustee or otherwise paid as may be
agreed upon in writing between the Employer or Employer Plan Trustee
and Equitable. Any payment by Equitable pursuant to this Section 2.07
will fully discharge Equitable from all liability with respect to the
amount paid.
SECTION 2.08 DEATH BENEFITS. Upon Equitable's receipt of evidence satisfactory
to it of the death of a Participant, a death benefit will be payable to the
beneficiary designated in accordance with Section 4.06. Such death benefit will
be equal to the Retirement Account Value as of the applicable Transaction Date.
The beneficiary or beneficiaries with respect to such death benefit may elect
any of the following methods of disposition, subject to the requirements of law
and Equitable's rules then in effect:
(a) To receive the death benefit in a single sum;
(b) To apply the death benefit to the purchase of an Annuity Benefit in a
form then offered by Equitable;
(c) To apply the death benefit to provide any other form of benefit then
offered by Equitable; or
(d) To apply the death benefit to an account or accounts under this
Contract maintained for the benefit of such beneficiary or
beneficiaries.
Unless Equitable receives suitable written instructions to the contrary from the
Employer, Employer Plan Trustee or such beneficiary or beneficiaries on the date
on which it receives due proof of the death of the Participant, any amounts then
held with respect to the Participant in certain Divisions will be transferred to
one Division as described below, and the entire Retirement Account Value will be
held therein pending disposition of the death benefit in accordance with the
immediately preceding paragraph.
Such transfer will be (a) of any amounts not then in the Money Market Division
to such Division if such Division is then applicable under this Contract to the
Employer Plan, and (b) in any other case, of any amounts not then in the
Guaranteed Interest Division to the Guaranteed Interest Division.
Equitable will pay or apply a death benefit in accordance with the election
described in the second paragraph of this Section. Upon such disposition in
accordance with Clauses (a), (b), or (c) of such paragraph, the amount held in
the Divisions with respect to the Participant and the Retirement Account Value
will be zero. Equitable will thereupon be released from any and all liability
for payment with respect to the Retirement Account Value.
No. 1033-92 AC6704 Page 19
Any beneficiary who elects to dispose of the death benefit by having it applied
to an account in accordance with Clause (d) of the second paragraph of this
Section, will be subject to the following:
(a) The beneficiary will be entitled to defer distribution of the account
to the extent permitted by the Employer Plan and applicable law;
(b) The value of the account will be determined at the time of distribution
to the beneficiary and, depending upon investment gains or losses, may
be worth more or less than the initial value of the account;
(c) If the beneficiary dies before taking full distribution of the account,
a death benefit will be determined with respect to the account as
though such beneficiary were a Participant; and
(d) Such account may be allocated to, and transferred among, the Divisions
in accordance with the provisions of this Contract as applicable to
Retirement Account Values with respect to Participants.
SECTION 2.09 WITHDRAWALS TO MAKE EMPLOYER PLAN LOANS TO PARTICIPANTS. The
Employer Plan Trustee may, if the Employer Plan is not a Terminated Plan or its
assets are not being paid out in accordance with Section 2.07, Paragraph (4),
make withdrawals under this Section in order to provide Employer Plan loans to
Participants in accordance with the loan provisions, if any, of the Employer
Plan, subject to applicable laws and regulations, and may request Equitable to
provide recordkeeping services with respect to such Employer Plan loans in
accordance with the following:
(a) An Employer Plan loan will be available only from the portion, if any,
of the Retirement Account Value that, as reported to Equitable by the
Employer or Employer Plan Trustee, is the vested portion of a
Participant's Retirement Account Value in accordance with the Employer
Plan;
(b) Before the Transaction Date on which an Employer Plan loan is to become
effective ("Plan Loan Effective Date") the Employer or Employer Plan
Trustee is to provide Equitable with a signed Employer Plan loan
agreement, in a form satisfactory to Equitable, setting forth all
applicable terms and conditions of the Employer Plan loan. Such
agreement is to be signed by the Employer or Employer Plan Trustee and
