2. Endorsement
B000945E
ENDORSEMENT - TAX DEFERRED ANNUITY - 403(b)
The following provisions are added to the contract:
1. NON-TRANSFERABLE
This contract is non-transferable in accordance with section 401(g) of the
Internal Revenue Code. It may not be sold, assigned, discounted or pledged
as collateral for a loan or as security for the performance of an
obligation or for any other purpose, to any person other than the Company.
2. BENEFIT COMMENCEMENT DATE
On the Annuity Date or, if earlier, within 90 days following receipt of
the Contract Owner's written notice of intent to commence annuity benefit
payments, annuity benefit payments will commence. The form of such benefit
payments will be determined in accordance with the provisions of the
following paragraphs.
3. FORM OF BENEFIT - MARRIED OWNER
The term married owner shall mean a Contract Owner who has been married to
the same spouse for at least the twelve consecutive calendar months
immediately preceding the Benefit Commencement Date. Notwithstanding what
is stated in the Annuity Payments Section of the contract to the contrary,
the form of benefit for a Married Owner shall be a Qualified Joint and 50%
Survivor Annuity which is the actuarial equivalent of a life annuity.
Election of an optional form of benefit may be made subject to the
conditions set forth in Paragraph 6 below.
4. FORM OF BENEFIT - UNMARRIED OWNER
Notwithstanding what is stated in Annuity Payments Section of the contract
to the contrary, the form of benefit for a Contract Owner who is not a
Married Owner shall be a life annuity unless the Contract Owner elects an
optional form of benefit.
5. PAYMENT OF DEATH BENEFIT
If the Married Owner dies before the Benefit Commencement Date, the death
benefit will be payable to the Married Owner's surviving spouse unless the
spouse has consented to the waiver of such death benefit in a written,
notarized statement of consent.
6. NOTICE AND ELECTION
A. Notice
At least 90 days before the Annuity Date or immediately upon receipt of
the Contract Owner's written notice of intent to commence annuity
benefit payments, the Company will give the Contract Owner written
Notice. Such Notice will:
1. Set forth the optional forms of benefit available to the Contract
Owner who is not a Married Owner, and the procedure for electing
an optional form of benefit.
2. Provide, for the Married Owner, an explanation of the Qualified
Joint and Survivor Annuity and of the optional forms of benefit
available, the Married Owner's right to elect an optional form of
benefit, the spouse's right to waive the Qualified Joint and
Survivor Annuity, and the Contract Owner's rights during the
election period.
B. Election
Unless the Contract Owner notifies the Company in writing of election
of an optional form of benefit by the day before the Benefit
Commencement Date, annuity benefit payments shall be in the form of
benefit set forth in Paragraphs 3 and 4 above. This election will also
apply to the minimum distribution payments.
Election by a Married Owner of a form of benefit other than Qualified
Joint and Survivor Annuity will be valid only if accompanied by the
written, notarized consent to waiver of the Qualified Joint and
Survivor Annuity by the Married Owner's spouse.
Endorsement No. PI 1542-90 Page 4
Page 4 (con'd)
ENDORSEMENT - TAX DEFERRED ANNUITY (CONTINUED)
B000946E
7. OPTIONAL FORMS OF BENEFIT
Subject to the conditions and limitations in Paragraph 6 above, a Contract
Owner may elect any annuity payment option set forth in the Annuity
Options Section or Annuity Payments Section of the contract. The form of
benefit may not be changed after the Benefit Commencement Date.
8. BENEFIT RESTRICTIONS
Any benefits payable under the Annuity Payments Section, or the Withdrawal
Section are subject to the following added provisions:
A. Effective with respect to contributions made after December 31, 1988,
withdrawals attributable to contributions made pursuant to a salary
reduction agreement may be made only when the Contract Owner is over
age 59 1/2, leaves the employment of the employer who purchased the
contract, dies, becomes disabled as defined in section 72(m)(70) of the
Code, or establishes hardship as defined in the Code. In the case of
hardship withdrawal, no income attributable to such contributions may
be withdrawn.
