Exhibit 4(vi)
NEW ENGLAND LIFE INSURANCE COMPANY
[501 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000]
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GUARANTEED MINIMUM INCOME BENEFIT RIDER -- LIVING BENEFIT
This Rider forms a part of the Contract to which it is attached and is
effective upon issuance. In the case of a conflict with any provision of the
Contract, the provisions of this Rider will control. Your election of this
Rider is irrevocable and its provisions will remain part of the Contract until
terminated in accordance with the provisions below. This Rider amends the
Contract as follows:
The following is added to the "Annuity Provisions" section:
GUARANTEED MINIMUM INCOME BENEFIT
We guarantee that your minimum monthly Fixed Annuity Payment will not be less
than the Guaranteed Minimum Income Benefit (GMIB) Payment (less any applicable
charges and fees as described in the Contract Schedule or any Rider) provided
you meet the eligibility requirements below. If a higher Fixed Annuity Payment
results from applying your total Adjusted Contract Value to the then current
Fixed Annuity rates applicable to this class of contracts, we will pay you the
greater payment.
At the Annuity Calculation Date, the GMIB Payment will be determined by
applying the Income Base to the GMIB Annuity Table multiplied by the applicable
GMIB Payment Adjustment Factor shown on the Contract Schedule. In calculating
the GMIB Payment, any Withdrawal Charges that would have applied if you had
made a full withdrawal of your Contract Value will be deducted from the Income
Base. We reserve the right to reduce the Income Base for any Premium and Other
Taxes that may apply.
INCOME BASE
The Income Base is the greater of (a) or (b):
(a) Highest Anniversary Value: On the Issue Date we set this value equal to your
initial Purchase Payment. During each Contract Year we increase this value
by any Purchase Payments made and reduce it proportionately by the
Percentage Reduction in Contract Value attributable to any partial
withdrawals taken. On every Contract Anniversary prior to the Last Step-Up
Date shown on the Contract Schedule, we compare this value to the current
Contract Value and we set the Highest Anniversary Value equal to the higher
amount.
(b) Annual Increase Amount: On the Issue Date we set this amount equal to your
Initial Purchase Payment. For purposes of this calculation all Purchase
Payments credited within 120 days of the Issue Date will be treated as if
received on the Issue Date. After the Issue Date, this amount will equal:
(i) The sum total of each Purchase Payment accumulated at the Annual
Increase Accumulation Rate for the duration shown on the Contract
Schedule from the date the Purchase Payment is made, less
(ii) The sum total of each Withdrawal Adjustment for any partial
withdrawal accumulated at the Annual Increase Accumulation Rate from
the date of withdrawal (except as indicated).
The Annual Increase Accumulation Rate will be applied as set forth in the
Contract Schedule or through the earlier of the Annuity Calculation Date
or the GMIB Rider Termination Date. For purposes of calculating the Annual
Increase Amount when the GMIB Rider Charge is assessed, the Annual
Increase Accumulation Rate will be applied through the end of the prior
Contract Year.
NEL-560-1 (03/03)
We compute the Percentage Reduction in Contract Value attributable to a partial
withdrawal by dividing the dollar amount of the withdrawal plus any applicable
Withdrawal Charges by the Contract Value immediately preceding such withdrawal.
When we reduce a value proportionately by the Percentage Reduction in Contract
Value attributable to a partial withdrawal we multiply that value by 1 minus the
Percentage Reduction.
The Withdrawal Adjustment for any partial withdrawal in a Contract Year equals
the Annual Increase Amount immediately prior to the withdrawal multiplied by
the Percentage Reduction in Contract Value attributable to that partial
withdrawal. However, if all partial withdrawals in a Contract Year are payable
to the Owner (or Annuitant if the Owner is a non-natural person) or other
payees that we agree to in writing and total partial withdrawals in a Contract
Year are not greater than the Annual Increase Amount on the previous Contract
Anniversary multiplied by the Dollar-for-Dollar Withdrawal Percentage shown on
the Contract Schedule, the total Withdrawal Adjustments for the Contract Year
will be set equal to the dollar amount of total partial withdrawals in that
Contract Year and treated as a single withdrawal at the end of that Contract
Year.
GMIB ANNUITY TABLE
The guaranteed monthly payout rates per $1000 of Income Base are shown in the
GMIB Annuity Tables using the GMIB Annuity Table Basis shown on the Contract
Schedule. The rate applied will depend upon the Annuity Option chosen and the
Attained Age and sex of the Annuitant and Joint Annuitant, if applicable.