the Participant;
(c) There is no more than one Active Loan for a given Participant at one
time, except for multiple Old Plan Takeover Loans transferred to this
Contract under the terms of the Employer Plan with respect to a given
Participant;
(d) The minimum amount of withdrawal for each loan will be the minimum for
loans under the Employer Plan but in no event shall the minimum be less
than $1,000;
(e) The maximum amount of each withdrawal for an Employer Plan loan will be
the maximum amount described under Section 72 (p) of the Code;
No. 1033-92 AC6704 Page 20
(f) The rate of interest applicable to each Employer Plan loan is a fixed
rate for the full term of the loan, as determined by the Employer or
the Employer Plan Trustee in accordance with the Employer Plan;
(g) A one-time set-up fee and a periodic recordkeeping fee will be
applicable to each Employer Plan loan in accordance with Section 2.10,
Paragraph (7);
(h) The amount of an Employer Plan loan withdrawal will be withdrawn from
the amounts held in the Divisions with respect to the Participant as of
the Transaction Date in accordance with the instructions submitted for
purposes of such Employer Plan loan withdrawal by the Employer or
Employer Plan Trustee;
(i) The Employer Plan loan must by its terms be repayable within a term as
specified in the Code and in the Employer Plan with respect to such
plan loans;
(j) The "Plan Loan Repayment Date" will be each of a series of dates to be
designated in an Employer Plan loan amortization schedule included in
the Employer Plan loan agreement referred to in Clause (b) above;
(k) Employer Plan loan repayments are to be remitted to Equitable by the
Employer or Employer Plan Trustee as of each Plan Loan Repayment Date
of any Active Loan, with each such payment at least equal to the amount
required, as specified in the amortization schedule as of the Plan Loan
Effective Date;
(l) Additional Employer Plan loan repayments may be made at any time. The
Employer Plan loan, including the full amount of interest due hereon,
may, if the Employer Plan so provides, be repaid in full at any time;
(m) Employer Plan loan repayments with respect to a Participant will be
allocated to the Participant's Retirement Account Value by Equitable
either (A) to the Divisions on the basis of the instructions submitted
for withdrawal of such Employer Plan loan amounts pursuant to Clause
(h) of this Section, or (B) if the Participant so elects and if such
Division is applicable under this Contract to the Employer Plan,
entirely to the Guaranteed Interest Division; and
(n) An Employer Plan loan will be deemed in default if (i) the full amount
of any loan repayment is not received by Equitable within 90 days of
the applicable Plan Loan Repayment Date, (ii) the Participant's
participation under this Contract with respect to the Employer Plan is
terminated, or (iii) the Participant dies.
SECTION 2.10 FEES AND CHARGES
(1) As of the last Business Day of each calendar quarter an administrative
fee will be deducted by Equitable from the amounts held in the
Divisions with respect to the Participant. Such fee will be equal to
$7.50 or, if less, 0.50% of the sum of (a) the Participant's Retirement
Account Value, and (b) any Active Loans with respect to the
Participant. With respect to individuals who become Participants
hereunder on or before the Contract Date, however, such administrative
fee will be appropriately prorated for the calendar quarter in which
such
No. 1033-92 AC6704 Page 21
Contract Date occurred. Any amount remitted by the Employer or Employer
Plan Trustee toward such fee will correspondingly reduce such
deduction.
(2) As of the first Business Day of each calendar year, a plan
recordkeeping fee of $300 will be payable with respect to each Employer
Plan. Such fee will be appropriately prorated for the calendar year in
which the Contract Date occurred. To the extent that the Employer or
Employer Plan Trustee does not pay such fee directly to Equitable, it
will be deemed to have instructed Equitable to deduct such fee from the
amounts held in the Division with respect to the Participants.
(3) The assets of the Investment Divisions attributable to this Contract
will be subject to a daily asset charge for mortality risk, expenses
and expense risk. Such charge will be applied after any deductions to
provide for taxes and will be at a rate not to exceed a guaranteed
maximum annual rate of 1.35%. Equitable reserves the right to charge
less on a current basis. The charge will be made in accordance with
Clause (c) of the definition of Net Investment Factor in Section 1.27.
