Exhibit 4
[LINCOLN FINANCIAL GROUP(R) LOGO]
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
(the "Company")
HOME OFFICE: 0000 Xxxxx Xxxxxxx Xxxxxx
Xxxx Xxxxx, Xxxxxxx 00000-3506
0-000-000-0000
A STOCK COMPANY
GROUP ANNUITY CONTRACT
The Company agrees, subject to the terms and conditions of this Contract, to
provide the benefits described herein while this Contract is in force and to
provide any other benefits, rights and privileges specified in
this Contract.
ALLOCATED GROUP VARIABLE DEFERRED ANNUITY CONTRACT
SEPARATE ACCOUNT
NONPARTICIPATING
Signed for the Company
/s/ Xxxxxx X. Xxxxx /s/ Xxxxxxx X. Xxxxxxx, III
President Secretary
ALL VALUES PROVIDED BY THIS CONTRACT ARE VARIABLE AND MAY INCREASE, DECREASE OR
REMAIN THE SAME AND ARE NOT GUARANTEED AS TO A FIXED DOLLAR AMOUNT.
THIS CONTRACT IS NOT COVERED BY AN INSURANCE GUARANTY FUND OR OTHER SOLVENCY
PROTECTION ARRANGEMENT BECAUSE THIS CONTRACT IS A CONTRACT UNDER WHICH THE RISK
IS BORNE BY THE POLICYHOLDER.
AN-701
Lincoln Financial Group is the marketing name for Lincoln National Corporation
and its affiliates.
TABLE OF CONTENTS
ARTICLE PAGE
CONTRACT SPECIFICATIONS 3
ARTICLE 1 - DEFINITIONS 4
ARTICLE 2 - FUNDING AND WITHDRAWALS 6
ARTICLE 3 - ANNUITY BENEFITS 8
ARTICLE 4 - GUARANTEED WITHDRAWAL BENEFIT 8
ARTICLE 5 - GUARANTEED WITHDRAWAL BENEFIT ROLLOVER PRIVILEGE 13
ARTICLE 6 - CONTRACT DISCONTINUANCE 14
ARTICLE 7 - GENERAL PROVISIONS 15
ARTICLE 8 - ANNUITY PAYMENT OPTIONS AND ANNUITY PURCHASE RATES 16
ARTICLE 9 - BENEFICIARY 17
AN-701 2
CONTRACT SPECIFICATIONS
CONTRACT NUMBER: [LNC0123456789]
CONTRACT OWNER: [AYZ Company]
EFFECTIVE DATE: [October 15, 2012]
SEPARATE ACCOUNT: [Lincoln National Variable Annuity Account C]
See Article 2 for provisions governing any changes to the Separate Account
CONTRACT MINIMUMS AND MAXIMUMS:
Minimum Annuitant Age on Benefit Election Date: [55]
Maximum Age for any Measuring Life applicable to an Automatic Annual
Step-Up: [85]
Maximum Annual Deposit accepted on behalf of an Annuitant: $ [500,000]
Maximum Income Base for an Annuitant: $ [2,000,000]
TRANSFER LIMIT:
Period: [180] days
Amount: $ [25,000]
CHARGES AND EXPENSES:
Guaranteed Maximum Annual Mortality & Expense Risk and Administrative Charge
Rate: [0.65] %
Guaranteed Maximum Monthly GWB Charge Rate: [0.167] %
Initial Monthly GWB Charge Rate: [0.084] %
DEDUCTIONS:
Guaranteed Maximum Additional Annual Plan Deductions Rate: [0.20] %
MORTALITY TABLE USED TO DETERMINE GUARANTEED ANNUITY PAYMENT OPTIONS AND
PURCHASE RATES:
Annuity 2000 Individual Annuity Mortality Table Female, Projected to 2030 and
then Generation projection Scale G modified with assumed interest rate of return
of 1.00% per year.
AN-701-CS 3-A
INITIAL GAI RATE TABLE
------------------------------------------------------- ---------------------------------------------------------
GAI RATE TABLE - SINGLE MEASURING LIFE OPTION GAI RATE TABLE - JOINT MEASURING LIFE OPTION
------------------------------------------------------- ---------------------------------------------------------
AGE OF MEASURING LIFE GAI RATE AGE OF YOUNGER OR SURVIVING MEASURING GAI RATE
LIFE
------------------------------------------------------- ---------------------------------------------------------
[0 - 54] [0.0]% [0 - 54] [0.0]%
[55 - 64] [4.0]% [55- 64] [3.5]%
[65 - 70] [5.0]% [65 - 70] [4.5]%
[71 + ] [6.0]% [71 +] [5.5]%
------------------------------------------------------- ----------------------------------------------------------
AN-701-CS 3-B
ARTICLE 1 - DEFINITIONS
1.01 AGE unless otherwise stated herein, will be defined as an Annuitant's Age
as of the Annuitant's last birthday.
1.02 ANNUITANT also known as a participant under the Plan for whom a
certificate is issued. The Annuitant is a natural person used to determine
the benefits in accordance with the terms of the Contract. A certificate
may only have one Annuitant. The Annuitant may not be changed while a
certificate is in force.
1.03 ANNUITANT ACCOUNT VALUE (AAV) is the value of the Separate Account held
under the Contract on behalf of an Annuitant. We will maintain an AAV for
each Annuitant.
1.04 ANNUITY COMMENCEMENT DATE is the Valuation Date on which the AAV is
withdrawn for payment of annuity benefits under the annuity payment option
selected under Article 8.