ELIGIBILITY REQUIREMENTS FOR THE GMIB PAYMENT
You are only eligible to receive GMIB Payments if:
(1) The Owner is a natural person and the Owner is also the Annuitant. If the
Owner is a non-natural person then the Annuitant will be considered the
Owner for GMIB Payment purposes. If Joint Owners are named, the age of the
oldest will be used to determine the Income Base and GMIB Payment, and
(2) You choose an Annuity Date that is within 30 days following any Contract
Anniversary on or after the GMIB Income Date shown on the Contract Schedule,
but no more than 30 days after the GMIB Rider Termination Date shown on the
Contract Schedule. However, if your Contract Value is fully withdrawn, we
set an Annuity Date 30 days following the full withdrawal date, and the GMIB
Payment (if any) will be determined using the Income Base after any
applicable Withdrawal Adjustment associated with the withdrawal that
exhausted your Contract Value, and
(3) You choose to start receiving Fixed Annuity Payments under one of the
Annuity Options shown on the Contract Schedule. If a single life option is
chosen and Joint Owners are named, the age of the oldest will be used to
determine the Income Base and the GMIB Payment, and monthly Fixed Annuity
Payments will be made for the lifetime of the oldest Joint Owner. You may
name a Joint Annuitant on the Annuity Date for purposes of a Life Income for
Two Lives option provided that the difference in the ages of the Joint
Annuitants is 10 years or less (or as permissible under our then current
underwriting requirements if more favorable), and
(4) Annuity Payments will be paid as monthly installments or at any frequency
acceptable to you and us. If the amount of the Income Base to be applied
under an Annuity Option is less than $5,000, we reserve the right to make
one lump sum payment in lieu of Income Payments. If the amount of the first
Income Payment would be less than $100, we may reduce the frequency of
payments to an interval which will result in the payment being at least
$100, but no less than annually.
GMIB RIDER CHARGE
The GMIB Rider Charge is equal to the specified percentage shown on the
Contract Schedule multiplied by the Income Base at the end of the prior
Contract Year. The charge is assessed for the prior Contract Year at each
Contract Anniversary. If you take a full withdrawal or apply any portion of
your Adjusted Contract Value to an Annuity Option, a pro rata portion of the
GMIB Rider Charge will be assessed based on the number of months from the last
Contract Anniversary to the date of withdrawal/application.
NEL-560-1 (03/03)
The GMIB Rider Charge will be deducted from your Contract Value. This deduction
will result in the cancellation of Accumulation Units from each applicable
Subaccount (and/or reduction of any portion of the Contract Value allocated to
any other accounts included by Rider) in the ratio the portion of the Contract
Value in such Subaccount (and/or other account) bears to the total Contract
Value.
GMIB TERMINATION PROVISIONS
The GMIB Rider Provisions will terminate upon the earliest of:
(a) The 30th day following the GMIB Rider Termination Date shown on the Contract
Schedule;
(b) The date you make a full withdrawal of your Contract Value;
(c) The date you apply all or any portion of your Adjusted Contract Value to an
Annuity Option;
(d) Death of the Owner or Joint Owner (or Annuitant if the Owner is a
non-natural person) unless the Beneficiary is the spouse of the Owner and
elects to continue the Contract and the surviving spouse's attained age is
less than 85;
(e) Change of the Owner or Joint Owner (or Annuitant if the Owner is a
non-natural person), for any reason; or
(f) Termination of the Contract to which this Rider is attached.
New England Life Insurance Company has caused this Rider to be signed by its
President and Secretary.
/s/ Xxxxxxx X. Plazack /s/ Xxxxx X. Xxxxxx
Secretary President
NEL-560-1 (03/03)
GMIB ANNUITY TABLES
AMOUNT OF FIRST MONTHLY ANNUITY PAYMENT
PER $1000 OF INCOME BASE
ANNUITANT ONLY
[Life Income with 10 Years of Annuity Payments Guaranteed
Attained Age
Of Annuitant MALE FEMALE
[55 3.93 3.71
60 4.26 3.99
65 4.68 4.36
70 5.23 4.84
75 5.92 5.47
80 6.73 6.29
85 7.61 7.26]
ANNUITANT AND JOINT ANNUITANT
Life Income Annuity for Two with 10 Years of Annuity Payments Guaranteed
Age of Female Joint Annuitant
--------------------------------------------------
Attained Age of 10 Years 5 Years 0 Years 5 Years 10 Years
Male Annuitant Younger Younger Younger Older Older
[55 3.21 3.33 3.44 3.55 3.66
60 3.37 3.52 3.67 3.81 3.94
65 3.58 3.76 3.96 4.15 4.32
70 3.84 4.09 4.35 4.60 4.83
75 4.19 4.52 4.87 5.22 5.51
80 4.65 5.10 5.58 6.03 6.38
85 5.27 5.88 6.50 7.02 7.35]]
Monthly payments for ages not shown will be furnished on request.