(4) Any withdrawal pursuant to Section 2.07 during the first five Contract
Years with respect to an Employer Plan will, except as otherwise
provided in Paragraphs (5) and (6) of this Section 2.10, be subject to
a Contingent Withdrawal Charge.
(5) Any withdrawal from the Guaranteed Interest Division pursuant to
Paragraphs (3) or (5) of Section 2.07 with respect to a Terminated Plan
Participant will, except as otherwise provided in Paragraph (6) of this
Section 2.10, be subject to a Market Value Adjustment if either
(a) no Contingent Withdrawal Charge is applicable to such withdrawal;
or
(b) the Contingent Withdrawal Charge that is applicable is less than
the Market Value Adjustment. In such event the Market Value
Adjustment will apply in lieu of the Contingent Withdrawal
Charge.
(6) No Contingent Withdrawal Charge or Market Value Adjustment will be
applied in connection with the following:
(a) Withdrawals paid in annual installments pursuant to Paragraphs (3)
or (4) of Section 2.07;
(b) Amounts withdrawn or applied with respect to a Participant for
purposes of a Benefit Distribution, or for purposes of compliance
with any qualified domestic relations order, as defined in
Section 414(p) of the Code; provided, however, that in connection
with Paragraphs (3) and (4) of Section 2.07, such Benefit
Distribution will include only Benefit Distributions covered by
Clauses (a), (b), or (c) of Section 1.06;
(c) Contributions which are "excess contributions" as such term is
defined in Section 401(k)(8)(B) of the Code, including the income
thereon, and less any loss allocable thereto, provided the
withdrawal is made no later than the end of the plan year under
the Employer Plan following the plan year in which such excess
contributions were made;
No. 1033-92 AC6704 Page 22
(d) Contributions which are "excess aggregate contributions" as such
term is defined in Section 401(m)(6)(B) of the Code, including
the income thereon, and less any loss allocable thereto, provided
the withdrawal is made no later than the end of the plan year
under the Employer Plan following the plan year in which such
excess aggregate contributions were made;
(e) Amounts which are "excess deferrals" as such term is defined in
Section 402(g)(2) of the Code, including income thereon, and less
any loss allocable thereto, provided the withdrawal is made no
later than April 15 following the calendar year in which such
excess deferrals were made;
(f) Contributions which are remitted by the Employer or Employer Plan
Trustee due to mistake of fact made in good faith, provided such
Contributions, less any loss allocable thereto, are refunded to
the Employer or Employer Plan Trustee within 12 months from the
date such Contributions were made and no earnings attributable to
such Contributions are included in such repayments; and
(g) Contributions which are remitted by the Employer or Employer Plan
Trustee, but which are disallowed to the Employer as a deduction
for federal income tax purposes, provided such Contributions,
less any loss allocable thereto, are refunded to the Employer
within 12 twelve months after the disallowance of the deduction
has occurred and no earnings attributable to such contributions
are included in such repayment.
The amounts described in said Clauses (c) through (g) will be as
determined by the Employer or Employer Plan Trustee and reported to
Equitable.
Equitable also reserves the right to waive the Contingent Withdrawal
Charge in connection with such other transactions under this Contract
as it shall determine, provided that any such waiver will be applied on
a uniform and nondiscriminatory basis.
(7) An Employer Plan loan set-up fee of $25 is applicable as of the Plan
Loan Effective Date of each Active Loan, except for Old Plan Takeover
Loans, and an Employer Plan loan recordkeeping fee of $6 is applicable
as of the last Business Day of each calendar quarter with respect to
each Active Loan. Such fees will be deducted by Equitable from the
amounts held in the Divisions with respect to the Participant. Any
amount remitted by the Employer or Employer Plan Trustee toward such
fees will correspondingly reduce such deduction.
(8) If the Employer or the Employer Plan Trustee requests that the amount
representing a forfeiture and the interest thereon be withdrawn during
the first five Contract Years from the Forfeiture Account for any
purpose other than reallocation of such amount among the Participants
under this Contract, such withdrawal will be subject to a Contingent
Withdrawal Charge. The Contingent Withdrawal Charge will be deducted by
Equitable at the time of such withdrawal.