1.05 CODE is the Internal Revenue Code of 1986, as amended.
1.06 COMPANY, WE, US, and OUR refers to The Lincoln National Life Insurance
Company.
1.07 CONTRACT OWNER means the Trustee, the Employer, the Plan Sponsor, or other
person or entity specified as such on the Contract Specifications page.
1.08 CONTRACT OWNER ACCOUNT VALUE (COAV) is the sum of all AAV(s) held under
this Contract .
1.09 CONTRACT YEAR is a twelve month period that begins on the Effective Date,
as shown on the Contract Specifications page, or on the anniversary of the
Effective Date. If in any calendar year, the anniversary of the Effective
Date is not a Valuation Date, any event set to occur on the anniversary of
the Effective Date shall occur on the next Valuation Date.
1.10 DEPOSIT(S) means the amount(s) paid into the Contract on behalf of an
Annuitant's AAV. We may require the Contract Owner to identify the source
of the Deposit(s). We may restrict Deposits subject to Article 1.21 and
Article 2.01.
1.11 FUND means any of the underlying investment options available in the
Separate Account.
1.12 GOOD ORDER means a Request or instruction that is:
(a) in a form that is satisfactory to the Company such that it is
sufficiently complete and clear that no discretion needs to be
exercised to follow such instruction, complies with all relevant laws
and regulations, and is permitted under the terms and conditions of
this Contract;
(b) on specific forms, or by other means the Company then permits (such as
via telephone or electronic transmission); and
(c) with any signatures and dates as required.
1.13 NET ASSET VALUE PER SHARE means the market value of a Fund share
calculated each day.
1.14 NOTICE, ELECTION, REQUEST is a written form in a manner We accept and
filed at Our Service Office. We retain the right to agree in advance to
accept communication regarding a specific matter by telephone or by some
other form of electronic transmission, in a manner We prescribe. We will
not be held responsible for any payment or other action We have taken
before Your communication is recorded at Our Service Office. We may
designate a third party to receive such Notice, Election or Request. To be
effective for any Valuation Date, a Notice must be received in good order
prior to the end of that Valuation Date.
AN-701 4
1.15 PLAN is any retirement Plan which is funded in part by this Contract. Each
Plan must meet the applicable requirements of the Code sections specified
by Us for the Contract Owner.
1.16 ROLLOVER CONTRACT means a group contract under which a certificate is
issued to a participant for a direct rollover of a distribution from the
Plan. Such contract is issued under an eligible retirement plan funding
vehicle.
1.17 SECONDARY LIFE is the second natural person, if any, used to determine the
benefits provided under Article 4 and Article 8. If a Guaranteed
Withdrawal Benefit is elected under the terms of Article 4, on the Benefit
Election Date any Secondary Life must be an Annuitant's Spouse. The
Secondary Life may not be changed.
1.18 SEPARATE ACCOUNT as shown on the Contract Specifications page is a
segregated investment account established by Us under the laws of Our
state of domicile that invests in a segregated portfolio of assets for
which unit values are calculated.
1.19 SPOUSE means an individual who would be recognized as a Spouse under
federal law.
1.20 SERVICE OFFICE is Our principal place of business and is the same location
as the Home Office as shown on Page 1, unless You are otherwise notified
by Us.
1.21 TRANSFER is a Deposit received from other investment options available
under the Plan within the Transfer Limit Period (as shown on the Contract
Specifications page) of any Withdrawal. We reserve the right to impose a
dollar limit on the total of any Transfer made on behalf of an Annuitant
into an AAV. Transfer does not include Deposits received as annual
additions for purposes of section 415 of the Code, or scheduled
allocations resulting from a systematic rebalancing feature of a Plan
investment option. The dollar limit is shown on the Contract Specification
page.
1.22 VALUATION DATE is the close of the market of each day that the New York
Stock Exchange is open for business.
1.23 VALUATION PERIOD is the period commencing at the close of business on a
particular Valuation Date and ending at the close of business on the next
succeeding Valuation Date.
1.24 WITHDRAWAL is any amount deducted from an AAV as requested by the Contract
Owner on behalf of an Annuitant. All Withdrawals prior to the Benefit
Election Date are considered Excess Withdrawals. The cumulative amount of
all withdrawals in a Benefit Year that exceed the GAI after the Benefit
Election Date will be considered Excess Withdrawals.
1.25 YOU OR YOUR is the Contract Owner, as shown on the Contract Specifications
page.
AN-701 5
ARTICLE 2 - FUNDING AND WITHDRAWALS
2.01 Deposits must be made by the Contract Owner on behalf of an Annuitant to
Us at Our Service Office. We have the right to decline future Deposits
into an AAV as long as we provide 180 day Notice to the Contract Owner. In
addition, We have the right to limit the amount of future Deposits subject
to the Transfer Limit of Article 1.21. The Maximum Annual Deposit accepted
on behalf of an Annuitant is shown on the Contract Specifications page.
2.02 Upon Notice, investment allocations for future Deposits made by You on
behalf of an Annuitant may be changed at any time as permitted by You. Any
change must be made in a manner acceptable by Us.
2.03 Subject to any required regulatory approvals, We reserve the right to
eliminate the shares of any Fund and substitute the securities of a
different Fund or investment company or mutual fund. Such elimination and
substitution may occur if the shares of a Fund are no longer available for
investment or, if in Our judgment, further investment in any Fund should
become inappropriate in view of the purposes of the Contract. We may close
the Separate Account to new Deposits. We may add new subaccounts in which
the assets of the Separate Account may be invested. We will give You
written Notice of the elimination and substitution of any Fund as required
by law after such substitution occurs.