NEL-560-1 (03/03)
New England Life Insurance Company
000 Xxxxxxxx Xxxxxx Xxxxxx,
Xxxxxxxxxxxxx 00000
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INDIVIDUAL RETIREMENT ANNUITY ENDORSEMENT
This Endorsement forms a part of the Contract to which it is attached. The
effective date of the provisions in this Endorsement are the same as the date of
issue shown on the Contract Schedule page, or the date the provision is required
under the Federal tax law, if later. If there is a conflict between the terms of
the Contract (including any prior endorsements or riders thereto) and the terms
of this Endorsement, this Endorsement controls. However, the Contract may
contain further restrictions (including but not limited to the types and number
of contributions which will be accepted), which will continue to apply to the
extent consistent with Federal tax law.
TERMS USED IN THIS ENDORSEMENT
(a) "We" or the "Company", means New England Life Insurance Company.
(b) "Annuitant", "You", and "Your" refer to the measuring life who is also the
owner of the annuity Contract.
THE FOLLOWING PROVISIONS APPLY TO A CONTRACT WHICH IS ISSUED ON A QUALIFIED
BASIS IF THE APPLICATION INDICATES IT IS TO BE ISSUED UNDER THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED, ("CODE") SECTION 408(b):
1. This Contract is not transferable.
2. This Contract, and the benefits under it, cannot be sold, assigned or
pledged as collateral for a loan or as security for the performance of an
obligation.
3. The Owner is the Annuitant.
4. The Annuitant's entire interest in this Contract is nonforfeitable.
5. This Contract is established for the exclusive benefit of the Annuitant and
the Annuitant's beneficiary(ies).
6. Any refund of contributions (other than those attributable to excess
contributions) will be applied, before the close of the calendar year
following the year of the refund, toward the payment of future
contributions or the purchase of additional benefits.
7. Contributions:
a) Except in the case of a rollover contribution or a non-taxable
transfer (as permitted by Code sections 402(c), 402(e)(6),
403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) or 457(e)(16)), or a
contribution under a Simplified Employee Pension (SEP) under
section 408(k), no contributions will be accepted unless they are
in cash, and the total of such contributions shall not exceed:
$3,000 for any taxable year beginning in 2002 through 2004;
$4,000 for any taxable year beginning in 2005 through 2007;
and
$5,000 for any taxable year beginning in 2008 and years
thereafter.
b) After 2008, the limit will be adjusted by the Secretary of the
Treasury for cost-of-living increases under Code section
219(b)(5)(C). Such adjustments will be in multiples of $500.
c) In the case of an individual who is 50 or older, the annual cash
contribution limit is increased by: $500 for any taxable year
beginning in 2002 through 2005; and $1,000 for any taxable year
beginning in 2006 and years thereafter.
NEL-408.2 (9/02)
8. No contribution will be accepted under a SIMPLE plan established by any
employer pursuant to Code Section 408(p). No transfer or rollover of funds
attributable to contributions made by a particular employer under its
SIMPLE plan will be accepted from a SIMPLE XXX, that is, an XXX used in
conjunction with a SIMPLE plan, prior to the expiration of the 2-year
period beginning on the date the individual first participated in that
employer's SIMPLE plan.