(9) Any charge for taxes which Equitable pays in conjunction with a
withdrawal pursuant to Section 2.07 will be deducted as of the
applicable Transaction Date from the amounts held in
No. 1033-92 AC6704 Page 23
the Divisions with respect to the Participant. If Equitable has
deducted such charge from the Contributions being withdrawn before they
were allocated to the Divisions pursuant to Section 2.05, Equitable
will not again deduct charges from such Contributions for the same
taxes. If, however, taxes are later imposed upon Equitable when such a
withdrawal is made, Equitable reserves the right to make an additional
deduction for such taxes.
SECTION 2.11 FORFEITURES. If the Employer or the Employer Plan Trustee
reports to Equitable that a Retirement Account Value is to be reduced
as a result of a forfeiture pursuant to the Employer Plan, Equitable
will reduce the Retirement Account Value by the amount of the reduction
so reported as representing the unvested portion of the Participant's
Retirement Account Value.
Equitable will apply the amount of any such reduction to the Forfeiture
Account, pending subsequent disposition. Such amount (and any interest
thereon) will be disposed of in a manner to be reported in writing to
Equitable by the Employer Plan Trustee.
No. 1033-92 AC6704 Page 24
PART III - ANNUITY BENEFITS
SECTION 3.01 FORM OF ANNUITY BENEFIT. Any Annuity Benefit provided under this
Contract will be payable on the Life Annuity form described in the following
paragraph or, as determined by the Employer or the Employer Plan Trustee in
accordance with the terms of the Employer Plan, on any other annuity form
offered by Equitable, subject to Equitable's rules then in effect and the
requirements of applicable law.
The Life Annuity form provides monthly payments to the Participant beginning at
the Annuity Commencement Date and ending with the last monthly payment due
before the death of the Participant.
SECTION 3.02 REPORT FOR ANNUITY BENEFIT. The Employer or the Employer Plan
Trustee will report to Equitable each Participant or other person with respect
to whom an Annuity Benefit is to be provided under this Contract if the amount
to be applied to provide such Annuity Benefit is at least $3,500. Any such
report is to be made before the first payment under such Annuity Benefit. Any
such report will be in the form prescribed by Equitable and will include all
pertinent facts and determinations requested by Equitable. Equitable will be
fully protected in relying on the reports and other information furnished by the
Employer or Employer Plan Trustee, and need not inquire as to the accuracy or
completeness thereof.
SECTION 3.03 APPLICATION TO PROVIDE ANNUITY BENEFIT. As of the date of the first
payment under each such Annuity Benefit to be provided hereunder, an application
will be made to provide such Annuity Benefit. The amount so applied will be
equal to the Retirement Account Value, less any applicable tax on annuity
considerations; provided that the Employer or Employer Plan Trustee may report,
in accordance with Section 3.02, that only a portion of the given amount is to
be used for such Annuity Benefit.
If Equitable has deducted charges for applicable tax from the Contributions
being applied to provide an Annuity Benefit before they were allocated to the
Divisions pursuant to Section 2.05, Equitable will not again deduct charges from
such Contributions for the same taxes. If, however, taxes are later imposed upon
Equitable when such an application is made, Equitable reserves the right to make
an additional deduction for such taxes.
Application will be made on the basis of either (a) the Table of Guaranteed
Annuity Payments included in Appendix A of this Contract, or (b) Equitable's
then-current individual annuity rates applicable at the time of application to
funds which derive from sources outside Equitable, whichever rates would provide
a large benefit with respect to the payee.
After application to provide an Annuity Benefit pursuant to this Section, the
amounts with respect to the Participant in the Divisions and the Retirement
Account Value will be correspondingly reduced.
SECTION 3.04 PAYMENT OF ANNUITY BENEFIT. Equitable will require satisfactory
evidence of the age of any person upon whose life continued payment under an
annuity form depends. Evidence of each payee's survival must be furnished to
Equitable either by personal endorsement of the check drawn for payment or by
other means satisfactory to Equitable.