2.04 We reserve the right to transfer assets of the Separate Account to another
Separate Account, and to modify the structure or operation of the Separate
Account, subject to obtaining any necessary regulatory approvals. We
guarantee that such modification will not affect any AAV.
2.05 The Separate Account is for the exclusive benefit of persons entitled to
receive benefits under variable annuity contracts. The Separate Account
will not be charged with liabilities from any other part of Our business.
Xxxxxx, gains, and losses, realized or unrealized, of the Separate Account
will be credited to or charged against the Separate Account.
2.06 We do not guarantee any Deposit into the Separate Account against
investment loss.
2.07 The Separate Account is divided into units. When an amount is deposited to
or withdrawn from the Separate Account the number of units is adjusted.
2.08 Units are used to value all amounts allocated to or withdrawn from the
Separate Account as a result of Deposits made to the Separate Account,
Withdrawals, or fees and charges taken from the Separate Account. The
number of units is determined by dividing the amount allocated to or
withdrawn from the Separate Account by the dollar value of one unit of the
Separate Account as of the Valuation Date the transaction becomes
effective. The number of units of the Separate Account will not be changed
by any change in the dollar value of units in the Separate Account.
The value of a unit was arbitrarily established at the inception of the
Separate Account. The unit value for the Separate Account for any later
Valuation Period is determined as (1) minus (2) divided by (3); where:
1. is the total value of Fund shares held in the Separate Account,
calculated by multiplying the number of Fund shares owned by the
Separate Account at the beginning of the Valuation Period by the
Net Asset Value per Share of the Fund at the end of the Valuation
Period, and adding any dividend or other distribution of the Fund
if an ex-dividend date occurs during the Valuation Period;
2. is the liabilities of the Separate Account at the end of the
Valuation Period (such liabilities include daily charges imposed on
the Separate Account and may include a charge or credit with
respect to any taxes paid or reserved for by Us that We determine
is a result of the operation of the Separate Account); and
3. is the outstanding number of units in the Separate Account at the
beginning of the Valuation Period.
AN-701 6
The unit value of the Separate Account may increase or decrease the dollar
value of benefits under the Contract. Expenses We incur will not adversely
affect the dollar value of benefits. In certain circumstances, and when
permitted by law, We may use a different standard industry method for this
calculation which will achieve substantially the same result as the method
described above.
2.09 Any Withdrawal must be allowed by the Plan and may not exceed an
Xxxxxxxxx's AAV on the Valuation Date prior to the date of the Withdrawal.
2.10 You must submit Withdrawal Requests to Us by providing Notice. We reserve
the right to require proof of the event giving rise to any Withdrawal
under this Contract.
2.11 Upon receipt of Notice of Withdrawal, We will pay the amount of any
Withdrawal within the time period as required by the Securities and
Exchange Commission, unless provisions under Section 2.12 are in effect.
2.12 We reserve the right to suspend or postpone payments for a Withdrawal or
surrender for any period when:
1. the New York Stock Exchange is closed (other than customary
weekend and holiday closings);
2. trading on the New York Stock Exchange is restricted;
3. an emergency exists as a result of which disposal of securities
held in the Separate Account is not reasonably practicable or it
is not reasonably practicable to determine the value of the
Separate Account's net assets; or
4. during any other period when the Securities and Exchange
Commission, by order, so permits for the protection of the
Contract Owner.
The applicable rules and regulations of the Securities and Exchange
Commission will govern as to whether the conditions described in (2) and
(3) exist.
2.13 The following Charges & Expenses and Deductions are as shown on the
Contract Specifications page:
a) Charges & Expenses:
1. Guaranteed Maximum Mortality & Expense Risk and Administrative
Charge Rate: We assess an annual charge on a daily basis to the
average daily AAV for each Annuitant. The charge may never exceed
the Guaranteed Maximum Annual Mortality & Expense Risk and
Administrative Charge Rate as shown on the Contract Specifications
page and will not result in a reduction to any Income Base.
2. Guaranteed Maximum Monthly GWB Charge Rate: We will deduct a charge
on a monthly basis from an Annuitant's AAV; the charge will not
result in a reduction to any Income Base. The rate, as noted on the
Contract Specifications page, is multiplied by the Income Base for
each Annuitant at the time the charge is deducted. If the deduction
for the monthly charge occurs on the Benefit Year Anniversary, the
Income Base, prior to any eligible Automatic Annual Step-up, will
be used to determine the Monthly GWB Charge.
b) Deductions:
Additional Plan Deductions may be taken pro rata from each AAV as
directed by You subject to the Guaranteed Maximum Additional Annual
Plan Deductions Rate as shown on the Contract Specifications page
and will not result in a reduction to any Income Base.
We will review the current Charges, Expenses and Deductions no more
frequently than once in any 12 month period and any change will be subject
to the Maximum Charges & Expenses and Deductions shown on the Contract
Specifications page. We will provide Notice of any change to the current
Charges & Expenses and Deductions at least 30 days prior to the effective
date of the change.
AN-701 7
2.14 At least once during each Contract Year, We will provide You with a report
of the value of the COAV.
ARTICLE 3 - ANNUITY BENEFITS
3.01 You may establish a Guaranteed Withdrawal Benefit (GWB) or an annuity
benefit for any Annuitant under the terms of Article 4 or Article 8
respectively.
3.02 We will issue an individual certificate to each Annuitant as required.
3.03 No benefit may be assigned or attached, except those benefits assigned or
attached by a Qualified Domestic Relations Order pursuant to the
Retirement Equity Act of 1984, as may be amended, or pursuant to the
Federal Tax Levy under section 6331 of the Code.