9. Distributions in the form of an annuity:
a) The distribution of the Annuitant's interest in the Contract
shall be made in accordance with the requirements of Code section
408(b)(3) and the regulations there under, the provisions of
which are herein incorporated by reference.
b) Distributions under the annuity payment options in the Contract
must commence to be distributed, no later than the first day of
April following the calendar year in which the Annuitant attains
age 70 1/2, (the "required beginning date"), over (a) the life of
the Annuitant, or the lives of the Annuitant and his or her
designated beneficiary within the meaning of section 401(a)(9)
("designated beneficiary"), or (b) a period certain not extending
beyond the life expectancy of the Annuitant, or the joint and
last survivor expectancy of the Annuitant and his or her
designated beneficiary. Payments must be made in periodic
payments at intervals of no longer than one year. In addition,
payments must be either non-increasing or they may increase only
as provided in the Q&As -1 and -4 of section 1.401(a)(9)-6T of
the Temporary Income Tax Regulations. In addition, any
distribution must satisfy the incidental benefit requirements
specified in Q&A-2 of section 1.401(a)(9)-6T.
c) The distribution periods described in paragraph (b) above cannot
exceed the periods specified in section 1.401(a)(9)-6T of the
Temporary Income Tax Regulations.
d) The first required payment can be made as late as April 1 of the
year following the year the individual attains 70 1/2 and must be
the payment that is required for one payment interval. The second
payment need not be made until the end of the next payment
interval.
e) The interest in the Contract includes the amount of any
outstanding rollover, transfer and recharacterization under
Q&As-7 and -8 of section 1.408-8 of the Income Tax Regulations
and the actuarial value of any other benefits provided under the
Contract, such as guaranteed death benefits.
10. Distributions in a form other than an annuity:
a) The distribution of the Annuitant's interest in the Contract
shall be made in accordance with the requirements of Code section
408(a)(6) and the regulations there under, the provisions of
which are herein incorporated by reference.
b) The entire value of the Contract will commence to be distributed
no later than the first day of April following the calendar year
in which the Annuitant attains age 70 1/2 (the "required
beginning date") over the life of the Annuitant or the lives of
the Annuitant and his or her designated beneficiary.
c) The amount to be distributed each year, beginning with the
calendar year in which the Annuitant attains age 70 1/2 and then
for each succeeding calendar year, shall not be less than the
quotient obtained by dividing the annuitant's benefit ("Account
Value") by the distribution period provided in the Uniform
Lifetime Table in Q&A-2 of section 1.401(a)(9)-9 of the Income
Tax Regulations, using the Annuitant's age as of his or her
birthday in the year. However, if the Annuitant's sole designated
beneficiary is his or her surviving spouse and such spouse is
more than 10 years younger than the individual, then the
distribution period is determined under the Joint and Last
Survivor Table in Q&A-3 of section 1.401(a)(9)-9 using the ages
as of the Annuitant's and spouse's birthdays in the year.
d) The required minimum distribution for the year the Annuitant
attains age 70 1/2 can be made as late as April 1 of the
following year. The required minimum distribution for any other
year must be made by the end of such year.
NEL-408.2 (9/02)
11. The Account Value includes the amount of any outstanding rollover, transfer
and recharacterization under Q&As -7 and -8 of section 1.408-8 of the
Income Tax Regulations.
12. If the Annuitant has more than one individual retirement annuity or account
("XXX"), the amount of the required minimum distribution must determined
separately for each XXX and then aggregated to determine the required
minimum distribution for the year. However, the Annuitant shall be
permitted to withdraw this required minimum distribution in any year from
any one or a combination of his or her IRAs in accordance with the Federal
income tax rules. Notwithstanding anything in the Contract to the contrary,
if the Annuitant does not elect to receive a distribution from this
Contract to satisfy the minimum distribution, we will assume that the
Annuitant is receiving the required amount from another XXX. The Annuitant
shall be responsible in such instance for determining whether the minimum
distribution requirements are met, and the Company shall have no
responsibility for such determination.
13. If the Annuitant dies after distributions have begun the following rules
apply:
a) where distributions have begun under a permissible income annuity
option, the remaining portion of such interest will continue to
be distributed at least as rapidly as under the method of
distribution being used prior to the Annuitant's death;
b) if distributions have begun in a form other than a permissible
annuity payment option, payments must be made over a period not
extending beyond the remaining life expectancy of the designated
beneficiary as provided in the Single Life Table in Q&A-1 of
section 1.401(a)(9)-9 of the Income Tax Regulations (or over a
period no longer than the remaining life expectancy of the
Annuitant in the year of death, if longer, or where there is no
designated beneficiary). Payments must commence no later than
December 31st of the calendar year following the calendar year of
the Annuitant's death.
