EXHIBIT (4)(b)(xv)
ANNUITY INVESTORS[SERVICEMARK]
LIFE INSURANCE COMPANY
Box 5423, Cincinnati, Ohio 45201-5423 o (000) 000-0000
GOVERNMENTAL SECTION 457 PLAN
ENDORSEMENT
The annuity contract is changed as set out below to add provisions for a
governmental Section 457 plan. This endorsement and the annuity contract to
which it is attached are not valid without additional endorsement(s) defining
the Plan and Plan Administrator.
APPLICABLE TAX LAW RESTRICTIONS. This annuity contract is intended to receive
contributions pursuant to a plan qualified under Internal Revenue Code
("IRC") Section 457 maintained by a state, a political subdivision of a
state, or any agency or instrumentality of a state or political subdivision
of a state. It is restricted as required by federal tax law. We may change
the terms of this annuity contract or administer this annuity contract at any
time as needed to comply with that law. Any such change may be applied
retroactively.
ANNUITANT. "Annuitant" means the designated person covered under the Plan for
whose benefit this annuity contract was purchased. If the owner of this
annuity contract is the Employer or Plan trustee, then any reference in this
annuity contract to the owner's life, age, death, or spouse shall be treated
as a reference to the Annuitant's life, age, death, or spouse.
EXCLUSIVE BENEFIT. This annuity contract is for the exclusive benefit of the
Annuitant and his or her beneficiaries. No amounts held under this annuity
contract may be used for or diverted to any purpose other than the provision
of Plan benefits except as permitted by the Plan after the complete
satisfaction of all liabilities to persons covered by the Plan and their
beneficiaries. Until distributed, the Plan retains all legal ownership rights
and control over the Annuitant's interest in the annuity contract except as
provided by the Plan Administrator.
NO ASSIGNMENT OR TRANSFER. No interest in this annuity contract may be
assigned, sold, or transferred. No interest in this annuity contract may be
pledged to secure a loan or the performance of an obligation, or for any
other purpose. The only exceptions to these rules are:
1) if this annuity contract is owned by the Employer or Plan trustee, it
may be transferred to a successor Employer or Plan trustee or to the
Annuitant or another person entitled to Plan benefits through the
Annuitant;
2) this annuity contract may secure a loan to the Annuitant made under
any loan provisions of this annuity contract;
3) the Annuitant's interest in this annuity contract may be transferred
under a Qualified Domestic Relations Order as defined in IRC Section
414(p); and
4) payments may be made based on joint lives or joint life expectancies
of the Annuitant and another person, but such other person shall have
no present rights under this annuity contract during the lifetime of
the Annuitant.
Any distributions under this annuity contract shall be paid to the owner or
to the Annuitant or other person entitled to Plan benefits through the
Annuitant, as may be directed by the owner of the annuity contract.
LIMITS ON CONTRIBUTIONS. Contributions to this annuity contract which
represent contributions to the Plan must not exceed the limits set forth in
IRC Section 457(b) and (c). No elective contributions may be made by the
Annuitant with respect to any month unless the Annuitant has entered an
agreement for deferral before the first day of that month. However, an
elective contribution may be made for the first month of employment of the
Annuitant if the agreement for deferral is made on or before the date service
with the Employer begins. Additional limits may apply under the terms of the
Plan. The Plan Administrator shall ensure compliance with these IRC limits
and any Plan limits.
DISTRIBUTION RESTRICTIONS. As required under IRC Section 457(d), no
distributions from this annuity contract can be made until:
1) the calendar year in which the Annuitant reaches age 70-1/2; or
2) the Annuitant's separation from service with the Employer; or
3) the Annuitant is faced with an unforeseeable emergency as defined
under the IRC; or
4) the conditions are met for an in-service distribution under IRC
Section 457(e)(9).
Additional limits may apply under the terms of the Plan. The Plan
Administrator shall determine when a distribution is allowed under this IRC
section and the Plan.
DATE BENEFITS TO BEGIN. A distribution of the Annuitant's interest in this
annuity contract shall begin no later than 60 days after the end of the Plan
year in which the later of the following occurs:
1) the Annuitant reaches normal retirement age as determined under the
Plan; or
2) the Annuitant separates from service with the Employer.
If the Plan permits benefit payments upon separation from service to begin
before the latest date required under this provision, then prior to the date
payments actually begin the Plan may allow the Annuitant to elect irrevocably
to delay payment to a later fixed and determinable date within the limits of
this provision. The Annuitant may make only one such election after the
earliest date on which the Plan permits benefit payments upon separation from
service.
The Plan Administrator shall make any determination required under this
provision.