3.04 If You or We receive proof that an Annuitant, or Secondary Life, receiving
payments under this Contract is legally or mentally incompetent, the
payments may be made to any other person deemed a legal representative by
a court of competent jurisdiction; as mandated by the court or required by
regulation.
3.05 We will require satisfactory proof of the Annuitant's Age and the Age of
any Secondary Life. If it is determined that the Age has been misstated,
payments will be adjusted. Any underpayments already made will be made up
immediately and any overpayments already made will be charged against the
payments falling due after the adjustment.
3.06 We may require at any time proof that any payee under this Contract is
living when payment is contingent upon survival of such payee.
3.07 Due proof of death will be either the certificate of death, a copy of the
certified statement of death from the attending physician, a copy of a
certified decree of a court of competent jurisdiction as to the finding of
death, or any other proof satisfactory to Us.
ARTICLE 4 - GUARANTEED WITHDRAWAL BENEFIT (GWB)
This article provides that the Contract Owner may withdraw on behalf of an
Annuitant, each Benefit Year, an amount up to the Guaranteed Annual Income
("GAI"), for the lifetime(s) of the Measuring Life(s), if certain conditions are
met as described.
4.01 ADDITIONAL DEPOSIT RESTRICTION
If an Annuitant Account Value (AAV) is reduced to $0 after the Benefit
Election Date, then no additional Deposits will be accepted.
4.02 ALLOCATION RESTRICTION
While this Contract is in effect, the Separate Account available for
allocation may be limited if any Allocation Amendment is attached to this
Contract.
4.03 DEFINITIONS
BENEFIT ELECTION DATE is the date You have established with Us to begin
XXX Xxxxxxxxxxx on behalf of an Annuitant. Once a Benefit Election Date
has been established it cannot be changed. A Benefit Election Date cannot
be established prior to an Annuitant reaching the Minimum Annuitant Age on
Benefit Election Date as noted on the Contact Specifications page.
AN-701 8
BENEFIT YEAR is applicable only while the GWB Provision is in effect. It
means each 12 month period starting with the GWB Effective Date and each
12 month period thereafter. The Benefit Year Anniversary is the same day
each year as the GWB Effective Date. If in any calendar year, such
calendar day is not a Valuation Date, any event set to occur on the
Benefit Year Anniversary shall occur on the next Valuation Date.
CONFORMING WITHDRAWALS are all Withdrawals on behalf of an Annuitant after
the Benefit Election Date for which the cumulative amount withdrawn from
an AAV in that Benefit Year for an Annuitant is equal to or less than the
GAI. All other Withdrawals will be treated as Excess Withdrawals.
EXCESS WITHDRAWALS are all Withdrawals for which the cumulative amount
withdrawn from an AAV after the Benefit Election Date in that Benefit Year
exceeds the GAI. Prior to the Benefit Election Date, all Withdrawals are
Excess Withdrawals.
GWB EFFECTIVE DATE is the date of the first Deposit by the Contract Owner
into an AAV for each Annuitant.
MEASURING LIFE is a natural person used to determine the benefits under
the GWB. Measuring Life includes any Annuitant and Secondary Life.
MEASURING LIFE OPTION indicates how many natural persons are used to
determine the benefit on behalf of an Annuitant under the GWB. Under the
Single Measuring Life Option, an Annuitant is used to determine the
benefits. Under the Joint Measuring Life Option, an Annuitant and the
Secondary Life are used to determine the benefits. An Annuitant
establishes the Measuring Life Option on the Benefit Election Date and,
once established, the Measuring Life Option may not be changed.
PARTIAL YEAR ADJUSTMENT If an Annuitant's Benefit Election Date does not
coincide with an Annuitant's Benefit Year Anniversary, the first payment
of the Initial GAI will be adjusted as stipulated in Article 4.05.
REQUIRED MINIMUM DISTRIBUTION (RMD) while the GWB is in effect means
systematic monthly or quarterly installments withdrawn via the Company's
automatic withdrawal service of the amount needed to satisfy the Required
Minimum Distribution as determined by the Company and in accordance with
the IRC Section 401(a)(9), as amended from time to time. The Contract
Owner may be required to withdraw more than the GAI to satisfy RMD
requirements applicable to an Annuitant. Withdrawals taken that exceed an
Xxxxxxxxx's GAI by no more than the excess amount needed to meet an
Annuitant's RMD amount will be treated as Conforming Withdrawals provided
they are only taken in accordance with the Company's automatic withdrawal
service in the applicable calendar year. Any Withdrawals taken which
exceed an Xxxxxxxxx's GAI by more than the excess amount needed to meet an
Annuitant's RMD amount will be treated as Excess Withdrawals.
4.04 INCOME BASE
An Annuitant's Income Base is used to calculate the GAI and the GWB
charge. On the GWB Effective Date an Annuitant's Income Base is equal to
the AAV.
MAXIMUM INCOME BASE
The guaranteed amounts of the combined Income Bases for all Company
annuity contracts, including individual contracts or group annuity
certificates with an affiliated company, for which the Annuitant and
Secondary Life, if applicable, is a Measuring Life, is subject to the
Maximum Income Base noted on the Contract Specifications page.
AN-701 9
ADJUSTMENT TO THE INCOME BASE FOR ADDITIONAL DEPOSITS
If an additional Deposit is accepted, an Annuitant's Income Base will be
increased to equal the additional Deposit plus an Annuitant's Income Base
immediately prior to receipt of the additional Deposit.