If distributions are being made to a surviving spouse as the sole
designated beneficiary, such spouse's remaining life expectancy
for a year is the number in the Single Life Table corresponding
to such spouse's age in the year. In all other cases, remaining
life expectancy for a year is the number in the Single Life Table
corresponding to the beneficiary's (or Annuitant's) age in the
year of the Annuitant's death, reduced by one (1) for each
subsequent year.
14. If the Annuitant dies before distributions have begun, the entire amount
payable to the beneficiary will be distributed no later than December 31 of
the calendar year which contains the fifth anniversary of the date of the
Annuitant's death except to the extent that an election is made to receive
distributions in accordance with (a) or (b) below:
a) if any portion of the Contract proceeds is payable to a
designated beneficiary, distributions may be made in instalments
over the life or over a period not extending beyond the life
expectancy of the designated beneficiary commencing no later than
December 31 of the calendar year immediately following the
calendar year in which the Annuitant died;
b) if the sole designated beneficiary is the Annuitant's surviving
spouse, and benefits are to be distributed in accordance with (a)
above, distributions must begin on or before the later of (a)
December 31 of the calendar year immediately following the
calendar year in which the annuitant died or (b) December 31 of
the calendar year in which the Annuitant would have attained age
70 1/2. If the surviving spouse dies before required
distributions commence to him or her, the remaining interest will
be distributed no later than December 31 of the calendar year
which contains the fifth anniversary of the Annuitant's death,
or, if elected, in accordance with paragraph (a) above, starting
by December 31 of the calendar year following the calendar year
of the spouse's death. If the surviving spouse dies after
required distributions commence to him or her, any remaining
interest will continue to be distributed under the Contract
option chosen.
15. Special Rules for Distributions After the Annuitant's Death:
a) If the designated beneficiary is the Annuitant's surviving
spouse, to the extent permitted under the tax law, the spouse may
instead of receiving distributions under sections 13 and 14,
treat the Contract as his or her own XXX. This election will be
deemed to have been made if such surviving spouse makes a regular
XXX contribution to the Contract, makes a rollover to or from
such Contract, or fails to elect any of the above provisions.
NEL-408.2 (9/02)
b) For purposes of distributions beginning after the annuitant's
death, life expectancy is determined using the Single Life Table
in Q&A-1 of section 1.401(a)(9)-9 of the Income Tax Regulations.
The life expectancy of the surviving spouse shall be recalculated
each year (except as provided under Income Tax Regulations after
the death of the surviving spouse). In all other cases, life
expectancies shall be calculated using the attained age of such
beneficiary during the calendar year in which distributions are
required to begin pursuant to this section, and payments for any
subsequent calendar year shall be calculated based on such life
expectancy reduced by one for each calendar year which has
elapsed since the calendar year life expectancy was first
calculated. Life expectancy for distributions under an annuity
payment option available under the Contract may not be
recalculated.
c) Distributions are considered to have begun if distributions are
made on account of the individual reaching his or her required
beginning date or if prior to the required beginning date
distributions irrevocably commence to an individual over a period
permitted and in an annuity form acceptable under the Code or
Income Tax Regulations.
16. The company shall furnish annual calendar year reports concerning the
status of the annuity and such information concerning required minimum
distributions as is prescribed by the Commissioner of Internal Revenue.
17. This contract does not require fixed premiums or contributions. However, if
we do not receive an initial contribution within 120 days of the Contract
issue date, this Contract may be cancelled. Also, we may, if permitted by
law, cancel your Contract by paying you its contract value if (a) we do not
receive any contributions under your Contract for at least two full
consecutive policy years; (b) the contract value is less than $2,000; and
(c) such contract value if accrued with interest to age (70 1/2) at the
minimum interest rate specified in the Contract will provide an income
payment of less than $20 per month if calculated under the basis described
in the Contract and exhibits thereto.
18. In order to continue to qualify this annuity Contract as an XXX under
section 408(b) and to comply with Federal income tax rules, we have the
right to interpret its provisions in accordance with the Code, including
without limitation section 408(b), section 401(a)(9) and the regulations
there under. We may amend this Contract to reflect changes in the tax law.
We will notify you of any such amendments and, when required by law, we
will obtain the approval of the appropriate regulatory authority.
All other terms and conditions of the Contract remain unchanged.
New England Life Insurance Company has caused this Endorsement to be signed by
its President and Secretary.
/s/ (ILLEGIBLE) /s/ (ILLEGIBLE)
Secretary President
NEL-408.2 (9/02)