B. Notwithstanding any provisions of this contract to the contrary, the
distribution of an individual's interest shall be made in accordance
with the requirements of section 401(a)(31) of the Code and the minimum
distribution requirements of section 403(b)(10) of the Code and the
regulations thereunder, including the incidental death benefit
provisions of section I.401(a)(9)-2 of the proposed regulations, all of
which are herein incorporated by reference.
C. The Contract Owner's entire interest in the contract must be
distributed, or begin to be distributed, by the Contract Owner's
required beginning date, which is the April 1 following the calendar
year in which the Contract Owner reaches age 70 1/2. For each
succeeding year, a distribution must be made on or before December 31.
By the required beginning date the Contract Owner may elect to have the
balance in the contract distributed in one of the following forms:
a. a single sum payment;
b. equal or substantially equal payments over the life of the Contract
Owner;
c. equal or substantially equal payments over the lives of the Contract
Owner and his or her designated beneficiary;
d. equal or substantially equal payments over a specified period that
may not be longer than the Contract Owner's life expectancy;
e. equal of substantially equal payments over a specified period that
may not be longer than the joint life and last survivor expectancy
of the Contract Owner and his or her designated beneficiary.
D. If the Contract Owner dies before his or her entire interest is
distributed, the entire remaining interest will be distributed as
follows:
a. If the Contract Owner dies on or after distributions have begun
under Paragraph 8.C of this endorsement, the entire remaining
interest must be distributed at least as rapidly as provided under
Paragraph 8.C.
b. If the Contract Owner dies before distributions have begun under
Paragraph 8.C, the entire remaining interest must be distributed as
elected by the Contract Owner or, if the Contract Owner has not so
elected, as elected by the beneficiary or beneficiaries, as
follows:
1) by December 31st of the year containing the fifth anniversary of
the Contract Owner's death; or
2) in equal or substantially equal payments over the life or life
expectancy of the designated beneficiary or beneficiaries starting
by December 31st of the year following the year of the Contract
Owner's death. If, however, the beneficiary is the Contract Owner's
surviving spouse, then this distribution is not required to begin
before December 31st of the year in which the Contract Owner would
have turned 70 1/2.
Endorsement No. PI 1542-90
Page 4 (con'd)
ENDORSEMENT - TAX DEFERRED ANNUITY (CONTINUED)
Unless otherwise elected by the Contract Owner prior to the
commencement of distributions under Paragraph 8.B or, if
applicable, by the surviving spouse where the Contract Owner dies
before distributions have commenced, life expectancies of a
Contract Owner or spouse beneficiary shall be recalculated annually
for purposes of distributions under Paragraphs 8.B and 8.C. An
election not to recalculate shall be irrevocable and shall apply to
all subsequent years. The life expectancy of a non-spouse
beneficiary shall not be recalculated.
B000947E
An individual may satisfy the minimum distribution requirements under
sections 403(b)(10) of the Code by receiving a distribution from one TDA
that is equal to the amount required to satisfy the minimum distribution
requirements for two or more TDAs. For this purpose, the Contract Owner of
two or more TDAs may use the `alternative method' described in Notice
88-39, 1988-1 C.B. 525, to satisfy the minimum distribution requirements
described above.
9. EFFECTIVE DATE
The Effective Date of this endorsement is the Contract Date.
Wilmington, Delaware The Penn Insurance and Annuity Company
(Included at Issue)
/s/ Xxxxxxx Xxxxx
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Vice President and Senior Actuary
Endorsement No. PI 1542-90
The Penn Mutual Life Insurance Company
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"I have reviewed or supervised the review of the policy forms contained in this
filing and hereby certify that they are in compliance with the applicable
statutes, regulations and bulletins of the State of South Carolina. I further
certify that they will be revised and/or discontinued in the event of future
changes in the statutes, regulations or bulletins which would prohibit the use
of such forms."
Xxxxx X. Xxxxxxxx, FSA, MA
Actuary
February 19, 1998
Date
State of Pennsylvania
---------------------------
County of Xxxxxxxxxx
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Personally appeared before me the above named Xxxxx X. Xxxxxxxx personally known
to me, who, being duly sworn, deposes and says that he executed the above
statement and that the information contained therein is true and correct..
Subscribed and sworn to before me this 19th day of February, 1998 .
Notary Public