ADJUSTMENT TO THE INCOME BASE FOR WITHDRAWALS
Upon each Excess Withdrawal, an Annuitant's Income Base will be reduced in
the same proportion that the Excess Withdrawal reduced the AAV. Upon each
Conforming Withdrawal an Annuitant's Income Base will not be reduced.
AUTOMATIC ANNUAL STEP-UP OF THE INCOME BASE
Following an Annuitant's GWB Effective Date, an Automatic Annual Step-Up
of an Annuitant's Income Base to equal the AAV may only occur on the
Valuation Date immediately prior to the Benefit Year Anniversary, if the
following condition(s) is/are satisfied:
1. the Age of the Measuring Life or Lives as of the Valuation Date, is
less than the Maximum Age for any Measuring Life applicable to an
Automatic Annual Step-Up calculation, as noted on the Contract
Specifications page; and
2. the AAV as of that Valuation Date is greater than the Income Base.
The Automatic Annual Step-Up will occur after the addition of any Deposits
made on behalf of an Annuitant and the deduction of any Withdrawal on
behalf of that Annuitant.
If the Company creates a new GAI Rate Table for new Deposits, the
calculations and provisions contained in the preceding paragraphs of
Section 4.04 (with the exception of the Maximum Income Base paragraph)
shall apply separately to each GAI Rate Table available to this Contract.
As a result, a portion of the total Income Base will be aligned with each
GAI Rate Table as described in the Weighted Average GAI Rate (WAGAI Rate)
provision described below.
4.05 GUARANTEED ANNUAL INCOME (GAI) AMOUNT FOR AN ANNUITANT
The GAI is an amount that may be withdrawn by the Contract Owner on behalf
of an Annuitant each Benefit Year as a Conforming Withdrawal. On the later
of (a) the Annuitant's Benefit Election Date, or (b) the first Valuation
Date the Annuitant's GAI Rate is above 0%, the initial GAI Rate is set.
The initial GAI is equal to the Income Base times the GAI Rate. As long as
the GAI is not reduced to $0, then the GAI may be withdrawn during the
lifetime of any Measuring Life.
The amount of the first payment of the initial GAI, if a Partial Year
Adjustment is included, is equal to the initial GAI times the Partial Year
Adjustment. The Partial Year Adjustment is equal to (a) divided by (b);
where:
a) is equal to the number of days between the Benefit Election Date and
the Benefit Year Anniversary immediately following the Benefit Election
Date; and
b) is the total number of days in one Benefit Year.
If the Measuring Life Option is Joint, the GAI Rate will be set and reset
based upon the Age of the younger or surviving Measuring Life.
The GAI Rate is the rate used to determine the GAI. The GAI Rate may vary
according to the Measuring Life Option chosen, the date when Deposits were
made on the Annuitant's behalf into their AAV, the Age of the Measuring
Life on the date the GAI Rate is determined and the GAI Rate(s) and the
GAI Rate Table(s) in effect for this Contract. We may change the GAI Rate
Table for future Deposits. We will give You Notice of any change to the
GAI Rate Table if the rates are changed. If the GAI Rates are changed, the
GAI Rate applicable to an Annuitant's GAI on the Benefit Election Date
will be a Weighted Average GAI Rate explained below.
AN-701 10
WEIGHTED AVERAGE GAI RATE (WAGAI RATE)
If We do make a change to the GAI Rate(s) and the GAI Rate Table(s) while
Deposits are made into an AAV on behalf of an Annuitant prior to or after
the date the initial GAI is set, then a Weighted Average GAI Rate (WAGAI
Rate) will be calculated using the GAI Rate in effect at the time of each
Deposit based on the Age of the Measuring Life and the Measuring Life
Option Chosen.
The WAGAI Rate will be determined as the sum of the GAI Rates for each GAI
Rate Table for the Age of the Measuring Life and the Measuring Life Option
chosen, where the GAI Rate for each GAI Rate Table is determined as ((a)
divided by (b)) times (c); where
(a) is the portion of the Income Base calculated on the basis of
Deposits made, Step-Ups and Withdrawals on behalf of the Annuitant
during the time the GAI Rate Table is in effect;
(b) is the total Income Base;
(c) is the GAI Rate for the Age of the Measuring Life and the Measuring
Life Option chosen on the Benefit Election Date for that GAI Rate
Table.
If any portion of an AAV is withdrawn, due to either a Conforming
Withdrawal or Excess Withdrawal, the Withdrawal will be taken pro rata
from the AAV allocated to each GAI Rate Table available under this
Contract during the time the AAV had a value greater than zero ($0).
On the Valuation Date following the date of an additional Deposit, Excess
Withdrawal or an Automatic Annual Step-up, the WAGAI Rate will be
recalculated.
CHANGES TO GAI FOR AGE BASED INCREASES
After the Benefit Election Date, if a GAI Rate Table provides an age based
increase to the GAI Rate an Automatic Annual Step-Up must occur before the
GAI or WAGAI Rate is reset to reflect the higher rate used to calculate
the GAI. The GAI or WAGAI Rate will be recalculated on the Valuation Date
on which an Automatic Annual Step-Up occurred following the Annuitant's
birthday.
AAV REDUCES TO $0
Even if the AAV declines to $0 after the Benefit Election Date, as long as
the GAI is greater than $0, the GAI will continue for the lifetime(s) of
the Measuring Life(s) applicable to an Annuitant's benefit. The Contract
Owner may elect to receive the GAI on behalf of an Annuitant at any
frequency We offer, subject to minimum payment amount rules then in
effect, but no less frequently than annually. If the AAV is $0 and an
Annuitant's GWB terminates due to the death of the Measuring Life(s)
applicable to an Annuitant's benefit, no further amounts will be paid on
behalf of that Annuitant.