No. 1033-92 AC6704 Page 25
If a benefit payment under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, any amount used to provide the benefit, or any combination
thereof. The amount of the overpayments by Equitable will be charged against,
and the amount of the underpayments will be added to, any payments thereafter
falling due under the Contract with respect to the payee.
The liability of Equitable with respect to a payee is limited to the correct
information and the actual amounts used to provide the benefits then in force
with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (a) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (b) another person or an institution is then
maintaining or has custody of such payee, and (c) no guardian, committee, or
other representative of the estate of such payee has been appointed, Equitable
may, unless the Employer Plan provides to the contrary, make the payments to
such other person or institution, and will thereupon be fully discharged from
all liability with respect thereto.
If the amount to be applied hereunder is less than $3,500, Equitable may pay the
amount to the payee in a single sum instead of applying it to provide an Annuity
Benefit.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
No. 1033-92 AC6704 Page 26
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire contract between the
Contract Holder and Equitable. This contract and the application therefor
constitutes the entire contract between the Employer or Employer Plan Trustee,
as the case may be, and Equitable. The provisions of the Contract alone will
govern with respect to the rights and obligations of Equitable. The provisions
of the Contract will be applied separately with respect to each Employer or
Employer Plan Trustee. Nothing in the Master Trust, the Pooled Trust, the
Employer Plan or the Plan, nor in any modification, amendment, or supplement to
any such documents will in any way be construed to enlarge, change, vary or in
any other way affect the obligations of Equitable as expressly provided in this
Contract.
This Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to the Employer or the Employer Plan Trustee, or to any
Participant under the Contract, may be reduced or forfeited except by the
express consent thereof.
The Employer or Employer Plan Trustee will report to Equitable each person under
the Employer Plan who is to be covered under this Contract. Equitable will issue
with respect to each person for whom an Annuity Benefit becomes payable under
this Contract an Equitable supplementary contract setting forth the amount and
terms of the Annuity Benefit.
Upon Equitable's request, the Employer or Employer Plan Trustee will provide any
information that is reasonably required by Equitable with respect to
transactions under this Contract.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the Contract to reflect changes in the Code, in
Treasury regulations or published rulings of the Internal Revenue Service, in
the Employee Retirement Income Security Act of 1974, as amended, and in
Department of Labor regulations.
Any Annuity Benefit, Cash Value or death benefit available under the Contract
shall not be less than the minimum benefits required by any applicable state
law.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. Neither the Employer, the
Employer Plan Trustee nor Equitable may assign its rights or obligations
hereunder without the other party's prior written consent, except that an
assignment by Equitable to a corporation in which it has a direct or indirect
ownership interest shall not require such consent provided that Equitable
remains liable for the failure of that corporation to perform its obligations
under this Contract.
Subject to the requirements of applicable law, no amount payable to a
Participant or beneficiary under the Contract may be assigned, commuted or
encumbered by the payee and no such amount will in any way be subject to any
claim against such payee. Such prohibition will not apply to any
No. 1033-92 AC6704 Page 27
assignment, transfer, or attachment pursuant to a qualified domestic relations
order, as defined in Section 414(p) of the Code.
SECTION 4.04 MANNER OF PAYMENT. Equitable will pay all amounts becoming payable
under this Contract by check or, if so agreed upon by the Employer or Employer
Plan Trustee and Equitable, by wire transfer. All amounts payable by the
Employer or the Employer Plan Trustee under this Contract will be paid by check
payable to Equitable, or by any other method acceptable to Equitable.
SECTION 4.05 RIGHT TO CHANGE. Equitable reserves the right to increase any fee
described in Section 2.10, Paragraphs (1), (2) and (7) at any time to reflect
any increase in Equitable's expenses related to the administrative functions
covered by such fees.