In no event can the payment of benefits be delayed beyond the Required
Beginning Date stated in the REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE
provision, below.
REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE. The Required Beginning Date for
distributions under this annuity contract is April 1 following the later of
the calendar year in which the Annuitant reaches age 70-1/2 or the calendar
year in which the Annuitant separates from service with the Employer. No
later than the Required Beginning Date:
1) the entire amount payable under this annuity contract must be paid in
full; or
2) distributions from this annuity contract must begin in the form of
periodic payments made at least annually (i) for the Annuitant's life
or as joint and survivor payments for the lives of the Annuitant and
one other individual, or (ii) over a period certain not to exceed the
Annuitant's life expectancy or the joint and last survivor life
expectancy of the Annuitant and one other individual entitled to
receive any amount payable after the Annuitant's death, with payments
which do not increase or increase only as provided in Q&A F-3 of
Section 1.401(a)(9)-1 of the Proposed Income Tax Regulations.
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All distributions made hereunder shall be made in accordance with the
requirements of IRC Section 401(a)(9), including the incidental death benefit
requirement of IRC Section 401(a)(9)(G), and the regulations thereunder,
including the minimum distribution incidental benefit requirements of Section
1.401(a)(9)-2 of the Proposed Income Tax Regulations and any guidance which
may be issued by the Secretary of the Treasury under IRC Section 457.
Life expectancies are computed using the expected return multiples in Tables
V and VI of Section 1.72-9 of the Income Tax Regulations. The life
expectancies of the Annuitant and his or her spouse shall be recalculated
annually unless periodic payments for a fixed period begin irrevocably
(subject to acceleration) by the Required Beginning Date. The life expectancy
of any other individual may not be recalculated. Any life expectancy which is
not being recalculated shall be determined using the attained age of the
individual in the calendar year in which the Annuitant reaches age 70-1/2 or
in any earlier year in which payments begin irrevocably, and any payment
calculations for subsequent years shall be based on such life expectancy
reduced by one for each calendar year which has elapsed since the calendar
year such life expectancy was first determined.
REQUIRED MINIMUM DISTRIBUTIONS AFTER DEATH. If the Annuitant dies after the
Required Beginning Date or after payments begin irrevocably (subject to
acceleration), any amount remaining payable under this annuity contract must
continue to be distributed at least as rapidly as under the method of
distribution being used prior to the Annuitant's death.
If the Annuitant dies before the Required Beginning Date and before payments
begin irrevocably, then any amount remaining payable under this annuity
contract must be paid either:
1) in full by December 31 of the fifth calendar year after the
Annuitant's death;
2) if someone other than the Annuitant's surviving spouse is entitled to
receive part or all of the amount remaining payable after the
Annuitant's death, over a period certain not greater than fifteen
years and not greater than the life expectancy of the eldest person
entitled to benefits, with payments beginning by December 31 of the
first calendar year after the Annuitant's death; or
3) if the Annuitant's spouse is the sole person entitled to receive the
amount remaining payable after the Annuitant's death, over the life
or over a period certain not greater than the life expectancy of the
surviving spouse, with payments beginning by December 31 of the later
of first calendar year after the Annuitant's death or the calendar
year in which the Annuitant would have attained age 70-1/2.
If the Annuitant's surviving spouse is the sole person entitled to receive
the amount remaining payable after the Annuitant's death and the surviving
spouse dies before payments begin under this provision, then this provision
shall apply upon the death of the Annuitant's spouse as if the spouse were
the Annuitant under this annuity contract.
Life expectancy is computed using the expected return multiples in Tables V
and VI of Section 1.72-9 of the Income Tax Regulations. For distributions
beginning after the Annuitant's death, the life expectancy of his or her
surviving spouse shall be recalculated annually unless periodic payments for
a fixed period begin irrevocably (subject to acceleration) by the date
payments are required to begin. The life expectancy of any other individual
may not be recalculated. Any life expectancy which is not being recalculated
shall be determined using the attained age of such individual in the calendar
year in which payments are required to begin or in any earlier year in which
payments begin irrevocably, and any payment calculations for subsequent years
shall be based on such life expectancy reduced by one for each calendar year
which has elapsed since the calendar year life expectancy was first
determined.
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This is part of the annuity contract. It is not a separate contract. It
changes the annuity contract only as and to the extent stated. In all cases
of conflict with the other terms of the annuity contract, the provisions of
this Endorsement shall control.
Signed for us at our office as of the date of issue.
/s/ Xxxxx Xxxxxxxxxx /s/ Xxxxx X. Xxxxxxxxx
ASSISTANT SECRETARY EXECUTIVE VICE PRESIDENT
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