AN-701 11
4.06 EFFECT OF DEATH PRIOR TO THE ANNUITY COMMENCEMENT DATE
Death of the Annuitant or surviving Measuring Life will result in the
death benefit paid to the Annuitant's beneficiary upon request by the
Contract Owner and approval by the Company, and after We receive:
(a) satisfactory proof of death of the Measuring Life, as set forth
in Section 3.07;
(b) written authorization for payment; and
(c) all required claims forms, fully completed.
Payment of a death benefit will terminate any GWB payable and all other
benefits under this Contract. All death benefit payments will be subject
to the laws and regulations governing death benefits.
Notwithstanding any provision of this Contract to the contrary, no payment
of a death benefit will be allowed that does not satisfy the requirements
of Section 401(a)(9) of the Code. All such requirements are herein
incorporated by reference.
The death benefit payable on the death of the Annuitant will be
distributed to the designated beneficiary(s) as follows:
(a) the death benefit must be completely distributed within 5 years of
the Annuitant's date of death; or
(b) an election may be made within 12 month period after the
Annuitant's date of death for the designated beneficiary, to
receive the death benefit in substantially equal installments over
the life of such designated beneficiary or over a period not
extending beyond the life expectancy of such designated
beneficiary; provided that such distributions begin not later than
1 year after the Annuitant's date of death.
If the designated beneficiary is the surviving spouse of the Annuitant,
the spouse may elect to continue to participate in this contract, rather
than receive a death benefit.
If a lump sum settlement is elected, the proceeds will be mailed within
the time period required by the Securities and Exchange Commission
following approval by Us of the claim. This payment may be postponed as
permitted by the Investment Company Act of 1940, as amended.
DEATH BENEFIT PAYABLE
Upon the death of an Annuitant, prior to the Benefit Election Date or if
the Measuring Life Option is Single, an Annuitant's GWB will terminate and
the death benefit will be paid as described above. Upon the first death of
a Measuring Life if the Measuring Life Option is Joint, the GAI will
continue for the life of the surviving Measuring Life unless a death
benefit is paid as described. Upon the death of a surviving Measuring
Life, the GWB will terminate and the death benefit will be paid as
described.
A. DEATH BENEFIT PRIOR TO THE BENEFIT ELECTION DATE
Prior to the Benefit Election Date, the death benefit will be equal to
the AAV on the first Valuation Date after the death benefit is approved
by the Company for payment.
B. DEATH BENEFIT ON OR AFTER THE BENEFIT ELECTION
DATE
On or after the Benefit Election Date, the death benefit paid as a
Final Payment may be a lump sum or under a settlement option then
available.
The amount of the Final Payment paid will be equal to the AAV on the
first Valuation Date after the death benefit is approved by the Company
for payment.
AN-701 12
4.07 GENERAL
QUALIFIED DOMESTIC RELATIONS ORDER (QDRO)
If a QDRO is issued and received from the Contract Owner on behalf of any
Annuitant in Good Order, there will be a pro rata reduction in the AAV of
the Annuitant in accordance with the Contract Owner's instructions. A
withdrawal from an AAV pursuant to a QDRO will be considered an Excess
Withdrawal.
If a QDRO is issued prior to the Annuitant's Benefit Election Date, the
GWB will not be available to the alternate payee. The reduction in the AAV
will be available to the Alternate Payee as a deposit to an individual
annuity contract that We make available.
If the QDRO is issued on or after the Annuitant's Benefit Election Date, a
new AAV will be created for the alternate payee. The alternate payee will
be entitled to the same rights and benefits as the Annuitant under this
Contract if the Joint Measuring Life Option was elected and the alternate
payee was identified as a Measuring Life.
TERMINATION OF THE GWB
The entire GWB payable on behalf of any Annuitant will irrevocably
terminate if this Contract terminates. See Article 5 below for the
rollover options available to an Annuitant should this Contract terminate.
An Annuitant's GWB will also terminate upon:
1. the date both the Income Base and GAI equal $0;
2. the death of the Annuitant or Surviving Measuring Life as described in
4.06 above; or
3. the death of the Annuitant prior to the Benefit Election Date.
Upon termination of the GWB, all benefits and charges associated with an
Annuitant's benefit will terminate.
ARTICLE 5 - GUARANTEED WITHDRAWAL BENEFIT ROLLOVER PRIVILEGE
5.01 Subject to the provisions of the Plan, an Annuitant may Request a rollover
to a contract made available by the Company, subject to the following
terms and conditions:
(a) A Request for direct rollover of the entire AAV is made or
authorized by the Contract Owner.
(b) The amount to be rolled over is eligible for distribution under the
Plan.
(c) The Annuitant, whose AAV is to be rolled over applies for
participation in the Rollover Contract in accordance with the
Company's procedures then in effect.
(d) The effective date of the rollover is the Valuation Date next
following the date on which the Company receives a Request in Good
Order for a rollover.
AN-701 13
5.02 The AAV on the effective date of the rollover will be transferred to the
Rollover Contract.
If the rollover occurs after the Benefit Election Date, the Rollover
Contract will provide a GWB with a GAI amount calculated in the same
manner as the GAI amount in effect on the day of the rollover, but
otherwise may have different terms and conditions than this Contract.