Equitable also reserves the right to decrease or waive any or all such fees, or
the Contingent Withdrawal Charge, as applicable to an Employer Plan, in
recognition of anticipated and sustained lower levels of sales and
administrative expense incurred by Equitable under this Contract with respect to
such Employer Plan. Such fee or charge adjustment will be determined by
Equitable on the basis of criteria applied in a uniform and nondiscriminatory
manner including, but without limitation, the number of Participants associated
with the Employer Plan, the level and frequency of Contributions, the average
retention of such Contributions under the Contract, the pattern of withdrawals,
and the use of cost-saving technology by the Employer or Employer Plan Trustee
in transmitting Participant data to Equitable.
Equitable reserves the right to change from time to time on and after the fifth
anniversary of the Register Date, at intervals of not less than five years, (a)
the minimum amount to be used to provide an Annuity Benefit hereunder as stated
in Section 3.02 and (b) the actuarial basis used in the Table of Guaranteed
Annuity Payments appearing in Appendix A.
Equitable may elect to make any change pursuant to the first or third paragraphs
of this Section either by written notice to the Employer or Employer Plan
Trustee or by amendment to this Contract, and will advise the Employer or
Employer Plan Trustee at least 90 days in advance of any such change. No such
change will apply to any Annuity Benefit provided hereunder before such change
nor to Contributions made hereunder before such change.
Equitable reserves the right, subject to compliance with applicable law, to:
(a) add new Investment Divisions or subdivisions thereof to the Separate
Account, add a new separate account, or remove Investment Divisions or
subdivisions thereof from the Separate Account;
(b) combine any two or more Investment Divisions or subdivisions thereof;
(c) transfer the assets Equitable determines to be the proportionate share
of the class of contracts to which this Contract belongs from any of
the Investment Divisions to another Investment Division by withdrawing
the same percentage of each investment in that Investment Division,
with appropriate adjustment to avoid odd lots and fractions;
No. 1033-92 AC6704 Page 28
(d) operate the Separate Account or any Investment Division as a management
investment company under the Investment Company Act of 1940 (which
company may be directed by a committee which may be composed of a
majority of persons who are "interested persons" of Equitable under
said Act, which committee may be discharged by Equitable at any time)
or in any other form permitted by law, including a form that allows
Equitable to make direct investments;
(e) deregister the Separate Account under said Act;
(f) cause one or more Investment Divisions to invest some or all of their
assets in one or more other trusts or investment companies;
(g) terminate any agreement with an Employer or Employer Plan Trustee in
conjunction with this Contract pursuant to the terms of such agreement;
and
(h) restrict or eliminate any voting rights of Participants, Employer Plan
Trustees or other persons who have voting rights that affect the
Separate Account.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, the Employer or the Employer Plan Trustee
will be notified by Equitable of such exercise.
SECTION 4.06 BENEFICIARY. A Participant may, subject to the Employer Plan,
including any spousal consent provisions thereof, designate (with the right to
change such designation from time to time) a beneficiary or beneficiaries to
receive any payment with respect to the Participant becoming due to a
beneficiary under this Contract. Any other person to whom periodic payments are
payable under this Contract may designate (with the right to change such
designation from time to time) a beneficiary or beneficiaries to receive any
single sum payment or any remaining periodic payments becoming due upon the
death of such person, if no prior designation is then in effect with respect
thereto.
Any designation or change shall be by written notice filed at the Processing
Office, except that a designation or change made by a Participant who has not
attained his Annuity Commencement Date shall be by written notice filed with the
Employer or Employer Plan Trustee. Upon receipt of said notice by Equitable,
such designation or change shall take effect as of the date shown on said notice
as the date on which it was signed, whether or not the person making such
designation or change is living at the time of receipt, but without further
liability on the part of Equitable with respect to any payment made by it before
the receipt by it of (a) said notice or (b) a written report from the Employer
or Employer Plan Trustee that such party received said notice.
SECTION 4.07 DEFERMENT. Except as provided in this Section, payments by
Equitable pursuant to the provisions of Sections 2.07 and 2.08 from the amounts
held with respect to the Participant in the Investment Divisions will be made
within seven days after the applicable Transaction Date.
Payments or applications by Equitable of proceeds from the Investment Divisions
can be deferred during any period when (a) the sale of securities or the
determination of the Accumulation Unit
No. 1033-92 AC6704 Page 29
Value is not reasonably practicable because an emergency, defined by the
Securities and Exchange Commission, exists, or the New York Stock Exchange is
closed, or trading on such Exchange is restricted, or (b) the Securities and
Exchange Commission by order permits postponement for the protection of persons
having interests in the Separate Account. Payment or transfer by Equitable of
any portion of a Participant's Retirement Account Value in the Guaranteed
Interest Division can be deferred, while the Participant is living, for up to
six months after receipt of a written request for such payment or transfer.
SECTION 4.08 CONTRACT HOLDER'S RESPONSIBILITY. The sole responsibility of the
Contract Holder is to serve as party to the Contract. The Contract Holder will
have no responsibility for the administration of the Plan or any Employer Plan
or agreement, or for Contributions or any payments or other distributions
hereunder. Equitable will deal with the Contract Holder in accordance with the
terms and conditions of the trust agreement pursuant to which the Contract
Holder agreed to act as such and in such manner as the Contract Holder and
Equitable agree, without the consent of any other person. Any Employer or
Employer Plan Trustee making Contributions under the Contract will have adopted
and accepted the Master Trust or the Pooled Trust and this Contract as part of
the Employer Plan with respect to which such Contributions are made.
SECTION 4.09 EMPLOYER OR EMPLOYER PLAN TRUSTEE'S RESPONSIBILITY. Equitable shall
make no payment hereunder without written instructions from the Employer or
Employer Plan Trustee, as applicable, and Equitable shall be fully discharged of
any liability therefor to the extent such payments are made pursuant to such
instructions.
SECTION 4.10 PLAN STATUS. A "Qualified Plan" is a plan or agreement that meets
the requirements for qualification under Section 401(a) of the Code. The
Employer or Employer Plan Trustee is to provide evidence satisfactory to
Equitable that the Employer Plan is a Qualified Plan and, if at any time the
Employer Plan is no longer a Qualified Plan, the Employer or Employer Plan
Trustee is to give Equitable prompt written notice thereof.
If (a) within one year after the Funding Effective Date, or such longer period
as may be agreed upon in writing between the Employer or Employer Plan Trustee
and Equitable, the Employer or Employer Plan Trustee does not provide such
evidence that the Employer Plan is a Qualified Plan, or (b) the Employer or
Employer Plan Trustee gives notice that the Employer Plan is no longer a
Qualified Plan, then upon at least thirty days advance written notice to the
Employer or Employer Plan Trustee, Equitable may:
No. 1033-92 AC6704 Page 30
(i) Prohibit further Contributions under this Contract with respect to the
Employer Plan, and
(ii) Withdraw from the Divisions the amounts therein with respect to the
Employer Plan and make the payment described in the second paragraph of
Section 2.07, Paragraph (6).
If the Employer Plan is to terminate, in whole or in part, without immediate
establishment of a successor plan, sponsored by the Employer, with respect to
the affected Participants, the Employer or Employer Plan Trustee will provide
Equitable with (a) 90 days' advance written notice and evidence satisfactory to
Equitable of such termination, and (b) a listing of the Participants covered by
such termination if it is a partial plan termination.
No. 1033-92 AC6704 Page 31
APPENDIX A
TABLE OF GUARANTEED ANNUITY PAYMENTS
Amount of Annuity Benefit payable monthly on the Life Annuity form provided by
an application of $1,000.
Age Amount
--- ------
55 $3.99
60 4.35
65 4.82
70 5.46
The amount of income provided under an Annuity Benefit payable on the Life
Annuity form is based on 3.00% interest and the 1983 Individual Annuity
Mortality Table "a" projected with modified Scale G, adjusted to a unisex basis,
reflecting a 20%-80% split of males and females at pivotal age 55.
Amounts required for ages not shown in the Table or for other annuity forms will
be calculated by Equitable on the same actuarial basis.
No. 1033-92 AC6704 Page 32