ARTICLE 6 - CONTRACT DISCONTINUANCE
6.01 You may discontinue this Contract at any time by giving Us Notice. The
discontinuance date will be no more than 180 days from the date We receive
Notice. If You Request a discontinuance date that is more than 180 days
after We receive Notice, such Request will require Our approval.
6.02 We may give You written Notice that this Contract is to be discontinued
if:
a. any Plan ceases to meet the requirements of the Code sections
specified by Us for purchasers of this Contract and You do not
correct this within 30 days; or
b. You fail to furnish requested information or other documentation; or
c. We discover any misrepresentation of material information; or
d. the Contract Owner is a trust and a valid trust no longer exists.
The Notice will specify a discontinuance date at least 30 days from the
date of the Notice.
6.03 After the notification of discontinuance as referenced in section 6.01 or
6.02, additional Deposits by an Annuitant to an AAV and Withdrawal
Requests for any Annuitant from an AAV will be accepted by Us until the
discontinuance date.
6.04 As of the discontinuance date, We will deduct any outstanding charges.
6.05 The balance of the Contract as of the discontinuance date, reduced by any
charges outlined in this Contract, will be paid in a lump sum. If,
subsequent to such lump sum payment, We are ordered by any court of
competent jurisdiction to refund all or any portion of a loss to any
Annuitant, You will reimburse Us for such amounts.
6.06 All payments will be made to a Plan trustee or as directed by You. We will
rely on Your Notice to transfer assets to a specified party. We do not
need to verify that such specified party has the right to receive any
payments.
6.07 This Contract will terminate on the date the last payment is made under
the provisions of Article 4 and Article 8.
6.08 Upon termination of this Contract, all liability of the Company under this
Contract terminates and the Company will pay the Account Value to the Plan
or provide a Rollover Contract as described in Article 5.
AN-701 14
ARTICLE 7 - GENERAL PROVISIONS
7.01 This Contract may be used to fund all or part of a Plan's obligations. The
provisions of a Plan control the operation of the Plan and the provisions
of this Contract control the operation of this Contract. We are not a
party to any Plan. Plan is mentioned merely for reference purposes. This
Contract must be held by the Contract Owner for the exclusive benefit of
the Annuitants and their beneficiaries.
7.02 You and We are parties to this Contract. However, when a certificate is
issued to an Annuitant We will thereafter be responsible for providing the
benefits provided by said certificate.
7.03 Except as allowed by a Plan or applicable law, this Contract may not be
transferred, sold, assigned, discounted or pledged, either as collateral
for a loan or as security for the performance of an obligation or for any
other purpose.
7.04 We may amend this Contract to maintain this Contract under applicable
local, state, or federal laws or regulations, such as the Internal Revenue
Code, Internal Revenue Service regulations, or published revenue rulings.
7.05 You and We may also mutually agree to amend this Contract. The consent of
any Annuitant or beneficiary is not required. No amendment will adversely
affect the terms of any certificate that has already been issued to an
Annuitant.
7.06 Any change to this Contract must be in writing and signed by an authorized
Officer of Ours. We will give written Notice of any change at least 60
days prior to its effective date.
7.07 This Contract is subject to the incontestability laws of the state in
which it is delivered.
7.08 This document, any amendments, endorsements and riders, together with any
application signed by You constitutes the entire Contract between You and
Us.
7.09 We are not liable to provide sufficient assets to provide a Plan's
benefits.
7.10 No suit may be brought in relationship to this Contract unless it is
brought within three years after the date on which this suit could have
first been brought. If this limitation is prohibited by the laws of the
state by which this Contract is governed, this limitation shall be deemed
to be amended to agree with the minimum period of limitation permitted by
those laws.
7.11 Any Notice required by this Contract must be delivered to Us at Our
Service Office. Any Notice to You will be delivered at the address shown
on Our records.
7.12 We are not a trustee for assets held in this Contract.
7.13 We reserve the right to recover assets previously deposited into the
Contract due to an error (including any gain and less any loss while such
assets were invested in the Contract) and agree to credit the Contract any
amount not previously deposited into the Contract due to an error
(including any gain and less any loss while such assets were not invested
in the Contract) to reflect the correct account balance as though the
error had not occurred. We reserve the right to utilize legal remedies to
pursue losses incurred as a result of an error.
AN-701 15
7.14 We do not guarantee that Our telephone and/or electronic devices will
always be available for You to submit transactions to Us for processing.
If You are experiencing problems, You should make Your transaction Request
in writing to Our Service Office.
7.15 Our failure to perform or insist upon the strict performance of any
provision or condition of the Contract will not:
1. constitute a waiver of Our rights to perform or require
performance of such provision or condition; or
2. stop Us from exercising any other rights We may have in such
provision, condition, or otherwise in this Contract.
7.16 If any provision of this Contract is determined to be invalid, the
remainder of the provisions shall remain in full force and effect.
7.17 Any questions concerning this Contract should be directed to Us at Our
Service Office.
7.18 We reserve the right to implement and administer redemption fees and
trading restrictions imposed by an investment manager of the fund or an
underlying investment of the fund.
ARTICLE 8 - ANNUITY PAYMENT OPTIONS AND ANNUITY PURCHASE RATES
8.01 AGE for the purposes of calculating benefits payable under this Article
will be defined as the Age of the Annuitant on the Annuitant's nearest
birthday.
8.02 All annuity benefits are guaranteed annuities payable in fixed dollar
amounts. The amount needed to establish the annuity benefit will be
withdrawn from the AAV on the Annuity Commencement Date as directed by
You. The AAV will then be terminated. Such annuity benefit will be
established using the rates in Attachment A. These annuity payment options
are available:
a. Life Annuity Only - Monthly payments will be made only during the
life of the Annuitant.
b. Life Annuity, Guaranteed Period - Monthly payments will be made
during the life of the Annuitant. In the event of an Annuitant's
death prior to the period shown in the attached table, as selected,
payments will continue to the beneficiary for the remainder of that
period.
c. Joint and Survivor Annuity - Monthly payments will be made during the
life of an Annuitant with a survivor annuity for the life of a
Secondary Life. Upon the death of the Annuitant, one-half,
two-thirds, or the full amount of the annuity payments will continue
to the Secondary Life if living, and will terminate upon the death of
such Secondary Life. We may require satisfactory proof of Xxxxxxxxx's
and Secondary Life's death.
d. Any other option to which We agree.
The form of annuity may not be changed after the Annuity Commencement
Date.
8.03 The annuity payment options tables, as found in Attachment A, illustrate
the annuity amounts and the Age adjustments which will be used to
determine the monthly annuity payment option. The tables show the dollar
amount of the guaranteed monthly annuity payout which can be established
with each $1,000.
AN-701 16
8.04 The minimum monthly annuity payment available is $100. We reserve the
right to change the frequency of the annuity payments from twelve times a
year to four times a year, two times a year, or once a year so that the
payments will be at least $100 each.
8.05 We will issue to each Annuitant a certificate or supplemental contract
which sets forth the amount and terms of the annuity benefit.
ARTICLE 9 - BENEFICIARY
9.01 The Annuitant may name a beneficiary at the time the annuity is
established. If a married Xxxxxxxxx does not name a beneficiary, the
Annuitant's Spouse will be treated as the named beneficiary under this
Contract.
The Annuitant may change the beneficiary at any time without the consent
of a previous beneficiary unless the previous designation provides
otherwise. However, if the Annuitant is married, the Annuitant's Spouse
must agree in writing to another person being named beneficiary. The
change will be effective upon receipt of the Notice. A beneficiary may not
name a beneficiary after the death of an Annuitant.
9.02 If an Annuitant dies on or after the Annuity Commencement Date, the
remaining portion of the Annuitant's interest will continue to be
distributed under the annuity payment option chosen.
If an Xxxxxxxxx dies and there is no named beneficiary living at the time
of the Annuitant's death, the Contract Owner will pay an Annuitant's
estate on the Annuitant's behalf any guaranteed payments due in one lump
sum.
If a named beneficiary is receiving guaranteed payments and dies, the
Contract Owner on behalf of an Annuitant will provide the remaining
payments to an Annuitant's contingent beneficiary if living. Otherwise the
Contract Owner will provide payments on behalf of an Annuitant to the
beneficiary's estate.
Unless otherwise provided in the beneficiary designation, if any
beneficiary dies before an Annuitant, that beneficiary's interest will
pass to any other beneficiaries according to their respective interest.
AN-701 17
ATTACHMENT A
SINGLE LIFE ANNUITY TABLE
PERIOD CERTAIN
DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
Annuitant Age None 10 Years 20 Years
55 $2.62 $2.61 $2.58
56 2.68 2.67 2.64
57 2.74 2.73 2.70
58 2.81 2.80 2.76
59 2.88 2.87 2.82
60 2.96 2.94 2.89
61 3.04 3.02 2.95
62 3.12 3.10 3.02
63 3.21 3.19 3.10
64 3.31 3.28 3.17
65 3.41 3.38 3.25
66 3.52 3.48 3.33
67 3.63 3.59 3.41
68 3.75 3.71 3.50
69 3.89 3.83 3.58
70 4.03 3.96 3.67
Annuity Mortality table as referenced on the Contract Specifications page.
Annuity purchase rates for any Age(s) not shown, determined on the same basis,
will be furnished by Us upon Request.
AN-701 18
JOINT AND SURVIVOR ANNUITY TABLE
DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
* Younger Measuring 100% 66.2/3% 50%
Life's Age Joint & Survivor Joint & Survivor Joint & Survivor
55 $2.32 $2.36 $2.46
56 2.37 2.41 2.52
57 2.42 2.47 2.58
58 2.47 2.52 2.64
59 2.52 2.59 2.71
60 2.58 2.65 2.78
61 2.64 2.72 2.85
62 2.70 2.79 2.93
63 2.76 2.86 3.02
64 2.83 2.94 3.11
65 2.91 3.03 3.20
66 2.99 3.12 3.30
67 3.07 3.22 3.41
68 3.16 3.32 3.53
69 3.26 3.43 3.65
70 3.36 3.55 3.79
*The Younger Measuring Life's Age is assumed to be the same as the Annuitant's
Age.
Annuity purchase rates for any Age(s) not shown, determined on the same basis,
will be furnished by Us upon Request.
Annuity purchase rates for any agreed upon annuity form not shown in this
Article 9 will be determined on the same basis and furnished by Us upon Request.
AN-701 19
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AN-701 20
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
(the "Company")
HOME OFFICE: 0000 Xxxxx Xxxxxxx Xxxxxx
Xxxx Xxxxx, Xxxxxxx 00000-3506
0-000-000-0000
A STOCK COMPANY
If You have any questions concerning
this Contract, please
contact your Lincoln National Life Insurance Company
representative or the Home Office.
GROUP ANNUITY CONTRACT
ALLOCATED GROUP VARIABLE DEFERRED ANNUITY CONTRACT
SEPARATE ACCOUNT
NONPARTICIPATING
AN-701
